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Packaged Food in Australia

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					Packaged Food in Australia

Published:November 2011
Price:US $ 6500




Report Summary

This Euromonitor market report provides market trend and market growth analysis of the
Packaged Food industry in Australia. With this Australia Packaged Food Market report, you‟ll
be able to explore in detail the changing shape and potential of the industry. You will now
be able to plan and build strategy on real industry data and projections.

The Packaged Food in Australia market research report includes:

*   Analysis of key supply-side and demand trends
*   Detailed segmentation of international and local products
*   Historic volumes and values, company and brand market shares
*   Five year forecasts of market trends and market growth
*   Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

* What is the market size of Packaged Food in Australia?
* What are the major brands in Australia?
* As economic prospects slowly improve, are consumers starting to eat out more and
spending less time cooking at home?
* How is private label performing in the wake of retail consolidation and the global economic
hangover?
* Do consumers want value for money or added value?

Why buy this report?

* Gain competitive intelligence about market leaders
* Track key industry trends, opportunities and threats
* Inform your marketing, brand, strategy and market development, sales and supply
functions

This industry report originates from Passport, our Packaged Food market research
database.

*   Each report is delivered with the following components:
*   Report: PDF and Word
*   Market statistics: Excel workbook
*   Sample Analysis
Browse All Food and Beverages Market Research Reports

EXECUTIVE SUMMARY

Retail value sales grow as consumers stay home

The global financial crisis of 2008 and interest rate increases by the Reserve Bank of
Australia in late 2010 lowered consumer confidence and forced people to be more cautious
about spending in 2011. Packaged food, however, displayed resilience as consumers opted
to stay home and eat more frequently. Weaker growth within consumer foodservice in
Australia contributed to positive retail value growth in packaged food in 2011. Consumers
were increasingly appreciative of convenience with 2011 witnessing many innovations
designed to help ease hectic lifestyles accelerated by ongoing urbanisation. Health and
wellness continued to be a key consideration in the decision-making process; however many
shoppers justified cutting back on a certain product as way of economising, but also as a
move towards better health.

Frugal consumers tighten their belts

The key factor in packaged food in 2011 was the emergence of a cut-price retail
environment and frugal consumption. To limit expenditure, consumers have opted to eat at
home more often and to move between private label and brands depending on the usage
occasion. This weakened sales growth in consumer foodservice, but engendered positive
retail volume growth in a number of packaged food categories and retail value growth for
distribution channels associated with lower prices, such as supermarkets/hypermarkets and
discounters. Due to the prevalence of price rollbacks and bulk buy promotions for branded
products, consumers have come to expect substantial discounts on multiple and larger
format purchases. In the absence of such deals many consumers are content to substitute a
branded product with a private label equivalent.

Private label strengthens its foothold in packaged food

Private label and artisanal players lead a fragmented competitive landscape, due largely to
the diverse private label ranges offered by major retail chains such as Coles and Woolworths
and the penetration of in-store supermarket bakeries and chained specialist bakeries in
baked goods. National Foods Pty Ltd and Nestlé Australia Ltd are the two leading branded
players in packaged food, with Kraft Foods Ltd overtaking Fonterra Brands (Australia) Pty
Ltd for third position, following the global acquisition of Cadbury Plc by Kraft Foods Inc in
February 2010.

A tale of two supermarkets

Characterised by heavy concentration, grocery retailing in Australia is dominated by the
duopoly of Coles and Woolworths. The so-called “Big Two” have focused on value for money
in response to rising price sensitivity in the post-recessionary retail environment. However,
their promotional campaigns have shifted, focusing on the deep discounting of staple lines
in 2011, with a fiercely fought price war targeting private label staples such as milk, bread
and meat. Consumers are responding favourably to this development, despite controversy
over the price of milk. The trend towards deep discounting on staples and bulk buy price
promotions is further evidenced by the network expansions of discounters Aldi and Costco in
the review period. Accordingly, supermarkets/hypermarkets and discounters have gained
retail value shares at the expense of forecourt retailers, convenience stores and
independent small grocers.

Consumer confidence remains weak amid economic uncertainty

Global economic uncertainty and weak consumer confidence are expected to prevail in the
short term; this will continue to weaken the demand in consumer foodservice while offering
packaged food players the opportunity to grow retail volume sales. Weak consumer
confidence will see the continued growth of private label‟s retail sales share. As urbanisation
continues across Australia, consumers will continue to seek convenience as well as health
and wellness offerings, providing opportunities for branded players to grow sales in the
forecast period.

Table of Contents

Packaged Food in Australia - Industry Overview

EXECUTIVE SUMMARY
Retail value sales grow as consumers stay home
Frugal consumers tighten their belts
Private label strengthens its foothold in packaged food
A tale of two supermarkets
Consumer confidence remains weak amid economic uncertainty

KEY TRENDS AND DEVELOPMENTS
Household budgets tighten
Consumer demand for convenience drives development
The packaging counts
Battle lines drawn in supermarket price wars
Government and industry cooperate on health and wellness

FOODSERVICE – KEY TRENDS AND DEVELOPMENTS
Headlines
Trends
Competitive Landscape
Prospects

CATEGORY DATA

IMPULSE AND INDULGENCE PRODUCTS – KEY TRENDS AND DEVELOPMENTS
Headlines
Trends
Competitive Landscape
Prospects

CATEGORY DATA

NUTRITION/STAPLES – KEY TRENDS AND DEVELOPMENTS
Headlines
Trends
Competitive Landscape
Prospects

CATEGORY DATA

MEAL SOLUTIONS – KEY TRENDS AND DEVELOPMENTS
Headlines
Trends
Competitive Landscape
Prospects

CATEGORY DATA

MARKET DATA

Table 35 Sales of Packaged Food by Category: Volume 2006-2011

Table 36 Sales of Packaged Food by Category: Value 2006-2011

Table 37 Sales of Packaged Food by Category: % Volume Growth 2006-2011

Table 38 Sales of Packaged Food by Category: % Value Growth 2006-2011

Table 39 GBO Shares of Packaged Food 2006-2010

Table 40 NBO Shares of Packaged Food 2006-2010

Table 41 NBO Brand Shares of Packaged Food 2007-2010

Table 42 Penetration of Private Label by Category 2006-2011

Table 43 Sales of Packaged Food by Distribution Format: % Analysis 2006-2011

Table 44 Sales of Packaged Food by Category and Distribution Format: % Analysis
2011

Table 45 Forecast Sales of Packaged Food by Category: Volume 2011-2016

Table 46 Forecast Sales of Packaged Food by Category: Value 2011-2016

Table 47 Forecast Sales of Packaged Food by Category: % Volume Growth 2011-
2016

Table 48 Forecast Sales of Packaged Food by Category: % Value Growth 2011-
2016

DEFINITIONS

SOURCES
Summary 1 Research Sources
Packaged Food in Australia - Company Profiles
Goodman Fielder Ltd in Packaged Food (Australia)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 4 Goodman Fielder Ltd: Competitive Position 2010
Green's General Foods Pty Ltd in Packaged Food (Australia)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

Summary 6 Green's General Foods Pty Ltd: Production Statistics 2010

COMPETITIVE POSITIONING

Summary 7 Green's General Foods Pty Ltd: Competitive Position 2010
Ingham Enterprises Pty Ltd in Packaged Food (Australia)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 10 Ingham Enterprises Pty Ltd: Competitive Position 2010
Murray Goulburn Co-operative Co Ltd in Packaged Food (Australia)

STRATEGIC DIRECTION

KEY FACTS
COMPANY BACKGROUND

PRODUCTION

Summary 13 Murray Goulburn Co-operative Co Ltd: Production Statistics 2010

COMPETITIVE POSITIONING

Summary 14 Murray Goulburn Co-operative Co Ltd: Competitive Position 2010
P&M Quality Smallgoods Pty Ltd in Packaged Food (Australia)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 17 P&M Quality Smallgoods Pty Ltd: Competitive Position 2010
Patties Foods Ltd in Packaged Food (Australia)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

Summary 20 Patties Foods Ltd: Production Statistics 2010

COMPETITIVE POSITIONING

Summary 21 Patties Foods Ltd: Competitive Position 2010
Sanitarium Health Food Co, The in Packaged Food (Australia)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING
Summary 24 The Sanitarium Health Food Co: Competitive Position 2010
Stuart Alexander & Co Pty Ltd in Packaged Food (Australia)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 27 Stuart Alexander & Co Pty Ltd: Competitive Position 2010
Tassal Group Ltd in Packaged Food (Australia)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

Summary 30 Tassal Group Ltd: Production Statistics 2010

COMPETITIVE POSITIONING

Summary 31 Tassal Group Ltd: Competitive Position 2010
Baby Food in Australia - Category Analysis

HEADLINES

TRENDS

The development of super premium product lines, enhanced offerings of on-the-go snacking
occasions and innovative new packaging contributed to the 6% current value growth
recorded for baby food in 2011. The sector, by comparison, rose 2% in retail volume terms
over the year. Companies such as Rafferty‟s Garden, which almost doubled its share in
2010, epitomise the growing commitment to 100% natural, premium baby food. Organic
brands from Heinz, Rafferty‟s Garden and smaller players such as Only Organic and
Bellamy‟s Organic are gaining in popularity as parents opt to buy only the best for their
babies. With the median ages of parents in Australia currently falling between 30 and 33
years old, baby food shoppers have been observed to be increasingly willing to spend
money on the development of their newborns and toddlers as older parents are more likely
to have a viable financial status.

COMPETITIVE LANDSCAPE

HJ Heinz continues its category lead, despite its market share dropping to 37% in 2010. The
company retains the outright lead in baby food thanks to strong brand equity and presence
across all categories. However, the company faces stiff competition in prepared baby food
from up-and-coming niche manufacturers which focus on natural and organic products, such
as Rafferty‟s Garden. To counter this challenge, the company launched the Heinz Simply
range in October 2010. Containing no preservatives, colours or added salt, the range
includes naturally sweet and savoury fruit, vegetable and grain flavours and textures. The
packaging is furthermore unique, incorporating a convenient microwave-safe pouch with a
spout and child-safe cap designed not to provide a choking hazard for children under three
years old.

PROSPECTS

Toddler snacking categories are anticipated to record the strongest growth over the forecast
period, with liquid toddler milk and other snacks predicted to drive category growth. Liquid
toddler milk formula is expected to post 3% constant value and retail volume CAGRs over
the forecast period, whereas other baby food is forecast to undergo a CAGR of 2% in
constant value terms. HJ Heinz currently dominates the category, with growth driven by the
Little Kids range of mini meals, biscuits, rice cakes, bread sticks, pureed fruit snack and
rice, muesli and fruit bars. Bellamy‟s Organic also has an extensive +12 months range
featuring organic vegetable macaroni, grain or fruit Superbites, fruit snacks and bars and
cheesy tomato grissini. Further category growth is expected in the short- to mid-term in
correlation with generally higher fertility rates and the advanced median age of parents in
Australia.

CATEGORY DATA

Table 49 Sales of Baby Food by Category: Volume 2006-2011

Table 50 Sales of Baby Food by Category: Value 2006-2011

Table 51 Sales of Baby Food by Category: % Volume Growth 2006-2011

Table 52 Sales of Baby Food by Category: % Value Growth 2006-2011

Table 53 Soy-based Vs Dairy-based Special Baby Milk Formula % Breakdown 2010

Table 54 Baby Food Company Shares 2006-2010

Table 55 Baby Food Brand Shares 2007-2010

Table 56 Sales of Baby Food by Distribution Format: % Analysis 2006-2011

Table 57 Forecast Sales of Baby Food by Category: Volume 2011-2016

Table 58 Forecast Sales of Baby Food by Category: Value 2011-2016

Table 59 Forecast Sales of Baby Food by Category: % Volume Growth 2011-2016

Table 60 Forecast Sales of Baby Food by Category: % Value Growth 2011-2016

Baked Goods in Australia - Category Analysis
HEADLINES

TRENDS

There has been a price war between major supermarket chains Coles and Woolworths since
the introduction of home brand milk at A$1 per litre in late January 2011. Bread proved to
be the next staple to have its prices slashed, with private label bread products being sold for
as little as A$1 a loaf.

COMPETITIVE LANDSCAPE

The prominence of unpackaged baked goods is highlighted by the fact that artisanal
producers recorded a retail value share of 64% in 2010. These include in-store bakeries and
large specialty bread chains such as market leaders Baker‟s Delight and Brumby‟s. Baker‟s
Delight recently earned the title of „Australia‟s Most Successful Bakery Franchise‟ and Retail
Food Group, the owner of Brumby‟s, Donut King and Michel‟s Patisserie, continued to record
an increase in average weekly sales per outlet and average transaction value in 2010.

PROSPECTS

Baked goods has a projected forecast period CAGR of 3% in constant retail value terms and
1% in retail volume terms whilst bread has a constant retail value CAGR of 4%, with
packaged and industrial bread forecast to register slightly higher value growth yet
fractionally lower volume growth than unpackaged and artisanal bread as the size and scope
of in-store bakeries continues to expand.

CATEGORY DATA

Table 61 Sales of Baked Goods by Category: Volume 2006-2011

Table 62 Sales of Baked Goods by Category: Value 2006-2011

Table 63 Sales of Baked Goods by Category: % Volume Growth 2006-2011

Table 64 Sales of Baked Goods by Category: % Value Growth 2006-2011

Table 65 Packaged/Industrial Bread by Type: % Value Breakdown 2006-2011

Table 66 Packaged/Industrial Cakes: Single Portion vs Multi-pack % Breakdown
by Type 2006-2011

Table 67 Baked Goods Company Shares 2006-2010

Table 68 Baked Goods Brand Shares 2007-2010

Table 69 Sales of Baked Goods by Distribution Format: % Analysis 2006-2011

Table 70 Forecast Sales of Baked Goods by Category: Volume 2011-2016

Table 71 Forecast Sales of Baked Goods by Category: Value 2011-2016
Table 72 Forecast Sales of Baked Goods by Category: % Volume Growth 2011-
2016

Table 73 Forecast Sales of Baked Goods by Category: % Value Growth 2011-2016

Biscuits in Australia - Category Analysis

HEADLINES

TRENDS

Irrespective of the perception of a strong national financial position and robust labour
market, Australian consumers continue to display cautionary behaviour. Private label range
extensions proved popular amongst value-conscious consumers as a post-recessionary
measure to curb household expenditure, particularly more premium private label lines that
closely imitate leading branded products. However, in 2011 producers engaged in extensive
price discounting in order to ensure that branded offerings remained attractive to thrifty
consumers.

COMPETITIVE LANDSCAPE

Arnott‟s continued to lead biscuit sales in 2010, recording a retail value share of 68%. The
company is represented in all areas and enjoys strong brand equity in Australia as a
domestic manufacturer with a legacy dating back to 1865. Campbell Soup has owned the
company since 1997.

PROSPECTS

Biscuits has a steady projected forecast period CAGR of 1% in both constant retail value and
retail volume terms.

CATEGORY DATA

Table 74 Sales of Biscuits by Category: Volume 2006-2011

Table 75 Sales of Biscuits by Category: Value 2006-2011

Table 76 Sales of Biscuits by Category: % Volume Growth 2006-2011

Table 77 Sales of Biscuits by Category: % Value Growth 2006-2011

Table 78 Biscuits Company Shares 2006-2010

Table 79 Biscuits Brand Shares 2007-2010

Table 80 Sales of Biscuits by Distribution Format: % Analysis 2006-2011

Table 81 Forecast Sales of Biscuits by Category: Volume 2011-2016

Table 82 Forecast Sales of Biscuits by Category: Value 2011-2016
Table 83 Forecast Sales of Biscuits by Category: % Volume Growth 2011-2016

Table 84 Forecast Sales of Biscuits by Category: % Value Growth 2011-2016

Breakfast Cereals in Australia - Category Analysis

HEADLINES

TRENDS

Key drivers for breakfast cereals have long been health and convenience. However, in 2011
consumers increasingly responded to “natural” new product developments. As breakfast is
widely regarded as one of the most important meals of the day, there is increased attention
on making the occasion as beneficial as possible. RTE cereals that provide a higher share of
daily fibre requirements and additional omega-3 and protein continue to increase in
popularity. Ranges from Uncle Toby‟s Plus, Goodness Superfoods and the recently-released
Sunsol Toasted & Natural Oats premium line epitomise the trend towards cereals that
deliver a specific nutritional or functional benefit.

COMPETITIVE LANDSCAPE

Kellogg continues to dominate breakfast cereals, accounting for 47% of retail value sales in
2010. Seven of the top ten breakfast cereals in Australia are Kellogg brands: Nutri-Grain,
Special K, Just Right, Sultana Bran, Coco Pops, Corn Flakes and All Bran. The company
focuses its marketing activities and product development on health and wellness lines. New
releases for 2011 include Kellogg‟s All-Bran Apple Crunch, Just Right Clusters and 5 Grain,
Mixed Berry Mini-Wheats and Be Natural cereals and porridge. Kellogg‟s Sultana Bran Buds
was voted best cereal at the 2011 Product of the Year awards, an annual product innovation
award based on consumer polling. Kellogg‟s Sultana Bran Buds are high in fibre, containing
nearly six grams in each serving - about one-third of a child‟s daily fibre needs.

PROSPECTS

Breakfast cereals has a projected forecast period constant retail value CAGR of 2%, with
muesli and hot cereals expected to fuel growth as consumers increasingly trade-up to more
premium and nutritious options.

CATEGORY DATA

Table 85 Sales of Breakfast Cereals by Category: Volume 2006-2011

Table 86 Sales of Breakfast Cereals by Category: Value 2006-2011

Table 87 Sales of Breakfast Cereals by Category: % Volume Growth 2006-2011

Table 88 Sales of Breakfast Cereals by Category: % Value Growth 2006-2011

Table 89 Breakfast Cereals Company Shares 2006-2010

Table 90 Breakfast Cereals Brand Shares 2007-2010
Table 91 Sales of Breakfast Cereals by Distribution Format: % Analysis 2006-2011

Table 92 Forecast Sales of Breakfast Cereals by Category: Volume 2011-2016

Table 93 Forecast Sales of Breakfast Cereals by Category: Value 2011-2016

Table 94 Forecast Sales of Breakfast Cereals by Category: % Volume Growth 2011-
2016

Table 95 Forecast Sales of Breakfast Cereals by Category: % Value Growth 2011-
2016

Canned/Preserved Food in Australia - Category Analysis

HEADLINES

TRENDS

Home cooking was a key driver in canned processed food in 2011. The category grew by
2% in 2011 as it offers convenient and healthy meal components used in home-prepared
meals. Value growth was seen in tomatoes, beans, meat and fruit, with 3%, 4%, 15% and
3% current value growth, respectively. However, commoditisation, promotional activity and
strong private label competition saw fish/seafood and pasta both record slight declines in
current value terms.

COMPETITIVE LANDSCAPE

HJ Heinz Company Australia Pty Ltd is the largest player in canned food in Australia with a
value share of 20%. The company is well represented in a wide variety of canned food
categories. The company offers canned varieties of beans, fish/seafood, meat and fruit. HJ
Heinz Company Australia Pty Ltd should see its share grow over the forecast period due to
its presence in the fast-growing canned chicken area of canned meat and investment in
promoting increased brand awareness. HJ Heinz Company Australia Pty Ltd launched a
AU$4 million advertising campaign in 2011 through print media, television, and in-store
promotion in order to increase sales and market share.

PROSPECTS

Canned meat is expected to see strong growth over the forecast period (CAGR 4%).
Traditional canned meat offerings such as corned beef and ham will continue to decline at
around -1% in value terms due to a consumer preference for buying fresh ham rather than
shelf stable canned ham, with canned chicken the growth driver. Canned chicken will grow
in popularity and household penetration as the product is a conveniently packaged source of
protein, and is available from sustainable sources. As fish stocks continue to dwindle,
canned fish prices will eventually rise. As sustainability becomes an increasingly important
issue in canned fish/seafood, consumers will switch to more sustainable sources of protein,
such as canned chicken.

CATEGORY DATA

Table 96 Sales of Canned/Preserved Food by Category: Volume 2006-2011
Table 97 Sales of Canned/Preserved Food by Category: Value 2006-2011

Table 98 Sales of Canned/Preserved Food by Category: % Volume Growth 2006-
2011

Table 99 Sales of Canned/Preserved Food by Category: % Value Growth 2006-
2011

Table 100 Canned/Preserved Food Company Shares 2006-2010

Table 101 Canned/Preserved Food Brand Shares 2007-2010

Table 102 Sales of Canned/Preserved Food by Distribution Format: % Analysis
2006-2011

Table 103 Forecast Sales of Canned/Preserved Food by Category: Volume 2011-
2016

Table 104 Forecast Sales of Canned/Preserved Food by Category: Value 2011-
2016

Table 105 Forecast Sales of Canned/Preserved Food by Category: % Volume
Growth 2011-2016

Table 106 Forecast Sales of Canned/Preserved Food by Category: % Value Growth
2011-2016

Summary 32 Other Canned/Preserved Food: Product Types
Cheese in Australia - Category Analysis

HEADLINES

TRENDS

Australian consumers are becoming increasingly sophisticated in their cheese choices and
are moreover educated as to the usage of a certain cheese for a particular occasion. Both
informed and creative, consumers are incorporating the use of different cheeses for lunches,
aperitifs, salads, baked dishes (for both mains and desserts), and more traditional cheese
platters. While cheddar cheese varieties remain the overwhelming preference for cheese
purchases, with a 60% market value share, the shift away from cheddar to non-cheddar
varieties is evident in 2011. Within cheddar varieties, there is furthermore a preference for
stronger flavoured cheese, as indicated by the shelf space dominance of tasty cheddar at
the expense of milder cheddar types. Premium entertaining cheeses and cooking brands
have proven once again popular as the so-called “MasterChef effect” continues and
consumers try to emulated celebrity television chefs by cooking and entertaining at home.

COMPETITIVE LANDSCAPE

Fonterra Brands slightly increased its market share in 2010, continuing to lead the category
with 39% of total value sales. The company owns several leading brands in cheese,
including the long-term category leaders, Mainland and Bega. Perfect Italiano has emerged
as one of Fonterra‟s strongest performing brands, due to the recent interest generated in
culinary cheeses, the brand‟s sponsorship of the 2011 season of the MasterChef Australia
television show and the “Perfect Man” advertising campaign. The Perfect Italiano range
includes parmesan, romano, mozzarella, grated cheese blends and ricotta.

PROSPECTS

Cheese is expected to post a 2% constant value CAGR from 2011 to 2016. Consumption
growth is expected to remain moderate, with an anticipated 1% retail volume CAGR over
this forecast period. This indicates a continuation of the trend in which quality is deemed a
higher priority than quantity. Australians will nonetheless remain avid consumers of cheese,
given that Australia is a dairy producing country and a wide variety of quality brands and
cheese products are available. The interest in cheese among Australian consumers will
develop further over the forecast period as they will become ever more adventurous in
terms of trying new flavours and textures of cheese.

CATEGORY DATA

Table 107 Sales of Cheese by Category: Volume 2006-2011

Table 108 Sales of Cheese by Category: Value 2006-2011

Table 109 Sales of Cheese by Category: % Volume Growth 2006-2011

Table 110 Sales of Cheese by Category: % Value Growth 2006-2011

Table 111 Spreadable Processed Cheese by Type: % Value Breakdown 2006-2011

Table 112 Unprocessed Cheese by Type: % Value Breakdown 2009-2010

Table 113 Cheese Company Shares 2006-2010

Table 114 Cheese Brand Shares 2007-2010

Table 115 Sales of Cheese by Distribution Format: % Analysis 2006-2011

Table 116 Forecast Sales of Cheese by Category: Volume 2011-2016

Table 117 Forecast Sales of Cheese by Category: Value 2011-2016

Table 118 Forecast Sales of Cheese by Category: % Volume Growth 2011-2016

Table 119 Forecast Sales of Cheese by Category: % Value Growth 2011-2016

Chilled Processed Food in Australia - Category Analysis

HEADLINES

TRENDS
Chilled processed food grew by 8% in value terms in 2011 to AU$1.3 billion. The category
benefited from the growing popularity of home cooking and from having a healthy and more
natural image among shoppers compared to frozen or dried processed foods.

COMPETITIVE LANDSCAPE

P&M Quality Smallgoods Pty Ltd is the leader in chilled processed food. The company has a
share of 24% in value terms. In March 2009 P&M Quality Smallgoods Pty Ltd acquired Hans
Continental Pty Ltd following ACCC consent. This move further consolidated the chilled
processed meat category as, in 2008, George Western Foods Ltd acquired Castlemaine KR
Foods. P&M Quality Smallgoods Pty Ltd is looking to conform to market trends by offering
health and wellness-differentiated products. The company feels salt reduction and fat
reduction are important developments and launched a fat-reduced salami in 2009. The
product has performed strongly. P&M Quality Smallgoods Pty Ltd have broad distribution
through major supermarkets, a wide variety of chilled meat offerings, and trusted brand
names in the form of Primo and Hans.

PROSPECTS

Chilled processed food is expected to see 12% constant value growth over the forecast
period. The category will continue to benefit from an image of greater freshness and higher
nutritional value compared to dried processed food. Chilled processed food will face
increasing competition from frozen food, however, as consumers become increasingly aware
of the nutritional value found in frozen food following developments in that category‟s
freezing processes. Consumers will also be attracted by the greater convenience of frozen
food, which can be stored for longer in a home freezer.

CATEGORY DATA

Table 120 Sales of Chilled Processed Food by Category: Volume 2006-2011

Table 121 Sales of Chilled Processed Food by Category: Value 2006-2011

Table 122 Sales of Chilled Processed Food by Category: % Volume Growth 2006-
2011

Table 123 Sales of Chilled Processed Food by Category: % Value Growth 2006-
2011

Table 124 Chilled Processed Meat by Type: % Value Breakdown 2006-2011

Table 125 Chilled Processed Meat: % Share of Chilled Meat Substitute 2006-2011

Table 126 Chilled Processed Food Company Shares 2006-2010

Table 127 Chilled Processed Food Brand Shares 2007-2010

Table 128 Sales of Chilled Processed Food by Distribution Format: % Analysis
2006-2011

Table 129 Forecast Sales of Chilled Processed Food by Category: Volume 2011-
2016

Table 130 Forecast Sales of Chilled Processed Food by Category: Value 2011-2016

Table 131 Forecast Sales of Chilled Processed Food by Category: % Volume
Growth 2011-2016

Table 132 Forecast Sales of Chilled Processed Food by Category: % Value Growth
2011-2016

Chocolate Confectionery in Australia - Category Analysis

HEADLINES

TRENDS

Fairtrade Certified chocolate continues to increase in popularity, with the Cadbury‟s Dairy
Milk and Whittaker‟s large Creamy Milk blocks brands both recently announcing that they
will use such chocolate. Indeed, chocolate took over from coffee as Australia‟s strongest
selling Fairtrade Certified product in 2010, with retail sales increasing by an estimated
1,500% according to The Fair Trade Association of Australia and New Zealand. In response,
an increased number of both private label and branded Fairtrade Certified chocolate
offerings were launched during the year. In addition, Nestlé launched its sustainable Kit Kat
plan which aims for the production of its entire Kit Kat range to be based on UTZ Certified
cocoa in 2011 as part of the Nestlé Cocoa Plan - a A$121 million (CHF110 million)
investment to improve cocoa industry sustainability that was launched in October 2009.
Also, Mars announced in May 2011 that it would follow suit and source enough Rainforest
Alliance Certified cocoa to cover Mars Bar production, thereby enabling bars to feature the
Rainforest Alliance tree frog logo. Mars hopes to have its full range certified as being
sustainably produced before its 2020 deadline.

COMPETITIVE LANDSCAPE

The global acquisition of Cadbury Plc by Kraft Foods Inc in February 2010 resulted in a
significant increase in sales share for Kraft within chocolate confectionery. Cadbury,
Australia‟s leading confectionery maker, continued to gain accolades, including the Reader‟s
Digest Most Trusted Food Brand in 2010, as well as Fairtrade accreditation for the brand‟s
flagship Dairy Milk range. Kraft Foods Ltd thus led chocolate confectionary sales in 2010,
recording a retail value share of 40%.

PROSPECTS

Chocolate confectionary has a projected forecast period constant retail value CAGR of 2%
and a retail volume CAGR of 1% due to rising demand from consumers for affordable
luxuries. Both standard boxed assortments and twist wrapped miniatures are expected to
lead the way in value and volume terms over the forecast period.

CATEGORY DATA

Table 133 Sales of Chocolate Confectionery by Category: Volume 2006-2011
Table 134 Sales of Chocolate Confectionery by Category: Value 2006-2011

Table 135 Sales of Chocolate Confectionery by Category: % Volume Growth 2006-
2011

Table 136 Sales of Chocolate Confectionery by Category: % Value Growth 2006-
2011

Table 137 Chocolate Tablets by Type: % Value Breakdown 2006-2011

Table 138 Chocolate Confectionery Company Shares 2006-2010

Table 139 Chocolate Confectionery Brand Shares 2007-2010

Table 140 Sales of Chocolate Confectionery by Distribution Format: % Analysis
2006-2011

Table 141 Forecast Sales of Chocolate Confectionery by Category: Volume 2011-
2016

Table 142 Forecast Sales of Chocolate Confectionery by Category: Value 2011-
2016

Table 143 Forecast Sales of Chocolate Confectionery by Category: % Volume
Growth 2011-2016

Table 144 Forecast Sales of Chocolate Confectionery by Category: % Value Growth
2011-2016

Dried Processed Food in Australia - Category Analysis

HEADLINES

TRENDS

Dried processed food is benefiting from increased urbanisation in Australia. The category
grew by 4% in value terms over 2011 to AU$1 billion as time-poor consumers appreciated
the convenience of dried processed food. Dried food offers consumers convenience through
easy storage, low unit prices compared to chilled/fresh offerings and, in the case of dried
ready meals and soups, a short preparation time.

COMPETITIVE LANDSCAPE

San Remo Macaroni Company Pty Ltd was the number one player in dried food in 2010 with
a value share of 21%. The company benefits from Australian provenance as consumers are
increasingly determined to purchase locally-grown produce from locally-owned companies.
The company has moved into product areas with greater added value by offering dried
ready meals. Within dried processed food the company now offers dried ready meals,
instant noodles and dried pasta. The company is seeing good value share growth within
each of these growing categories.
PROSPECTS

The popularity of home cooking and home baking in particular will continue to grow over the
forecast period. The dessert mixes category is expected to see 4% growth (1% CAGR) in
constant value terms in 2011-2016. Innovation and new product developments centred
around health and wellness, convenience and improved quality will drive this growth. Dried
pasta, plain noodles and rice will each see CAGRs of 1% in constant value terms as
consumers increasingly use these staple carbohydrates in home cooking.

CATEGORY DATA

Table 145 Sales of Dried Processed Food by Category: Volume 2006-2011

Table 146 Sales of Dried Processed Food by Category: Value 2006-2011

Table 147 Sales of Dried Processed Food by Category: % Volume Growth 2006-
2011

Table 148 Sales of Dried Processed Food by Category: % Value Growth 2006-2011

Table 149 Dried Processed Food Company Shares 2006-2010

Table 150 Dried Processed Food Brand Shares 2007-2010

Table 151 Sales of Dried Processed Food by Distribution Format: % Analysis 2006-
2011

Table 152 Forecast Sales of Dried Processed Food by Category: Volume 2011-2016

Table 153 Forecast Sales of Dried Processed Food by Category: Value 2011-2016

Table 154 Forecast Sales of Dried Processed Food by Category: % Volume Growth
2011-2016

Table 155 Forecast Sales of Dried Processed Food by Category: % Value Growth
2011-2016

Drinking Milk Products in Australia - Category Analysis

HEADLINES

TRENDS

In an effort to re-establish its competitive viability against rival supermarket chain
Woolworths and appeal to budget-conscious consumers, Coles announced that it would cut
the price of its generic milk to A$1 per litre as of 26 January 2011. Coinciding with a
national holiday, the announcement launched a subsequent price war, during which the
prices of house brand staples such as milk, bread and meat have been pushed down.
Previously, the two major supermarkets sold their private label milk for about A$1.20 a litre
and branded milk for A$1.75 a litre. While Coles and Woolworths have agreed to absorb the
full cost of the price reduction, there is no specific timeframe for this commitment. Dairy
Australia estimates this figure could total A$30 million annually for Coles alone.

COMPETITIVE LANDSCAPE

National Foods leads the drinking milk products category in 2010 with a 34% value share of
drinking milk products. The company is responsible for the two largest brands in
fresh/pasteurised milk, Pura and Dairy Farmers, and Big M, Moove and Masters in flavoured
milk drinks. The company reported challenging times in the dairy sector in 2010, with
margin pressure as a result of deep discounting on private label impacting on farmers,
processors and volume sales of branded white drinking milk.

PROSPECTS

While private label full-fat fresh/pasteurised drinking milk is expected to be used as a loss
leader, sold at a low price to attract customers into the major supermarkets, the price of
modified milk is anticipated to rise over the forecast period to counter the deep discounting
of the “milk wars.” Any move by the major milk companies to compete on the price of full
cream milk will impact on the price of regular skim and light milk products, as well as the
more niche market fortified or functional milk types, in order to safeguard their margins to
some extent.

CATEGORY DATA

Table 156 Sales of Drinking Milk Products by Category: Volume 2006-2011

Table 157 Sales of Drinking Milk Products by Category: Value 2006-2011

Table 158 Sales of Drinking Milk Products by Category: % Volume Growth 2006-
2011

Table 159 Sales of Drinking Milk Products by Category: % Value Growth 2006-
2011

Table 160 Chilled Vs Ambient Flavoured Milk Drinks: % Volume Analysis 2007-
2010

Table 161 Milk by Type: % Value Breakdown 2007-2010

Table 162 Drinking Milk Products Company Shares 2006-2010

Table 163 Drinking Milk Products Brand Shares 2007-2010

Table 164 Sales of Drinking Milk Products by Distribution Format: % Analysis
2006-2011

Table 165 Forecast Sales of Drinking Milk Products Products by Category: Volume
2011-2016

Table 166 Forecast Sales of Drinking Milk Products Products by Category: Value
2011-2016
Table 167 Forecast Sales of Drinking Milk Products Products by Category: %
Volume Growth 2011-2016

Table 168 Forecast Sales of Drinking Milk Products Products by Category: % Value
Growth 2011-2016

Frozen Processed Food in Australia - Category Analysis

HEADLINES

TRENDS

Health and wellness drove development in frozen food in 2011. Consumers‟ relationship
with frozen food has matured to the point where many now seek healthier frozen food
options. Many frozen food products now have the heart foundation tick, such as McCain‟s
frozen ready meals and vegetables. Another health and wellness development was steaming
technology, which was introduced over the review period. This was seen as a healthy and
convenient development, offering a cooking technique that traps in the nutrients and
enables shorter cooking times. The technology in now present in some Simplot and Heinz
offerings.

COMPETITIVE LANDSCAPE

McCain Foods (Aust) Pty Ltd was a clear leader in frozen processed food in 2010, accounting
for a 24% value share. The company benefits from being the dominant player in the
dynamic frozen pizza category, while leading sales of frozen ready meals and frozen
processed potatoes and ranking second in frozen processed vegetables. The company
invests heavily in promoting its range, stressing the nutritional and indulgence benefits
offered by its products. It also benefits from a strong reputation for quality, particularly for
its premium health and wellness range Healthy Choice. As a result of its strong advertising
support and healthy positioning, along with its well-placed range in terms of product area,
the company saw the strongest value share growth in 2009 over the previous year, gaining
almost half a percentage point.

PROSPECTS

Health and wellness concerns will continue to influence frozen food over the forecast period.
As more health and wellness-orientated products are available on the market, and increased
awareness of the benefits of healthy eating is seen among consumers, the trend will be
reinforced. Fruit, vegetables, fish/seafood, and ready meals will see good growth due to the
products being perceived as healthy or bearing the heart foundation tick. In the case of
pizza, ready meals, and potato products, continued sodium and fat reduction and
cholesterol-free provenance will be seen in new product developments over the forecast
period.

CATEGORY DATA

Table 169 Sales of Frozen Processed Food by Category: Volume 2006-2011

Table 170 Sales of Frozen Processed Food by Category: Value 2006-2011
Table 171 Sales of Frozen Processed Food by Category: % Volume Growth 2006-
2011

Table 172 Sales of Frozen Processed Food by Category: % Value Growth 2006-
2011

Table 173 Frozen Processed Fish/Seafood by Type: % Value Breakdown 2006-
2011

Table 174 Frozen Processed Poultry by Type: % Value Breakdown 2006-2011

Table 175 Frozen Processed Red Meat by Type: % Value Breakdown 2006-2011

Table 176 Frozen Processed Vegetables by Type: % Value Breakdown 2006-2011

Table 177 Other Frozen Processed Food by Type: % Value Breakdown 2006-2011

Table 178 Frozen Processed Food Company Shares 2006-2010

Table 179 Frozen Processed Food Brand Shares 2007-2010

Table 180 Sales of Frozen Processed Food by Distribution Format: % Analysis
2006-2011

Table 181 Forecast Sales of Frozen Processed Food by Category: Volume 2011-
2016

Table 182 Forecast Sales of Frozen Processed Food by Category: Value 2011-2016

Table 183 Forecast Sales of Frozen Processed Food by Category: % Volume
Growth 2011-2016

Table 184 Forecast Sales of Frozen Processed Food by Category: % Value Growth
2011-2016

Summary 33 Other Frozen Processed Food: Product Types
Gum in Australia - Category Analysis

HEADLINES

TRENDS

The significant growth recorded by Wrigley‟s 5 sugar-free gum range is the main trend
during 2011. Cobalt (Peppermint), Electro (Spearmint) and Pulse (Tropical) were launched
in Australia in June 2009 and the range was extended to include Tempest (Watermelon) in
2010 and bubble gum variant Zing in September 2010 while more recent developments
include a mixed fruit and mixed mint flavour, React, in March 2011 and the discontinuation
of Pulse (Tropical) in May 2011. The limited edition 5X Mutant (Blueberry) was also
launched in 2011 in order to coincide with the release of the film X-Men: First Class.

COMPETITIVE LANDSCAPE
Wrigley dominated gum in 2010, accounting for some 96% of gum retail value sales.
Despite the fact that this figure represents a slight decline from 2009, Wrigley continues to
drive growth due to key new product developments within the sugar-free, functional and
bubble gum areas.

PROSPECTS

Gum has a moderate projected forecast period CAGR of 1% in both constant retail value
and retail volume terms.

CATEGORY DATA

Table 185 Sales of Gum by Category: Volume 2006-2011

Table 186 Sales of Gum by Category: Value 2006-2011

Table 187 Sales of Gum by Category: % Volume Growth 2006-2011

Table 188 Sales of Gum by Category: % Value Growth 2006-2011

Table 189 Leading Flavours for Gum 2006-2011

Table 190 Gum Company Shares 2006-2010

Table 191 Gum Brand Shares 2007-2010

Table 192 Sales of Gum by Distribution Format: % Analysis 2006-2011

Table 193 Forecast Sales of Gum by Category: Volume 2011-2016

Table 194 Forecast Sales of Gum by Category: Value 2011-2016

Table 195 Forecast Sales of Gum by Category: % Volume Growth 2011-2016

Table 196 Forecast Sales of Gum by Category: % Value Growth 2011-2016

Ice Cream in Australia - Category Analysis

HEADLINES

TRENDS

The trend towards cautionary consumer behaviour, despite the strong national financial
position and solid labour market, was notable in many categories of packaged food in
Australia throughout 2011, although it is manifesting in varied forms. While other categories
evidence this trend through the purchase of private label products, ice cream has instead
demonstrated a move towards take-home formats at the expense of impulse formats. The
growth of multi-pack dairy ice cream of 10% in current value terms and 6% in retail volume
is largely attributed to the perception of multi-packs as better value-for-money for
Australia‟s favourite brands, such as Streets Magnum, Cornetto, Paddle Pop and Golden
Gaytime from Unilever and Peters Drumstick, Heaven, and Maxibon from Nestlé. By
comparison, impulse ice cream recorded 4% growth in current value terms and 2% in retail
volume.

COMPETITIVE LANDSCAPE

Unilever retains its lead in ice cream with a value share of 34% in 2010. The company has a
strong presence in impulse ice cream, take-home multi-packs, bulk dairy ice cream and ice
cream desserts through the Streets range of Magnum, Paddle Pop, Cornetto, Calippo, Blue
Ribbon and Viennetta. Unilever supports these brands but particularly its impulse ice cream
brands, through a high level of product innovation and advertising support.

PROSPECTS

Constrained consumer spending is likely in the short- to mid-term as economic pessimism
prevails. Ice cream is thus expected to register modest growth over the forecast period,
with 2% constant value and 1% volume CAGRs predicted, despite the integral role that ice
cream plays in Australian day-to-day life.

CATEGORY DATA

Table 197 Sales of Ice Cream by Category: Volume 2006-2011

Table 198 Sales of Ice Cream by Category: Value 2006-2011

Table 199 Sales of Ice Cream by Category: % Volume Growth 2006-2011

Table 200 Sales of Ice Cream by Category: % Value Growth 2006-2011

Table 201 Leading Flavours for Ice Cream 2006-2011

Table 202 Ice Cream Company Shares 2006-2010

Table 203 Ice Cream Brand Shares 2007-2010

Table 204 Impulse Ice Cream Company Shares 2006-2010

Table 205 Impulse Ice Cream Brand Shares 2007-2010

Table 206 Take-home Ice Cream Company Shares 2006-2010

Table 207 Take-home Ice Cream Brand Shares 2007-2010

Table 208 Sales of Ice Cream by Distribution Format: % Analysis 2006-2011

Table 209 Forecast Sales of Ice Cream by Category: Volume 2011-2016

Table 210 Forecast Sales of Ice Cream by Category: Value 2011-2016

Table 211 Forecast Sales of Ice Cream by Category: % Volume Growth 2011-2016
Table 212 Forecast Sales of Ice Cream by Category: % Value Growth 2011-2016

Meal Replacement in Australia - Category Analysis

HEADLINES

TRENDS

Convenience is key to growth within meal replacement products, with slimming ready-to-
drink (RTD) beverages and bars benefitting from the ease and portability of single-serve
packaging and distribution through supermarkets and hypermarkets. Consumers reacted
positively to price competition within major supermarkets, especially as the cost per serving
of RTD slimming beverages is higher than that of concentrates. The bulk purchasing of
powdered meal replacement slimming products also entails a significant initial outlay and
consumers are thus willing to shop around for the lowest prices, as indicated by the
increasing distribution share of supermarkets and hypermarkets.

COMPETITIVE LANDSCAPE

During 2010, meal replacement sales were led by Tony Ferguson Ip, a pharmacy-based
slimming products manufacturer which recorded a retail value share of 25%. The company‟s
products were formulated by a pharmacist in 2004 and are available in various formats
including powder concentrates for shakes and soups, RTD beverages and bars. The Tony
Ferguson brand is distributed exclusively through concept stores and Terry White Chemists.

PROSPECTS

Meal replacement has a projected forecast period CAGR of 7% in constant retail value terms
and 6% in retail volume terms. Growth will be driven by continuing interest in weight loss
thanks to the significant prevalence of obesity in Australia, with reportedly more than a
quarter of all adults being obese. Obesity will also be a key area of focus for the National
Preventative Health Taskforce for the tackling of chronic disease over the coming years.

CATEGORY DATA

Table 213 Sales of Meal Replacement by Category: Volume 2006-2011

Table 214 Sales of Meal Replacement by Category: Value 2006-2011

Table 215 Sales of Meal Replacement by Category: % Volume Growth 2006-2011

Table 216 Sales of Meal Replacement by Category: % Value Growth 2006-2011

Table 217 Meal Replacement Slimming by Type: % Value Breakdown 2006-2011

Table 218 Meal Replacement Company Shares 2006-2010

Table 219 Meal Replacement Brand Shares 2007-2010

Table 220 Sales of Meal Replacement by Distribution Format: % Analysis 2006-
2011
Table 221 Forecast Sales of Meal Replacement by Category: Volume 2011-2016

Table 222 Forecast Sales of Meal Replacement by Category: Value 2011-2016

Table 223 Forecast Sales of Meal Replacement by Category: % Volume Growth
2011-2016

Table 224 Forecast Sales of Meal Replacement by Category: % Value Growth 2011-
2016

Noodles in Australia - Category Analysis

HEADLINES

TRENDS

Two trends influenced noodles in Australia in 2011. Firstly, a growing interest in Asian
cuisine in Australia and secondly, a desire for convenience. These two influences, plus
continued movement away from foodservice towards preparing food at home, saw noodle
value increase by 3% in 2011 to reach A$231 million.

COMPETITIVE LANDSCAPE

San Remo Macaroni, owners of the Fantastic brand of noodles, is the leading player in
Australian noodles. The Fantastic range had a 30% value share of noodles in 2010. The
company benefits from broad retail distribution and offering a wide variety of products
including plain, instant, and chilled noodles.

PROSPECTS

The health and wellness trend will increasingly influence Australian noodles over the
forecast period. Organic and gluten free noodles will become more popular, especially in
plain noodles and chilled noodles. In pouch instant noodles, salt reduction and reduced fat
offerings, like those offered in the Fantastic brand in 2011 with its Low Fat Cup range, will
grow in popularity.

CATEGORY DATA

Table 225 Sales of Noodles by Category: Volume 2006-2011

Table 226 Sales of Noodles by Category: Value 2006-2011

Table 227 Sales of Noodles by Category: % Volume Growth 2006-2011

Table 228 Sales of Noodles by Category: % Value Growth 2006-2011

Table 229 Leading Instant Noodle Flavours 2006-2011

Table 230 Noodles Company Shares 2006-2010
Table 231 Noodles Brand Shares 2007-2010

Table 232 Sales of Noodles by Distribution Format: % Analysis 2006-2011

Table 233 Forecast Sales of Noodles by Category: Volume 2011-2016

Table 234 Forecast Sales of Noodles by Category: Value 2011-2016

Table 235 Forecast Sales of Noodles by Category: % Volume Growth 2011-2016

Table 236 Forecast Sales of Noodles by Category: % Value Growth 2011-2016

Oils and Fats in Australia - Category Analysis

HEADLINES

TRENDS

While Australian consumers are no strangers to televised cooking shows, the recent cooking
show phenomenon is directly credited with the 5% current value and 4% retail volume
growth registered by oils and fats in 2011. The surge of interest in cooking shows such as
MasterChef Australia has increased awareness of the qualities of ingredients such as extra
virgin olive oil and butter. Cooking at home resonates with consumers for health and
money-saving reasons, as well as providing the chance for aspiring amateur chefs to
emulate their idols.

COMPETITIVE LANDSCAPE

Goodman Fielder continues to lead in oils and fats in Australia in 2010, with 19% of total
retail value sales. The company‟s presence in the category is at its strongest in spreadable
oils and fats (both regular and functional), vegetable and seed oil, and cooking fats through
brands such as Meadow Lea, Logicol, Crisco and Olive Grove. On the commercial oils and
fats front, November 2010 saw Goodman Fielder and Cargill Australia formally terminate the
agreed sale of Goodman Fielder‟s Commercial Edible Fats and Oils business to Cargill. The
move followed the Australian Competition and Consumer Commission opposing the A$240
million deal in March, as it would lead to a, “significant concentration of refining assets in
Australia”.

PROSPECTS

While dairy spreads have faced negative press in the past due to their content of butter and
cream, and thus saturated fats, future prospects look more positive as consumers display a
growing preference for natural and authentic ingredients to make more traditional-style
dishes for family and friends. Butter is anticipated to post a 3% constant value CAGR and
2% volume CAGR over the forecast period.

CATEGORY DATA

Table 237 Sales of Oils and Fats by Category: Volume 2006-2011

Table 238 Sales of Oils and Fats by Category: Value 2006-2011
Table 239 Sales of Oils and Fats by Category: % Volume Growth 2006-2011

Table 240 Sales of Oils and Fats by Category: % Value Growth 2006-2011

Table 241 Vegetable and Seed Oil by Type: % Value Breakdown 2006-2011

Table 242 Oils and Fats Company Shares 2006-2010

Table 243 Oils and Fats Brand Shares 2007-2010

Table 244 Sales of Oils and Fats by Distribution Format: % Analysis 2006-2011

Table 245 Forecast Sales of Oils and Fats by Category: Volume 2011-2016

Table 246 Forecast Sales of Oils and Fats by Category: Value 2011-2016

Table 247 Forecast Sales of Oils and Fats by Category: % Volume Growth 2011-
2016

Table 248 Forecast Sales of Oils and Fats by Category: % Value Growth 2011-2016

Other Dairy in Australia - Category Analysis

HEADLINES

TRENDS

Dubbed the “MasterChef effect” by some industry observers, the current resurgence of
interest in cooking at home has been of great benefit to certain categories and products –
and the retail value and volume growth of cream in other dairy products is no exception.
MasterChef Australia, a popular reality television series featuring everyday people
competing in cooking contests, aired its third season from May through to July 2011. The
show is credited with demystifying certain ingredients and also bringing previously taboo
full-fat products back in to vogue, most notably cream, butter and cooking fats.

COMPETITIVE LANDSCAPE

National Foods leads in other dairy products with a 39% value share in 2010. National Foods
carries a variety of products in the category, including Yoplait Le Rice, Divine Classic and
Yogo dairy-based desserts, Yoplait Petit Miam and frûche brand flavoured fromage frais, and
Pura and Dairy Farmers cream. National Foods nonetheless experienced a decline in value
share of almost one percentage point in 2010, due to the correspondent rise in total private
label value share.

PROSPECTS

As long as viewers continue to tune in, the “as seen on TV” driver for other dairy products
will continue. Contestant applications for MasterChef Australia 2012 were accepted until
September 2011. Although MasterChef is by no means the first television cooking show to
capture audience attention, through a combination of local relevance, multi-platform
marketing and the all-pervasive cocooning trend, the show has generated a reaction that
has retailers, manufacturers and even demographers taking note. News Magazines, the
producer of the MasterChef magazine, revealed that after the first series of the show seven
out of ten viewers reported trying new things in the kitchen; six in ten said they made a
dish featured on the show; and 53% indicated that they had bought a particular ingredient
after seeing it on MasterChef. During the second series, retailers reported corresponding
sales surges in anything from certain spices to lamb brains after having been featured on
the show.

CATEGORY DATA

Table 249 Sales of Other Dairy by Category: Volume 2006-2011

Table 250 Sales of Other Dairy by Category: Value 2006-2011

Table 251 Sales of Other Dairy by Category: % Volume Growth 2006-2011

Table 252 Sales of Other Dairy by Category: % Value Growth 2006-2011

Table 253 Cream by Type: % Value Breakdown 2006-2011

Table 254 Sales of Other Dairy by Distribution Format: % Analysis 2006-2011

Table 255 Forecast Sales of Other Dairy by Category: Volume 2011-2016

Table 256 Forecast Sales of Other Dairy by Category: Value 2011-2016

Table 257 Forecast Sales of Other Dairy by Category: % Volume Growth 2011-
2016

Table 258 Forecast Sales of Other Dairy by Category: % Value Growth 2011-2016

Pasta in Australia - Category Analysis

HEADLINES

TRENDS

Pasta saw strong growth over the review period with a CAGR of 5%. This growth rate was
consistent with that of 2011. Pasta saw robust growth due to the increase in home cooking
over the review period following the global financial crisis. As consumers learned to cook
again, pasta was a popular carbohydrate choice. This is because the product has a healthy
image, is convenient to store and cook, is able to be reheated as leftovers for lunch or
dinner and is a cost effective product. The product is easily utilised in salads, goes well with
a variety of protein types as well as vegetarian cuisine and is easily invigorated with the
addition of a variety of sauces.

COMPETITIVE LANDSCAPE

San Remo Macaroni was the leader in pasta in 2010 with 36% value share. The company
has extensive distribution, being sold in major supermarkets/hypermarkets, independent
small grocers, and is even occasionally available in Aldi stores which primarily stock private
label offerings. The company had 62% of dried pasta and 15% of smaller but faster growing
chilled/fresh pasta. The company has many health and wellness offerings like San Remo
Organic Trivelle, whose bright red packaging makes it easily recognisable on the shelves in
supermarkets/hypermarkets. The company has a chilled/fresh pasta range with products
like San Remo Fresh Tortellini, and an extensive dried ready meals offering. The company
saw its value share grow throughout the review period and this is set to continue over the
forecast period due to the wide variety of offerings, broad distribution and prime placement
within grocery aisles.

PROSPECTS

Health and wellness is going to grow in importance in pasta in Australia. Regular pasta is
available in a large variation of shapes and sizes, while there is a more limited selection of
organic, gluten free and other health and wellness oriented pasta. Over the forecast period
health and wellness oriented pasta will be available in an increasing variety of formats due
to continued new product launches.

CATEGORY DATA

Table 259 Sales of Pasta by Category: Volume 2006-2011

Table 260 Sales of Pasta by Category: Value 2006-2011

Table 261 Sales of Pasta by Category: % Volume Growth 2006-2011

Table 262 Sales of Pasta by Category: % Value Growth 2006-2011

Table 263 Pasta Company Shares 2006-2010

Table 264 Pasta Brand Shares 2007-2010

Table 265 Sales of Pasta by Distribution Format: % Analysis 2006-2011

Table 266 Forecast Sales of Pasta by Category: Volume 2011-2016

Table 267 Forecast Sales of Pasta by Category: Value 2011-2016

Table 268 Forecast Sales of Pasta by Category: % Volume Growth 2011-2016

Table 269 Forecast Sales of Pasta by Category: % Value Growth 2011-2016

Ready Meals in Australia - Category Analysis

HEADLINES

TRENDS

Health and wellness was an increasing driver in ready meals over 2011. Health and wellness
has gone mainstream as producers focus on sodium and fat reduction. The Coles Lite
private label frozen ready meal range, launched in 2010, is 97% fat free and has only
236mg of sodium per 100g, while McCain‟s also relaunched its frozen Pizza Single range
with 40% less sodium over the review period. The influence of health and wellness on
regular frozen ready meals was such that within that category, health-positioned ready
meals actually declined in value terms due to the improved health and wellness
characteristics of regular frozen ready meals. To counter this recent loss in value sales,
McCain‟s added three new flavours to its health-positioned Healthy Choice range in early
2011 – Mild Chicken Curry, Singapore Noodles, and Mexican Chicken. McCain‟s also
revitalised its packaging, which now displays a clear ingredients list and cooking
instructions, making it easier for consumers to track exactly what they are eating.

COMPETITIVE LANDSCAPE

McCain Foods (Aust) Pty Ltd was the leading player in ready meals in 2010, accounting for a
21% value share. This was chiefly due to the company‟s dominance in frozen pizza, where it
accounted for a 68% value share in 2010, while the company also leads sales of frozen
ready meals, accounting for a 25% value share. The company benefits from offering clearly
differentiated product ranges. The McCain brand offers convenient, substantial and taste-
focused products, while its Healthy Choice range offers healthier products and has a
stronger focus on quality. The company lost share compared to 2009 as the emergence of
Dr Oetker in frozen pizza took value share from both Simplot Australia Pty Ltd and McCain
Foods (Aust) Pty Ltd.

PROSPECTS

Healthy eating will be at the forefront of Australian consumers‟ minds over the forecast
period. Producers will focus on salt reduction, fat reduction and clean ingredients lists to win
over and keep health-conscious consumers. Frozen ready meals will see vegetarian
offerings increase in availability as this is seen as a healthy option. In frozen pizza salt
reduction will be an important movement. The health and wellness movement will be
reinforced by government sponsorship such as the “swap” campaign and by the increased
availability of health and wellness products.

CATEGORY DATA

Table 270 Sales of Ready Meals by Category: Volume 2006-2011

Table 271 Sales of Ready Meals by Category: Value 2006-2011

Table 272 Sales of Ready Meals by Category: % Volume Growth 2006-2011

Table 273 Sales of Ready Meals by Category: % Value Growth 2006-2011

Table 274 Ready Meals: Vegetarian Vs Non-vegetarian % Breakdown by Type 2011

Table 275 Frozen Ready Meals % Breakdown by Ethnicity 2006-2011

Table 276 Ready Meals Company Shares 2006-2010

Table 277 Ready Meals Brand Shares 2007-2010

Table 278 Sales of Ready Meals by Distribution Format: % Analysis 2006-2011
Table 279 Forecast Sales of Ready Meals by Category: Volume 2011-2016

Table 280 Forecast Sales of Ready Meals by Category: Value 2011-2016

Table 281 Forecast Sales of Ready Meals by Category: % Volume Growth 2011-
2016

Table 282 Forecast Sales of Ready Meals by Category: % Value Growth 2011-2016

Sauces, Dressings and Condiments in Australia - Category Analysis

HEADLINES

TRENDS

Sauces, dressings and condiments benefited from the growing popularity of home cooking in
2011. As Australians spent more carefully in the economic climate of 2011, they opted to
eat in, frequenting food service outlets less often. Home cooking was also boosted by shows
like Masterchef and My Kitchen Rules, which made cooking more popular. Due to the
increase in home cooking, sauces, dressings and condiments saw value growth of 6% in
2011 to reach A$2.17 billion.

COMPETITIVE LANDSCAPE

Mars Australia was the leading player in sauces, dressings and condiments in 2010 with a
15% value share. The company benefits from offering a wide range of products, with a
presence in dips, dry sauces/powder mixes, herbs and spices, ketchup, mustard, pasta
sauces, pickled products, soy based sauces, table sauces, wet/cooking sauces, spicy
chilli/pepper sauces and other sauces, dressings and condiments. It also benefits from
offering brands with an ethnic positioning, with Dolmio in pasta sauces being positioned as
authentically Italian and Kan Tong in wet/cooking sauces being a pseudo Asian brand.

PROSPECTS

Sauces, dressings, and condiments is expected to grow by constant value 8% over the
forecast period. Australians will continue to cook at home over the forecast period due to
restricted household budgets and the popularity of cooking shows like Masterchef. Sauces,
dressings and condiments will continue to grow in value share as it offers consumers
convenience, assists consumers to create new dishes, and provides variety to household
diets. New product launches that conform to these drivers, like the McCormick Foods Rice
Cooker range of bases, launched in April 2010, will continue to grow the market.

CATEGORY DATA

Table 283 Sales of Sauces, Dressings and Condiments by Category: Volume 2006-
2011

Table 284 Sales of Sauces, Dressings and Condiments by Category: Value 2006-
2011
Table 285 Sales of Sauces, Dressings and Condiments by Category: % Volume
Growth 2006-2011

Table 286 Sales of Sauces, Dressings and Condiments by Category: % Value
Growth 2006-2011

Table 287 Wet/Cooking Sauces by Type: % Value Breakdown 2006-2011

Table 288 Sauces, Dressings and Condiments Company Shares 2006-2010

Table 289 Sauces, Dressings and Condiments Brand Shares 2007-2010

Table 290 Sales of Sauces, Dressings and Condiments by Distribution Format: %
Analysis 2006-2011

Table 291 Forecast Sales of Sauces, Dressings and Condiments by Category:
Volume 2011-2016

Table 292 Forecast Sales of Sauces, Dressings and Condiments by Category: Value
2011-2016

Table 293 Forecast Sales of Sauces, Dressings and Condiments by Category: %
Volume Growth 2011-2016

Table 294 Forecast Sales of Sauces, Dressings and Condiments by Category: %
Value Growth 2011-2016

Summary 34 Other sauces, dressings and condiments: Product Types
Snack Bars in Australia - Category Analysis

HEADLINES

TRENDS

Traditionally the domain of shoppers looking to stock school lunchboxes, snack bars is
coming of age with bars catered to adult snacking occasions driving growth in 2011.
Children‟s and family snack bars still dominate the area, with the Uncle Toby‟s range
accounting for 35% of retail value sales in 2010. However, the adult segment is expanding
as highlighted by growth within energy and nutrition bars and granola and muesli bars over
the year. Consumers are trading-up to snack bars fortified with protein to enhance sporting
performance and the development of lean muscle tissue as well as to stave-off any
afternoon cravings for unhealthier snack food options. Granola and muesli bars are
increasingly available with more premium ingredients and also with fibre or omega-3
fortification. An example is the Uncle Toby‟s Bodywise range which is available in omega-3
boost, digestive balance and weight management versions. The two latter SKUs are
approved by the National Heart Foundation.

COMPETITIVE LANDSCAPE

Nestlé continued to lead snack bars sales in 2010, recording a retail value share of 38%.
This figure is slightly lower than in 2009 due to the discontinuation of A.O. muesli bars in
February 2010. Uncle Toby‟s is the leading brand within snack bars and increased its retail
value share by one percentage point to 35% in 2010. The brand leads fruit bars and granola
and muesli bars and has a strong presence via its Roll-Ups, Fruit Fix, Yoghurt Topps, Chewy
and Crunchy formats. In addition to its mainstream Uncle Toby‟s brand, Nestlé Australia
also distributes some of the leading energy and nutrition bar brands including PowerBar and
Protein Plus. The parent company, Nestlé SA, also owns Musashi Pty Ltd.

PROSPECTS

Snack bars has a projected forecast period CAGR of 2% in both constant retail value and
retail volume terms as manufacturers further position snack bars as being a convenient way
to address dietary needs in terms of fibre, vitamins and minerals in a bid to boost their
perception as a healthier alternative to confectionery or sweet and savoury snacks.

CATEGORY DATA

Table 295 Sales of Snack Bars by Category: Volume 2006-2011

Table 296 Sales of Snack Bars by Category: Value 2006-2011

Table 297 Sales of Snack Bars by Category: % Volume Growth 2006-2011

Table 298 Sales of Snack Bars by Category: % Value Growth 2006-2011

Table 299 Snack Bars Company Shares 2006-2010

Table 300 Snack Bars Brand Shares 2007-2010

Table 301 Sales of Snack Bars by Distribution Format: % Analysis 2006-2011

Table 302 Forecast Sales of Snack Bars by Category: Volume 2011-2016

Table 303 Forecast Sales of Snack Bars by Category: Value 2011-2016

Table 304 Forecast Sales of Snack Bars by Category: % Volume Growth 2011-2016

Table 305 Forecast Sales of Snack Bars by Category: % Value Growth 2011-2016

Summary 35 Other Snack Bars: Product Types
Soup in Australia - Category Analysis

HEADLINES

TRENDS

Consumer demand for convenience was a driving factor in Australian soup in 2011. Ready-
to-serve soup, which is easily prepared, was the driving growth factor in canned/preserved
soup, which grew by 5% in 2011. Microwaveable plastic packaging for the 430g pack size
made it a popular lunchtime option. HJ Heinz Co Australia Ltd, Campbell Australasia Pty Ltd,
and Valcorp Fine Foods Pty Ltd each have products available in this format. Valcorp
expanded its range of flavours in this ready-to-serve soup in February 2011 by adding
Moroccan Pumpkin with Chickpea and Hearty Chicken & Vegetable.

COMPETITIVE LANDSCAPE

Campbell Australasia Pty Ltd has the largest value share of Australian soup at 38%. The
company is dominant in canned/preserved soup, where it has a 53% value share. Campbell
Australasia Pty Ltd was successful due to its extensive distribution and broad variety of
products. Its offerings include condensed, ready to serve, chunky and ready meal options
such as Chunky Fully Loaded soup, meaning it covers all areas of canned/preserved soup.
The company's success was also due to its packaging, offering cans, Tetra Pak cartons and
plastic microwaveable tubs. This variety of packaging meant that Campbell Australasia‟s
products look attractive on the shelves, and offer optimum convenience focused around
customer needs.

PROSPECTS

Soup is expected to see only 2% constant value growth over the forecast period. This
weakened growth compared to the review period is due to the expected poor performance
of instant soup and dehydrated soup which are both expected to decline by a constant value
CAGR of -3%. Canned/preserved soup and chilled soup will drive growth in Australia over
the forecast period, with 8% and 9% constant value growth respectively.

CATEGORY DATA

Table 306 Sales of Soup by Category: Volume 2006-2011

Table 307 Sales of Soup by Category: Value 2006-2011

Table 308 Sales of Soup by Category: % Volume Growth 2006-2011

Table 309 Sales of Soup by Category: % Value Growth 2006-2011

Table 310 Leading Soup Flavours 2006-2011

Table 311 Soup Company Shares 2006-2010

Table 312 Soup Brand Shares 2007-2010

Table 313 Sales of Soup by Distribution Format: % Analysis 2006-2011

Table 314 Forecast Sales of Soup by Category: Volume 2011-2016

Table 315 Forecast Sales of Soup by Category: Value 2011-2016

Table 316 Forecast Sales of Soup by Category: % Volume Growth 2011-2016

Table 317 Forecast Sales of Soup by Category: % Value Growth 2011-2016

Spreads in Australia - Category Analysis

HEADLINES
TRENDS

Australian consumers continue to display cautionary behaviour despite the perception of a
strong national economy and robust labour market. As consumers curb expenditure,
household expenses are coming under increased scrutiny and the trend towards private
label brands continues, particularly within non-essential areas such as spreads. Coles and
Woolworths are actively developing their product lines for honey, jams and preserves, and
nut-based spreads, as are discounters and independent supermarkets such as Aldi and IGA.
However, consumer consciousness does not extend exclusively to cost and the rising
awareness of health and wellness issues has encouraged the development of new and
premium product lines.

COMPETITIVE LANDSCAPE

Sales of spreads in 2010 were driven by leading brands Nutella, Vegemite, IXL and
Capilano. Kraft, despite a decline in sales share, still dominates nut-based spreads due to
the popularity of its iconic peanut butter range. Leading spreads brands leverage strong
consumer loyalty to maintain their dominance over smaller rivals.

PROSPECTS

Although spreads is a mature area, there is still scope for growth as consumer tastes and
habits gradually evolve. In addition, volume growth within the area can be boosted by
creative marketing that focuses on the multi-purpose nature of products in this area. For
example, jams and preserves can be used as sweeteners, yoghurt flavourings or baking
ingredients. Also, although the number of consumers eating honey as a traditional spread is
in decline, demand for honey for use as a medicated and sugar confectionery, sauce and
marinade and with bread and dairy products and cold beverages is increasing. Consumers
are already encouraged to substitute honey for sugar in hot drinks and baking recipes and
the multi-purpose character of honey is set to undergo further promotion with the online
release of Capilano Honey Shotz - 7g sachets of honey that provide an all-natural energy
boost for athletes of all ages.

CATEGORY DATA

Table 318 Sales of Spreads by Category: Volume 2006-2011

Table 319 Sales of Spreads by Category: Value 2006-2011

Table 320 Sales of Spreads by Category: % Volume Growth 2006-2011

Table 321 Sales of Spreads by Category: % Value Growth 2006-2011

Table 322 Leading Flavours for Jams and Preserves 2006-2011

Table 323 Spreads Company Shares 2006-2010

Table 324 Spreads Brand Shares 2007-2010

Table 325 Sales of Spreads by Distribution Format: % Analysis 2006-2011
Table 326 Forecast Sales of Spreads by Category: Volume 2011-2016

Table 327 Forecast Sales of Spreads by Category: Value 2011-2016

Table 328 Forecast Sales of Spreads by Category: % Volume Growth 2011-2016

Table 329 Forecast Sales of Spreads by Category: % Value Growth 2011-2016

Sugar Confectionery in Australia - Category Analysis

HEADLINES

TRENDS

Shoppers are being attracted to leading brands, more as a result of low promotional prices
than a sense of brand loyalty. With regard to both supermarket and convenience sales,
sugar confectionary purchases are increasingly being made when products are subject to
special offers, with a growing number of consumers identifying sale prices as reference
points rather than regular retail prices. The Natural Confectionery Company, Allen‟s and
Starburst are among the top five brands in sugar confectionary and all responded to
consumer demand for larger value-for-money formats and half-price discount promotions in
2011.

COMPETITIVE LANDSCAPE

Nestlé led sales in 2010, recording a retail value share of 21%. The company‟s principal
sugar confectionary brand, Allen‟s, ranked second within sugar confectionary in 2010,
recording a retail value share of 11%. Allen‟s Soothers and Allen‟s Butter-Menthol led sales
within medicated confectionary and the Allen‟s brand maintains a notable presence within
key sugar confectionary areas: pastilles, gums, jellies and chews; standard mints; and
toffees, caramels and nougat.

PROSPECTS

Sugar confectionery has a projected forecast period constant retail value CAGR of 1% and a
retail volume CAGR of 1%. Growth will be more substantial for branded products than
private label brands, particularly within areas that can differentiate themselves with better-
for-you and sugar-free new product development.

CATEGORY DATA

Table 330 Sales of Sugar Confectionery by Category: Volume 2006-2011

Table 331 Sales of Sugar Confectionery by Category: Value 2006-2011

Table 332 Sales of Sugar Confectionery by Category: % Volume Growth 2006-2011

Table 333 Sales of Sugar Confectionery by Category: % Value Growth 2006-2011

Table 334 Sugarised Vs Sugar-free Sugar Confectionery % Breakdown by Type
2011
Table 335 Pastilles, Gums, Jellies and Chews by Type: % Value Breakdown 2006-
2011

Table 336 Sugar Confectionery Company Shares 2006-2010

Table 337 Sugar Confectionery Brand Shares 2007-2010

Table 338 Sales of Sugar Confectionery by Distribution Format: % Analysis 2006-
2011

Table 339 Forecast Sales of Sugar Confectionery by Category: Volume 2011-2016

Table 340 Forecast Sales of Sugar Confectionery by Category: Value 2011-2016

Table 341 Forecast Sales of Sugar Confectionery by Category: % Volume Growth
2011-2016

Table 342 Forecast Sales of Sugar Confectionery by Category: % Value Growth
2011-2016

Summary 36 Other Sugar Confectionery: Product Types
Sweet and Savoury Snacks in Australia - Category Analysis

HEADLINES

TRENDS

Health was an increasing driver within sweet and savoury snacks over the review period.
This was evident in salt reduction and fat reduction in chips/crisps and extruded snacks,
while consumer demand for organic and gluten free products also grew over the review
period. Chips/crisps made from vegetables other than potatoes grew in popularity as they
were perceived as a healthier option. Yarra Valley Snack Foods Pty Ltd launched Thomas
Chipman Beetroot chips in October 2010. This product was certified organic and gluten free,
produced from Australian grown beetroot and made with no artificial preservatives or
additives.

COMPETITIVE LANDSCAPE

Smiths Snackfoods Co was the leading player in sweet and savoury snacks in 2010,
accounting for 37% value share. The company benefits from offering a wide range of brands
across sweet and savoury snacks and is the leading player in extruded snacks and nuts,
while dominating sales of chips/crisps, pretzels and tortilla/corn chips. The company
represents leading global snack player PepsiCo Inc in Australia and thus also benefits from
offering iconic brand names such as Doritos in tortilla/corn chips, alongside premium
products such as Red Rock Deli. However, the company lost slight value share in 2010 over
the previous year due to Australians moving towards healthier, less traditional snacks.

PROSPECTS

Maturity is expected to result in slowing growth for sweet and savoury snacks during the
forecast period. During the review period, there were new product launches, notably beef
jerky in other sweet and savoury snacks and nuts. However, by the start of the forecast
period these products had wide consumer acceptance and growth is expected to slow.
Growth in chips/crisps, extruded snacks and many other more established product areas in
sweet and savoury snacks was driven by the home cinema trend during the review period.
While the popularity of watching films at home with friends or family is expected to remain
strong, this trend was maturing by the end of the review period. Consequently, volume
growth is expected to slow from 4% CAGR during the review period to 2% CAGR during the
forecast period.

CATEGORY DATA

Table 343 Sales of Sweet and Savoury Snacks by Category: Volume 2006-2011

Table 344 Sales of Sweet and Savoury Snacks by Category: Value 2006-2011

Table 345 Sales of Sweet and Savoury Snacks by Category: % Volume Growth
2006-2011

Table 346 Sales of Sweet and Savoury Snacks by Category: % Value Growth 2006-
2011

Table 347 Popcorn by Type: % Value Breakdown 2006-2011

Table 348 Sweet and Savoury Snacks Company Shares 2006-2010

Table 349 Sweet and Savoury Snacks Brand Shares 2007-2010

Table 350 Sales of Sweet and Savoury Snacks by Distribution Format: % Analysis
2006-2011

Table 351 Forecast Sales of Sweet and Savoury Snacks by Category: Volume 2011-
2016

Table 352 Forecast Sales of Sweet and Savoury Snacks by Category: Value 2011-
2016

Table 353 Forecast Sales of Sweet and Savoury Snacks by Category: % Volume
Growth 2011-2016

Table 354 Forecast Sales of Sweet and Savoury Snacks by Category: % Value
Growth 2011-2016

Summary 37 Other sweet and savoury snacks: Product Types
Yoghurt and Sour Milk Drinks in Australia - Category Analysis

HEADLINES

TRENDS
Consumers are even more willing to trade up to gourmet yoghurts with real fruit inclusions
and innovative flavours as fruited spoonable yoghurt posts the highest growth in 2011, with
5% current value and retail volume growth driven by new product launches from National
Foods and Regal Cream Products. The spoonable yoghurt category is characterised by high
household penetration and a consumer willingness to explore new formats, recipes, brands
and extensions.

COMPETITIVE LANDSCAPE

National Foods leads with a 34% current value share in yoghurt and sour milk drinks in
Australia in 2010. The company holds a strong position in flavoured spoonable yoghurt,
fruited spoonable yoghurt and plain spoonable yoghurt through the ranges from Yoplait
(including Creamy Original, Creamy Lite, Formé, Formé Satisfy and Go-Gurt yoghurt for
children), Dairy Farmers and Farmer‟s Union.

PROSPECTS

While yoghurt consumers are relatively open to trying new products with various flavours
and functionalities, volume growth within the category can be achieved by encouraging
consumers to diversify their yoghurt consumption occasions. Industry sources reveal that
some 90% of yoghurt purchases are destined to be consumed at home, thus there remains
potential for expanding the out-of-home consumption occasion through marketing and
innovative packaging. Developing lines of children‟s yoghurt in portable pouches, for
instance, is one such possibility. Squeezable yoghurt pouches ensure ease of consumption
as utensils are not required and each serving is portion controlled. Such a format is more
practical for a school lunchbox, as it is less likely to explode given the sort of “wear and
tear” on school bags.

CATEGORY DATA

Table 355 Sales of Yoghurt and Sour Milk Drinks by Category: Volume 2006-2011

Table 356 Sales of Yoghurt and Sour Milk Drinks by Category: Value 2006-2011

Table 357 Sales of Yoghurt and Sour Milk Drinks by Category: % Volume Growth
2006-2011

Table 358 Sales of Yoghurt and Sour Milk Drinks by Category: % Value Growth
2006-2011

Table 359 Soy-based vs Dairy-based Yoghurt % Breakdown 2010

Table 360 Leading Flavours for Flavoured Spoonable Yoghurt 2006-2011

Table 361 Leading Flavours for Fruited Spoonable Yoghurt 2006-2011

Table 362 Yoghurt and Sour Milk Drinks Company Shares 2006-2010

Table 363 Yoghurt and Sour Milk Drinks Brand Shares 2007-2010

Table 364 Sales of Yoghurt and Sour Milk Drinks by Distribution Format: %
Analysis 2006-2011

Table 365 Forecast Sales of Yoghurt and Sour Milk Drinks by Category: Volume
2011-2016

Table 366 Forecast Sales of Yoghurt and Sour Milk Drinks by Category: Value
2011-2016

Table 367 Forecast Sales of Yoghurt and Sour Milk Drinks by Category: % Volume
Growth 2011-2016

Table 368 Forecast Sales of Yoghurt and Sour Milk Drinks by Category: % Value
Growth 2011-2016

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DOCUMENT INFO
Description: This Euromonitor market report provides market trend and market growth analysis of the Packaged Food industry in Australia. With this Australia Packaged Food Market report, you’ll be able to explore in detail the changing shape and potential of the industry. You will now be able to plan and build strategy on real industry data and projections.