OPPORTUNITIES AND CHALLENGES FOR FOOD MANUFACTURERS
Transcript of OPPORTUNITIES AND CHALLENGES FOR FOOD MANUFACTURERS
SELLING CHOCOLATE
OPPORTUNITIES AND CHALLENGES FOR FOOD
MANUFACTURERS
FRANCISCO REDRUELLO
SENIOR FOOD ANALYST
21 NOVEMBER 2012
THE QUESTION
A SNAPSHOT ON CHOCOLATE
CASE STUDIES: BRAZIL AND CHINA
CASE STUDY: US
CASE STUDIES: SPAIN AND UK
KEY CONCLUSIONS
Q&A
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Living In Uncertain Times ECONOMIC UNCERTAINTY
Source: IMF World Economic Outlook. July 2012
+5.2%
+3.8%
+3.3%
2010 2011 *2012
*GDP Growth in 2012 and 2013 is forecasted
+3.6%
*2013
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Not Only In Developed Economies…ECONOMIC UNCERTAINTY
Eurozone Sentiment Dampened by Debt
Worries
US Unemployment above 8%
Domestic Demand in China Weakens
Economy in Brazil and Argentina Cools Down
THE QUESTION
A SNAPSHOT ON CHOCOLATE
CASE STUDIES: BRAZIL AND CHINA
CASE STUDY: US
CASE STUDIES: SPAIN AND UK
KEY CONCLUSIONS
Q&A
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2
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4
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2007-08 2008-09 2009-10 2010-11 2011-12
Percentage Growth (%)
Chocolate Confectionery. Global Retail Value Growth (%)
Real GDP Growth Chocolate Confectionery*
Chocolate Growth Accelerates In 2012A SNAPSHOT ON CHOCOLATE
* Constant 2012 Prices Fixed 2012 Exchange Rates. Year-on-Year Growth (%). 2012 is partially estimated
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Asia Pacific12%
Australasia3%
Eastern Europe15%
Latin America11%
Middle East and Africa
4%
North America20%
Western Europe35%
Chocolate Confectionery. Retail Value Sales Breakdown by Region. 2012
1.4
10.3
0.9
4.71.8
1.1
4.3
2011-12 Retail Value Growth (%)*
Emerging Markets Lead Growth A SNAPSHOT ON CHOCOLATE
* Constant 2012 Prices Fixed 2012 Exchange Rates. Year-on-Year Growth (%)
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Boxed Assortments And Seasonal Chocolate Stand Out A SNAPSHOT ON CHOCOLATE
Alfajores0% Bagged
Selflines/Softlines15%
Boxed Assortments
20%
Chocolate with Toys3%
Countlines26%
Seasonal Chocolate10%
Tablets25%
Other 1%
Chocolate Confectionery. Retail Value Sales Breakdown by Category. 2012
10.12.2
2.6
1.6
2.8
3.1
32011-12 Retail
Value Growth (%)*
-0.5
* Constant 2012 Prices Fixed 2012 Exchange Rates. Year-on-Year Growth (%)
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0
5,000
10,000
15,000
20,000
25,000
Chocolate Confectionery. Retail Value Sales. (Top Ten Markets) US$ million. 2012
1.9
3.5
Hot Market Opportunities In Brazil And China A SNAPSHOT ON CHOCOLATE
0.9-1.9
14.7 2.30.7
-0.8 1.40.3 8.6
2011-12 Retail Value Growth (%)*
* Constant 2012 Prices Fixed 2012 Exchange Rates. Year-on-Year Growth (%)
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Supermarkets24%
Hypermarkets14%
Discounters10%
Small Grocery Retailers26%
Other Grocery Retailers
5%
Confectionery specialists
11%
Non-Grocery Retailers
8%
Non-Store Retailing
2%
Chocolate Confectionery. Distribution Breakdown (%). Global Retail Value. 2012
0.5
0.9
0.1-0.6
-0.5
Size Matters… For Chocolate At Least A SNAPSHOT ON CHOCOLATE
-0.5
0.4
2007-12 Percentage Share Point Growth
* Constant 2012 Prices Fixed 2012 Exchange Rates. Year-on-Year Growth (%)
THE QUESTION
A SNAPSHOT ON CHOCOLATE
CASE STUDIES: BRAZIL AND CHINA
CASE STUDIES: SPAIN AND UK
KEY CONCLUSIONS
Q&A
© Euromonitor International
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0 750 1,500 2,250
Bagged Selflines/Softlines
Boxed Assortments
Chocolate with Toys
Countlines
Seasonal Chocolate
Tablets
Other ChocolateConfectionery
Chocolate Confectionery in Brazil . Retail Value Sales. US$ Million. 2012
18.1
11.1
13.5
12.4
15.4
�Chocolate benefits from improvement in purchasing power
�Innovation underpins growth of Boxed Assortments
�Filled formats spur demand in tablets
Case Study: Chocolate Confectionery In Brazil CASE STUDIES: BRAZIL AND CHINA
2.7
10.9
2011-12 Retail Value Growth (%)*
* Constant 2012 Prices Fixed 2012 Exchange Rates. Year-on-Year Growth (%)
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Distribution And Premiumisation Are Key For Success CASE STUDIES: BRAZIL AND CHINA
Hershey benefits from Joint Venture with Pandurata Alimentos
Sonho Valsa
Kraft Foods Brasil
11
11.5
12
Percentage Share (%)
Hershey Co. Retail Value Share (%) in Brazil. Tablets
2010 2012
32
33
34Percentage Share (%)
Kraft Foods Brasil. Retail Value Share (%) in Brazil. Chocolate
Confectionery
2010 2012
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0 200 400 600 800
Bagged Selflines/Softlines
Boxed Assortments
Countlines
Tablets
Chocolate Confectionery in China. Retail Value Sales. US$ Million. 2012
5
13.9
10
�Countlines benefit from new launches
�Premium chocolate specialists drive growth of Boxed Assortments
�Bagged Selflines bank on ‘affordable snacking ‘trend
Case Study: Chocolate Confectionery In China CASE STUDIES: BRAZIL AND CHINA
6.9
2011-12 Retail Value Growth (%)*
* Constant 2012 Prices Fixed 2012 Exchange Rates. Year-on-Year Growth (%)
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Crispy Shark Wafer
Nestlé China
Ferrero Rocher
Ferrero China Ltd
Luxury And Positioning Drive Demand In ChinaCASE STUDIES: BRAZIL AND CHINA
16
18
20
22Percentage Share (%)
Ferrero Rocher Group. Retail Value Share (%) in China. Boxed
Assortments
2010 2012
65
70
75
Percentage Share (%)
Nestlé SA. Retail Value Share (%) in China. Countlines
2010 2012
THE QUESTION
A SNAPSHOT ON CHOCOLATE
CASE STUDIES: BRAZIL AND CHINA
CASE STUDY: US
CASE STUDIES: SPAIN AND UK
KEY CONCLUSIONS
Q&A
© Euromonitor International
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0 2,500 5,000 7,500 10,000
Bagged Selflines/Softlines
Boxed Assortments
Countlines
Seasonal Chocolate
Tablets
Chocolate Confectionery in US . Retail Value Sales. US$ Million. 2012
3.9
3.5
-0.4
�Countlines tap into ‘indulgence on the go’
�Sport events underpin positive growth for Bagged Selflines/ Softlines
Case Study: Chocolate Confectionery In US CASE STUDIES: US
-0.4
0.7
2011-12 Retail Value Growth (%)*
* Constant 2012 Prices Fixed 2012 Exchange Rates. Year-on-Year Growth (%)
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Convenience, Price…And Mrs BrownCASE STUDIES: US
Snickers
‘2-to-Go’
Mars Inc
‘Mrs Brown’
Mars Inc
15
20
25
Percentage Share (%)
‘Snickers’. Retail Value Share (%) in US. Countlines
2010 2012
49.5
50
50.5
Percentage Share (%)
‘M&M’. Retail Bagged Selflines/Softlines
2010 2012
THE QUESTION
A SNAPSHOT ON CHOCOLATE
CASE STUDIES: BRAZIL AND CHINA
CASE STUDY: US
CASE STUDIES: SPAIN AND UK
KEY CONCLUSIONS
Q&A
© Euromonitor International
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0 200 400 600
Bagged Selflines/Softlines
Boxed Assortments
Chocolate with Toys
Countlines
Seasonal Chocolate
Tablets
Other ChocolateConfectionery
Chocolate Confectionery in Spain . Retail Value Sales. US$ Million. 2012
-0.9
-2.9
-0.6
-1.1
4
�Chocolate snacking benefits from longer working-hours
�Low retail unit prices underpin growth of Bagged Selflines/ Softlines and Countlines
Case Study: Chocolate Confectionery In Spain CASE STUDIES: SPAIN
-1.1
0.7
2011-12 Retail Value Growth (%)*
* Constant 2012 Prices Fixed 2012 Exchange Rates. Year-on-Year Growth (%)
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‘Dare To Show Your Soft Side’CASE STUDIES: SPAIN
Milka
‘Dare To Show Your Soft Side’
Kraft Foods España
‘Kit Kat Mini’
Nestle SA
8.4
8.6
8.8
Percentage Share (%)
‘Milka’. Retail Value Share (%) in Spain. Tablets
2010 2012
29
29.5
30Percentage Share (%)
‘Kit Kat’. Retail Value Share (%) in Spain. Countlines
2010 2012
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0 1,000 2,000 3,000
Bagged Selflines/Softlines
Boxed Assortments
Chocolate with Toys
Countlines
Seasonal Chocolate
Tablets
Other ChocolateConfectionery
Chocolate Confectionery in UK . Retail Value Sales. US$ Million. 2012
-0.8
3.4
�Low-priced chocolate snacks benefit from major celebrations in 2012
�Bag-sharing snacking thrives during sports events, national celebrations
Case Study: Chocolate Confectionery In UK CASE STUDIES: UK
4
2.2
4.5
-5.2
14.7
2011-12 Retail Value Growth (%)*
* Constant 2012 Prices Fixed 2012 Exchange Rates. Year-on-Year Growth (%)
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All You Need Is Sharing…CASE STUDIES: UK
Green & Black’s
‘Tasting Collection’
Green & Blacks Ltd
‘Bitsa Wispa’
April 2012
Cadbury UK Ltd
0
2.5
5
Percentage Share (%)
‘Green & Black’s’. Retail Value Share (%) in UK. Tablets
2010 2012
0
2
4Percentage Share (%)
‘Bitsa Wispa’. Retail Value Share (%) in UK. Selflines/Softlines
2010 2012
THE QUESTION
A SNAPSHOT ON CHOCOLATE
CASE STUDIES: BRAZIL AND CHINA
CASE STUDY: US
CASE STUDIES: SPAIN AND UK
KEY CONCLUSIONS
Q&A
© Euromonitor International
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Chocolate Is (Still) For Everyone KEY CONCLUSIONS
Demand Booms In Emerging markets
Indulgence And Quality Rule In ‘Intermediate Economies’
Affordable Snacking And ‘Emotion’ Thrive In EU Countries