Table of Contents
Introduction
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- Definition
- Abbreviations
Executive Summary
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- The market
- Forecast
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- Figure 1: Forecast of UK retail sales of cheese, by value, 2006-16
- Market factors
- Rising costs put pressure on margins
- Evenings in benefit cheese
- Interest in healthy eating poses a challenge
- Demographic changes pose opportunities and challenges
- Companies, brands and innovation
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- Figure 2: Brands’ retail value shares in the cheese market, 2010
- Cathedral City leads a fragmented market
- NPD growth in convenient packaging and reduced/no-fat options since 2008
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- Figure 3: Most common claims in new product launches in the UK cheese market, 2008-11*
- Cathedral City dominates adspend in 2011
- The consumer
- Sandwiches remain the main use for cheese
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- Figure 4: Usage of cheese at home, by occasion, July 2011
- Promotions play a key role in cheese
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- Figure 5: Attitudes towards cheese, July 2011
- Purchasing considerations also driven by price
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- Figure 6: Factors looked for when buying cheese, July 2011
- What we think
Issues in the Market
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- How have promotions shaped the cheese market?
- Do consumers want reduced-fat cheeses?
- Is the decline in use of cheese in lunchboxes reversible?
- How can brands encourage higher usage among over-55s?
Future Opportunities
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- Guiding Choice
- FSTR & HYPR
Internal Market Environment
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- Key points
- Evenings in and home cooking on the rise
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- Figure 7: Trends in attitudes towards home cooking, 2007-11
- Healthy eating remains important, but there is also demand for indulgence
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- Figure 8: Trends in attitudes towards healthy eating, 2007-11
- Interest in provenance recovers from previous years’ decline
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- Figure 9: Trends in attitudes towards provenance, 2007-11
Broader Market Environment
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- Key points
- Consumers to remain conservative with limited value market growth
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- Figure 10: Consumer confidence index, monthly, January 2007-August 2011
- Growing potential for cheese in the children’s segment
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- Figure 11: Projected trends in the UK population, by age group, 2011-16
- 25-34-year-olds key to growth for the cheese market
- Ageing of UK population a potential threat to the market
- Growth of ABs brings opportunities for added-value segments
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- Figure 12: Projected trends in the UK population, by socio-economic group, 2011-16
Competitive Context
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- Key points
- Cheese is benefiting from the ‘make-it-yourself’ trend
- Packed lunches gained popularity in the recession
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- Figure 13: UK retail sales of selected categories competing with cheese, 2006-10
- Cheese category heavily driven by price
Strengths and Weaknesses
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Own-label innovation closes the gap on brands
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- Figure 14: New product launches in the UK cheese market: own-label vs brands, 2008-11*
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- Figure 15: NPD, by company, 2010
- Figure 16: NPD in the UK cheese market by ultimate company, top ten and others, 2008-11*
- Health and convenience remain top claims in product launches
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- Figure 17: New product launches in the UK cheese market, by ten most common claims, 2008-11*
- Key themes in new launches
- Lower-fat cheeses continue to thrive in NPD
- Convenience attracts a sizeable minority of consumers
- New launches with no additives/preservatives target the kids’ segment
Market Size and Forecast
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- Key points
- Strong promotional activity boosts volume sales
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- Figure 18: UK retail volume and value sales of cheese, at current and constant prices, 2006-11
- Figure 19: UK retail sales of cheese: value and annual change, 2006-10
- Volume sales jump as promotions dominate the market
- Value sales continue to grow
- Price continues to grow in importance
- Forecast
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- Figure 20: Forecast of UK retail sales of cheese, by value, 2006-16
- Figure 21: Forecast of UK retail sales of cheese, by volume, 2006-16
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- Figure 22: Forecast of UK retail sales of cheese, by value, 2006-16
- Figure 23: Forecast of UK retail sales of cheese, by volume, 2006-16
- Forecast methodology
Segment Performance
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- Key points
- Cheddar tightens its grip on the market
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- Figure 24: UK Retail value and volume sales of cheese, by type, 2009 and 2010
- Figure 25: UK Retail value and volume sales of cheddar, by type, 2009/10 and 2010/11
- Continental and blue cheeses show promising growth
- Recipe cheeses surge as they tap into consumer trends
- Sales of territorial cheeses slow as customers focus on value
- Sales of processed cheese stagnate as focus on health grows
Market Share
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- Key points
- Brands grow as consumers continue to seek value and health
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- Figure 26: Brands’ retail value shares in cheese, 2008-10
Companies and Products
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- Bel UK
- Dairy Crest
- Kraft Foods
- Lactalis McLelland
- Adams Foods
- Wyke Farms
Brand Research
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- Brand map
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- Figure 27: Attitudes towards and usage of cheese brands, August 2011
- Brand attitudes
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- Figure 28: Attitudes, by cheese brand, August 2011
- Brand personality
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- Figure 29: Cheese brand personality – macro image, August 2011
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- Figure 30: Cheese brand personality – micro image, August 2011
- Correspondence analysis
- Brand experience
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- Figure 31: Cheese brand usage, August 2011
- Figure 32: Satisfaction with various cheese brands, August 2011
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- Figure 33: Consideration of cheese brands, August 2011
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- Figure 34: Consumer perceptions of current cheese brand performance, August 2011
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- Figure 35: Cheese brand recommendation – Net Promoter Score, August 2011
- Brand index
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- Figure 36: Cheese brand index, August 2011
- Figure 37: Cheese brand index vs. recommendation, August 2011
- Target group analysis
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- Figure 38: Target groups, August 2011
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- Figure 39: Cheese brand usage, by target groups, August 2011
- Group One – Conformists
- Group Two – Simply the Best
- Group Three – Shelf Stalkers
- Group Four – Habitual Shoppers
- Group Five – Individualists
Brand Communication and Promotion
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- Key points
- Cheese advertising drops again after 2010 recovery
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- Figure 40: Topline advertising spend for cheese, 2008-11
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- Figure 41: Topline advertising spend for cheese, by quarter, 2008-10
- Advertising budgets increasingly focused upon cheddar
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- Figure 42: Advertising expenditure on cheese, by product category, 2008-11
- TV dominates advertising budgets with an increasing focus on radio
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- Figure 43: Advertising expenditure in the UK, by media type, 2008-11
- Dairy Crest grows spend to become the largest advertiser
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- Figure 44: Advertising expenditure, by top ten companies, 2008-11
- Cathedral City and Philadelphia dominate as the top brands by adspend
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- Figure 45: Advertising expenditure, by top ten brands, 2008-10
Channels to Market
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- Key point
- Multiple grocers dominate cheese market
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- Figure 46: UK retail sales of cheese by outlet type, 2008-10
Consumer – Trends in Usage
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- Key points
- Use in sandwiches remains the dominant eating occasion
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- Figure 47: Usage of cheese at home, by occasion, July 2011
- Use of cheese in lunchboxes declines
- Cheese as a multipurpose and flexible product
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- Figure 48: Repertoire of usage of cheese, by occasion, July 2011
- Block cheese in decline with packets and spreads growing
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- Figure 49: Trends in frequency of eating block cheese, 2006-11
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- Figure 50: Ten most popularly eaten varieties of cheese in blocks, 2011
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- Figure 51: Trends in frequency of eating packeted cheese, spreads and speciality cheeses, 2007-11
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- Figure 52: Types of packeted cheese, cheese spread and speciality cheese eaten, 2011
Consumer – Attitudes towards Cheese
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- Key points
- Price remains the overriding consideration
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- Figure 53: Attitudes towards price and promotion in cheese, July 2011
- Strong interest in newness
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- Figure 54: Attitudes towards new products and brands in cheese, July 2011
- Provenance is only a theoretical desire for many consumers
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- Figure 55: Attitudes towards provenance in cheese, July 2011
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- Figure 56: Attitudes towards nutrition in cheese, July 2011
Consumer – Choice Factors
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- Key points
- Special offers are most common purchase consideration
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- Figure 57: Most important factors looked for when purchasing cheese, July 2011
- Consumer tastes becoming more mature
- Convenience seen as an added benefit rather than a purchase driver
- Consumers reluctant to embrace lower-fat cheeses
- Interest in provenance on the slide
Consumer – Target Groups
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- Key points
- Four target groups
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- Figure 58: Target groups, July 2011
- Loyalists (31%)
- Bargain Hunters (27%)
- Curious (21%)
- Disengaged (21%)
Appendix – Internal Market Environment
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- Figure 59: Agreement with selected lifestyle statements, 2007-11
- Figure 60: Agreement with selected lifestyle statements, by demographics, 2011
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- Figure 61: Agreement with selected lifestyle statements, by demographics, 2011
- Figure 62: Agreement with selected lifestyle statements, by demographics, 2011
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Appendix – Market Size and Forecast
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- Figure 63: Forecast of UK retail sales of cheese, by value, 2006-16
- Figure 64: Forecast of UK retail sales of cheese, by value, best and worst case forecast, 2011-16
- Figure 65: Forecast of UK retail sales of cheese, by volume, 2006-16
- Figure 66: Forecast of UK retail sales of cheese, by volume, best and worst case forecast, 2011-16
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- Figure 67: UK Retail value and volume sales of cheese, by hardness, 2009 and 2010
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Appendix – Brand Research
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- Figure 68: Brand usage, August 2011
- Figure 69: Brand commitment, August 2011
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- Figure 70: Brand momentum, August 2011
- Figure 71: Brand diversity, August 2011
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- Figure 72: Brand satisfaction, August 2011
- Figure 73: Brand recommendation, August 2011
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- Figure 74: Brand attitude, August 2011
- Figure 75: Brand image – macro image, August 2011
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- Figure 76: Brand image – micro image, August 2011
- Figure 77: Profile of target groups, by demographic, August 2011
- Figure 78: Psychographic segmentation, by target group, August 2011
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- Figure 79: Brand usage, by target groups, August 2011
- Brand index
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- Figure 80: Brand index, August 2011
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Appendix – Consumer – Trends in Usage
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- Figure 81: Frequency of using cheese in blocks, 2007-11
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- Figure 82: Frequency of using cheese in blocks, by demographics, 2011
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- Figure 83: Varieties of cheese in blocks eaten, 2007-11
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- Figure 84: Repertoire of varieties of cheese in blocks, 2011
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- Figure 85: Frequency of using packeted cheese, cheese spread & speciality cheese, 2007-11
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- Figure 86: Frequency of using Packeted cheese, cheese spread and speciality cheese, by demographics, 2011
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- Figure 87: Types of packeted cheese, cheese spread & speciality cheese eaten, 2007-11
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Appendix – Consumer – Usage of Cheese by Occasion
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- Figure 88: Usage of cheese at home, July 2011
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- Figure 89: Usage of cheese at home, by demographics, July 2011
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- Figure 90: Usage of cheese at home, by demographics, July 2011 (continued)
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- Figure 91: Repertoire of ways of using cheese at home, July 2011
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- Figure 92: Repertoire of ways of using of cheese at home, by demographics, July 2011
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Appendix – Consumer – Attitudes towards Cheese
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- Figure 93: Attitudes towards cheese, July 2011
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- Figure 94: Agreement with the statements ‘I limit how much cheese I eat because it's high in fat’ and ‘Cheese is a good source of nutrients (eg calcium)’, by demographics, July 2011
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- Figure 95: Agreement with the statements ‘Reduced fat cheese tastes bland’ and ‘Cheese is a good source of calcium for kids’, by demographics, July 2011
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- Figure 96: Agreement with the statements ‘I usually check the country of origin of cheese I buy’ and ‘I expect supermarket own-label cheddar to be British’, by demographics, July 2011
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- Figure 97: Agreement with the statements ‘I would like to see more cheese from smaller producers at the supermarket’ and ‘Mature cheese is worth paying more for’, by demographics, July 2011
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- Figure 98: Further attitudes towards cheese, July 2011
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- Figure 99: Agreement with the statements ‘I often buy whichever cheese is on offer’ and ‘I stock up on my favourite cheese when it’s on offer’, by demographics, July 2011
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- Figure 100: Agreement with the statements ‘I tend to stick to my favourite brand/ own-brand because I like the taste’ and ‘I like to try new varieties and types of cheese’, by demographics, July 2011
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- Figure 101: Agreement with the statements ‘I would like to see more flavour variants in cream cheese (eg with sundried tomato, or with smoked salmon)’ and ‘For the same price, I prefer branded cheese to supermarket own-label’, by demographics, July 2011
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- Figure 102: Agreement with the statements ‘When I want really high quality cheese, I shop at a specialist store (eg deli, cheesemonger)’ and ‘I am more likely to try a new cheese if it's from a familiar brand’, by demographics, July 2011
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Appendix – Consumer – Choice Factors
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- Figure 103: Choice factors when buying cheese, July 2011
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- Figure 104: Most popular choice factors when buying cheese, by demographics, July 2011
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- Figure 105: Next most popular choice factors when buying cheese, by demographics, July 2011
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- Figure 106: Other popular choice factors when buying cheese, by demographics, July 2011
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Appendix – Consumer – Target Groups
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- Figure 107: Target groups, by demographics, July 2011
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- Figure 108: Usage of cheese at home, by target groups, July 2011
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- Figure 109: Attitudes to Cheese, by target groups, July 2011
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- Figure 110: Further attitudes towards cheese, by target groups, July 2011
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- Figure 111: Choice factors, by target groups, July 2011
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- Figure 112: Changes in grocery shopping habits, by target groups, July 2011
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