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France: higher consumption of bananas, berries, exotics

Though French consumption has been stable over the past 10 years, bananas and exotic products have grown by around 20% and berries by 30% while home-grown fruits have fallen by 15%

The stable volumes of fruit and vegetable purchases in the past 10 years mask large variations by species and a sharp rise in retail prices.

These are the main lessons to be learnt from the CTIFL report and Kantar Worldpanel data, which monitor the purchases of 12,000 representative French households.

In 2015, French households purchased an average of 166 kg of fruit and vegetables (excluding potatoes and fresh-cut) compared to 170 kg in 2005. By volume, more fruit are bought than vegetables (84 kg and 81 kg respectively).

While households are consuming slightly less fruit and vegetables on average than 10 years ago, household size has fallen over this period. In fact, the overall consumption of French households as a whole has grown by 6% during the 2005-2015 period.

Another trend is that fruit and vegetables are bought more frequently (63.6 acts of purchase in 2015 against 61 in 2005) but in smaller volumes (2.6 kg compared to 2.8 kg). “This phenomenon is explained by renewed interest in shopping locally and a certain disaffection with very large retail stores,” said Christian Hutin of Ctifl, author of the report on the panel data for Infos Ctif.

Exotic fruit have the wind in their sails

Over the past 10 years the price of fruit and vegetables has risen by 20%. The climb was moderate up to 2010 and has accelerated since then.

“The result is that household spending is higher for the same proportion of fruit and vegetables,” said Christian Hutin.

Prices have risen more for fruit (24%) than for vegetables (17%).

Kantar Worldpanel distinguishes three major fruit categories: mainland fruit (apples, pears, cherries, apricots, peaches/nectarines, plums, strawberries, kiwifruit and berries), citrus fruit (oranges, lemons, limes, clementinas/mandarins, grapefruit) and exotic fruit (bananas, pineapples, mangoes, avocados, litchis).

In volume terms, purchases of French mainland fruit have fallen considerably over the past 10 years (down by 13% to 41 kg per household in 2015), have remained stable for citrus fruit (25 kg per household in both 2015 and 2005) and have risen sharply for exotic fruit (up by 23% to 19 kg per household in 2015).

Within each category, however, volumes vary considerably for different products (see box). This is also the case for vegetables, with a downward trend for fresh vegetables and a 7% rise in fresh-cut vegetable purchase volumes.

AL 

This article appeared in edition 146 of Eurofresh Distribution magazine. Read more from that edition online here.

 

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Fresh food still shaping FMCG evolution in Spain

Fresh food continues to be key in the evolution of Spanish FMCG

Fresh food remains pivotal in the battle to get into consumers’ regular – and now smaller – shopping baskets in Spain, reports Kantar Worldpanel.

However, In its latest analysis of the Fast Moving Consumer Goods (FMCG) sector in Spain, it says both the volume and value of retail sales of perishables over January-September were 2% lower than that for the same period last year.

It attributed this to more Spanish consumers buying their fresh food in modern retail outlets – and paying less for it – instead of in specialist and traditional greengrocers.

The report Retail trends 2016 shows Mercadona – with 23.0% of Spanish FMCG expenditure, up 10% on last year – continues to lead the Spanish retail market by far.

The growth is based on the chain’s stake in the fresh food area and the battle is now centred on winning consumers in regions where Mercadona does not yet lead, Kantar Worldpanel said.

Next comes DIA, which has reinvented itself, improving its image and winning more consumers through measures such as its La Plaza (marketplace) fresh food model. As at September 11, DIA held 8.7% of the Spanish market, up 0.1% points on 2015.

Lidl is Spain’s fastest growing retailer. It currently holds 4.0% market share, having gained 0.5 points on 2015, and has improved its rating in the last year in attributes such as store cleanliness and layout and the possibility for consumers to do all their shopping there.

While hypermarkets (superstores) have maintained a 13.6% market slice – with Carrefour at the top with its 8.5% share – these stores are losing out with the trend to smaller shopping baskets.

Regional supermarkets and online channels: two growing purchasing options

In contrast, two channels are gaining ground and filling consumers’ shopping baskets: regional supermarkets and e-commerce.

Regional supermarkets are emerging as an alternative to national retailers, having moved up 0.2 points since last year to achieve an 11.1% market share.

“Brands like Consum, Ahorramas and Eroski stand out for their importance in their areas of origin and each have found themselves to be in the Top 3 retailers in their respective regions.

“These chains are often ranked higher in small or routine shopping baskets and are more geared towards fresh food products. They also place more importance on their own manufacturers’ brand lines, Kantar Worldpanel said in a press release.

But the most high-profile player of recent months has been e-commerce, which now represents 1.1% of Spanish expenditure in FMCG, attracts 3.7 million Spanish households and is generating new shopping habits.

Florencio García

Kantar Worldpanel retail sector director Florencio García said ‘pure’ online retailers are taking off and this is “shaking up distribution and causing the large groups to make a move.”

Amazon, El Corte Inglés, Carrefour and DIA are driving Spanish consumers’ interest in online purchasing with their movements, pending the sector leader’s movements, Mercadona, where one in every five online buyers now making purchases on the brand’s website,” García said

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Online grocery sales grow 15% to $48bn

"FMCG growth is slowing, but our data shows that people are looking for more convenience, which can be met by shopping online."

The global e-commerce grocery market has grown 15% in the year to this June, reaching sales worth US $48 billion.

In comparison, the FMCG market as a whole is flat, increasing just 1.6% over the same period.

And e-commerce now accounts for 4.4% of all FMCG sales, according to the new 3rd annual Kantar Worldpanel study The Future of E-commerce in FMCG.

Kantar Worldpanel global shopper and retail director Stéphane Roger said the data shows that while overall FMCG growth is slowing, people are looking for more convenience, “which can be met by shopping online.”

Grocery e-commerce, although currently small, with only one in four people shopping online, is growing fast.

“We forecast it will grow to 9% of the market and be worth $150 billion by 2025. With new entrants such as Amazon expanding rapidly, the industry is facing a shake-up,” he said.
Key findings from the report include that:

  • E-commerce growth is not equal around the world and is not explained by connectivity. South Korea is the world’s largest online FMCG market by value share (16.6%) but in the US, also a digitally developed country, only 1.4% of groceries are bought online.
  • China is the market which saw the biggest growth in the last 12 months, 47% – to a value share of 4.2%.
  • Europe has a relatively low adoption of e-commerce in all countries except the UK with 6.9% of the market and France which has 5.3%.
  • France is a relatively unique e-commerce market as their success is with the Drive model whereby the online shop is collected from the store.
  • Once shoppers have begun shopping online they are more likely to continue doing so.
  • Online shopping baskets are usually bigger – shoppers generally spend more per trip online than they do offline. Brands that make it onto online shopping lists are more likely to stay there
  • 55% of online shoppers use the same shopping list from one purchase to the next so brands need to focus their efforts on getting onto that list.

Source: http://www.kantarworldpanel.com/global/News/Global-e-commerce-grocery-market-has-grown-15-to-48bn

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UK lemon market grows by £14 million

lemons ed fr

Thanks predominantly to shoppers buying them more often, retail sales of lemons in the UK are up 13.6% on last year to 47,000 tons.

Kantar Worldpanel data also shows that the 5.3% rise in the frequency of lemon purchases helped push up the lemon spend to a total of £87.6 million for the 52 weeks to May 22 this year, meaning the lemon market grew by 19.2% or just over £14 million.

The average price paid per kilo was up 4.88% on that for the same period a year ago, to £1.86.

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Small rise in grape sales in UK

Thanks largely to shoppers buying them more often, retail sales of fresh table grapes in the UK are up 2.2% on last year to 227.9 million kg.

Thanks largely to shoppers buying them more often, retail sales of fresh table grapes in the UK are up 2.2% on last year to 227.9 million kg.

Kantar Worldpanel data also shows that the 5.5% rise in the frequency of grape purchases helped push up the grape spend to a total of £775.9 million for the 52 weeks to May 22. That total is 1.6% higher than the value of the grape market the previous year.

Red grapes

While there was a small increase in sales of grapes overall, sales of red grapes slipped, something Kantar Worldpanel attributed to decreasing penetration.  

Red grapes – which represent about 47% of both the total value and volume of the total grape market in the UK – saw sales worth £362.8 million, a total 1% under that for the previous 52 weeks, on a volume down 2.8% to 108 million kg.

The average price of £3.36/kg was up 1.9% on that a year ago.

White grapes

A 3.2% decline in the volume of white grapes bought by shoppers per trip was a key factor in the 2.5% decline in the white grape spend to £269.3 million. The volume, 82.4 million kg, was practically unchanged, growing just 0.1% on the previous year.

White grapes accounted for more than a third of all grapes sold at retail in the UK and boast a 63.3% market penetration rate, compared to 59.6% for red grapes, 37.5% for mixed grapes and 27% for black grapes. The average price for white grapes was up 1.9% to £3.27/kg.

Mixed grapes

The mixed grape market was worth £84.2 million, having grown 17.7% on last year. In volume terms, it was up 27.3% to 20.4 million kg. Kantar Worldpanel said this growth was driven by new shoppers entering the market.

The average price for mixed grapes was £4.12/kg, which was higher than the prices for red, white or black grapes alone but down 7.5% on the average price for mixed grapes a year ago.

Black grapes

Thanks to new shoppers entering the black grape market – the penetration rate rose 15.9% – the black grape market enjoyed a 20.9% increase in spend to a total of £58.7 million and the total sales volume grew 25.1% to 16.9 million kg. However, the average price of £3.48/kg was 3.3% lower than that of the previous year.

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Growth in Irish grocery market but uncertain times ahead

SuperValu retained its position as Ireland’s largest retailer, growing its sales by 1.4% and capturing 22.6% of market share.

The recent EU referendum result and weakening of the pound against the euro could see many Irish shoppers return to old habits – heading across the border in search of better value at UK retailers in Northern Ireland, suggests Kantar Worldpanel.

While such cross-border shopping only accounted for 0.3% of Irish grocery sales in the latest 12 week period, at the peak of the recession it stood at 4.1%, the shopper behaviour expert said.

The latest supermarket share figures from Kantar Worldpanel in Ireland, for the 12 weeks June 19, show continued growth for the grocery market with sales up 2.5% on the same period last year.

Return to shopping ‘little and often

Kantar Worldpanel insight director Georgieann Harrington said the average spend per household has increased €27 this year, largely thanks to an increased number of shopping trips. But while the average household has made 62 visits on average over the past 12 weeks, compared with 58 trips last year, the number of items per basket has fallen

And though the grocery market is in growth, the landscape remains competitive, she said.

Most major Irish retailers see sales rises

With the exception of Tesco, all of the major retailers in Ireland saw increased sales in the past 12 weeks.

Dunnes Stores had the strongest performance, growing sales by 5.9%, attracting an extra 13,000 shoppers to its stores this year with the average spend up nearly €20. Lidl logged the second highest sales growth – 5.8% – mainly due to attracting 55,000 more shoppers. Aldi’s sales grew 3.6% in the latest quarter, with the discounter also recruiting an impressive 37,000 customers versus last year.

SuperValu retained its position as Ireland’s largest retailer, growing its sales by 1.4% and capturing 22.6% of market share. Harrington said SuperValu’s success is largely down to persuading the average shopper to spend an extra €14 per trip, no doubt driven by its ‘Let’s Get Cooking’ campaign.

“Sales remain challenging for Tesco in second place: the retailer saw a decline of 2.7% in the past 12 weeks. It’s not all bad news for Ireland’s number two retailer though, with the number of visits to its stores edging up: from 14 on average last year to 15 this year,” she said.

Source: http://www.kantarworldpanel.com/ie/Press-Releases/Irish-grocery-market-growing-but-uncertain-times-ahead

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Record numbers shop at Lidl in Ireland

The latest supermarket share figures from Kantar Worldpanel in Ireland, published today for the 12 weeks ending 22 May 2016, show a strong sales boost for the grocery market with sales increasing by 4.0% compared with last year.

Kantar Worldpanel’s latest supermarket share figures for – for the 12 weeks to May 22 – show a strong sales boost for the grocery market with sales increasing by 4.0% compared with last year, the global expert in shoppers’ behaviour reports.

Kantar Worldpanel director David Berry said the data shows consumers are making more frequent visits to supermarkets, averaging an additional four trips in the latest 12 weeks compared with last year. “Coupled with increased prices this means that the average household is spending an additional €50 on groceries this year, amounting to an extra €89 million for the market.”

In terms of grocery market share for the latest 12 week period, SuperValu, which enjoyed its tenth consecutive period of growth, was in the lead – for the eighth month in a row – with a 22.7% share of the market. It was closely followed by Tesco with 22.4% and Dunnes with 21.4%. Berry noted Tesco saw its first growth in footfall in 10 periods, “suggesting its investment in keeping prices down may be starting to pay off.”

“Lidl continues to post impressive sales growth as more consumers choose to shop with the retailer – a record 72.4% of all Irish households shopped in a Lidl store in the last quarter, widening the gap between it and rival discounter Aldi. Sales growth for Aldi stands at 2.4% in the latest quarter – a positive step up from the previous results for April and an early sign that sales growth might be starting to improve again,” he said.

 

source: ​Grocery spend continues to rise, record numbers shop at Lidl, 07/06/2016, Kantar Worldpanel Ireland

 

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British grocery market returns to slow growth

New Year health kicks contributed to a strong performance across fresh foods & helped British grocery market return to slow growth.

Sales of fresh fruit and of vegetables have both grown 5% in the British grocery market, according to Kantar Worldpanel grocery share data for the 12 weeks to January 31.

The research firm said consumers had clearly sought a healthier start to the year and in doing so turned to fresh foods – particularly fruit and vegetables.

These New Year health kicks contributed to a strong performance across fresh foods, but the revenue growth from fruit and vegetables – which was shared across both traditional and discount retailers – was particularly significant as both categories are still experiencing like-for-like deflation. Similar growth occurred in nuts, fresh poultry and fish but the overall grocery market’s growth was slight, with a total increase of 0.2%, said head of Retail and Consumer Insight, Fraser McKevitt.

British grocery market share

  • The Co-operative: for the first time since 2011 the Co-operative was the fastest growing non-discounter, increasing sales by 1.4%. The convenience-focused grocer grew its own-label sales by 7%, with sales up fastest in the fresh and chilled part of the store.
  • Sainsbury’s: increased its sales for the sixth period in row, growing by 0.6% with a resulting market share increase of 0.1 percentage points to 16.8%.
  • Tesco: showed signs of improvement – while revenues fell by 1.6% .These are the best numbers posted by the retailer since September of last year.
  • Waitrose: its market share remained static at 5.2%, sales increased by 0.1%. This makes it the 91st consecutive period of growth for the retailer.
  • Discount retailers: Aldi and Lidl: saw their growth accelerate – Lidl to 18.7% and Aldi to 13.7%. Their share of the market increased by 0.7 percentage points, with Lidl’s rising to 4.2% and Aldi’s to 5.6% – a dip from the 10.0% combined market share high they experienced at the end of 2015.
  • Morrisons: the sales decline lessened to 2.2%, while market share fell by 0.3 percentage points to 10.8%.
  • Asda: recent announcement of renewed price cuts has not yet had time to materially affect its latest 12 week figures, with sales falling by 3.8% and share falling back to 16.2%.

Read more at: Health kick contributes to grocery market growth from Kantar Worldpanel

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Ongoing growth in UK berry sales

International Strawberry Symposium 2020: programme for the IX edition published

There’s been strong growth in retail sales of berries in the UK in the past year.

Driven predominantly by shoppers buying berries more often, along with a slight increase in the number of shoppers buying berries, and price inflation, the berries and currants market was worth just over £1 billion from 170,220 tons for the 52 weeks to December 6, 2015, having grown 16.8% in value and 12.8% in volume on the previous year, according to Kantar Worldpanel. The frequency of berry purchasing among berry shoppers rose 10.4% to an average of 18.1 trips with an average of 400g per trip.

Kantar Worlpanel data on berries & currants market

The strawberry market

Strawberries accounted for nearly 71% of all the berries sold in the UK.

The strawberry marked gained 10.9% in value and 8.2% in volume for respective totals of £546.7 million and 119,792 tons. According to Kantar Worldpanel, this growth was predominantly driven by shoppers buying strawberries more often, along with new shoppers and price inflation.

Kantar Worlpanel data on strawberries market

Strong growth in sales of blueberries, raspberries, blackberries

Blueberries, with 28,140 tons sold, accounted for 16.6% of berries sold, with sales worth £257.5 million, value growth of 26.9% and volume growth of 30.5%. This was predominantly driven by more shoppers buying blueberries, along with shoppers buying them more frequently and more per trip, Kantar Worldpanel said.

Worth £197.9 million from 18,358 tons sold, the raspberry market clocked 21.5% in value growth and 23.2% in volume growth. This growth was attributed to new shoppers and shoppers buying raspberries more often.

The blackberry market remains the smallest of the four, with a spend of £30.6 million from 2,786 tons, but enjoyed 20.3% value growth and 6.7% volume growth. “New shoppers and price inflation were key to growth, whilst there was a decline in trip volume,” Kantar Worldpanel said.

I, Prathyush Thomas [GFDL 1.2 (http://www.gnu.org/licenses/old-licenses/fdl-1.2.html) or FAL], via Wikimedia Commons

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Sainsbury’s, Lidl and Aldi gain share in UK grocery market

Kantar use this

“Not much festive chair for supermarkets collectively this month with growth falling to a feeble 0.1%.” That’s how Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, began discussing the company’s latest data on grocery share in the UK, covering  the 12 weeks to December 6.

Furthermore, like-for-like prices had fallen by 1.9% in the previous month, he said.

But in among the gloom, Sainsbury’s was the stand-out performer. It boosted sales by 1.2%, growing across its convenience, supermarket and online businesses and increasing its market share to 16.7%.

Meanwhile it was a familiar story of falling sales and shrinking share for Tesco, Asda and Morrisons, but for Aldi and Lidl, one of double-digit growth and they “are surely looking forward to a record Christmas market share,” McKevitt said.

Listen to his analysis and read more here: http://www.kantarworldpanel.com/en/Press-Releases/Sainsburys-stands-out-in-the-run-up-to-Christmas