Confidential & Proprietary Copyright © 2007 The Nielsen Company Climate change: Consumers’ views...

Confidential & Proprietary • Copyright © 2007 The Nielsen Company

Climate change: Consumers’ views

Jonathan BanksBusiness Insight DirectorApril 18, 2007

Confidential & ProprietaryCopyright © 2007 The Nielsen Company

Agenda

•Global consumer worries•Great Britain–concerns–attitudes–behaviour


0%

5%

10%

15%

20%

25%

30%

35%

40%

biggest 2nd biggest

Source: ACNielsen – Global Online Survey Nov 2006Global results

What is your biggest concern over the next 6 months?


0%

5%

10%

15%

20%

25%

30%

2nd biggest

biggest concern

Source: ACNielsen – Global Online Survey Nov 2006UK results

What is your biggest concern over the next 6 months?


Global Warming is my biggest/second biggest concernTop 20 countries

France 27%Australia 24%Switzerland 19%Finland 14%UK 14%Canada 13%Thailand 12%New Zealand 12%Belgium 11%Sweden 11%

Denmark 11%Spain 11%Norway 10%Ireland 9%Malaysia 9%Netherlands 9%India 8%Japan 8%Singapore 7%Brazil 7%

Source: Nielsen Global Online Survey November 2006

•Bottom countries: China, South Korea, Czech, Lithuania, Poland, Russia, Hungary


134 129117 113

107 107 104 101 100 9688 84

75 7464

97

94105106106

Consumer Confidence Index: a large spread100 = neutral; Global Average = 99; India 137; USA 108

Calculated on responses to:• Do you think job prospects in the next 12 months will be:• Do you think the state of your own personal finances in the next year will be:• Considering the cost of things today and your own personal finances, would you say at this moment the time

to buy things you want and need is:– excellent (200), good (133), not so good (67), bad (0)



No correlation between consumer confidence and concern re climate change

Argentina

Austria

BelgiumBrazil

Canada

Chile

ChinaCzech Republic

Denmark

Estonia Finland

GermanyGreece

Hong Kong

Hungary

India

Indonesia

Ireland

Italy

Japan

Latvia

Lithuania

Malaysia

MexicoNetherlands

New Zealand

Norw ay

Philippines

Poland

Portugal

Russia

Singapore

South Africa

South Korea

Spain

Sw eden

Taiw an

Thailand

Turkey

UAE

UK

US

Vietnam

R2 = 0.03

50

60

70

80

90

100

110

120

130

140

0% 5% 10% 15%

Global warming concern

Co

nsu

mer

co

nfi

den

ce

.

France

AustraliaSw itzerland

•low confidence•high global warming concern

•high confidence•high global warming concern

•high confidence•low global warming concern

•low confidence•low global warming concern

Cross hairs = global total: Cons conf 99, global warming 7%Source: Nielsen Global Online Survey November 2006

50

140

0% 15%


62% 57% 57%

43%

57%

22%35%

36% 34%

36%

34%

75%

Latam AsiaPacific

Britain EMEA NorthAmerica

GlobalAverage

Not sure

Not at all a serious problem

Not a very serious problem

Not a serious problem

A fairly serious problem

A very serious problem

Do you think global warming is:

Base: Those respondents who are aware of the issue of global warming

Aware of the issue: 96% 92% 92% 95% 84% 91%



58%49% 45%

32%50%

3%4%

7% 8%

12%

6%

34% 38% 43% 47%54%

3%

62%

43%

1%1%1%1% 1%

Latam Asia Pacific EMEA Britain NorthAmerica

GlobalAverage

Don’t knowBothNatural changes in the climateHuman activities like driving cars and burning fuel

From what you have heard or read about global warming, what do you think is causing it?

Base: Those respondents who are aware of the issue of global warmingSource: Nielsen Global Online Survey November 2006


A very serious problem? Caused by human activities?

Australia

AustriaBelgium

Canada

Chile

Denmark

Finland

France

Germany

Greece

Hong Kong

IndiaIndonesia

Ireland

Italy

Japan

Malaysia

Mexico

Netherlands

New Zealand

Norw ay

PhilippinesPoland

Russia

Singapore

South Africa

Spain

Sw eden

Sw itzerland

Taiw an Thailand

Turkey

UK

US

Czech

Hungary

UAE

Argentina

Vietnam

Estonia

Latvia

Lithuania

R2 = 0.2

0

0

0

0

1

1

1

20% 40% 60% 80%

A very serious problem

It's

cau

sed

by

hu

man

act

ivit

ies

.

•serious problem•not caused by human activity

•not very serious•caused by human activity

Cross hairs = global total: very serious problem 57% caused by human activity 50%Source: Nielsen Global Online Survey November 2006

•serious problem•caused by human activity

•not very serious•not caused by human activity

30

60

2090


• “Salad options are less fattening”• “Organic is better for me”• “Organic pollutes the environment less”• “Organic production = lower carbon emissions”• “GM is bad for me”• “Nanotechnology is dangerous”• “Banning ads to kids will reduce obesity”• “I’m too busy to eat/exercise properly”• “Vegetarian options are healthier”• “I need to eat more fruit and veg, but:– an apple contains 4 tsp of sugar – a third of all produce contains pesticide residue – the fruit looks unappetising”

• “If it’s cheap it must be rubbish”• “Moving food half-way round the world is wrong”• “Fair trade can only be a good thing”

Consumer confusion


Retail advertisingWhilst others changed their emphasis from price to quality, Tesco addressed sustainability...

Source: Nielsen Media Research


Which of these environment and related issues concerns you the most?

43%

21%

18%

5%

4%

4%

3%

2%

Climate change

Packaging waste

Pollution

Pesticides

I'm not worried about theenvironment

Fuel emissions

Sustainable farming

Food miles

Source: Nielsen Homescan survey February 2007 – Great Britain


Climate change is the environmental issue that concerns me the most

61%

48% 49%

40%35%

16-24 25-34 35-44 45-64 65+




43% 42% 44% 46%41%

AB C1 C2 D E




44% 45%38%

45% 42% 40%45% 44% 42% 45%

39%

North South



Organic is becoming a mainstream part of fresh and chilled categories, and still demonstrating strong growth.

Defined Organic Value SalesGrocery Multiples

931

1,126

1,330

0

200

400

600

800

1000

1200

1400

2005 2006 2007

Val

ue

Sal

es (

£000

s)

Organic share of total category value

0.3%

0.6%

0.8%

0.8%

1.4%

1.6%

1.6%

3.0%

4.2%

4.7%

Beer Wine & Spirits

Frozen

Chilled prepared food

Deli counter

Grocery

Total Defined Organic

Bakery

Meat Poultry & Fish

Produce

Dairy

Source: ACNielsen ScanTrack Grocery Multiples Total Store Read

+18%

+21% 24%

20%

21%

18%

18%

12%

1%

21%

11%

7%

% sales growth 2006 v 2005


The debate continues as to whether organic foods are worth a premium price. As an additional 500,000 people have decided they have a preference for

natural foods, the same number have also decided Organic products are too expensive.

25%

30%

45%

Agree Neither Agree or Disagree Disagree

“It’s worth paying extra for organic products”

25%

27%

23%

October2006

February2006

February2004

Source: ACNielsen Homescan Survey


Fairtrade publicity has been successful as 86% of people now claim to know what Fairtrade products are. However, we see less inclination from people to buy them and a general, though improving, perception that they

are too expensive.

80

32

49

86

29

48

"I know whatFairtrade

products are"

"I prefer to buyFairtradeproducts"

"Fairtradeproducts are too

expensive"

2005

2006

Source: ACNielsen Homescan SurveyOctober 2006 vs. November 2005

% respondents that agree


Waitrose, Co-op and Sainsbury have high proportion of main shoppers that prefer Fairtrade.

61

86

87

92

138

194

211

Asda

Morrisons

Somerfield

Tesco

Sainsbury

Co-op

Waitrose

“I prefer to buy Fairtrade products”% respondents who “agree strongly” Indexed on All Households

Source : ACNielsen Homescan Survey October 2006


Summary

•UK consumer (financial) confidence levels neutral•UK environmental concern:–low in absolute terms–but relatively high

•No correlation between confidence and concern for environment•16-24s now expressing highest levels of concern•No major demographic skews (E’s lowest)•No great regional skews (TyneTees and SouthWest lowest)•Fairtrade and Organic continue to grow–but don’t always justify their premium–Waitrose, Co-op and JS main shoppers over-index

Confidential & Proprietary Copyright © 2007 The Nielsen Company Climate change: Consumers’ views...

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