Confidential & Proprietary Copyright © 2007 The Nielsen Company Summerfruit NZ Industry Review.

Confidential & Proprietary • Copyright © 2007 The Nielsen Company

Summerfruit NZIndustry Review

Confidential & ProprietaryCopyright © 2009 The Nielsen Company

Source: ACNielsen Homescan NZ

Summer fruit was the third fastest growing Fruit variety in value sales in the year to April 26th 2009, growing ahead of the Total Fruit category- which means Stone fruit is gaining in market share within the Fruit and Vegetable category.


The 08-09 Summerfruit season…

…was a season of two halves.


Summerfruit - National ViewSummerfruit performance November 08 - January 09 was stronger than the previous season. More households purchased Summerfruit, bought them more frequently and were willing to pay more each shopping trip.

Summerfruit Season (07-08) Summerfruit Season (08-09)


Summerfruit - National ViewHowever, the 2nd half of the season, particularly February – March 09, saw weaker sales than the previous year. Average trip spend was up almost $1 - but this reduced Summerfruit buyer numbers.

Summerfruit Season (07-08) Summerfruit Season (08-09)


Loose Stone Fruit- National ViewLoose Summerfruit sales were stronger in the first half of the season…….

Stone Fruit Season (07-08) Stone Fruit Season (08-09)


Barcoded Summer Fruit- National ViewWhereas, Barcoded Summer fruit had a stronger second half of the season.

Stone Fruit Season (07-08) Stone Fruit Season (08-09)


Summer Fruit Sales by Pack Type- Total New ZealandPre-packed (Barcoded) Summer Fruit sales may be driving the Supermarket growth- however Loose Stone Fruit sales in Independents are growing the Stone Fruit category

+25% +19% +12% +45%

+24%

+35%

+17%

+42%

+10%

+41%

+46%

-30%5 9 6 1

95 91 9499

NZ Foodstuffs Progressive Total F&V Outlets

Barcode Stone Fruit Share Loose Stone Fruit Share

Sales ($) Growth Rates

Time Period: 26 weeks to 26 April 2009

Source: Nielsen Homescan


Barcoded Cherries- National ViewThough buyer numbers remain small- it is easy to see when the Cherry season peaks- December. And demand and sales spiked significantly in the 08-09 season.

Cherry Season –(07-08) Cherry Season –(08-09)


Barcoded Apricots- National ViewThe demand and availability of Prepacked Apricots remains limited- and in the 08-09 season appears to have been less significant than the previous season

Apricot Season- (07-08) Apricot Season- (08-09)


Barcoded Plums- National ViewAs with Prepacked Apricots, the demand and availability of Prepacked Plums is currently limited.

Plums Season- (07-08) Plums Season- (08-09)


Barcoded Nectarines- National ViewOf all the Prepacked Summerfruit options, Barcoded Nectarines seems to be the one which has shown the most improvement/growth in the last year- is this linked to availability within the relevant Retail outlets.

Nectarines Season- (07-08) Nectarines Season- (08-09)


Barcoded Peaches- National ViewAvailability seems to be the clear reason behind the 8 week peak in demand for Prepacked Peaches in 08-09.

Peach Season (07-08) Peach Season (08-09)


Nationally- 75% of all New Zealand households bought Summer Fruit in the Summer 08/09 Period and that remained stable. Interestingly, less than 70% of Lower North Island New Zealanders purchase Summer Fruit. And Summer Fruit is most popular amongst South Islanders- where 80% of the population purchase Summer Fruit- these regional variations can be seen as opportunities for market development …..

What are the key consumer drivers of sales? - Category HealthALL SHOPPERS - TOTAL STONE FRUIT (TP) - HALF YEAR TO 26/04/2009 - BASED ON VALUE ($000'S)/1000

Source : ACNielsen Homescan NZ


The regional demand and purchasing trends for Loose Summer Fruit are similar to that of Total Summer Fruit sales- with low market penetration levels in the Lower North Island and higher market penetration levels in the South Island

What are the key consumer drivers of sales? - Category HealthALL SHOPPERS - TOTAL FRUIT STONE FRUIT (TP) LOOSE - HALF YEAR TO 26/04/2009 - BASED ON VALUE ($000'S)/1000



The regional picture for Barcoded or Prepacked sales of Summer Fruit is quite different from Loose sales- Barcoded Summer fruit is more popular amongst Upper North Island Shoppers. And Upper North Island Shoppers are also the heaviest purchasers spending on average $10.40 on Barcoded Summer fruit during the 08-09 Season.

What are the key consumer drivers of sales? - Category HealthALL SHOPPERS - TOTAL FRUIT STONE FRUIT (TP) BARCODE - HALF YEAR TO 26/04/2009 - BASED ON VALUE ($000'S)/1000



In February……

……the kids went back to school……


And Summer Fruit went head to head with….

The Apple


Monthly Household Penetration by Key Fruit Type In February 09- competition got tougher as Apple demand surged…..

0

10

20

30

40

50

60

70

80

4 W/E02/12/2007

4 W/E30/12/2007

4 W/E27/01/2008

4 W/E24/02/2008

4 W/E23/03/2008

4 W/E07/12/2008

4 W/E04/01/2009

4 W/E01/02/2009

4 W/E01/03/2009

4 W/E29/03/2009

APPLES BANANAS CITRUS STONE FRUIT

Citrus

Bananas

% of NZ Households buyer during month

Summerfruit

Apples


Summerfruit

Apples


Summer Fruit was the second most popular fruit after Bananas amongst All New Zealanders….New Zealanders spent more money on Stone Fruit than they did on Apples over Summer 2008-09.

How has my buyers' purchasing changed over time?ALL SHOPPERS - NEW ZEALAND - HALF YEAR TO 26/04/2009 - BASED ON VALUE ($000'S) - SHARE BASED ON TOTAL FRUIT



Summer Fruit is a clear favourite amongst New Zealand Households where there are no children….are Summer Fruit seen as a “grown-ups” fruit….if so…why- is it Price or Taste/Texture that contributes to this……


Apples are much preferred to Summer Fruit amongst Households with Children…..


Apples are an important part of a Young Family’s Fruit Basket during Summer……


As well as the Mixed Family……


And Older Family.


Average Trip Spend per Month by Fruit TypeWhen compared to the Average Trip spend on other Fruits during the Summer Fruit season- Summer Fruit appears to be significantly more expensive particularly in the second half of the season…..


0

1

2

3

4

5

6

7

4 W/E02/12/2007

4 W/E30/12/2007

4 W/E27/01/2008

4 W/E24/02/2008

4 W/E23/03/2008

4 W/E07/12/2008

4 W/E04/01/2009

4 W/E01/02/2009

4 W/E01/03/2009

4 W/E29/03/2009

APPLES BANANAS CITRUS STONE FRUIT

Summer Fruit- Last Season Summer Fruit- This Season

Stone Fruit

Citrus

ApplesBananas

Average Trip Spend ($)


Households with Children account for just over 1/3 of all Loose Fruit sales and all Loose Summer Fruit sales…….

HH WITH CHILDREN

36

42

3840

TOTAL FRUIT (LOOSE) TOTAL FRUIT (BARCODE) STONE FRUIT (LOOSE) STONE FRUIT (BARCODE)

% of Total Sales


However, Households with Children- particularly Younger Children are larger buyers of Prepacked Fruit and this includes Prepacked Summerfruit.

HH WITH CHILDREN

36

42

3840

TOTAL FRUIT (LOOSE) TOTAL FRUIT (BARCODE) STONE FRUIT (LOOSE) STONE FRUIT (BARCODE)

% of Total Sales


Nearly 70% of New Zealand Fruit buyer Households are Households without Children- and these Households account for 60% of all Fresh Fruit sales. Within the Summer Fruit category- Households with Children become more important in sales terms, the smaller the Summer Fruit variety- for examples- Households with Children account for a higher proportion of Apricot sales than they account for Nectarine sales.


In particular, pre-packed Plums and Apricots are favoured by Households with Children, particularly younger children.

Is this because this group prefers a smaller sized fruit?


Comparing Trip Spend for Barcoded v Loose Stone FruitNZers pay more per trip when they buy Loose Summer Fruit than when they buy Barcoded Summer Fruit packs.

2

3

4

5

6

7

8

9

10

4 W/E 30/12/2007 4 W/E 27/01/2008 4 W/E 24/02/2008 4 W/E 23/03/2008 4 W/E 04/01/2009 4 W/E 01/02/2009 4 W/E 01/03/2009 4 W/E 29/03/2009

$ PER OCCASION (Stone Fruit Barcode) $ PER OCCASION (Stone Fruit Loose)

Impact of 1kg Cherry packs in December

Average Spend Per Occasion ($)


Barcode Summer FruitAverage $ per Trip

Loose Summer FruitAverage $ per Trip


Strategies for market growth: Families

–Pack smaller size fruits in Family Packs or Value Packs in order to attract households with children.

– Can nectarines and peaches take advantage of the same strategy? Similar to Bobby Bananas and Bagged Gala Apples.

–Price Bagged/Punneted Plums and Apricots sharply in February/March.

– Communicate message of great for lunchbox, great for after school snacks


Households without Children account for…..

…..62% of all Summer Fruit sales in NZ


Fresh Fruit by Household LifestageIt is always a surprise to learn that 60% of Fresh Fruit sales in New Zealand are from Households without Children.


An even greater proportion (62%) of Summer Fruit sales are from Households without Children. Though Families are important to some Fruit types….including Apples.

Summer Fruit Apples

62%


Pre-Family Households spend 20% of their fruit budget on Summer Fruit during the Summer Fruit season.


Summer Fruit is also a firm favourite amongst Empty Nesters-also the second most favourite fruit during the Summer Fruit season


Empty Nesters account for ¼ of all pre-packed Fruit Sales and all pre-packed Summer Fruit sales…….

% of Total Sales

OLDER SINGLES & COUPLES

26

31

26

32

TOTAL FRUIT (BARCODE) TOTAL FRUIT (LOOSE) STONE FRUIT (BARCODE) STONE FRUIT (LOOSE)


However, Empty Nesters account for significantly higher levels of spend on Loose Fruit and Loose Summer Fruit

% of Total Sales

OLDER SINGLES & COUPLES

26

31

26

32

TOTAL FRUIT (BARCODE) TOTAL FRUIT (LOOSE) STONE FRUIT (BARCODE) STONE FRUIT (LOOSE)


Loose Stone Fruit sales do appeal to Higher Income Households, which adds weight to the suggestion that Loose Fruit could be positioned as more premium…..


Strategies for market growth: Empty Nesters

•Demand and consumption for Summer Fruit are highest in December and January when competition from Apples is at its weakest.–Consumers are willing to pay more per trip for Loose Fruit–Empty Nesters are big purchasers of Loose Stone Fruit

–Summer Fruit must “own” Summer–Promote quality- taste, juiciness and provenance heavily during this time–Price in-season, high quality Loose Fruit relatively higher than Pre-packaged Fruit

Confidential & Proprietary Copyright © 2007 The Nielsen Company Summerfruit NZ Industry Review.

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