Table of Contents
Issues in the Market
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- Issues in the market
- Definitions
Insights and Opportunities
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- Fortification – a way ahead?
- Confused customers
- Small packs for singles
- Neglect of men
Market in Brief
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- Market growth is floundering
- Health debate rages
- Growing competition for a slice of the market
- Added value adds margin
- Innovation for the future
Fast Forward Trends
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- Trend 1: Food Goes Slow
- What it is
- Market touchpoints/implications
- Trend 2: The Nomadic Explorer
- What it is
- Market touchpoints/implications
Internal Market Environment
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- Key Points
- Health concerns growing
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- Figure 1: Agreement with selected lifestyle statements, 2002-06
- Media labels cheese “unhealthy”
- Fortification
- Production values grow in popularity
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- Figure 2: Agreement with selected lifestyle statements, 2002-06
- Provenance is being developed as a major point of difference…
- … and consumers are getting more interested
- Organic cheeses are growing
- Environmental concerns growing
- Convenience and cooking at home
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- Figure 3: Agreement with selected lifestyle statements, 2002-06
- Desire to experiment grows
- TV makes chefs of us all
- Education
- Meal occasions
- Key Points
- Bread
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- Figure 4: Consumption of bread in the last 12 months, 2002-06
- Heavy bread users are heavy cheese users
- Opportunities for imaginative sandwiches
- Savoury biscuits
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- Figure 5: Consumption of savoury biscuits in the last 12 months, 2002-06
- Consumers getting bored of the board
- Salads are on the rise
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- Figure 6: Expenditure on pre-packed salads in the last week, 2004-06
- Packed lunches
- Adult snacking
Broader Market Environment
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- Key Points
- ABs influence set to increase
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- Figure 7: changes in socio-economic status, 2002-12
- ABC1s continue to increase over next 5 years
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- Figure 8: Changes in the UK demographic profile, by age, 2002-12
- Ageing population values calcium
- Other factors
- Traffic light labelling – nutritional value of cheese ignored
- OFCOM Ban on advertising to children
- EU protects origins
Competitive Context
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- Key Points
- Salads
- Fruits
- Sandwich fillings
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key Points
- A market worthy of investment
- Sentiment and tradition – artisan cheese
- EU ruling about origin (provenance)
- Addition of fruits and flavours
- Convenience
- Health
- Nutrient enrichments
- Snacks proliferate
- The future – fortification
Market Value and Forecast
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- Key Points
- Mature, slowing market
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- Figure 9: UK retail sales of cheese, by volume and value, 2002-07
- Volume weakens…
- ...but prices rise in 2007
- Downward pressure on price
- Continentals lose out to Territorials/Regional cheeses
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- Figure 10: UK retail sales of cheese, by value, 2002-06
- Educate the customer: “Cheddar plus one”
- The Forecast and Future
- Market Themes
- Promote new habits
- Convenience
- Health
- Demographic shift
- Provenance and organics
- Spreading growth
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- Figure 11: Forecast of the UK cheese market by value, by sector, 2002-12
- Mixed sector fortunes
- Factors used in the forecast
- Cheddar cheese
- Key points
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- Figure 12: UK retail sales of Cheddar, by value, 2002-07
- Growth slows due to heavy discounting
- Cheddar mix
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- Figure 13: UK retail sales of Cheddar (incl extra mature, vintage and blue), by type, 2002-06
- Strong flavours court strong sales
- Advertising keeps brands visible
- Could mild be the next big cheese?
- Flavoured – an emerging niche
- Added value – convenience
- Continental cheeses
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- Figure 14: UK retail sales of Continental cheeses (incl blues & excl Cheddar), by value, 2002-07
- Melting away
- Value is declining…
- …but volume is rising
- The speciality market of today – artisan cheese
- New-style Deli counters affect sales adversely
- Branding simplifies consumer choice
- Provenance
- Territorial (regional) cheese
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- Figure 15: UK retail sales of territorial cheeses by value, 2002-07
- Flavours drive sales upwards
- Provenance (origin) proves a powerful marketing tool
- Stilton and Christmas association remains a barrier
- Processed cheese
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- Figure 16: UK retail sales of processed cheese (incl minis and spreads), by value, 2002-07
- Sales decline as consumers opt for “healthier” options
- Natural soft cheese
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- Figure 17: UK retail sales of natural soft cheese (incl spreads), by value, 2002-07
Market Themes across the Five Sectors
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- Snacks and snacking
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- Figure 18: Snacks transcend the 5 sectors – predominantly Cheddars, soft cheese, and processed, 2002-06
- Children drive snacks market
- Adults’ snacks grow too
- Healthy cheese
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- Figure 19: UK retail sales of healthy cheese, by value, 2002-06
- The FSA’s traffic light system raises health and diet awareness
- The market responds with healthy options
- Nutritional value is powerful marketing opportunity
- Fortification (added nutrients) has potential
- Organic has its role
- Convenience
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- Figure 20: UK retail sales of convenience cheese, by value, 2002-06
- Blue Cheeses – love it or hate it
- The speciality market – niche by nature
Market Share
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- Key Points
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- Figure 21: Brand shares in the UK cheese market, by value, 2004 and 2006
- Own label loses to brands
- Big players have biggest share
- Kraft gains with reduced fat products
- Bel promotes health and convenience
Companies and Products
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- Key Points
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- Figure 22: Brand map of the cheese market, 2007
- Arla Foods UK plc
- Avilton Foods (Ltd)
- ULN
- Bel UK Ltd
- Castelli UK
- Dairy Crest Group plc
- Dale Farm Limited
- Eurilait
- Fayrefield Foods Ltd
- Ilchester Cheese Co Ltd
- Kavli Ltd
- The Kerrygold Company Ltd
- Kerry Foods Ltd
- Kraft Foods UK Ltd
- Lactalis Mclelland (UK) Ltd
- North Downs Dairy Company Ltd
- Triballat
- Unilever Bestfoods UK Ltd
- Wyke Farms Ltd
- Trade associations
- British Cheese Board and the FSA
- Fine Cheeses from France
Brand Elements
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- Figure 23: Usage and attitudes towards cheese brands, June 2007
- Cathedral City
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- Figure 24: Words associated with the Cathedral City brand, June 2007
- Brand qualities
- Take a walk on the mild side
- Babybel
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- Figure 25: Words associated with the Baby Bel brand, June 2007
- Brand qualities
- Ba, ba, ba Babybel worth chasing after?
- Boursin
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- Figure 26: Words associated with the Boursin brand, June 2007
- Brand qualities
- Great beginning, but what next…?
- Philadelphia
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- Figure 27: Words associated with the Philadelphia brand, June 2007
- Brand qualities
- Philadelphia, a little taste of heaven
- Weight Watchers Cheese
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- Figure 28: Words associated with Weight Watchers brand, June 2007
- Brand qualities
- Don’t fight your craving for Weight Watchers!
- Brand qualities
- Babybel, Laughing Cow and Dairylea are family fun.
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- Figure 29: Word associated with cheese brands, June 2007
- Usage of brands
- Cathedral City and Philadelphia lead the way
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- Figure 30: Consumer usage of various cheese brands, June 2007
- Attitudes towards brands
- Cathedral City most trusted, Weight Watchers least trusted
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- Figure 31: Attitudes towards cheese brands, June 2007
- Brand satisfaction and performance
- Excellence goes to Cathedral City, Boursin and Philadelphia
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- Figure 32: Customer rating of cheese brands, June 2007
- Brand commitment – goes to Cathedral City
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- Figure 33: Degree of customer commitment to cheese brands, June 2007
- Round up
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Brand Communication and Promotion
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- Key Points
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- Figure 34: Main monitored media spend, 2003-06
- Advertising at its peak
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- Figure 35: Main monitored media spend, by month, April 2005-March 2007
- Advertising is not seasonally sensitive
- Who’s spending what?
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- Figure 36: Main monitored media spend, by company, 2003-06
- Kraft looking to maintain market leadership
- Bel leads on convenient processed
- Driven by impending legislation
Channels to Market
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- Key Points
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- Figure 37: UK retail sales of cheese, by outlet type, 2002-06
- Supermarkets dominate and Tesco leads
- Specialist outlets for specialist cheese
- New format deli counters lose sales
- Not giving the customer what they want
- Supermarkets may re-think strategy
Consumer 1 – Who – Usage and Frequency
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- Key Points
- Consumption is variable
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- Figure 38: Consumption of cheese in blocks in the last 12 months, 2002-06
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- Figure 39: Consumption of packeted cheese, cheese spread and speciality cheeses in the last 12 months, 2002-06
- A tale of two sectors
- More people eating cheese in blocks
- Versatility is key for cheese
- Gender divide
- Consumption is lower in London
- Polarisation of under 35s
- “Chav” cheese
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- Figure 40: Propensity to eat packeted cheese, cheese spread and speciality cheese, by age, socio-economic status, and household size, 2006
Market Segmentation
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- Cheese in blocks
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- Figure 41: Consumption of cheese in blocks – varieties eaten, 2002-06
- Type of cheese eaten – packeted cheese, cheese spread and speciality cheeses by types
- Soft Cheese Jewel in the Crown
- Products with a processed element
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- Figure 42: Consumption of packeted cheese, cheese spread and speciality cheeses by types, 2002-06
- Children’s eating habits
- Childhood obesity
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- Figure 43: Consumption of cheese, youths aged 7-10, 2002-06
- Mums encourage healthy cheese snacks with 7-10-year-olds
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- Figure 44: Consumption of cheese, youths aged 11-14, 2002-06
- More snacks and nibbles please, say 11-14-year-olds
Consumer 2 – When – Usage Occasions?
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- Key Points
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- Figure 45: Ways in which consumers eat or serve cheese, April 2007
- Repertoire analysis
- Women are the key targets
- ABC1 retirees have limited repertoire
- Men less adventurous than women
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- Figure 46: Propensity to eat/serve cheese, in six or more different ways, by gender, by age and socio-economic status, February 2007
- The most popular uses for cheese are declining
- Can’t cook/won’t cook
- Older have traditional habits, but not tastes
- Is cheese with breakfast a step too far?
Consumer 3 – Attitudes to Cheese
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- Key Points
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- Figure 47: Attitudes to cheese, April 2007
- Old consumers have old habits
- ABC1s drive sales of speciality cheeses
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- Figure 48: Agreement with selected statements on cheese by socio-economic status, April 2007
- 55-64 ABC1 consumers are the most health aware
- Calcium and the older consumer
The Consumer 4 – Further Analysis
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- Key Points
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- Figure 49: Repertoire of cheese uses Q2 attitudes/behaviour towards cheese, April 2007
- Conservatism v adventurism
- Recognition of nutritional value
- Opportunities for retailers
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- Figure 50: Usage occasions by supermarket shopped at, April 2007
- Sandwiches need more imagination
- Attitudes to cheeses by supermarket shopped at
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- Figure 51: Attitudes to cheese by supermarket shopped at, April 2007
- The sophisticated consumer avoids reliance on supermarkets
Appendix
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- Consumer research
- ACORN
- Advertising data
- Abbreviations
- Internal Market Environment
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- Figure 52: Consumption of cheese in blocks in the last 12 months, by consumption of bread and savoury biscuits, 2006
- Figure 53: Consumption of packeted cheese, cheese spread and speciality cheeses in the last 12 months, by consumption of bread and savoury biscuits, 2006
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- Figure 54: Agreement with selected lifestyle statements, by demographic sub-group, 2006
- Figure 55: Agreement with selected lifestyle statements, by demographic sub-group, 2006
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- Figure 56: Agreement with selected lifestyle statements, by demographic sub-group, 2006
- Figure 57: Agreement with selected lifestyle statements, by demographic sub-group, 2006
- Brand communication and promotion
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- Figure 58: Main monitored media spend, 2003-06
- Consumer 1 – Consumption
- Cheese in blocks
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- Figure 59: Agreement with selected lifestyle statements, by demographic sub-group, 2006
- Figure 60: Consumption of cheese in blocks in the last 12 months, by demographic sub-group, 2006
- Packeted cheese, cheese spread and speciality cheeses
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- Figure 61: Consumption of packeted cheese, cheese spread and speciality cheeses in the last 12 months, by demographic sub-group, 2006
- Consumer 2 – Detailed Demographics
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- Figure 62: Occasions at which consumers eat cheese, April 2007
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- Figure 64: Occasions at which consumers eat cheese, April 2007
- The Consumer 4 – Repertoire analysis
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- Figure 65: Repertoire of cheese uses by demographics, April 2007
- Consumer 3 – Detailed Demographics
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- Figure 67: Attitudes to cheese, by detailed demograpihics, April 2007
- Figure 68: Attitudes to cheese, by detailed demographics, April 2007
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