Mushroom Retailing in the UK and Ireland

Growing the success of Irish food & horticultureAIDAN COTTERCHIEF EXECUTIVE

BORD BIA28 JANUARY 2009

Growing the success of Irish food & horticulture

Michal Slawski

Development and Marketing Specialist 20th October 2011

Mushroom Retailing in the UK andIreland


TopicsTopics

An overview of production in Ireland and theAn overview of production in Ireland and theUKUK

The retail market in the UKThe retail market in the UK

The retail market in IrelandThe retail market in Ireland

Promotion update from the UKPromotion update from the UK


Overview ofIndustry

Farmgate value of mushrooms:Farmgate value of mushrooms:€€98 million in Southern Ireland98 million in Southern Ireland££28 million (28 million (€€32 million) in Northern Ireland32 million) in Northern IrelandProduction Volume in the SouthProduction Volume in the South –– 41000 t41000 tProduction Volume in the NorthProduction Volume in the North –– 17000 t17000 t


The UK RetailThe UK RetailMarketMarket


Supply of the UK Market 2010Supply of the UK Market 2010


UK DemographicsUK Demographics

Source: Office for National Statistics, 2008, CIA World Factbook

67,013

58,789

59,835

61,892

64,727

50,000

55,000

60,000

65,000

70,000

2001 2004 2011 2021 2031

Population Split by Age, 2009(%)

Population Forecast (000’s)

16.7 16.2

67.1

65+

15-64

0-14


Grocery Retail Market Sizes 2010Grocery Retail Market Sizes 2010

Country Grocery RetailMarket(€bn)

1. France 208.17

2. Germany 162.46

3. UnitedKingdom

161.96

4. Italy 129.56

5. Spain 97.05

6. Switzerland 39.77

7. Belgium 34.92

8. Netherlands 34.46

9. Sweden 24.55

10. Greece 23.72

Top 10 Western EuropeanMarkets

Top 10 Global Markets

Country Grocery RetailMarket

(US$bn)

1. USA 881.84

2. China 789.91

3. Japan 359.96

4. India 350.38

5. Brazil 289.92

6. France 276.04

7. Russia 256.38

8. Germany 215.43

9. UnitedKingdom

214.60

10. Italy 171.80

Source: Retail Analysis Datacentre, calculated in 2011


Consumer Spend Per Capita in theConsumer Spend Per Capita in theUnited KingdomUnited Kingdom

13,95814,392

14,10914,617

2007 2008 2009 2010

Consum

er

Spend/C

apita

£

Consumer spend per capita in the United Kingdom isConsumer spend per capita in the United Kingdom isamongst the highest in Europeamongst the highest in Europe.

2,019

2,111

2,238 2,248

2007 2008 2009 2010

Gro

cery

Reta

ilM

ark

et/

Capita

£

Source: Retail Analysis Datacentre, calculated in 2011


3.7%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%05

Oct

0802

Nov

0830

Nov

0828

Dec

0825

Jan

0922

Feb

0922

Mar

0919

Apr

0917

May

0914

Jun

0912

Jul0

909

Aug

0906

Sep

0904

Oct

0901

Nov

0929

Nov

0927

Dec

0924

Jan

1021

Feb

1021

Mar

1018

Apr

1016

May

1013

Jun

1011

Jul1

008

Aug

1005

Sep

1003

Oct

1031

Oct

1028

Nov

1026

Dec

1023

Jan

1120

Feb

11

%ch

ange

12 we growth 12 we inflation

Trading Down

Trading Up

How is the grocery market in the UKHow is the grocery market in the UKperforming?performing?UK GROCERY SALES GROWTH OF 3.7% IS IN LINE WITH INFLATION; SHOPPERCONTINUE TO REIN IN SPEND IN 2011

DATA: KWP RST 12w/e 20th Feb 2011


Brassicas11%

Legumes4%

Other Veg6%

Mushroom8%

Herbs1%

Salads32%

Root Crops16%

Potatoes22%

Vegetable sectors share of the marketVegetable sectors share of the marketSALADS IS THE LARGEST SECTOR AND MAIN AREA DRIVING GROWTH, WHILSTPOTATOES AND MUSHROOMS UNDERPERFORM

DATA: KWP 52w/e 20th Feb 2011


Yr on Yr %Change

Yr on Yr %Change

Total Sector52 w/e 02-Oct-11

Spend (£000) :

Volume (000Kgs) :

116,118

354,492 0.5%

1.8%

UK Retail SalesUK Retail SalesSpend (£000) | Actual | TOTAL MARKET | Total Type | 52 w/e

© Kantar Worldpanel


Market SplitMarket Split


0

10

20

30

40

50

60

70

80

90

52w

/eJa

n16

94

52w

/eJu

l31

94

52w

/eFe

b12

95

52w

/eA

ug27

95

52w

/eM

ar10

96

52w

/eS

ep22

96

52w

/eA

pr06

97

52w

/eO

ct19

97

52w

/eM

ay03

98

52w

/eN

ov15

98

52w

/eM

ay30

99

52w

/eD

ec12

99

52w

/eJu

n25

00

52w

/eJa

n07

01

52w

/eJu

l22

01

52w

/eFe

b03

02

52w

/eA

ug18

02

52w

/e02

Mar

03

52w

/e14

Sep

03

52w

/e28

Mar

04

52w

/e10

Oct

04

52w

/e24

Apr

05

52w

/e06

Nov

05

52w

/e21

May

06

52w

/e03

Dec

06

52w

/e17

Jun

07

52w

/e30

Dec

07

52w

/e13

Jul0

8

52W

/e25

Jan

09

52W

/e09

Aug

09

52W

/e21

Feb

10

52W

/e05

Sep

10

Loose PrePacked

PrePacked share in growth althoughslower than previously

Total Mushroom Loose vs PP SpendTotal Mushroom Loose vs PP SpendShare%Share%IN 1999 PREPACKED HAS OVERTAKEN LOOSE IN SPEND SHARE. IN THE FIRSTMONTHS OF 2011, PREPACKED HAS SURPASSED THE 80% SHARE



2.65 2.66 2.

70 2.74

2.79 2.

84 2.85 2.86 2.87 2.89

2.86

2.82

2.80 2.81

2.89

3.02

3.09 3.10

3.07

3.07 3.

10 3.12

3.10

3.07

3.04 3.05 3.07 3.08

3.07

3.04

3.00 3.

03 3.07

3.14

3.14 3.

183.

183.

153.

103.

08 3.09

3.09

2.5

2.6

2.7

2.8

2.9

3

3.1

3.2

3.3

12W/e30

Dec07

12W/e24

Feb08

12W/e20Apr08

12W/e15

Jun08

12W/e10

Aug08

12W/e05Oct08

12W/e30

Nov08

12W/e25

Jan09

12W/e22

Mar09

12W/e17

May09

12W/e12Jul09

12W/e06

Sep09

12W/e01

Nov09

12W/e27

Dec09

12W/e21

Feb10

12W/e18Apr10

12W/e13

Jun10

12W/e08

Aug10

12W/e03Oct10

12W/e28

Nov10

12W/e23

Jan11

TOTAL MUSHROOMTOTAL MUSHROOM –– ROLLING PRICEROLLING PRICEPER KGPER KGPRICE HAS BEEN STATIC OVER THE LAST 2 YEARS, FLUCTUATIONS WITHIN 3%FROM THE AVERAGE PRICE



Retailing in IrelandRetailing in Ireland

Growing the success of Irish food & horticultureSource: Central Statistics Office Ireland, 2006

3,917

4,235

5,070

0

1000

2000

3000

4000

5000

6000

2002 2006 2021e

Population Split by Age,2009 (%)

Population Forecast (000s)

20.912.0

67.1

65+

15-64

0-14

Ireland: DemographicsIreland: Demographics

Source: Retail Analysis Datacentre, calculated in 2011,CIA World Factbook

Growing the success of Irish food & horticulture 17 17

Grocery Market TrendGrocery Market Trend

% Value Growth in Total Grocery

-10

-8

-6

-4

-2

0

2

4

12w/e21

Mar10

12w/e

18 Apr10

12w/e16

May10

12w/e

13 Jun10

12w/e

11 Jul10

12w/e08

Aug10

12w/e

05 Sep10

12w/e

03 Oct10

12w/e

31 Oct10

12w/e28

Nov10

12w/e26

Dec10

12w/e

23 Jan11

12w/e

20 Feb11

12w/e20

Mar11

12 w/e

4w/e

KANTAR WORLDPANEL: 12& 4 W/E 20th MAR 2011

Growing the success of Irish food & horticulture 18

Top 20 Selling VegetablesTop 20 Selling Vegetables

0

2,000

4,000

6,000

8,000

10,000

12,000

Car

rots

Oni

ons

Tom

ato

Oth

erVe

geta

bles

Mus

hroo

m

Cab

bage

Tota

lP

eppe

rs

Bro

ccol

i

Lettu

ce

Par

snip

s

Cau

liflo

wer

Turn

ips

Cel

ery

Cuc

umbe

r

Sw

edes

Spr

ing

Oni

ons

Bru

ssel

Spro

uts

Leek

s

Squ

ash

Cou

rget

tes

Market Size 000kgs

KANTAR WORLDPANEL: 12 W/E 20tH MARCH 2011


Year on Year SalesYear on Year SalesSpend (€000) | Actual | Total Outlets | 52 w/e



Market ShareMarket Share


Volume SalesVolume SalesVolume (000 Kgs) | Total Outlets | 52 w/e



UKUK ‘‘More to MushroomsMore to Mushrooms’’CampaignCampaign


UKUK ‘‘More to MushroomsMore to Mushrooms’’ CampaignCampaign

Value €2.4 million over 3 years

50% funded by producers and marketing companiesin Ireland and the UK

50% funded by the EU

Support from Bord Bia

First burst of activity was January 2011



Main emphasis – HEALTH – based on researchwork showing this was the biggest motivation toconsumers to buy more mushrooms

Also emphasising taste and versatility

Main target – women 25-45 year old age group –under - indexing in consumption and importantconsumers of the future



After analysing the media consumption of this agegroup these were the channels chosen:

Women’s Magazines

Digital advertising

PR

Health leaflets



Mix of lifestyle (with strong food editorial), food and supermarket publicationsFull page ads to run in front half or within relevant food editorial



BBC TV2nd and 9th October 2011

1.5 million viewers

FPJ fresh info26th September 2011

Circ: n/a

JamieOliver.com06 October 2011

Circ: 1.3M



BBC Radio Scotland05 October 2011

Circ: 120,000

BBC TV2nd and 9th October 2011

1.5 million viewers

Best20th September 2011

Circ: 294,161


Yr on Yr %Change

Yr on Yr %Change

Total Sector52 w/e 02-Oct-11

Spend (£000) :

Volume (000Kgs) :

116,118

354,492 0.5%

1.8%

UK Retail SalesUK Retail SalesSpend (£000) | Actual | TOTAL MARKET | Total Type | 52 w/e




Association of mushrooms with B vitamins has risen

Belief that mushrooms are good value for money isalso beginning to rise.

Awareness of mushroom advertising grew by 37%.

Mushroom Retailing in the UK and Ireland

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