MARCH 2007 www.checkoutmagazine.co.

uk

EXCLUSIVE NIELSEN DATA

Healthiest BRANDS
Why this basket is better for you

Inside

TOP 100 RANKINGS

The league table of top selling grocery brands and the fastest growers

TOP FLIGHT INTERVIEWS

Directors at Kelloggs, Yeo Valley Organic, Innocent and other Top 100 brands share their strategies for success

ONES TO WATCH
Brands tipped to make the move into the Top 100 in 2007

Inside
4 NIELSEN COMMENT Eleni Nicholas, group managing director, UK & Ireland, ACNielsen, finds two-thirds of the leading grocery brands are in growth and particularly those that have embraced the health agenda 6 TOP OF THE SHOPS Coca-Cola stays on top, the bread brands battle it out, Walkers has healthy recipe for success and plush paper is the dogs danglies for Andrex 7 EXPERIENCE IS EVERYTHING Lucozade shows great energy and marketing potential while Sainsburys says keep an eye on Kingsmill 8 HEALTHY HOOKS Tetley gets passionate about tea and bags a health angle while Red Bull grabs functionality by the horns 10 CEREAL STORIES Weetabix extends its reach, tradition buoys Cathedral City and premium pushes Goodfellas 12 SHAPE MANAGEMENT Kelloggs gets in shape with Special K and the top water brands ride a healthy drinking wave 17 HIGH FLIERS AND DEBUTANTS Danone Bio Activia and Innocent leap into the Top 100 Grocery Brands league with spectacular sales 18 PET FAVOURITES Health, premium and life stage trends are shaping the pet food category. Ice cream, frozen fish and Goodfellas frozen pizzas drive growth at Nisafreeze 20 ORGANIC AND NATURAL Yeo Valley is first entirely organic brand to enter the Top 100 22 SOFT FOCUS MBL trading manager, Lyana Doyle, highlights the soft drinks trends 24 DIDNT THEY DO WELL Checkout highlights the success of the brands we tipped last year 26 ONES TO WATCH We tip some of the fastest growing brands that fall just outside the Top 100 list

TOP 100 GROCERY BRANDS

Healthy eating: becoming a habit

The nations diet is changing with healthier products moving up the Top 100 Grocery Brands league and delivering the biggest growth OVERVIEW
Fiona Briggs, editor, Checkout has reversed a 6.6% sales decline in 2005 to a healthy 4% sales rise in 2006, winning back consumers with its healthier crisp recipe. Pet food hasnt escaped the health trend either with brands like Pedigree, 15th and up 3.4%, and Bakers, 78th and up 19.4%, starting to promote weight control lines. But while the Top 100 Grocery Brands report highlights the overriding trend to healthy eating, indulgence and a move towards more premium products is shaping the table too. Kelloggs, for instance, reckons its Special K brand (54th and up 17.2%) benefits from its positioning as a shape management product but one that also allows for some indulgence via variants like Special K Bliss Strawberry & Chocolate. Leading cereal brand Weetabix is making similar noises with the launch of a new chocolate variant in its product portfolio this year. Innocent is another brand ticking the premium, indulgent and good-for-you boxes; while frozen pizza brand Goodfellas (49th and up 25.7%) has grown via its premium positioning in a category, which is in decline overall. And in non-food, Andrex (7th and up 5.2%) has found brand growth with the launch of more luxurious paper lines. As well as trends, Checkouts Top 100 Grocery Brands report highlights several individual brand success stories. Included is Warburtons, which has consolidated its number two brand position in the league with 17.7% growth, and is still to reap the full benefit of national distribution. Hovis deserves special mention too. It has leapfrogged Cadbury Dairy Milk in 2006 to become the fourth biggest grocery brand with sales up by 16.1%. Yeo Valley also stands out. With sales growth of 25% last year, it is the first organic brand to enter the Top 100 league, at number 88. Like other players in the league, it is benefiting from the trend to more natural and wholesome products, as well as winning buy-in from shoppers seeking the additional attributes of organic products. These are all pointers for future brand success and it is my guess it wont be too long before a Fair Trade brand makes the Top 100 Grocery Brands league as the rise of the so-called conscious consumer continues unabated. The Top 100 Grocery Brands report provides a compelling checklist of the key attributes shaping brand success. In no particular order they are health, functionality, premium, indulgent, organic, convenient and savvy. It also shows how established brands can tick those boxes to grow further, but also that newer players can very quickly make their mark.
TOP100 GROCERY BRANDS 3

UK

Cover photo: Michael Pilkington Model brands: Coca-Cola (1), Warburtons (2), Hovis (4), Tropicana (11), Volvic (30), Weetabix (42), Kelloggs Special K (54), Danone Bio Acitvia (60), Innocent (63), Uncle Bens Rice (66), Bakers (78), Cravendale (79), Yeo Valley Organic (88), Twinings (100)

consumers are buying healthier food and drinks, according to Checkouts Top 100 Grocery Brands report. Compiled in conjunction with Nielsen and based on sales at more than 74,000 grocery stores, the study shows the fastest growing food and drink brands in 2006 are those that are better for you. In almost every product category bread, soft drinks, yogurt, cereal and even crisps and snacks the grocery brands that are selling well are those with a healthier product proposition. This unique ranking of leading UK grocery brands reveals real fruit smoothie brand Innocent has entered the Top 100 for the first time, at number 63, and is the fastest growing brand with sales up 139.9% last year to 96.3m. Danone Bio Activia, a yogurt designed to reduce digestive bloating and tipped by Checkout as a brand to watch last year, also enters the Top 100 for the first time at 60. It is the second fastest growing brand with sales up by 77.2% in 2006 to 97.9m. In the soft drinks sector, it is the water brands Volvic and Evian, ranked 30th and 56th respectively, and fruit juices such as Tropicana, 11th, which are growing strongly, ahead of their carbonated rivals. Coca-Cola, however, hangs on to the number one slot with sales growth of 5%, but largely fuelled by the launch of its Coke Zero, no added sugar brand. Elsewhere, energy drinks Red Bull and Lucozade have continued to deliver strong growth via a mix of new variants and creative marketing. Even the best selling hot beverages brands have found a health angle to hang their hats on. Top tea brand Tetley (36th in the league), for example, has grown in a mature market and is now emphasising the antioxidant properties of tea. Twinings, also tipped as a brand to watch last year, sneaks the 100th brand position, capitalising on sales of its fruit and herbal teas range. And 2006 has been a turnaround year for the UKs leading crisps and snacks brand, Walkers. It Editor: Fiona Briggs Contributors: Mike Dennis, Martin Gurdon, Andrew Skingley, Camille Smith Group sales manager: Emma Beaglehole Portfolio sales manager: Andrew Powell Key account executive: Lucy Pierce, Sales executives: Sacha Burek, Scott Seabrook, Ben Webb Business sector manager: Helen Baldock

TOP 100 GROCERY BRANDS is a supplement to Checkout and Independent Retail News. Published by Nexus Business Media, Media House, Azalea Drive, Swanley, Kent BR8 8HU. All rights reserved by Nexus Business Media, reproduction in whole or part without written permission is strictly prohibited. Printed by Headley Brothers Ltd, Ashford, Kent.
MARCH 2007 www.checkoutmagazine.co.uk

* Top 100 value figures on this page have been rounded to the nearest tenth of a million.

TOP100 GROCERY BRANDS

MARKET COVERAGE
NIELSEN SCANTRACK UNIVERSES

The Top 100 can save the planet

Brands looking after the nations wellbeing have done well in 2006. The trend for the future will be even more demanding of manufacturers INSIGHT
Eleni Nicholas, group managing director, UK & Ireland, ACNielsen

NO OF STORES AS OF JUNE 2006 TOTAL COVERAGE GB TOTAL GROCERY MULTIPLES TOTAL CO-OP GROCERS TOTAL MULTIPLE FORECOURTS TOTAL MULTIPLE OFF-LICENCES TOTAL SYMBOL GROUPS TOTAL INDEPENDENTS TOTAL OTHER IMPULSE GROCERY MULTIPLES ASDA ICELAND JACKSONS MARKS & SPENCER MORRISONS NETTO OTHER GROCERY MULTIPLES SAINSBURYS CENTRAL SAINSBURYS LOCAL SAINSBURYS STORES SOMERFIELD SOMERFIELD/ELF T&S CONVENIENCE TESCO EXPRESS TESCO EXTRA TESCO METRO TESCO SUPERSTORES WAITROSE TOTAL CO-OPS ALLDAYS BALFOUR THE CO-OPERATIVE GROUP UNITED CO-OP OTHER CO-OPS TOTAL MULTIPLE FORECOURTS BP BP CONNECT ESSO Q8 TOTAL FINA ELF OTHER FORECOURTS TOTAL MULTIPLE OFF-LICENCES THRESHER GROUP MAJESTIC WINE ODDBINS WINE CELLAR OTHER MULTIPLE OFF-LICENCES TOTAL INDEPENDENTS INDEPENDENTS LICENCED INDEPENDENTS SPECIALIST INDEPENDENTS UNLICENCED TOTAL OTHER IMPULSE MULTIPLES DILLONS FORBUOYS MARTINS MCCOLLS RS MCCOLLS WHSMITH WOOLWORTH OTHER IMPULSE MULTIPLES TOTAL

74,042 6,452 3,156 2,846 3,201 7,562 47,359 3,466

What

a successful year Britains Top 100 grocery brands have enjoyed. Sixty seven of the 100 brands are in growth, 29 of these in double or triple digit growth. Three brands have grown their business more than 50m, and one, has added over 77m to its sales in 2006. In total, the Top 100 accounted for over 14bn worth of sales thats almost 20% of the whole food and beverage grocery market in 2006, including own label. As predicted, health has once again dominated the consumers agenda and our food industry has responded accordingly with many manufacturers and retailers fundamentally changing their products to provide a healthier offering. Salt reduced. Fat reduced. Sugar reduced. Trans fats out. Artificial additives out. We have seen major retailers move away from promoting on price, rather choosing to promote on healthy eating. Many have embraced the 5-a-day message and debates on formats aside all have made efforts to label their food more clearly. Manufacturers too have made great inroads and as we can see, the brands that have fared particularly well in this years Top 100 have embraced the health issue. Last year we barely had a smoothie category and Innocent, though showing strong growth, was millions of pounds away from making the list. This year the trailblazing brand entered at 63, topped the tables in terms of growth and has driven the category into the mainstream. Its a perfect example of a product that fulfils the needs of todays consumer. But its not just the infants of the market who have built their growth on improving our nations well being. A category as basic and familiar as bread has enjoyed huge growth. The wholemeal-white sector and granary, seeded, and fortified versions all contributing. Warburtons is our countrys
TOP 100 GROCERY BRANDS

281 670 117 405 374 147 903 17 80 445 977 18 516 637 115 99 478 173 6,452

132 68 1,427 498 1,031 3,156

195 167 447 26 333 1,678 2,846

second biggest brand and its formidable growth in the past 12 months has now tipped its sales over the half-billion pound mark. So what does 2007 hold for food manufacturing and retailing? I think consumers concerns about themselves will turn outwards and the health of our planet and its people will be on everyones agenda. We are seeing major supermarkets leading the way in British industry by implementing green initiatives and pledging to cut emissions. Sourcing principles such as buying British, buying local or buying sustainable fish stocks, which are already in place, will become more widespread. Using recycled bags and packaging will become more important. Developing supply chain initiatives that work on emission reductions will be key for manufacturers in helping retailers achieve their pledges. Stocking fair trade, organic and free range will be key. Consumers are developing a conscience and in 2007 the grocery industry will rise to this new challenge.

2021 125 267 186 602 3,201

26,198 5169 15,992 47,359

176 392 442 121 153 540 801 841 3,466

www.checkoutmagazine.co.uk MARCH 2007

* Top 100 value figures on this page have been rounded to the nearest tenth of a million.

TOP100 GROCERY BRANDS

COCA-COLA

2006 942.4m 2005 897.2m yoy change 5.0% all variants of Coca-Cola including regular, diet, Zero, Caffeine Free and flavoured

Battle of the bread brands

Walkers fat reduction lifts sales

WARBURTONS

2006 514.3m 2005 437.0m yoy change 17.7% all Warburtons branded bread and bakery products such as rolls, crumpets, speciality breads, muffins
ONCE again Hovis and Warburtons have been slugging it out in the Battle of the breads and both have delivered impressive growth. Hovis sales are up 16.1% and Warburtons up by 17.7% at a time when wrapped bread in total grew by just 9.7%. Not surprisingly the growth has come from our extended distribution, says Sarah Miskell, category marketing controller at Warburtons. Since July last year we have had the ability to supply nationally and have secured distribution with all of the major retailers. The missing piece in the Warburtons map was south-west England where its share had been 1.8% and now it is 6.9% and Miskell is delighted. Distribution is handled by its new depot in Newton Abbot and another bakery in the deep south looks certain as sales continue to grow. In January this year we launched national TV advertising. That was a first for us a luxury we had not had before. While its top-selling Toastie and Blue medium sliced remain the core of its business, NPD is also very important to Warburtons. Its All in One loaf, its Healthy Inside probiotic loaf and its Wholegrain Goodness have all grown sales. Most importantly we make cracking quality bread that people come back for, Miskell says. Hovis, too, has been busy with NPD. Best of Both,

2006 403.1m 2005 347.4m yoy change 16.1% all Hovis branded bread and bakery products such as rolls, crumpets, speciality breads, muffins

HOVIS

WALKERS CRISPS

2006 424.0m 2005 407.8m yoy change 4.0% includes Walkers Crisps, Walkers Big Eats, Walkers Grab Bags, Walkers Mediterranean, Walkers Lites
ITS A happy irony for Walkers that public concern over fat and salt content in products like its mainstay crisps, which led to a production and cooking rethink, led to a 4% year end demand increase. We switched to cooking in sunseed oil, which has 70% less saturated fat than olive oil, says Jon Goldstone, the brands marketing vice president. Then there was a 25% reduction in salt content. These improvements were trialed in February, in a very factual manner, according to Goldstone, and the favourable public response to them helps explain why Walkers took the number three slot in the Top 100 Brands survey. He insists the well publicised fat and salt reduction in its regular products has not resulted in a fall off in demand for Walkers Lites and Potato Head lines. The company also spent heavily on new plant to produce Walkers Baked crisps. Launched at the tail end of 2006, this lower fat range has found a ready market. Its going great guns. Taking up to 2% of the market, much more significant than wed expected, and we only began television advertising in January, says Goldstone. During the first quarter of this year, promotion for Walkers products is being tied in with the hugely successful Comic Relief charity event, but Goldstone is promising a new, large scale marketing push later in the year, although he is reluctant to reveal exactly what this will mean. The company is now preparing to launch reduced salt, sunseed oil cooked Monster Munch, Quavers and Wotsits. These brands are not in this years Top 100, but perhaps the move could change that.

which offers white bread with all the wheatgerm goodness of wholemeal, is a classic example. It was launched in 2001 and now accounts for sales of 100m. Hovis Granary, another newcomer, has annual sales of nearly 30m while Invisible Crust is also a Hovis success. Launched in 2005 and relaunched this year, it is the worlds first crustless bread. Brand manager Ifan Jenkins says it has been a phenomenal success with sales amounting to 18m a year. The long-term focus is on healthy eating, adds Jenkins. It is all about driving growth and meeting consumer needs, he adds.

Andrex on a quilted roll

ANDREX

2006 326.6m 2005 310.6m yoy change 5.2% Andrex dry and moist toilet tissue
ITS NOT just foodstuffs that are putting on sales thanks to a move upmarket, as Andrex marketing manager Alex Pickering is happy to confirm. According to Pickering, the Andrex Quilts line has offered a premium pricing proposition, and helped with the brands broader growth, which has seen it achieve seventh place in the Top 100 brands survey, thanks to a 5.2% sales increase, worth 326.6m. Since 2000, when Andrex introduced toilet tissue with aloe vera, this high street staple has widened its appeal, and has continued looking for fresh ways to do this. Pickering insists this isnt just down to making its paper products posher. The second element is keeping mainstream Andrex in the public eye, he says.

5 6
6

CADBURY DAIRY MILK

2006 361.5m 2005 370.8m yoy change -2.5% all Cadbury Dairy Milk chocolate variants

NESCAF

2006 331.3m 2005 333.9m yoy change -0.8% all variants including Nescaf Original, Gold Blend, Nescaf Speciality range, Nescaf Decaff/Half Caff brands
TOP 100 GROCERY BRANDS

Last year we refreshed the ranges colours. He identifies a third element to the brands ongoing success as marketing, in particular media campaigns, featuring ever-cuter variations of the Andrex puppy. We have a very high commitment to advertise Andrex throughout the year, and a real consistency with our advertising, he says. Certainly gambolling Labrador pups have become almost generic points of recognition in newspapers and on television, and theres an aura of goodwill surrounding the brand. Images are more powerful than words, reckons Pickering. He suggests these three elements are as important as each other in driving demand for the Andrex range, and although reluctant to discuss specifics when it comes to plans for 2007, Pickering is promising a busy year, which will see Andrex working to increase the total market for toilet tissues, as part of a strategy for further improving its own performance.
www.checkoutmagazine.co.uk MARCH 2007

* Top 100 value figures on this page have been rounded to the nearest tenth of a million.

TOP 100 GROCERY BRANDS

Lucozade: consumers buy into the experience

BREAD IN STORE
Ian Cambridge, buyer, bought-in bread and rolls, morning goods and organic, Sainsburys

LUCOZADE
level of growth took even us by surprise. According to Kemp, perhaps the biggest driver of growth over 2006 has been Lucozades investment in experiential marketing taking the brand to the consumer at the moment of need, he explains. This unique approach was taken with both brands in the form of the Lucozade Sport Performance Zone and the Lucozade Energy Energising Britain campaign. The Performance Zone links with major running and 5-a-side football events across the country and is staffed by experienced sport scientists to offer consumers specific advice regarding hydration and nutrition at the moment of need. The Energising Britain campaign takes Lucozade Energy to consumers at motorway service stations and building sites across 60 of the nations cities via a travelling milk float. Our departure into experiential marketing is a real landmark, says Kemp. It worked fantastically well for us. It worked so well, Lucozade is planning more of the same for 2007, according to Kemp: Well continue to invest heavily in experiential marketing, based on the success of 2006. We see lots of opportunity to keep on growing as we have in the past and believe 2007 will be at least as successful as 2006 in terms of level of growth. This year weve got the most exciting set of brand plans that Ive ever been involved in. Weve got a major re-launch in Lucozade Energy coming up. In Sport, we are launching new and improved flavours at the back end of the first quarter. Then later in the year weve got a new variant under Sport. Plus, we have a long and successful association with the FA Premier League which will continue. These prospects leave us very excited about this year.

2006 296.2m 2005 254.3m yoy change 16.5% all Lucozade drinks including still and carbonated variants
LUCOZADE has out-performed the soft drinks category with 16.5% growth in 2006 and eclipsed Robinsons to become the number two soft drinks brand in the UK behind Coca-Cola. The brands sales value rocketed to 296.2m in the last year, marking three consecutive years of significant growth for the portfolio of energy drinks. Simon Kemp, category director for Lucozade, cites the launch of a new flavour, a boost from good weather and the introduction of completely unique marketing strategies across both Lucozade Energy and Lucozade Sport as the main drivers behind this growth. The launch of Lucozade Energy Apple was an outstanding success, he says. It went from a standing start to being the third fastest growing flavour (in the portfolio of six) and most of those sales were incremental, which made a big difference to Lucozade Energy. Though he admits the unusually hot summer was a helping hand in Lucozades success, he only puts about 2% of the brands growth down to the weather. And, he is quick to point out the scorching temperatures of July were a challenge, as well as an opportunity for the brand. When the weather was as hot as it was, it put a lot of pressure on the supply chain, he explains. We had to cope with a 30% growth in Lucozade Sport year-on-year an incredible level of demand. We forecast strong growth, but that

With

KINGSMILL

2006 282.3m 2005 296.9m yoy change -4.9% all Kingsmill branded bread and bakery including rolls, crumpets, speciality breads
Kingsmill is looking to reverse the sales decline of 2006 and consolidate its position as a top 10 grocery brand this year with a 14m relaunch of its brand. It comprises a new product formulation, a bigger loaf, clear segmentation between six new sub-brands and new packaging. It will be supported by a 10m advertising campaign featuring Kingsmills first 60-second TV commercial. The six sub brands are: Kingsmill Great Everyday, Kingsmill Head Start, Kingsmill 50/50, Kingsmill Crusts Away!, Kingsmill Good as Gold and Kingsmill Toastie. Jon Wilson, marketing director at parent Allied Bakeries, says: Our products have been reformulated and renamed and divided into distinct sub-brands which deliver against specific consumer needs and make choice easier for shoppers. We are dedicated to growing the bakery category with our long term vision and see 2007 as a very exciting year for Kingsmill.

10 11 12 13

ROBINSONS

2006 277.3m 2005 265.0m yoy change 4.6% all Robinsons juice drinks including dilutable and ready to drink

TROPICANA
2006 2005 yoy change 222.5m 174.6m 27.4%

PERSIL LAUNDRY

2006 217.0m 2005 218.0m yoy change -0.4% all Persil laundry products including powder, tablets, tabs and liquid

PEPSI-COLA

2006 216.3m 2005 227.2m yoy change -4.8% all Pepsi products including Diet and Max

the three largest bread brands all featuring in the top 10 grocery brands, Ian Cambridge, Sainsburys new bread buyer, is in no doubt of the enormity of the category he is now managing. Previously responsible for morning goods and organic at Sainsburys, Cambridge took on his new role earlier this year and will caretake morning goods and organic until a repacement is appointed at the end of March. Bread will be an exciting battlefield in 2007, predicts Cambridge. Warburtons is the top bread brand and number two in the total Top 100 league. Last year it extended its lead with sales up by 17.7% to 514.3m. Hovis, the number two bread brand and fourth largest grocery brand, gained an impressive 16.1% to take sales to 430.1m. Kingsmill, the number three bread brand, slipped from eighth to ninth position in the Top 100 in 2006 with a 4.9% sales decline. Its against that backdrop the big bread brands will be competing in 2007, says Cambridge. Warburtons, now benefiting from national distribution, is poised to grow, he says. Warburtons doesnt promote its bread. Warburtons growth has come from selling good quality bread that consumers are liking. Warburtons will continue to grow its market share. Hovis and Warburtons are both very similar in what they are offering the consumer healthy wholesomeness and very family oriented, says Cambridge, but Hovis is going to have to be very proactive in not having Warburtons pinch market share. Then you have Kingsmill, whose market share has slid, but it is going to be coming back with a vengence in the next month, so watch out Hovis again. Inflation and rising wheat prices in particular, are also set to impact the sector this year, forecasts Cambridge. It will be interesting to see what happens to actual consumption, he says. The trend to healthier eating will also continue to play out in the category. Theres a general move towards more healthy products such as bagels and wraps, he says. Customers are also becoming more aware of high carb and super foods like oats. These trends have fuelled sales of products such as Hoviss Best of Both, which both other leading bread brands have subsequently mimicked. Sainsburys has also launched an own label version called Whole and White. The good old fashioned sliced white loaf will fall away in the future, forecasts Cambridge. Im amazed at things like wraps I eat them for lunch rather than a pre-packed sandwich and, with a Be Good To Yourself filling, they dont have the high carb content. Consumers are also wanting things with seeds in, adds Cambridge. We have launched a seeded pitta bread which is doing very well and sub brands like The Food Doctor have moved into bakery. Its all adding to the healthy trend.
TOP100 GROCERY BRANDS 7

MARCH 2007 www.checkoutmagazine.co.uk

* Top 100 value figures on this page have been rounded to the nearest tenth of a million.

TOP100 GROCERY BRANDS

14 15 16 17 18 19 20 21 22 23 24 25 26
8

WHISKAS
2006 2005 yoy change 2006 2005 yoy change 216.1m 196.8m 9.8% 192.0m 187.3m 2.5% 185.2m 179.1m 3.4% 183.2m 177.9m 3.0% 182.2m 169.9m 7.3% 175.8m 164.6m 6.8%

PEDIGREE PETFOOD

FLORA
2006 2005 yoy change

MLLER CORNER
2006 2005 yoy change 2006 2005 yoy change

MCCAIN FROZEN CHIPS

LURPAK
2006 2005 yoy change

HEINZ BAKED BEANS

2006 175.2m 2005 169.7m yoy change 3.3% includes Heinz original, Barbecue, Curried, Healthy Balance, Microwaveable, Organic and Weight Watchers Baked Beans

ARIEL
2006 2005 yoy change 174.2m 185.2m -5.9%

BERNARD MATTHEWS COOKED MEAT

2006 2005 yoy change 173.6m 185.6m -6.5%

WRIGLEYS EXTRA

2006 169.4m 2005 166.1m yoy change 2% includes Wrigleys Extra gum, mints and breath strips

27 28 29 30 31 32 33 34 35

BIRDS EYE FROZEN FISH

2006 2005 yoy change 158.8m 139.1m 14.1%

HEINZ SOUPS

Tetley: aiming to be everyones cup of tea

2006 156.5m 2005 160.4m yoy change -2.4% includes all Heinz soups including Weight Watchers from Heinz

36

TETLEY
2006 2005 yoy change 132.8m 129.1m 2.8%

RIBENA
2006 2005 yoy change 153.0m 152.6m 0.3% 148.2m 131.1m 13.1% 147.1m 135.3m 8.7%

VOLVIC
2006 2005 yoy change 2006 2005 yoy change

MR KIPLING CAKES

YOUNGS FROZEN FISH

2006 146.4m 2005 146.1m yoy change 0.2% includes Youngs, Young Uns, Youngs Chip Shop and Youngs Harry Ramsdens

PRINGLES

2006 141.7m 2005 123.7m yoy change 14.6% includes Pringles, Pringles Minis, Pringles Dippers, Pringles Ridges, Pringles Right

KITKAT
140.5m 141.2m -0.4%

2006 2005 yoy change all Kitkat variants

RED BULL
2006 2005 yoy change 139.1m 124.9m 11.4%

BOLD
2006 2005 yoy change 166.9m 151.4m 10.2% 161.5m 170.6m -5.3% 159.2m 142.5m 11.7%

FELIX
2006 2005 yoy change

GALAXY
2006 2005 yoy change

Four years ago about 70% of Red Bulls sales were generated in pubs, bars and clubs. Now the reverse is true, and 2006 saw it enjoy a sixth year of double digit sales growth. It was a trendy product, very much in top end bars, but the danger was that it would just be drunk on nights out, says head of marketing Imogen Puddock. We had to get people to understand the drinks functionality. We went back to basics with our marketing and commercial strategies, says Puddock, adding that the product scored 81% in research for spontaneous brand awareness. With a slick mix of sponsorship from the Red Bull Academy, intended to help future sporting talent, to sponsoring motor racing and a branded stunt aircraft team the subject of a spin off Channel 4 television series and public tastings involving drivers in liveried Minis (1.5m people will sample the brand as a result), Red Bull looks set for a busy 2007.

TETLEY has extended its lead as Britains number one tea brand with 2.8% sales growth in 2006 to 132.8m. Weve been number one for a few years now and expect to be number one going forward, says Attfield: passion for tea Simon Attfield, customer marketing controller. It demonstrates our commitment to the whole tea category we only do tea and we are absolutely passionate about tea. Attfield credits the brands gains to its loyal following, the quality and reassurance of the Tetley name and for fulfilling its mission to be everyones cup of tea. Key to the brands success has been Tetleys ability to encourage consumers to widen their repertoire across different types and flavours of tea such as fruit and herbal, speciality, decaff, green and the recently launched, Redbush. We want to let people know how wonderful tea is and that its for any occasion, says Attfield. Attfield claims Tetleys matter of fact and down to earth personality is helping to take shoppers to sectors of teas they have previously seen as out of their domain. Tetleys Extra Strong tea, for instance, was born out of research, which showed some tea drinkers like stronger tea and were leaving their tea bags in for longer for a stronger taste. The Tetley product provides the strength they seek but without the stewed taste, says Attfield. It is a very mature market, he adds, and very competitive. Previously, half of everything that was drunk was tea. Now theres a large repertoire of drinks out there. We need to show people that if they dont want caffeine before bed, for example, they dont have to revert away from tea they can have decaff or Redbush, tea still has a place for them. And Attfield can even provide a healthy hook to hang Tetleys tea bags on. Tetley, he says, has been campaigning to dispel the myth tea has a high caffeine content and therefore acts as a diuretic. Tea, like water, is hydrating, and its a rich source of antioxidants. Its also low calorie and no calorie without milk and a natural product, so tea is fulfilling the health trend that people buy into and we are communicating those messages. Like other Top 100 brands, Tetley finds health is gaining momentum with sales of its decaff tea, for instance, up 11% and taking 36% share of the decaff market. Again, explains Attfield, its about providing products to meet specific needs and being everyones cup of tea. That message will be pushed throughout 2007 and a via a new advertising campaign. We want to make sure people know there are teas there for whatever they need, not just a staple tea day in and day out or even one tea for the whole family. We want to make sure people have the right tea for what they are looking for.
www.checkoutmagazine.co.uk MARCH 2007

TOP100 GROCERY BRANDS

* Top 100 value figures on this page have been rounded to the nearest tenth of a million.

TOP100 GROCERY BRANDS

37 38 39 40 41 42

PG TIPS
2006 2005 yoy change 128.2m 127.9m 0.2% 127.6m 139.8m -8.7% 126.8m 148.1m -14.4%

FANTA
2006 2005 yoy change

SILVER SPOON

2006 2005 yoy change includes sugar and sweeteners

MALTESERS
2006 2005 yoy change 121.0m 125.3m -3.4%

JOHN WEST CANNED FISH

2006 2005 yoy change 118.9m 117.6m 1.2%

43 44 45 46 47

DAIRLYEA
2006 2005 yoy change 117.3m 115.9m 1.2%

DOLMIO COOKING SAUCES

2006 2005 yoy change 114.6m 110.2m 4% 112.2m 137.8m -18.6% 111.6m 113.3m -1.5% 106.8m 116.4m -8.2%

48 49

PRINCES CANNED FISH

2006 2005 yoy change 104.9m 101.9m 2.9%

GOODFELLAS FROZEN PIZZA

2006 2005 yoy change 104.2m 82.9m 25.7%

MLLER LIGHT
2006 2005 yoy change

FINISH
2006 2005 yoy change

ACTIMEL
2006 2005 yoy change

Frozen pizza giant Goodfellas marketing manager Adrian Mooney thinks his company lacks something but hes not complaining. In an age of global businesses where management decisions have to go via Switzerland, we have a very flat management structure, which is manna from heaven for a marketer, says Mooney, who reckons his business can respond quickly to customer and retailer demands. He sites a six-week turnaround to re-package its premium La Bottega line as an example. Once youve set out to do something the whole organisation moves with you. This responsiveness is one reason why Goodfellas market share has grown by 31%, and doubled its value in three years. Persuading consumers that frozen, home cooked pizzas arent poor relations of restaurant versions has helped drive the brand, as has the 2006 launch of Solos childrens and snacking lines which generated 19.6m.

Weetabix tops cereals table

WEETABIX
2006 118.9m 2005 108.5m yoy change 9.6% includes Weetabix original, Organic, Gold and Minis
THAT a brand as well known as Weetabix should secure 42nd place in our brand listings after increasing sales by 9.6%, demonstrates the sheer scale of the market into which it sells. The company has a 9% volume share of its market, and is Britains number one cereal brand. Inevitably, Weetabix is subject to sustained, high profile promotional activity linked with advertising. The company points to its Weetabix Week initiative as an example of this, where elements such as suggestions for toppings for the cereal were promoted. Expanding the brands reach has been another factor, with launches of new variants playing a part in this. One of the most recent is Weetabix Gold, described as a premium product, and made with white wheat. Its arrival can be seen as part of a broader move towards upmarket foodstuffs, and manufacturers responding to this trend. The 22% demand rise for Weetabix Organic claimed to be the markets top selling organic cereal provides active proof of the importance of health giving foods in the breakfast products sector. The 2006 arrival of Oatibix, a cold oat cereal similar in shape to its established wheat-based range mates, also shows the strength of this market, with the product taking a combined 2% market value share just six months after launch, and bringing new consumers to the brand. Other developments include redesigning the packs for Weetabix Minis, and increasing pack sizes from 450g to 550g. In marketing terms, the brand has already been subject to another Weetabix Week campaign for 2007. This included television advertising, and its makers are promising further heavyweight marketing initiatives as the year progresses. Unsurprisingly, he flags up three market levers for driving brand development. These are health and wellness (people will pay a premium for healthy food, and that extends beyond organics), snacking and convenience products come second (more than just ready meals you bung in the microwave), and most importantly, premium and indulgence items. A mix of rising living standards and increasingly sophisticated customer tastes have helped here. Theres a slight contradiction in that people who want the best also want the cheapest. Its like going away for a long weekend and flying easyJet and staying in a five star hotel. You can see it in shops, with value and premium products in the same baskets, he says. For well established brands, adding value is the key to generating interest and sales. He singles out wet shave razor makers Gillette and Wilkinson

50

CATHEDRAL CITY
2006 2005 yoy change 104m 86.2m 20.6%

In a world where consumers are increasingly looking to the exotic, the traditional image of Cathedral City has helped it stand out. I think Cathedral Citys marketing has worked very well, says Richard Tolley, foods division marketing director of Dairy Crest. Tolley reckons this mature cheddar is bought by 36% of the population, and enjoys sales equal to its two nearest rivals combined. He credits consistency of flavour and the carefully considered introduction of Mild and Lighter variants for the brands gains. In the mild market, there hadnt been much activity before, he says. This year the company is rolling out lower fat Cathedral City Light cheese, which Tolley believes will sell into a potentially huge, untapped market. In the dairy market, 71% of milk sales are for skimmed or semi skimmed. Over half the butter or spread market is held by lower fat products, 68% of soft cheeses are low fat.

TREND OVERVIEW
Jonathan Banks, ACNielsens business insight director, thinks all the brands in the Top 100 and those that aspire to join it have a generic challenge have a lot of trouble in the marketplace increasing the value of the profit they can make from their categories, he says. Theres some talk of inflation, but for most fast moving consumer goods its deflation. Whether youre a manufacturer or a retailer, the best way to get value back is through new product development (npd). This is because npd items are launched at a premium. If youre a brand, they help you sell more. If youre a retailer, youd rather have a 20% profit margin on something that sells for 1.50 than 1.40.

People

Sword and the ever-increasing number of blades found in their products, and Finish dishwasher tabs, which developed from single items to five-in-ones. He also namechecks Mars as another generic brand which has moved into new territories. As for a consumer backlash against healthy eating, Banks does not see this as likely, saying the accessibility of ever-cheaper healthy, organic and so-called ethical foods are finding their way into lower income shopping baskets. Five years ago if you asked people what they would do to improve their diet, 50% would say eat more fruit and veg. Its now 75%. Whatever the sector, he thinks new products and fresh branding ideas are essential. Figures are bandied about saying 90% of new products fail, but that isnt necessarily anything to be ashamed of. Some of these things are just ahead of their time.
www.checkoutmagazine.co.uk MARCH 2007

10

TOP 100 GROCERY BRANDS

* Top 100 value figures on this page have been rounded to the nearest tenth of a million.

TOP100 GROCERY BRANDS

51 52 53 54

FAIRY LAUNDRY
2006 2005 yoy change 2006 2005 yoy change 103.9m 80.9m 28.4% 103.1m 103.9m -0.7% 102.1m 100.8m 1.3%

FAIRY HAND DISHWASH

MARS
2006 2005 yoy change

55 56 57

VELVET TOILET TISSUE

2006 2005 yoy change 101.3m 100.9m 0.3% 100.7m 90.4m 11.4% 100.7m 114.1m -11.7%

EVIAN
2006 2005 yoy change 2006 2005 yoy change

BIRDS EYE FROZEN POULTRY

Water brands ride healthy wave of success

THE UK bottled water market remains amazingly buoyant with sales growing at around 10% per year and the big three brands in the sector Volvic (up 13.1%), Evian (up 11.4%) and Highland Spring (up 14.4%) growing ahead of the market. In Volvic and Evian, Danone Waters has two brands now firmly established in the Top 100 at 30th and 56th positions respectively. It is not unrealistic to predict that Volvic could be in the top 20 by this time next year. Highland Spring, the leading UK-sourced bottled water, remains just outside the Top 100, but the brand is poised to make its debut in the elite ranking next year if its current rate of growth is maintained. A 2006 market report by Highland Spring highlighted the stranglehold the three main brands have on the sector, being well represented in all pack formats in the leading supermarkets and the multiple and independent convenience channels. The bottled water market in the impulse channel is concentrated in just a handful of leading brands, compared to the major supermarkets where there are more brands and own-label competing for shelf space. In impulse, the top three brands Volvic, Evian and Highland Spring account for more than six in every 10 bottles sold, compared to a combined 25% share in the major multiples. Single bottle sales, said the Highland Spring report, dominate in the convenience market, while multipacks are the main packaging format in the major supermarkets. The report also says retailers should not ignore new brands coming on to the market. In 2005, Britvic launched Pennine Spring, as well as introducing Drench into the youth market. Currently Coca-Cola and Pepsi-Cola have no representation in the UK bottled water market, but, says the report, it is anticipated in the media that this will change in a matter of months. Coca-Cola could possibly be putting some time between a product launch and the debacle that surrounded the introduction and subsequent withdrawal of the Dasani brand in 2004. The percentage of adults drinking bottled water may have grown from 35% in 2000 to 55% in 2005, but the UK still lags behind many European countries. The UK consumption figure stands at 36 litres per adult per year and that is expected to rise to 47 litres by 2009. By comparison, the consumption rates in Italy (181 litres), France (150 litres), Spain (132 litres) and Germany (123 litres) far outstrip those of the UK. The UK, in fact, only accounts for a 5.7% share of European bottled water consumption. Bottled water has around a 55% household penetration rate across the UK. Highland Spring believes the market can grow further, by both persuading some of the 45% of the population that currently do not drink bottled water into the market as well as encouraging existing consumers to drink more.
www.checkoutmagazine.co.uk MARCH 2007

Kelloggs gets in shape

KELLOGGS SPECIAL K
101.6m 86.7m 17.2% 2006 2005 yoy change does not include cereal bars

KELLOGGS Special K cereal brand has romped eight places up the rankings in the Top 100 Grocery Brands league to 54. With sales growth of more than 17% last year, it is now a 101.6m brand and hot on the heels of Weetabix, the number one cereal in the UK. Kelloggs sales director Kevin Brownsey says Special K, positioned as a shape management brand, has benefited from the trend to healthier eating. Special K is certainly a brand that enjoys growth in periods like this, he says. However, Brownsey claims there are two more important factors driving Special Ks growth. First is brand innovation and extending the Special K brand with new variants such as Special K Bliss Strawberry & Chocolate, launched earlier this year. A further launch is planned for April. Second, says Brownsey, is the brands fit with the dual trend for health and indulgence. Thats what Special K does brilliantly, he says. Its positioned as a healthy food but the position of Bliss responds to the need for indulgence as well. Brownsey says building sustainability is vital to brand success and cites the execution of Special Ks Drop a jean size and Slimmer waist for summer campaigns as key in brand growth. According to Kelloggs research, there was 54% participation in last years Drop a jean size initiative with 2.8m customers taking part, half of which were new to the brand, and half saying they would do it again. Its the execution of it that is extremely strong,

Brownsey: healthy indulgence is possible

says Brownsey, and its good to have it in stores in January. The summer campaign was also incredibly successful last year, he adds, and again works well in stores. It will be repeated this year and promoted alongside a new pack design, which is claimed to be more feminine and will convey the shape message more effectively. Kelloggs Crunchy Nut has also performed well for the cereals company, jumping eight places up the ranking to 76. Sales grew 13% to 78.7m last year. According to Brownsey, Crunchy Nut runs well alongside Special K. As a food, it satisfies the science in Drop a jean size but plays more to the taste motif and is more male oriented, he says. We find the two brands work very well together, particularly as a multi-buy.

TREND: CONVENIENCE
Louise Boitoult, business insight director, ACNielsen, on how convenience is playing out within the Top 100 we look at the main sectors driving growth across all grocers we can see several convenience sectors enjoying good sterling growth fresh pasta sauces and soups, sandwiches, salads dips and dressings and fresh ready meals and pizza. Many of these products are positioned at the premium end, using quality ingredients, like the New Covent Garden Soup Company demonstrating the firm relationship between offering products that are of good quality, healthy and convenient. Goodfellas

If

Frozen Pizza has had a very good year, its premium positioning has attracted consumers while the overall category is in decline. For some categories the importance of healthy eating out-weighs the benefits of convenience, while in others quality is the most important attribute. Lurpak Spreadable continues to do well with the introduction of the Lighter variant. Getting the balance right across these factors is the key to success.

12

TOP 100 GROCERY BRANDS

* Top 100 value figures on this page have been rounded to the nearest tenth of a million.

www.checkoutmagazine.co.uk category insight

BISCUITS
and holds 11.4%. The shift toward premium coffee is also manifested in the growth of ethical coffee, with Percol (organic) and Caf Direct (Fairtrade) growing very strongly. By contrast, granules brands such as Nescaf Original, Maxwell House and Kenco Rappor are declining. The other area of growth within the instant coffee sector are mixes such as Kenco Cappio cappuccino. These products are adding market value through npd.

TOP100 GROCERY BRANDS

METHODOLOGY

DRINKING YOGURTS
Overall, this sector saw growth, up 11.3% to 331.4m, largely down to a stream of probiotic product launches aimed at children. These included the Mller Little Stars range, Rachels Dairy drinking yogurt and Actimel for Kids. The adult sector was actually down overall, but health promoting lines including Flora, Benecol and Danacol, which are marketed as having heart-friendly properties, all enjoyed increases in demand. Biggest player Actimel was in decline due to increased competition, heavy promotion within the sector and a slow down in growth in the adult sub-sector.

The total biscuits market is worth 1.86bn. Year-on-year value growth slowed from 2% to 1% in 2006. This slowdown perhaps reflects the consumer desire for healthier alternatives to traditional snacks, and the healthier biscuits segment has been the biggest contributor to market growth. Indulgent treats and seasonal biscuit assortments have also grown strongly, demonstrating an increasing demand for indulgence products as occasional treats. The largest segment of the biscuit market, chocolate biscuit bars, has suffered the steepest decline year-onyear, down 8.1%. If current trends continue it will not be long before healthier biscuits take a bigger sales share. While crackers and crisp breads posted strong growth in 2005, they have declined in the past year. Healthier biscuit sales grew by 10.1% to reach a value of 331m. This segment has seen the strongest npd activity: while it represents 18% of value sales in the market, it has contributed around 40% of all npd by value over the year. Premium/indulgent lines grew demand by 9.5% to reach 143m. This segment has seen much npd activity, the biggest contributor being McVities Moments, launched in March 2006.

LAUNDRY

BREAD
Bread has seen strong value growth in the last year, with total bread and bakery up 7.6%, and now worth 2.5bn. White bread remains the dominant sector, up 7% in the latest year to 1.3bn, driven by the success of white plus loaves such as Hovis Best of Both, which are able to command a higher price point. Granary bread is now worth 45m, up 40%, helped by products such as Warburtons Seeded Batch and Hovis Sunflower Granary, which are well placed to take advantage of current consumer health trends.

YOUR PULL OUT AND KEEP TOP 100 GROC

Data in the Top 100 Grocery Brands report is taken from Nielsen's Scantrack Service. Scantrack monitors weekly sales from a nationwide network of EPoS checkout scanners. Coverage includes grocery multiples, co-ops, multiple off-licences, independents, symbol groups and multiple forecourts. For a full breakdown of the 74,000 stores included in the Nielsen Universes, see page 4. Nielsen's retail measurement service provides comprehensive information on actual purchases, market shares, distribution, pricing and promotional activities and is the fastest and most accurate monitor of consumer sales. Scantrack picks up 87p in every 1 spent in UK grocery with full scanning inputs. Nielsen's services are always dynamic and are constantly being improved to reflect the grocery marketplace. The Top 100 Grocery Brands survey defines a brand as every product falling under a brand banner within a particular category. No cross category tabulations are included.

CAKES
The overall market is now worth 975m, representing a 2.2% year-on-year increase. Driving this growth is the performance of own label, worth 482m, which is up 3.2%, however branded is also in growth at 1.4%. Own label accounts for 49% of the cake market. Within the branded sector top brand Mr Kipling remains dominant, the lines within the brand showing

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46

Brand MAT 000 to... 30 Dec 2005 COCA-COLA 897,248 WARBURTONS 437,034 WALKERS 407,770 HOVIS 347,363 CADBURY DAIRY MILK 370,803 NESCAF 333,913 ANDREX 310,585 LUCOZADE 254,267 KINGSMILL 296,880 ROBINSONS 265,045 TROPICANA 174,557 PERSIL LAUNDRY 217,968 PEPSI 227,184 WHISKAS 196,763 PEDIGREE 187,263 FLORA SPREADS 179,135 MLLER CORNER 177,855 MCCAIN FROZEN CHIPS 169,894 LURPAK SPREADS 164,607 HEINZ BAKED BEANS 169,671 ARIEL 185,184 BERNARD MATTHEWS COOKED MEAT 185,607 WRIGLEYS EXTRA 166,054 BOLD 151,414 FELIX 170,555 GALAXY 142,496 BIRDS EYE FROZEN FISH 139,098 HEINZ SOUPS 160,403 RIBENA 152,636 VOLVIC 131,078 MR KIPLING CAKES 135,309 YOUNGS FROZEN FISH 146,062 PRINGLES 123,666 KITKAT 141,177 RED BULL 124,901 TETLEY 129,130 PG TIPS 127,924 FANTA 139,820 SILVER SPOON 148,087 MALTESERS 125,289 JOHN WEST CANNED FISH 117,571 WEETABIX 108,466 DAIRLYEA 115,907 DOLMIO SAUCES 110,218 MLLER LIGHT 137,812 FINISH 113,330

30 Dec 2006 942,391 514,341 424,002 403,126 361,503 331,265 326,646 296,216 282,318 277,285 222,471 217,010 216,343 216,126 191,990 185,237 183,161 182,249 175,838 175,222 174,211 173,598 169,397 166,915 161,476 159,157 158,755 156,535 153,046 148,214 147,124 146,355 141,689 140,544 139,120 132,778 128,198 127,591 126,833 120,992 118,937 118,893 117,309 114,612 112,177 111,632

yoy change 5.0% 17.7% 4.0% 16.1% -2.5% -0.8% 5.2% 16.5% -4.9% 4.6% 27.4% -0.4% -4.8% 9.8% 2.5% 3.4% 3.0% 7.3% 6.8% 3.3% -5.9% -6.5% 2.0% 10.2% -5.3% 11.7% 14.1% -2.4% 0.3% 13.1% 8.7% 0.2% 14.6% -0.4% 11.4% 2.8% 0.2% -8.7% -14.4% -3.4% 1.2% 9.6% 1.2% 4.0% -18.6% -1.5%

Laundry products saw little growth (2.7%) in a category where brand development is defined by engaging advertising, innovation and successful consumer promotions. Both Unilever and Procter & Gamble (P&G) remain established players within the category, with P&Gs brands securing it the number one manufacturer share position. The category includes some famous brands, with Unilevers Persil maintaining its top selling position. Convenient laundry product formats such as Liquitabs experienced strong growth as laundry powder products declined. P&G helped support this trend with the introduction of Bold Liquitabs (joining Persil, Ariel and Fairy already in this format). In addition to format developments, new fragrances are becoming increasingly important. Bold has been a big driver of fragrance development with introductions such as Lavender and Camomile and Apple Blossom and Lime Zest lines, which have enjoyed healthy demand. Retailer-branded products continued to grow within laundry sector, a trend seen in the wider homecare

mixed performances. Angel Slices continues to show good growth, however French Fancies has declined.

products market.

CEREALS
Cereals enjoyed steady value growth, up 5.4% to 1.3bn. The growth within the ready-to-eat market, which is up 5.4% and worth 1.16bn, has come from staples such as Weetabix and Kelloggs Crunchy Nut. Npd has also played an important role, with Kelloggs Coco Pops Straws contributing significantly to the childrens market since its launch. Kelloggs Special K also continues to drive category growth through brand extensions. Hot cereals are continuing to grow in popularity, up 5%, and is now worth 102m as a category. Instant products, like Quakers Oatso Simple, have combined the trend for convenience with the growing popularity of oats, successfully driving this sector.

SOFT DRINKS

CHILLED YOGURTS AND DESSERTS

OCERY BRANDS LEAGUE TABLE

NIELSEN

The Top 100 Grocery Brands was compiled by the Nielsen Company exclusively for Nexus Business Media. All data remains the intellectual property of ACNielsen and The Nielsen Company. No reproduction of this list or the data within, full or in part, is permitted without prior consent of the Nielsen Company.

Currently worth 1.6bn, this sector enjoyed 2.9% year-onyear growth, generating an additional 44.5m in 2006. Functional and organic lines have driven increases of both yogurt and fromage frais products, with Mller Vitality, Danone Bio Activia, Yeo Valley Organic, Rachels Organic and Flora products achieving the biggest sales increases. Total demand for organic yogurts was up by 19%. Other successes in this sector also included kids brand Munch Bunch Squashums, launched in a revised format last summer, the variants including fromage frais. Bio yogurts saw a 42% sales rise. Danones Bio Activia line contributed to nearly half of all chilled yogurts and desserts growth, enjoying a 77.2% demand increase. Promotion of Mllers Vitality increased significantly in 2006. Some 37% of chilled non-organic yogurts (and desserts) were sold with promotions such as BOGOFs or with two-for-one offers. Standard diet yogurt sales declined by 11%, a trend reflected in the amount of promotion and distribution given over to the lines by retailers. However, Danone still invested in the subcategory last year with its successful launch of Shape Lasting Satisfaction in April 2006.

Soft drinks have enjoyed strong sales growth up 8% to over 5.9bn partly driven by the continued success of premium products like smoothies. This accounts for the slower, 2% volume growth in soft drinks. Smoothies themselves enjoyed an impressive 102% growth, helped by consumer demand for products offering both health benefits and convenience. It is these buyer trends that are central to the macro movements within the soft drinks category; with health and indulgence being particular drivers. Consumers are increasingly treating themselves to adult drinks (up 6%) and seeking added value from functional products (up 18%), while embracing the health benefits of juice, dairy and water products (all showing healthy growth). The traditional categories of fruit carbonates, non-fruit carbonates and lemonade are suffering in todays health focused market. Coca-Cola remains out in front in terms of size. A changing pack mix and the launch of Zero are among the factors driving brand growth of 5% to 942.4m. Innocent products have rocketed in the smoothie market, with a year-on-year growth of 139.9% to a brand value of 96.3m. Other successes include Britvics J2O, Mller Vitality, Tropicana and Highland Spring, all of which are well positioned to take advantage of developing consumer trends. Of the flavoured carbonates market, both Sprite and Irn-Bru have had a great year. Brands will succeed if they are able to either take advantage of consumer trends (e.g. Tropicana) or maintain a loyal consumer base despite wider sales trends (e.g. Irn-Bru). The techniques employed to do this remain challenging for retailers and manufacturers alike.

COFFEE
The instant coffee category is a mature market currently worth 565.7m showing a slight decline of 0.8%. The major trend of recent years has been a move away from granules like Nescaf Original and Maxwell House, towards premium and higher quality freeze dried (Nescaf Gold Blend, Kenco Really Rich, Carte Noire). In the last year, freeze dried has overtaken granules in volume terms. The Nescaf range dominates the UK market, with 58% share in total. Kenco holds 15.7% while own label is growing quickly

47 ACTIMEL 48 PRINCES CANNED FISH 49 GOODFELLAS FROZEN PIZZA 50 CATHEDRAL CITY 51 FAIRY LAUNDRY 52 FAIRY HAND DISHWASH 53 MARS 54 KELLOGGS SPECIAL K 55 VELVET TOILET TISSUE 56 EVIAN 57 BIRDS EYE FROZEN POULTRY 58 SCHWEPPES 59 GINSTERS SAVOURY PASTRIES 60 DANONE BIO ACTIVIA 61 COMFORT 62 HEINZ KETCHUP 63 INNOCENT 64 PORK FARMS SAVOURY PASTRIES 65 AIRWICK 66 UNCLE BENS RICE 67 KENCO INSTANT COFFEE 68 LENOR 69 IRN-BRU 70 BIRDS EYE FROZEN READY MEALS 71 MCCOYS 72 DAZ 73 BIRDS EYE FROZEN VEG 74 KLEENEX 75 RICHMOND SAUSAGES 76 KELLOGGS CRUNCHY NUT 77 WALKERS SENSATIONS 78 BAKERS PETFOOD 79 CRAVENDALE MILK 80 DORITOS 81 HELLMANNS MAYONNAISE 82 ANCHOR SPREADS 83 PETIT FILOUS 84 QUALITY STREET 85 BASSETTS CONFECTIONERY 86 GLADE 87 CADBURY CAKES 88 YEO VALLEY ORGANIC 89 MAGNUM 90 HARIBO GUMS AND JELLIES 91 TWIX 92 BISTO 93 HEINZ CANNED PASTA 94 AERO 95 HULA HOOPS 96 CADBURY ROSES 97 CLOVER SPREADS 98 FLASH 99 CHICAGO TOWN FROZEN PIZZA 100 TWININGS

116,406 101,880 82,887 86,228 80,933 103,883 100,807 86,694 100,918 90,415 114,069 96,150 87,051 55,303 98,728 92,993 40,135 102,306 90,163 68,551 88,917 91,874 80,997 108,234 79,105 85,210 81,348 79,727 75,779 69,639 83,548 64,656 64,159 71,318 71,821 74,574 76,746 74,039 76,784 72,166 64,512 57,549 63,498 71,817 74,969 69,278 70,291 66,547 58,052 67,026 65,921 67,676 80,207 58,424

106,835 104,863 104,177 103,954 103,921 103,116 102,125 101,593 101,261 100,714 100,678 99,041 98,875 97,987 97,018 96,569 96,273 95,001 92,946 90,158 88,781 85,722 85,574 85,519 85,358 85,083 82,229 79,856 78,808 78,677 77,995 77,229 77,014 75,831 75,494 75,349 75,011 73,111 72,692 72,593 72,476 71,914 71,821 71,667 71,243 70,763 69,408 69,345 68,930 67,991 67,945 66,968 65,876 64,809

-8.2% 2.9% 25.7% 20.6% 28.4% -0.7% 1.3% 17.2% 0.3% 11.4% -11.7% 3.0% 13.6% 77.2% -1.7% 3.8% 139.9% -7.1% 3.1% 31.5% -0.2% -6.7% 5.7% -21.0% 7.9% -0.1% 1.1% 0.2% 4.0% 13.0% -6.6% 19.4% 20.0% 6.3% 5.1% 1.0% -2.3% -1.3% -5.3% 0.6% 12.3% 25.0% 13.1% -0.2% -5.0% 2.1% -1.3% 4.2% 18.7% 1.4% 3.1% -1.0% -17.9% 10.9%

TOP 100 GROCERY BRANDS

58 59 60

SCHWEPPES BEVERAGES
2006 2005 yoy change 99.0m 96.1m 3.0%

Innocent joins the club

INNOCENT is arguably the biggest success story in the Top 100 this year. Entering the Top 100 from out of nowhere, the tasty little drinks company has enjoyed sales of over 96m in 2006. The brand has grown by a massive 139.9% to enter the ranking at position 63, above the likes of Irn-Bru, Oasis, Sprite and Dr Pepper. Its fair to say our plan wasnt as aggressive as it turned out, says managing director Jamie Mitchell of Innocents bold entrance to the Top 100. It is amazing, you have to sort of pinch yourself when you wake up and say we are one of the 63 biggest brands in the UK when we still have grass on the floor of our office and drive around in grass-covered vans. Innovation is at the heart of our business, says Mitchell. Two and half years ago it was just the onthe-go range. Since then we introduced the take-home one-litre cartons and the kids range. He cites these products as being behind the amazing growth Innocent has experienced. The future will continue to see us innovate, continues Mitchell. But, we are not looking to move outside the juice category. Weve just launched two breakfast-occasion products. We are also very proud of our Superfoods range. They have just gone flying. Mitchell also links distribution and rate of sale to Innocents growth. But, he reveals smoothies still only have 15% household penetration in the UK. We believe there are no real limits in terms of where you can sell smoothies, says Mitchell. So, it will be about driving penetration for Innocent in 2007 and a push to do this through education. Our ad campaign, launched in January, focuses on educating consumers. In smoothies you get the whole crushed fruit, which delivers more rounded health benefits, says Mitchell. The company hopes communicating this message to more people will build growth for the brand in a market that is certain to see increased competition from new entrants,

GINSTERS SAVOURY PASTRIES

2006 2005 yoy change 98.9m 87.1m 13.6%

63

INNOCENT
2006 2005 yoy change 96.3m 40.1m 139.9%

Danone on message
DANONE BIO ACTIVIA
2006 2005 yoy change 98.0m 55.3m 77.2%

DANONES Bio Activia yogurt is a prime example of an established brand that has found its market, and enjoyed a huge sales boost as a result. Its been the big story for us, says Danones category strategy manager James King. Activia has grown 77.2% in the past year, making it Britains fastest growing yogurt brand. Weve always known there was a big market, but up until a couple of years ago we hadnt found the right message for the consumer. Although there are new variants and flavours, the product hasnt changed. Weve just found the right way to promote it. The broader trend towards healthy eating has certainly helped Activia, which has a particular following amongst women shoppers. King says its stomach-settling properties have been a particularly useful sales lever, as research shows 56% of women suffer digestive discomfort from time to time. Activia has also been the subject of a successful, 10m advertising campaign, with television slots at the fore. Its one thing to have a product with a clear consumer benefit, but another to get that message across, says King, adding that the third factor in the brands rise has been that it tastes nice. This is a food product, not a medicine. The brands profile has been particularly helped by fat free variants, which have been around for a while, but are gaining in popularity, and the 2005launched high fibre version. Once fat free items were almost commodity products, but now people wont compromise on taste, says King. For this year, he suggests retailers can expect a further broadening of the Activia range, and unsurprisingly, Danone plans to dig into its pockets for a further, major promotional push.

own label development, and innovation from established brands. Asked of Innocents strategy for dealing with this, Mitchell says: We welcome it. Were in a strong position in terms of the value we deliver. We put a huge emphasis on our partnerships with the trade. Last year we contributed significant front-of-store sales for the supermarkets. We also recognise chilled space is at a premium. Innocent is planning to solve some of that problem by putting its own chillers into stores. You may have seen them, says Mitchell, theyre grass-covered. Space in the fridge is not the only challenge Innocent is likely to face in the coming year. Growth at this level will put growing pains on any business, concedes Mitchell. We aspire to growth, but also to stay small. That doesnt mean we want to be a small player. We say we want to be Europes favourite little juice company and the little means how we behave. Maintaining our values is part of that. We run our business responsibly and genuinely care about our customers. As an example of this, Mitchell mentions Innocents use of bottles made of 50% recycled plastic and its cornstarch, commercially compostable eco bottle launched in January. Consumers like it, plus it tallies with retailers CSR strategies, he says. To cope with its UK-wide distribution and European vision, Innocent now employs over 160 people across Europe. This coming year the company expects turnover to top the 100m mark. Mitchell reveals Innocents European plan could propel the companys growth even further: By 2010 we would expect Europe to account for 30% of revenues. Right now it is still under 10%. We put most of Europe about three to four years behind the UK in terms of the smoothie market. We hope to do there what we did in the UK: create an army of passionate smoothie drinkers.

CONFECTIONERY IN STORE
Christian Whitfield, Premier independent retailer Christian Whitfield operates two Premier stores in the Bristol area and views confectionery as a very important sector of his business. We all have to be mindful of whats going on out there. Theres pressure from the schools, government and health bodies about food colours, calories and obesity. But we are always looking for a more health conscious brand stretch or new product range, he adds, products which are going to generate volume for the manufacturer and us not lines which are going to sit on the shelf gathering dust. Having said all that, he commends Nestls Chunky Peanut Butter for revitalising a brand that was in freefall decline and Kitkat Dark as a good brand extension. Aero Mint Balls is another Nestl success. He says Cadbury Trebor Bassett has had a year of consolidation in that there was less residual stock left in the trade in the New Year while Masterfoods created good brand stretch with king size variants. And that leads us nicely into category management. Category management is becoming increasingly important and we need to redevelop the confectionery fixture to meet need states, adds Whitfield. What we are increasingly about is the need states of customers and that can change three times during the course of a day. A lot of retailers are beginning to recognise this even though it may not suit the corporate/symbol group position. A store near a school might well have preschool customers, then someone who wants something for elevenses and, later in the day, someone wanting confectionery for the evening, while they sit and watch TV, he adds. As the confectionery market develops so will the need for new products and packs to suit everchanging consumer needs.
TOP100 GROCERY BRANDS 17

61 62

COMFORT
2006 2005 yoy change 97.0m 98.7m -1.7%

HEINZ TOMATO KETCHUP

2006 96.6m 2005 93.0m yoy change 3.8% includes Hot, Organic and original Heinz Tomato Ketchup

MARCH 2007 www.checkoutmagazine.co.uk

* Top 100 value figures on this page have been rounded to the nearest tenth of a million.

TOP100 GROCERY BRANDS

64 65 66 67 68 69 70

PORK FARMS SAVOURY PASTRIES

2006 2005 yoy change 95.0m 102.3m -7.1% 92.9m 90.2m 3.1%

AIRWICK
2006 2005 yoy change

UNCLE BENS RICE

2006 90.2m 2005 68.6m yoy change 31.5% includes microwave and ambient varieties

KENCO INSTANT COFFEE

2006 88.8m 2005 88.9m yoy change -0.2% includes Kenco Really range, Decaffeinated, Purely, Rappor, Cappio and Sustainable Development

71 72 73 74

MCCOYS

2006 85.4m 2005 79.1m yoy change 7.9% includes McCoys Crisps, McCoys Spice, McCoys Specials, McCoys & Dip

DAZ
2006 2005 yoy change 2006 2005 yoy change 2006 2005 yoy change 85.1m 85.2m -0.1% 82.2m 81.3m 1.1% 79.9m 79.7m 0.2%

75 76 77 78

RICHMOND SAUSAGES
2006 2005 yoy change 78.8m 75.8m 4%

KELLOGGS CRUNCHY NUT

BIRDS EYE FROZEN VEG

2006 78.7m 2005 69.6m yoy change 13% includes Crunchy Nut Original, Crunchy Nut Red, Crunchy Nut Nutty and Crunchy Nut Clusters

WALKERS SENSATIONS

KLEENEX FACIAL TISSUES

2006 78.0m 2005 83.5m yoy change -6.6% includes Sensations Crisps, Sensations Crackers, Sensations Poppadom Bites and Sensations Nut Clusters

Bakers performs in pet food

UK PET OWNERS are showing their affection for their pets with their wallets and purses. Three of the four pet food brands in the Top 100 showed strong growth in 2006. Whiskas (no. 14) is up 9.8%, Pedigree (no. 15) up 2.5% and Bakers (no. 78) is gaining rapidly on the top three with 19.4% growth, which has catapulted the brand 19 places up the table. Together with Felix (no. 25) they account for over 646.7m sales of the 14.3bn total value of the Top 100. The category is going from strength to strength due to the same factors affecting those categories fit for human consumption, namely convenience, premiumisation and health. Health concerns are influencing the dog food subsector more so than cat, while the trend toward premium products is driving sales of cat pouches and new premium-plus variants like Felixs Supermeat and Roasted ranges, according to Nestl Purina customer development director Andrew Harding. Harding identifies a definite alignment with Masterfoods is looking to grow its lead in pet food in 2007 with plans to respond to the health, premium and life stage trends shaping the market. Susie Kedwards, trade relations manager for Masterfoods, comments: Pet owners want to give their pets modern, fresh food that is less processed, uses fresh and natural ingredients and delivers nutritional benefits to their pets. Pedigree has responded to this emerging consumer trend, she says, by introducing a brand new premium range of dog food. Pedigree Better by Nature is a new range available in cans and pouches containing the same level of nutrition as traditional dog food, but with ingredients close to a dogs natural diet. Masterfoods is also launching a new range of treats under the Pedigree brand called JointCare, developed to help ease joint discomfort in dogs. For cats, Masterfoods is planning on expanding its premium Whiskas Oh So... range and is also launching Whiskas Kitten, a life stage product.

LENOR
2006 2005 yoy change 85.7m 91.9m -6.7% 85.6m 81.0m 5.7%

BAKERS PETFOOD
2006 2005 yoy change 77.2m 64.7m 19.4%

IRN-BRU
2006 2005 yoy change

BIRDS EYE FROZEN READY MEALS

2006 2005 yoy change 85.5m 108.2m -21%

FROZEN IN STORE
David Stokes, senior buying controller at NisaTodays frozen distribution arm, Nisafreeze the past year, Nisa-Todays, on a like-for-like basis, has traded with small increases in both value and volume on frozen food. This small value growth has come from excellent sales performances in ice cream, frozen fish and pizzas, with vegetables and potato chips showing above inflation value growth in the past quarter due to market conditions pushing prices upwards, while demand remained constant. Frozen pizzas continued to be a great convenient product for us during 2006, easily outperforming chilled. And with ranges such as Goodfellas Solos not being given away with relentless BOGOF deals, sales were at a great value for all concerned. Another area of growth, which we at Nisa must get behind, is the explosion of frozen party snacks. Driven by the major multiples, this is a sector that will become an all year-round purchase due to seasonal themes available. This is in contrast to declines in frozen ready-meals and red meat products which have both performed below par.

Over

trends in consumers food in the pet food market and goes on to say: Trends creating growth in the category cover a number of dynamics, the main ones being convenience and product quality. While cat owners find pouches a convenient option, Nestl Purina has found dog owners are increasingly buying into dry food due to its health and oral hygiene benefits and convenient, mess-free format. And Bakers is at the forefront of driving the dry dog food category, according to the manufacturer. The combination of a strong marketing campaign, fantastic product and new pack design to command more shelf-standout has helped the brand capitalise on the current consumer interest in dry dog food, says Harding. We have seen consistent growth with Bakers as we have continued to invest in the brand. When asked about the future of further line extensions for Bakers, in addition to the new Meaty Treats range launched under the brand, Harding is coy. The future is always under review, he says, suggesting wet variants arent off the menu. The final key development generating sales in the pet food market is the emergence and improved merchandising of life stage products, according to Harding. These products, Bakers being one of them, are formulated and marketed for pets at specific stages in their lives in Bakers case it includes Puppy/Junior, Small Dog, Sensitive, Adult, Weight Control, and the list goes on. This approach has been around for a while, but the products were difficult (for consumers) to find, explains Harding. We have been working very hard with retailers to improve the fixture so people can find these products, and Bakers growth is testament to the success of this strategy. Nestl Purina will continue to work closely with retailers in particular on store layout and look across the total category with retailers to offer advice on best practice in store merchandising, says Harding.
www.checkoutmagazine.co.uk MARCH 2007

18

TOP 100 GROCERY BRANDS

* Top 100 value figures on this page have been rounded to the nearest tenth of a million.

TOP100 GROCERY BRANDS

TREND: HEALTHY EATING

Louise Boitoult, business insight director, ACNielsen

79 80 81 82

CRAVENDALE MILK
2006 2005 yoy change 77.0m 64.2m 20%

DORITOS

2006 75.8m 2005 71.3m yoy change 6.3% includes Doritos, Doritos Dippas, Doritos Latinos

HELLMANNS MAYONNAISE

2006 75.5m 2005 71.8m yoy change 5.1% includes Original, Light, Extra Light, Dijonnaise, and Mayonnaise with olive oil

ANCHOR SPREADS
2006 2005 yoy change 75.3m 74.6m 1.0%

83 84 85 86 87

PETIT FILOUS
2006 2005 yoy change 75.0m 76.7m -2.3% 73.1m 74.0m -1.3%

Media

QUALITY STREET
2006 2005 yoy change

BASSETTS CONFECTIONERY

2006 72.7m 2005 76.8m yoy change -5.3% including Jelly Babies and Allsorts

GLADE
2006 2005 yoy change 72.6m 72.2m 0.6% 72.5m 64.5m 12.3%

CADBURY CAKES
2006 2005 yoy change

Yeo Valley is first organic brand in Top 100 table

Yeo Valley Organic, a brand tipped as One to watch in last years report, has entered the Top 100 Grocery Brands league and become the first entirely organic brand to do so. Yeo Valley Organics sales rose by 25% in 2006 to 71.9m, catapulting the brand into the Top 100 at 88. We are delighted, says marketing director Ben Cull. It was one of my personal goals when I came for an interview here I said Id like to take Yeo Valley into the Top 100, so weve ticked a milestone. Cull credits energy, consistency of approach and being in the right place at the right time for the brands growth as well retail support and for making a damn fine product. Brand stretch has played a key role too, taking Yeo Valley Organic outside its yogurt heartland to encompass spreadable butter, butter, compotes and childrens yogurts. In the latter category, Cull reports, Yeo Valley has exceeded its target to take a 10% market share. Organic has also become relevant to todays consumers, spurring Yeo Valleys growth even further. Cull again: Organic has graduated from the corner of the whole food store to an organic ghetto in retail to being adopted by the mainstream. Cull claims Yeo Valley has helped to drive organic for the masses via keen pricing and generating excitement in the category. Theres something authentic, credible and real about what we do. People think our image is very much of the countryside, and we are making product in the country, says Cull. That wholesomeness is benefiting Yeo Valley too. Theres a fantastic trend towards health, naturalness and purity and a move away from quick fixes as people are getting back to cooking from
20 TOP 100 GROCERY BRANDS

Cull: Top 100 aspirations realised

88

YEO VALLEY ORGANIC

71.9m 57.5m 25%

2006 2005 yoy change including all yogurt variants

scratch. After years of voyeurism and watching the chefs cooking on TV, people are actually cooking again themselves. The trend to organic food ticks even more boxes for consumers, says Cull. Organic is a form of agriculture that people buy into. Its about the ethics of farming sustainability. There are also the environmental benefits and the food itself. It has a broad appeal. As Yeo Valley continues to develop its range and become a wider dairy provider, Cull says the brand will be looking to further consolidate its position with the promise of more specific support for its brand and products in 2007.

attention to healthy eating has been so intense of late, it has been difficult to avoid the topic. The fact health has been a key driver for products during 2006 is due to manufacturer initiatives, retailer responses and also consumers changing preferences. However, peoples motivations towards healthy eating do vary. For many healthy eating is associated with how they look and feel. People want to look good and will be attracted to products that enhance their appearance. For others there is the realisation that they need to change their diet for health reasons, they have had a wake-up call regarding their heart, cholesterol, weight or general well-being. We often describe this as Life versus Death marketing for some it is about living to the full, but for others it is about avoiding disease, and, not dying. Age will have a big influence on where people fall on the spectrum. But you can see how products play to these different attitudes. Products like Actimel promote vitality; while Benecol helps you reduce your cholesterol. When faced with the need to change their diet, some will quickly embrace a new way of eating including plenty of fresh fruit and vegetables, avoiding saturated fat and sugar; while others will look for products to help them make changes in the least painful way. Here the better for you products are popular, so are traditional less bad items, or products that help buyers achieve their 5-a-day in a convenient and tasty format like Innocent smoothies. People view products as healthy not just for their nutritional content, however, but also in terms of how natural they are. Compared to just 50% of people in 2000, our latest research shows that almost 70% of people prefer products that are natural, and many actively try to avoid artificial ingredients including pesticides, additives and colourings. We are seeing these trends impact sales of frozen ready meals, pizzas, and fizzy sugary drinks. Although these products are convenient, the negative associations relating to fat and additives are putting consumers off. For this same reason many retailers are actively removing hydrogenated fat and additives from their own label ready meals and enhancing the quality of the ingredients, especially in premium ranges. Good for you foods that are child-friendly are finding their way into many shopping baskets. So are added value, home cook meals. Much of the attention has been on childrens diets, school meals, obesity and advertising restrictions. Many manufactures have actively changed products in response to health concerns and are enjoying success accordingly. These include Walkers Crisps and Pringles. McCain Frozen Chips has had a good year with a high profile advertising campaign promoting the fact its chips are only 5% fat. Products with natural health associations have done well, including new entries Danone Bio Activia, Innocent smoothies and old favourite Weetabix. While people like the idea of cooking at home, and the positive wholesome associations, many lack the skills or time to produce meals from scratch. For this reason products that are healthy and easy to prepare are proving popular, for example easy to cook brown basmati rice from Tilda. Uncle Bens rice has grown hugely and shot up the rankings due to its microwaveable rice.
www.checkoutmagazine.co.uk MARCH 2007

* Top 100 value figures on this page have been rounded to the nearest tenth of a million.

SOFT DRINKS IN STORE

TOP100 GROCERY BRANDS

Lyana Doyle, trading manager for ambient soft drinks, Musgrave Budgens Londis convenience sector finished 2006 with a 7% rise in soft drinks, including water (Nielsen w/ending 2 Dec 2006). Water is still a key growth area, along with sport and energy drinks such as Lucozade and Red Bull. GlaxoSmithKline is definitely trying to give Lucozade a harder edge and it has the brand strength and marketing support to take on the younger brand on its own territory. While Lucozade wont want to alienate its more traditional consumers, it can target the Red Bull consumer through male-oriented niche marketing activity. The carbonates market is interesting in that although the perception is the sector is in decline, there is some growth from products with no added sugar and those which have a high juice content. Consumers are definitely being more selective. Where some brands in the UK have been cutting juice content to lower costs, strong European brands, such as Orangina, have maintained their juice content and are still performing well. Consumer trends are all about functionality, health and innovation, with all the innovation in juice, water and health/dietary areas. Danone, for example, has a new gentle energy water targeting women. Vitamin water is another interesting area, athough its certainly not yet mainstream and nowhere near as developed here as it in the US. New products come through every week but consumers dont understand the concept yet and dont have confidence in the claims on the bottle. However, you cant afford to dismiss a trend and were currently trialing V Water in one of our stores to test the water. Drinks with plant extracts sit in the same category and were listing Carpe Diems botanical waters in our Budgens stores, though not in Londis, where the customer profile is very different. Of our two store brands, you can clearly see the difference in demographics, with the emphasis on impulse and a strong male bias in Londis, where we have strong sales in carbonates and energy drinks. Budgens has a more premium slant with products like J2O, Duchy and Bottlegreen performing well. In line with current health trends, many manufacturers are coming out of full sugar variants. In kids products I wouldnt think of putting in anything with added sugar, and thats the way the markets going. In the adult market, were seeing growth from anything with berries among the ingredients, particularly the super fruits. Brazilian acai is looking like the next big thing and Bottlegreen is bringing out a cranberry and acai drink. Its a lovely product and consumers get the benefits of the acai while cranberry compensates for the bitter taste. Pomegranate is still popular PomWonderful still sells well as are green tea drinks. At Budgens we stock the MangaJo green tea range. It has great packaging, the product speaks for itself and we get repeat purchase. Its not a straightforward market and its fast moving and, while the big brands are very good with their marketing strategies and invest heavily in driving consumer demand, they need to be supporting the retailers through education and market information.
www.checkoutmagazine.co.uk MARCH 2007

Origin-ality from Magnum The

89

MAGNUM
2006 2005 yoy change 71.8m 63.5m 13.1%

MAGNUM is the star performer from the Unilever stable of ice cream brands, and the only ice cream brand in the Top 100. With a sales value of 71.8m, and growth of 13.1% year-on-year, Magnum has jumped up the table 10 places to secure position 89. Brand managers at Magnum learned an important lesson in 2006: it is possible to grow sales by focusing primarily on your core products. As opposed to the 5 Senses campaign of the previous year, which focused on limited edition flavours, Magnums 2006 advertising made Classic the hero of the campaign. Anna Ford, brand manager of Magnum, says one of the key metrics of the campaign was to drive distribution on Classic and White, which it succeeded in doing. Magnum achieved operational excellence on its core range over the year, claims Ford, which accounts for much of the growth in the brand. If you just do the basics better, youll get sales gains, she states. However, the value of npd to Magnum cannot be discounted, as the range also included three new flavours in 2006, Mint, Almond and Double Caramel, which had a combined sales value of more

than the 5 Senses range, according to Ford. Taking those lessons forward, Ford reveals Magnum will be marketing both the core and npd in 2007. On the back of the premium and super foods trends in grocery, and the increasing importance of provenance of ingredients, Magnum is launching two new products, Magnum Equador Dark and Magnum Colombia Aroma, with a premium origins theme. The new products make a 62% cocoa claim on front of pack, are being sold as premium products and place a huge emphasis on the origin of the ingredients used. There is a real halo effect around cocoa content, says Ford. People see it as more permissible. With a 6.5m marketing campaign behind the brand, Ford reveals Equador Dark will be the number three priority in the range of singles for the brand, behind Classic and White. Another year of double-digit growth is what we are after. Its a tough goal, but we want the category to continue to grow and Magnum has a responsibility to be part of that engine room of growth.

TREND: THE CONSCIOUS CONSUMER

Louise Boitoult, business insight director, ACNielsen warming and the environment have had a huge amount of air time recently. Consumers pick up on these media messages and play back their concerns. We recently asked our Homescan panelists about products that are ethically produced or kinder to the environment, and about the purchasing of products that are produced or grown locally, and found the following: 44% of people said they try to buy products that are ethically produced or kinder to the environment 35% believe it is worth paying extra for products that are ethically produced or kinder to the environment 74% preferred to buy products that are produced or grown locally Manufacturers with household products who manage to offer environmentally friendly products which deliver all the benefits will be well placed to make the most of this trend. Yeo Valley Organic has achieved good growth this year and with a strong organic proposition and portfolio I would expect the brand to achieve a higher ranking next year.

90 91 92 93 94 95 96 97
22

HARIBO GUMS & JELLIES

2006 2005 yoy change 71.7m 71.8m -0.2% 71.2m 75.0m -5% 70.8m 69.3m 2.1%

Global

TWIX
2006 2005 yoy change

BISTO
2006 2005 yoy change

HEINZ CANNED PASTA

2006 2005 yoy change 69.4m 70.3m -1.3% 69.3m 66.5m 4.2% 68.9m 58.1m 18.7% 68.0m 67.0m 1.4% 67.9m 65.9m 3.1%

AERO
2006 2005 yoy change

HULA HOOPS
2006 2005 yoy change

CADBURY ROSES
2006 2005 yoy change

CLOVER SPREADS
2006 2005 yoy change

98 99 100

FLASH
2006 2005 yoy change 67.0m 67.7m -1%

CHICAGO TOWN FROZEN PIZZA

65.9m 80.2m -17.9% 64.8m 58.4m 10.9%

2006 2005 yoy change

TWININGS
2006 2005 yoy change

TOP 100 GROCERY BRANDS

* Top 100 value figures on this page have been rounded to the nearest tenth of a million.

TOP100 GROCERY BRANDS

Ones to watch
OASIS
2006 2005 yoy change 64.7m 54.6m 18.4% 58.2m 50.9m 14.4% 56.2m 52.7m 6.6%

Not yet in the Top 100, the following brands are achieving good growth and may break into the rankings in the next 12 months

Just outside

LOYD GROSSMAN
2006 2005 yoy change 48.0m 41.0m 17.2%
TV presenter Loyd Grossman could soon be more famous for his cooking sauces than his rolling vowels and television career. Canadian-born Grossmans name has certainly become an important brand for Premier Foods, which makes his sauces, and has seen a 17.2% rise in demand for them between 2005 and 2006. This is worth 48m last year, up form 40.9m 12 months earlier. This incremental rise represented the highest growth of any brand in the sauce sector, helped by an 8m advertising budget last year. Premier identifies the breadth of products which carry the Loyd Grossman name, as these range from pour on sauces, Italian, Indian and Oriental lines. With a 25% growth, its Thai sauces are now the biggest sellers in their market sector, Italian branded products, which increased sales by 17% are the second best sellers, and Indian products are in third place.

HIGHLAND SPRING
2006 2005 yoy change

101

MLLER VITALITY
64.8m 54.0m 19.9%

2006 2005 yoy change

CAPRI SUN
2006 2005 yoy change
We tipped Oasis, Highland Spring and Capri Sun as Ones to watch last year and are tipping this trio of drinks brands again as all three have continued to show strong sales growth. We are forecasting that at least one of these brands will enter the Top 100 Grocery Brands league next year. Coca-Cola Enterprises brand Oasis recorded an impressive 18.4% leap in sales last year to 64.7m, putting it just outside the Top 100. Highland Spring was the fastest growing water brand in 2006 with sales ahead by 14.4% to 58.2m. Like rivals Volvic and Evian, Highland Spring is benefiting from a buoyant bottled water market in the UK and it claims theres plenty of potential to grow sales further. According to the brand, bottled water has 55% penetration in the UK, leaving 45% of the market metaphorically untapped. Highland

Its better luck next time for Mller Vitality even though the brand grew a staggering 19.9% year-on-year to hit 64.8m worth of sales, just behind Twinings. Last year the brand would have been well within the Top 100 with this sales value. Spring also points out that UK consumption of bottled water lags way behind other European countries. The brand remains well positioned to take advantage of developing consumer trends. Capri Sun, also in the CocaCola Enterprises stable, enjoyed 6.6% sales growth last year and now has a sales value of 56.2m. The brand has benefited from the trend towards healthier childrens drinks and the move away from carbonates.

Didnt they do well

2006s Ones to watch certainly were. Heres where last years tips ended up Tipped last year as the top of our Ones to watch, TWININGS has capped the list this year at position 100 with another year of impressive growth of 10.9% DANONE BIO ACTIVIA is by far the biggest story from last years panel. This functional brand has enjoyed an enormous 77% growth in sales value, landing it at position 59 in the ranking with 97.9m sales in 2006. OASIS, HIGHLAND SPRING, CAPRI SUN and MAYNARDS were all tipped as movers and shakers last year, and have done well again in 2006, missing out on the Top 100 by small margins. Oasis grew by 18.4%, putting it just 150,000 shy of position 100. On the back of the hot summer, Highland Spring did fantastically well, out growing all the other water brands with 14.4% growth and sales of 58.2m. Capri Sun grew another 6.6% last year with 56.2m in sales while Maynards shot up 8.2% with 53.7m in sales. NEW COVENT GARDEN is still showing fantastic growth at over 10% with its fresh soup offering.

HULA HOOPS has leapfrogged Twinings with 18.7% growth to enter the chart at position 95 with 68.9m sales.

YEO VALLEY ORGANIC is the second biggest winner in last years Ones to watch. The organic brand has been a favourite with consumers in 2006, entering the Top 100 at position 88 with sales of 71.9m, up 25% on last years 56.3m.

24

TOP 100 GROCERY BRANDS

www.checkoutmagazine.co.uk MARCH 2007

* Top 100 value figures on this page have been rounded to the nearest tenth of a million.

TOP100 GROCERY BRANDS

Ones to watch
Loyd Grossmans growth has come from a detailed segmentation study which highlighted consumers whose attitudes fitted those of existing buyers, said Premier Foods pickles and sauces general manager Sue Knight. She suggests premium sauces are currently enjoying the strongest growth, and that this had helped the Loyd Grossman-branded products. Convenience is also a driving force. Research shows consumers who are buying into this sector are increasingly time poor but cash rich, she says, adding that her products gave convenience stores a useful entre into big selling, premium market. Bigger jar sizes have also helped demand. 660g Italian jars now take a fifth of sales and are growing in demand at 28% annually. Premier is considering offering these for other sauces.

How to get spotted

SERIOUSLY STRONG
2006 2005 yoy change 44.1m 33.4m 32.0%
Cheddar cheese might be perceived as a generic product, but Lactalis McLellands Seriously Strong continues to stand out in a crowded market. Last years mix of sales expanding, Seriouslybranded sister product launches, and the high profile performance of Seriously Strong itself makes it a hot tip for future inclusion in our Top 100 list. Weve had sales of just under 780,000 at retail, says Lactalis McLelland marketing manager Renee Milkop-Kerr. 2006 saw the launch of Seriously Spreadable, Seriously Smooth, Seriously Farmy and Seriously Vintage, which now account for just under 25% of range sales. 2007 will be spent consolidating these brands. Milkop-Kerr reckons a wider British consumer trend to buy foods with more flavour has helped Seriously Strong carve out a distinct market niche since 1996. Products like Seriously Smooth and Spreadable allow children and cooks to try it for the first time. Milkop-Kerr says Seriously Farmy is now the best selling brand in the farmhouse arena (it replaced Seriously Strong Farmhouse), and more accessible to people. Seriously Vintage is more of an indulgence buy. In 2005 McLelland, with its cheese making heritage dating back to the 1800s, became part of the giant French cheese making group Lactalis, which brought an internationalist eye to marketing and product development, but wisely gave its Scottish partner plenty of space to develop new cheddar products. We spent 2005 talking to consumers. We wanted to really understand the market, find gaps and follow through on those, says Milkop-Kerr, who adds that public tastings have become an important part of the Seriously brands development. People are much more interested in what their food tastes like. Our emphasis has to be on quality and taste, she says.

KETTLE CHIPS
2006 2005 yoy change 47.4m 37.0m 28.2%
Jeremy Bradley, managing director at Kettle Chips, says the brands success in 2006 has been driven in part by the trend towards premium products, but the importance of convenience formats and shift towards more natural products have also played a major role. The brand enjoyed a great back wind with the trend toward premium and products made with natural ingredients, says Bradley. However, the main event in 2006 was the launch of 40g impulse bags. The introduction of our 40g offer has been a key driver of sales, says Bradley. It has seen really explosive growth and grown distribution quite strongly, with Kettle Chips gaining listings in the convenience channel it did not enjoy previously. So confident is the manufacturer of the 40g bags appeal, it has introduced smaller case sizes to make it easier for retailers to sample the new format. This is our time, says Bradley. People enjoy crisps once in a while. And, when people want to make that choice, Kettle Chips has a healthier profile than most. Kettle Chips as a brand has always been doing all the things consumers are increasingly concerned with today, explains Bradley. Weve always been wedded to no artificial ingredients. Weve always used the least adulterated oils. Were way out ahead of anybody in ingredients. He goes on to tell how the manufacturer goes to great lengths to create exciting tastes using only natural ingredients like Buffalo mozzarella from
26 TOP 100 GROCERY BRANDS

DO THE BASICS Be premium. Be healthier. Be convenient. BE FUNCTIONAL Super foods and functional products, new and established, are favourites with consumers. Look at Danone Bio Activia for proof. BE MULTI-FUNCTIONAL Being in line with just one consumer trend is not enough to propel you to greatness. Products showing impressive growth are those which are indulgent yet healthy, convenient yet natural, premium yet mainstream. Youve been challenged. BE KINDER TO THE ENVIRONMENT Global warming is officially on the agenda. Its not just the life of your consumers you must prolong, it is the life of the planet that needs saving as well. BE IN TOUCH WITH THE PEOPLE Experiential marketing is the way forward. BE ON YOUTUBE Do you know how many people watch those online videos? Millions. Trust Google. Online video advertising is a key part of what the company is claiming will be a renaissance in fmcg marketing. BE DELICIOUS Because food and drink is all about enjoyment. southern Italy and Double Gloucester cheese and is committed to continuing this all-natural approach with the focus firmly on the consumers needs and desires. People increasingly check nutritional content on bags, says Bradley, so the company has just put a much clearer nutritional panel on pack combined with the traffic light symbol. However, Kettle Chips has shied away from making too much of a song and dance of its stringent ingredientsourcing regime and dedication to all-natural ingredients on pack. Whenever we can stand up to an honest claim we do, says Bradley, but we dont beat our chests about our products. We get fabulous feedback from customers, but were quite a humble outfit and we hope consumers appreciate it. This clear offering, which ticks all the current consumer-trend boxes, combined with a trustworthy brand image and nononsense marketing strategy, has worked for the brand. In 2007 consumers can expect to see more of the same from Kettle Chips: Weve been doing exciting design work on flavours and worked on our core. We expect consumers to be wowed by tasting the changes in 2007, says Bradley. And, Kettle Chips expects more of the same from consumers. Bradley again: We have a low penetration 14.5% and frequency of purchase is relatively low. So were very excited about the potential.

BRITVIC J20
2006 2005 yoy change 42.7m 39.6m 7.9%
Britvic identifies a main driver of J2Os success as the growing interest in premium and indulgence, classing the brand as an indulgent soft drink. However, J2Os 7.9% sales growth is most certainly down in part to the health trend sweeping the industry. Julian Mears from Britvic says: We expect to see the trend of still drinks increasing ahead of carbonates to continue, and the trend in indulgent products to develop over the next year. He cites J2Os on-trade success as a further contributor to off-trade sales growth. Mears says by investing in an extensive new advertising campaign (The Storm), launching a new flavour (orange and pomegranate) and extending the range into PET bottles, Britvic is banking on growth in the category continuing in 2007.
www.checkoutmagazine.co.uk MARCH 2007

* Top 100 value figures on this page have been rounded to the nearest tenth of a million.

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