10/11/2011

Consumer trends - Freshlogic 1

Wealth from Water

Market Information Session 1

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Consumer buying trends and major influences

Overview

• Food buying overview

• Forces driving change

• What evidence are we seeing

• How we make sense of them

• Implications

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Consumer trends - Freshlogic 2

Our approach

MealpulseTM

Diverse sources

of data

Global trends &

developments Validate & assess impact

DocketdataAdwatch

Harvest and interpret

insights

THRUchain™ view

Mealpulse™

22-30%

70-78%

Household food spend

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Consumer trends - Freshlogic 3

Spend by household segment

Mealpulse™

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Consumer trends - Freshlogic 4

Shopping trips

I worry about my security

Tell me what I need to know, now

I want to do my bit

E-tailing works for me

I can cook, I want to

Intensity of the retail contest

Diverse households & lifestyles

Concern for our health

Global economics over the BBQ

Forces driving change

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Consumer trends - Freshlogic 5

1. I worry about my security

• Priority: restoring wealth

• Sensitivity to costs

• Now “cool to save”

• Eating at home = cheaper

70.0

80.0

90.0

100.0

110.0

120.0

130.0

Sep-2006

Dec-2006

Mar-2007

Jun-2007

Sep-2007

Dec-2007

Mar-2008

Jun-2008

Sep-2008

Dec-2008

Mar-2009

Jun-2009

Sep-2009

Dec-2009

Mar-2010

Jun-2010

Sep-2010

Dec-2010

Mar-2011

Jun-2011

Sep-2011

Westpac consumer sentiment

2. Intensity of the retail contest

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

Q3

09

Q4

09

Q1

10

Q2

10

Q3

10

Q4

10

Q1

11

Q2

11

Q3

11

Q4

11

Q1

12

Retailer "same store" sales & food inflation

Woolworths Coles Food CPI

Coles' resurgenceWoolworths' ascendancy

5.2%

1.9%

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Consumer trends - Freshlogic 6

2. Intensity of the retail contest

• Daily updates feed

uncertainty & lock in a

cautious mode

• Another wealth hit?

• Changing economics for

local food processing

3. Global economics over the BBQ

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4. Not confidence inspiring

4. Tell me what I need to know, now

• Your story in 140 characters

• Enables wildfire activism

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Consumer trends - Freshlogic 8

More touch screens

….trust in what can be

delivered

Credit card use on line is

now OK…it wasn’t 10

years ago

What leverage is available

250 refrigerated

vans – Apr 11

$130m sales

80% fresh

1.8m boxes

$230m + sales

100 +

providers

$360m online

food &

700,000 apps

Sept 2011 – 200

grocery lines

5. E-tailing works for me

groceryrun.com.au

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6. I want to do my bit

• Looking for ways to act

• Sense for community

• All households involved

• Trade offs happening

Organic20%

Free Range

20%

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Lots of messages…only the headlines retained

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7. Diversity in households & lifestyles

• Convenience a core demand

• 1 adult in 25% households

• Top up shopping the norm

• Smaller portions solve many

challenges

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

0

2

4

6

8

10

12

14

16

Items per shopping trip by time of day and average price

$0 $5 $10 $15 $20 $25 $30 $35

Tomatoes

Loose leaf…

Pre-pack…

Mushrooms

Beans

Zucchini

Ginger

Cauliflower

Selling price per kgA

B

Average price for

vegetables $3.65 per kg

Demand for convenience

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Consumer trends - Freshlogic 11

Convenience – Berlin Fruit Logistica - Feb 2011

Smaller portion size

Demand for convenience

Re-establishing the heart of the home in

the kitchen through more home cooking

or at least greater interaction with food.

It has peaked in Australia….but will

remain as an influence

8. I can cook, I want to

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From To

Food Service – new formats

Pop up stores & street food

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9. Concerned for our health

• Always an umbrella

• Higher profile of healthy

eating

• Sensitivity to additives

• Regulators in catch up

mode

I worry about my security

Tell me what I need to know, now

I want to do my bit

E-tailing works for me

I can cook, I want to

Intensity of the retail contest

Diverse households & lifestyles

Concern for our health

Global economics over the BBQ

Forces driving food market change

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Implications

• Competitive conditions look set to continue

• A discerning and unforgiving consumer

• Are our products suitable for a Top-up shop?

• Smaller portions are in demand?

• Are ethical food signals clear?

• Where is the market growth?

• What are the emerging channels worth targeting?

• How do I keep informed?

More questions than answers

Contact

Martin Kneebone

Director

Freshlogic

martin@freshlogic.com.au

Visit

freshlogic.com.au

Receive freshIncite

©

This workshop was presented by food industry expert Martin Kneebone of Freshlogic. For more information contact: Freshlogic Level 3, 192B Burwood Road Hawthorn, Victoria 3122 Australia

Phone: +61 3 98181588

Email: martin@freshlogic.com.au

www.freshlogic.com.au

Disclaimer Information in this publication is intended for general information only and does not constitute professional advice and should not be relied upon as such. No representation or warranty is made as to the accuracy, reliability or completeness of any information in this publication. Readers should make their own enquiries and seek independent professional advice before acting on relying on any of the information provided. The Crown, its officers, employees and agents do not accept liability however arising, including liability for negligence, for any loss resulting from the use of or reliance upon information in this publication.