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SymphonyIRI
Frozen Food Pulse
www.SymphonyIRI.eu
Frozen Food – SymphonyIRI Pulse Q3 2012
• This report contains data gathered from around Europe. This market was split
into the following categories: Frozen Vegetables, Frozen Potato Products, Ice
Cream, Frozen Desserts, Frozen Meat, Frozen Fish, Frozen Ready Meals and
Frozen Dough & Bread Products.
• The report highlights key metrics such as total sales figures, market trends,
category shares, winners and losers for Europe and for individual countries.
• The data has been sourced from SymphonyIRI Group retail databases and
Eurostat – the statistical branch of administration for the European
Commission.
• The countries included in the report are: France, Germany, Italy, Netherlands,
Spain and the UK.
• The market channels used for each country in this report are as follows:
• For analytical purposes the data sourced from available retail databases has
been consolidated to provide consistent results. However, for some countries it
has not been possible to source data pertaining to certain categories. When
this has occurred it has been documented in the Notes section found at the end
of the report.
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Frozen Food – SymphonyIRI Pulse Q3 2012
In the Radar
“
In response to the tough economic climate, European
consumers tend to favour basic categories when seeking
“value for money” . Consumers are eating out less and
seeking a ‘dine in’ experience therefore as well as value for
money, pleasure and innovation are still an important factor.
This providing a great opportunity for National brands to
leverage: innovation and promotion.
Séverine Malmejean
Unit Director France, SymphonyIRI Group
”
Economic figures influencing consumer behavior
Average 12 Months
Population in Millions Unemployment (%) Inflation Rate GDP in Millions (€)
United
Kingdom 62.4 62.9 8.4 7.9 +4.4 +3.7 1,747,315 1,913,070
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Frozen Food – SymphonyIRI Pulse Q3 2012
Global Trends
Total EU 22,768
+2.8%
DE 7,919
UK 4,488*
+3.0% +1.3% FR 3,680
IT 3,513
ES 2,310
NL 858
Positive Trend
Static Trend
+1.8%
6,000
3,000
0
3-Jul-11 2-Oct-11 1-Jan-12 2-Apr-12 1-Jul-12 1-Oct-12 Period Ending
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Frozen Food – SymphonyIRI Pulse Q3 2012
Europe
16.8% 6,000
5,021
5,000
Millions Euros
3,831
4,000
10.0% 3,000
28.9%
2,285
2,083
2,000 1,655
9.1%
930
1,000
0.0% 382
1.7% 4.1% 7.3% 4
0.0% 0
Europe includes: France, Germany, Italy, Netherlands, Spain and United Kingdom
Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12
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Frozen Food – SymphonyIRI Pulse Q3 2012
Europe
Frozen Ready
Meals
87.1 All other Frozen
-1.2 Meats
Frozen Potato
Products
43.5 Frozen Dough &
-24.4 Bread Products
Category Insights
• The top 5 winning categories had a combined growth of 492 millions € vs. last year.
This increase in sales (vs 467 millions € combined growth in Q2 2012) mainly driven
by Ice Cream due to a good summer and strong promotional pressure and
innovation.
• Frozen Ready Meals mainly driven by Frozen Pizza and Frozen Snacks, which
provide “value for money” meal alternatives in the current economic climate when
compared to increasing prices in many other Frozen Food Categories.
• Across Europe, basic meal offers remain the best drivers for volume growth (French
Fries, Fish Sticks, Pizzas, Basic Vegetables…) when compared to more complex
meals BUT innovation and promotional support from National Brands remain two
strong levers to drive volume sales growth in response to changing consumer needs.
Europe includes: France, Germany, Italy, Netherlands, Spain and United Kingdom
Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12
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Frozen Food – SymphonyIRI Pulse Q3 2012
France
18.4% 1,000
993
822
800
676
Millions Euros
600
11.2%
27.0% 411
373
400
325
200
0.3% 10.1%
70
8.8% 9
1.9% 0
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Frozen Food – SymphonyIRI Pulse Q3 2012
France
Frozen Potato
Products
16.5
Frozen Ready
Meals 11.2
Category Insights
• Frozen Meat is still the leading contributor to Frozen Food value growth in France: +7,6%
growth. However, volume growth is only +0,5% in Q3 vs +2,8% in Q2 for the whole segment,
down to the wave of Charal innovations coming to an end along with reduced promotional
support. Private Label have not yet regained volume from Charal.
• Ice Cream in value growth in Q3 (+3,5%) helped by good weather during the summer. Strong
innovation support attracted consumers and generated value.
• Value growth for Frozen Ready Meals has slowed in Q3 (+1,1% vs +1,7% in Q2) along with
a strong volume decline. Impacted by good weather conditions during the summer and strong
seasonal presence and activation of Fresh Product categories.
• Generally speaking, this scenario is the same for all Savoury categories
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Frozen Food – SymphonyIRI Pulse Q3 2012
Germany
3,500
3,000
2,902
15.4%
2,500
Millions Euros
2,000
36.6%
1,500 1,372
9.0% 1,221
1,000
716
577 528
500
389
7.3% 215
2.7% 6.7% 0
4.9%
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Frozen Food – SymphonyIRI Pulse Q3 2012
Germany
Frozen Ready
Frozen Meat 101.7 -4.2 Meals
Frozen Potato
-5.1 Products
Ice Cream 28.2
Category Insights
• Private Label dominates the Frozen Meat category with a 53% share. Frozen Poultry
which alone contributes around 66% sales in this category has recorded value
growth of 7.1% helped by an increase in Price/Kg of 5.6%.
• Ice Cream which registered growth in the 3rd Quarter (2.4%) primarily due to
increases in promotional sales (circ 12%) driven mainly by multipacks which
contribute to 54% to overall sales. Discounters and Hypermarkets the key channels
driving category growth.
• Private Label also dominating the Frozen Fish category contributing to 60% of
category sales and is driving growth, growing at 8% in value and 7% in volume
terms.
• Frozen Dough & Bread Products has seen a decline in all channels with the
exception of Hypermarkets which has shown marginal growth in value terms +0.8%.
Pasta/Pastries which contributes almost 95% of the category sales has seen a
decline of -7.7%.
• All the sub-categories of Frozen Vegetables have declined in values terms,
Discounters is the only channel where there has been any growth (+1.1%).
Hypermarkets which contribute to more than 40% of sales is in decline by -3.8%.
• In the case of Frozen Desserts, marginal increases in the Fruit category cannot
compensate for the heavy losses of rest of the categories which ultimately ranked its
position in the top 5 losers.
Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12
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Frozen Food – SymphonyIRI Pulse Q3 2012
Italy
Millions Euros
685 678
600
30,3% 400
Key trends
Top 5 Categories Evolution
Value Sales (€) and % Change vs. Yr Ago
• The economic downturn continues to
have a negative impact on
consumption and volume sales.
1.064
• Price Inflation allows all the major
781 categories to maintain positive growth
685 678 in value but volume sales are in
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Frozen Food – SymphonyIRI Pulse Q3 2012
Italy
Frozen Ready
Meals 20,9
Frozen
Vegetables 8,9
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Frozen Food – SymphonyIRI Pulse Q3 2012
Netherlands
21.8%
400 372
350
300
43.3%
Millions Euros
250
12.6% 187
200
150
108
100
88
66
10.2%
0.5% 50
7.7% 19 11 4
0.5%
1.3%2.2%
0
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Frozen Food – SymphonyIRI Pulse Q3 2012
Netherlands
Frozen Ready
Meals
18.0
Frozen Potato
-0.9 Products
Frozen Fish 3.0
Category Insights
• Frozen Ready Meals is the biggest contributor to the growth driven by two of the major
segments: Frozen Meat Snacks and Frozen Pizza’s. Frozen Pizza’s shows the strongest
growth in value terms, driven by price inflation from Dr. Oetker Ristorante, which so far does
not seem to have led to a volume decline. Perhaps this is down to the fact that pizza is still a
cheaper meal alternative in todays economic climate. Frozen meat snacks shows the largest
growth in volume terms. Within Frozen Meat Snacks a ‘back to basics’ development seems
visible, with the traditional Dutch snacks showing growth, while oriental snacks (Spring rolls
and Sate) declining. Also a very strong growth for Party/Mini Snacks is visible, probably
related to the trend of spending more quality time at home with family and friends (in stead of
out of home).
• The second biggest contributor to the growth is Ice Cream. Surprisingly not directly driven by
the weather (multipacks hand held in decline) but mainly thanks to successful innovation
from Unilever with a single serve spoonable ice cream, making Ice Cream a more top of
mind convenient alternative for dessert or in between snack.
• Half of the growth in Frozen Fish is thanks to the traditional Fish Sticks. One of the reasons
for this growth is a strong rise of promotion pressure, along with this Fish Sticks perhaps
being considered as a value for money meal component in economic tough times. Other
Fish, including scale and shellfish gaining popularity (while meat volumes declines).
• Frozen Potato Products declining both in value and volume terms. Driven by both segments;
French Fries and specialties driven by Aviko and Private.
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Frozen Food – SymphonyIRI Pulse Q3 2012
Spain
Millions Euros
500
400
32.8% 24.1%
300
182
200
113
100 66
0.2% 10 5
0.4%2.9% 4.9% 7.9%
0
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Frozen Food – SymphonyIRI Pulse Q3 2012
Spain
Frozen Ready
Meals
24.7
Frozen Potato
-0.9 Products
Frozen Fish 10.6
Vegetables
2.3
Category Insights
• Nestle the leading manufacturer, with 7,3 pts market share (-0,3 YA), with sales in
decline by -3,6% in value and -4,6% in volume terms. The following manufacturers in
second and third place : Pescanova (+2%), Unilever (-6,1%) respectively.
• The new Findus Group (Findus+Bonduelle) has changed the landscape of the
Vegetable and Ready to Eat categories; enabling them to take brand leader position in
many segments. However, sales are in decline by -6,3% in value and -10,7% in
volume terms.
• The growth of the Pizza Category has slowed driven by Nestle and Dr Oetker. Both
vendors combined contributing to 60,5% of sales. Nestle contributing to 30,9% with
sales in decline by -6,4%. Dr Oetker with a marginally smaller share of 29,6pts
delivering positive value growth +2,3%.
• Ice Cream sales grew by +4,9%. Unilever being the market leader with 17,5% value
share with sales in decline by -6,2%. Private Label dominates the category with
69,1pts value share with year on year growth of +2,8%. In volume terms Private
Label is even more dominant contributing to 85% of total sales.
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Frozen Food – SymphonyIRI Pulse Q3 2012
United Kingdom
793
800
659
Millions Euros
600
14.7% 451
24.6% 400
222 184
200
10.1%
4.1% 4.9% 0
Key trends
Top 5 Categories Evolution
Value Sales (€) and % Change vs. Yr Ago
• Total Frozen Food sales continuing to
lag behind that of Ambient & Chilled
1,106
1,074
Foods both in Value & Volume terms –
more notably in volume.
• Ice Cream, Ready Meals, Fish &
793 Potato are the key drivers of growth.
659 Ice Cream and Ready Meals have the
majority share within Frozen Foods.
Millions
Data for the United Kingdom does not include Northern Ireland
Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12
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Frozen Food – SymphonyIRI Pulse Q3 2012
United Kingdom
Frozen Potato
Products
32.8
Frozen Ready
Meals
16.5
Category Insights
• Frozen Potato remains a key growth category within Frozen Foods fuelled by price inflation which is set
to increase given the poor crop harvest in the UK this year. Frozen Potato’s growth driven by new
listings, increased distribution and promotional volume – notably ‘off shelf’. ‘Jackets’ is the new area of
growth contributing to 55% of total category growth driven by McCain and is actually the second fastest
growing brand in absolute sales terms within Frozen Foods.
• Ice Cream – Value growth driven by inflation and NPD such as Walls Magnum Infinity and Ben & Jerrys
Core. Own Label also doing well with their ‘Me Too’ products. NPD and price inflation masking the overall
drop in volume sales driven by reduced promotional activity notably ‘Off Shelf’ and ‘Multi Buys’ and the
poor British weather.
• Ready Meals – Growth driven primarily by Frozen Pizza notably Chicago Town Deep Dish fuelled by
high levels of price promotions on and off shelf. Within Ready Meals it is brands such as Made for You
and Hungry Joes and Weight Watchers that are driving growth with Findus, Birds Eye & Own Label
losing out.
• Frozen Vegetables – Like many other categories in volume terms Frozen Vegetables are in decline.
Value growth driven by inflation and NPD. NPD focussing on convenience and added value such as
single serving steam/microwavable pouches initially driven by Birds Eye Field Fresh with Own Label ‘Me
Too’s’ now evident.
• Frozen Fish – NPD less of a driver of growth within this category. Birds Eye driving growth through high
levels of off shelf promotions along with NPD such as Jamie Oliver. The underlying health of the category
is in question with rates of sale off promotion in decline which could be down to two factors – increased
promotional reliance and also the expansion of the Chilled Fish category which is dominated by Own
Label but brands such as ‘The Saucy Fish Company’ promoting the chilled market with their recent
advertising campaigns.
Data for the United Kingdom does not include Northern Ireland
Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12
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Frozen Food – SymphonyIRI Pulse Q3 2012
Final Notes
Due to the diverse products found in individual countries across this market it was necessary to
consolidate the available data into the categories in this report. In some cases it wasn’t always possible
to align products across all 6 countries hence the need to highlight any anomalies in the report. Those
exceptions are listed below:
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Frozen Food – SymphonyIRI Pulse Q3 2012
Resources
To gain insight into opportunities across specific categories, segments, channels or retailers, contact
your SymphonyIRI client service representative regarding custom analyses leveraging the following
resources:
• InfoScan Census ® is a syndicated retail tracking service that enables manufacturers and retailers to
acquire industry insights used to make better business decisions. InfoScan Census utilizes the data
that SymphonyIRI Group collects from grocery, drug, and mass merchandise retailers to provide the
most comprehensive and accurate syndicated data offering in the Fast Moving Consumer Goods
(FMCG) sector. With access to accurate, granular detail by category, geography, measure, and time
period, clients have the tools needed to develop marketing and sales strategies based on product
performance, distribution, and promotion responsiveness. All data about frozen foods are coming from
InfoScan Census®.
• SymphonyIRI Consulting provide strategic insights and advice leveraging a variety of data sources,
predictive analytics, enabling technologies, and business analyses to help CPG manufacturers and
retailers address significant sales and marketing issues effectively
20 www.SymphonyIRI.eu