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Crisps and Snacks - UK - May 2007

ISSUES IN THE MARKET
Key themes
Definitions
INSIGHTS AND OPPORTUNITIES
Back to basics with a twist
Functional snacks
Pretzel logic
FAST FORWARD TRENDS
Trend 1: The Snack Society
Trend 2: Generation Why?
Fast forward – an explanation
MARKET IN BRIEF
Faltering sales, but some bright spots
Concentrated market
Healthier products
Changing role for advertising
Increased importance of adult snacks
INTERNAL MARKET ENVIRONMENT
Key points:
Obesity – a weight on everyone’s mind
Figure 1: Projected prevalence of obesity in children and adults, by gender, 2003 and 2010
The Jamie Oliver effect
Media focus on diets and obesity
Consumers seeking healthier alternatives
Figure 2: Agreement with selected lifestyle statements, 2002-06
Figure 3: Agreement with selected lifestyle statements – 11-14-year-olds, 2002-06
Concern over fats
Sustainable snacks
BROADER MARKET ENVIRONMENT
Key points:
5 A DAY
School Food Trust promotes healthier lunches
Restrictions on advertising to children
Figure 4: Agreement with the statement ‘I like to buy things I’ve seen in the adverts on TV’ – 7-10s and 11-14s, 2003-06
Food labelling
Ageing population
Figure 5: Trends and projections in the UK population, by age group, 2002, 2007 and 2012
Consumer expenditure
Figure 6: PDI and consumer expenditure, at constant 2002 prices, 2002-12
Other factors
Healthy School Status
COMPETITIVE CONTEXT
Key points:
Traditional snack markets face challenge
Figure 7: UK retail value sales of crisps and snacks, biscuis and chocolate, 2002-07
Strong growth in healthy snacks
Figure 8: UK retail volume and value sales of crisps and snacks v nuts, seeds etc and fruit and vegetables, 2002-07
The changing face of snacks
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
WHO’S INNOVATING?
Key points:
Range extensions
Figure 9: Type of product launched, January 2006-April 2007
Provenance the flavour of the month
Figure 10: Top flavours launched, January 2006-April 2007
Health claims to the fore
Figure 11: New launches, by product claim, January 2006-April 2007
Figure 12: Comparison NPD claims – UK v Global, January 2006-April 2007
Reducing fat and salt content
Other health claims
Companies target premium sector
Figure 13: New product launches, by company, January 2006-April 2007
Extending the appeal of snacks
Limited progress on retail own-label
Organic growth
MARKET VALUE AND FORECAST
Key points:
Signs of recovery in 2006
Figure 14: UK retail volume and value sales of crisps and snacks, 2002-07
Figure 15: UK retail value and volume sales of crisps and snacks, by sector, 2002-06
The occasional treat
Future growth potential
Figure 16: Forecast of the crisps and snacks market, by value, 2007-12
Figure 17: Forecast of the crisps and snacks market, by volume, 2007-12
Economic prospects
Factors used in the forecast
SEGMENT PERFORMANCE
Key points:
Tentative recovery in crisps
Figure 18: UK retail volume and value sales of crisps and snacks, 2002-07
Snacks remain in the doldrums
Premium sector leads the way
Figure 19: UK retail value sales of crisps, by type, 2002-06
From diet to mainstream
Figure 20: UK retail sales of lower-fat potato snacks*, 2002-07
Tradition is flavour of the month
Figure 21: UK retail value sales of standard/regular crisps, by flavour, 2004 and 2006
Greater attention on adult snacks
Figure 22: UK retail sales of savoury snacks in the UK, by type, 2002-06
MARKET SHARE
Key points:
Concentrated market
Figure 23: Manufacturer shares in the UK crisps and snacks market, by value, 2004 and 2006
Indulgence v health
Figure 24: Company shares in the UK crisps market, by value, 2004 and 2006
Slow growth in snacks
Figure 25: Manufacturer shares in the UK snacks market, by value, 2004 and 2006
Own-label remains in the shadows
COMPANIES AND PRODUCTS
Key points:
 MAJOR PLAYERS
Walkers
Product range
Marketing positioning
UBUK
Product range
Marketing positioning
Procter & Gamble
Product range
Marketing positioning
Tayto/Golden Wonder
 PREMIUM SPECIALISTS
Kettle Chips
Real Crisps
Tyrrells
Burts Potato Chips
Duchy Originals
 SMALLER BRANDS/OWN-LABEL SUPPLIERS
Seabrook
Red Mill
Kolak Snack Foods
Future trends
BRAND ELEMENTS
Figure 26: Attitudes brand map of crisps and snacks brands, May 2007
 WALKERS CRISPS
Figure 27: Words associated with the Walkers crisps brand, May 2007
Brand qualities
National domination. The perfect snack – no attack
 GOLDEN WONDER
Figure 28: Words associated with the Golden Wonder brand, May 2007
Brand qualities
Not so golden, no Midas wonder
 HULA HOOPS
Figure 29: Words associated with the Hula Hoops brand, May 2007
Brand qualities
Hula Hoops are in a world of their own
 PRINGLES
Figure 30: Words associated with the Pringles brand, MAY 2007
Brand qualities
Pringles top of the pops and can’t stop popping
 USAGE OF BRANDS
Walkers and Pringles dominate the market
Figure 31: Consumer usage of various crisp and snack brands, May 2007
 ATTITUDES TOWARDS BRANDS
Figure 32: Attitudes to crisp and snack brands, May 2007
 BRAND SATISFACTION AND PERFORMANCE
Walkers excellence leads the way
Figure 33: Customer rating of crisp and snack brands, May 2007
 BRAND COMMITMENT
Kettle Chips and Pringles are worth paying more for.
Figure 34: Degree of customer commitment crisp and snack brands, May 2007
 ROUND UP
BRAND COMMUNICATION
Key points:
Declining impact of TV
Figure 35: Main monitored media advertising expenditure on crisps and snacks, by medium, January 2003-April 2007
Advertising concentrated in few hands
Figure 36: Main monitored media advertising expenditure on crisps and snacks, by manufacturer and retailers, 2002-07*
Walkers retains leading spot
Pringles
KP Foods
Advertising to children
CHANNELS TO MARKET
Key points:
Grocery outlets continue to dominate
Figure 37: UK retail sales of crisps and snacks in the UK, by type of outlet, 2002-06
Importance of smaller outlets for impulse snacks
Figure 38: UK retail sales of crisps and snacks in the UK, by type of outlet and product, 2006
Smaller manufacturers seek select distribution
THE CONSUMER – USAGE
Crisps and snacks becoming an occasional treat
Figure 39: Consumption of potato crisps and potato snacks in the last 12 months, 2002-06
Consumption patterns
Sharper fall in snacks
Figure 40: Consumption of other savoury snacks in the last 12 months, 2002-06
Consumption patterns
Low-fat crisps losing out to lower-fat
Figure 41: Types of crisps eaten, 2006
Branded products lead the way
Figure 42: Consumption of branded and supermarket own-label potato crisps/snacks, 2002-06
A nation of chocoholics
Figure 43: Consumption of other snack foods in the last 12 months, 2002-06
Continued high penetration amongst children
Figure 44: Top snacks/nibbles eaten between meals – 7-10-year-olds, 2006
CONSUMER – ATTITUDES AND MOTIVATIONS
Products bought
Figure 45: Crisps or snacks consumed in the last six months, December 2006
Importance of family and status
Everyone has their preferences
Figure 46: Consumer crisp and snack preferences, by socio-economic group, December 2006
Regional favourites
Snack appeal
Adult snacks increase profile
Continued impact of pester power
The non-snackers
Figure 47: Profile of those who never eat crisps or snacks, by gender, age, socio-economic group, lifestage, presence of children and ACORN categories, December 2006
Healthier snacking
Figure 48: Top 12 items eaten as snacks, December 2006
Snacking profiles
Figure 49: Profile of snacking consumers, by gender, age, socio-economic group, region and ACORN categories, December 2006
From sweet to savoury
Men remain loyal snackers
Figure 50: Profile of crisps and other wheat products and meat based products consumers, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commerical TV viewing, supermarket usage, household size, and terminal education age, December 2006
Attitudes towards snacks and snacking
Figure 51: Attitudes to crisps and snacks, December 2006
Branded crisps under the spotlight
Importance of treats
Influence of entertaining
Importance of advertising
The role of children
Impulse purchasing
CONSUMER – FURTHER ANALYSIS
Number and type of products purchased
Figure 52: Repertoire of types of crisps and snacks eaten, December 2006
Figure 53: Repertoire of crisps and snacks eaten, December 2006
Lighter users stick to what they know
Families and entertaining remain key factors
Clusters on attitudes towards crisps and snacks
Figure 54: Typologies of attitudes towards crisps and snacks by demographics (row %)
Moderators – (41% of sample)
Time Crunchers – (27% of sample)
Kiddy Treaters – (14% of sample)
Health Bandits – (18% of sample)
Pester powers rules choice
Figure 55: Repertoire of crisps and snacks bought, by cluster group, December 2006
APPENDIX
Consumer research
ACORN
Advertising data
Abbreviations
The Consumer – Usage
Figure 56: Consumption of potato crisps and potato snacks in the last 12 months – usage definition, 2002-06
Figure 57: Consumption of other savoury snacks in the last 12 months – usage definition, 2002-06
Figure 58: Consumption of potato crisps and potato snacks in the last 12 months, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN categories, technology usage, household size and car usage, 2006
Figure 59: Consumption of other savoury snacks in the last 12 months, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN categories, technology usage, household size and car usage, 2006
The Consumer – Attitudes and Motivations
Figure 60: Crisps or snacks consumed in the last six months, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, December 2006
Figure 61: Crisps or snacks consummed in the last six months, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, December 2006
Figure 62: Crisps or snacks consummed in the last six months, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, December 2006
Figure 63: Items eaten as a snack, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, December 2006
Figure 64: Items eaten as a snack, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, December 2006
Figure 65: Items eaten as a snack, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, December 2006
Figure 66: Profile of snack consumption, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, December 2006
Figure 67: Profile of crisps and other wheat products and meat based products consumers, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commerical TV viewing, supermarket usage, household size and terminal education age, December 2006
Figure 68: Attitudes to crisps and snacks, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, December 2006
Figure 69: Attitudes to crisps and snacks, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size and terminal education age, December 2006
Figure 70: Cross-analysis of crisps and snacks consumed and occasions when they are eaten, December 2006 – Part 1
Figure 71: Cross-analysis of crisps and snacks consumed and occasions when they are eaten, December 2006 – Part 2
Figure 72: Cross-analysis of items eaten as a snack and occasions when crisps and snacks are eaten, December 2006 – Part 1
Figure 73: Cross-analysis of items eaten as a snack and occasions when crisps and snacks are eaten, December 2006 – Part 2
Further analysis
Figure 74: Repertoire of types of crisps and snacks eaten, December 2006
Figure 75: Repertoire of types of crisps and snacks, by demographics (row %)gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN categories, technology usage, daily newspaper readership, commercial TV viewing, supermarket usage and household size, December 2006
Figure 76: Repertoire of types of crisps and snacks, by attitudes towards crisps and snacks, December 2006 (col %)
Figure 77: Repertoire of types of crisps and snacks, by all types of snacks, December 2006 (col %)
Figure 78: Typologies of attitudes towards crisps and snacks, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN categories, technology usage, daily newspaper readership, commercial TV viewing, supermarket usage and household size, December 2006
Figure 79: Typologies of attitudes towards crisps and snacks, by types of crisps and snacks, December 2006 (col %)
Figure 80: Typologies of attitudes towards crisps and snacks, by repertoire of types of crisps and snacks, December 2006
Figure 81: Typologies of attitudes towards crisps and snacks, by attitudes towards crisps and snacks, December 2006
Figure 82: Typologies of attitudes towards crisps and snacks, by all types of snacks, December 2006 (col %)
Figure 83: Consumption of crisps/savoury snacks – 7-14-year-olds, 2002-06

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