Fruit - US - February 2009

SCOPE AND THEMES
What you need to know
Definition
Data sources and methodology
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Fruit market reached $28.8 billion in 2008
All segments are growing
Dole and Del Monte lead FDMx market, but private label is stealing share
Shifting retail environment
New organic, enhanced and on-the-go products
Fruit consumption
Attitudes and motivations
Demographic influence
INSIGHTS AND OPPORTUNITIES
Need to reinforce fruit’s health benefits
Encourage consumers to incorporate fruit into meals
Snacking enhancement and vending
Women are a ripe target
Increase usage among lower-income consumers
INSPIRE INSIGHTS
 AN INCONVENIENT FRUIT
What's it about?
What we've seen
Specifics
Implications
 THE NEXT SUPERFRUIT—BAOBAB?
God's thumb
Supercharged Vitamin C
A star is born
MARKET SIZE AND FORECAST
Key points
Performance strong across all segments
Opportunity to increase usage frequency
Sales and forecast of fruit
Figure 1: Total U.S. retail sales of fruit, at current prices, 2003-13
Figure 2: Total U.S. retail sales of fruit, at inflation-adjusted prices, 2003-13
Wal-Mart sales
COMPETITIVE CONTEXT
Key points
Fruit competes primarily against other healthy snacks
Figure 3: Foods eaten as healthy snacks, December 2007
Public health programs raise awareness of fruit’s role in a healthy diet
Economic downturn, rising fruit prices threaten to stall growth…
Figure 4: Average retail price/lb. for select fruit segments in FDMx, 2005-08
Figure 5: U.S. city average annual consumer price index for select fruits, 2005-08
…but give boost to sales of private-label fruit products
Figure 6: Prices for brand and private-label fruit products, Chicago market January 2009
Market dependent on weather, labor availability and fuel prices
“Locavore” movement will impact retail distribution and imported fruit sales
Figure 7: Number of operating farmers’ markets, 1994-2008
SEGMENT PERFORMANCE
Key points
All segments benefit from healthy eating trend and product innovation
Figure 8: U.S. sales of fruit, by segment, 2006 and 2008
Supermarket sales of fresh fruit, by type
Figure 9: U.S. supermarket sales of fresh fruit, by segment, 2007 and 2008
SEGMENT PERFORMANCE—FRESH FRUIT
Key points
Healthy eating trend good for fruit market
New varieties and on-the-go packaging are driving growth
Fresh fruit sales and forecast
Figure 10: U.S. sales and forecast of fresh fruit, at current prices, 2003-13
Figure 11: U.S. sales and forecast of fresh fruit, at inflation-adjusted prices, 2003-13
SEGMENT PERFORMANCE—CANNED/BOTTLED FRUIT
Key points
More than just canned peaches
Private-label sales booming
Canned/bottled fruit sales and forecast
Figure 12: U.S. sales and forecast of canned/bottled fruit, at current prices, 2003-13
Figure 13: U.S. sales and forecast of canned/bottled fruit, at inflation-adjusted prices, 2003-13
SEGMENT PERFORMANCE—DRIED FRUIT
Key points
Cranberries, blueberries and goji berries, oh my!
Private label definitely not dried up
Dried fruit sales and forecast
Figure 14: U.S. sales and forecast of dried fruit, at current prices, 2003-13
Figure 15: U.S. sales and forecast of dried fruit, at inflation-adjusted prices, 2003-13
SEGMENT PERFORMANCE—FROZEN FRUIT
Key points
Potential to be more than a commodity
Frozen fruit sales and forecast
Figure 16: U.S. sales and forecast of frozen fruit, at current prices, 2003-13
Figure 17: U.S. sales and forecast of frozen fruit, at inflation-adjusted prices, 2003-13
RETAIL CHANNELS
Key points
Consumers shop for fruit in a variety of channels
Figure 18: Fruit purchase locations, main source and secondary sources, November 2008
Supermarkets up the ante to compete with mass merchandisers
Figure 19: U.S. sales of fruit, by retail channel, 2006 and 2008
RETAIL CHANNELS—FOOD STORES
Key points
Improved fresh departments drive fruit sales
Figure 20: U.S. sales of fruit at food stores, 2003-08
RETAIL CHANNELS—WAREHOUSE CLUBS, SUPERCENTERS AND DISCOUNT DEPARTMENT STORES
Key points
Mass merchandisers benefit from ailing economy
Figure 21: U.S. sales of fruit at warehouse clubs, supercenters, discount dept. stores, 2003-08
NATURAL CHANNEL/SPINS
Sales of fruit in the natural channel
Figure 22: Natural product supermarket retail sales of fruit, at current prices, 2006-08
Figure 23: Natural product supermarket retail sales of fruit, at inflation-adjusted prices, 2006-08
Implications
Natural channel sales by segment
Figure 24: Natural product supermarket retail sales of fruit, by segment, 2006 and 2008
Natural channel sales of fruit, organic vs. conventional
Figure 25: Natural product supermarket retail sales of fruit, by organic/conventional, 2006 and 2008
Figure 26: Natural product supermarket retail sales of organic fruit, by segment, 2008
MARKET DRIVERS
Americans are eating healthier…
Figure 27: Factors that influence grocery shoppers’ purchase decisions “a lot,” 2006
…and eating more meals at home
Figure 28: Spending at restaurants compared to last year, by age, January 2008
Baby Boomers to drive growth through growth in numbers
Figure 29: Population aged 21 or older, by age, 2003-13
Increase in Asian and Hispanic populations will also drive growth
Figure 30: Population, by race and Hispanic origin, 2003-13
Figure 31: Use of fruits in last month, by race and Hispanic origin, November 2008
Figure 32: Percentage of adults aged 18+ who consumed fruit/vegetables two or more times per day, by selected demographics, 2005
LEADING COMPANIES
Key points
Dole Foods
Del Monte Foods
General Mills
Cadbury PLC
Sun-Maid Growers
Private label outperforms all leading brand names
Manufacturer sales
Figure 33: FDMx packaged fruit sales of leading fruit companies, 2007 and 2008
SELECTED BRAND ANALYSIS—CANNED/BOTTLED FRUIT
Key points
Del Monte and Dole lead the market, but struggle to maintain share
Private label outperforms the segment
Manufacturer and brand sales
Figure 34: FDMx brand sales of canned/bottled fruit in the U.S., 2007 and 2008
SELECTED BRAND ANALYSIS—DRIED FRUIT
Key points
Sun-Maid leads dried fruit segment
Private label outperforms the segment
Figure 35: Selected FDMx brand sales of dried fruit in the U.S., 2007 and 2008
SELECTED BRAND ANALYSIS—DRIED FRUIT SNACKS
Key points
Betty Crocker and Kellogg’s dominate the market with kid-focused products…
…but private label is proving kids like it too
Figure 36: Selected FDMx brand sales of dried fruit snacks in the U.S., 2007 and 2008
SELECTED BRAND ANALYSIS—FROZEN FRUIT
Key points
Private label dominates frozen segment, but Dole makes inroads
Figure 37: Selected FDMx brand sales of frozen fruit in the U.S., 2007 and 2008
BRAND QUALITIES
Sun-Maid
Dole
INNOVATION AND INNOVATORS
Key points
Organic and natural
Value added
On-the-go packaging
Private label
Kid-friendly
Figure 38: New product claims for fruit products, 2007 and 2008
ADVERTISING AND PROMOTION
 OVERVIEW
National health programs boost awareness
Figure 39: “In the family dinner” tip sheet, 2008
Figure 40: The Cancer project magazine ad, 2009
Industry associations play lead role in advertising
Figure 41: Chilean fruit farmers television ad, 2008
Figure 42: California Avocado Commission television ad, 2008
Figure 43: Florida Strawberry Growers Association television ad, 2007
Figure 44: California Raisin Marketing Board and Florida Dept. of Citrus magazine ads, 2008-09
Brand advertising focused on print vehicles
Figure 45: Sunkist Premium Sweet fruit cups television ad, 2007
Figure 46: Sun-Maid magazine ad, 2008
Figure 47: Select fruit freestanding inserts, 2008
FRUIT USAGE
Key points
Fruit consumption
Figure 48: Incidence of fruit consumption, ever eat and eaten in past month, November 2008
Preparation methods
Figure 49: Way in which fruit is eaten, by type of fruit, by meal part, November 2008
Eating occasions
Figure 50: Meals at which fruit is eaten, by type of fruit, November 2008
Forms of fruit eaten
Figure 51: Forms of fruit eaten, by type of fruit, November 2008
PURCHASE HABITS
Key points
Where consumers shop for fruit
Figure 52: Fruit purchase locations, main source and secondary source, November 2008
Shopping trends
Figure 53: Buying more or less fruit than last year from each type of store, by store type, November 2008
ATTITUDES AND MOTIVATIONS
Key points
Attitudes toward fruit by gender
Figure 54: General attitudes towards fruit and fruit buying, by gender, November 2008
Attitudes toward fruit by income
Figure 55: General attitudes towards fruit and fruit buying, by household income, November 2008
Attitudes toward fruit by presence of children
Figure 56: General attitudes towards fruit and fruit buying, by presence of children in household, November 2008
RACE AND HISPANIC ORIGIN
Past-month fruit consumption, by race and Hispanic origin
Figure 57: Incidence of fruit consumption in past month, by race and Hispanic origin, November 2008
Attitudes toward fruit by race and Hispanic origin
Figure 58: General attitudes towards fruit and fruit buying, by race/Hispanic origin, November 2008
CLUSTER ANALYSIS
Fruit Bats
Who they are
Opportunity
Fruit Fans
Who they are
Opportunity
Fruit Friends
Who they are
Opportunity
Cluster characteristics
Figure 59: Fruit clusters, November 2008
Figure 60: Incidence of fruit consumption in past month, by fruit clusters, November 2008
Figure 61: Way in which fruit is eaten, by meal part, by fruit clusters, November 2008
Figure 62: Meals at which fruit is eaten, by meal, by fruit clusters, November 2008
Figure 63: Forms of fruit eaten, by form/packaging, by fruit clusters, November 2008
Figure 64: Fruit purchase locations, main source, by fruit clusters, November 2008
Figure 65: General attitudes towards fruit and fruit buying, by fruit clusters, November 2008
Cluster demographics
Figure 66: Fruit clusters, by gender, November 2008
Figure 67: Fruit clusters, by age, November 2008
Figure 68: Fruit clusters, by household income, November 2008
Figure 69: Fruit clusters, by race, November 2008
Figure 70: Fruit clusters, by Hispanic origin, November 2008
Cluster methodology
CUSTOM CONSUMER GROUPS
Figure 71: Incidence of fruit consumption in past month, by presence of children and marital status, November 2008
Figure 72: Incidence of fruit consumption in past month, age and gender, November 2008
Figure 73: Main source of fruit, by gender, presence of children and marital status, November 2008
Figure 74: Main source of fruit, by age and gender, November 2008
Figure 75: General attitudes towards fruit and fruit buying, by gender and presence of children, November 2008
Figure 76: General attitudes towards fruit and fruit buying, by marital status and presence of children, November 2008
Figure 77: General attitudes towards fruit and fruit buying, by age and gender, November 2008
IRI/BUILDERS—KEY HOUSEHOLD PURCHASE MEASURES—CANNED/BOTTLED FRUIT
 OVERVIEW OF CANNED/BOTTLED FRUIT
 CANNED/BOTTLED PINEAPPLE
Consumer insights on key purchase measures—canned/bottled pineapple
Brand map
Figure 78: Brand map, selected brands of canned/bottled pineapple, buying rate by household penetration, 2008*
Brand leader characteristics
Key purchase measures
Figure 79: Key purchase measures for the top brands of canned/bottled pineapple, by household penetration, 2008*
 APPLESAUCE/FRUIT SAUCE
Consumer insights on key purchase measures—applesauce/fruit sauce
Brand map
Figure 80: Brand map, selected brands of applesauce/fruit sauce, buying rate by household penetration, 2008*
Brand leader characteristics
Key purchase measures
Figure 81: Key purchase measures for the top brands of applesauce/fruit sauce, by household penetration, 2008*
 CANNED/BOTTLED PEACHES
Consumer insights on key purchase measures—canned/bottled peaches
Brand map
Figure 82: Brand map, selected brands of canned/bottled peaches, buying rate by household penetration, 2008*
Brand leader characteristics
Key purchase measures
Figure 83: Key purchase measures for the canned/bottled peaches, by household penetration, 2008*
 CANNED/BOTTLED MIXED FRUIT
Consumer insights on key purchase measures—canned/bottled mixed fruit
Brand map
Figure 84: Brand map, selected brands of canned/bottled mixed fruit, buying rate by household penetration, 2008*
Brand leader characteristics
Key purchase measures
Figure 85: Key purchase measures for the top brands of canned/bottled mixed fruit, by household penetration, 2008*
 CANNED/BOTTLED CITRUS FRUIT
Consumer insights on key purchase measures—canned/bottled citrus fruit
Brand map
Figure 86: Brand map, selected brands of canned/bottled citrus fruit, buying rate by household penetration, 2008*
Brand leader characteristics
Key purchase measures
Figure 87: Key purchase measures for the top brands of canned/bottled citrus fruit, by household penetration, 2008*
 CRANBERRY SAUCE
Consumer insights on key purchase measures—cranberry sauce
Brand map
Figure 88: Brand map, selected brands of cranberry sauce, buying rate by household penetration, 2008*
Brand leader characteristics
Key purchase measures
Figure 89: Key purchase measures for the top brands of cranberry sauce, by household penetration, 2008*
 CANNED/BOTTLED PEARS
Consumer insights on key purchase measures—canned/bottled pears
Brand map
Figure 90: Brand map, selected brands of canned/bottled pears, buying rate by household penetration, 2008*
Brand leader characteristics
Key purchase measures
Figure 91: Key purchase measures for the top brands of canned/bottled pears, by household penetration, 2008*
IRI/BUILDERS—KEY HOUSEHOLD PURCHASE MEASURES—DRIED FRUIT
 OVERVIEW OF DRIED FRUIT
 RAISINS
Consumer insights on key purchase measures—raisins
Brand map
Figure 92: Brand map, selected brands of raisins, buying rate by household penetration, 2008*
Brand leader characteristics
Key purchase measures
Figure 93: Key purchase measures for the top brands of raisins, by household penetration, 2008*
 DRIED CRANBERRIES
Consumer insights on key purchase measures—dried cranberries
Brand map
Figure 94: Brand map, selected brands of dried cranberries, buying rate by household penetration, 2008*
Brand leader characteristics
Key purchase measures
Figure 95: Key purchase measures for the top brands of applesauce/fruit sauce, by household penetration, 2008*
 DRIED PLUMS
Consumer insights on key purchase measures—dried plums
Brand map
Figure 96: Brand map, selected brands of dried plums, buying rate by household penetration, 2008*
Brand leader characteristics
Key purchase measures
Figure 97: Key purchase measures for dried plums, by household penetration, 2008*
IRI/BUILDERS—KEY HOUSEHOLD PURCHASE MEASURES—FROZEN FRUIT
Consumer insights on key purchase measures—frozen fruit
Brand map
Figure 98: Brand map, selected brands of frozen fruit, buying rate by household penetration, 2008*
Brand leader characteristics
Key purchase measures
Figure 99: Key purchase measures for the top brands of frozen fruit, by household penetration, 2008*
IRI/BUILDERS—KEY HOUSEHOLD PURCHASE MEASURES—FRUIT ROLLS/BARS/SNACKS
Consumer insights on key purchase measures—fruit rolls/bars/snacks
Brand map
Figure 100: Brand map, selected brands of fruit rolls/bars/snacks/bars, buying rate by household penetration, 2008*
Brand leader characteristics
Key purchase measures
Figure 101: Key purchase measures for the top brands of fruit rolls/bars/snacks/bars, by household penetration, 2008*
APPENDIX – OTHER USEFUL CONSUMER TABLES
Past-month fruit consumption, by income
Figure 102: Incidence of fruit consumption in past month, by household income, November 2008
Eating occasions by age
Figure 103: Way in which fruit is eaten, by meal part, by age, November 2008
Fruit for breakfast—cooked vs. uncooked
Figure 104: Top fruits eaten at breakfast, cooked vs. uncooked, November 2008
Figure 105: Top fruits eaten for maincourse/appetizer at lunch/dinner, cooked vs. uncooked, November 2008
Figure 106: Top fruits eaten for dessert at lunch/dinner, cooked vs. uncooked, November 2008
Top fruits by meal occasion
Figure 107: Top fruits, by meal occasion, November 2008
Meals at which fruit is eaten by age
Figure 108: Way in which fruit is eaten, by meal, by age, November 2008
Forms of fruit eaten
Figure 109: Top fruits eaten, by each form: canned, fresh, frozen, dried, November 2008
Figure 110: Way in which fruit is eaten, by canned, fresh, frozen, by age, November 2008
Where consumers shop for fruit, by household income
Figure 111: Main source of fruit, by household income, November 2008
Canned/jarred fruit: Household usage
Figure 112: Use of canned/jarred fruit, by household type, April 2007-June 2008
Canned/jarred fruit: Types used
Figure 113: Use of canned/jarred fruit, by type of fruit, by adults, teens and kids, April 2007-June 2008
Canned/jarred fruit: usage frequency
Figure 114: Frequency of using canned/jarred fruit by adults, teens and kids, April 2007-June 2008
APPENDIX – TRADE ASSOCIATIONS