Cooking Sauces, Pasta Sauces and Stocks - UK - November 2011

INTRODUCTION
Definition
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Cooking sauces, pasta sauces and stocks market size and forecast, 2006-16
2011 sees the market slowing
The future
Market factors
Penetration remains high
A growing need to engage the ageing population
Fragile consumer confidence to dampen demand for discretionary goods
Companies, brands and innovation
Figure 2: Estimated leading brands’ shares in the cooking sauces and pasta sauces market, 2010
Mars continues to dominate the market
NPD continues to drive the market
Mars ramps up ad investment
The consumer
High penetration in the cooking/pasta sauces market
Figure 3: Types of cooking/pasta sauces eaten, August 2011
Stocks’ core users are similar to sauces
Figure 4: Usage of stocks/bouillons*, August 2011
Promotional activity offers an incentive to consumers of cooking/pasta sauces...
Figure 5: Agreement with statements on using cooking/pasta sauces, August 2011
...stock users rate the ability to enhance the flavour of food
Figure 6: Agreement with statements on using stocks/bouillons, August 2011
What we think
ISSUES IN THE MARKET
How can manufacturers, brands and retailers encourage more experimentation within the cooking/pasta sauces and stocks market?
How can cooking and pasta sauce brands drive growth in the premium segment?
How can sauces and stocks brands exploit the interest in scratch cooking?
What types of cuisines are proving popular in the market?
How can the market attract older consumers?
FUTURE OPPORTUNITIES
Power of One
Guiding Choice
INTERNAL MARKET ENVIRONMENT
Key points
Growth in popularity of pasta sauces outpaces the market
Figure 7: Trends for usage of cooking sauces in the past 12 months, 2006-11
Figure 8: Frequency of using stocks cubes, ready-prepared stocks and gravy makers, 2007-11
Carbohydrates experience robust growth
Figure 9: UK retail value sales of carbohydrates, 2006-10
Cooking from scratch poses a challenge and an opportunity to the market
Figure 10: Agreement with statements on cooking habits, 2007-11
Stocks focus on enhancing the flavour of food
Health concerns centre around salt content
Figure 11: High salt/sodium content, 2007-11
BROADER MARKET ENVIRONMENT
Key points
Consumer incomes remain squeezed...
Figure 12: Year-on-year % change in average weekly earnings compared to inflation in the UK, January 2008-August 2011
…and confidence continues to be fragile
Figure 13: Change in agreement with statements on shopping habits, 2007-11
Demographic changes
Families will aid growth in the market
Figure 14: Forecast adult population trends, by lifestage, 2006-16
One-person households pose both a challenge and an opportunity
Figure 15: Change in UK households, by size, 2006-11 and 2011-16
Growth in the number of ABs will aid premiumisation
COMPETITIVE CONTEXT
Key points
Convenient solutions appeal to the time-pressed consumer
Figure 16: UK retail sales of selected categories competing with cooking sauces, pasta sauces and stocks, percentage change in value, 2005-10
The sector appeals to consumers who want more involvement
Eating out remains a priority for consumers
Figure 17: Items and activities extra money is spent on, August 2011
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Format innovation helps to create standout on-shelf and appeal to time-pressed consumers
Figure 18: New product developments in the cooking sauces, pasta sauces and stocks market, by package type, 2008-11
Premium varieties look to the chilled cabinet
Targeting the growing one-person household
Pasta sauces promote authenticity
Sharwood’s introduces spicier variant
Healthier and organic varieties
Foodservice brands continue to expand into cooking sauces
MARKET SIZE AND FORECAST
Key points
Market to see 25% growth by 2016
Figure 19: UK retail sales of cooking sauces, pasta sauces and stocks, by value, 2006-16
Figure 20: Sales and forecast of the UK cooking sauces, pasta sauces and stocks market, by value, 2006-16
Stocks to see stable growth
Figure 21: Sales and forecast of the stocks and bouillons market, by value, 2006-16
Methodology
SEGMENT PERFORMANCE
Key points
Segmentation remains largely unchanged
Figure 22: UK retail value sales of cooking sauces*, by type, 2007-11
Figure 23: UK retail value sales and forecast of wet/ambient cooking sauces and pasta sauces (excl. soy sauce), 2006-16
Figure 24: Sales and forecast of the wet/ambient cooking sauces market, by value, 2006-16
Figure 25: UK retail value sales and forecast of dry cooking sauces, 2006-16
Figure 26: Sales and forecast of the dry cooking sauces market, by value, 2006-16
Wet/ambient and dry sauces benefit from variety of cuisines
Figure 27: UK retail value sales of wet/ambient and dry cooking sauces and pasta sauces, by cuisine, 2010 and 2011
Chilled sauces see growth
Figure 28: UK retail value sales of fresh cooking sauces, by type, 2010 and 2011
Figure 29: UK retail value sales and forecast of fresh chilled cooking sauces and pasta sauces, 2006-16
Figure 30: Sales and forecast of the chilled sauces market, by value, 2006-16
Cubes continue to dominate the stocks market
Figure 31: UK retail value sales of stocks and bouillons, by type, 2010 and 2011
Figure 32: UK retail value sales and forecast of stocks and bouillons, 2006-16
MARKET SHARE
Key points
Mars continues to hold the lead
Figure 33: Manufacturers’ shares in UK cooking sauces and pasta sauces (excl. soy), 2009 and 2010
Dolmio retains top spot
Figure 34: Estimated brand shares in UK cooking sauces and pasta sauces (excl. soy), 2009 and 2010
Stocks benefit from NPD and celebrity support
Figure 35: Manufacturers’ shares in UK stocks and bouillons market, 2009 and 2010
COMPANIES AND PRODUCTS
Figure 36: Leading companies in the cooking sauces market, their brands and products offered*
AB World Foods
HJ Heinz
McCormick & Company Ltd
Mars
Premier Foods
Saclà
Unilever
 OTHER STOCKS
Maggi (Nestlé)
Marigold Health Foods
Kallo Foods
BRAND RESEARCH
Brand map
Figure 37: Attitudes towards and usage of cooking and pasta sauce brands, September 2011
Correspondence analysis
Brand attitudes
Figure 38: Attitudes, by cooking and pasta sauce brand, September 2011
Brand personality
Figure 39: Cooking and pasta sauce brand personality – macro image, September 2011
Figure 40: Cooking and pasta sauce brand personality – micro image, September 2011
Brand experience
Figure 41: Cooking and pasta sauce brand usage, September 2011
Figure 42: Satisfaction with various cooking and pasta sauce brands, September 2011
Figure 43: Consideration of cooking and pasta sauce brands, September 2011
Figure 44: Consumer perceptions of current cooking and pasta sauce brand performance, September 2011
Figure 45: Cooking and pasta sauce brand recommendation – Net Promoter Score, September 2011
Brand Index
Figure 46: Cooking and pasta sauce Brand Index, September 2011
Figure 47: Cooking and pasta sauce Brand Index vs. recommendation, September 2011
Target group analysis
Figure 48: Target groups, September 2011
Figure 49: Cooking and pasta sauce brand usage, by target groups, September 2011
Group One – Conformists
Group Two – Simply the Best
Group Three – Shelf Stalkers
Group Four – Habitual Shoppers
Group Five – Individualists
BRAND COMMUNICATION AND PROMOTION
Key points
Increase in advertising spend
Figure 50: Main monitored advertising media spend on cooking sauces, pasta sauces and stocks, 2007-11
Mars dominates expenditure...
Figure 51: Top five highest-spending advertisers in the cooking sauces, pasta sauces and stocks market, 2007-11*
…due to the huge investment in Dolmio and Uncle Ben’s
Figure 52: Top ten highest-spending brands in the cooking sauces, pasta sauces and stocks market, 2009-11
CHANNELS TO MARKET
Key points
Figure 53: UK retail value sales of cooking sauces, pasta sauces and stocks, by outlet type, 2007-11
Grocery multiples dominate
Cooking/pasta sauce users prefer grocers and M&S, stocks/bouillons M&S and the discounters
Figure 54: Index of supermarkets used by those who have used cooking or pasta sauces in the last 12 months, (Average = 100), August 2011
Figure 55: Index of supermarkets used by those who have used stocks and bouillons in the last 12 months, (Average = 100), August 2011
CONSUMER USAGE – COOKING SAUCES AND PASTA SAUCES
Key points
Penetration reaches almost nine in ten consumers...
Figure 56: Types of cooking/pasta sauces eaten, August 2011
Figure 57: Cooking/pasta sauces eaten, by age, socio-economic group and household income, August 2011
…and peaks among larger households
Figure 58: Cooking/pasta sauces eating habits, by presence of own children and household size, August 2011
Ethnic sauces appeal to the under-55s
Figure 59: Types of ethnic sauces eaten, by age, August 2011
Traditional British popular among the 25-34s and those in lower socio-economic groups
Figure 60: Index of consumers who have eaten British sauces, by age, socio-economic group and annual household income, (Average = 100), August 2011
Pouches offer convenience to consumers
Figure 61: Use of other cooking sauces (excluding pasta sauces), by packaging, 2007-11
FACTORS INFLUENCING CHOICE OF COOKING SAUCES AND PASTA SAUCES
Key points
Flavour, above price, is the most important factor to consumers
Figure 62: Factors influencing choice of cooking/pasta sauce, August 2011
Low fat/low calorie appeals to women, while brands are important to men
Figure 63: Net difference* between factors influencing choice of cooking/pasta sauces, by gender, August 2011
Ethnic sauce users rate cuisine and accompanying ingredients
ATTITUDES TOWARDS COOKING SAUCES AND PASTA SAUCES
Key points
Promotions and convenience remain focus points for cooking/pasta sauces
Figure 64: Agreement with statements on using cooking/pasta sauces, August 2011
Sauces leverage role as cupboard staple
Balancing experimentation with habits
Figure 65: Agreement with statements on using cooking/pasta sauces, by age, August 2011
A convenient alternative to cooking from scratch
The over-55s focus on salt content, younger consumers on quality ingredients
Figure 66: Index of agreement with statements on using cooking/pasta sauces, by gender and age, August 2011
TARGETING OPPORTUNITIES – COOKING SAUCES AND PASTA SAUCES
Key points
Figure 67: Target groups based on attitudes towards cooking sauces and pasta sauces, August 2011
On A Budget
Disengaged
Discerning
CONSUMER USAGE – STOCKS AND BOUILLONS
Key points
Penetration of stocks reaches over four in five, while bouillons appeal to just over a third
Figure 68: Usage of stocks/bouillons*, August 2011
Core users are the most affluent
Figure 69: Usage of stocks/bouillons, by gender, age, socio-economic group and household income, August 2011
Older consumers favour traditional formats
Figure 70: Usage of stocks, by type, by gender, age and socio-economic group, August 2011
Figure 71: Usage of bouillons, by type, by gender, age and socio-economic group, August 2011
ATTITUDES TOWARDS STOCKS AND BOUILLONS
Key points
Enhancing flavour is the main selling point
Figure 72: Agreement with statements on using stocks/bouillons, August 2011
A reliable and versatile product for consumers
More than a quarter believe brands taste better
Women more engaged with the category than men
Figure 73: Net difference* between agreement with statements on stocks and bouillons, by gender, August 2011
TARGETING OPPORTUNITIES – STOCKS AND BOUILLONS
Key points
 THREE TARGET GROUPS
Figure 74: Target groups based on attitudes towards stocks and bouillons, August 2011
Uninterested
Engaged
Traditional
APPENDIX – INTERNAL MARKET ENVIRONMENT
Figure 75: Frequency of using pasta sauces (cooking or pour-over) in the past 12 months, 2007-11
Figure 76: Frequency of using other cook-in sauces in the past 12 months, 2007-11
Figure 77: Trends in healthy lifestyles, 2010 and 2011
Figure 78: High salt/sodium content, by demographics, 2011
Figure 79: Trends in cooking styles, 2010 and 2011
APPENDIX – BROADER MARKET ENVIRONMENT
Figure 80: GDP, PDI, consumer expenditure and savings, at constant 2011 prices, 2006-16
Figure 81: Forecast adult population trends, by socio-economic group, 2006-16
APPENDIX – WHO’S INNOVATING?
Figure 82: New product developments in the cooking sauces market, by package type, 2008-11
APPENDIX – MARKET SIZE AND FORECAST
Figure 83: Best- and worst-case forecasts for cooking sauces, pasta sauces and stocks, by value, 2011-16
Figure 84: Best- and worst-case forecasts for wet/ambient cooking sauces, by value, 2011-16
Figure 85: Best- and worst-case forecasts for dry cooking sauces, by value, 2011-16
Figure 86: Best- and worst-case forecasts for chilled cooking sauces, by value, 2011-16
Figure 87: Best- and worst-case forecasts for stocks and bouillons, by value, 2011-16
APPENDIX – BRAND RESEARCH
Figure 88: Brand usage, September 2011
Figure 89: Brand commitment, September 2011
Figure 90: Brand momentum, September 2011
Figure 91: Brand diversity, September 2011
Figure 92: Brand satisfaction, September 2011
Figure 93: Brand recommendation, September 2011
Figure 94: Brand attitude, September 2011
Figure 95: Brand image – macro image, September 2011
Figure 96: Brand image – micro image, September 2011
Figure 97: Profile of target groups, by demographics, September 2011
Figure 98: Psychographic segmentation, by target groups, September 2011
Figure 99: Brand usage, by target group, September 2011
Brand Index
Figure 100: Brand Index, September 2011
APPENDIX – CONSUMER USAGE – COOKING SAUCES AND PASTA SAUCES
Figure 101: Most popular cooking/pasta sauces eating habits, by demographics, August 2011
Figure 102: Next most popular cooking/pasta sauces eating habits, by demographics, August 2011
APPENDIX – FACTORS INFLUENCING CHOICE OF COOKING SAUCES AND PASTA SAUCES
Figure 103: Factors influencing choice of cooking/pasta sauce, by demographics, August 2011
Figure 104: Factors influencing choice of cooking/pasta sauce, by most popular cooking/pasta sauces eating habits, August 2011
Figure 105: Factors influencing choice of cooking/pasta sauce, by next most popular cooking/pasta sauces eating habits, August 2011
APPENDIX – ATTITUDES TOWARDS COOKING SAUCES AND PASTA SAUCES
Figure 106: Agreement with statements on using cooking/pasta sauces, August 2011
Figure 107: Agreement with statements ‘I would be more likely to experiment with a new cooking/pasta sauce if it were on promotion’ and ‘I use cooking/pasta sauces when I don't have time to cook from scratch’, by demographics, August 2011
Figure 108: Agreement with statements ‘I see cooking/pasta sauces as a cupboard staple’ and ‘I tend to buy cooking/pasta sauces that I have tried before’, by demographics, August 2011
Figure 109: Agreement with statements ‘I like to try new cuisines/flavours when buying cooking/pasta sauces’ and ‘I would be more likely to buy a cooking/pasta sauce if it was made using quality ingredients’, by demographics, August 2011
Figure 110: Agreement with statements ‘I would be more likely to buy a cooking/pasta sauce if it contained no artificial preservatives, flavourings or colourings’ and ‘I check the salt content of cooking/pasta sauces’, by demographics, August 2011
Figure 111: Agreement with statements ‘I like the convenience of pouches over glass’ and ‘I do not think that cooking/pasta sauces are healthy’, by demographics, August 2011
APPENDIX – TARGETING OPPORTUNITIES – COOKING SAUCES AND PASTA SAUCES
Figure 112: Target groups, by demographics, August 2011
Figure 113: Cooking/pasta sauces eating habits, by target groups, August 2011
Figure 114: Factors influencing choice of cooking/pasta sauce, by target groups, August 2011
Figure 115: Agreement with statements on using cooking/pasta sauces, by target groups, August 2011
Figure 116: Usage of stocks/bouillons, by target groups, August 2011
Figure 117: Agreement with statements on using stocks/bouillons, by target groups, August 2011
APPENDIX – CONSUMER USAGE – STOCKS AND BOUILLONS
Figure 118: Most popular usage of stocks, by demographics, August 2011
Figure 119: Next most popular usage of stocks, by demographics, August 2011
Figure 120: Most popular usage of bouillons, by demographics, August 2011
Figure 121: Next most popular usage of bouillons, by demographics, August 2011
APPENDIX – ATTITUDES TOWARDS STOCKS AND BOUILLONS
Figure 122: Agreement with statements on using stocks/bouillons, by demographics, August 2011
APPENDIX – TARGETING OPPORTUNITIES – STOCKS AND BOUILLONS
Figure 123: Target groups 2, by demographics, August 2011
Figure 124: Usage of stocks/bouillons, by target groups 2, August 2011
Figure 125: Agreement with statements on using stocks/bouillons, by target groups 2, August 2011