Table of Contents
Executive Summary
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- Slow growth as butter sales increase and margarine sales decline
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- Figure 1: Total US sales and fan chart forecast of butter, margarine, and oils, at current prices, 2009-19
- Key players
- The consumer
- Respondents most likely to buy stick butter, spreadable margarine, cooking oil
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- Figure 2: Types of butter purchased, April 2014
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- Figure 3: Types of margarine purchased, April 2014
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- Figure 4: Types of oils purchased, April 2014
- Most use edible fats for cooking; 67% use them for baking
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- Figure 5: Ways butter, margarine, oils, or spreads are used or eaten, by age, April 2014
- Healthy product attributes significantly important to butter, margarine, spread buyers
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- Figure 6: Importance of butter, margarine, or spread product attributes, April 2014
- Healthy attributes important to oil buyers
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- Figure 7: Importance of oil product attributes, April 2014
- What we think
Issues and Insights
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- How can margarine brands establish a healthier profile?
- Insight: Focus on simple, natural ingredients
- Can alternative cooking oil brands meet demand for healthy foods?
- Insight: Alternative oil brands can promote health benefits and flavor
- How can name brands compete with private label?
- Insight: Focus on quality
Trend Applications
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- Trend: Factory Fear
- Trend: Hungry Planet
- Trend: The Real Thing
Market Size and Forecast
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- Key points
- Sales expected to increase modestly into 2019
- Demand for unprocessed foods, health concerns, demographics drive sales
- Recovering consumer confidence limits potential for stronger growth
- Sales and forecast of butter, margarine and oils
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- Figure 8: Total US retail sales and forecast of butter, margarine, and oils, at current prices, 2009-19
- Figure 9: Total US sales and forecast of butter, margarine, and oils, at inflation-adjusted prices, 2009-19
- Fan chart forecast
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- Figure 10: Total US sales and fan chart forecast of butter, margarine, and oils, at current prices, 2009-19
Market Drivers
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- Key points
- Demand for less processed foods impacts usage of butter, margarine
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- Figure 11: Household usage of butter and margarine/margarine spread, November 2008-December 2013
- Presence of children drives usage of all edible fats
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- Figure 12: Types of butter, margarine, oils, or spreads purchased – any purchase once per month or more frequently, by presence of children in household, April 2014
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- Figure 13: Total US households, by presence of own children, 2003-13
- Recovering consumer confidence means consumers will eat out more often
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- Figure 14: University of Michigan’s index of consumer sentiment (ICS), 2007-14
Competitive Context
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- Proposed FDA ban on trans-fat would impact some edible oils
- Competing spread products offer flavor and health alternatives
Segment Performance
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- Key points
- Butter accounts for 30% share, increases 12.8% between 2012 and 2014
- Other edible fats account for 70% share but decline 1.8%
- Sales of butter, margarine, and oils, by segment
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- Figure 15: Total US retail sales of butter, margarine, and oils, by segment, at current prices, 2012 and 2014
Segment Performance – Butter
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- Key points
- Butter sales expected to increase to $3.4 billion by 2019
- Sales and forecast of butter
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- Figure 16: Total US retail sales and forecast of butter, at current prices, 2009-19
Segment Performance – Other Edible Fats
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- Key points
- Other edible fats decline in estimated 2014; slow growth into 2019
- Sales and forecast of other edible fats
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- Figure 17: Total US retail sales and forecast of other edible fats*, at current prices, 2009-19
- Most respondents use olive oil, vegetable oil
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- Figure 18: Types of salad or cooking oil used in household, November 2012-December 2013
- Most use blended vegetable oil spreads
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- Figure 19: Kinds of margarine/margarine spread used in household, November 2012-December 2013
Retail Channels
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- Key points
- Supermarkets hold most share but sales are flat; other channels grow 5.4%
- Sales of butter, margarine, and oils, by channel
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- Figure 20: Total US retail sales of butter, margarine, and oils, by channel, at current prices, 2012 and 2014
- Figure 21: US supermarket sales of butter, margarine, and oils, at current prices, 2009-14
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- Figure 22: US other channel sales of butter, margarine, and oils, at current prices, 2009-14
- Natural channel sales
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- Figure 23: Natural supermarket sales of butter, margarine, and oils, by type, 2012 and 2014*
- Flavored/specialty oils overtake olive oils through natural channels
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- Figure 24: Natural supermarket sales of butter, margarine, and oils, by type, 2012and 2014*
Leading Companies
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- Key points
- Unilever leads through MULO channels but drops sales in 2014
- Private label comprises 33% share
- Manufacturer sales of butter, margarine, and oils
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- Figure 25: MULO sales of butter, margarine, and oils at retail, by leading companies, rolling 52 weeks 2013 and 2014
- Loyalty high for private label
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- Figure 26: Key purchase measures for the top butter, margarine, and oils brands, by household penetration, 52 weeks ending Dec. 30, 2012 (a year ago) and Dec. 29, 2013 (current)
Brand Share – Butter
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- Key points
- Land O Lakes increases 9.9%
- Challenge increases 16.7%
- Breakstone’s drives sales for Dairy Farmers of America
- Private label accounts for 52% share
- Manufacturer sales of butter
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- Figure 27: Manufacturer sales of butter, year and year
Brand Share – Other Edible Fats
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- Key points
- Most margarine brands decline
- Wesson declines as Bertolli increases; Mazola sales flat
- PAM dominates pan/microwave sprays
- Manufacturer sales of other edible fats
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- Figure 28: Manufacturer sales of other edible fats, 2012 and 2013
Innovations and Innovators
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- Leading butter product claims: Hormone-free, organic
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- Figure 29: Top 9 butter product claims, by percentage of total claims, 2009-13
- Leading margarine product claims: Low/no/reduced allergen, gluten-free
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- Figure 30: Top 9 margarine product claims, by percentage of total claims, 2009-13
- Leading cooking oil product claims: organic, low/no/reduced allergen, gluten-free
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- Figure 31: Top 9 cooking oil product claims, by percentage of total claims, 2009-13
- Organic product innovation exemplified in the natural channel
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- Figure 32: Natural supermarket sales of butter, margarine, and oils, by organic content, 2012 and 2014*
- Figure 33: Natural supermarket sales of 100% organic butter, margarine, and oils, by type, 2012 and 2014*
Marketing Strategies
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- Overview of the brand landscape
- Theme: Ease of use
- Brand example: Land O Lakes
- Land O Lakes TV spot
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- Figure 34: Land O’Lakes television ad, 2013
- Brand example: Country Crock
- Country Crock TV spot
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- Figure 35: Country Crock television ad, 2014
- European olive oil brand campaigns counter growing US brands
- Filippo Berio TV spot
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- Figure 36: Filippo Berio television ad, 2014
Purchase Frequency of Butter and Other Edible Fats
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- Key points
- Respondents more apt to buy butter once a month or more than margarine
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- Figure 37: Types of butter, margarine, oils, or spreads purchased, April 2014
- 18-34 significantly more apt than average to buy butter, margarine/spreads
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- Figure 38: Types of butter, margarine, oils, or spreads purchased – any purchase once per month or more frequently, by age, April 2014
Ways Butter, Margarine, Oils, Spreads are Used/Eaten
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- Key points
- Most use butter, margarine, and oils for cooking
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- Figure 39: Ways butter, margarine, oils, or spreads are used or eaten, by age, April 2014
- Households with children most apt to use for baking
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- Figure 40: Ways butter, margarine, oils, or spreads are used or eaten, by presence of children in household, April 2014
Important Butter, Margarine, or Spread Attributes
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- Key points
- A majority say no trans-fat is important
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- Figure 41: Importance of butter, margarine, or spread product attributes, April 2014
- 25-34s most likely to say no artificial ingredients, all-natural important
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- Figure 42: Any Importance of butter, margarine, or spread product attributes, by age, April 2014
- Households with kids most likely to say health attributes are important
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- Figure 43: Any Importance of butter, margarine, or spread product attributes, by presence of children in household, April 2014
Attitudes towards Butter, Margarine, and Spreads Purchases
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- Key points
- Nearly half always buy the same brand
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- Figure 44: Attitudes toward butter, margarine, and spreads purchases, by age, April 2014
- Less than $50K most likely to be brand loyal
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- Figure 45: Attitudes toward butter, margarine, and spreads purchases, by household income, April 2014
- Households with kids willing to pay more for healthier products
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- Figure 46: Attitudes toward butter, margarine, and spreads purchases, by presence of children in household, April 2014
Importance of Oil Product Attributes
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- Key points
- No trans-fat most important for buyers
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- Figure 47: Importance of oil product attributes, April 2014
- 25-34s most likely to cite all natural, healthy oil attributes
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- Figure 48: Any importance of oil product attributes, by age, April 2014
- Health attributes most important among households with children
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- Figure 49: Any Importance of oil product attributes, by presence of children in household, April 2014
Attitudes towards Oil Purchases
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- Key points
- Three in 10 say store brand oils are the same quality as name brands
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- Figure 50: Attitudes toward oil purchases, by age, April 2014
- Less than $25K most likely to say private label as good as brand name
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- Figure 51: Attitudes toward oil purchases, by household income, April 2014
- Households with kids most willing to pay for oils with added health benefits
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- Figure 52: Attitudes toward oil purchases, by presence of children in household, April 2014
Race and Hispanic Origin
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- Key points
- Hispanics report most likelihood to buy all types of edible fats
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- Figure 53: Types of butter, margarine, oils, or spreads purchased – any purchase once per month or more frequently, by race/Hispanic origin, April 2014
- Blacks, Hispanics more apt than Whites to say healthy attributes important
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- Figure 54: Any Importance of butter, margarine, or spread product attributes, by race/Hispanic origin, April 2014
Appendix – Other Useful Consumer Tables
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- Purchase frequency of butter and other edible fats
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- Figure 55: Types of butter, margarine, oils, or spreads purchased (nets), April 2014
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- Figure 56: Types of butter, margarine, oils, or spreads purchased – any purchase once per month or more frequently, by household income, April 2014
- Ways butter, margarine, oils, spreads are used/eaten
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- Figure 57: Ways butter, margarine, oils, or spreads are used or eaten, by household income, April 2014
- Important butter, margarine, or spread attributes
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- Figure 58: Any Importance of butter, margarine, or spread product attributes, by household income, April 2014
- Importance of oil product attributes
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- Figure 59: Any Importance of oil product attributes, by household income, April 2014
- Race and Hispanic origin
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- Figure 60: Ways butter, margarine, oils, or spreads are used or eaten, by race/Hispanic origin, April 2014
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- Figure 61: Attitudes toward oil purchases, by race/Hispanic origin, April 2014
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- Figure 62: Attitudes toward butter, margarine, and spreads purchases, by race/Hispanic origin, April 2014
Appendix – Information Resources Inc. Builders Panel Data Definitions
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- Information Resources Inc. Consumer Network Metrics
Appendix – Trade Associations
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