Recessionary Strategies for Food and Drinks Companies: The impact on NPD, price architecture and future developments

Published by: Business Insights

Published: Oct. 1, 2009 - 98 Pages

Table of Contents

Recessionary Strategies for Food and Drinks Companies

Executive summary

The recession and spending on grocery

The impact of the recession on grocery sectors

Recession and grocery retail

Chapter 1 Macroeconomic analysis

Summary

Introduction

Developed economies in recession

The cost of food and drinks

Chapter 2 Resilience, vulnerability and

trading down

Summary

Introduction

Immediate impact of the recession

Short-term movement in grocery markets

Resilient sectors of the market

Premium and ethical products

The impact of trading down

Impact on market structure

Case study- Bonduelle

Movement to home consumption

Taking more meals at home

Entertaining at home

Preparation of food for out-of-home consumption

iv

Chapter 3 Recession and the grocery retail

sector

Summary

Introduction

Grocery retail and the recession

Growth in value retail and discounters

Dynamics of price-driven discount food retail

Building standardized ranges

Targeting high growth segments

Adapting products to suit local tastes

General trading down in grocery retail

Premium private label offering

Ongoing development of lowest price private label

Upmarket retailers develop value ranges

Growth of private label

Chapter 4 Innovation and NPD

Summary

Introduction

Price and value strategies

Targeting budget-conscious consumers

Focusing on costs and pricing

Packaging modification

Targeting in-home consumption

Meal occasions out of the home

Displacement of demand

Products and ingredients for home cooking

Home entertainment and treats

Products for out-of-home consumption

Chapter 5 Outlook and future

developments

Summary

Introduction

Outlook scenarios for developed economies

Consumer trends over the next 5 years

The evolution of NPD

List of Figures

Figure 1.1: Quarterly real GDP growth in Europe, the US and Japan (%), 2008-Q2 2009

Figure 1.2: Economic Sentiment Index, Europe, 2004-2009

Figure 1.3: Unemployment rates in Europe, the US and Japan, % of adults, September 2008-June 2009

Figure 2.4: Rating of resilience to the downturn of different product categories

Figure 2.5: Recessionary impact on market structure

Figure 2.6: Sectors gaining from trading down

Figure 3.7: Retail strategies for recession in the UK

Figure 3.8: Growth in discounter share of European grocery market value, 2003-08

Figure 3.9: Innovative private label offerings

Figure 3.10: Trading down in a recession

Figure 3.11: Grocery private label share (%,value), Europe, May 2009e

Figure 4.12: Balancing experience with value

Figure 4.13: Importance of downturn-related consumer trends on grocery

Figure 4.14: Rating of importance of strategies targeting budget-conscious consumers

Figure 4.15: Rating of options for cutting costs and developing lower price products

Figure 4.16: Expectations of changes in marketing and NPD expenditure during recession

Figure 4.17: Innovation in packaging

Figure 4.18: Out-of-home share of total meal occasions (% of annual occasions), Europe and US, 2008

Figure 4.19: Meals for out-of-home consumption

Figure 5.20: Rating of importance of consumer trends over next five years

Figure 5.21: Rating of impact of downturn on NPD by region

Figure 5.22: Key positionings by year for all food and drinks products (% share of launches), 2007- 2009

List of Tables

Table 1.1: Quarterly real GDP growth in Europe, the US and Japan, 2008-Q2 2009

Table 1.2: Unemployment rates in Europe, the US and Japan, % of adults, September 2008-June 2009

Table 1.3: Monthly changes in food prices, EU economies (%), August 2008-July 2009

Table 3.4: Growth in discounter share of European grocery market value, 2003-08

Table 4.5: Out-of-home meal occasions, Europe and US (occasions bn), 2003-2008

Table 5.6: Impact of outlook scenarios for developed economies on grocery sector

Abstract

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