1 CopyrlghL Symphonyl8l Croup, 2012. ConfldenLlal and roprleLary.

Tim Eales
Director of Strategic Insight
Topline Report H1 2012
Is economic uncertainty affecting FMCG sales?
2 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Key findings
A unique crisis; lasting for more than two years and prices are rising faster
than earnings; Consumer Recession has started more than a year ago
now.
Purchasing power is under pressure due to increasing prices which are
impacting volume sales in almost all countries and more significantly in Non-
Food. Spain remains the exception.
Price volatility and inflation are likely to be here to stay and will be the
new norm, impacting shoppers behaviour: more price cautious for the cost
of their grocery shopping basket, even in Germany. Retailer strategies vary in
different countries to retain shoppers and maintain or increase the shopper
basket: Every Day Low Price, private labels, trade promotions or price war.
The frugal shopper is smarter, buying less and more wisely - leveraging
from the multiple sources of information and the multi-channel opportunities to
control the grocery basket cost. Even BOGOF has become of less interest,
preferring coupons that have immediate impact on the cost of the shopping
basket.
Promotional activity has started to increase in most countries. The UK
remains the champion with 54.4% of volume sales. Netherlands is seeing a
decrease during the summer period, when the slow down in France comes
mainly from the private label products.
Own labels are challenging national brands in most countries with share
increasing everywhere recently very slightly in France and in the UK, where
there is a major promotion activity on national brands. The UK and Spain
remain the champions with respectively more than 50% and 40% of value
share.
HIGH PRICES
DRIVEN BY
PRIVATE LABELS
AND PROMOTION
FRUGAL SHOPPER
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-0,4
0,5
-0,9
-2,8
-0,3
-6,3
-1,6
Netherlands Germany UK Italy France Greece Spain
GDP Growth Q2 2012 - % change vs. previous year
Source : Eurostat Q2 12 Checked 2nd Oct 2012
Growth rates of GDP in volume
(based on non- seasonally adjusted data)
Euro area (17 countries) GDP down by -0.8%
Prov.
4 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
EU (17) unemployment rate up from 10.80% in Jan 12
to 11.3% in July 12
5,3
5,5
8,1
10,3
10,7
24,4
25,1
Netherlands Germany UK France Italy Greece Spain
Source : Eurostat July 12
(5.0) (5.6) (8.2) (9.9) (9.7) (21.7) (23.5)
June
June
(Jan 12)
5 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
1,5
1,2
3,4
1,8
3
-3,8
3,4
Netherlands Germany UK Italy France Greece Spain
FMCG Growth H1 2012 - % change vs. previous year
VALUE TREND
VOLUME TREND
Spain continues to show volume growth but all other countries apart from Italy have declined
UNITS trend
for Greece
Price rises are pushing up value sales almost across the board
-0,7
-2,8
-0,4
-0,6
0,3
-2,8
2,6
6 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
FMCG consumer reaction to economic uncertainty
FMCG price increases have reached the point that its impacting volumes in most countries in Food and Non Food; with a
big drop for Non Food in Greece (-7.1%) and Italy (-4.7%) in H1 2012. Rising prices have predominantly resulted in increased
value sales. On every day food items shopping basket, Greece has the highest price 24.80 euros vs. the lowest in Germany,
14.21 euros.*
Price is the heart of the battle and different strategies are being developed to retain shoppers; in France the price war between
retailers is still on going ; in the Netherlands and the UK there is a tendency to develop Every Day Low Price (EDLP) products, in
all countries private labels are gaining more market share with additional promotion initiatives in Greece. In the UK promotion
activity is still very high and in most countries it has started to grow again to compete against private label growth and limit the
loss in volume sales.
Promotion is changing less stocking for more expense control. Is the end of BOGOF? There is an increasing interest for
off-shelf activities: coupons, more and more popular in the Netherlands and Germany, and display fixtures. Frugal shoppers are
searching immediate solution to control or reduce the cost of their shopping basket. In France on-shelf offers went down by 11%
as off-shelf promotions grew by 1.9%.
In France and in Spain consumption has increased. French shoppers benefit from the price war between retailers and
continue to consider Food as important, preferring to eat at home but with more healthy products. The Spanish growth is driven
by private label where growth was 7% in H1 2012 vs. 0.6% for national brands.
In Greece, its the promotion war: manufacturers are using tailor-made activities and retailers are increasing private label
promotion, with the development of the hard discounter network.
Although Germany has the healthiest economy, its the biggest drop in volume sales for food, with -3.3% in H1 2012, although
price rises have slowed down.
Shoppers are cautious about the cost of their shopping basket and are willing to buy value for money, this can be the
private label offering against which national brands respond with strong trade promotion activity, and in some countries the
emergence of EDLP. Private label and promotion are now part of the shopper landscape switching to get the best value for
money.
Consumer Recession: return to a few basic principles that have been forgotten during a time of rapid expansion and waste:
people are buying what they need when they need it, buying less each time they shop and buying more often or for those who
can afford, buying economic large size but anyway: not wasting any more. Its impacting more the Non Food categories.
Consumers are eating out and having their hair done a bit less, baking at home and preparing more meals from scratch.
* Source: Every Day Food Items Shopping Basket for Just-Food.com by SymphonyIRI, for Q2 2012.
7 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
2,0
3,0
2,3
3,9
2,1
2,0
2,6
1,7
4,1
4,5
4,4
3,3
3,0
3,2
2,2
3,4
2,8
3,9
1,8
2,0
2,6
1,0
1,4
0,0
0,4
0,8 0,9
-0,2
-1
0
1
2
3
4
5
6
VALUE VOLUME PRICE
In France, H1 Food volume sales have grown slightly, with prices up by
almost 3%. Non-Food volume was flat.
Trend of Food Sales in France
(Packaged Food, Confectionery, Drinks, exc. Alcohol)
0,4
3,2
2,9
3,2
1,7
0,6
0,9
2,5
0,8
2,1
4,6
2,2 2,2 2,2
1,4 1,5 1,4
0,0
0,5
-1,0
0,9
-0,6
-0,7
-1,6
1,6
-0,3
-0,7
0,3
-2
-1
0
1
2
3
4
5
6
Trend of Non-Food Sales in France
(Pet Food, Health, Toiletry, Household)
SOURCE: SymphonyIRI, Hypermarkets & Supermarkets
YoY Value & Volume price change
VALUE
GROWTH
FROM
INFLATION
Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 H1 2012
8 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Overview - France
Inflation rate reached its highest level in February (+3.9% compared with
February 2011). It is decreasing and reached only 1,5% in August.
Despite the economic situation, FMCG volumes have slightly grown
during the second quarter 2012.
The situation is quite the same for all big departments ( Health,
Household, Ambient, Packaged fresh products).
Alcohol (which are not included in these results) and sparkling drinks
have been suffering since January because of the tax increase.
Private label market share is slightly growing up but only in value.
National brands are still more dynamic in terms of volume.
The situation remains better than during the last crisis (2008) and the
impact of the international and national difficulties is (not yet) perceptible
for the FMCG markets.
VAT on Food 5.5% & 19.6%
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5.1
2.9
1.4
3.6
-3.0
0.9
2.3
-0.9
9.3
4.5
3.6
4.5
1.0
2.7
6.5
4.3
2.6
6.4 6.4
-0.9
0.4
0.2
-3.5
-2.0
1.9 2.0 2.0 0.8
-4
-2
0
2
4
6
8
10
12
VALUE VOLUME PRICE
In Italy, H1 Food volume growth was just 0.4%. The decline in Non-Food
volume has continued but with lower price increase in Q2.
Trend of Food Sales in Italy
(Packaged Food, Confectionery, Drinks, inc.. Alcohol)
3.3
4.5
1.8
1.1
-2.0
-3.3
-2.7
-1.7
0.0
0.6
0.0
-1.2
-2.7
-2.0
1.3
3.8
1.4
-1.9
-3.0
-2.4
-1.1
-4.7
-4.7
-0.5
-4.7
-0.6
-1.1
0.8
-6
-5
-4
-3
-2
-1
0
1
2
3
4
5
Trend of Non-Food Sales in Italy
(Pet Food, Health, Toiletry, Household)
SOURCE: SymphonyIRI, All Outlets
YoY Value & Volume price change
Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 H1 2012
10 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
The 2012 inflation rate for FMCG in Italy is around 3%. In July a decrease
was registered and the inflation is at 2.1%.
% Price changes - FMCG
Tot. Italia Ipermercati + Supermercati + Superette
11 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Overview - Italy
The macro economic scenario in Italy shows a difficult situation for both consumption and GDP trends in the
first semester of 2012, and the recovery phase seems to be a long way off. During the second quarter the
Italian GDP decreased by -0.8% vs. the previous quarter (Source: Istat) and by 2,6% vs. the second quarter
of 2011. The Italian GDP forecasts for 2012 indicates a -2.4% (Source: OCSE). All gasoline prices registered
a significant increase.
Unemployment is up to 10.7% in June 2012 (Source Eurostat). This is a really high rate and affects mostly
young people.
In June 2012, the index of consumer confidence fell from 86.5 to 85.3 (Source Istat).
The purchasing power of households is under pressure. Family disposable income reduced by -1% in 2011
and it will probably fall by -2.6% in 2012 (Source Promoteia forecasts).
In March we registered a significant decrease FMCG volumes: -0.9%. This means the market is suffering in
the difficult economic context.
For the last 11 months trading down has been seen in the FMCG shopping basket. This has been caused by
increased prices and the need to save money.
FMCG inflation registered a little decrease and in June was at 2.1%. All categories registered a small
decrease in inflation.
There has been a large increase in the number of private labels, resulting in share improvement, during the
last months particularly in the Non Food sector. Branded products suffered worse than own labels in the
difficult economic climate.
Trade promotions are relatively high, promotional pressure is at around 25.9% in June with a growth of 0.9%
vs. previous year. Branded products value sales in promo is at 27.1%. Private labels are promoting less than
branded products (20.2%).
VAT on Food 4% & 10%
12 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
-0.5
0.0
-0.9
0.3
-0.6
-0.5
0.0
1.3
2.9
2.0
6.0
4.0
3.8
3.9
3.1
4.8
3.2 3.2
1.7 1.7 2.2
2.6
5.2
2.9 2.9 2.8
2.4 1.8
-6
-4
-2
0
2
4
6
8
VALUE VOLUME PRICE
In Spain, Food prices are barely changing and volume remains buoyant.
Non-Food price rises have reduced after going up in Q3 11.
Trend Spain Food Sales in Spain
(Packaged Food, Confectionery, Drinks, exc. Alcohol)
Trend of Non-Food Sales in Spain
(Pet Food, Health, Toiletry, Household)
SOURCE: SymphonyIRI, Hypermarkets & Supermarkets
YoY Value & Volume price change
Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 H1 2012
13 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
FMCG sales evolution vs. previous year: demand and price
Spain - Prices stopped decreasing in March
14 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Overview - Spain
Unemployment continued to increase, rising to 24.6% in Q2 2012.
Annual inflation (CPI) for total 2011 was +3.2%. In June 2012 it was a +1.9%.
GDP has decreased -1.4% in Q2 2012 when total 2011 was +0.7%.
sales of FMCG market in H1 has increased +3.2%. This is due to the increase of
consumption, +2.2%, and also prices, +1.0%.
The increase of FMCG sales is due largely to the private label increase, when in H1
growth was 7.0%. Manufacturers growth was +0.6% in the same period.
Price gap between manufacturers and private label have been reduced but the
difference is still significant: in 2010 it was 39%, and it has reduced to 38.4%.
The increase of prices in FMCG is affected more by the prices of private labels, that
increased 2.4% in the YTD May, vs. manufacturers that did just a 0.2%. Anyway,
private labels continue to gain share and reach 42.4% of value sales in H1.
VAT on Food 8% and 18%
15 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
2.2
3.6
1.7
0.1
-5.0
3.4
1.3
-0.5
1.8
2.4
-1.0
-0.6
2.8
2.2
5.5
2.4 2.0
-0.1
-2.0
-1.5
-2.3
-1.1
-0.5
1.0
0.4
1.5
-6
-4
-2
0
2
4
6
8
VALUE UNITS PRICE
In Greece, Food volume has continued to decline but only by 1-2%.
Non-Food is well down.
Trend of Food Sales in Greece
(Packaged Food, Confectionery, Drinks, exc. Alcohol)
-1.6
-1.9
2.6
-1.7
-9.4
0.7
-2.5
-1.7
-1.3
-7.2
-11.0
-9.1
-10.0
2.2
-2.4
-8.5
-4.8
-7.1
-7.2
-6.9
-1.5
0.3
-0.6 -0.3
0.2 0.0
-14
-12
-10
-8
-6
-4
-2
0
2
4 Trend of Non-Food sales in Greece
(Pet Food, Health, Toiletry, Household)
SOURCE: SymphonyIRI, Hypermarkets & Supermarkets
YoY Value change
Price per unit
Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 201 0 H1 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 H1 2012
16 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Overview - Greece
Inflation in Greece in August 2012 was +1.7%.
Unemployment rates for Q2 2012 reached 23.6%.
GDP for Q2 2012 was -6.3%.
Manufacturers nowadays, use tailor made activities in order to promote their goods.
Retailers are promoting Own Label products more and more.
Food category sales seem to suffer less, due to consumption a transfer from other small
stores (e.g. kiosks, haberdasheries, convenience) to supermarket/hypermarket stores.
Lidl continues its growth.
VAT on Food 13%
17 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
1.6
0.7
0.2
1.4
0.0
1.1
2.4
2.7
4.7
4.4
3.5
0.9
2.2
1.9 1.9
3.1
1.4
3.3
-0.6
-1.1
-1.0
-0.3
0.1
0.7
1.5
-0.2
-3
-2
-1
0
1
2
3
4
5
6
VALUE VOLUME PRICE
In the Netherlands, the Food volume sales have started to decline as
prices increase. Non-Food volume has fallen since 2011.
Trend of Food Sales in the Netherlands
(Packaged Food, Confectionery, Drinks, exc. Alcohol)
-2,1
2,2
0,9
-2,1
0,5
-1,8
-1,3
0,2
-0,6
1,2
-0,9
-2,2
-1,6
4,1
-1,0
-5,2
-1,6
-1,6
-0,5
-0,6
-1,0
0,9
-1,6
-1,9
0,1 1,5
-6
-4
-2
0
2
4
Trend of Non-Food Sales in the Netherlands
(Pet Food, Health, Toiletry, Household)
SOURCE: SymphonyIRI, All Outlets
YoY Value & Volume price change
VALUE
GROWTH
FROM
INFLATION
Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 201 0 H1 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 H1 2012
18 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Overview The Netherlands
Economic growth for 2011 was 1.0%. Since the fourth quarter of 2011 theres been no
quarter with year-on-year growth.
In the first half of the year, the inflation in the Netherlands was slightly above Europe.
Unemployment went up to 6.8% in July. Its quite low compared to other European
countries but in The Netherlands, it was never so high since 1996.
The mood among consumers is very pessimistic. In June, Consumers confidence was
at a historical low. It has risen a bit in the last few months. This is due to their
confidence in the recovery of economic climate. The willingness to buy is still very low.
Total supermarket growth is just above 2%. Price increase is the main driver, while
volume sales are declining. Especially in Food, prices are higher than in 2011. In the
short term, theres no longer a price growth.
Trade promoted volume was increasing in the first half of the year. This summer the
promotion pressure was relatively low.
VAT on Food : 6%
19 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
-0.8
-2.0
-0.7
1.8
-1.2
2.4
2.3
3.3
3.6
3.3
2.7
-0.1
1.2
-3.3
-1.4
-3.7
1.1
-1.2
2.2
0.2 0.5 0.2
-0.3
-2.4
-2.4
-0.3
-4
-3
-2
-1
0
1
2
3
4
5
6
7
8
VALUE VOLUME PRICE
In Germany, the effect of Food prices rising quickly has hit volumes
again in Q2 2012 impacting also Non-Food.
Trend of Food Sales in Germany
(Packaged Food, Confectionery, Drinks, exc. Alcohol)
0.9
2.3
1.7
2.5
0.8
0.4
-0.9
1.0
2.1
0.7
1.4
1.1
1.7
-0.9
-1.3
-0.4
1.7
1.9
0.7
1.8
0.5
0.6 0.2 0.9
1.8
1.4
-2
-1
0
1
2
3
4
Trend of Non-Food Sales in Germany
(Pet Food, Health, Toiletry, Household)
SOURCE: SymphonyIRI, All Outlets inc. Aldi
YoY Value & Volume price change
VALUE GROWTH
FROM INFLATION
Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 201 0 H1 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 H1 2012
20 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
The trend of frugality and cautious behaviour still seems to be led by the German
shoppers even though we see average salaries climbing with a rise of 3%, the amount
of private spending remains relatively reluctant to increase.
Food and frozen food categories remain those that are mostly affected by price
increases and subsequent volume declines we can also see that sales of private label
products continue their story of success. In economically uncertain times, consumers
turn to cheaper products more often, especially when facing steady uplift of prices for
brands
When comparing the development of sales channels the positive trend for medium sized
hypermarkets continues. A possible explanation for this success may be a larger
selection of products offered, a larger focus on listing innovative products and ranges
and increased promotional activity that attracts a high number of consumers.
Private labels display value growth throughout nearly all sales channels and accounts.
The only channels with a decline of private label sales are hard discounter Aldi and soft
discounter Penny, where one would usually expect private label growth. The reason for
the losses here are mainly seen in offering more branded products that work well in
discounters where they are still sold at a lower price than in super/hypermarkets.
Overview - Germany
VAT on Food 7% & 19%
21 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
5.1
3.3
2.5
1.8
1.5
1.9
4.0
0.8
3.2
4.7
4.8
4.2
3.1
3.6
1.0 1.1
1.7
-0.3
0.2 0.2
-0.4
0.7
-1.4
0.5
0.1 0.0 0.0 1.0
-1
0
1
2
3
4
5
6
VALUE VOLUME PRICE
In the UK, price rises are causing volume decline again in H1 2012 for
Non-Food and also on Food with value pushed up by inflation.
SOURCE: SymphonyIRI, All Outlets, YoY Value & Volume price change
Excludes Northern Ireland
Trend of Food Sales in the UK
(Packaged Food, Confectionery, Drinks, exc. Alcohol)
2.4
2.1
1.0
1.5
-0.1
1.0
3.5
1.4
1.6
2.0
2.2
2.6
2.8
2.7
1.1
1.6
0.9 1.3
-0.9
-0.5
-1.1
-1.1
-1.6
-1.3
-1.1
-1.2
-0.8
0.3
-3
-2
-1
1
2
3
4
5
6
Trend of Non-Food Sales in the UK
(Pet Food, Health, Toiletry, Household)
VALUE
GROWTH
FROM
INFLATION
Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 H1 2012
22 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
1,7
1,8
2,4
2,0
1,9
2,7
2,8
2,5
2,6
3,3
3,1
3,7
4,1
3,7
3,8
3,9
4,9
4,6
4,0
4,3
3,4
2,7
9.200
9.400
9.600
9.800
10.000
10.200
10.400
10.600
Dec,
10
Jan,
11
Feb,
11
Mar,
11
Apr,
11
May,
11
Jun,
11
Jul,
11
Aug,
11
Sep,
11
Oct,
11
Oct,
11
Nov,
11
Dec,
11
Jan,
12
Feb,
12
Mar,
12
Apr,
12
May,
12
Jun,
12
Jul,
12
Aug,
12
0
1
2
3
4
5
6
7
8
9
% CHANGE YOY
FMCG Shopping Basket GB All items
% CHANGE vs. LAST YEAR
Actual price eased off slightly in the latest 8 weeks but still +2.7% vs. last year.
This is equivalent to an extra 272 across the whole basket of goods measured in just one year.
23 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Overview United Kingdom
Inflation (CPI) is still above the Governments target but fell to +2.4% in June rising to 2.6% in July
12.
Unemployment was slightly lower than the previous quarter at 8.1%. Temporary / part time
employment has increased within this total.
GDP fell in the 2nd quarter of 2012 by -0.5% vs. Q1 2012. This is below the Government forecast.
Q2 2012 was also down by -0.5% vs. Q2 2011.
VAT was reduced in Dec 2008, returned in Jan 2010 and went up again in Jan 2011. This affected
prices through 2011, the anniversary in Jan 2012 showed a corresponding slight reduction in the
level of inflation.
Credit has started to reduce and the savings ratio is fairly stable at around 7%.
Private label value share is currently increasing but only very slightly in Food & Drink, unit share is up
a little more but so far the anticipated rise of private label hasnt really happened since brands are
promoting strongly.
Food prices started to rise before VAT went up in Jan 2011 have continued to go up throughout the
year. The rate of increase reached 5% but is currently closer to 3%.
FMCG sales started to falter and volumes are down in 2012. Non-Food volumes have been hit
harder than Food volumes but Food is still down for H112 by -0.3%.
The Diamond Jubilee produced a sales bump followed by a sales slump, since the weather was so
bad and food bought for parties was used up afterwards. The effect of the Olympics is yet to be
determined.
VAT on Food 0% & 20%
24 CopyrlghL Symphonyl8l Croup, 2012. ConfldenLlal and roprleLary.
Tim Eales
Director of Strategic Insight
Topline Report H1 2012
Topline Trade Promotion Trends
25 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary.
25 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
0
10
20
30
40
50
60
Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012
Deal levels vary enormously across Europe - Food
GERMANY
NETHERLANDS
UK
ITALY
SPAIN
FRANCE
% SALES WITH TRADE PROMOTION (Volume SP, NL, UK Value IT, GE, FR)
Trade Promotion level is still very high but no higher in the latest
quarter than then previous year in the UK.
Increasing in Italy over the past year.
26 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary.
26 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
0
10
20
30
40
50
60
Q2
2009
Q3
2009
Q4
2009
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Deal levels vary enormously across Europe Non-Food
% SALES WITH TRADE PROMOTION (Volume SP, NL, UK Value IT, GE, FR)
Trade Promotion levels have moved higher in the UK and
increasing in Q2 12 in Germany.
GERMANY
NETHERLANDS
UK
ITALY
SPAIN
FRANCE
27 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary.
27 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
0
10
20
30
40
50
60
Q2
2009
Q3
2009
Q4
2009
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Deal levels vary enormously across Europe All Products
GERMANY
NETHERLANDS
UK
ITALY
SPAIN
FRANCE
% SALES WITH TRADE PROMOTION (Volume SP, NL, UK Value IT, GE, FR)
Increased levels of Trade Promotion in Italy as well as a return to
the increasing trend in UK.
28 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary.
28 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Looking Forward
Recommendations
Build strong brand loyalty with a direct access to your
consumers. Retailers will see it as an opportunity for them
as well.
Detailed analysis of price versus demand across
categories will help manufacturers to optimise future
pricing and positioning strategies.
Be very straightforward on the promotion strategy goals
and get appropriate analytics solutions enabling you to
simulate price and promotion impact on your margins, on
your revenue, on the category and on your competition to
achieve your performance target.
Get a clear view of trip missions decision and impacting
factors for each shopper segment to gain market share and
avoid cannibalisation.
Stimulate need through media activity.
Manufacturers need to assess the category competitive
risk from own label growth and development and adjust
their portfolio and retail approach.
Retailers and manufacturers have to think about category
adjacencies as well as in category choices.
Insights
Shoppers have access to multiple source of information and
influence via internet, on real time.
The value segment of most food categories might get bigger
as shoppers search for better value products.
Although promotion activity is high, it will be difficult to reverse
the trend. Its correlated to price increase which could continue
at its present rate for some time to come.
Multi channel shoppers.
Shoppers buying more based on need than want.
Manufacturers are fighting hard to protect their share of sales
and promotions in the face of fierce own label competition and
some are re-engineering lines or launching new variants.
Category volatility will increase. The search for value is
prompting shoppers to swap for cheaper alternatives at the
product or category level. But also consumers buying habits are
driven by lifestyle reasons: healthy and environmental friendly
items for instance.
29 Copyright SymphonyIRI Group, 2010. Confidential and Proprietary.
29 Copyright SymphonyIRI Group, 2012. Confidential and Proprietary.
Final Notes
Source: SymphonyIRI Group InfoScan, syndicated retail tracking service
Methodology: Seven quarters of review, YoY data for FMCG
Country coverage: France, Germany Greece, Italy, the Netherlands,
Spain, United Kingdom
To gain deeper insights, predictive analysis and
recommendations on specific products, categories,
segments, channels or retailers
contact your SymphonyIRI Consultant
or email to: eu.marketing@symphonyiri.com
Contact: SymphonyIRI Group, eu.marketing@SymphonyIRI.com, Tel: +33 1 30 06 23 62