Table of Contents
Issues in the Market
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- Definition
- Abbreviations
Insights and Opportunities
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- Potential for greater segmentation
- Fresh perceptions
- Health is permeating all layers of sub-brands
- Continued investment in value
Market in Brief
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- UK own-label leads the way in Europe
- The brands vs own-label debate
- Segmentation provides scope for new product development
- Brands fight their corner
- Twin trends of premium and value
- Consumer trends
Fast Forward Trends
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- Trend 1: “The Lego Way”
- General observations
- Market touchpoints/implications
- Trend 2: “Market as Conversation”
- General observations
- Market touchpoints/implications
- Trend 3: “Invasion of the Data-Snatchers.”
- General observations
- Market touchpoints/implications
- Fast forward – an explanation
Internal Market Environment
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- Retailers promote themselves as brands
- Supermarkets lead from the front in healthy eating
- Growing demand for sustainable food
- NPD drives demand for convenience
- Consumers want to spend more money on food, or do they?
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- Figure 1: Attitudes towards premium supermarket own-label ranges, May 2006
Broader Market Environment
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- Higher PDI drives consumers towards premium
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- Figure 2: Attitudes towards quality, by country, 2005
- Inflation keeps spend on in-home food and drink in check
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- Figure 3: UK consumer expenditure on in-home food & drink against total consumer expenditure, 1995 and 2005
- Wider focus on food puts retailers in a position of power
Competitive Context
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- Own-label under pressure to innovate
- Non-food growth does not detract from food
- Some challenges to takeaway sector
Strengths and Weaknesses in the Market
Who’s Innovating?
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- UK capitalises on demand for convenience
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- Figure 4: Number of new own-label products by country, September 2005-06
- Figure 5: Number of new own-label products by category, UK and US, September 2005-06
- Meals and meal centres
- Value brands shift upwards
- Convenience meets healthy
- Strong NPD in children’s ranges
- Future outlook
Market Value and Forecast
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- More money per household, less spent on food
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- Figure 6: Estimated UK retail sales of own-label food* and drink, by value, 2000-11
- Primary reasons for growth
- What does the future hold for own-label?
- Chilled continues to outperform frozen and ambient
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- Figure 7: Estimated retail sales of own-label packaged and fresh commodity foods, by value, 2001-06
- Own-label benefits from growth in fresh
Segment Performance
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- Brands are fighting back via premium
- A strong performance in chilled
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- Figure 8: Estimated retail sales of own-label chilled foods, by value, 2001-06
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- Figure 9: Estimated own-label penetration, by selected chilled packaged foods markets, by value, 2001-05
- Chilled meals ready for next stage
- Growth area: ready-to-cook
- Chilled pasta shuts out brands
- Finding growth in chilled pot desserts
- Dominating chilled pizza
- Struggling area: yogurts
- Ambient sales lose their impetus
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- Figure 10: Estimated retail sales of own-label ambient foods, 2001-06
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- Figure 11: Estimated own-label penetration, by selected ambient packaged grocery markets, by value, 2001-05
- Biscuits in decline
- Up and coming dried fruits
- Leading brands prove too much for bread
- Little impact on noodles
- Growth area: chocolate confectionery
- Growing share of flat/declining markets?
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- Figure 12: Estimated retail sales of own-label frozen foods, by value, 2001-06
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- Figure 13: Estimated own-label penetration, by selected frozen foods markets, by value, 2001-05
- Brands come and go in frozen ready meals
- Own-label profits from struggling desserts
- Frozen fish and seafood benefits from category growth
- Shrinking share of frozen pizza
- Instant coffee is a branded domain
- Growth area – Fairtrade
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- Figure 14: Estimated own-label penetration of coffee and tea, by value, 2001-05
- Opportunities in healthy drinking
- Smoothies’ branded dominance; how long can it continue?
- Frozen opportunities
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- Figure 15: Estimated own-label penetration of selected non-alcoholic drinks categories, by value, 2003-05
- Own-label booze impresses the cheapskates
- Own-label wine: a social no-no?
- Champagne fixture
Market Share
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- Own-label to brand ratio
- Sacrificing profit for volume?
- Premium lines showing growth
- Basic assumptions on own-label
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- Figure 16: Agreement with the statements ‘Supermarkets’ own brands are made by the big manufacturers anyway’ and ‘On the whole I think well known brands are better than a shop’s own brands’, 2002-06
Retailers and Sub-brands
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- The own-label brand dynasty
- Tesco
- Own-label performance
- Commitment to health and the environment
- Sainsbury’s
- Own-label performance
- Commitment to health and the environment
- Asda
- Own-label performance
- Commitment to health and the environment
- Morrisons
- Own-label performance
- Somerfield
- Own-label performance
- Commitment to health and the environment
- Marks & Spencer
- Own-label performance
- Commitment to health and the environment
- Waitrose
- Own-label performance
- Commitment to health and the environment
- The Co-operative Group
- Own-label performance
- Commitment to health and the environment
- Iceland
- Own-label performance
- Commitment to health and the environment
Brand Communication and Promotion
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- Overall spend
- Tesco
- Discounters
- Focus on fresh and healthy
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- Figure 17: Main monitored media advertising expenditure on own-label food and drink, by major supermarkets, 2001-06
- Figure 18: Main monitored media advertising expenditure on healthy ranges, by major supermarkets, 2001-06
Channels to Market
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- Figure 19: Source of main grocery shopping, UK, 1998-2005
- The battle for primary shoppers
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- Figure 20: Primary shoppers as percentage of all shoppers, 1998-2005
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The Consumer – Relevance of Sub-brands
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- Overall findings
- Importance of sub-brands
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- Figure 21: Importance of own-label ranges to shoppers, May 2006
- Popularity of core brands; value, standard and premium
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- Figure 22: Importance of value, standard and premium ranges to shoppers, according to percentage point above/below average, May 2006
- Ethical values
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- Figure 23: Importance of organic and fairtrade ranges to shoppers, according to percentage point above/below average, May 2006
- Waitrose – the wealthy shopper not a healthy shopper?
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- Figure 24: Importance of healthy and children’s ranges to shoppers, according to percentage point above/below average, May 2006
- Doing it for the kids
- Some stereotyping in sub-branding
- Who’s buying what?
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- Figure 25: Importance of own-label ranges to shoppers, compared to average, by gender, age and socio-economic group, May 2006
The Consumer – Sub-brand Positioning
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- Overall findings
- Own-label ranges bought by shoppers
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- Figure 26: Importance of own-label ranges to Tesco shoppers, according to percentage point above/below average, May 2006
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- Figure 27: Importance of own-label ranges to Sainsbury’s shoppers according to percentage point above/below average, May 2006
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- Figure 28: Importance of own-label ranges to Asda shoppers, according to percentage point above/below average, May 2006
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- Figure 29: Importance of own-label ranges to Marks & Spencer shoppers, according to percentage point above/below average, May 2006
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- Figure 30: Importance of own-label ranges to shoppers, according to percentage point above/below average, May 2006
Consumer – Attitudes and Decision-making
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- Choosing own-label over brands
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- Figure 31: Reasons why you choose own-label over brands, May 2006
- Value for money comes first
- Value is linked to trust
- Choosing brands over own-label
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- Figure 32: Reasons why you choose brands over own-label, May 2006
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- Figure 33: Reasons why you choose brands or own-label, May 2006
- Trust still lies with the brands
- Repertoire of reasons for choice of brands over own-label
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- Figure 34: Netted reasons why you choose own-label over brands, by repertoire of sub-brands, May 2006
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- Figure 35: Importance of sub-brands, by repertoire of sub-brands, May 2006
Appendix
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- Introduction
- Other Mintel reports of relevance include:
- Consumer research
- ACORN
- Advertising data
- Internal market environment
- Attitudes towards cheapest-on-display products
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- Figure 36: COD purchasing behaviour and attitudes towards quality, May 2006
- Figure 37: Purchasing of, and attitudes towards, own-label economy food ranges, May 2006
- Broader market environment
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- Figure 38: PDI and consumer expenditure, at current and constant prices, 2001-2011
- Figure 39: UK retail sales of fruit and vegetables, 2000-05
- Who’s innovating?
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- Figure 40: Number of new own-label products by category, by top ten retailers, September 2005-06
- Market value and forecast
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- Figure 41: Estimated retail sales of own-label packaged foods, by value, 2001-06
- Figure 42: Estimated retail sales of own-label commodity fresh foods, by value, 2001-06
- Figure 43: Estimated UK retail sales of own-label foods, by value, by sector, 2005
- Manufacturer shares
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- Figure 44: Estimated retail sales of own-label packaged and fresh commodity foods, by value, 2001-06
- Figure 45: Estimated UK retail sales of own-label foods, by value, by sector, 2001-05
- Chilled ready meals
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- Figure 46: UK retail share of chilled ready meals, by retailer, 2001-05
- Chilled pasta
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- Figure 47: Leading brand value shares in the chilled pasta market, 2002-04
- Dry pasta
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- Figure 48: Leading brand value shares in the dry pasta market, 2002-04
- Chilled pot desserts
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- Figure 49: Manufacturer shares of the chilled pot desserts market, 2001-05
- Chilled pizza
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- Figure 50: Manufacturer/brand shares of the prepacked chilled pizza market, 2000, 2002 and 2004
- Frozen pizza
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- Figure 51: Manufacturer/brand shares of the frozen pizza market, 2000, 2002 and 2004
- Yogurt and yogurt drinks
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- Figure 52: Manufacturers’ value shares in the UK yogurt and yogurt drink market (retail sales), 2001-05
- Dried fruit
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- Figure 53: Manufacturers’ value shares in the dried fruits market, by brand, 2001-05
- Bread
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- Figure 54: Brand shares of plant bread, by value, 2002 and 2004
- Chocolate confectionery
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- Figure 55: Manufacturers’ value shares in the UK chocolate market (retail sales), 2001-05
- Sweet biscuits
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- Figure 56: Manufacturers' branded shares of the UK retail sweet biscuit market, 2001-05
- Frozen ready meals
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- Figure 57: Manufacturers’ share of the UK frozen ready meal market, by value, 2001-05
- Frozen desserts
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- Figure 58: Manufacturers’ branded shares in the frozen desserts market, 2001-05
- Coffee
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- Figure 59: Market share of instant coffee, by producer, by value, 2003 and 2005
- Figure 60: Market share of ground coffee, by producer, by value, 2003 and 2005
- Tea
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- Figure 61: Market share of tea, by producer, by value, 2002 and 2004
- Smoothies
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- Figure 62: Brand manufacturers’ share of the smoothies market, 2001-06
- Wine
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- Figure 63: UK leading wine brands, by volume and value, 2004
- Figure 64: Estimated brand shares in the total champagne market, by value, 2001-05
- Figure 65: Estimated brand shares in the UK sparkling wine market, by volume, off-trade, 2001-05
- Whisky
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- Figure 66: Selected UK whisky brands, by volume and value, 2005
- Figure 67: UK brandy brand shares, by value, 2000-04
- Figure 68: UK vodka brand shares, by value, 2000-04
- Figure 69: UK gin brand shares, by value, 2000-04
- Channels to market
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- Figure 70: Food and drink retailers’ sales, 2002-05
- Consumer 1 – Detailed demographics
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- Figure 71: Importance of own-label ranges to shoppers, by gender, age, social grade, marital status, age of own children, Mintel’s Special Groups, working status, tenure, region, ACORN group, technology users, Internet usage, commercial TV viewing, supermarket usage, household size, car ownership, lifestage, May 2006
- Figure 72: Importance of own-label ranges to shoppers, by gender, age, social grade, marital status, age of own children, Mintel’s Special Groups, working status, tenure, region, ACORN group, technology users, Internet usage, commercial TV viewing, supermarket usage, household size, car ownership, lifestage, May 2006
- Consumer 2 – Detailed Demographics
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- Figure 73: Reasons why you choose own-label over brands, by gender, age, social grade, marital status, age of own children, Mintel’s Special Groups, working status, tenure, region, ACORN group, technology users, Internet usage, commercial TV viewing, supermarket usage, household size, car ownership, lifestage, May 2006
- Figure 74: Reasons why you choose own-label over brands, by gender, age, social grade, marital status, age of own children, Mintel’s Special Groups, working status, tenure, region, ACORN group, technology users, Internet usage, commercial TV viewing, supermarket usage, household size, car ownership, lifestage, May 2006
- Nets
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- Figure 75: Reasons why you choose own-label over brands, by gender, age, social grade, marital status, age of own children, Mintel’s Special Groups, working status, tenure, region, ACORN group, technology users, Internet usage, commercial TV viewing, supermarket usage, household size, car ownership, lifestage, May 2006
- Figure 76: Reasons why you choose own-label over brands, May 2006
- Reasons why you choose brands over own-label
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- Figure 77: Reasons why you choose brands over own-label, by gender, age, social grade, marital status, age of own children, Mintel’s Special Groups, working status, tenure, region, ACORN group, technology users, Internet usage, commercial TV viewing, supermarket usage, household size, car ownership, lifestage, May 2006
- Figure 78: Reasons why you choose brands over own-label, by gender, age, social grade, marital status, age of own children, Mintel’s Special Groups, working status, tenure, region, ACORN group, technology users, Internet usage, commercial TV viewing, supermarket usage, household size, car ownership, lifestage, May 2006
- Attitude nets
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- Figure 79: Netted reasons why you choose brands over own-label, by gender, age, social grade, marital status, age of own children, Mintel’s Special Groups, working status, tenure, region, ACORN group, technology users, Internet usage, commercial TV viewing, supermarket usage, household size, car ownership, lifestage, May 2006
- Figure 80: Netted reasons why you choose brands over own-label, by supermarket usage, May 2006
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- Figure 81: Netted reasons why you choose brands over own-label, by type of sub-brand, May 2006
- Correlation analysis
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- Figure 82: Correlation of own-label sub-brands by retailer, May 2006
- Figure 83: Correlation of own-label sub-brands by retailer, May 2006
- Cross-analyses
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- Figure 84: Cross-analysis of own-label ranges by reasons why you choose own-label over brands, May 2006
- Figure 85: Cross-analysis of own-label ranges by reasons why you choose brands over own-label, May 2006
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- Figure 86: Cross-analysis of own-label ranges by reasons why you choose brands over own-label, May 2006
- Figure 87: Cross-analysis of own-label ranges by reasons why you choose brands over own-label, May 2006
- Premium foods
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- Figure 88: Foods consumers would consider paying a higher price for, May 2006
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