Brand Overview: Food: Inc Impact of COVID-19 - UK - May 2020

OVERVIEW
What you need to know
Key issues covered in this Report
Products covered in this Report
EXECUTIVE SUMMARY
Impact of COVID-19 on food brands
Figure 1: Expected impact of COVID-19 on the food through retail market, short, medium and long term, 12 June 2020
Brand Leaders
Food brands hold a lot of influence
Figure 2: Top ten brands in the food sector by consumption in the last 12 months, December 2017 – February 2020
A link between commitment, trust and usage
Figure 3: Top ten brands in the food sector by commitment (net of “It’s a favourite brand” and “I prefer this brand over others”), December 2017 – February 2020
It’s a good time to be an established brand
Figure 4: Top ten brands in the food sector by agreement with “A brand that I trust”, December 2017 – February 2020
Treats and indulgence create high satisfaction
Figure 5: Top ten brands in the food sector by satisfaction (net of “Good” and “Excellent” reviews), December 2017 – February 2020
Not just satisfaction that determines recommendation
Figure 6: Top ten brands in the food sector by likely recommendation, December 2017 – February 2020
Unique attributes create differentiation
Figure 7: Top ten brands in the food sector by perceived differentiation (net of “It’s a unique brand” and “It somewhat stands out from others”), December 2017 – February 2020
Brand Personality Traits
Push innovation as the domain of established brands
Figure 8: Top ten brands in the food sector by agreement with “A brand that is innovative”, December 2017 – February 2020
Focus on value not price
Figure 9: Top ten brands in the food sector by agreement with “A brand that offers good value”, December 2017 – February 2020
Quality is not necessarily based on indulgence…
Figure 10: Top ten brands in the food sector by agreement with “A brand that is consistently high quality”, December 2017 – February 2020
…but indulgence does assist in building a reputation as being worth paying more for
Figure 11: Top ten brands in the food sector by agreement with “A brand that is worth paying more for”, December 2017 – February 2020
Sweet treat brands are considered delicious
Figure 12: Top ten brands in the food sector by association with “delicious”, December 2017 – February 2020
Hot Topics in Food
Talking about ingredients can aid natural positioning
Figure 13: Top ten brands in the food sector by association with “Natural”, December 2017 – February 2020
Brands with a healthier profile set to benefit from COVID-19
Figure 14: Top ten brands in the food sector by agreement with “A brand that cares about my health/wellbeing”, December 2017 – February 2020
Indulgence and taste are closely linked
Figure 15: Top ten brands in the food sector by association with “Indulgent”, December 2017 – February 2020
Nostalgia contributes towards comfort
Figure 16: Top ten brands in the food sector by association with “Comforting”, December 2017 – February 2020
Environmental issues have not gone away
Figure 17: Top ten brands in the food sector by association with “Ethical”, December 2017 – February 2020
What we think
THE IMPACT OF COVID-19 ON FOOD BRANDS
Short, medium and long term impact on the industry
Figure 18: Expected impact of COVID-19 on the food through retail market, short, medium and long term, 12 June 2020
Opportunities and Threats
Help people through in the short term
Focus on value to ward off own-label threat
Pay attention to health benefits
Explore different sales channels
Impact on food brands
A return to near-normal demand levels is a positive for brands
Figure 19: Food spending expectations for the next month, 16 April – 11 June 2020
Brands explore new delivery channels to boost availability
Figure 20: Ben & Jerry’s sponsored Instagram story, May 2020
It’s a good time to be an established brand
Figure 21: Leading brands for agreement with “a brand that I trust”, December 2017 – February 2020
Figure 22: Cathedral City Stay Home campaign, April 2020
Younger consumers more likely to trade down in the short term
Figure 23: Expectations of a negative impact on unemployment levels and career prospects, 4-11 June 2020
Shifts in consumer behaviour
Provenance and localism will become stronger purchase drivers 
New consumers are experiencing online shopping
Online shopping offers the chance for a brand shake-up
Figure 24: Shoppers who have shopped more online over the last 12 months because it’s more convenient than visiting stores, by age, December 2019
Overall focus on health translates into food choices
Figure 25: Change in priorities since the COVID-19 outbreak, 7-14 May 2020
Figure 26: Kellogg’s Special K comparison, 2010 vs 2020
Older groups will be concerned for longer  
Environmental issues have not gone away
Stress levels will remain elevated
Figure 27: Issues affecting wellbeing, by gender, 4-7 June 2020
Capitalise on the link between food and mood
Figure 28: Maltesers lockdown lighter side of life, May 2020
Bring some normality back to consumers’ lives
Figure 29: Hӓagen-Dazs Secret Sofa, April 2020
Lessons from the 2008-9 recession
Another push towards discounters
Private label brands to strengthen their position
Focus on value, not price
Scratch cooking and home baking will receive another boost
Figure 30: Quaker Oats Instagram sponsored Instagram story, May 2020
Figure 31: Mr Kipling home baking kit launches, 2019
Help build the young’s confidence in the kitchen 
Figure 32: Consumers who eat out at least once a week, by age, May 2019
Do not abandon affordable luxury
Utilise nostalgia that speaks to better times
Figure 33: Seabrook 75th anniversary Fish & Chips flavour crisps, April 2020
COVID-19: Market context
BRAND LEADERS – WHAT YOU NEED TO KNOW
Food brands hold a lot of influence
A link between commitment, trust and usage
It’s a good time to be an established brand
Treats and premium brands create high satisfaction
Unique attributes create differentiation
USAGE
Food brands hold a lot of influence
Figure 34: Top ten brands in the food sector by consumption in the last 12 months, December 2017 – February 2020
Cadbury Dairy Milk adds new impetus
Figure 35: Top ten brands in the food sector by overall consumption, December 2017 – February 2020
Figure 36: Maltesers and KitKat launches, 2020
PREFERENCE
A link between commitment, trust and usage
Figure 37: Top ten brands in the food sector by commitment (net of “It’s a favourite brand” and “I prefer this brand over others”), December 2017 – February 2020
TRUST
Longevity builds trust
Figure 38: Top ten brands in the food sector by agreement with “A brand that I trust”, December 2017 – February 2020
It’s a good time to be an established brand
Figure 39: Heinz Tomato Ketchup launch celebrating 150 years, 2019
Trusted brands can use their position for short term reassurance
SATISFACTION AND RECOMMENDATION
Treats and indulgence create high satisfaction
Figure 40: Top ten brands in the food sector by satisfaction (net of “Good” and “Excellent” reviews), December 2017 – February 2020
Other factors that determine recommendation
Figure 41: Top ten brands in the food sector by likely recommendation, December 2017 – February 2020
DIFFERENTIATION
Premium and luxury aids standout
Figure 42: Top ten brands in the food sector by perceived differentiation (net of “It’s a unique brand” and “It somewhat stands out from others”), December 2017 – February 2020
Unique attributes create differentiation
Figure 43: Doritos Stax launches, 2020
Provenance will become a bigger driver of behaviour
Figure 44: Examples of launches in the food sector with provenance claims, 2019-20
BRAND PERSONALITY TRAITS – WHAT YOU NEED TO KNOW
Push innovation as the domain of established brands
Focus on value not price
Quality is not necessarily based on indulgence
Sweet treat brands are considered delicious
INNOVATION
Push innovation as the domain of established brands
Figure 45: Top ten brands in the food sector by agreement with “A brand that is innovative”, December 2017 – February 2020
Ben &amp; Jerry’s is an innovation leader
Figure 46: Examples of launches from Ben & Jerry’s, 2019-20
Established bands can partner with other well-known names
Innovate to widen consumer base
Figure 47: Oatly! Vanilla Ice Cream, 2020
VALUE
Value not necessarily price-dependent
Figure 48: Top ten brands in the food sector by agreement with “A brand that offers good value”, December 2017 – February 2020
Aldi’s own-label performs impressively
Figure 49: Examples of launches from Aldi Specially Selected, 2019-20
Focus on value not price
Heritage
Authenticity
Innovation
Ethicality
PREMIUM
Quality not necessarily based on indulgence…
Figure 50: Top ten brands in the food sector by agreement with “A brand that is consistently high quality”, December 2017 – February 2020
…but luxury does assist in worth paying more
Figure 51: Top ten brands in the food sector by agreement with “A brand that is worth paying more for”, December 2017 – February 2020
Affordable luxury in a post-COVID-19 world
Figure 52: Examples of product launches from brands associated with “Worth paying more for”, 2019-20
Brands expanding with upmarket versions
Figure 53: Ritz Baked Bites launches, October 2019
TASTE
Sweet treat brands are considered delicious
Figure 54: Top ten brands in the food sector by association with “delicious”, December 2017 – February 2020
Magnum increases range with no added sugar variant
Figure 55: Examples of Magnum launches, 2019-20
HOT TOPICS IN FOOD – WHAT YOU NEED TO KNOW
Talking about ingredients can aid natural positioning
Brands with a healthier profile set to benefit from COVID-19
Indulgence and taste are closely linked
Nostalgia contributes towards comfort
Environmental issues have not gone away
NATURAL
Talking about ingredients can aid natural positioning
Figure 56: Top ten brands in the food sector by association with “Natural”, December 2017 – February 2020
Figure 57: Examples of launches from leading brands associated with “Natural”, 2019-20
Yeo Valley brand name moves into cheese
Figure 58: Yeo Valley Organic Mature Cheddar, 2020
HEALTH AND WELLNESS
Brands with a healthier profile set to benefit from COVID-19
Figure 59: Top ten brands in the food sector by agreement with “A brand that cares about my health/wellbeing”, December 2017 – February 2020
Heritage in health will count going forwards
Figure 60: Examples of launches from leading brands associated with “Cares about health/wellbeing”, 2019-20
Healthiness to feel good mentally
Figure 61: Top ten brands in the food sector by association with “Healthy”, December 2017 – February 2020
Older groups to look for help with changing their life  
Figure 62: Examples of launches from leading brands associated with “Healthy”, 2019-20
INDULGENCE AND COMFORT
Indulgence and taste are closely linked
Figure 63: Top ten brands in the food sector by association with “Indulgent”, December 2017 – February 2020
Figure 64: Muller Bliss Mascarpone Style Yogurts, 2019
Galaxy launches vegan variant
Figure 65: Galaxy Vegan launches, 2019
Nostalgia contributes towards comfort
Figure 66: Top ten brands in the food sector by association with “Comforting”, December 2017 – February 2020
Consumers will respond to nostalgia that speaks to better times
Figure 67: Cadbury Wispa relaunch, 2007
Figure 68: Seabrook 75th anniversary Fish and Chips flavour crisps, April 2020
Align relaxation and comfort 
Figure 69: Quaker Oats Instagram sponsored Instagram story, May 2020
Figure 70: Mr Kipling home baking kit launches, 2019
ETHICS
Environmental issues have not gone away
Figure 71: Top ten brands in the food sector by association with “Ethical”, December 2017 – February 2020
Quorn maintains focus on the environment during COVID-19
Bakery brands use waste to promote environment
Halo Top as inspiration to others
Figure 72: Examples of product launches from leading brands on ethics, 2019-20
Brands look to packaging to make a difference
Figure 73: Biggest increase in share of claims on new product launches in the food sector, June 2016 – May 2020
Figure 74: Most important attributes of food packaging, February 2020
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations