iri pulse report frozen food · iri pulse report frozen food welcome to the pulse q2 2014 edition...

PULSE REPORT

IRI Pulse Report Frozen Food

Welcome to the Pulse Q2 2014 edition for frozen food. We hope you

find it useful. Please do not hesitate to contact us if you have any

questions or comments at [email protected].

Q2 2014

IRIworldwide.eu

PULSE REPORT

About the Report

2

• This frozen food report is one of 10 super category reports designed to show high-level

comparison and analysis for retail markets across major countries in Europe.

• This report contains data gathered from around Europe. This market was split into the

following categories: frozen vegetables, frozen potato products, ice cream, frozen desserts,

frozen meat, frozen fish, frozen ready-meals, all other frozen meats and frozen dough and

bread products.

• The report highlights key metrics such as total sales figures, market trends, category

shares, winners and losers for Europe and for individual countries.

• The data has been sourced from IRI retail databases and Eurostat – the statistical branch

of administration for the European Commission.

• The countries included in the report are: France, Germany, Italy, the Netherlands, Spain

and the United Kingdom (UK).

• The market channels used for each country in this report are as follows:

Country Channels used

UK Hypermarkets, supermarkets, drugstores and impulse outlets.

ES Hypermarkets, supermarkets, hard discounters and drugstores. It includes the Canary Islands.

DE Hypermarkets, supermarkets, hard discounters and drugstores.

NL Hypermarkets, supermarkets, hard discounters and drugstores.

IT Hypermarkets, supermarkets, small self service, hard discounters and drugstores.

FR Hypermarkets and supermarkets.

• For analytical purposes the data sourced from available retail databases has been

consolidated to provide consistent results. However, for some countries it has not been

possible to source data pertaining to certain categories. When this has occurred it has been

documented in the ‘Notes’ section found at the end of the report.

PULSE REPORT

Source: Eurostat, September 2013

On the Radar

3

ECONOMIC FIGURES INFLUENCING CONSUMER BEHAVIOUR

This quarter shows a clear improvement of the frozen food situation across Europe, with almost all countries returning to value growth. However, the poor weather we experienced in the latter part of the summer compared to that in 2013 means that this positive trend is likely to be short lived.

POPULATION IN MILLIONS

UNEMPLOYMENT (%)

AVERAGE 12 MONTH

INFLATION RATES GDP IN MILLIONS (€)

Jan. 2012

Jan. 2013

Sep. 2013

Average 2012

Sep. 2013

Average 2012 2012

2013 (Estimate)

France 65.3 65.6 11.1 10.2 +1.2 +2.5

2 032 297

2 059 358

Germany 80.3 80.5 5.2 5.5 +1.8 +2.4

2 644 200

2 694 499

Italy 59.3 59.6 12.5 10.7 +1.8 +3.5

1 565 916

1 568 388

Netherlands 16.7 16.8 7.0 5.3 +3.1 +2.8

600 638

604 459

Spain 46.8 46.7 26.6 25.0 +2.3 +2.3

1 049 525

1 051 076

United Kingdom 63.4 63.8 7.5 7.9 +2.7 +3.7

1 901 001

1 854 920

PULSE REPORT

1 102 1 151 1 169 1 082 1 080 1 142

470 565 685 529 469 570

217 246 240

217 219 252

800 941

1 009

771 777 929

2 471 2 530

2 476

2 560 2 479

2 621

956

1 026 1 111

1 056 961

1 064

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

31-mar-13 30-jun-13 29-sep-13 29-dic-13 30-mar-14 29-jun-14

Eu

ro

s, in

millio

ns

Period Ending

France

Germany

Italy

Netherlands

Spain

UK

GLOBAL TRENDS

4

-2.6%

+2.2%

+0.3%

TOTAL EUROPE +0.8

VALUE SALES IN MILLIONS (€)

Total EU 23 016

DE 8 437

UK 4 292*

FR 3 739

IT 3 371

ES 2 249

NL 928

TOTAL FROZEN FOOD VALUE SALES AND % CHANGE VERSUS PRIOR YEAR

*based on an exchange rate of €1.150 to the pound

-0.1%

+1.3%

TOTAL FROZEN FOOD VALUE SALES FOR THE LAST SIX QUARTERS

Source: IRI retail databases; period ending 29 June 2014

+1.3%

PULSE REPORT

2 297

6 506

3 723

4 965

2 451

5,9 4,5-3,1 -1,4 -2,6

Fro

zen

Ready-

Meals

Ice C

ream

Fro

zen F

ish

Fro

zen M

eat

Fro

zen

Vegeta

ble

s

Eu

ros, in

million

s

Total € Sales % € vs. YA

16,2%

10,0%

7,7%

28,3%

0,0%

1,5%4,0%

21,6%

10,7%

Frozen Ready-Meals Ice Cream Frozen Fish

Frozen Meat Frozen Vegetables Frozen Potato Products

Frozen Desserts Frozen Dough & Bread Products All Other Frozen Meats

Europe

5

6 506

4 965

3 723

2 4512 297

1 781

931

351 6

Eu

ros,

in m

illi

on

s

CATEGORY VALUE SALES IN THE LAST YEAR

CATEGORY SHARE OF VALUE IN THE LAST YEAR

Europe includes: France, Germany, Italy, the Netherlands, Spain and the United Kingdom

TOP 5 CATEGORIES: EVOLUTION

Value sales (€) and % change versus a year ago


KEY TRENDS

• The decline in frozen food value seen across

Europe last Q1 was short lived, with sales

this quarter returning to positive growth

(+0.8%).

• Even the countries that have not been

fortunate enough to return to positive year-

on-year value growth have seen a slowdown

in their value decline. For instance, Spain saw

declines of 1.9% in Q1 slow to -0.1% in Q2.

The trend in France was -0.4% in Q1,

improving to +1.3% in Q2.

• Italy, Netherlands and Germany have also

seen improvement in frozen food

performance. In the UK, growth remained

consistent with prior quarter, at +0.3%.

• Germany is demonstrating the strongest

frozen food growth, +2.2%. However,

growth is generally fueled by inflation.

Volume sales slipped 1.1% versus last year.

• Frozen food sales in Italy continue to

struggle, posting value sales decline of 2.6%.

This is the sharpest decline of analyzed

European countries.

PULSE REPORT

Europe

6

Europe includes: France, Germany, Italy, the Netherlands, Spain and the United Kingdom


TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)

TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)

0.5

33.3

106.0

278.5

0 50 100 150 200 250 300

Ice Cream

Frozen Meat

Frozen Potato Products

All Other Frozen Meats

Millions

- 19.9

- 22.4

- 61.5

- 120.4

- 91.4

-150 -100 -50 0

Frozen Desserts

Frozen Dough & Bread

Products

Frozen Vegetables

Frozen Ready Meals

Frozen Fish

.Millions

CATEGORY INSIGHTS

• Ice cream: Outside of Italy, ice cream is the main driver of frozen food sales across Europe.

Whilst growth is consistent across Europe, drivers of growth differ at the country level. In

France, where ice cream grew €96.9 million, a mild winter and higher than average spring

temperatures boosted growth. In the UK (+€82.5 millions), temperatures have been lower

than those seen in 2013, leading manufacturers boost promotional activity to drive demand.

In Germany, private label is driving ice cream sales (+€86.1 millions).

• Frozen meat: Germany outperformed the rest of Europe within frozen meat and is

responsible for almost 80% of the growth seen across Europe on a quarter-over-quarter

basis. Poultry and private label are the clear winners in the German market, as well as

France. Frozen meat is the only frozen foods category to show positive growth within the

Italian market for the quarter.

• Frozen ready-meals: For the third quarter in a row, frozen ready-meals demonstrated a

steady decline (-1.4%) Traditional ready-meals are being negatively impacted by the warmer

weather. Pizza, however, is doing fairly well across Europe, with Germany being a notable

exception. Pizza sales in France and Netherlands are demonstrating positive growth, driven

by promotional support surrounding the Soccer World Cup.

• Frozen fish: Frozen fish is in decline is across all six countries. However, the rate of decline

slowed this quarter for the first time in several months (-3.6% in Q1 versus -3.1% in Q2)

due to a higher level of promotional activity in Germany and Italy. Innovation is also a

reason of this slight improvement; in Italy Findus launched the fish burger. In this category,

stepped-up promotional support has been unable to offset lower levels of consumer demand.

PULSE REPORT

9.0%

9.7%

17.4%

25.9%

0.3% 1.9%

23.6%

12.1%


Frozen Meat Frozen Vegetables Frozen Potato Products

Frozen Desserts Frozen Dough & Bread Products

364

453

884

651

968

-2.9 -2.1 -3.8 2.1

12.3

Fro

zen

Ready M

eals

Ice C

ream

Fro

zen F

ish

Fro

zen M

eat

Fro

zen

Vegeta

ble

s

Eu

ros, in

million

s


France

7

KEY TRENDS

• Frozen food value sales in France have been

under pressure for quite some time and fell in

to decline at the end of 2013 (Q4 2013: -

0.2%; Q1 2014: -0.4%). This quarter, the

French frozen food market showed a radical

reversal in both its volume and value sales

trends, and year-on-year growth came in at

+1.3%.

• This significant turnaround is remarkable in

the fast moving consumer good (FMCG)

market. Frozen has overtaken grocery and

personal care, whereas in the past, frozen

foods has been a relatively weaker sector.

• In contrast to inflationary trends evidenced in

many European countries, value growth in

France came despite market deflation.

Deflationary trends have been noteworthy in

the branded arena, since private label frozen

foods are seeing price increases. This is

having a direct impact on private label’s

stronghold within the marketplace, resulting

in a share loss of 2.4 points.

Eu

ros,

in m

illi

on

s






884

651

453

364 335

72 12

968

PULSE REPORT

France

8




96.9

9.1

1.1

0 20 40 60 80 100 120

Ice Cream

Frozen Meat


Products

- 1,4

- 2,0

- 10,8

- 25,8

- 20,4

-100 -50 0

Frozen

Desserts

Frozen Potato

Products

Frozen

Vegetables

Frozen

Ready-Meals

Frozen Fish

.Euros, in millions Euros, in millions

CATEGORY INSIGHTS

• Frozen food: Ice cream is becoming increasingly important to overall frozen food sales in

France and is responsible for more than 90% of the total market growth in the latest quarter,

versus 48% in Q1. The rest of the frozen food market paints a much less positive picture of

the French marketplace, with only three categories maintaining value growth.

• Ice cream benefited from the good weather during this first part of summer. Growth is

expected to slow or even stall next quarter, since the remainder of the season has been

much cooler with little in the way of sunshine.

• Frozen meat is one of the few frozen categories where private label is holding up, and is

responsible for 88% of the growth seen this quarter. This shows a real paradox as in other

FMGC sectors, consumers are switching to national brands trusting cheaper options less and

less. We expected them to behave the same for meat products due to scandals of previous

years, but it is not the case.

• Frozen potato products, which was used to be in the top 5 growth categories, has slipped

into decline in the latest quarter. This decline is attributable to poor performance of private

label. McCain is maintaining value growth.

• Frozen ready-meals - A year on from the horse meat scandal, the category is still

recovering. Declines are easing, giving some hope of a turnaround. For the quarter, sales

declined €20.4 millions, versus a €32 million decline in Q1.

PULSE REPORT

6.6%

7.1%

15.4%

35.5%

2.5%

4.9%

18.9%

9.0%

Frozen Ready-Meals Frozen Meat Ice Cream

Frozen Fish Frozen Desserts Frozen Vegetables

Frozen Potato Products Frozen Dough & Bread Products

590 719

1 699

1 322

2 971

-1,0 0,7 7,0-3,4

5,3

Fro

zen

Ready-M

eals

Fro

zen M

eat

Ice C

ream

Fro

zen F

ish

Fro

zen

Dessert

s

Eu

ros, in

million

s


Germany

9

Eu

ros,

in m

illi

on

s






1 699

1 322

719 590 531

416

189

2 971

KEY TRENDS

• In Germany, frozen food sales have out-

performed the rest of Europe, with sales

growth of 1.8%, versus the European

average growth figure of +0.8%.

• Inflation is a clear driver of value growth, as

volume is in decline (-1.1%). These trends

in both value and volume are occurring in

both everyday base and promotionally led

sales.

• Smaller hypermarkets registered the highest

growth rates for frozen foods, followed by

discounters.

• At the total market level, private label is the

key driver of frozen foods growth, for value

and volume. Sales of branded frozen foods

products are in decline.

• Ice cream sales are boosting the overall

frozen foods sector as the highest growth

category. Frozen meat is the second

strongest frozen food performer.

PULSE REPORT

Germany

10




Euros, in millions

86,1

85,1

20,4

8,8

0 20 40 60 80 100

Ice Cream

Frozen Meat

Frozen Ready-Meals


- 5.9

- 13.1

- 25.1

- 19.6

-30 -25 -20 -15 -10 -5 0

Frozen Desserts


Products

Frozen Vegetables

Frozen Fish

.Euros, in millions

CATEGORY INSIGHTS

• Poultry is the key driver of growth in the German frozen meat category. Soft discounters are

contributing to more than 55% of growth within frozen meat. Private label is the clear winner

within the frozen meat category, outperforming that of branded and resulting in an increase

in market share of 4.0 points. Private label now holds a 62.0% value share of the market.

• Ice cream registering significant value and volume growth. More than half (54%) of ice

cream volume growth is coming from private label sales. Soft discounters account for most of

ice cream’s growth for the quarter.

• Frozen fish continues to decline in both value and volume terms. Despite increased

promotional activity, frozen fish demand is on the decline. The majority of the sales decline

(70.0%) is coming from hard discounters despite elements of price deflation.

• Frozen dough and bread products have seen sales decline by 6.5%, with falling demand

eroding everyday base sales. The majority of the decline (69.0%) coming from hard

discounters in response to expanding in-store bakery offering.

• In frozen desserts, sweet foods and fruit are enjoying growth but are unable to compensate

for the decline seen in cake/pie/pastries, a sector experiencing significant losses in both

promotionally led and everyday base sales.

• Frozen ready-meals: traditional ready/partial meals are in marginal decline, whilst sales of

pizza/baguette are in positive value growth attributable to hypermarkets which have been

successful in achieving volume growth. Growth in pizza/baguette is driven by branded

products, whilst sales of private label products decline. Strength of branded products in this

area is noteworthy, since, generally, private label is experiencing growth in the German

frozen food market.

PULSE REPORT

3,1% 3,4%

20,5%

29,6%

0,8%0,9%

22,9%

18,8%

Ice Cream Frozen Fish Frozen Vegetables

Frozen Ready-Meals Frozen Meat Frozen Potato Products

Frozen Desserts Frozen Dough & Bread Products

Italy

11

Eu

ros,

in m

illi

on

s






771

692 635

106

29 26

999

114

114

999

692

771

635

-3,4 -1,8 -1,2 -3,6 1,2

Ice C

ream

Fro

zen F

ish

Fro

zen

Vegeta

ble

s

Fro

zen

Ready-

Meals

Fro

zen M

eat

Eu

ros, in

million

s


KEY TRENDS

• The Italian economic picture has yet to show

signs of recovery from the long-term

economic downturn and demand for fast

moving consumer goods (FMCG) in general,

still down. Frozen foods, however, showed

some signs of improvement in the latest

quarter.

• In Q1, annualised trends showed volume

decline 2.8% and value decline of 2.6%. In

Q2, declines eased, with value and volume

each losing 1.5%.

• In contrast to other countries, which are

seeing strong performance by ice cream as a

key driver of overall frozen food performance,

Italy’s frozen food market is being supported

by frozen fish/meals and meat, both of which

registered growth in the latest quarter.

• Promotional activity reached 38.4% of volume

in the 2nd quarter, an increase of 4.0 points

versus prior year.

PULSE REPORT

CATEGORY INSIGHTS

• Ice cream: The Italian market bucking trends seen elsewhere in Europe, with ice cream value

sales down 4.3% in Q2 2014. In the first quarter, sales where much healthier due to an

exceptionally warm winter. Q2 was negatively impacted by a late Easter, which caused

retailers who normally switch their focus from frozen foods to ice cream in early April to make

the switch much later. Smaller ranges resulted in missed sales opportunities.

• Frozen fish: The frozen fish segment rebounded in Q2 2014 (value +1.5%, volume +2.8%),

following a sustained period of decline. This turnaround attributable to prepared coated fish,

where the market leader, Findus, invested in product innovation (fish burger ), advertising and

promotional support. Private label is also performing well, thanks to higher levels of

promotional activity. Increased promotional activity also supported the natural fish sector,

softening the impact of price increases and easing negative volume trends.

• Frozen vegetables: Higher promotional activity and advertising investment from the market

leader, Findus, helped the frozen vegetable sector improve slightly in Q2 2014. Frozen peas

(+5.7% both in volume/value) performed particularly well. Soups & cooking mixes, (+0.4% in

value) where higher priced convenience led innovation from Findus, helped to compensate for

the general negative market trends.

• Frozen ready-meals value sales declined but within this category the second dishes segment

experienced a growth of 10% in the 2nd quarter, driven by innovation from the market leader,

Findus (new range of grated cod recipes). Other segments, such as pasta-based first dishes

and side dishes, continue to decline. Growth previously seen in pizza has plateaued, with sales

relatively static quarter-on-quarter.

Italy

12




Euros, in millions

1.4

0 1 1 2

Frozen Meat

- 27.4

- 5.8

- 8.3

- 11.5

- 37.5

-40 -30 -20 -10 0

Frozen Desserts

Frozen Vegetables

Frozen Ready-Meals

Frozen Fish

Ice Cream

.Euros, in millions

PULSE REPORT

75

386

118

214

94

8,7 1,2-0,2 -1,6 2,6

Fro

zen

Ready-

Meals

Ice C

ream

Fro

zen F

ish

Fro

zen

Pota

to

Pro

ducts

Fro

zen

Vegeta

ble

s

Eu

ros, in

million

s


The Netherlands

13

Eu

ros,

in M

illi

on

s






2.2% 8.0%

12.6%

42.2%

0.5%

0.7% 1.3%

22.3%

10.2%


Frozen Potato Products Frozen Vegetables Frozen Desserts

Frozen Dough & Bread Products All other Frozen Meats Frozen Poultry

214

118 94

20 12 6 4

386

75

KEY TRENDS

• Annual trends for frozen foods in the

Netherlands show marginal value growth

(0.5%). Growth accelerated this quarter

compared to the same period in 2013,

driven by the strong performance of ice

cream.

• Frozen food performed better throughout

the economic downturn compared fresh

food (+0.3%), ambient (+0.2%) and non-

food (-0.9%).

• In value terms, the largest growth came

from ice cream. Growth is also seen in the

frozen meat products and frozen

vegetables.

• Supermarkets account for a majority of

frozen food growth for the quarter, whereas

sales within discounters fell by 3.0%

compared to 2013, driven by meat products

and a lesser performance in ice cream.

PULSE REPORT

The Netherlands

14




Euros, in millions

0,5

1,1

1,9

17,1

0 5 10 15 20

Ice Cream

Frozen Vegetables


All Other Frozen Meats

- 0.2

- 1.1

- 0.5

- 0.9

- 6.3

-8 -6 -4 -2 0

Frozen Fish

Frozen Poultry


Products

Frozen Desserts

Frozen Ready-Meals

.Euros, in millions

CATEGORY INSIGHTS

• The top winning categories posted combined growth of €20.6 million versus last year moving

annual total (MAT).

• Warm spring weather, with more weeks at above-average temperatures, prompted strong

ice cream sales (+8.7% in value terms). Single serve ice creams saw the highest level of

growth (+70%). However, in absolute terms, sales of multi-packs contributed more heavily

to growth.

• Besides ice cream, frozen vegetables also performed well. The frozen fruit sector was

strong (sales increased by 40% in both units and value in service supermarkets), driven by

higher levels of promotional activity. For the quarter, 20% of volume was sold on promotion.

• Frozen ready-meals suffered in Q2, bringing MAT basis sales down 1.6%. Sales in the

latest quarter, however, improved, with growth coming from frozen meat (+5% versus year

ago). World Cup festivities helped to boost demand of easy/quick meal solutions, such as

pizza.

PULSE REPORT

24.4%

5.2%3.2%

32.7%

0.2%

0.4%

26.2%

7.8%

Frozen Fish Ice Cream Frozen Ready-Meals

Frozen Vegetables Frozen Dough & Bread Products Frozen Potato Products

Frozen Desserts Frozen Meat

Spain

15

Eu

ros,

in m

illi

on

s




Value sales (€) and % change vs. year ago


613

542

168

72

8 4

729

113

113

729

542

613

168

5.8

-5.7 -1.6 -1.5

-4.1

Fro

zen F

ish

Ice C

ream

Fro

zen

Ready-M

eals

Fro

zen

Vegeta

ble

s

Fro

zen D

ough

& B

read

Pro

ducts

Eu

ros, in

million

s


KEY TRENDS

• The Spanish frozen food market posted

declines in the 2nd quarter, and value sales

fell -0.1% in MAT. Meanwhile, volume

declines were even sharper.

• Big movers in the Spanish frozen foods

segment are fish and seafood (-1.7% value

sales), pizzas (+1.6%) and ice cream

(+6.2%).

• Private label, which saw value sales decline

1.1%, still dominates the frozen food

market, with 57.9% market share.

PULSE REPORT

CATEGORY INSIGHTS

• Pescanova is the top frozen food manufacturer, boasting 7.3% share of market this quarter.

However, the company is experiencing sharp declines in the second quarter (-1.6% in value

and -4.3% in volume). Nestle, the second-largest manufacturer enjoyed 1.8% value growth

for the quarter, while Unilever sales climbed 2.6% during the same period.

• The new Findus Group (Findus and Bonduelle) changed assortment, mix of vegetables and

ready-to-eat categories, and achieved a brand leader position in many sectors. Still, sales

continue to struggle (-15.7% in value and -16.7% in volume).

• Ice cream - Unilever, the market leader (16.2% share of value sales) posted a sales

increase of 2.6% but remains unable to compete with private label’s dominance in the

category. For the quarter, private label value sales grew 6.3%, bringing share of value sales

to 69.0%. Volume share is 85.1%.

Spain

16




Euros, in millions

2.3

33.4

0 10 20 30 40

Ice Cream


- 11.3

- 8.8

- 4.8

- 0.9

- 10.1

-12 -10 -8 -6 -4 -2 0

Frozen Desserts


Products

Frozen Ready-Meals

Frozen Vegetables

Frozen Fish

.Euros, in millions

PULSE REPORT

4.9%

10.9%

17.7%

23.4%

4.2%

21.8%

17.1%

Frozen Ready-Meals Ice Cream Frozen Potato Products Frozen Fish

Frozen Vegetables Frozen Desserts Frozen Meat

The United Kingdom

17

Eu

ros,

in m

illi

on

s






934

758 735

212 180

1 005

468

468

1 005

758

934

735

9.7

-4.0

3.4

-6.1 -3.0

Fro

zen

Ready-

Meals

Ice C

ream

Fro

zen

Pota

to

Pro

ducts

Fro

zen F

ish

Fro

zen

Vegeta

ble

s

Eu

ro

s,

in m

illi

on

s


KEY TRENDS

• On an annual basis, the frozen food market in

the UK has contracted in both value and volume

terms. Past price inflation is no longer a driver

of year-on year-value growth.

• In Q2, sales grew 8.7% versus the previous

quarter, supported by warmer weather, which

boosted ice cream sales 87.0% (+€154m).

• Walls is clearly the top ice cream manufacturer

in the UK. For the quarter, Welles posted sales

growth of +132%, +£75m to their sales last

quarter.

• Though quarter-on-quarter sales grew, the

year-on-year trend is not as good. Sales fell 1%

versus Q2 2013 performance. Birds Eye

contributed heavily to this trend, posting sales

declines of 10% (€15m) year-on-year. This

decline primarily driven by their fish business,

which accounts for a large portion of their UK

business. Red meat & ready-meal business are

also contributing to overall Birds Eye declines.

PULSE REPORT

The United Kingdom

18




Euros, in millions

11.0

25.1

82.5

0 20 40 60 80 100

Ice Cream


Frozen Meat

- 64.8

- 14.6

- 4.7

- 30.5

-80 -60 -40 -20 0

Frozen

Desserts

Frozen

Vegetables

Frozen Fish

Frozen

Ready-Meals

.

CATEGORY INSIGHTS

• Ice cream performed well quarter-on-quarter, largely due to the seasonal nature of the category.

However, temperatures have not been as high as those seen in 2013 with the average weekly

temperature in the UK being lower than average for 10 out of the last 12 weeks and lower than

temperatures seen in 2013 in 9 out of the 12 weeks. Manufacturers are stepping up promotional

activity in an attempt to minimize the impact of the cooler temperatures.

• Frozen potato remains a key growth category within frozen food, fueled by price inflation. This is

beginning to level off, as the increases taken in 2013 annualise. In the latter part of 2013,

promotional support returned to the category, driven by McCain’s significant push both above the

line and in-store. In the latest quarter, these efforts slowed, resulting in quarter-on-quarter sales

declines of 8%.

• Ready meals: On a MAT basis, sales of frozen pizza and traditional ready-meals are in decline in

value and volume. Frozen pizza (-1.6% in value) is performing a bit better than versus ready-

meals (-8.5%), largely due to the fact that frozen pizza has significantly higher levels of

promotional support. In the latest quarter, frozen pizza received additional support due to World

Cup-related trade activity. The general decline of ready-meals accelerated in Q2 (-14%),

hampered by warmer weather, which generally has a negative impact on the sales of the more

traditional ‘hot’ meals and their components.

• Vegetables - Similar to potato we are seeing value growth on an MAT basis plateau and begin to

decline as price inflation and new products development (NPD) annualises. Sales in the latest

quarter slipped on a quarter-over-quarter basis, as consumers adapt their eating habits to the

warmer weather.

• Fish: Sales of frozen fish are in decline on a quarter-on-quarter basis, as well as on an annual

basis. In general, fish is becoming increasingly expensive as compared to other protein sources.

Despite well-publicised health benefits associated with eating fish, as a nation, the UK is eating

less fish.

Euros, in millions

PULSE REPORT

Final Notes

19

Notes on category definitions for countries

Due to the diverse products found in individual countries across this market it was necessary to

consolidate the available data into the categories in this report. In some cases it wasn’t always

possible to align products across all 6 countries hence the need to highlight any anomalies in

the report. Those exceptions are listed below:

Frozen dough and bread products

• The UK data in this report does not include this category.

All other frozen meats

• The Netherlands data in this report includes this category.

PULSE REPORT

Resources

20

About IRI. IRI is a leader in delivering powerful market and shopper information, predictive analysis and the foresight

that leads to action. We go beyond the data to ignite extraordinary growth for our clients in the CPG, retail and over-

the-counter healthcare industries by pinpointing what matters and illuminating how it can impact their businesses

across sales and marketing. Move your business forward at IRIworldwide.eu

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referenced herein are either trademarks or registered trademarks of IRI. All other trademarks are the property of their respective owners.

FOR MORE INFORMATION

Please contact Isabelle Staquet, Consultant,

IRI at [email protected] or

+33 1 30 06 26 68 with questions or comments about this report.

To gain insight into opportunities across specific categories, segments, channels or retailers,

contact your IRI client service representative regarding custom analyses leveraging the

following resources:

• InfoScan Census® is a syndicated retail tracking service that enables manufacturers and

retailers to acquire industry insights used to make better business decisions. InfoScan

Census utilises the data that IRI collects from grocery, drug, and mass merchandise retailers

to provide the most comprehensive and accurate syndicated data offering in the FMCG

sector. With access to accurate, granular detail by category, geography, measure, and time

period, clients have the tools needed to develop marketing and sales strategies based on

product performance, distribution, and promotion responsiveness. All data about frozen food

comes from InfoScan Census.

• IRI Consulting provides strategic insights and advice leveraging a variety of data sources,

predictive analytics, enabling technologies, and business analyses to help FMCG

manufacturers and retailers address significant sales and marketing issues effectively.

iri pulse report frozen food · iri pulse report frozen food welcome to the pulse q2 2014 edition...

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