cooking sauces & food seasonings - brand licensing

Market Report 2006

Second Edition September 2006Edited by Isla Gower

ISBN 1-84729-016-7

Cooking Sauces & Food Seasonings

Cooking Sauces & Food Seasonings Foreword

Key Note Ltd 2006

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Cooking Sauces & Food Seasonings Contents

Key Note Ltd 2006

Contents

Executive Summary 1

1. Market Definition 2

REPORT COVERAGE.......................................................................................................................2

MARKET SECTORS..........................................................................................................................2

MARKET TRENDS............................................................................................................................2Attitudes Towards Cooking .............................................................................................................2Growth in Smaller Households ........................................................................................................2Staggered Eating Occasions.............................................................................................................3Lighter Eating Occasions ..................................................................................................................3Lack of Cooking Confidence ............................................................................................................3International Eating .........................................................................................................................3Supplier Activity................................................................................................................................3New Flavours and Cuisines...............................................................................................................3Provenance........................................................................................................................................4Packaging..........................................................................................................................................4Retailer Activity ................................................................................................................................4Healthy Eating ..................................................................................................................................4Barbecue Opportunities ...................................................................................................................5ECONOMIC TRENDS.......................................................................................................................5Gross Domestic Product....................................................................................................................5Table 1: UK Gross Domestic Product at Current and Annual Prices (£m), 2001-2005 ..................5Inflation.............................................................................................................................................6Table 2: UK Rate of Inflation (%), 2001-2005 .................................................................................6Household Disposable Income.........................................................................................................7Table 3: UK Household Disposable Income Per Capita (£), 2001-2005..........................................7MARKET POSITION ........................................................................................................................7The UK...............................................................................................................................................7Table 4: Consumer Expenditure on Food, Cooking Sauces and Food Seasonings (index 2001=100), 2001-2005.......................................................................8Figure 1: Consumer Expenditure on Food, Cooking Sauces and Food Seasonings (index 2001=100), 2001-2005.......................................................................8


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2. Market Size 9

THE TOTAL MARKET......................................................................................................................9Table 5: The Total UK Cooking Sauces and Food Seasonings Market by Sector by Value at Current Prices (£m at rsp), 2001-2005 .........................................................9Figure 2: The Total UK Cooking Sauces and Food Seasonings Market by Sector by Value at Current Prices (£m at rsp), 2001-2005 .......................................................10BY MARKET SECTOR....................................................................................................................10Figure 3: The Total UK Cooking Sauces and Food Seasonings Market by Sector by Value at Current Prices (%), 2005 ............................................................................11Cooking Sauces ...............................................................................................................................11Table 6: The UK Cooking Sauces Sector by Value at Current Prices (£m at rsp), 2001-2005 .......................................................................................12Pasta Sauces ....................................................................................................................................12Indian Sauces ..................................................................................................................................13Chinese and Oriental Sauces..........................................................................................................13British Recipes .................................................................................................................................13Other Cuisines.................................................................................................................................13Chilled Sauces .................................................................................................................................13Food Seasonings .............................................................................................................................14Table 7: The UK Food Seasonings Sector by Value at Current Prices (£m at rsp), 2001-2005 .......................................................................................14Salt...................................................................................................................................................14Herbs ...............................................................................................................................................15Spices ...............................................................................................................................................15

3. Industry Background 16

RECENT HISTORY..........................................................................................................................16

NUMBER OF COMPANIES ...........................................................................................................16Table 8: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Food and Beverages by Turnover Sizeband (number and %), 2005.......................................17EMPLOYMENT ..............................................................................................................................17Table 9: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Food and Beverages by Employment Sizeband (number and %), 2005.................................18REGIONAL VARIATIONS IN THE MARKETPLACE ....................................................................18

DISTRIBUTION...............................................................................................................................19Table 10: Retail Sales of Cooking Sauces and Food Seasonings by Distribution Channel by Value (%), 2005.................................................................................19Figure 4: Retail Sales of Cooking Sauces and Food Seasonings by Distribution Channel by Value (%), 2005.................................................................................20HOW ROBUST IS THE MARKET?................................................................................................20

LEGISLATION .................................................................................................................................20


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KEY TRADE ASSOCIATIONS........................................................................................................21Food and Drink Federation............................................................................................................21Salt Manufacturers’ Association ....................................................................................................22Seasoning and Spice Association...................................................................................................22

4. Competitor Analysis 23

THE MARKETPLACE .....................................................................................................................23

MARKET LEADERS........................................................................................................................23Campbell’s UK Ltd ..........................................................................................................................23G Costa and Co Ltd .........................................................................................................................24Discovery Foods Ltd ........................................................................................................................24General Mills UK Ltd.......................................................................................................................24HP Foods Ltd ...................................................................................................................................25JFC (UK) Ltd.....................................................................................................................................26Mars UK Ltd ....................................................................................................................................26McCormick (UK) Ltd........................................................................................................................27Premier International Foods UK Ltd..............................................................................................27RHM PLC..........................................................................................................................................28Sacla UK Ltd ....................................................................................................................................29Unilever UK Foods ..........................................................................................................................29Worldwing Investments Ltd...........................................................................................................30Other Companies............................................................................................................................31RH Amar & Co Ltd...........................................................................................................................31Dress Italian Ltd ..............................................................................................................................31English Provender Company Ltd....................................................................................................31Fiddes Payne Ltd .............................................................................................................................31Greencore Group PLC.....................................................................................................................32The Grocery Company Ltd..............................................................................................................32Maldon Crystal Salt Company Ltd .................................................................................................32The New Covent Garden Soup Co Ltd...........................................................................................32Princes Ltd .......................................................................................................................................32SHS Group Ltd.................................................................................................................................32Temple Foods Ltd ...........................................................................................................................33TRS Wholesale Co Ltd.....................................................................................................................33MARKETING ACTIVITY ................................................................................................................33Main Media Advertising Expenditure ...........................................................................................33Table 11: Main Media Advertising Expenditure on Cooking Sauces and Mixes (£000), Years Ending March 2005 and 2006..................................................................................33Recent Campaigns ..........................................................................................................................34JFC (UK) Ltd.....................................................................................................................................34Kikkoman .......................................................................................................................................34Mars UK Ltd ....................................................................................................................................34Dolmio ............................................................................................................................................34Uncle Ben’s .....................................................................................................................................34McCormick (UK) Ltd........................................................................................................................34


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Schwartz .........................................................................................................................................34Prince’s Ltd ......................................................................................................................................35Lee Kum Kee ..................................................................................................................................35RHM PLC..........................................................................................................................................35Sharwood’s .....................................................................................................................................35Unilever UK Foods ..........................................................................................................................35Knorr ..............................................................................................................................................35Bertolli ............................................................................................................................................35Exhibitions.......................................................................................................................................35

5. Strengths, Weaknesses, Opportunities and Threats 36

STRENGTHS....................................................................................................................................36WEAKNESSES ................................................................................................................................36

OPPORTUNITIES............................................................................................................................37

THREATS.........................................................................................................................................37

6. Buying Behaviour 38

CONSUMER PENETRATION.........................................................................................................38Table 12: Penetration of Cook-In Sauces, and Packeted, Tinned and Pour-Over Sauces in the Last 12 Months (% of main shoppers), 2002 and 2005 .....................................................38By Sex ..............................................................................................................................................39Table 13: Penetration of Cook-In Sauces, and Packeted, Tinned and Pour-Over Sauces in the Last 12 Months by Sex (% of main shoppers), 2005 ..........................................................39By Age .............................................................................................................................................39Table 14: Penetration of Cook-In Sauces, and Packeted, Tinned and Pour-Over Sauces in the Last 12 Months by Age (% of main shoppers), 2005 .........................................................40By Social Grade ...............................................................................................................................40Table 15: Penetration of Cook-In Sauces, and Packeted, Tinned and Pour-Over Sauces in the Last 12 Months by Social Grade (% of main shoppers), 2005 ...........................................41By Presence of Children..................................................................................................................41Table 16: Penetration of Cook-In Sauces, and Packeted, Tinned and Pour-Over Sauces in the Last 12 Months by Presence of Children (% of main shoppers), 2005 .............................42

7. Current Issues 43

COMPANY AND BRAND ACTIVITY ...........................................................................................43Cardini’s...........................................................................................................................................43Filippo Berio....................................................................................................................................43Jim Beam.........................................................................................................................................43Simply UK........................................................................................................................................43Spice-N-Tice.....................................................................................................................................43Tiger Tiger.......................................................................................................................................44


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SUDAN 1 SCARE ...........................................................................................................................44FOOD LABELLING.........................................................................................................................44

8. The Global Market 46

GLOBAL MARKETPLACE DEVELOPMENTS ..............................................................................46France ..............................................................................................................................................46Asian Amoy Sauce Business Sold ...................................................................................................46The UK.............................................................................................................................................46HP Ethnic Foods Sell-Off.................................................................................................................46The US .............................................................................................................................................46Kikkoman........................................................................................................................................46McCormick Restructure ..................................................................................................................46Organic Ragu from Unilever ..........................................................................................................46Vita Products and Budweiser Sauces .............................................................................................47

9. Forecasts 48

INTRODUCTION ............................................................................................................................48The Economy...................................................................................................................................48Gross Domestic Product..................................................................................................................48Table 17: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2006-2010 .........48Inflation...........................................................................................................................................48Table 18: Forecast UK Rate of Inflation (%), 2006-2010 ..............................................................49FORECASTS 2006 TO 2010 ..........................................................................................................49Table 19: The Forecast Total UK Cooking Sauces and Food Seasonings Market by Sector by Value at Current Prices (£m at rsp), 2006-2010 .......................................................50Figure 5: The Forecast Total UK Cooking Sauces and Food Seasonings Market by Sector by Value at Current Prices (£m at rsp), 2006-2010 .......................................................50MARKET GROWTH.......................................................................................................................51Figure 6: The Total UK Cooking Sauces and Food Seasonings Market by Sector by Value at Current Prices (£m at rsp), 2001-2010 .......................................................51FUTURE TRENDS ...........................................................................................................................52Demographics .................................................................................................................................52Table 20: Age Profile of the UK Population (000), 2003, 2006 and 2009....................................52Market Segmentation ....................................................................................................................53Product Development ....................................................................................................................53


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10. Company Profiles 54

HP Foods Ltd ...................................................................................................................................55Mars UK Ltd ....................................................................................................................................57Premier International Foods UK Ltd..............................................................................................59RHM PLC..........................................................................................................................................61Sacla UK Ltd ....................................................................................................................................63Worldwing Investments Ltd...........................................................................................................65

11. Consumer Confidence 67

METHODOLOGY...........................................................................................................................67KEY FINDINGS THIS QUARTER...................................................................................................67

THE WILLINGNESS TO BORROW ...............................................................................................68Confidence Declines Again ............................................................................................................68Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), May 2005, August 2005, November 2005, February 2006 and May 2006..............68Signs That the Decline Could be Bottoming Out .........................................................................70Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), May 2005, August 2005, November 2005, February 2006 and May 2006.............70THE WILLINGNESS TO SPEND FROM SAVINGS .......................................................................71Sharp Decline in Spending from Savings ......................................................................................71Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), May 2005, August 2005, November 2005, February 2006 and May 2006..............72Table D: The Proportion of Adults Without Any Savings (%), May 2005, August 2005, November 2005, February 2006 and May 2006 ............................................................................73Borrowing Grows in Relative Importance.....................................................................................73Table E: The Average Amounts Adults are Confident Spending to Purchase Expensive Items (£ and %), May 2005, August 2005, November 2005, February 2006 and May 2006.........................................................................................................73

12. Further Sources 75

Associations.....................................................................................................................................75General Sources ..............................................................................................................................75Government Sources ......................................................................................................................75Other Sources..................................................................................................................................76Bisnode Sources ..............................................................................................................................76


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Understanding TGI Data 80

Number, Profile, Penetration.........................................................................................................80Social Grade ....................................................................................................................................81Standard Region.............................................................................................................................81

Key Note Research 82

The Key Note Range of Reports 83

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Cooking Sauces & Food Seasonings Executive Summary

Executive Summary

The total UK market for cooking sauces and food seasonings has experienced ongoing value growth since 2001, reaching £570m at retail selling prices (rsp) in 2005. This represents a growth of 4% on 2004, and a rise of 13.8% over the whole period. The main products covered in this report are ambient, packet and fresh chilled sauces, and mixes; and salt, pepper and other spices.

The shift towards more convenient food options has impacted on the market. Increasing sales of ready meals and prepared meal centres has meant that more ‘involved’ products, such as cooking sauces — seasonings, in particular — have experienced some decline in volume. The growth in foodservice and eating out has also had an adverse affect on the market.

More positively, the increasing variety of cuisines and flavours available through shortcuts such as sauces and marinades has made home cooking more accessible to some consumers. As the cookery media has become entertainment rather than education, there has been demand for simple ways to achieve more interesting meals. The endorsement of convenience food ranges by celebrities, such as Loyd Grossman, has added to the perceived legitimacy of such products.

Value has also been developed as consumers have traded up to more authentic ingredients. National dishes have given some ground to regional and local recipes, as consumers have become more interested in eating less anglicised versions. Healthy-eating options offering lower fat, salt or sugar recipes also command premium prices, as do organic sauces and seasonings.

The success of the barbecue market has provided another opportunity for products that can be used as marinades in the preparation of foods. This has aided some brands in gaining a year-round presence: previously, products for hot, cooked dishes might have languished in the warmer weather.

There are a number of international players in the market, such as Campbell’s, General Mills, Mars and McCormick. High-profile brands include Dolmio, Uncle Ben’s, Sharwoods, Homepride and Kikkoman. These have attracted some promotional and advertising support for the sector.

Despite value growth since 2001, the penetration levels for cooking sauces and food seasonings have fallen, with around three in ten consumers buying in either category in 2005. However, the outlook for the sector still has positive aspects, as suppliers look to focus on adding value to products and the market as a whole. Key Note forecasts that, over the 5-year period to 2010, the cooking sauces and food seasonings market will rise by between 1.8% and 2.3% year on year.

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Cooking Sauces & Food Seasonings Market Definition

1. Market Definition

REPORT COVERAGE

This Key Note Market Report examines the UK retail market for cooking sauces, marinades and food seasonings. The report primarily focuses on ambient and chilled cooking sauces, and dried herbs and spices. Fresh herbs are excluded from the analysis.

MARKET SECTORS

The two main market sectors examined in this report are cooking sauces (including marinades) and food seasonings:

• Cooking sauces — this sector includes ambient, packet and fresh chilled sauces, and mixes. The products also vary according to usage, and can be divided broadly into those where foods are cooked in the sauce (cook-in sauces), and those that are poured over ingredients once they have been cooked (pour-over sauces). The range of cooking sauces available has been steadily expanding over the past decade, and a wide variety of recipes, from traditional to ethnic, are now available.

• Food seasonings — this sector covers salt, pepper and other spices. Food seasonings are used to enhance the flavours of foods. As consumers have become more educated about different foods and flavours, opportunities have arisen to offer a wider range of products. For example, salt is available in table, cooking, sea or flavoured variants. Herbs and spices have also become more widely available, and many products from international cuisines, such as Indian and Chinese spices, are now purchased.

MARKET TRENDS

Attitudes Towards Cooking

Cooking sauces are convenience products and, as such, have gained from changing attitudes towards cooking and eating in the UK. There has been a shift towards spending less time on food preparation or opting for more convenient options, as a result of a number of factors. These include the following:

Growth in Smaller Households

The average size of UK households is now 2.4 and, in 2005, 65% of households comprised just one or two people. The shift away from family households means that these homes are catering for fewer numbers, so they are more likely to minimise food-preparation times.

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Staggered Eating Occasions

Similarly, in larger households, the range of activities undertaken by members may negate communal meals and lead to staggered eating occasions where meals are eaten in smaller numbers or alone. This too has driven the trend towards convenience products.

Lighter Eating Occasions

Trends towards smaller, and more frequent, meal and snack occasions have meant that the need to prepare an elaborate and timely evening meal is no longer such an important factor. This too can act against cooking from scratch.

The need to offer products for smaller eating occasions has been recognised through the development of products serving one or two people, or with longer in-home lives once opened. Both Sharwood’s and Knorr introduced such products in 2006.

Lack of Cooking Confidence

With cookery no longer being prioritised in school curriculums, and with more than a generation having been brought up without a traditional housewife role in the household, many consumers simply do not have the knowledge or skill to prepare meals from scratch.

International Eating

Even where consumers are able to prepare a range of meals, the shift towards more international eating means that there are likely to be gaps in knowledge. These gaps can be filled with cooking sauces and convenience products.

Supplier Activity

The demand for a range of convenient food-preparation options has been effectively targeted by manufacturers of cooking sauces.

New Flavours and Cuisines

Consumers are looking for a greater variety of products in order to change their meal portfolio. This has created the opportunity for suppliers to persuade consumers to trade up. For example, in 2006, Sharwood’s introduced a premium range of cooking sauces from Sri Lanka, Nepal and Malaysia. In addition, Patak’s introduced a range of regional recipe sauces.

As consumers have become more familiar with classic, established recipes, some are looking to trade up to more authentic products. These consumers are looking for something different, but they are anxious to remain within particular cuisines. As such, they might choose to opt for a pesto sauce rather than a tomato-based standard recipe.

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Provenance

Provenance is gaining increasing importance in the food market as a whole. Consumers want some reassurance, not only about recipes but also about the ingredients, to confirm quality and authenticity. A further aspect of this has been expertise, with more suppliers offering products made in the recipe’s country of origin. For example, Sacla has launched a range of Classic Italian sauces made in Italy. In addition, consumers may look to media cookery shows that specify recipes and regionality, such as Jamie’s Italy. However, this is simpler for some cuisines than for others.

Packaging

Glass jars have taken the lead in packaging formats, as consumers are able to view contents easily while meeting safety and hygiene requirements, but there has been some development in pouch formats, particularly for ethnic recipes. Brands such as Amoy offer wet sauces in this format, often for smaller-serve products. It is easier to include this type of smaller product alongside items such as noodles in-store to prompt consumers to think in terms of meal solutions.

Retailer Activity

In the ethnic cuisines market, there has been particular activity on the part of retailers. For example, ASDA has created a new ‘ethnic manager’ role to ensure the continuous development of this category. In addition, Somerfield and Kwik Save have commented on the need to develop products for a wider consumer base, particularly in multicultural areas such as Birmingham, Bradford and key parts of London.

Healthy Eating

Healthy eating remains an important driver across the food market as a whole. The Government has prioritised the need to educate consumers on healthy-eating issues, and 2005/2006 saw particular activity relating to salt and food labelling (see Chapter 7 — Current Issues).

In 2005, the Government specifically targeted salt reduction with advertising featuring the Sid the Slug character. This was followed up with a campaign urging consumers to read ingredient labels on processed foods to find out about salt levels. At the same time, suppliers have been in talks with the Food Standards Agency (FSA) about salt levels in foods and specific targets for reduction have been set.

The introduction of clearer nutritional labelling on foods has already started to have an impact, with reports of falling sales of certain foods with higher fat, sugar or salt levels (see Chapter 7 — Current Issues). As consumers are beginning to act on this advice, suppliers are having to be more exacting in developing new products.

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Barbecue Opportunities

The summer months can see a deterioration in sales of cooking sauces, as consumers opt for lighter and cold meals. However, the growth in outdoor eating, and barbecues in particular, has been effectively targeted by suppliers.

The rise of the barbecue market has been particularly important for marinades. As barbecue occasions have become more common, there has been a trading up from barbecue sauces to more exotic flavours, such as Chinese, Thai and Indian. Brands such as Nando’s have benefited from this trend. According to The Grocery Company Ltd, which distributes the brand, ‘consumers are happy to spend more on barbecuing because it is considered the new dinner party. Dining outside is seen as exciting’.

Brands such as Discovery Foods have also been targeting this market, encouraging consumers to use cooking sauces as well as condiments. However, the company has commented that it is difficult to educate consumers and get them to experiment, as it can be difficult to promote in-store.

Some brands, such as Kikkoman, have invested in television advertising. The company’s Teriyaki marinade gained exposure through television commercials from May 2006.

ECONOMIC TRENDS

Gross Domestic Product

Between 2001 and 2005, UK gross domestic product (GDP) showed year-on-year increases, reaching £1,209.33bn at current prices. This implies growth in the economy, which has contributed to a positive investment environment. In turn, this has encouraged product innovation and brand development. This has been apparent in ongoing activity among major suppliers, including new product development (NPD) and investment in relaunches and advertising.

Table 1: UK Gross Domestic Product at Current and Annual Prices (£m), 2001-2005

2001 2002 2003 2004 2005

Current prices 996,758 1,048,456 1,105,919 1,164,541 1,209,334

% change

year-on-year - 5.2 5.5 5.3 3.8

Table continues...

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Inflation

The UK rate of inflation has remained very low since the late 1990s. In fact, household disposable income levels (see Table 3) have been growing at a faster rate, meaning that consumers have been able to stretch their income further and purchase more in terms of volume or value items. This has been one of the factors behind higher spending in the food market as a whole.

...table continued

2001 2002 2003 2004 2005

Annual chain-linked

GDP 1,027,905 1,048,456 1,074,858 1,108,464 1,128,680

% change

year-on-year - 2.0 2.5 3.1 1.8

GDP — gross domestic product

Source: National Accounts, Main Aggregates 1948-2005, National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)

Table 1: UK Gross Domestic Product at Current and Annual Prices (£m), 2001-2005

Table 2: UK Rate of Inflation (%), 2001-2005

2001 2002 2003 2004 2005

Inflation (%) 1.8 1.6 2.9 3.0 2.8

Percentage point

change year-on-year - -0.2 1.3 0.1 -0.2

Note: inflation is at retail price index (RPI).

Source: Monthly Digest, May 2006, National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)

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Household Disposable Income

Household disposable income shows how consumer spending has developed and, again, there has been a year-on-year rise since the late 1990s. In 2005, household disposable income per capita reached £13,451, an increase of 4.1% on 2004. Growing levels of disposable income mean that consumers have been in a comfortable position to pay for premium products and to trial new brands.

MARKET POSITION

The UK

Consumer expenditure on cooking sauces and food seasonings has grown ahead of expenditure in the UK food market as a whole. As consumers have moved away from cooking from scratch and have chosen more convenient options and shortcuts, products such as cooking sauces have gained. Suppliers have also played a key role in developing product ranges to offer consumers greater variety. In addition, premium ranges and added-value sauces have encouraged higher expenditure levels.

Table 3: UK Household Disposable Income Per Capita (£), 2001-2005

2001 2002 2003 2004 2005

Household

disposable income (£) 11,643 11,971 12,499 12,926 13,451

% change year-on-year - 2.8 4.4 3.4 4.1

Source: Economic Trends, May 2006, National Statistics website © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)

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Table 4: Consumer Expenditure on Food, Cooking Sauces and Food Seasonings (index 2001=100), 2001-2005

Consumer Expenditure on

Consumer Expenditure Cooking Sauces and on Food Food Seasonings

2001 100 100

2002 103 103

2003 105 106

2004 107 109

2005 111 114

Source: National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note

Figure 1: Consumer Expenditure on Food, Cooking Sauces and Food Seasonings (index 2001=100), 2001-2005

Source: National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)/Key Note

100

102

104

106

108

110

112

114

2001 2002 2003 2004 2005

Food

Cooking sauces and foodseasonings

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Cooking Sauces & Food Seasonings Market Size

2. Market Size

THE TOTAL MARKET

The total UK cooking sauces and food seasonings market has managed to achieve growth ahead of inflation since 2001. This is largely attributable to the gains made in the cooking sauces sector, as sales of food seasonings have tended to stagnate.

The cooking sauces sector is beginning to mature and has a high level of consumer penetration. Many brands are centred on the middle market tier, and this has been the focus of price-based competition. Retailer policies focused on offering everyday low pricing have also been an issue in driving and keeping prices down. This has been exacerbated by ‘buy one, get one free’ (BOGOF) promotions, which may have led some consumers to stockpile at lower prices. This has countered the effects of a shift towards more premium recipes by some brands and has acted to depress potential market increases.

In 2005, the total UK cooking sauces and food seasonings market was worth £570m at retail selling prices (rsp), a rise of 4% on 2004. Between 2001 and 2005, the market grew by 13.8%. (It should be noted that the data in this report have been revised in line with the latest trade estimates.)

Table 5: The Total UK Cooking Sauces and Food Seasonings Market by Sector by Value at Current Prices

(£m at rsp), 2001-2005

2001 2002 2003 2004 2005

Cooking sauces 416 432 443 459 480

Food seasonings 85 86 88 89 90

Total 501 518 531 548 570


rsp — retail selling prices

Source: Key Note

Want more detail? Order further customised analysis through IRN Research on [email protected]. See Further Sources for more on this service.

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BY MARKET SECTOR

Cooking sauces is the largest sector of the market, accounting for 84.2% of the total value in 2005.

Figure 2: The Total UK Cooking Sauces and Food Seasonings Market by Sector by Value at Current Prices

(£m at rsp), 2001-2005


Source: Key Note


0

100

200

300

400

500

600

2001 2002 2003 2004 2005

Food seasonings

Cooking sauces



Cooking Sauces

The cooking sauces sector comprises three main types:

• cook-in sauce — where foods are cooked in the sauce, e.g. stir-fry sauces

• pasta sauce — for use with pasta, e.g. bolognese or carbonara sauces

• pour-over sauce — where the sauce is poured over once the main ingredients have cooked, e.g. a red-wine sauce to be served with steak.

In addition to these, dry sauces can be mixed with water before using, and marinades are pastes and sauces that are used to coat meats and vegetables before cooking.

The cooking sauces sector has maintained growth in real terms since 2001. Although some subsectors are maturing, new product development (NPD) is ongoing and has been effective in targeting higher spending on some products. Much of the activity in the sector has centred on encouraging consumers to trade up.

In 2005, the cooking sauces sector was worth £480m at rsp, a rise of 4.6% on 2004 (see Table 6).

Figure 3: The Total UK Cooking Sauces and Food Seasonings Market by Sector by Value at Current Prices (%), 2005

Source: Key Note


Food seasonings15.8%

Cooking sauces84.2%



According to Napolina, there are two main price points for ambient sauces — standard sauces retail at around the £1 mark, and premium sauces range from £1.49 to £1.70. It is anticipated that breaking the £2 mark will move the sector upmarket, with factors such as organics, healthy eating and premium ingredients all viewed as routes to achieving this.

The sector is aided by changing attitudes towards cooking and food preparation. With the amount of time spent preparing meals falling, options that offer simplicity and ease of preparation, such as cooking sauces, are seen as being vital by many households.

Pasta Sauces

The ambient wet cooking sauces sector is led by Italian pasta sauces, with brands such as Dolmio and Bertolli. These sauces are very easily combined with pasta to offer quick meals. The introduction of ‘with pasta’ products for the microwave has added further value to the market. Many consumers are looking at a window of less than half an hour to prepare meals, and pasta and sauce dishes fit this well.

Value-added activity has included the addition of vegetables, targeting consumer interest in healthy eating and offering a more complete meal solution. Increased authenticity has also been a factor. For example, the Loyd Grossman range of pesto sauces are made with traditional methods in Tuscany. This type of quality might push consumers upmarket.

The Italian sector also gains from substantial promotional investment. The major brands, led by Dolmio, keep these sauces in the public eye.

Table 6: The UK Cooking Sauces Sector by Value at Current Prices (£m at rsp), 2001-2005

2001 2002 2003 2004 2005

Value (£m) 416 432 443 459 480


Sector share of total market (%) 83.0 83.4 83.4 83.8 84.2


Source: Key Note




Indian Sauces

Indian sauces are ranked second in the wet-sauces category. Suppliers such as Patak’s have been gearing recent product development towards more regional recipes. As consumers have become more educated in classic restaurant and takeaway-inspired recipes, they are becoming more adventurous. At the same time, the use of more authentic ingredients and specialised dishes offers the opportunity to trade up.

Chinese and Oriental Sauces

The oriental sauces subsector is seeing similar developments, with more regional offerings. This is evident across the entire product portfolio, including ready meals and accompaniments. Occasions such as Chinese New Year act as an ideal focus for promotional activity. In addition, suppliers are looking to events such as the Beijing Olympics to place a further spotlight on Chinese cuisine.

British Recipes

British recipes also form an important segment, with brands such as Homepride in the wet-sauces category and Colman’s in dry packet sauces. The revival of interest in traditional British dishes — engendered by media interest, including cookery books and television programmes such as Gary Rhodes’ Great British Classics and Rick Stein’s Food Heroes — has played a part. Although consumers watch such recipes being made from scratch as entertainment, they are happy to opt for shortcuts when it comes to preparing their own.

Many British-inspired recipes have a major presence in the pour-over sauces sector, including packet mixes, although these have lost ground to wet products.

Other Cuisines

Other cuisines that are making headway include Mexican, with television advertising by brands such as Old El Paso adding a focus. Thai is often listed alongside Chinese recipes and is gaining ground as an increasing number of restaurants offer ‘classics’, such as red and green curries. Malaysian, Korean and Jamaican sauces are also beginning to gain wider distribution.

Chilled Sauces

There has also been some development in chilled sauces. These products, which tend to centre on retailer own-brand offerings, are generally premium priced, tying with their added convenience and fresh positioning. Brands include New Covent Garden and Marks & Spencer’s Cook!. Patak’s also introduced a chilled range in 2005. Products in this category still account for a minority of sales, at around 10%, but chilled remains one of the fastest-growing sectors of the market.



Food Seasonings

Food seasonings comprise primary products, such as salt, pepper, herbs and spices, that are used to flavour food in cooking.

There has been very limited growth in the food seasonings sector since 2001. A major factor in this has been the shift towards more convenient food options and away from cooking from scratch. The relatively long home life of dried products, in particular, has meant that they are not replenished often and have been phased out in some households.

Other factors affecting the sector include the following:

• the growing number of smaller households without the need or desire to cook from ingredients

• a rise in the number of meals taken outside the home

• the introduction of more meal kits, and other shortcuts and conveniences.

The food seasonings sector was worth £90m at rsp in 2005, an increase of 1.1% on 2004.

Salt

In the salt category, the most significant developments have been in sea and rock salt. The low-sodium sector has also made gains as a result of government activity encouraging consumers to reduce their salt intake. Although salt suppliers have been affected by such campaigning, the bulk of the reduction is being targeted on salt contained in processed foods.

Table 7: The UK Food Seasonings Sector by Value at Current Prices (£m at rsp), 2001-2005

2001 2002 2003 2004 2005

Value (£m) 85 86 88 89 90


Sector share of total market (%) 17.0 16.6 16.6 16.2 15.8


Source: Key Note




Herbs

The dried herbs subsector has also suffered from the development of fresh products that have gained greater distribution at retail level. The branded presence of suppliers such as Schwartz and Barts has come under increasing pressure from retailer own labels. This has challenged not only price levels, but also in-store space.

Spices

Growth within the spices category tends to be focused on products such as preblended seasoning mixes and spice kits. For example, in the ethnic foods market, there has been a shift away from basic ‘curry powders’ towards recipe-specific blends, such as Rogan Josh. This move addresses more adventurous, but still fairly cautious, consumers.


Cooking Sauces & Food Seasonings Industry Background

3. Industry Background

RECENT HISTORY

The total UK cooking sauces and food seasonings market has developed strongly since the 1990s, driven by consumer demand for convenient products. This trend has been boosted not only by ‘time-poor, cash-rich’ purchasers, but also by those who do not have the knowledge or confidence to cook from scratch.

The basis for market development was the increasingly international UK food palate. With an established international restaurant and takeaway base, consumers were eager to extend their in-home meal repertoire in line with their eating-out experiences. While ready meals provided one route, the need to supply family meals was a more important factor in the development of cooking sauces, and brands such as Chicken Tonight emerged.

The shift towards a shorter food-preparation period also drove the rise in the Italian foods market, led by pasta and associated products. The entry and investment of major brands, such as Dolmio, did much to target and grow this demand.

With a number of major brands now competing in the market, pricing has become increasingly competitive. As a result, suppliers are looking to add further product differentials to avoid a price focus. This has given rise to growth in the premium market, with more sophisticated recipes and authentic ingredients.

NUMBER OF COMPANIES

There are no separate statistics available for cooking sauce and food seasoning manufacturers to gauge the scale of the market. As such, this market must be examined in the context of the food industry as a whole.

The food manufacturing industry in the UK comprises more than 6,000 companies. These vary greatly in size and include some of the largest, as well as the smallest, businesses in the country. As the food industry is made up of such a wide range of products, there is scope for many different types of business to operate.

The largest companies tend to be national operators, which are in a position to support their brand portfolio or supply retailer own-label products nationally. Smaller groups might specialise in terms of product type or confine their activities to local geographic markets.

In 2005, there were 6,310 UK VAT-based enterprises engaged in the manufacture of food and beverages. Of these, 33.8% had turnovers of £1m or more. The single largest category was enterprises with turnovers of between £100,000 and £249,000, which accounted for 20.6% of the total in 2005 (see Table 8).



EMPLOYMENT

The food industry is a major employer in the UK, with a large number of businesses involved in the market. For the most part, enterprises tend to be relatively small in terms of the number employed — in 2005, 58.9% of UK VAT-based enterprises engaged in the manufacture of food and beverages employed fewer than ten people (see Table 9). This is to be expected, given that many products are batch processed and, as a result, the manufacture of food tends to be capital intensive.

Table 8: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Food and Beverages by Turnover Sizeband

(number and %), 2005

Number of Enterprises % of Total

Turnover Sizeband (£000)

0 -49 600 9.5

50-99 800 12.7

100-249 1,300 20.6

250-499 840 13.3

500-999 640 10.1

1,000-4,999 1,125 17.8

5,000+ 1,005 15.9

Total 6,310 †100.0

† — does not sum due to rounding

Source: UK Business: Activity, Size and Location 2005, National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)



REGIONAL VARIATIONS IN THE MARKETPLACE

The cooking sauces and food seasonings market has limited regional variation. Strong brands and lines of distribution mean that the more prominent brands are nationally distributed through the grocery network. However, differences in population can mean that cities, for example, with international populations, are more likely to see specialist outlets for particular nationalities. In addition, the multiples have started to target in-store product offerings at local markets, which might also include more global foods.

Table 9: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Food and Beverages by Employment Sizeband

(number and %), 2005

Number of Enterprises % of Total

Number of Employees

0-4 2,585 41.1

5-9 1,120 17.8

10-19 785 12.5

20-49 825 13.1

50-99 380 6.0

100-249 320 5.1

250+ 275 4.4

Total 6,290 100.0

Source: UK Business: Activity, Size and Location 2005, National Statistics © Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queen’s Printer for Scotland)



DISTRIBUTION

The distribution of cooking sauces and food seasonings is dominated by the major grocery multiples. Not only are these retailers able to offer a fuller range of products to consumers, but they have also been active in developing their own brands and products in the sector. The retailer own-label sector has evolved with a more tiered offering, including the following:

• value

• standard

• premium

• healthy eating.

This has contributed to differentiation in the market, with accompanying variations in price points and product offerings.

Independents and other outlets offer a narrower range of branded, as well as wholesaler-label, products. The restrictions on space in these outlets mean that the offerings centre on ambient items, with little scope for chilled sauces.

Specialist grocers, such as delicatessens and ethnic supermarkets, tend to have a much wider offering of both sauces and seasonings to cater for their clientele.

In 2005, grocery multiples accounted for the majority (87%) of retail sales of cooking sauces and food seasonings.

Table 10: Retail Sales of Cooking Sauces and Food Seasonings by Distribution Channel by Value (%), 2005

Grocery multiples 87

Independent grocers and co-operatives 9

Others 4

Total 100

Source: Key Note




HOW ROBUST IS THE MARKET?

The cooking sauces and food seasonings market is relatively robust, with a large number of brands and suppliers. As with many other food markets, a major potential threat is that of food scares. The sector weathered concerns surrounding Sudan 1 in 2005 relatively well (see Chapter 7 — Current Issues), indicating the level of stability in the market.

LEGISLATION

As part of the food and retail market, suppliers of cooking sauces and food seasonings are subject to a wide range of legislation in a number of areas. The list below is taken from Food Law (www.food.gov.uk) in June 2004. In cases where regulations specify England there is often equivalent regulation for Scotland and Wales.

• Trade Descriptions Act 1968

• Consumer Protection Act 1987

• Materials and Articles in Contact with Food Regulations 1987

• Weights & Measures Act 1988

Figure 4: Retail Sales of Cooking Sauces and Food Seasonings by Distribution Channel by Value (%), 2005

Source: Key Note


Independent grocers and

co-operatives9%

Others4%

Grocery multiples87%



• Food Safety Act 1990

• Flavourings in Food Regulations 1992

• Food Additives Regulations 1992

• General Product Safety Regulations 1994

• Colours in Food Regulations 1995 and amendments: 2000 and 2001

• Miscellaneous Food Additive Regulations and amendments: 1995, 1999, 2001 and 2003

• Sweeteners in Food Regulations 1995 and amendments: 1996, 1997, 1999, 2001, 2002 and 2003

• Food Labelling Regulations 1996

• Food (Lot Marking) Regulations 1996

• Food Premises Registration (Amendment) Regulations 1997

• Imported Food Regulations 1997

• Food Standards Act 1999

• Organic Products Regulations 2001

• Contaminants in Food (England) Regulations 2003

• Organic Products (Imports from Third Countries) Regulations 2003.

KEY TRADE ASSOCIATIONS

Food and Drink Federation

The Food and Drink Federation (FDF) represents the UK food and drink manufacturing industry.

The Federation helps its members to operate in an appropriately regulated marketplace, in order to maximise their competitiveness. The FDF communicates industry values and concerns to a range of audiences in the UK and abroad, including the Government, regulators, consumers and the media. In addition, it works in partnership with other major players in the food chain to help ensure that food is safe and that consumers can have confidence in it. Members include both large and small food and drink manufacturing companies, and trade associations dealing with specific food and drink sectors.



Salt Manufacturers’ Association

The Salt Manufacturers’ Association (SMA) is the trade association representing UK manufacturers of salt for domestic, catering, water-softening, industrial and de-icing uses.

The Association supports its members by:

• representing the views and objectives of the salt industry to relevant government and international organisations

• providing a forum where members can exchange knowledge and scientific information on research, legislation, diet and nutrition, technical training, and health and safety issues

• promoting balanced exposure for scientific research on salt and human health.

The SMA is a member of the European Salt Producers’ Association (ESPA) and subscribes to its code of practice, which promotes responsible care with the participation of employees, customers, users and communities. Concern for health, safety, environmental and quality issues forms an integral part of its business policy.

Seasoning and Spice Association

The mission of the Seasoning and Spice Association (SSA) is to be the leading voice of the UK food seasonings and spice industry in the interests of members, food manufacturers and consumers.

The SSA’s principal objective is to promote and protect the interests of its members in all matters relating to the trade in, and processing, marketing and distribution of, seasonings, herbs and spices, and similar products.


Cooking Sauces & Food Seasonings Competitor Analysis

4. Competitor Analysis

THE MARKETPLACE

The cooking sauces and food seasonings market is supplied by a diverse range of companies. With the drive for diversity and authenticity, there is scope for a number of smaller brands, including international names that might gain distribution through importers and distributors. However, the mass market is primarily catered for by the larger labels, such as Dolmio, Uncle Ben’s and others. Retailer own brands also take an important role, as with many other food markets.

MARKET LEADERS

Campbell’s UK Ltd

Company Structure

Campbell’s UK Ltd is a subsidiary of the US-based company most famous for its soup. Brands owned by the group that are relevant to the cooking sauces and food seasonings market include Oxo stock and Homepride cooking sauces. In March 2006, Campbell’s announced that it would consider selling its UK and Republic of Ireland businesses following a strategic review of its international assets. This would include brands such as Oxo and Homepride. In July 2006, Premier Foods bought the businesses for £450m.

Current and Future Developments

In September 2005, Homepride announced the introduction of five new varieties in its traditional cooking sauces jar range. The new varieties included: Creamy Stroganoff, Cheese Vegetable Bake, Smokey Barbecue and Fish Pie. The range was launched in September 2004.

Financial Results

In the year ending 31st July 2005, Campbell’s UK Ltd recorded a pre-tax profit of £3.5m on a turnover of £23,000. In the previous year, the company made a pre-tax profit of £13.9m.



G Costa and Co Ltd

Company Structure

G Costa & Co Ltd imports and distributes fine foods, and supplies a range of retail food products under the Blue Dragon brand. The brand focuses on oriental foods. Other brands supplied by the group include Nong Shim, Maille and Tabasco.


New products in the Blue Dragon range in 2005 included a Vietnamese meal kit and noodle products.

Financial Results

In the year ending 17th September 2005, turnover for G Costa and Co Ltd was £47.3m, a rise of 48.1% on 2004. The company made a pre-tax profit of £612,000 in 2005, compared with a pre-tax profit of £2m in 2004.

Discovery Foods Ltd

Company Structure

Discovery Foods Ltd, which is a family owned company, supplies mainly Mexican and US (e.g. Cajun) food products. The range includes dinner kits, seasonings and cooking sauces.


Discovery Foods introduced two-step sauces from 2006. The Cajun Chicken, Chilli Con Carne and Fajita variants aimed to create stronger flavours, which are more commonly found in Mexican cooking.

Financial Results

Discovery Foods Ltd recorded a turnover of £32.1m and a pre-tax profit of £716,000 in the year ending 31st October 2004. This compares with a turnover of £28.5m and a pre-tax profit of £1.1m in 2003.

General Mills UK Ltd

Company Structure

General Mills UK Ltd supplies a wide range of food products, including the Old El Paso Mexican range.




In July 2006, the Old El Paso brand announced a revamp. Three new sauces were added to the range: Roasted Garlic & Chilli; Hot Chilli Con Carne; and Smoked Chilli & Sweet Peppers. The three existing sauces were reformulated to offer more ‘robust and authentic’ flavours. A new look, slimmer jar was also introduced and the brand will be supported with an advertising spend of £5m.

The Old El Paso brand was extended into grated cheese in 2006. The speciality blend of cheddar and mozzarella, Jalapeno peppers, red and green peppers, and capsicum seeds was developed following research indicating a gap in the market for cheese for specific eating occasions.

Financial Results

In the year ending 30th April 2005, turnover for General Mills UK Ltd was £136.5m, a decrease of 11.6% on 2004. Pre-tax profit fell by 9.7%, to £2.6m.

HP Foods Ltd

Company Structure

In February 2006, the Competition Commission provisionally cleared HJ Heinz’s £470m takeover of the HP Foods Group, which was previously owned by Groupe Danone. HP Foods Ltd supplies the Amoy brand, as well as Lea & Perrins Worcestershire sauce and the Rajah range of herbs and spices.


In October 2005, Amoy announced the introduction of a premium soy sauce, seeking a similar positioning to balsamic vinegar in the vinegar market. Amoy Premium Soy Sauce is fermented from the first pressing of the soy bean, offering extra flavour. The packaging has a more contemporary feel, with a black glass bottle with square shoulders to stand out from the shelf.

Amoy Stir Fry Sensations were also introduced in 2005. Eight recipes were offered, packaged in clear plastic sachets with an outer card sleeve.

The Rajah Indian brand saw the addition of a ready meals offering in 2006. This formed part of the planned extension of the brand. The dishes are available in 300-gram (g) ambient pouches.

Financial Results

In the year ending 31st December 2004, HP Foods Ltd made a pre-tax profit of £32.7m on a turnover of £133.2m. This compares with a pre-tax profit of £28.8m on a turnover of £124.9m in 2003.



JFC (UK) Ltd

Company Structure

JFC (UK) Ltd supplies the Kikkoman brand. The company is part of the Japan-based Kikkoman Corporation, which is the world’s largest producer of soy sauce.


During 2005/2006, JFC invested in television advertising for the Kikkoman brand, as well as in-store activity.

Financial Results

In the year ending 31st December 2004, JFC (UK) Ltd recorded a turnover of £8m, a rise of 14.6% on 2003. The company made a pre-tax profit of £410,000 in 2004, compared with a pre-tax profit of £274,000 in 2003.

Mars UK Ltd

Company Structure

Mars UK Ltd is a widely based food group in US ownership. In the cooking sauces sector, its brands include Dolmio and Uncle Ben’s.


From March 2005, Dolmio Chunky sauces — pasta sauces with additional chunks of vegetables — were introduced. The initial offering comprised Chunky Mediterranean Vegetables, Chunky Onion & Garlic, Chunky Mushroom & Courgette and Chunky Sweet Pepper. The tomato-based variants are colour coded to give shelf standout.

My Dolmio, an ambient range of sauces, was launched in May 2006. The range of pasta sauces and pastas target 8 to 12 year-olds, and come in easy-pour pouches for microwave cooking. The company commented that households with children were responsible for growth in the cooking sauces market, and that parents were increasingly looking for products designed specifically for children.

The Dolmio sauce range was revamped in 2006. Changes included a new logo in a leaf shape, incorporating the brand’s signature colour green.

Financial Results

Mars UK Ltd recorded a turnover of £1.56bn and a pre-tax profit of £171.5m in the 53 weeks ending 1st January 2005. This compares with a turnover of £1.55bn and a pre-tax profit of £146.1m in the year ending 27th December 2003.



McCormick (UK) Ltd

Company Structure

McCormick (UK) Ltd, which is owned by the US-based McCormick & Co Inc, is the leader in the UK branded-seasonings market, with its Schwartz range of dried herbs and spices, and Real Pastes.


Schwartz remains the leading player in the dried-seasonings market.

Six new Schwartz Shotz products were introduced in 2005. The products comprise blends of seasonings for added convenience and target less-experienced cooks.

Financial Results

In the year ending 30th November 2005, turnover for McCormick (UK) Ltd decreased by 3.4%, to £144.6m. The company made a pre-tax loss of £3m in 2005, compared with a pre-tax loss of £685,000 in 2004.

Premier International Foods UK Ltd

Company Structure

Premier International Foods UK Ltd supplies a range of foods, including the Loyd Grossman cooking sauces brand. The company acquired further brands, including Homepride, with the acquisition of Campbell’s UK and Republic of Ireland businesses in 2006.


At the beginning of 2005, the Food Standards Agency (FSA) advised retailers and food manufacturers to withdraw from sale any products that may have contained Worcester sauce supplied to them from a specific batch manufactured by Premier Foods. This followed a Quality Assurance check, which revealed the presence of Sudan 1 in Worcester sauce, through the contamination of a batch of chilli powder. Sudan 1 is a colourant, which is not permitted for use in food products (see Chapter 7 — Current Issues).

During 2005, four creamy recipe sauces were added to the Loyd Grossman portfolio: Carbonara with Pancetta; Tomato & Mascarpone with Vodka; Porcini Mushroom with Amontillado Sherry; and Béchamel Sauce for Lasagne. Green and red pestos made in Tuscany using traditional methods were added to the Loyd Grossman range in 2006.

The Loyd Grossman range also saw the addition of Tomato, Green Olive and Roasted Red Chilli cooking sauce from April 2006. The aim of the seasonal aspect was to target more adventurous consumers seeking to try new flavours. For autumn 2005, the seasonal introduction was Tomato & Chargrilled Courgette.



Financial Results

In the year ending 31st December 2004, turnover for Premier International Foods UK Ltd was £140.4m, a decrease of 1.8% on 2003. The company made a pre-tax profit of £28m in 2004, compared with a pre-tax profit of £26.1m in 2003.

RHM PLC

Company Structure

RHM PLC operates in a number of food sectors, including cooking sauces through its Sharwood’s brand. The company also supplies the Cerebos salt brand.

RHM was floated on the stock exchange in July 2005. In initial trading, around 63% of shares were sold to corporate investors, with the remainder of the business continuing to be owned by private equity firm Doughty Hanson.


In March 2005, RHM announced a restructure from four business groupings into three. The new units are: Cake and Customer Partnerships; Culinary Brands (including Sharwood’s, Bisto, etc.); and Bread Bakeries.

During 2005, Sharwood’s introduced a range of products targeting the barbecue market. Sharwood’s Grill, BBQ or Bake sauces targeted summer eating and were introduced from May. Four flavours were introduced: Thai Sweet Chilli & Herb; Tandoori; Chinese BBQ; and Spicy Mango. The sauce can be brushed on to meat or vegetables before cooking and does not require marinading. The products also target lighter eating occasions.

Also in 2005, it was reported that Sharwood’s planned to run product development initiatives every 6 months, with the aim of growing the Asian food market by £100m over a 3-year period.

In July 2006, Sharwood’s launched a new luxury sauce range. The six-strong portfolio comprised more specialised recipes than standard Indian, Chinese and Thai dishes. These included Lasoon Masala from Nepal; Sri Lankan Devil Curry and Columbo Curry; and Rendang from Malaysia. The sauces are made with ingredients that are as close as possible to the indigenous dish and without artificial flavours, colourings or preservatives. The target audience is younger pre-family buyers.

The Cerebos salt brand saw the addition of Mediterranean Sea Salt Flakes from January 2005.

Financial Results

In the year ending 30th April 2005, turnover for RHM PLC was £1.64bn, compared with £1.68bn in 2004. The company made a pre-tax profit of £75.7m in 2005, compared with a pre-tax loss of £50.5m in 2004.



According to RHM PLC’s interim results, turnover from continuing operations was £739.3m in the 26 weeks ending 29th October 2005, up from £736.8m in the same period in 2004. For the Culinary Brands division, turnover was £122.8m in the 26 weeks ending 29th October 2005 (compared with £123.2m in 2004) and underlying operating profit was £31.1m (up from £26.7m in 2004).

Sacla UK Ltd

Company Structure

Sacla UK Ltd is an Italian-owned group supplying a range of food products, including cooking sauces, olive oil and olives.


February 2005 saw the addition of two tapenades to the range of Italian sauces. Black Olive Paste and Green Olive Paste, made with olives, olive oil and seasoning, could be used in a number of ways: as a spread with bread, added to stews or as a topping for fish, meat or vegetables. Tomato & Artichoke Stir Through Sauce was introduced from September 2005.

From March 2006, Sacla launched the nine-strong Classic range. The products were authentically Italian and made in the Piemonte region of north eastern Italy.

Sacla introduced a bread topping range in June 2006. The range of tomato-based sauces were designed for making crostini and bruschetta. The sauces are to be served on toasted breads or pastry and are positioned at the premium end of the market.

Financial Results

In the year ending 31st December 2004, Sacla UK Ltd’s turnover rose by 1.5%, to £22m. The company made a pre-tax profit of £1.1m in 2004, an increase of 3.7% on 2003.

Unilever UK Foods

Company Structure

Unilever PLC is a widely based foods, toiletries and household goods group. Cooking sauce brands supplied by Unilever UK Foods include Knorr, which covers Ragu and Chicken Tonight; Bertolli; and Colman’s. The company also supplies the Go Organic brand.

Bertolli is Unilever’s premium Italian olive oil and pasta sauce brand. The Knorr Ragu brand targets the family pasta sauce market, with Chicken Tonight offering a wider range of family recipes.




Karmarama was appointed as the advertising agency for Colman’s sauces in May 2005, following a three-way pitch.

From March 2006, Bertolli was revamped with new packaging and product reformulation across the range. A ‘Best ever taste’ flash was added to labelling and new easy-to-open lids were introduced. The Rustico sauces range saw the addition of an Olive, Capers & Parsley variant. A £3m advertising expenditure backed the launch.

The Knorr Ragu sauces range introduced products with pasta sauces containing puréed vegetables from 2005. The target market is families with children who dislike vegetables. The product contains no added salt, artificial colours, flavours or preservatives.

The Knorr Chicken Tonight range saw the addition of three stir-fry sauces designed for one- or two-person meals in June 2006. The recipes comprise Cherry Tomato, Red Chilli & Vodka; Sticky Soy, Balsamic Vinegar and Peppers; and Thai Style Lime, Red Chilli & Coconut. The aim was to attract more adult buyers, as well as encourage the return of lapsed users.

In June 2006, it was announced that Unilever would relaunch its Chicken Tonight and Ragu sauce brands. Knorr Chicken Tonight was repackaged in pouches to offer greater convenience, with new sizes that include single-serve portions. Modern variants, such as Vodka and Chilli, were also to be launched to appeal to younger consumers. An advertising support package, including television, was planned. Knorr Ragu also gained new packaging with a ‘curvy’ glass bottle, allowing the consumer to reseal the product and use it for another meal. Advertising will focus on the product’s natural ingredients.

Financial Results

According to the Unilever Annual Report and Accounts 2004, at current exchange rates, the food category recorded a turnover of €22.71bn in 2004, compared with €24.20bn in 2003. Operating profit decreased from €2.69bn in 2003, to €1.31bn in 2004.

The savoury and dressing business, which includes brands such as Knorr and Bertolli, recorded a turnover of €8.4bn and an operating profit of €398m, at current exchange rates, in 2004. This compares with a turnover of €8.61bn and an operating profit of €478m in 2003.

Worldwing Investments Ltd

Company Structure

Worldwing Investments Ltd owns the Patak’s food brand. The company supplies a range of mainly Indian foods, including cooking sauces, pickles, breads and accompaniments.




The company entered the chilled sauce market in 2005, with four recipes launched at ASDA in conjunction with Greencore Group PLC. The products were Peshwari Korma, Achari Masala, Goan Masala and Bengal Jalfrezi.

Patak’s introduced a six-strong range of regional sauces from 2005. The recipes included Jaipuri Tikka Masala, Keralan Cashew & Chilli Masala and Punjabi Saag Masala. The aim of the launch was to target consumer interest in more regional recipes.

From April 2006, Patak’s introduced a range of condiment sauces positioned as accompaniments to barbecues and everyday meals, as well as marinades. Five flavours included Mint & Coriander, Spicy Tomato and Kashmiri Chilli.

In September 2005, BDH/TBWA was appointed to the advertising business of Patak’s. A new campaign was planned for the company’s first above-the-line advertising in 2 years.

Financial Results

Worldwing Investments Ltd recorded a turnover of £54.5m and a pre-tax profit of £834,000 in the year ending 26th September 2004. This compares with a turnover of £51.2m and a pre-tax loss of £713,000 in 2003.

Other Companies

RH Amar & Co Ltd

RH Amar & Co Ltd distributes a number of brands, including the Oriental brand Wing Yip and the premium Indian brand Geeta’s.

Geeta’s introduced two-step Spice and Stir Indian sauces at the end of 2005. The initial recipes comprised Madras and Dopiaza.

Dress Italian Ltd

Dress Italian Ltd supplies a range of ambient sauces, comprising Basil & Tomato, Sun Dried Tomato, Sweet Cherry Tomato and Red Hot Chilli, as well as a range of pesto sauces.

English Provender Company Ltd

English Provender Company Ltd relaunched its range of marinades in April 2006, with new packaging to communicate premium values. Three new recipes were also introduced: Hot Chilli, Smokey Barbecue and Tikka.

Fiddes Payne Ltd

Fiddes Payne Ltd supplies dry marinades, including rubs. In March 2006, the group introduced two new seasonings: American Steakhouse and Cajun.



Greencore Group PLC

Greencore Group PLC supplies a range of sauces for the own-label market. The company claims a share of more than 50% in the UK chilled sauces sector.

The Grocery Company Ltd

The Grocery Company Ltd distributes the Nando’s range in the UK. Nando’s is best known for its chain of restaurants, but the group also supplies a branded range of sauces, which can be used as marinades.

In May 2006, the group revamped its packaging, which included on-pack labelling to indicate heat levels. The company also launched a medium-hot Sweet & Sticky marinade, as well as Perinaise (Peri Peri with mayonnaise) and Peri Peri Salsa Spicy Dips.

In March 2005, three new cooking sauces — Spicy Tagine, Lemon & Herb and Sweet Chilli Satay — were introduced, together with three pasta sauces infused with Peri Peri chilli sauce. The products had uniform packaging featuring a ‘periometer’ to indicate the heat level of the sauce.

Maldon Crystal Salt Company Ltd

Maldon Crystal Salt Company Ltd supplies the Maldon Sea Salt brand, as well as the Tidman’s salt brand. The company produces 600 tonnes of salt annually at Maldon. The product has received extensive celebrity endorsement from the likes of Delia Smith and Nigel Slater.

In July 2005, it was announced that the group would diversify into premium organic pepper, herbs and spices. Organic Food Federation-certified premium peppercorns were the first product to be introduced from autumn 2005. Eventually, the range will expand to ten products.

The New Covent Garden Soup Co Ltd

In March 2004, The New Covent Garden Soup Co Ltd launched a range of chilled fresh cooking sauces. The range was revamped in 2005, with a focus on pasta sauce options.

Princes Ltd

Princes Ltd is a major supplier of own-label cook-in sauces to a number of retailers.

SHS Group Ltd

SHS Group Ltd owns The British Pepper & Spice Company Ltd and Gourmet Garden. British Pepper & Spice is a major supplier of own-label dried herbs and spices to retailers. Gourmet Garden Europe supplies chilled herbs and spices, including blends.



Temple Foods Ltd

In March 2005, Heinz-branded Chinese sauces were announced. The range comprised products such as soy sauce, sesame oil and oyster sauce, as well as specialities such as chilli bean and spare-rib sauce. The range was distributed by Temple Foods, acting as an agent for Meiweiyuan, a Chinese food producer purchased by Heinz in 2003.

TRS Wholesale Co Ltd

TRS Wholesale Co Ltd supplies a range of Indian foods, including spices and the Shan range of curry mixes.

MARKETING ACTIVITY

Main Media Advertising Expenditure

The level of main media advertising expenditure in the cooking sauces and food seasonings market is relatively low, and has been falling. This is due to a number of factors, including a strong own-label presence and a concentration of activity on below-the-line promotions, including price-based offers. In the year ending March 2006, main media advertising expenditure on cooking sauces and mixes was £20.7m, a decrease of 28.8% on 2004.

Table 11: Main Media Advertising Expenditure on Cooking Sauces and Mixes (£000), Years Ending March 2005 and 2006

% Change

2005 2006 2005-2006

Major brands 28,711 20,253 -29.5

Sub-threshold brands 331 421 27.2

Total 29,041 20,675 -28.8

Note: totals do not sum due to rounding by source.

Source: Nielsen Media Research



Recent Campaigns

JFC (UK) Ltd

• Kikkoman

From June 2006, Kikkoman launched a 6-week advertising campaign to tie in with the start of the barbecuing season. The group also gave away 400,000 marinade and salad shakers with a bottle of soy sauce or Teriyaki marinade. Neck collars on bottles invited shoppers to send off for the clear acrylic shakers.

In 2005, the brand introduced advertising featuring the UK food presenter Danny Boome cooking two recipes using Kikkoman’s soy sauces, with the strapline ‘Kikkoman — brewed longer to taste better’.

Mars UK Ltd

• Dolmio

In April 2005, Dolmio announced new advertising for its Chunky pasta sauces. A £3.5m support package included a television, press and public relations (PR) campaign using the Pap Dolmio character to explain the benefits of the product. An in-store sampling campaign was also initiated.

The introduction of the My Dolmio range of ambient children’s meal kits was backed with a £2m marketing campaign from May 2006. This included consumer press advertisements, followed by television commercials in June.

For the Dolmio pouch product range, an e-mail campaign and website promotion was undertaken from 2006. The newsletter Papa’s News — promoting new products and carrying new product, health and lifestyle information — was also developed.

• Uncle Ben’s

At the beginning of 2005, the Uncle Ben’s brand spent £300,000 on a themed Chinese New Year marketing campaign. Activity included in-store sampling in 500 stores, point-of-sale (PoS) promotions and Chinese-themed events.

McCormick (UK) Ltd

• Schwartz

In May 2005, McCormick’s announced that Schwartz was the new sponsor for the Channel 4 daytime programme Richard & Judy. The sponsorship ran until the end of the year. Idents for the show were designed by 4creative and featured five products from the herbs and spice range being used to turn a meal from a regular occurrence into a lively occasion. The strapline used was ’An appetite for living’.



Princes Ltd

• Lee Kum Kee

Princes Chinese cooking sauce brand Lee Kum Kee was used in cooking demonstrations in Chinese supermarkets between October and December 2005. The aim was to target Western users of the products.

RHM PLC

• Sharwood’s

Sharwood’s ran its first consumer event in February 2005. The Wok the City roadshow toured Birmingham, Manchester and London, coinciding with the Chinese New Year. Activity included live music, food and Chinese-style entertainment. A store tour also began, offering bespoke Sharwood’s fortune cookies and personal Chinese fortune readings.

RHM planned to back the introduction of its new premium cooking sauce range introduced in July 2006 with advertising from October.

Unilever UK Foods

• Knorr

Knorr’s new Chicken Tonight one- and two-person meals, introduced from July 2006, were supported with a £3m advertising expenditure.

• Bertolli

A 10-week roadshow for the Bertolli Rustico brand began in March 2006. The event — Bertolli Market Place — was a sense-oriented campaign, with consumers taking in the colours, smells and tastes of Italian cuisine.

Exhibitions

Exhibitions for the food market include the following:

• Food & Drink Expo — held at the National Exhibition Centre (NEC) in Birmingham between 19th and 22nd March 2006.

• The BBC Good Food Show — will be held at the NEC in Birmingham between 22nd and 26th November 2006.

• The International Food & Drink Exhibition — will next be held at ExCel in London between 18th and 21st March 2007.

• Anuga — World of Food, International Food Fair — will be held in Cologne, Germany, between 13th and 17th October 2007.


Cooking Sauces & Food Seasonings Strengths, Weaknesses, Opportunities and Threats

5. Strengths, Weaknesses, Opportunities and Threats

STRENGTHS

• Some areas of the cooking sauces and food seasonings market are in a growth phase, so they are able to support a large number of brands, both small and large.

• There are a number of established brands and products in the market, which consumers find accessible entry points for new dishes and recipes.

• The UK is a multicultural society and this is reflected in the national palate.

• Most communities have access to at least an Indian or Chinese takeaway or restaurant that provides a basis for the retail ethnic foods market. At the same time, other outlets, including those in the foodservice sector, can provide a testing ground for different cuisines.

• A high level of interest in food is continually generated by media coverage.

• A wide range of products are available at all levels of convenience and price points.

• The increased accessibility of long-haul travel gives consumers greater experience of other cultures and encourages them to experiment with different types of food at home.

WEAKNESSES

• A large number of small brands means that many sectors of the cooking sauces and food seasonings market do not benefit from above-the-line advertising and promotion.

• With so many brands in the market, consumers might find the choice confusing.

• Many areas of the market are growing slowly as a result of a lack of consumer education about products and uses.

• The lack of an established restaurant base for some foods, such as Vietnamese and Korean, has hindered growth.

• In terms of suppliers and retailers, the market is highly fragmented, which makes it difficult to accurately communicate trends in the market.

• Legislative demands on the food industry are strong.


Cooking Sauces & Food Seasonings Strengths, Weaknesses, Opportunities and Threats

OPPORTUNITIES

• The large number of food and travel programmes and channels serves to educate consumers about foreign foods.

• There are many other dishes and recipes yet to be introduced to the UK market.

• The trend towards snacking and eating on the go is creating opportunities for more portable food formats.

• Eating trends, such as healthy eating, continue to provide opportunities for low-fat and other options.

THREATS

• The strength of retailers’ own labels may discourage the distribution of smaller brands.

• The ageing of the UK population may affect sales of products such as ready meals and cooking sauces. Older consumers may be more likely to cook from scratch and avoid convenience solutions.

• The large number of products in the cooking sauces and food seasonings market means that competition is intense.


Cooking Sauces & Food Seasonings Buying Behaviour

6. Buying Behaviour

CONSUMER PENETRATION

Between 2002 and 2005, there was a significant drop in penetration for cooking sauces overall — in 2005, 35.5% of adults used cook-in sauces and 30.5% used packeted, tinned and pour-over sauces in the last 12 months, compared with 47.3% and 41.5%, respectively, in 2002.

The drop in penetration has not been due to a sudden increase in cooking from scratch using herbs, spices or other ingredients, but is instead indicative of the switch towards other convenient options. The foodservice sector, and restaurants and takeaways, have gained some trade. In addition, there have been a number of rival developments within the retail food market as a whole, including:

• ready meals, particularly chilled ready meals

• meal kits

• prepared meal centres, e.g. raw premarinaded meats.

Table 12: Penetration of Cook-In Sauces, and Packeted, Tinned and Pour-Over Sauces in the Last 12 Months

(% of main shoppers), 2002 and 2005

Packeted, TinnedCook-In Sauces and Pour-Over Sauces

2002 2005 2002 2005

All users 47.3 35.5 41.5 30.5

Non-users 27.7 22.4 33.6 27.4

Source: Target Group Index (TGI) © BMRB International Ltd, 2002 and 2005



By Sex

Women are more than twice as likely as men to use cooking sauces — in 2005, 50.7% of women used cook-in sauces, and 44.1% used packeted, tinned and pour-over sauces in the last 12 months. This compares with 19.4% of men who used cook-in sauces, and 16% who used packeted, tinned and pour-over sauces.

In women’s continued role as primary meal preparer (and main shopper) in the household, this is to be anticipated. Women continue to take on the traditional role in many households, which can be due to personal choice, as well as the greater likelihood of women being home based or working on a part-time basis.

In the main, cooking sauces continue to target larger households and, while there has been some development of twin-serve ranges, those aimed at single households are still relatively limited, which can deter some buyers. However, the option to reseal and refrigerate can address this issue.

More recently, suppliers have been developing more meal-kit-type products, particularly for solo eaters. In addition, these households are more easily served by options such as ready meals.

By Age

In terms of age, it is clear that those in the 25 to 55 year-old age groups are the key consumers of cooking sauces.

While it may be anticipated that younger, less confident cooks in the under-25 categories may opt for such shortcuts, they are not significant in this market. This may be due to these consumers buying more prepared foods, rather than cooking with sauces.

Those in the middle age ranges are more likely to be living in larger households with partners, housemates or families and, as such, might find more use for cooking sauces. Even so, the majority opt out of the market, preferring either more basic or more convenient eating options.

Table 13: Penetration of Cook-In Sauces, and Packeted, Tinned and Pour-Over Sauces in the Last 12 Months by Sex

(% of main shoppers), 2005

Packeted, Tinned andCook-In Sauces Pour-Over Sauces

Men 19.4 16.0

Women 50.7 44.1

Source: Target Group Index (TGI) © BMRB International Ltd, 2005



The over 55s are less likely to have grown up with shortcuts, such as cooking sauces and ready meals, so prefer to cook from scratch.

By Social Grade

Cook-in sauces have a slightly more upmarket buying profile than packeted, tinned and pour-over sauces, the latter of which have lower price points. However, wet sauces also offer a much wider range of recipe choices, which may appeal to a wider demographic. Those on lower incomes show higher penetration for packeted sauces than ABs, while the reverse is true for cook-in sauces.

Table 14: Penetration of Cook-In Sauces, and Packeted, Tinned and Pour-Over Sauces in the Last 12 Months by Age



15-19 13.6 12.7

20-24 25.9 23.8

25-34 43.0 36.3

35-44 41.2 34.9

45-54 42.3 36.2

55-64 36.4 29.3

65+ 30.6 27.6




The development of more regional recipes and of more authentic ingredients is likely to target higher income groups more effectively than those in lower social grades. Wealthier consumers take a greater interest in food due to their greater exposure to overseas travel, and they tend to be more concerned about the provenance and origin of recipes.

By Presence of Children

The importance of larger households in the cooking sauces market is confirmed by higher usage of these products among households with children. Shortcuts that are suitable for a larger number of people offer family households the option to prepare food more quickly, as well as change menus and meal portfolios with minimum effort. The importance of children in the market prompted Dolmio’s development of the My Dolmio range of pasta and sauce.

Usage tails off slightly among households with older children. This may be due to the lesser likelihood of families eating together, as children begin to engage in a wider range of activities, as well as the onset of the ‘faddy’ eating habits common among teenagers.

Table 15: Penetration of Cook-In Sauces, and Packeted, Tinned and Pour-Over Sauces in the Last 12 Months by Social Grade



A 37.3 26.8

B 35.5 29.7

C1 37.6 33.1

C2 34.5 28.8

D 33.3 29.7

E 34.8 31.0




Table 16: Penetration of Cook-In Sauces, and Packeted, Tinned and Pour-Over Sauces in the Last 12 Months by Presence of Children (% of main shoppers), 2005


Age of Children

0-4 42.7 37.6

5-9 41.9 36.5

10-15 39.5 34.4

No children in household 33.2 28.2



Cooking Sauces & Food Seasonings Current Issues

7. Current Issues

COMPANY AND BRAND ACTIVITY

Cardini’s

Cardini’s, supplier of the original Caesar salad dressing, introduced two new dressings from September 2005. The products, Cajun Caesar and Chinatown Sesame, were formulated to be used as a marinade for dishes such as stir fries, as well as with salad.

Filippo Berio

The Filippo Berio olive-oil brand entered the pasta sauce category from 2006, with the introduction of three pestos. Classic, Red and Olive pesto are made to traditional recipes using Pecorino and Grana Padano cheeses in Italy. The products retail in glass jars.

Jim Beam

From June 2006, the Jim Beam Kentucky Bourbon brand entered the UK food market with the launch of eight products, including original marinade, Teriyaki marinade and a steak sauce. The products targeted the premium end of the market, with prominent use of the Jim Beam logo on pack. The range is manufactured in the US by Vita Speciality Foods and distributed in the UK by LB Foods.

Simply UK

In November 2005, Simply UK introduced a range of Last Minute Marinades, which are designed to be used immediately before cooking. The company stated that the products were formulated to coat foods in a thin layer of paste, sealing in the meat’s moisture and creating instant flavour. Initial recipes included Chinese Five Spice, French Garlic and Herb, Texan Barbecue and Cajun Cracked Black Pepper.

Spice-N-Tice

Spice-N-Tice, a range of spice kits, was shown at the Food & Drink Expo in 2006. The range of 12 recipes comprised measured amounts of herbs and spices, and are designed to be used with fresh ingredients such as meat or fish to cook authentic dishes. Recipes include Methi Chicken, King Prawn Curry and Tarka Daal. The use of whole, as well as ground, spices aims to encourage consumers to cook more with fresh ingredients.



Tiger Tiger

The Tiger Tiger Thai food brand developed and introduced a range of premium, restaurant-quality cooking sauces in 2005. The brand is mainly distributed through ethnic retailers and cash and carries, but it is well known in the restaurant sector, supplying more than 3,000 outlets.

SUDAN 1 SCARE

At the beginning of 2005, the processed-foods sector was hit by concerns surrounding Sudan 1. Sudan 1 has been shown to cause cancer in mice, but the risk to humans who eat affected food is thought to be extremely low. The dye is used to colour cleaning and other products and, since July 2003, all dried and crushed or ground chilli coming into the EU must be accompanied by a certificate showing that it has been tested free of the dye. However, the dye was found in a chilli powder used by Premier Foods to make Worcester sauce.

As a result, a number of food products were withdrawn from stores in February 2005. By the end of that month, the Food Standards Agency (FSA) had identified more than 470 products as containing the dye, including ready meals, pot snacks and sauces.

In April 2005, the colourants issue made the news again when traces of another illegal dye, Para Red, were found in meal kits. By early May, more than 60 products had been recalled, having been found to contain the dye.

FOOD LABELLING

In November 2004, the Government issued a White Paper: Choosing Health, Making Healthy Choices Easier. The Paper covered a wide range of health issues, including the need to reduce obesity and improve diet and nutrition. It stated that ‘the rapid increase in child and adult obesity over the past decade is storing up very serious health problems for the future’.

Plans to tackle such issues included a partnership between the Government and the food industry to develop better information on the nutritional content of packaged food. By early 2006, there was to be a clear, straightforward coding system in common use that busy people could understand. The system would show, at a glance, which foods could make a positive contribution to a healthy diet, and which are recommended to be eaten only in moderation.

The FSA released research suggesting that people would like simple labelling signposts to help them make informed and healthier food choices. It began investigating the options for labelling foods according to nutrient levels, highlighting on-pack aspects such as fat and sugar levels.



November 2005 marked the beginning of a 12-week consultation period for retailers and suppliers to give opinions on the nutritional labelling scheme put forward by the FSA. The scheme was based around a traffic lights system, indicating the relative healthiness of foods.

Before the end of the consultation period, the major food suppliers Danone, Kellogg, Kraft, Nestlé, PepsiCo and Unilever all announced that they were to back a scheme putting key guideline daily amounts (GDAs) on the back of packs. This scheme had already been implemented by Tesco. In March, further suppliers came out in favour of the scheme. Sainsbury’s, Waitrose and ASDA all stated their support of the labelling, which worked within the framework of the FSA guidelines. The FSA itself eventually bowed to pressure from suppliers and agreed that labels could be adapted to individual company needs.

In April 2006, The Times reported that sales of some ‘unhealthy foods’ had fallen by up to 40% following the introduction of labelling showing fat, salt and usage content. At the same time, sales of some ‘better-for-you’ ranges increased substantially. Suppliers commented that they would have to prioritise health further in new product development (NPD).


Cooking Sauces & Food Seasonings The Global Market

8. The Global Market

GLOBAL MARKETPLACE DEVELOPMENTS

France

Asian Amoy Sauce Business Sold

In June 2005, Danone, the French food group, announced that it would sell its Amoy sauce business in Asia. As a non-core operation in Asia, the view was taken that the sale should take place independently in that region.

The UK

HP Ethnic Foods Sell-Off

HP’s Ethnic Foods division markets a range of owned and agency brands to the Chinese, Indian and Thai food restaurant sector, as well as to specialist retailers. Heinz bought HP Foods from Groupe Danone after the move was provisionally cleared by the Competition Commission in February 2006.

The US

Kikkoman

In May 2006, it was announced that Kikkoman Corporation was looking to expand its health-food business in the US, and the company acquired full control of Country Life, a joint venture it formed with the US health-foods group Consac Industries. Kikkoman stated that it aimed to develop sales of high value-added products, such as organic soy sauce, and grow a second business arm.

McCormick Restructure

McCormick announced the closure of a California-based manufacturing plant in January 2006. Production would switch to other North American facilities by the end of the year.

Also in January 2006, McCormick announced that it would restructure its Australian operations in Victoria, reducing from four sites to two in New South Wales.

Organic Ragu from Unilever

Unilever announced the launch of a new line of organic sauces under the Ragu brand in the US from 2005. The sauces target families and address parental concern about children’s diets.


Cooking Sauces & Food Seasonings The Global Market

Vita Products and Budweiser Sauces

Vita Products and Anheuser Busch formed a licensing agreement for the former to create and distribute a range of Budweiser sauces, including a baste, two barbecue sauces and a sauce for chicken wings. The aim was to target the barbecue market, in particular, and further the exposure of the Budweiser brand within the food sector.


Cooking Sauces & Food Seasonings Forecasts

9. Forecasts

INTRODUCTION

The Economy

Gross Domestic Product

UK gross domestic product (GDP) is forecast to continue to grow year on year over the 5-year period to 2010. This will provide a positive environment for ongoing investment in the cooking sauces and food seasonings market. Programmes of product investment, including promotion and relaunches, as well as innovation, should benefit from this environment.

Inflation

The UK rate of inflation is forecast to remain at around 2.3% to 2.4% to 2010. Rising prices will impact on the cooking sauces and food seasonings market in terms of production and distribution costs and, as a result, some suppliers will seek to maintain margins through higher prices. However, this will be difficult to achieve in an environment in which the multiples are unwilling to increase their costs.

Table 17: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2006-2010

2006 2007 2008 2009 2010

Gross domestic product growth (%) 2.2 2.6 2.6 2.5 2.5

Percentage point change

year-on-year - 0.4 0.0 -0.1 0.0

Source: Forecasts for the UK Economy, May 2006, Treasury Independent Average © Crown copyright



FORECASTS 2006 TO 2010

Key Note forecasts that the market for cooking sauces and food seasonings will see a slowdown in growth levels over the next 5 years (to 2010), as the market continues to mature. Year-on-year growth is expected to remain between 1.8% and 2.3% over this period, compared with annual rises of between 2.5% and 4% between 2001 and 2005.

However, the market is forecast to continue to show some growth in real terms to 2010. Although some of the increase in sales will be due to inflationary pressures, there will be some benefits in terms of adding value to the market as suppliers attempt to focus activity away from price and towards factors such as provenance and authenticity.

Competition from other food sectors, such as ready meals and prepared meal centres, will also have an impact in restricting potential growth in sales of cooking sauces.

The food seasonings sector is forecast to have less success in combating the move towards more convenient options. The development of simpler products, such as blends, will have an impact but, overall, the lack of consumer knowledge and confidence in using ingredients is likely to continue.

Key Note forecasts that, between 2006 and 2010, the total UK market for cooking sauces and food seasonings will increase by 8.2%, to £631m at retail selling prices (rsp). Cooking sauces will continue to dominate the market, and this sector is expected to account for 85.9% (£542m at rsp) of the total market by 2010.

Table 18: Forecast UK Rate of Inflation (%), 2006-2010

2006 2007 2008 2009 2010

Inflation (%) 2.3 2.4 2.3 2.3 2.3


year-on-year -0.5 0.1 -0.1 0.0 0.0

Note: inflation is at retail price index (RPI).

Source: Forecasts for the UK Economy, May 2006, Treasury Independent Average © Crown copyright



Table 19: The Forecast Total UK Cooking Sauces and Food Seasonings Market by Sector by Value at Current Prices

(£m at rsp), 2006-2010

2006 2007 2008 2009 2010

Cooking sauces 492 504 516 528 542

Food seasonings 91 91 90 89 89

Total 583 595 606 617 631

% change year-on-year 2.3 2.1 1.8 1.8 2.3


Source: Key Note


Figure 5: The Forecast Total UK Cooking Sauces and Food Seasonings Market by Sector by Value at Current Prices

(£m at rsp), 2006-2010


Source: Key Note


0

100

200

300

400

500

600

700

2006 2007 2008 2009 2010

Food seasonings

Cooking sauces



MARKET GROWTH

Figure 6 demonstrates that, over the 10-year period to 2010, growth in the total UK cooking sauces and food seasonings market will be driven by the cooking sauces sector, with sales in the food seasonings sector remaining relatively static, before declining in 2008 and 2009. Between 2001 and 2010, the cooking sauces sector is forecast to increase by 30.3%, compared with a rise of 4.7% in the food seasonings sector.

Figure 6: The Total UK Cooking Sauces and Food Seasonings Market by Sector by Value at Current Prices

(£m at rsp), 2001-2010


Source: Key Note


0

100

200

300

400

500

600

700

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Cooking sauces

Food seasonings

Total



FUTURE TRENDS

Demographics

Between 2003 and 2009, major growth in the UK population is forecast to be concentrated among the 15 to 24 year-old and 45-and-over age groups. The former are among the sections of the population most likely to embrace convenient food options, such as cooking sauces, but they also tend to shop across a wider range of alternatives, such as ready meals, and eat out more frequently.

The 45-and-over age group includes older families, as well as a significant percentage of single- and dual-person ‘empty nester’ households. This group can have the time and interest in food to be effectively targeted by more authentic recipes. Smaller-serve products will also be more popular in this group, although with children now leaving home at a later age, the family lifestage may be more prolonged for older people.

Table 20: Age Profile of the UK Population (000), 2003, 2006 and 2009

% Change2003-

2003 2006 2009 2009Age Group

0-14 10,924 10,697 10,469 -4.2

15-24 7,575 7,830 8,007 5.7

25-34 8,070 7,749 7,664 -5.0

35-44 9,108 9,257 8,990 -1.3

45-54 7,614 7,843 8,351 9.7

55-64 6,753 7,174 7,348 8.8

65+ 9,510 9,704 10,107 6.3

Total 59,554 60,254 †60,934 2.3

† — does not sum due to rounding by source

Source: 2003-Based National Population Projections, Government Actuary’s Department © Crown copyright



Market Segmentation

The high rates of growth in the chilled category are bound to attract more brands. It is likely that some of the ambient players are already eyeing the fixture, with a view to generate higher margins, particularly in light of the increasing maturity of the ambient wet sauce sector. The dominance of the chilled market by retailers’ own labels is likely to deter the smaller players and moves are more likely to be made by the larger brands.

Within the ambient sector itself, activity will centre on developing premium and added-value products. There will be more growth in regional recipes, as well as organic and named-ingredient products.

Product Development

The cooking sauces sector has seen a considerable level of new product activity in 2005/2006, although the fixture is already overcrowded. As a result of this, new recipes tend to cannibalise sales of older, more established ones. Suppliers need to re-assess product portfolios and cut down on overlaps between recipes. This means that they will be able to offer a narrower, but more comprehensive, range in many cases.

Consumers also need to be made more aware of the differences between standard and premium recipes. Clearer packaging and premium prompts, such as specific ingredients and differentiated packaging, may need to be accompanied by on-pack information in order to educate buyers to trade up.


Cooking Sauces & Food Seasonings Company Profiles

10. Company Profiles

INTRODUCTION

The following section contains financial profiles of some of the principal companies identified as operating within the market sector discussed in this report. The financial results of some of the important names within the sector may not be reported if:

• their principal activities are so varied that their results are not considered applicable to the survey

• they are no longer trading as separate companies

• their financial data are very out of date.

DEFINITIONS

A company which has a ‘Y’ consolidated value has filed consolidated accounts for the relevant year.

† — denotes that the growth rate calculation is invalid, because the figures either move from positive to negative or from negative to positive.

Turnover (Sales)

This includes all income derived from the principal activities of the firm, net of VAT. It encompasses UK sales, exports and overseas and intercompany sales.

Pre-Tax Profits

The net trading profit figure after deduction of all operating expenses, including depreciation and finance charges but before deduction of tax, dividends, subventions or group relief, and other appropriations. Where applicable, it will include the share of profits and losses of associated companies. Items described by the company as exceptional are included; extraordinary items are excluded.

Profit Margin

Pre-tax profits expressed as a percentage of sales.

Average Remuneration

Total employee remuneration divided by the number of employees.

Sales per Employee

Sales divided by the number of employees.

FURTHER INFORMATION

For more detailed financial information telephone ICC Customer Services on: 020-7426 8555



HP FOODS LTD

† — the Competition Commission provisionally cleared HJ Heinz Company’s takeover of the HP Foods Group in February 2006

Registered Office 1,371 Mollison AvenueEnfieldMiddlesex, EN3 7JZTelephone: 020-8443 7600Fax: 020-8804 1006

Company Registration Number 02251694Date of Incorporation 05/05/88Holding Company Heinz HP LtdUltimate Holding Company Groupe Danone SA (France)†

Previous Name(s) and Date(s) of Change

Runwillow Ltd (16/05/88)

Principal Activities

Food processing and the distribution of bottled sauces and ethnic food products.

SIC Codes

15870, Manufacture of condiments and seasonings.51390, Non-specialised wholesale of food, beverages and tobacco.

Structure

HP Foods Ltd supplies a range of cooking and table sauces. The company was acquired by HJ Heinz Company in 2006.

Brand Information

HP Foods supplies the Amoy Oriental foods brand, Lea & Perrins Worcestershire sauce and the Rajah Indian spices and herbs brand.

Recent Developments

New product development (NPD) from Amoy in 2005 included the introduction of a premium soy sauce, seeking a similar positioning to balsamic vinegar in the vinegar market. Amoy Premium Soy Sauce is fermented from the first pressing of the soy bean to offer extra flavour. Amoy Stir Fry Sensations were also introduced during the year.



FINANCIAL PROFILE

Year End 31/12/04 31/12/03 31/12/02 31/12/01Weeks 52 52 52 52Consolidated N N N N

Sales

Sales (£000) 133,164 124,875 123,991 122,697% change year-on-year 6.64 0.71 1.05 -Exports (£000) 21,730 17,278 12,809 12,299Exports/Sales (%) 16.32 13.84 10.33 10.02

Profits

Pre-Tax Profits (£000) 32,697 28,806 27,154 22,334% change year-on-year 13.51 6.08 21.58 -Profit Margin (%) 24.55 23.07 21.90 18.20Operating Profit (£000) 32,433 28,888 27,291 22,980

Employees

Number of Employees 330 333 302 300Average Employee Remuneration (£) 30,809 28,210 30,404 23,077Sales per Employee (£) 403,527 375,000 410,566 408,990Profit per Employee (£) 99,082 86,505 89,914 74,447Capital Employed per Employee (£) 42,445 40,063 42,728 36,637

Balance Sheet/Ratios

Capital Employed (£000) 14,007 13,341 12,904 10,991Return on Capital (%) 233.43 215.92 210.43 203.20Net Worth (£000) 13,086 12,771 11,654 9,708Current Ratio (%) 0.99 0.99 0.95 0.88Liquidity Ratio (%) 0.79 0.78 0.72 0.64



MARS UK LTD

Registered Office 3D Dundee RoadSloughBerkshire, SL1 4LGTelephone: 01753-550 055

Company Registration Number 00636458Date of Incorporation 03/09/59Holding Company Food Manufacturers (GB Company) LtdUltimate Holding Company Mars Inc (US)


Seira Ltd (18/10/82)


The manufacture and sale of food and food-related products.

SIC Code

15841, Manufacture of cocoa and chocolate confectionery.

Structure

Mars UK Ltd, owned by Mars Inc of the US, is a widely based food group. The company supplies two of the leading brands in the cooking sauces market.

Brand Information

Cooking sauce brands supplied by Mars include the Dolmio and Uncle Ben’s ranges.

Recent Developments

Dolmio Chunky sauces, comprising pasta sauces with additional chunks of vegetables, were introduced from March 2005. The tomato-based variants were colour coded to give shelf standout. In addition, the My Dolmio range of ambient sauces was launched in May 2006. The range of pasta sauces and pastas target 8 to 12 year-olds.

Also in 2006, the Dolmio sauce range was revamped, with changes including a new logo in a leaf shape, incorporating the brand’s signature colour green.



FINANCIAL PROFILE


Sales

Sales (£000) 1,556,680 1,545,283 1,545,624 1,920,729% change year-on-year 0.74 -0.02 -19.53 -Exports (£000) - - - -Exports/Sales (%) - - - -

Profits

Pre-Tax Profits (£000) 171,543 146,113 158,302 127,750% change year-on-year 17.40 -7.70 23.92 -Profit Margin (%) 11.02 9.46 10.24 6.65Operating Profit (£000) 164,685 139,785 151,021 127,158

Employees

Number of Employees 4,045 4,402 4,906 5,167Average Employee Remuneration (£) 44,132 42,618 42,259 40,234Sales per Employee (£) 377,579 351,041 315,048 371,730Profit per Employee (£) 41,608 33,192 32,267 24,724Capital Employed per Employee (£) 60,546 92,062 99,474 68,899





PREMIER INTERNATIONAL FOODS UK LTD

Registered Office 28 The GreenKings NortonBirminghamWest Midlands, B38 8SDTelephone: 01406-367 000

Company Registration Number 00314272Date of Incorporation 18/05/36Holding Company Premier Financing LtdUltimate Holding Company Premier Foods PLC


Premier Brands UK Ltd (07/03/01)Cadbury Typhoo Ltd (18/04/86)Cadbury Schweppes Foods Ltd (31/12/80)


The manufacture and sale of a wide range of teas and beverages.

SIC Codes

15861, Tea processing.15841, Manufacture of cocoa and chocolate confectionery.15891, Manufacture of soups.

Structure

Premier International Foods UK Ltd manufactures shelf-stable grocery products and teas, including Loyd Grossman cooking sauces. The brand includes pasta and Thai sauces.

Brand Information

Premier International Foods supplies the Loyd Grossman cooking sauces brand.

Recent Developments

During 2005, four creamy recipe sauces were added to the Loyd Grossman portfolio. In addition, green and red pestos made in Tuscany using traditional methods were added to the Loyd Grossman range in 2006.

The brand also offers seasonal limited edition sauces to target more adventurous consumers. For autumn 2005, the seasonal introduction was Tomato & Chargrilled Courgette and, in 2006, the initial introduction was Tomato, Green Olive and Roasted Red Chilli.



FINANCIAL PROFILE


Sales

Sales (£000) 140,431 143,044 169,040 176,049% change year-on-year -1.83 -15.38 -3.98 -Exports (£000) 4,464 3,813 6,900 6,131Exports/Sales (%) 3.18 2.67 4.08 3.48

Profits

Pre-Tax Profits (£000) 27,967 26,121 24,297 20,804% change year-on-year 7.07 7.51 16.79 -Profit Margin (%) 19.92 18.26 14.37 11.82Operating Profit (£000) 28,359 26,513 24,728 19,790

Employees

Number of Employees 659 697 808 780Average Employee Remuneration (£) 23,492 22,245 19,765 24,476Sales per Employee (£) 213,097 205,228 209,208 225,704Profit per Employee (£) 42,439 37,476 30,071 26,672Capital Employed per Employee (£) 143,877 108,227 93,995 97,263





RHM PLC

Registered Office Chapel HouseListon RoadMarlowBuckinghamshire, SL7 1TJTelephone: 01628-478 484Fax: 01494-478 404

Company Registration Number 03946774Date of Incorporation 14/03/00Holding Company NoneUltimate Holding Company None


305th Shelf Investment Company Ltd (01/07/05)


A group engaged in the manufacture and distribution of food.

SIC Codes

51390, Non-specialised wholesale of food, beverages and tobacco.15810, Manufacture of bread; manufacture of fresh pastry and goods.15611, Grain milling.

Structure

RHM PLC is one of the UK’s largest food companies. The Culinary Brands division supplies a range of retail grocery products, including leading brands such as the Sharwood’s range of Asian sauces and accompaniments

Brand Information

RHM supplies the Sharwood’s cooking sauces brand. The company also supplies the Saxa and Cerebos salt brands.

Recent Developments

Sharwood’s introduced a range of products targeting the barbecue market for summer 2005. Sharwood’s also launched a new luxury sauce range in July 2006. The six-strong portfolio comprises more specialised recipes than standard Indian, Chinese and Thai dishes.



FINANCIAL PROFILE

Year End 30/04/05 01/05/04 03/05/03 27/04/02Weeks 52 52 53 52Consolidated Y Y Y Y

Sales

Sales (£000) 1,642,300 1,677,800 1,715,400 1,734,900% change year-on-year -2.12 -2.19 -1.12 -Exports (£000) - - - -Exports/Sales (%) - - - -

Profits

Pre-Tax Profits (£000) 75,700 -50,500 -52,300 -4,900% change year-on-year † † † -Profit Margin (%) 4.61 -3.01 -3.05 -0.28Operating Profit (£000) 201,400 104,400 79,000 116,600

Employees

Number of Employees 17,415 18,553 20,216 20,983Average Employee Remuneration (£) 23,015 21,226 20,408 19,125Sales per Employee (£) 94,304 90,433 83,253 82,681Profit per Employee (£) 4,347 -2,722 -2,538 -234Capital Employed per Employee (£) 55,027 53,673 51,192 54,344


Capital Employed (£000) 958,300 995,800 1,034,900 1,140,300Return on Capital (%) 7.90 -5.07 -4.96 -0.43Net Worth (£000) -777,800 -1,111,400 -570,500 -553,200Current Ratio (%) 1.21 1.03 0.98 1.10Liquidity Ratio (%) 0.98 0.81 0.75 0.87



SACLA UK LTD

Registered Office 21 London EndBeaconsfieldBuckinghamshire, HP9 2HNTelephone: 01494-687 900Fax: 01494-681 494

Company Registration Number 02609524Date of Incorporation 10/05/91Holding Company NoneUltimate Holding Company Fratelli Sacla SpA (Italy)


Vendemmia Ltd (24/07/91)


The import of pesto, pasta sauces, antipasti and similar food condiments from Italy for wholesale distribution.

SIC Code

51390, Non-specialised wholesale of food, beverages and tobacco.

Structure

Sacla UK Ltd supplies a range of Italian foods, including pestos, cooking sauces, antipasti, olives and olive oil.

Brand Information

The company supplies the Sacla brand.

Recent Developments

Two tapenades were added to the range of Italian sauces in February 2005. Black Olive Paste and Green Olive Paste, made with olives, olive oil and seasoning, can be used in a number of ways. A new Tomato & Artichoke Stir Through Sauce was also introduced from September 2005.

From March 2006, Sacla launched the nine-strong Classic range, and a bread topping range was introduced in June 2006.



FINANCIAL PROFILE


Sales

Sales (£000) 22,037 21,707 19,887 19,452% change year-on-year 1.52 9.15 2.24 -Exports (£000) - - - -Exports/Sales (%) - - - -

Profits

Pre-Tax Profits (£000) 1,124 1,084 1,781 988% change year-on-year 3.69 -39.14 80.26 -Profit Margin (%) 5.10 4.99 8.96 5.08Operating Profit (£000) 1,099 1,075 1,770 966

Employees

Number of Employees 20 20 20 18Average Employee Remuneration (£) 45,750 49,200 47,500 47,111Sales per Employee (£) 1,101,850 1,085,350 994,350 1,080,667Profit per Employee (£) 56,200 54,200 89,050 54,889Capital Employed per Employee (£) 108,550 106,400 133,150 118,000





WORLDWING INVESTMENTS LTD

Registered Office 150 StrandLondon, WC2R 1JATelephone: 01942-272 300Fax: 01942-272 500

Company Registration Number 02778854Date of Incorporation 12/01/93Holding Company NoneUltimate Holding Company None


None


A group engaged in the manufacture, marketing and distribution of pickles, pastes, chutneys, frozen ready meals and speciality breads, and the operation of restaurants.

SIC Codes

15330, Processing and preserving of fruit and vegetables not elsewhere classified.15139, Other meat and poultry-meat processing.15810, Manufacture of bread; manufacture of fresh pastry goods and cakes.55110, Hotels and motels, with restaurants.

Structure

Worldwing Investments Ltd supplies Indian-food products, including cooking sauces.

Brand Information

The company supplies the Patak’s brand.

Recent Developments

Patak’s entered the chilled sauces market in 2005, with four recipes launched at ASDA in conjunction with Greencore Group PLC.

In September 2005, BDH/TBWA was appointed to the advertising business of Patak’s. A new campaign was planned as the company’s first above-the-line advertising in 2 years.



FINANCIAL PROFILE

Year End 26/09/04 28/09/03 29/09/02 29/09/01Weeks 52 52 52 52Consolidated Y Y Y Y

Sales

Sales (£000) 54,537 51,206 49,693 41,734% change year-on-year 6.51 3.04 19.07 -Exports (£000) - - - -Exports/Sales (%) - - - -

Profits

Pre-Tax Profits (£000) 834 -713 812 -568% change year-on-year † † † -Profit Margin (%) 1.53 -1.39 1.63 -1.36Operating Profit (£000) 1,215 -21 1,412 268

Employees

Number of Employees 563 539 589 506Average Employee Remuneration (£) 20,833 19,390 17,107 17,943Sales per Employee (£) 96,869 95,002 84,368 82,478Profit per Employee (£) 1,481 -1,323 1,379 -1,123Capital Employed per Employee (£) 25,162 32,531 25,423 28,208


Capital Employed (£000) 14,166 17,534 14,974 14,273Return on Capital (%) 5.89 -4.07 5.42 -3.98Net Worth (£000) 6,606 4,966 5,988 4,875Current Ratio (%) 0.93 1.09 0.83 1.07Liquidity Ratio (%) 0.71 0.81 0.57 0.80


Cooking Sauces & Food Seasonings Consumer Confidence

11. Consumer Confidence

METHODOLOGY

In order to assess the degree of confidence consumers have, Key Note commissioned BMRB Access to question around 1,000 adults aged 15 and over in Great Britain about their willingness to spend. Consumer confidence surveys are conducted on a quarterly basis in February, May, August and November. The latest survey was undertaken in May 2006 among 1,000 adults aged 15 and over. Respondents were asked the following two questions:

“Assume you want or need to buy one or more expensive items, like a holiday, car, home improvement or an electronic item (like a widescreen television or home computer). What is the maximum amount of your own savings you would feel confident spending on all of these items at this moment in time?”

“Assume you want or need to buy one or more expensive items, like a holiday, car, home improvement or an electronic item (like a widescreen television or home computer). What is the maximum amount of money you would feel confident borrowing in order to buy these items at this moment in time?”

Respondents were given bands of possible spending levels, ranging from less than £250 to more than £10,000.

Analysing the results enables Key Note to calculate a monetary value of the maximum amount of borrowing consumers feel confident committing to expensive items at a particular instant in time. Tracking changes to this over time will allow Key Note to assess changes in confidence alongside an assessment of the proportion of adults willing to borrow. In addition, rather than borrowing, consumers have the option to spend from their past savings, so an assessment of the willingness to use savings to finance expensive items provides a guide to consumers’ willingness to spend and the extent to which they want to spend cautiously (from savings) or spend with more risk (via borrowing).

KEY FINDINGS THIS QUARTER

Based on the willingness to spend from savings or by borrowing, consumer confidence has dropped sharply. Data relating to borrowing show that, between February 2006 and May 2006 — and over the past 12 months — confidence has declined. In addition, May 2006 saw a decline in the amount consumers are willing to spend from their savings in current, constant and seasonally adjusted price terms.



THE WILLINGNESS TO BORROW

Confidence Declines Again

The trend for consumers to reduce their willingness to borrow money to buy expensive items, which started at the end of 2005, has continued in this quarter (May 2006), although the rate of decline has slowed. The aggregate amount consumers were willing to borrow in May 2006 fell to £50.7bn, which is 18% lower than in May 2005, and 2.7% lower than in February 2006.

Excluding the ‘don’t knows’, the typical adult in Great Britain was willing to borrow £1,034 to finance a major purchase in May 2006, compared with £1,270 in the same period of 2005, a fall of 18.6%.

In May 2006, the average amount consumers were willing to borrow fell sharply compared with February 2006, at both current prices (a drop of 5.6% when seasonally adjusted, not shown in Table A) and constant prices (a 5.7% decrease). The annual decline, compared with the same month in 2005, was even more dramatic, with spending at seasonally adjusted constant prices down by 19.1%.

Overall, consumer confidence has declined between February 2006 and May 2006, as well as over the past 12 months.

Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current

and Constant November 2004 Prices (£ and £bn), May 2005, August 2005, November 2005, February 2006 and May 2006

05/05 08/05 11/05 02/06 05/06

Average amount willing

to borrow at current

prices (£)† 1,270 1,216 1,152 1,064 1,034

% change year-on-year - -4.3 -5.3 -7.6 -2.8

Aggregate amount willing

to borrow at current

prices (£bn)† ‡61.8 59.1 56.0 52.1 50.7

Table continues...



In terms of the amount consumers are willing to borrow, the consumer groups willing to borrow the most money are:

• men

• those aged between 25 and 54

• adults from the AB and C2 social grades

• adults living in the South West, the North and Scotland

• those in full-time employment

• adults who are married, separated or divorced

• adults with children

• those who are buying their home with a mortgage.

...table continued

05/05 08/05 11/05 02/06 05/06


to borrow at constant

November 2004

prices (£)§ 1,264 1,189 1,083 1,085 1,023

% change year-on-year - -5.9 -8.9 0.2 -5.7

† — non-seasonally adjusted

‡ — does not sum due to rounding

§ — seasonally adjusted

Source: Key Note/IRN Research


Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current

and Constant November 2004 Prices (£ and £bn), May 2005, August 2005, November 2005, February 2006 and May 2006



Signs That the Decline Could be Bottoming Out

Despite the drop in the average amounts consumers are willing to borrow, the proportion of adults willing to borrow has remained little changed this quarter (May 2006), compared with the last (February 2006). In this quarter, 49.5% of adults would not borrow any money to pay for major purchases, compared with 49.6% in the previous quarter. In terms of the proportion of adults willing to borrow, May 2006 is identical to May 2005.

It is generally the case that the willingness to borrow is more common among:

• men

• adults who are separated or single

• those aged between 16 and 44

• adults with children

• those living in rented accommodation, and house owners with a mortgage

• those in full-time employment

• adults from Scotland and the North.

Between February 2006 and May 2006, while most adults have reduced their willingness to borrow, some groups have increased their desire to borrow.

Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), May 2005,

August 2005, November 2005, February 2006 and May 2006

05/05 08/05 11/05 02/06 05/06

Adults aged 15+ 48,622 48,622 48,622 49,004 49,004

Adults willing to borrow 24,554 25,429 25,770 24,698 24,747

Adults unwilling to borrow 24,068 23,193 22,852 24,306 24,257

% of adults unwilling to borrow 49.5 47.7 47.0 49.6 49.5

Net number of adults willing

to borrow 486 2,236 2,918 392 490





Over the past 3 months, those who have strongly reduced their willingness to borrow are adults who:

• live in East Anglia, the North West or Wales

• are aged between 45 and 54, and 65 and over

• are in part-time employment

• come from the C1 social grade.

Those who have shown a much stronger desire to borrow between February 2006 and May 2006 are adults who are:

• separated

• living in the South West, the North and Scotland

• parents with children aged between 0 and 4

• not working

• living in privately rented and rent-free accommodation

• from the C2 and DE social grades

• aged between 16 and 24, and 35 and 44.

In other words, those who have shown a desire to borrow more are those with low incomes, which might point to distress borrowing.

THE WILLINGNESS TO SPEND FROM SAVINGS

Sharp Decline in Spending from Savings

The past 3 months have seen a very sharp decline in the amount of savings consumers are willing to commit to buying expensive items. This move has coincided with a period when unemployment has started to rise in the UK, and when UK incomes have been squeezed by rising fuel and utility bills. The move can be seen as a clear signal that consumers are starting to think that they need a financial reserve in case their employment situation worsens.

In May 2006, the average adult in Great Britain was willing to spend a maximum of £1,268 from his or her own savings on expensive items, compared with £1,477 in February 2006, and £1,681 in May 2005.



This rapid decline in the willingness to spend from past savings has coincided with a sharp rise in the proportion of adults without any savings. Between May 2005 and February 2006, the proportion of adults without any savings declined, suggesting that more consumers were putting money aside for a ‘rainy day’ or future spending. However, between February 2006 and May 2006, the proportion of consumers with no savings rose strongly, by 2.6 percentage points. It is possible that rising unemployment and a reduced willingness to borrow has forced some consumers to run down their savings in order to buy both essential and luxury items.

Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current

and Constant November 2004 Prices (£ and £bn), May 2005, August 2005, November 2005,

February 2006 and May 2006

05/05 08/05 11/05 02/06 05/06


to spend from savings

at current prices (£)† 1,681 1,564 1,590 1,477 1,268

% change year-on-year - -7.0 1.7 -7.1 -14.2

Aggregate amount willing


at current prices (£bn)† 81.7 76.0 77.3 72.4 62.1



at constant November

2004 prices (£)‡ 1,673 1,528 1,495 1,507 1,255

% change year-on-year - -8.7 -2.2 0.8 -16.7

† — non-seasonally adjusted

‡ — seasonally adjusted





Borrowing Grows in Relative Importance

Between May 2005 and February 2006, there was a trend for consumers to favour buying expensive items from past savings rather than going into further debt. However, the rapid decline in the desire to use savings in this quarter has brought that trend to a halt.

In May 2006, of the total amount consumers were confident spending, 55.1% came from savings, compared with 57% in May 2005.

Table D: The Proportion of Adults Without Any Savings (%), May 2005, August 2005, November 2005,

February 2006 and May 2006

05/05 08/05 11/05 02/06 05/06

% of adults 6.4 6.0 5.6 4.8 7.4


year-on-year 0.8 -0.4 -0.4 -0.8 2.6

Base: 1,010 adults aged 15+ in May 2005; 1,001 adults aged 15+ in August 2005; 1,005 adults aged 15+ in November 2005; 1,015 adults aged 15+ in February 2006; and 1,000 adults aged 15+ in May 2006

Source: BMRB Access/Key Note/IRN Research

Table E: The Average Amounts Adults are Confident Spending to Purchase Expensive Items (£ and %), May 2005,


05/05 08/05 11/05 02/06 05/06

From savings (£) 1,681 1,564 1,590 1,477 1,268

By borrowing (£) 1,270 1,216 1,152 1,064 1,034

Total 2,951 2,780 2,742 2,541 2,302

Table continues...



The willingness to commit past savings to spending shows clear variations by consumer group.

Those willing to commit only small sums (e.g. less than £500) from their savings to buy expensive items are most likely to be found in the social groups that tend to live off fixed incomes, e.g. adults who are:

• not married (separated, divorced, widowed or single)

• living in rented accommodation

• aged between 16 and 24, or 65 and over

• from the DE social grade

• from London and East Anglia

• female

• either in part-time work, or are not working or retired.

The groups who are willing and able to commit the heaviest amounts to spending by running down past savings are more likely to be relatively affluent and in employment (or retired), although they are also found in relatively high numbers among adults aged 55 and over, and among those from the East Midlands and the North.

The adults who are more likely to use their savings rather than going into debt to finance big-ticket purchases tend to be older (aged 55 and over) and affluent adults (from the ABC1 social grades), and those who own their homes outright.

...table continued

05/05 08/05 11/05 02/06 05/06

Of which:

From savings (%) 57.0 56.3 58.0 58.1 55.1

By borrowing (%) 43.0 43.7 42.0 41.9 44.9

Total 100.0 100.0 100.0 100.0 100.0



Table E: The Average Amounts Adults are Confident Spending to Purchase Expensive Items (£ and %), May 2005,


Cooking Sauces & Food Seasonings Further Sources


12. Further Sources

Associations

Food and Drink Federation6 Catherine StreetLondon, WC2B 5JJTelephone: 020-7836 2460Fax: 020-7836 0580E-mail: [email protected]://www.fdf.org.uk

Salt Manufacturers’ AssociationPO Box 125Kendal Cumbria, LA8 8XATelephone: 01539-568 005E-mail: [email protected]://www.saltsense.co.uk

Seasoning and Spice Association6 Catherine StreetLondon, WC2B 5JJTelephone: 020-7836 2460Fax: 020-7836 0580E-mail: [email protected]://www.seasoningandspice.org.uk

General Sources

BMRB InternationalHadley House79-81 Uxbridge RoadEalingLondon, W5 5SUTelephone: 020-8566 5000Fax: 020-8579 9809E-mail: [email protected]://www.bmrb.co.uk

Nielsen Media Research 1st Floor Atrium CourtBracknellBerkshire, RG12 1BZTelephone: 01344-469 100Fax: 01344-469 102E-mail: [email protected]://www.nielsenmedia.co.uk

Government Sources

Government Actuary’s DepartmentFinlaison House15-17 Furnival StreetLondon, EC4A 1ABTelephone: 020-7211 2601Fax: 020-7211 2630/2640E-mail: [email protected]://www.gad.gov.uk

National Statistics1 Drummond GateLondon SW1V 2QQ Telephone: 020-7533 5888Fax: 01633-812599http://www.statistics.gov.uk



Other Sources

The Grocery Company LtdMatrix Business ParkBuchshaw Village, PR7 7NBTelephone: 01772-455 335E-mail: [email protected]

Napolina Ltd6th FloorRoyal Liver BuildingPierheadLiverpool, L31 1NXE-mail: [email protected]://www.napolina.com

Bisnode Sources

ICC CreditTelephone: 020-8481 8800Fax: 020-8941 6014E-mail: [email protected]://www.icc-credit.co.uk

ICC Credit delivers services geared towards maximising the effectiveness of your credit management process. These range from reporting through decision and investigation services to integration and data management services.

ICC Information LtdTelephone: 020-8481 8800Fax: 020-8941 6014msn: [email protected]: [email protected]

ICC can provide information via:

• Juniper (WindowsTM online service), updated daily

• Plum (Internet), updated daily• Blueberry (CD-ROM — Credit Index,

Company Index and Broker 50), updated monthly

• Damson (Bulk Data Supply via EDD, EDI, ISDN, magnetic tape and DAT)

Databases available via Juniper, Plum, Blueberry and Damson include:

• directory information on all live and dissolved companies

• analysed financial information of every trading British company

• database of all 4.9 million directorships

• images of the latest directors’ reports and accounts

• full text annual reports and accounts of UK quoted PLCS

• stockbroker research• shareholders’ information.

IRN ResearchTelephone: 020-8481 8831 Fax: 020-8783 3691E-mail: [email protected]://www.irn-research.com

IRN offers a range of research solutions to management, information and marketing professionals on an ad hoc, continuous, contract or outsourced basis.

• bespoke market research and consulting

• information consultancy• information-management services• content/report production.



IRN Research is the exclusive compiler of raw data to the entire Key Note report range and can provide customised analysis of data used in many tables in this report.

For more information and prices, please e-mail: [email protected]

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Invaluable aids to anyone needing to gain a highly detailed understanding of a specific market for more informed decision-making.

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Cooking Sauces & Food Seasonings Understanding TGI Data

Understanding TGI Data

TGI tables, produced by BMRB International Ltd, are generally based on one of the following groups:

• Households — a private household consists of either one person living alone or a group of people, usually, but not always, members of one family, who live together and whose food and other household expenses are managed as one unit.

• Adults — any person aged 15 or over.

• Housewives — a member of a private household who is solely or mainly responsible for the household duties.

Number, Profile, Penetration

Tables used in Key Note reports may give figures for the Number, Profile, and/or Penetration. These terms are explained in the following Table.

TGI data used in Key Note reports are broken down by age, social grade and standard region.

.0

.0

Table Heading

Population Number (000) Profile (%) Penetration (%)

All housewives 20,371 13,535 100.0 66.4

Age

15-24

25-34

Social Grade

AB

C1

Region

Greater

London

Source:Target Group Index, © BMRB International, 1995

1,045 7.7 0.03

2,697 19.9 12.1

61.5

71.9

2,557 10.4 55.2

The total number of adults, housewives, households, etc.

Across

The % of 15-24 year-olds, etc. who are users.

This is the projected number of people in each subgroup who use the product.

Down

The % of each subgroup who are users. Eachsubgroup should total 100% vertically.


Cooking Sauces & Food Seasonings Understanding TGI Data

Social Grade

This is normally based on the occupation of the Head of the Household, or if the Head of the Household is retired, their former occupation. If this information is not available social grade is based on environmental factors such as type of dwelling, amenities in the home, presence of domestic help etc.

Social grade is assessed by the interviewer when collecting the information and is, therefore, based on information given personally and verbally by the respondent. Social grade is checked by BMRB’s coding and editing office.

The following table broadly defines the six social grades used. The relationship between social grade and net income of the Head of the Household is a complex one and readers should note that income is not determinant of social grade.

Standard Region

This is as defined by the Registrar-General.

Social Grade Social Status Head of Household’s OccupationA Upper middle class Higher managerial, administrative or professionalB Middle class Intermediate managerial, administrative or

professionalC1 Lower middle class Supervisory or clerical and junior managerial,

administrative or professionalC2 Skilled working

classSkilled manual workers

D Working class Semi and unskilled workersE Those at lowest

levels of subsistence (no other earner)

State pensioners or widows

Cooking Sauces & Food Seasonings Key Note Research


Key Note Research

Key Note is a leading supplier of market information, publishing an extensive range of consumer, industrial, business-to-business and services titles. With over 25 years’ experience, Key Note represents clear, concise, quality market information.

For all reports, Key Note undertakes various types of research:

Online searching is carried out by product code or free search method, and covers the period from the last edition of the report to the current day.

The internal ICC Juniper database is used to select company information relevant to the particular report. The financial information extracted may then be backed up by further online searching on particular companies.

Trade sources, such as trade associations, trade journals and specific company contacts, are invaluable to the Key Note research process.

Secondary data are provided by BMRB International (TGI) and Nielsen Media Research for consumer/demographic information and advertising expenditure respectively. In addition, various official publications published by National Statistics, etc. are used for essential background data and market trends.

Interviews are undertaken by Key Note for various reports, either face-to-face or by telephone. This provides qualitative data (‘industry comment’) to enhance the statistics in reports; questionnaires may also be used.

Field research is commissioned for various consumer reports and market reviews, and is carried out by either BMRB International (BMRB Access) or NOP Solutions (National Opinion Polls).

Key Note estimates are derived from statistical analysis and trade research carried out by experienced research analysts. Up-to-date figures are inserted where possible, although there will be some instances where: a realistic estimate cannot be made (e.g. the number of disabled people in the UK); or external sources request that we do not update their figures.

Key Note Editorial Manager, 2006

Cooking Sauces & Food Seasonings The Key Note Range of Reports


The Key Note Range of ReportsKey Note publishes over 180 titles each year, across both the Key Note and MarketAssessment product ranges. The total range covers consumer, lifestyle, financialservices and industrial sectors.

Title Edition Published

Market Reports and Reports Plus

A

Access Control 8 2006

Accountancy 10 2006

Aerospace 12 2003

Agrochemicals & Fertilisers 3 2002

Air Freight 2 2005

Airlines 17 2006

Airports 10 2006

Animal Feedstuffs 11 2001

Arts & Media Sponsorship 1 2005

Automatic Vending 20 2006

Automotive Services 4 2005

Autoparts 17 2005

B

Baths & Sanitaryware 12 2005

Bearings 1 2001

Betting & Gaming 18 2005

Biscuits & Cakes 13 2006

Book Publishing 18 2006

Bookselling 13 2006

Bread & Bakery Products 21 2006

Breakfast Cereals 12 2004

Breweries & the Beer Market 25 2006

Bricks & Tiles 14 2006

Bridalwear 2 2005

Builders’ Merchants 15 2006

Building Contracting 9 2006

Building Materials 12 2006

Bus & Coach Operators 7 2003

Business Press 12 2004

C

Cable & Satellite TV 10 2004

Camping & Caravanning 13 2002

Canned Foods 15 2006

Carpets & Floorcoverings 15 2002

Catering Equipment 9 2006

The Chemical Industry 10 2005

Childrenswear 6 2006

Chilled Foods 13 2005

China & Earthenware 23 2006

Cigarettes & Tobacco 20 2006

Cinemas & Theatres 9 2001

Closed Circuit TV 8 2005

Clothing Manufacturing 13 2006

Clothing Retailing 5 2004

Commercial Radio 8 2004

Commercial Vehicles 13 2006

Computer Hardware 6 2005

Computer Services 7 2004

Computer Software 6 2005

Confectionery 24 2006

Consumer Internet Usage 4 2000

Consumer Magazines 13 2005

Contraception 2 2002

Contract Catering & Foodservice Management 18 2005

Contract Cleaning 19 2006

Cooking Sauces & Food Seasonings 2 2006

Corporate Hospitality 4 2004

Cosmetics & Fragrances 19 2006

Cosmetic Surgery 4 2004

Courier & Express Services 14 2005

D

Dark Spirits & Liqueurs 3 2004

Debt Management (Commercial & Consumer) 3 2006

Defence Equipment 10 2006

Design Consultancies 3 2000

Digital Broadcasting 1 2005

Digital TV 2 2003

Direct Marketing 16 2005

Discount Retailing 5 2006

Disposable Paper Products 11 2005

Domestic Heating 13 2003

Dry Cleaning & Laundry Services 5 2005




E

Electrical Contracting 8 2006

Electrical Wholesale 4 2006

The Electricity Industry 4 2004

Electronic Component Distribution 12 2002

Electronic Component Manufacturing 11 2002

Electronic Games 4 2003

Equipment for the Disabled 4 2006

Equipment Leasing 12 2003

Estate Agents 15 2005

Ethnic Foods 12 2005

Exhibitions & Conferences 8 2006

F

Factoring & Invoice Discounting 2 2003

Fast Food & Home Delivery Outlets 21 2005

The Film Industry 4 2002

Finance Houses 11 2000

Fire ProtectionEquipment 7 2004

Fish & Fish Products 12 2004

Fitted Kitchens 10 2002

Football Clubs & Finance 3 2005

Footwear 14 2004

Franchising 10 2006

Free-To-Air TV 8 2004

Freight Forwarding 14 2004

Frozen Foods 21 2006

Fruit Juices & Health Drinks 10 2004

Fruit & Vegetables 19 2006

Further & Higher Education 5 2005

G

Garden Equipment 11 2004

The Gas Industry 3 2004

Giftware 15 2006

Glassware 13 2005

Greetings Cards 22 2006


H

Hand Luggage & Leather Goods 12 2005

Health Clubs & Leisure Centres 7 2006

Health Foods 22 2003

Heating, Ventilating & Air Conditioning 9 2002

Home Furnishings 16 2005

Home Shopping 11 2005

Horticultural Retailing 15 2002

Hotels 20 2005

Housebuilding 17 2006

Household Appliances (Brown Goods) 10 2004

Household Appliances(White Goods) 15 2004

Household Detergents & Cleaners 14 2004

Household Furniture 17 2004

I

Ice Creams & Frozen Desserts 11 2006

Industrial Fasteners 8 2001

Industrial Pumps 5 2000

Industrial Valves 8 2001

Insurance Companies 11 2006

Internet Usage in Business 8 2005

IT Security 7 2005

IT Training 10 2005

J

Jewellery & Watches 21 2005

K

Kitchenware 5 2004

L

Laboratory Equipment 8 2006

Lighting Equipment 14 2002

Lingerie 6 2004

M

Management Consultants 10 2003

Market Forecasts 1 2005

Meat & Meat Products 18 2006

Medical Equipment 15 2003

Metal Recycling 4 2004

Milk & Dairy Products 20 2006

Mobile Phones 6 2005

Mobile Telecommunications 1 2006




N

Natural Products 1 2005

New Media Marketing 3 2002

Newspapers 15 2001

Non-Metal Recycling 1 2005

O

Office Furniture 20 2006

The Offshore Oil & Gas Industry 3 2004

Ophthalmic Goods & Services 15 2006

OTC Pharmaceuticals 12 2005

Own Brands 11 2006

P

Packaging (Glass) 12 2003

Packaging (Metals & Aerosols) 12 2003

Packaging (Paper & Board) 13 2002

Packaging (Plastics) 14 2003

Paper & Board Manufacturing 14 2002

Personal Banking 11 2000

Photocopiers & Fax Machines 14 2005

Plant Hire 12 2001

Plastics Processing 10 2003

Poultry 2 2005

Power Tools 4 2005

Premium Lagers, Beers & Ciders 6 2004

Printing 11 2006

Private Healthcare 17 2004

Protective Clothing & Equipment 5 2004

Public Houses 22 2006

R

Rail Travel 6 2005

Ready Meals 8 2005

Recruitment Agencies (Permanent) 6 2006

Recruitment Agencies (Temporary & Contract) 6 2006

Renewable Energy 1 2003

Restaurants 21 2006

Retail Chemists & Drugstores 14 2006

Road Haulage 19 2005


S

Sauces & Spreads 9 2005

Shopfitting 13 2006

Short Break Holidays 4 2001

Slimming Market 8 2000

Small Domestic Electrical Appliances 10 2005

Snack Foods 17 2006

Soft Drinks (Carbonated & Concentrated) 16 2006

The Soup Market 1 2005

Sports Clothing & Footwear 10 2005

Sports Equipment 13 2004

Sports Sponsorship 5 2006

Stationery (Personal & Office) 22 2006

T

The Take Home Trade 15 2004

Telecommunications 20 2005

Timber & Joinery 18 2006

Toiletries 19 2006

Top Markets 1 2005

Tourist Attractions 5 2001

Toys & Games 20 2005

Training 14 2005

Travel Agents & Overseas Tour Operators 19 2006

The Tyre Industry 2 2005

V

Vehicle Security 7 2005

Videoconferencing 3 2003

Video & DVD Retail & Hire 8 2005

W

Wallcoverings & Ceramic Tiles 17 2006

Waste Management 8 2005

Water Industry 3 2004

Windows & Doors 18 2006

Wine 16 2004

White Spirits 1 2005

Market ReviewsCatering Market 18 2006

Clothing & Footwear Industry 11 2006




UK Computer Market 11 2004

Construction Industry 10 2006

Contracted-Out Services 2 2004

Defence Industry 7 2003

Distribution Industry 8 2004

DIY & Home Improvements Industry 10 2005

Drinks Market 17 2006

The Energy Industry 6 2005

Film Market 1 2006

The Food Industry 17 2006

Healthcare Market 10 2005

Insurance Industry 8 2005

The Legal Services Market 1 2005

Leisure & Recreation Market 15 2005

Mechanical Handling 1 2001

Motor Industry 11 2006

Music Industry 1 2006

Office Equipment Industry 8 2006

Packaging (Food & Drink) Industry 1 2003

Passenger Travel in the UK 4 2004

Pharmaceutical Industry 5 2005

Process Plant Industry 1 2000

The Publishing Industry 11 2006

Railway Industry 2 2006

Security Industry 11 2006

Sports Market 1 2004

Travel & Tourism Market 12 2005

Market Assessment ReportsA

The ABC1 Consumer 2006

Activity Holidays 2006

Advertising Agencies 2005

All-Inclusive Holidays 2000

Alternative Healthcare 2005

Audio-Visual Retailing 2000

B

Baby Foods 2004

Baby Products 2005

Baths and Showers 2000

Beds, Bedrooms and Upholstered Furniture 2000

Betting and Gaming 2002

Book Retailing on the Internet 2004

Bottled Water 2003


Bridalwear 2002

Business Postal Services in the UK 2002

The Business Travel Market 2006

C

Cable and Satellite Services 2002

Call Centres 2006

Charity Funding 2005

Childcare 2006

Children’s Publishing 2005

Clothing Retailers 2000

Coffee and Sandwich Shops 2005

Commercial Dynamics in Financial Services 2005

Commercial Insurance for Small Businesses 2002

Condiments and Sauces 2006

Consumer Credit and Debt 2006

Contraception 2002

Cooking and Eating 2004

Cross-Border Shopping 2000

The Cruise Market 2005

Customer Loyalty in Financial Services 2000

Customer Magazines & Contract Publishing 2004

Customer Relationship Management 2006

Customer Services inFinancial Organisations 2005

The C2DE Consumer 2006

D

Diet Foods 2004

The DINKY Market 2004

Direct Insurance 2006

Direct Mortgages 2006

Domestic Lighting andElectrical Products 2000

Domestic Telecommunications 2006

E

E-Commerce: The Internet Grocery Market 2006

E-Commerce: The Internet Leisure & Entertainment Market 2006

Electronic Banking 2000

EMU — The Impact on the UK Financial Services Industry 2003

E-Recruitment 2005

E-Shopping 2002

Estate Agents and Services 2006

Ethnic Foods 2002

The European Electricity Industry 2004




The European Gas Industry 2005

European Long-Term Insurance 2003

The European Oil and Gas Industry 2005

The European Renewable Energy Industry 2005

European Short Breaks 2001

European Telecommunications 2002

European Tourist Attractions 2005

The European Water Industry 2005

Extended Financial Families 2005

F

Financial Services Marketing to ABs 2006

Financial Services Marketing to ABC1s 2000

Financial Services Marketing to C1C2DEs 2004

Financial Services Marketing to Over 60s 2004

Financial Services Marketing to the Retired and Elderly 2003

Financial Services Marketing toStart-Up Businesses and theSelf-Employed 2003

Financial Services Organisations on the Internet 2005

The Fish Industry 2001

Forecourt Retailing 2005

Functional Foods 2004

Funding in Higher Education 2002

G

General Insurance 2006

Global Waste Management 2004

Green and Ethical Consumer 2005

Grey Consumer 2006

H

Healthy Eating 2006

Holiday Purchasing Patterns 2004

Home Entertainment 2002

Hot Beverages 2004

I

In-Car Entertainment 2000

Independent Financial Advisers 2003

Individual Savings Accounts 2005

Insurance Prospects 2002

Internet Advertising 2004

Internet Service Providers 2005

Issues and Challenges in the UK Life Assurance Market 2002

Issues in Higher Education Funding 2006

IT Recruitment 2005


L

Lifestyle Magazines 2005

Low-Fat & Reduced-Sugar Foods 2006

The Luggage Market 2000

M

Marketing to Children 4-11 2003

Marketing in the Digital Age 2006

Medical & Health Insurance 2004

Men and Women’s Buying Habits 2005

Men’s Toiletries & Fragrances 2005

Millennium Youth 2002

Motor Finance 2005

N

The Newspaper Industry 2005

Non-Food Sales in Supermarkets 2006

Nutraceuticals 2005

O

Off-Trade Spirits 2004

Opticians & Optical Goods 2006

Organic Food 2006

OTC Pharmaceuticals 2000

Over-40s Consumer 2005

P

Pay TV 2004

Pension Extenders 2002

Pensions 2006

Personal Banking 2003

Personal Lines Insurance 2003

Personal Loans 2003

The Pet Market 2005

Plastic Cards in Europe 2005

Plus-Size Fashion 2005

Private Sector Opportunities in Education 2001

Public Relations Industry 2006

Public Transport 2001

R

The Railway Industry 2004

Ready Meals 2001

Recycling and the Environment 2000

Retail Credit 2000

Retail Development 2001




© Key Note Ltd 2006

All rights reserved.

No part of this publication may be reproduced, copied, stored in an electronic retrieval system or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988.

Published by Key Note Ltd, Field House, 72 Oldfield Road, Hampton, Middlesex TW12 2HQ, Telephone: 020-8481 8750

Stringent efforts have been made by Key Note to ensure accuracy. However, due principally to the fact that data cannot always be verified, it is possible that some errors or omissions may occur; Key Note cannot accept responsibility for such

errors or omissions. Details supplied by Key Note should only be used as an aid, to assist the making of business decisions, not as the sole basis for taking such decisions.

Under the new Privacy and Electronic Communications Regulations 2004, it is unlawful for a business to make an unsolicited sales & marketing call to a corporate subscriber if it is either registered with CTPS or has requested NOT to receive such calls.

Key Note Ltd holds and regularly updates (every 28 days) its data in accordance with the regulations and ensures that its data are compliant, as of the date created. It is the responsibility of the caller to ensure that these data are up to date;

Key Note Ltd does not hold itself liable for any subsequent legalities.

If you have any queries regarding the CTPS legislation you may find the following websites useful:www.informationcommissioner.gov.uk or www.prospectswetenhams.com

S

Savings and Investments 2004

Saving Trends in the Eurozone 2002

Singles Market 2003

Shopping Centres 2006

Short Breaks 2004

The Slimming Market 2002

Small Businesses & Banks 2002

Small Office Home Office Consumer 2001

Small Office Home Office Products 2001

The Soup Market 2001

Sponsorship 2000

Supermarket Own Labels 2003

Supermarket Services 2003

Sweet & Salty Snacks 2006


T

Teenage Fashionwear 2000

Teenage Magazines 2005

Teleworking 2003

Trends in Food Shopping 2006

Trends in Leisure Activities 2003

Tweenagers 2005

U

Utilities 2004

V

Vegetarian Foods 2006

Vehicle Breakdown Services 2006

Vitamins and Supplements 2005

W

White Goods 2000

Women Over 45 2003

Working Women 2006


cooking sauces & food seasonings - brand licensing

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