Free From opportunities

Source: Linda Cullen, Food and Beverage Division, Bord Bia – Irish Food Board - 14/06/2013

    

According to Kantar Worldpanel the value of the ‘free from’ market in the UK is £180m representing year on year growth of 37% for the 52 weeks ending 17th February 2013. One million households in the UK have a gluten allergy or wheat intolerance which is almost 4% of UK households. In Ireland the Coeliac Society of Ireland estimates that 1 in 100 of the Irish population suffer from a gluten allergy. 

          
The ‘free from’ market in the UK is growing 10 times faster than the overall grocery category and this growth is driven by shoppers who are not just gluten or wheat intolerant but choose to purchase free from products to improve their general health and wellbeing. Health is important to non sufferers and a likely driver to purchasing gluten free. A healthy product will therefore appeal to this group and it important that free from products are easily accessible and not limited to the Gluten Free aisle of
the store. 

       
Chilled foods and bread are the largest sectors in the free from category with Gluten Free Bagels, Biscuits, Pizza, Pasta and Ready Meals representing opportunities for manufacturers.


The ready meal offering is limited for gluten free, yet it is a fast growing sector in the total market. Gluten Free Meal Solutions and Pizza have grown by 100% over the twelve months to February 2013.
Brands dominate the market and have done so for the past five years with 69% of the market. Brands still attract more shoppers increasing over the twelve month period by 44% (£30m), whilst private label relies on existing shoppers for growth (£17m). 
    
The top selling gluten free private label ranges are Tesco Free From (£17.9m), Sainsbury’s Free From (£10.7m), Aldi (£5.5m), Asda Free From (£3.9m) and Your M&S (£3.5m). Some 49% of all gluten free buyers are new to the category with 97% of these new shoppers indicating that they are not sufferers but are choosing ‘free from’ foods for health reasons.




 

 

Convenience Facts

The top up "mission" is the most important reason for visiting a convenience store

88% of UK adults top up shop at least once a week. The UK top up mission is worth nearly £38 billion which is comparable to the size of the total UK convenience market.

 

We know convenience shoppers want to save money and time, we know that technology is important and we know local products and trust matter

 

 

 

 

Regular smart phone users spend an average of 22 hours a week on the internet, this presents a huge opportunity to connect through social and digital media. 

 

 

Mum's are one of the most important shoppers to discounters

 

 

 

 

 

Source: Him! 14/06/2013

Packaging innovation trends alert

 

The latest packaging innovations for 2013 identifies the latest beverage brands that are using both functional and sustainable packaging formats.

 

Zero calorie cola debuts new package for caffeine-free versionThis summer, when Coke Zero fans want to pop the top on their favourite beverage, they no longer need to consult the hands of the clock. The brand is now being made available in an option without caffeine as consumers become more aware of the ingredients within their products and the effects that these may have. The launch of Caffeine Free Coke Zero is part of a broader strategy designed to make the fast-growing brand even more ubiquitous and available to consumers at any time throughout the day. Caffeine Free Coke Zero will begin appearing on shelves in US supermarkets, from mid-July. It will be packaged in 12-packs of 12-ounce cans and 2-litre bottles.

 

 

Miller Lite reinvents “Miller Time” with new bottleThe new Miller Lite bottle is upgrading the US light beer category. The sleek design provides an innovative, contoured shape that is a modern interpretation of the brand’s legendary long neck. The new bottle will only be available in bars and restaurants this summer. Inspired by form and design, the modern look of the new bottle offers broad shoulders and a contoured grip, intended for easy handling from the bar to the pool table. The bottle defies the convention of the standard cylinder-shaped bottle, helping Miller Lite stand out among the standard brown bottle of other light beers.

Novelis launches world's first recycled content certification programNovelis announced the commercial availability of the industry's first independently certified, high-recycled content aluminium, designed specifically for the beverage can market. With a minimum of 90 percent recycled aluminium, the Novelis evercan aluminium beverage can body sheet will allow beverage companies to deliver soft drinks, beer and other popular beverages in a low-carbon footprint consumer package.



Ready-to-snack olives debut in single-serve cupMusco Family Olive Co., the leading branded retail supplier of table olives in America, has introduced a new snacking product in the olive category. Pearls Olives to Go! are no-mess, easy-to-open, single-serving cups filled with California-grown, large pitted black ripe olives. This consumer-friendly, breakthrough packaging aims to transform shopper attitudes toward olives, turning them from an occasional condiment into a lunchbox and snacking essential. Each package of PearlsOlives to Go! contains four 1.2 ounce cups (similar to fruit snack cups but without the liquid mess). An individual olive cup holds ten large olives –one for each finger. Containing just 40 calories, the cups are ideally portion-controlled for kids and adults and are always fresh, delicious and snack-ready.


Casserole pack makes a traditional impression RPC Barrier Containers has developed a long shelf life ambient packaging solution for a range of ready meals produced by French foodservice specialist Soulié Restauration. The 600ml oval tubs are thermoformed in multilayer polypropylene with matching lids. The barrier pack provides a shelf life of up to 18 months for the ready-to-heat typical French recipes. The custom-designed tub and lid have been created to resemble a traditional casserole pot and are coloured red or yellow depending on the product.


Source: Bord Bias, Tom Collins, Insight & Innovation Analyst, Bord Bia – Irish Food Board

Article Date: 07/06/2013

Ugo Foods Introduces First Chilled Gluten-Free Pasta

Ugo Foods has launched the first range of gluten-free fresh pasta in the UK, with the introduction of its chilled tagliatelle and penne products. Both pasta lines are made from maize and rice with the only additional ingredient of water. The products are presented in 300g bags that serve two with generous portions. The penne is now available at Waitrose and later at Ocado (RRP of £1.79), and is on offer till 30th June for 99p. The fresh tagliatelle will be available shortly afterwards. The gluten-free market is growing faster than nearly any other food category and is now worth more than £125m, with the UK leading innovation in the gluten-free category across Europe. Ugo Foods noted: “We are delighted to be bringing to market a fresh gluten free pasta that tastes like pasta. No more falling apart, sticking together or compromise”. NamNews - Monday 10th June 2013

90% of consumers now using coupons to save money

New research by voucher services provider Valassis has revealed the growing consumer appetite for promotional offers, with 90% of UK consumers stating that they used money-saving coupons. As a result, the research showed shoppers save on average £5.70 each per month, amounting to £2.3bn a year. The rising cost of living (24%) and higher food costs (2%) were cited as the main reasons for seeking out promotional offers, according to the survey of more than 1,000 UK adults. Valassis Managing Director Charles D’Oyly said: “While consumers are still finding the financial climate tough, nearly all of them are doing their best to fight back by making the most of coupons and the savings they can bring. “The amount of money that shoppers can save by redeeming coupons can really add up – £2.3bn a year is an enormous total, the equivalent to the amount the UK spends each year on online groceries. “Consumers are more and more money off motivated, with tracking down coupons increasingly being incorporated into everyday shopping behaviour. Many are planning their shopping destinations according to where the best discounts are available.” NamNews - Monday 10th June 2013

As Tesco's retail crown slips, is history repeating itself?

There was one word in Tesco’s latest trading update that perhaps said more about the challenges facing Britain’s biggest retailer than any number. That word was “flat”.

 

 

Tesco said that group sales including petrol were “flat” at constant exchange rates in the past three months. In the modern history of Tesco, that is unprecedented. Even when like-for-like sales in UK stores started falling a couple of years ago, group sales rose thanks to Tesco opening new supermarkets in the UK, and its overseas business performing well.

 

However, this week’s trading update suggests that Tesco and its chief executive, Philip Clarke, can no longer rely on either of those things. Nine of Tesco’s 11 businesses around the world suffered a decline in like-for-likes sales, including supposed jewels in the crown such as South Korea and Thailand. A 12th business, Fresh & Easy in the US, is being sold because it has failed to make a profit.

Back in the UK, Tesco is opening fewer supermarkets after Clarke called an end to the space race into every UK postcode. This resulted in a writedown of more than £800m on the value of land Tesco holds in the UK, because there will no longer be a supermarket built on it.

After two decades of relentless growth for Tesco, which has established it as the biggest retailer in the UK and one of the biggest in the world, the company's crown appears to be slipping. Retail dynasties in the UK have come to an end before. Indeed, the problems facing Tesco today could prove to be a repeat of the decline of J Sainsbury in the early 1990s, when it lost its position as the market leader and king of food retailing to Tesco.

 

In 1996, Sainsbury’s reported its first fall in profits for 22 years, just as Tesco reported its first fall in two decades earlier this year. The annual report from Sainsbury’s for that year shows striking similarities to the Tesco of 2013. It describes how the company is trying to modernise and improve customer service through its “Customer First” plan. Sainsbury’s said it was investing in refurbishing 97 stores, introducing new own-brand ranges in chilled and frozen food, and hiring 5,000 extra staff at a cost of £30m.

The retailer also said it was introducing new services at its stores to attract customers, such as pharmacies and petrol stations. By this time, Sainsbury’s had already warned that its margins had fallen and announced a slowdown in store openings, which led to a writedown in the value of its land.

David Sainsbury, the chairman and chief executive of Sainsbury’s, said in the annual report: “This is not a satisfactory financial performance, but we have taken decisive action to enhance our competitive position in the future.”

 

 

Tesco, through its “Building a Better Tesco” plan, is now also investing in modernising its stores, hiring extra staff and revamping its own-brand ranges. It has also seen its margins fall from more than 6pc to 5.2pc. Sainsbury’s response in the 1990s failed. It continued to lose market share for years after slipping behind Tesco, eventually falling to third in the UK behind Asda in 2003. It was not until Justin King arrived as chief executive in 2004 – when Sainsbury’s reported its first loss in 135 years – that sales began to recover.

The woes of Sainsbury’s are a warning about how difficult it can be to shift momentum in the retail industry.

Tesco has more than 3,000 hypermarkets, supermarkets and convenience stores in the UK, so it could take years for Clarke to change Tesco stores and shed the perception of some customers that it is a heartless growth machine.

 

The supermarket battle of the 1990s also suggests that retrenchment is not necessarily the best policy.

King has said that Sainsbury’s problems were compounded by holding back on expansion in the 1990s, when Tesco was aggressively buying out-of-town land across the country, giving it a foothold in local areas that it has never relinquished.

A slowing down of Tesco’s store development programme is arguably even more profound, because a key reason for its success under Sir Terry Leahy was the ability of his property team to snap up key sites, develop them successfully into supermarkets, and then raise new funds for expansion through sale-and-lease-back deals.

 

Tesco arguably has no choice but to slow down, because it has reached every corner of the UK and the economy is flatlining. However, other retailers are still expanding. Sainsbury’s says that 22pc of the UK population still does not live within 15 minutes of one of its stores, while Tesco now also faces fierce competition from Waitrose, Aldi and Lidl.

 

Could Tesco’s dominance of the UK market, in which its share is almost double the 16.8pc of Sainsbury’s, just prove to be an anomaly that disappears as rivals catch up with its geographical expansion? After all, are Tesco stores really twice as good as Sainsbury’s?

 

Sainsbury’s is certainly outperforming Tesco at the moment, and has done since the onset of recession in the UK. Next week, the City expects the retailer to report like-for-like growth in the UK of as much as 3.5pc in the past three months, compared with a 1pc drop for Tesco.

 

However, while there may be similarities to Sainsbury’s in the 1990s, Tesco is well placed to retain its retail crown. Firstly, it is much more dominant today than Sainsbury’s was in the 1990s.

 

According to Kantar, Tesco’s market share is 30.2pc, while Sainsbury’s is 16.8pc. Tesco’s UK sales were £43bn last year – a different league to Sainsbury’s £25.6bn. At the peak of its powers in 1992, Sainsbury’s had a market share of just 20.5pc, and Tesco was not far behind at 17.4pc.

 

Sainsbury’s is not eating into Tesco’s lead at any great pace. Over the past year, Sainsbury’s market share, despite its impressive performance, rose just 0.3 percentage points from 16.5pc. Upmarket supermarket Waitrose and discounters Aldi and Lidl are growing market share at a faster pace.

 

Secondly, Tesco looks well placed in the fastest-growing segments of the UK grocery market – convenience stores and the internet. There are already more than 1,930 Tesco convenience stores in the UK, while Tesco’s online sales rose 13pc to more than £3bn last year.

It is bigger than its rivals in both these markets, and investing more. Clarke has said the retailer is to spend $750m (£485m) on technology this year, three times more than in 2010. Tesco even has an app development centre in London’s version of Silicon Valley, Shoreditch.

 

In terms of revamping Tesco stores, Clarke has recognised that the retailer lost touch with its customers and has bitten the bullet. Rather than fiddle around the edges as Sainsbury’s did in the 1990s, Clarke has pumped £1bn into improving the UK business and overseen a kitchen-sink job in Tesco’s most recent annual results that saw worldwide post-tax profits fall from £2.8bn to £120m.

 

Some City analysts believe Clarke needs to go even further to halt Tesco’s decline, however, as Philip Dorgan at Panmure Gordon, said: “Remember that the darkest hour is just before dawn.”

 

For those who doubt whether Tesco can retain its position in the UK and abroad, there is one final point. Its largest shareholder is Warren Buffett’s Berkshire Hathaway. The Sage of Omaha does not get much wrong.

 

 

Source: www.telegraph.co.uk (http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10104761/As-Tescos-retail-crown-slips-is-history-repeating-itself.html) ,

By Graham Ruddick,

Supermarket sales up 2.8% in May, Retailers using multiple tactics to encourage shopper loyalty

The early May bank holiday and accompanying good weather were enough to offset a lacklustre middle part of the month for food and drink sales at the UK’s leading supermarkets, according to the latest retailer performance figures released by Nielsen. . It said aggregate sales value growth for the leading supermarkets during the four weeks ending 25 May 2013 was +2.8% year-on-year. For the previous four-week period (ending 27 April 2013), year-on-year sales value growth was down -1.4%. Unit sales (volume) increased +0.2% year-on-year, compared to -3.0%* year-on-year during the previous four weeks. The sales decreases for the four-week period ending 27 April 2013 reflect that Easter didn’t fall within those four weeks, as it did in the comparative four weeks last year (four weeks ending 28 April 2012). Explaining the figures, Nielsen’s UK head of retailer and business insight Mike Watkins said: “The recent four week reporting period was a tale of two halves. The first two weeks and the better weather saw strong growths, while the middle of May saw slowing growths compared to the same period in 2012 with its warm weather. “Spend on offer fell to 33% of sales, and while this is still high, retailers are using multiple tactics to encourage shopper loyalty including couponing and vouchering, everyday low price and loyalty card initiatives, as well as in store promotions.” The strongest category growths were in Produce (+7% value year-on-year), Bakery (+5.5%) and Delicatessen (+4.4%) with General Merchandise tracking at +2.3%. The weakest growths were in Frozen (-1.8%) and Soft Drinks (-1.6%). Commenting on retailer performance, Watkins noted: “Sainsbury’s continues to lead the top four supermarkets in terms of sales growths so their market share has increased over the last 12 weeks. Waitrose also grew share, to 4.5%. However, the fastest growing food retailer continues to be Aldi with a +25% increase in sales. With continued high levels of advertising, Aldi is one of the few retailers consistently able to attract significantly more new shoppers.” NamNews - Thursday 6th June 2013

Young shoppers more likely to buy british food

British food is becoming increasingly popular with youngsters, reveals the latest ShopperVista survey from grocery think-tank IGD.
Shoppers aged between 18-24 are now twice as likely (69%) to buy British food than they were in 2007 (36%). Nearly eight-in-10 shoppers (78%) would buy British food when available, while the same proportion believed the British public should support farmers.

Overall, the results – released ahead of Linking Environment And Farming’s (LEAF’s) Open Farm Sunday on June 9 – show that shoppers are nearly 150% more likely to buy British food than they were six years ago, with younger shoppers and families driving growth.

 
'Excellent opportunity for local food’

Joanne Denney-Finch, IGD chief executive, said: "The good news for British producers is that interest in food sourced in this country has never been higher – eight out of 10 shoppers want to buy it. This is an excellent opportunity for local food producers – who clearly have the public’s support. It is also a chance for food companies to emphasise the quality of their products."

Caroline Drummond, chief executive, LEAF (Linking Environment And Farming), the organisers of Open Farm Sunday, said: "It is great to see that the British public’s support for farmers has never been higher. Open Farm Sunday gives visitors the chance to meet the farmers who are growing our food, find out more, and say thank you too."

Meanwhile, Alun Davies, Wales minister for natural resources and food, is urging people across the principality to get involved in World Environment Day today (5 June) by cutting food waste to help protect the environment. Davies said: "It is shocking that around 400,000t of perfectly good food and drink are wasted by households in Wales every year. This means that families spend about £50 every month on food that simply ends up in the bin."

Source: IGD ShopperVista, 06/06/2013

Coffee shop sales boosted by breakfast trade

Latest figures from the NPD Group have shown coffee shop sales have increased by 5% since 2009, with breakfast visits increasing by 9% on average every year between 2009 and 2012. The research found that breakfast now accounts for just under 20% of total out-of-home eating visits with consumers making an extra 25.6 million visits each year compared to 2009. On-premises coffee consumption is also growing in popularity with visits up 3.5% between 2011 and 2012. Commenting on the research, Guy Fielding, director of business development for the NPD Group said: “The surge in breakfast is great news for the likes of Caffè Nero, where this occasion accounts for just over a quarter of their total visits. This is particularly important as snacking is slowing, and this is impacting some of the Quick Service coffee operators. “So the enduring popularity of coffee is compensating for the snack slowdown. But in spite of the coffee uplift at breakfast, all the branded coffee players are still feeling the impact of the slower snacking market, most notably Costa Coffee, where snacking constitutes 57% of all visits – the highest among the ‘big three’.” Outlets that have not traditionally focused on coffee are now aware that a good quality coffee proposition will attract new customers, and prompt them to spend more per head. Tesco recently announced its investment in high street ‘artisan’ coffee chain Hoole and Harris, which will be managed by the team behind Taylor Street, a small chain of coffee shops in London. Fielding added: “There is no doubt that British consumers have embraced a coffee culture and have become far more sophisticated and educated in their tastes. While the core coffee chains were the first to capitalise on this trend, the high street sandwich shops and bakeries, not to mention pubs and even petrol forecourts, are all getting in on the action.” NamNews - Wednesday 5th June 2013

Record breaking 193-course menu

 

 

Do you struggle with 3 courses choosing the starter and dessert option only, or the main course and dessert? Well you might want to loosen your belt and gird your loins for this marathon meal that hopes to break the world record for the number of courses served!

Unearthed's gigantic, record-breaking, globe-spanning, tongue-challenging pop-up is being held on the weekend of June 14^th in London. They'll have Guinness there to officiate for the world's longest tasting menu, on which you can taste things like Romanian Bird's Milk (from cows really – no birds were harmed in the making).

The reason they chose 193 courses is because they’re representing each country in the world. Prepare for the obscure as you eat your way through "Meat Gutab" from Azerbaijan, Congolese grasshoppers and Malaysia’s stinky durian fruit.
 
If you want to attend, you can buy tickets in hour-long blocks on 10^th June (the first lot have sold out). Go to http://www.eventbrite.co.uk/event/6647527935/eorg first come, first serve!

Source: The foodpeople, 04/06/2013

Consumer Confidence Improves

Consumer confidence in the UK improved more than expected to a six-month high in May as households were more upbeat about their personal finances as well as the overall economic situation, according to a survey out today by GfK NOP. The consumer confidence index climbed to -22 in May from -27 in April, while economists had forecast a reading of -26. "There are now some real signs that consumers, while hardly confident, are moving out of the feeling of despondency that the country has been mired in for the last year or so," said Nick Moon, Managing Director of Social Research at GfK. However, Moon cautioned that even after this rise, the index still remained lower than it was for the whole of 2010 and sharply worse than it was for an entire decade from 1997 to 2007. "We may be climbing out of the pit of economic pessimism, but there's a long way to go until the public becomes neutral, let alone positive," he said. The sub-index measuring consumers' opinion about their personal finances last year increased by four points to -20. Their expectations for personal finances over the next year rose two points to -5. The index measuring assessment of the general economic situation in the past 12 months advanced nine points to -44, while expectations index rose eight points to -18. The major purchases measure was steady at -25. NamNews - Friday 31st May 2013

New food flavours being used to stay relevant to consumers

 

In order to stay relevant to consumers, food manufacturers are increasingly trying to replicate the latest food experiences, or else reinvent their product by being more innovative. Against this background, food manufacturers need to follow the latest trends in flavour.

Flavours that might once have been surprising have now become almost commonplace. Flavours such as salted-caramel, sea-salt and seaweed have all been big hits of late, with other flavours such as fig showing wide-appeal too.

Generally flavours see popularity in a particular area but some such as salted caramel can appear across several categories including yoghurts, ice-cream, chocolate and even drinks. Sea-salt has gone far beyond a seasoning for crisps. This is now appearing in chocolate, confectionery, and ice-cream.

Flavours currently gathering traction include a variety of 'fusion' or 'east meets west' flavours, street food-inspired flavours, with 'cocktail' flavours American flavours such as Mojito are also proving popular even for savoury snacks such as crisps and olives.

Emerging trends in 2013 include the 'handcrafted' slow-cooked foods that incorporate smoky, spiced flavours. These flavours are being introduced into everything from chocolate to cocktails. While the most popular herbs and spices for 2013 include all-spice, sage, clove, cinnamon and anise.

In terms of innovation, an unusual food flavour has hit the market, the marmite-flavoured chocolate bar. Even iconic brands like Tayto are now playing with our preconceptions around flavours of late. In recent months, Largo Foods introduced the cheese & onion crisp flavour 'Tayto' with chocolate.

 

 

Source: Stephanie Moe, Food and Beverage Division, Bord Bia-Irish Food Board, 24/05/2013