Own-label Food and Drink - UK

Published by: Mintel International Group Ltd.

Published: Oct. 1, 2006 - 127 Pages

Table of Contents

ISSUES IN THE MARKET

Definition

ABBREVIATIONS

MARKET IN BRIEF

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

INTERNAL MARKET ENVIRONMENT

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?

Figure 1: Attitudes towards premium supermarket own-label ranges, May 2006

BROADER MARKET ENVIRONMENT

Higher PDI drives consumers towards premium

Figure 2: Attitudes towards quality, by country, 2005

Inflation keeps spend on in-home food and drink in check

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

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

MARKET VALUE AND FORECAST

More money per household, less spent on food

Figure 4: 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

Figure 5: Estimated retail sales of own-label packaged and fresh commodity foods, by value, 2001-06

Own-label benefits from growth in fresh

SEGMENT PERFORMANCE

Brands are fighting back via premium

A strong performance in chilled

Figure 6: Estimated retail sales of own-label chilled foods, by value, 2001-06

Figure 7: 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

Figure 8: Estimated retail sales of own-label ambient foods, 2001-06

Figure 9: 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?

Figure 10: Estimated retail sales of own-label frozen foods, by value, 2001-06

Figure 11: 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

Figure 12: 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

Figure 13: 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

Own-label to brand ratio

Sacrificing profit for volume?

Premium lines showing growth

Basic assumptions on own-label

Figure 14: 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

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

Overall spend

Tesco

Discounters

Focus on fresh and healthy

Figure 15: Main monitored media advertising expenditure on own-label food and drink, by major supermarkets, 2001-06

Figure 16: Main monitored media advertising expenditure on healthy ranges, by major supermarkets, 2001- 06

CHANNELS TO MARKET

Figure 17: Source of main grocery shopping, UK, 1998-2005

The battle for primary shoppers

Figure 18: Primary shoppers as percentage of all shoppers, 1998-2005

THE CONSUMER - RELEVANCE OF SUB-BRANDS

Overall findings

Importance of sub-brands

Figure 19: Importance of own-label ranges to shoppers, May 2006

Popularity of core brands; value, standard and premium

Figure 20: Importance of value, standard and premium ranges to shoppers, according to percentage point above/below average, May 2006

Ethical values

Figure 21: 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?

Figure 22: 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?

Figure 23: Importance of own-label ranges to shoppers, compared to average, by gender, age and socioeconomic group, May 2006

THE CONSUMER - SUB-BRAND POSITIONING

Overall findings

Own-label ranges bought by shoppers

Figure 24: Importance of own-label ranges to Tesco shoppers, according to percentage point above/below average, May 2006

Figure 25: Importance of own-label ranges to Sainsbury’s shoppers according to percentage point above/below average, May 2006

Figure 26: Importance of own-label ranges to Asda shoppers, according to percentage point above/below average, May 2006

Figure 27: Importance of own-label ranges to Marks & Spencer shoppers, according to percentage point above/below average, May 2006

Figure 28: Importance of own-label ranges to shoppers, according to percentage point above/below average, May 2006

APPENDIX

INTRODUCTION

Consumer research

ACORN

Advertising data

Internal market environment

Attitudes towards cheapest-on-display products

Figure 29: COD purchasing behaviour and attitudes towards quality, May 2006

Figure 30: Purchasing of, and attitudes towards, own-label economy food ranges, May 2006

Broader market environment

Figure 31: PDI and consumer expenditure, at current and constant prices, 2001-2011

Figure 32: UK retail sales of fruit and vegetables, 2000-05

Who’s innovating?

Figure 33: Number of new own-label products by category, by top ten retailers, September 2005-06

Market value and forecast

Figure 34: Estimated retail sales of own-label packaged foods, by value, 2001-06

Figure 35: Estimated retail sales of own-label commodity fresh foods, by value, 2001-06

Figure 36: Estimated UK retail sales of own-label foods, by value, by sector, 2005

Manufacturer shares

Figure 37: Estimated retail sales of own-label packaged and fresh commodity foods, by value, 2001-06

Figure 38: Estimated UK retail sales of own-label foods, by value, by sector, 2001-05

Chilled ready meals

Figure 39: UK retail share of chilled ready meals, by retailer, 2001-05

Chilled pasta

Figure 40: Leading brand value shares in the chilled pasta market, 2002-04

Dry pasta

Figure 41: Leading brand value shares in the dry pasta market, 2002-04

Chilled pot desserts

Figure 42: Manufacturer shares of the chilled pot desserts market, 2001-05

Chilled pizza

Figure 43: Manufacturer/brand shares of the prepacked chilled pizza market, 2000, 2002 and 2004

Frozen pizza

Figure 44: Manufacturer/brand shares of the frozen pizza market, 2000, 2002 and 2004

Yogurt and yogurt drinks

Figure 45: Manufacturers’ value shares in the UK yogurt and yogurt drink market (retail sales), 2001-05

Dried fruit

Figure 46: Manufacturers’ value shares in the dried fruits market, by brand, 2001-05

Bread

Figure 47: Brand shares of plant bread, by value, 2002 and 2004

Chocolate confectionery

Figure 48: Manufacturers’ value shares in the UK chocolate market (retail sales), 2001-05

Sweet biscuits

Figure 49: Manufacturers' branded shares of the UK retail sweet biscuit market, 2001-05

Frozen ready meals

Figure 50: Manufacturers’ share of the UK frozen ready meal market, by value, 2001-05

Frozen desserts

Figure 51: Manufacturers’ branded shares in the frozen desserts market, 2001-05

Coffee

Figure 52: Market share of instant coffee, by producer, by value, 2003 and 2005

Figure 53: Market share of ground coffee, by producer, by value, 2003 and 2005

Tea

Figure 54: Market share of tea, by producer, by value, 2002 and 2004

Smoothies

Figure 55: Brand manufacturers’ share of the smoothies market, 2001-06

Wine

Figure 56: UK leading wine brands, by volume and value, 2004

Figure 57: Estimated brand shares in the total champagne market, by value, 2001-05

Figure 58: Estimated brand shares in the UK sparkling wine market, by volume, off-trade, 2001-05

Whisky

Figure 59: Selected UK whisky brands, by volume and value, 2005

Figure 60: UK brandy brand shares, by value, 2000-04

Figure 61: UK vodka brand shares, by value, 2000-04

Figure 62: UK gin brand shares, by value, 2000-04

Channels to market

Figure 63: Food and drink retailers’ sales, 2002-05

Consumer 1 - Detailed demographics

Figure 64: 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 65: 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

Figure 66: 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 67: 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

Figure 68: 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 69: Reasons why you choose own-label over brands, May 2006

Reasons why you choose brands over own-label

Figure 70: 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 71: 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

Figure 72: 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 73: Netted reasons why you choose brands over own-label, by supermarket usage, May 2006

Figure 74: Netted reasons why you choose brands over own-label, by type of sub-brand, May 2006

Correlation analysis

Figure 75: Correlation of own-label sub-brands by retailer, May 2006

Figure 76: Correlation of own-label sub-brands by retailer, May 2006

Cross-analyses

Figure 77: Cross-analysis of own-label ranges by reasons why you choose own-label over brands, May 2006

Figure 78: Cross-analysis of own-label ranges by reasons why you choose brands over own-label, May 2006

Figure 79: Cross-analysis of own-label ranges by reasons why you choose brands over own-label, May 2006

Figure 80: Cross-analysis of own-label ranges by reasons why you choose brands over own-label, May 2006

Premium foods

Figure 81: Foods consumers would consider paying a higher price for, May 2006

APPENDIX: RESEARCH METHODOLOGY

Abstract

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 160,000 market research reports, company profiles and country profiles from over 600 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.