Baltics Growth reporter q2 2010

Q2’2010

10/08/2010

Introduction

Compares overall market dynamics (value and unit growth) in the Fast Moving Consumer Goods sector across Europe.

Is based on the sales tracking Nielsen performs in every European market.

Covers sales in grocery, hypermarket, supermarket, discount and convenience channels

Is based on the widest possible basket of product categories that are continuously tracked by Nielsen in each of these countries and channels

Reports on the 2nd quarter of 2010–

Week 15, 2010 till week 27, 2010

NB: Turkey data was reworked for Q1 2010–

Cigarettes were removed from calculation because of distorting effect

This report:

Executive Summary A poor Q2 in terms of volume growth rates, confirms the very slow

healing of consumer confidence

In 2009 the Easter weekend was part of Q2, this year Easter was part of Q1 sales –

The shift in sales of this top weekend penalized the Q2 growth rates •

Beyond this calendar technicality it’s the first time European value growth falls short of +1% since debut of the Growth Reporter in 2007 –

Steep drop in Norway despite highest Consumer Confidence in Europe–

Germany and Italy are holding down the European number •

Greek / Euro crisis becomes visible in FMCG Spending

Inflation is still under the 1% level –

Deflation exceeds -6% in Finland and close to -3% in Ireland, Portugal and Switzerland–

Price increase surge back to +2.7% in the UK and +3% in Turkey •

Volume growth rates were lower than Q1 in 15 of the 21 markets–

Hungary, the Czech rep and Switzerland are the exceptions•

Consumer remains doubtful on recovery –

Consumer confidence rebuilding is slow •

The East –

West divide remains in place.

Rampant inflation in Albania, Bosnia and Ukraine–

Falling volumes in Bulgaria, Baltics, Romania and Russia

Europe overview (*)Fast Moving Consumer Goods market dynamics

(*):Austria, Belgium, Czech Rep., Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland, Turkey, UK.

Latest volume trend overview

Q2 2010 growth rates per country (versus Q2 2009)

•Nielsen Economic Current

Germany France UK Italy Spain

Nielsen Market Index Volume*

Nielsen Market Index Value**

Are consumers shopping more frequently?

Are consumers spending more per trip?

Are shoppers shifting to value channels?

Nielsen Global Consumer Confidence index

*Nielsen Market Index Volume defined as unit change vs. YAGO **Nielsen Market Index Value defined as € , £ change vs. YAGO

Europe Big 5 summary

Very Strong Growth: >= +5%

Growth: between +1 and + 4%

Neutral: between -1 and +1%

Negative: between -1 and -4%

Very Negative: < -4%

6363 7878 7171 69698181 77 55 22 44 1010

DETAILS BY COUNTRY

Austria Fast Moving Consumer Goods market dynamics

Belgium Fast Moving Consumer Goods market dynamics

Czech Republic Fast Moving Consumer Goods market dynamics

Denmark Fast Moving Consumer Goods market dynamics

Finland Fast Moving Consumer Goods market dynamics

France Fast Moving Consumer Goods market dynamics

Germany Fast Moving Consumer Goods market dynamics

Greece Fast Moving Consumer Goods market dynamics

Hungary Fast Moving Consumer Goods market dynamics

Ireland Fast Moving Consumer Goods market dynamics

Italy Fast Moving Consumer Goods market dynamics

NetherlandsFast Moving Consumer Goods market dynamics

Norway Fast Moving Consumer Goods market dynamics

Poland Fast Moving Consumer Goods market dynamics

Portugal Fast Moving Consumer Goods market dynamics

Slovakia Fast Moving Consumer Goods market dynamics

Spain Fast Moving Consumer Goods market dynamics

Sweden Fast Moving Consumer Goods market dynamics

Switzerland Fast Moving Consumer Goods market dynamics

Turkey Fast Moving Consumer Goods market dynamics

Cigarettes sales excluded onwards 2010.

UK Fast Moving Consumer Goods market dynamics

Extended countries

Based on Bimonthly reporting cycles•

Categories covered in food and drug channels

Albania Bosnia Bulgaria Croatia Estonia Israel Latvia

Lithuania Macedonia Romenia Russia Serbia Slovenia Ukraine

Albania Fast Moving Consumer Goods market dynamics

Bosnia Fast Moving Consumer Goods market dynamics

Bulgaria Fast Moving Consumer Goods market dynamics

Croatia Fast Moving Consumer Goods market dynamics

Estonia Fast Moving Consumer Goods market dynamics

Israel Fast Moving Consumer Goods market dynamics

Latvia Fast Moving Consumer Goods market dynamics

Lithuania Fast Moving Consumer Goods market dynamics

Macedonia Fast Moving Consumer Goods market dynamics

Romania Fast Moving Consumer Goods market dynamics

RussiaFast Moving Consumer Goods Market Dynamics

Serbia Fast Moving Consumer Goods market dynamics

Slovenia Fast Moving Consumer Goods market dynamics

Ukraine Fast Moving Consumer Goods market dynamics

Glossary•

Nominal value growth: –

Percentage change in value sales (expenditures) as measured by the total basket of reported product categories

Unit value growth (≈

‘price’

change): –

Percentage change in the average retail price per unit in the total basket of reported product categories

The unit of volume in the basket varies by category (e.g. litres, kilograms, tonnes, etc) –

The change in average price per unit may result from: –

Price changes of individual products –

Change in the mix of purchased products; more or less expensive products, more or less promotions, etc.

Channel switching; more or less purchases in discount stores, or hypermarkets, or convenience outlets, etc.

Product or channel mix changes may be induced by price change or may just be the result of market dynamics.

The unit value growth reflects how consumers experience ‘cost of living’ in their actual grocery shopping behaviour.

Volume growth:–

Percentage change in purchased volume (quantity) of products •

The three components are related:–

ValueGrowth = UnitValueGrowth * VolumeGrowth

See attachment for calculation rules

Baltics Growth reporter q2 2010

Business

Transcript of Baltics Growth reporter q2 2010

„Thermo Fisher Scientific Baltics

Il Reporter Q2 - Settembre 2015

Il Reporter Q2 - Febbraio 2014

Il Reporter Q2 - Febbraio 2015

Il Reporter Q2 - Dicembre 2015

Effective Defense of the Baltics

Silicon valley comes to the Baltics

AI @ Baltics - AI Trinity

Tech Chill Baltics 2013

Lemminkäinen in the Baltics

Telecom Nordic & Baltics Product Presentation

The Baltics

Scandinavia & Baltics

Il Reporter Q2 - Maggio 2015

Il Reporter Q2 - Novembre 2013

Business possibilities in the Baltics

Il Reporter Q2 - Ottobre 2014

Il Reporter Q2 - Novembre 2014

Recruitment in baltics

Ticketing in Baltics