SOTIC2006 Euromonitor

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Information about SOTIC2006 Euromonitor

Published on February 6, 2008

Author: Soffia


Slide 1: Welcome to NCA’s State of the Industry Conference Friday, March 3 • Orlando, Florida Slide 2: State of the worldwide SNACKING INDUSTRY Sin Hui Chew • Euromonitor Defining snacks: 3 Defining snacks A wider perspective Any food eaten outside of breakfast, lunch and dinner; small items to replace traditional meals Light, casual or hurried meal Food eaten while in transit Defining snacks: 4 Defining snacks Chocolate confectionery Sugar confectionery Gum Ice cream Cakes/Pastries Biscuits Snack bars Savoury Snacks Chips/crisps Extruded snacks Popcorn Tortilla/corn chips Pretzels Nuts Others (eg pork rind, meat snacks) Outline: 5 Outline Overview of global and regional sales indicators New product trends around the world Opportunities in the global environment Global sales of snacks: 6 Global sales of snacks Growth across snacks: 7 Growth across snacks Total market = US$418 billion Average vol growth in 2005 = 3% Global summary : 8 Global summary Chocolate, cakes, ice cream, biscuits, pastries, sugar confectionery constitute the largest segments Amongst the large segments, ice cream showed the best volume growth, driven by China Biscuits, pastries and chocolate demonstrated moderate good growth while sugar clocked the poorest performance hampered by sales in developed markets Nuts, others, snack bars were the best performing of niche segments Regional sales – N America: 9 Regional sales – N America Total market = US$116 billion Average growth in 2005 = 3% Important drivers = Nuts, others, snack bars Regional sales – L America: 10 Regional sales – L America Total market = US$36 billion Average growth in 2005 = 9% High growth = Snack bars, extruded/corn snacks, chocolate Regional sales – W Europe: 11 Regional sales – W Europe Total market = US$145 billion Average growth in 2005 = 3% High growth = Fruit snacks, tortilla, nuts, gum, others Regional sales – E Europe: 12 Regional sales – E Europe Total market = US$21 billion Average growth in 2005 = 6% High growth = Fruit snacks, others, popcorn, chips/crisps Regional sales – Asia Pac: 13 Regional sales – Asia Pac Total market = US$82 billion Average growth in 2005 = 3.5% / 7% (excl Japan) High growth = Fruit snacks, nuts, biscuits, chocolate, sugar, ice cream Share of packaged food: 14 Share of packaged food Summary : 15 Summary NA: Health & wellness products, comfort food and intense flavours in the forefront. Market ‘minorities’ now a majority in their own right LA: Renewed manufacturing activity driving growth. Children the key consumer segment but adult, teen segments are being pursued. Health is a growing concern WE: Health & wellness is the hot topic though indulgent treats such as chocolate are still very popular. Strength of private label exerting pressure on branded manufacturers EE: Economic activity driving growth. Localisation, growing loyalty to domestic brands to consider. Unpackaged/ unbranded snacks are also a force to reckon with AP: Young women consumers emerging as an important segment. Senior consumer segments are also being developed. Premium products sought after Outline: 16 Outline Overview of global and regional sales indicators New product trends around the world Opportunities in the global environment Changing perceptions: 17 Changing perceptions Could be consumed to supplement daily nutritional intake To help maintain energy throughout the day Enjoyable experience that can be healthy and/or indulgent Possible new positionings to exploit, communicate New products - Functional: 18 New products - Functional Healthy supplement Functional gum TE-A-TE/Lotte Digestive aid Pufu/Fujiya Flavoured chew with probiotics Stressful lifestyles Mental Balance GABA/Ezaki Glico Contains gamma amino butyric acid Heart-healthy CocoaVia bars/Mars High levels of flavanols New products - Functional: 19 New products - Functional Jelly drinks with nutrients Amino acid, royal jelly, beta-carotene, dietary fibre, vitamins and beauty enhancers (collagen) Nutrition logo Gamesa, leading Mexican player, launched “Ahora con NUTRI ” biscuits fortified with folic acid, iron and vitB12 Ice cream with a difference I.V by Kanebo: Cholesterol-free, no additives and higher iron and magnesium content Meiji Dairies’ Healsta contains live lactic acid bacteria and 4.3g of fibre to aid digestion New products – Better for you : 20 New products – Better for you New Technology Dreyer’s Slow Churned Light Ice Cream New “slow-churning” technology to keep the full fat, premium ice cream flavour while cutting the amount of fat in half and reducing the calories by one third Sugar-free chocolate enters the mainstream Low Carb Hershey’s 1 Gram Sugar Carb Bar Oreo, Chips Ahoy cookies Keebler Chips Deluxe Carb Sensible Cheetos Edge, Doritos Edge, Tostitos Edge New products – Natural/Organic: 21 New products – Natural/Organic Green & Black’s chocolate, biscuits, ice cream Frito-Lay Natural Tostitos, Natural Cheetos Natural organic Sun Snacks extension from Sun Chips Clif’s Nectar line of snack bars (100% organic ) Promoted as “the essence of simple” New products - Indulgent: 22 New products - Indulgent Affordable luxury Luxury boutiques Japan: Saite Dominique Chocolat, Chocolat Bar Bascal Caffet, Del Rey, Oriol Balgauer Russia: Leonidas, Godiva, Lindt, Konfael (local exclusive handmade chocolate producer) and Odintsovskaya US: Ethel’s Choc Lounge (Mars) Hershey’s Extra Dark Winter ice cream campaigns evoke sensual, warm, indulgent images New products – Indulgent/fun: 23 New products – Indulgent/fun Cold Stone Creamery In 2004, 362 new stores in the US. Entry into Japan in 2005 “Build Your Own” Customer chooses from wide variety of flavours, selects any number of “mix-ins”. The ice cream is spread on a cold surface and flattened with special tools Entertaining and lively concept New Products – Child oriented : 24 New Products – Child oriented Fun packaging Grupo Lorena’s “bald” candy products including Pelon Pelo Rico Effem/Mars introduced Panzón candy Comes with cap shaped as Mexican sombrero Twizzler Twerps bite-sized chewy filled Twizzlers candies Interactive qualities World Wrestling Entertainment Superstar Tongue Tattoo Pops; Twist & Glo Pop Image of a wrestling superstar that could be transferred onto the tongue; Phosphorescent light stick embedded inside the lollipop New Products – Older consumers : 25 New Products – Older consumers Senior Consumers Xylitol Free Zone, Lotte Functional gum suitable for people wearing dentures Non Chew sugar confectionery, Kanebo New technology to prevent the chew from sticking to teeth Legitimising snacking in the office Packaging for the office Will Relax Tablets (sugar confectionery) to be placed on office desks by Ezaki Glico New products - Localisation: 26 New products - Localisation Brand: Snow Dumpling ice cream Company: Bright Food Co Launched Date: Jan 2005 in China Traditionally, Chinese consumers eat real dumplings during the first month of the Chinese new year Product concept: Glutinous rice as wrapping with ice cream as filling, shaped like a traditional dumpling Slogan: “ dumpling that doesn’t need to be cooked”! New products - Localisation: 27 New products - Localisation Hot Stuff! Barcel’s Pikingos, gum with chilli flavour New Korea spicy snacks in Japan No tradition of such spicy flavours but current Korean wave has changed local tastes! Eg Boukun Habanero by Tohato Beerka from Sibirsky Bereg in Russia Packaging that resembles a newspaper Evoking the pastime of reading papers, drinking beer and snacking Traditional Mexican sweets “dulces típicos Mexicanos” appearing as packaged products Outline: 28 Outline Overview of global and regional sales indicators New product trends around the world Opportunities in the global environment Competitive environment: 29 Competitive environment 2004 Top Global Players (retail value, rsp) Competitive environment: 30 Competitive environment 2004 Top 5 Regional Players (retail value, rsp) Not one player ranked top 5 in all regions Kraft, PepsiCo – 6th, 7th place in W Europe Asia Pac remains hard to crack Developed world: 31 Developed world Total snacks: Per capita retail value expenditure (USD) Spain predicted to show the strongest growth Germany languishing from pressure from discounters/retailers and private label Moderate growth but in actual value terms, these markets are very significant Developing world: 32 Developing world Total snacks: Per capita retail value expenditure (USD) Brick economies: China, India, Russia and Brazil – low per cap value and high growth predicted Other markets with high predicted growth inlude Mexico, Indonesia, Vietnam, Turkey Average per cap spend still a big distance behind developed nations Slide 33: Sin Hui Chew Euromonitor International

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