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Packaged Food in Italy

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					Packaged Food in Italy
Published: November 2011

Price: $ 6500




This Euromonitor market report provides market trend and market growth analysis of the
Packaged Food industry in Italy. With this 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 Italy 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 Italy?
   What are the major brands in Italy?
   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


EXECUTIVE SUMMARY
Slow economic recovery impacts sales

The pace of economic recovery in Italy in 2011 was slower than previously anticipated,
and the level of unemployment remained significantly higher compared to pre-
recessionary years, which was reflected in the still cautious attitude of consumers towards
spending. In 2011, foodservice volume sales continued to suffer as many Italians were still
reluctant to spend money on meals away from home. Additionally, Italians were still
looking for bargains and cut back on some higher priced items in retail, although
functional healthy products and occasional small luxury treats helped to support sales of
such products as soy drinks and higher quality boxed chocolates.
Polarisation continues to impact sales

Due to the pessimism regarding Italy’s economy, families dined out less often and opted
to prepare home-cooked food. However, not all consumers were opposed to paying a
premium for healthier options, such as organic food, or high-end products to indulge in
while dining at home. On the one hand, increasing price sensitivity resulted in growing
consumer demand for economy products, boosting sales of economy brands and private
label products. On the other hand, demand for premium products also continued to
increase, with many using packaged food to provide affordable indulgences during a time
of economic hardship. Many thus sought to economise in general in packaged food, while
still purchasing a small number of premium products as treats. As a result, there was
polarisation across many product areas, with mid-priced brands tending to lose share.
Modest gains made by private label

Private label was on the radar of retailers and manufacturers throughout the recession, as
consumers faced tougher economic conditions and rising unemployment, and sought to cut
the cost of their grocery shopping. In addition, with intense competition and a reluctance
to increase prices significantly to cover costs amidst weak consumer spending, private
label has become more than ever a way to achieve a profit. On the whole, private label
made gains in 2010 in Italy. However, the increases were not as strong as might have
been expected and not all categories benefited equally. This was mainly due to the fact
that in Italy manufacturers tend to be stronger than retailers, and thus have more
negotiating power when it comes to setting retail prices.
Economic concerns shape distribution

Supermarkets/hypermarkets dominate sales of packaged food and continued to gain share
throughout the review period. This channel is the obvious choice for increasingly time-
pressed Italian consumers, with wide ranges, ease of parking and long opening hours
offering high levels of convenience. This channel also benefited from these retailers
expanding their private label ranges to include more value-added, indulgent and organic
options. However, not surprisingly, in view of the economic situation, many consumers
shifted towards more competitive distribution channels in 2010-2011, primarily grocery
discounters and internet retailing.
Marginal growth expected due to ongoing economic concerns

Overall packaged food constant value sales are set to increase very slightly over the
forecast period. The polarisation observed in 2010 and 2011 will continue, with growing
demand for the best deals on one hand, including private label and family formats in bulk
ice cream or yoghurts, for instance, and the fragile loyalty of upper-middle income groups
to upmarket products on the other. In addition, many categories are likely to become
more dependent on in-store promotions and discounts in staple products like dairy
products. Consumer lifestyle habits will remain busy, aiding growth in meal solutions more
than in nutrition/staples, while impulse/indulgence products will continue to bear the brunt
of the weak nature of the economic recovery. Naturally healthy, additive-free and organic
packaged food should further develop at the expense of better-for-you and functional
food, which will face more stringent EU legislation about claims.



Table of Contents

Packaged Food in Italy - Industry Overview
EXECUTIVE SUMMARY
Slow economic recovery impacts sales
Polarisation continues to impact sales
Modest gains made by private label
Economic concerns shape distribution
Marginal growth expected due to ongoing economic concerns
KEY TRENDS AND DEVELOPMENTS
Slow pace of economic recovery keep sales in check
Private label small but growing
Busy consumers demand convenience
Price-sensitive consumers influence distribution
Healthier nutrition choices remain in focus
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

SOURCES

Summary 1 Research Sources
Packaged Food in Italy - Company Profiles
Barilla Alimentare SpA in Packaged Food (Italy)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING

Summary 4 Barilla Alimentare SpA: Competitive Position 2010
Carapelli Firenze SpA in Packaged Food (Italy)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION

Summary 7 Carapelli Firenze SpA: Production Statistics 2010
COMPETITIVE POSITIONING

Summary 8 Carapelli Firenze SpA: Competitive Position 2010
Cesare Fiorucci SpA in Packaged Food (Italy)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Conserve Italia - Consorzio Cooperative Conserve Italia scarl in Packaged Food (Italy)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION

Summary 12 Conserve Italia – Consorzio Cooperative Conserve Italia scarl: Production
Statistics 2010

COMPETITIVE POSITIONING

Summary 13 Conserve Italia – Consorzio Cooperative Conserve Italia scarl: Competitive
Position 2010
Consorzio del Prosciutto di Parma in Packaged Food (Italy)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING

Summary 16 Consorzio del Prosciutto di Parma: Competitive Position 2010
Ferrarini SpA in Packaged Food (Italy)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION

Summary 19 Ferrero SpA: Production Statistics 2010

COMPETITIVE POSITIONING

Summary 20 Ferrero SpA: Competitive Position 2010
Galbusera Dolciaria SpA in Packaged Food (Italy)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING

Summary 23 Galbusera Dolciaria SpA: Competitive Position 2010
Granarolo SpA in Packaged Food (Italy)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION

Summary 26 Granarolo SpA: Production Statistics 2010

COMPETITIVE POSITIONING

Summary 27 Granarolo SpA: Competitive Position 2010
Marr SpA in Packaged Food (Italy)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Montana Alimentari SpA in Packaged Food (Italy)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Nestlé Italiana SpA in Packaged Food (Italy)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION

Summary 34 Nestlé Italiana SpA: Production Statistics 2010

COMPETITIVE POSITIONING

Summary 35 Nestlé Italiana SpA: Competitive Position 2010
Pastificio Rana SpA in Packaged Food (Italy)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING

Summary 38 Pastificio Rana SpA: Competitive Position 2010
Unilever Italia SpAin Packaged Food (Italy)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING

Summary 41 Unilever Italia SpA: Competitive Position 2010
Valledoro SpA in Packaged Food (Italy)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Baby Food in Italy - Category Analysis
HEADLINES
TRENDS

In Italy, baby food is suffering from a falling birth rate, the increasing popularity of
breastfeeding and a growing interest in home cooked baby food. As a result, baby food is
set to continue to decline in 2011. Many parents have also continued to shift from
prepared baby food to homemade food as a result of negative media publicity concerning
high levels of sugar and artificial additives in baby food products. This is seeing prepared
baby food contract in both volume and current value terms despite the continuous growth
in organic prepared baby food offerings.

COMPETITIVE LANDSCAPE

Baby food remained rather concentrated in 2010, with Plasmon Dietetici Alimentari - Plada
SpA and Mellin SpA accounting for more than a 70% combined value share. Plasmon was
the undisputed leader with a value share of almost 50% in 2010. The company has an
extensive product range in baby food, is present throughout the category and is also very
well known in Italy.

PROSPECTS

To the detriment of prepared baby food, many Italian parents still prefer to feed their
babies homemade food, and this trend has been exacerbated by the economic crisis. In
response to this, baby food manufacturers are likely to improve their recipes and
formulations, notably with more organic or naturally healthy ingredients in order to attract
more consumers to baby food. At the same time, manufacturers will also likely continue to
engage in promotional activities as it is unlikely that there will be a sudden increase in
household purchasing power over the next few years, which means that consumers will
continue to look for competitively priced products.

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 Italy - Category Analysis
HEADLINES
TRENDS

The main trend which characterised baked goods in Italy during 2011 was the 3% price
increase recorded in artisanal bread, which rose to an average unit price of €2 per kg. This
increase was caused by rises in all of the input costs for the production of baked goods.

COMPETITIVE LANDSCAPE

79% of all retail sales of baked goods in Italy during 2010 were accounted for by
unpackaged/artisanal products. The high proportion of unpackaged/artisanal products in
baked goods in Italy is due to the superior freshness, variety and perceived higher quality
of unpackaged/artisanal baked goods. Among industrial branded products, Barilla
remained the leading manufacturer in 2010 with a 6% value share. Barilla’s success in
baked goods was mainly achieved thanks to its well-known Mulino Bianco brand. Barilla
was followed by Bauli SpA and Ferrero SpA.
PROSPECTS

The key trend in baked goods in Italy over the forecast period is expected to be the
ongoing decline of unpackaged/artisanal bread. There will be many influences in this
decline, but above all it will be caused by the increases expected in the average unit price
of unpackaged/artisanal bread. This trend is particularly interesting in the context of Italy,
which is a conservative country in terms of food habits and very attached to its historic
and cultural food products, particularly its many different types of unpackaged/artisanal
bread.

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 Unpackaged/Artisanal Bread: In-store Bakery Sales 2006-2011

Table 67 Pastries by Type: % Value Breakdown 2006-2011

Table 68 Packaged/Industrial Cakes: Single Portion vs Multi-pack % Breakdown by Type
2006-2011

Table 69 Baked Goods Company Shares 2006-2010

Table 70 Baked Goods Brand Shares 2007-2010

Table 71 Sales of Baked Goods by Distribution Format: % Analysis 2006-2011

Table 72 Forecast Sales of Baked Goods by Category: Volume 2011-2016

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

Table 74 Forecast Sales of Baked Goods by Category: % Volume Growth 2011-2016

Table 75 Forecast Sales of Baked Goods by Category: % Value Growth 2011-2016

Biscuits in Italy - Category Analysis
HEADLINES
TRENDS

During 2011, Italian consumers returned to their erstwhile preference for consuming
biscuits, especially for breakfast. Biscuits are more convenient than alternative breakfast
products such as breakfast cereals and biscuits also has a key advantage in terms of its
lower average unit price. Canny Italian biscuit companies were quick to spot this new
trend in 2011 and increased their advertising spending, especially through television and
radio.

COMPETITIVE LANDSCAPE

The leading company in biscuits in Italy during 2010 remained Barilla Alimentare SpA,
which accounted for 43% of total biscuits value sales. Barilla’s value share did not increase
significantly during 2010 as competition in biscuits in Italy remains very strong. Barilla
managed to maintain its leading position through advertising and marketing campaigns
aimed at strengthening awareness of its Mulino Bianco, Pavese and Grancereale brands. In
2010 Barilla based its television advertising campaign for the Mulino Bianco brand on the
high proportion of natural ingredients contained within Mulino Bianco products.

PROSPECTS

Over the forecast period, Italian biscuit manufacturers are expected to invest further in
plain biscuits in order to benefit from the high level of consumer interest in plain biscuits
as they are easier to combine with spreads and hot drinks and in Italy this is particularly
important as biscuits are generally consumed at breakfast. At the same time, new
healthier biscuits such as sugar-free biscuits and digestive biscuits as well as biscuits
which are based on ingredients such as whole grains and dark chocolate are expected to
increase in popularity in Italy over the forecast period.

CATEGORY DATA

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

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

Table 78 Sales of Biscuits by Category: % Volume Growth 2006-2011

Table 79 Sales of Biscuits by Category: % Value Growth 2006-2011

Table 80 Biscuits Company Shares 2006-2010

Table 81 Biscuits Brand Shares 2007-2010

Table 82 Sales of Biscuits by Distribution Format: % Analysis 2006-2011

Table 83 Forecast Sales of Biscuits by Category: Volume 2011-2016

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

Table 85 Forecast Sales of Biscuits by Category: % Volume Growth 2011-2016

Table 86 Forecast Sales of Biscuits by Category: % Value Growth 2011-2016
Breakfast Cereals in Italy - Category Analysis
HEADLINES
TRENDS

Consumer demand for more convenient products and better value for money in limited
demand for breakfast cereals during 2011. The appeal of breakfast cereals waned to the
advantage of alternative breakfast products such as biscuits. In fact, many Italian
consumers switched from breakfast cereals towards biscuits during 2011, although leading
breakfast cereals manufacturers attempted to re-launch breakfast cereals throughout 2011
by introducing their products in larger packaging formats, although these strategies have
not yet proved very successful.

COMPETITIVE LANDSCAPE

Breakfast cereals in Italy remained highly concentrated in 2010, with the two leading
companies Kellogg and Nestlé combined accounting for 79% of total value sales. The
leading positions of Kellogg and Nestlé are almost unassailable for a variety of reasons,
not least the domination of retail shelf space by Kellogg and Nestlé brands, leaving scant
exposure in retail outlets for other companies and brands. Kellogg and Nestlé also offer
frequent new product developments, making it even harder for smaller companies to gain
shelf space for their products. The leading brand in breakfast cereals in Italy during 2010
was Kellogg’s Special K, which benefited from significant advertising support, followed by
Kellogg’s All Bran and Kellogg’s Coco Pops. The strong position of these last two brands is
an indication of the importance of both whole grain fibre products and children’s breakfast
cereals in Italy.

PROSPECTS

Breakfast cereals is not expected to register positive growth over the forecast period. The
most interesting trend in breakfast cereals during the forecast period will be the ongoing
consumer focus on healthier packaged food products, which will lead Italians to prefer
plain cereals and natural cereals containing fruit over more sophisticated products. On the
other hand, Italians will also spend more on products which are intended specifically for
consumption by children as Italian parents are always extremely keen to spend as much
as possible on the diets of their children.

CATEGORY DATA

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

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

Table 89 Sales of Breakfast Cereals by Category: % Volume Growth 2006-2011

Table 90 Sales of Breakfast Cereals by Category: % Value Growth 2006-2011

Table 91 Breakfast Cereals Company Shares 2006-2010
Table 92 Breakfast Cereals Brand Shares 2007-2010

Table 93 Sales of Breakfast Cereals by Distribution Format: % Analysis 2006-2011

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

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

Table 96 Forecast Sales of Breakfast Cereals by Category: % Volume Growth 2011-2016

Table 97 Forecast Sales of Breakfast Cereals by Category: % Value Growth 2011-2016

Canned/Preserved Food in Italy - Category Analysis
HEADLINES
TRENDS

The impact of the economic downturn continued to affect purchasing patterns during
2011, and pushed consumers towards canned/preserved food products, along with a
general shift towards cheaper products. However, convenience in terms of usage and
saving time also remained important. The canned/preserved food category, like many
other packaged food categories, also profited from higher expenditure in the retail
channel, as families have cut their spending on eating out.

COMPETITIVE LANDSCAPE

Bolton Alimentari continued to lead canned/preserved food in 2010, with a value share of
20%. Its Rio Mare (canned/preserved fish/seafood) and Manzotin (canned/preserved meat
and meat products) brands are very popular in Italy.

PROSPECTS

Sales of canned/preserved food are expected to be static in constant value terms over the
forecast period. Volume sales will also be static, in line with the review period trend. As
the economy is expected to recover in the next few years, demand for cheaper products
like canned/preserved food is set to start to slow down, due to a consumer shift towards
more expensive, fresher and healthier products. Canned food is a mature category and
affected by a consumer culture that perceives these kinds of products to be a low quality
alternative to fresher foodstuffs, which is why the category will continue to experience
stagnation.

CATEGORY DATA

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

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

Table 100 Sales of Canned/Preserved Food by Category: % Volume Growth 2006-2011

Table 101 Sales of Canned/Preserved Food by Category: % Value Growth 2006-2011
Table 102 Canned/Preserved Food Company Shares 2006-2010

Table 103 Canned/Preserved Food Brand Shares 2007-2010

Table 104 Sales of Canned/Preserved Food by Distribution Format: % Analysis 2006-2011

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

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

Table 107 Forecast Sales of Canned/Preserved Food by Category: % Volume Growth 2011-
2016

Table 108 Forecast Sales of Canned/Preserved Food by Category: % Value Growth 2011-
2016

Cheese in Italy - Category Analysis
HEADLINES
TRENDS

Italian consumers have shown in 2010 and 2011 that they remain attached to taste and
quality. They are mainly interested in traditional Italian hard and soft cheeses as well as
local products. Private label’s share in Italian cheese remains low, although it is expected
to rise in the future. Premium products, DOP (Protected Origin Denomination) cheeses and
packaged options remain consumers’ first choices.

COMPETITIVE LANDSCAPE

Lactalis continued to lead cheese in 2010, accounting for a 12% value share through
brands such as Santa Lucia, Invernizzi, Locatelli, Bel Paese, Vallelata, Galbanino and
Galbani. Ranked second was Kraft Foods with a 6% value share, followed by Granarolo
and Zanetti. Nevertheless, the cheese competitive landscape in Italy is rather fragmented,
with around 62% of value sales accounted for by “others”.

PROSPECTS

Cheese remains a mature category which also faces several threats. Manufacturers could
experience a further decline in sales as consumers opt for private label products. Due to
increasing consumer health awareness, the high fat content of cheese is also resulting in
some consumers shifting towards healthier alternatives in dairy products. Therefore, the
consumption of cheese in Italy is not expected to progress significantly over the forecast
period, with an increase of less than 1% in volume terms. Should manufacturers see more
dynamic demand, they will need to focus on developing new added-value packs as well as
new opportunities to enjoy cheese at times other than between courses, encouraging the
consumption of cheese in salads, as a cooking ingredient and even as an aperitif.

CATEGORY DATA
Table 109 Sales of Cheese by Category: Volume 2006-2011

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

Table 111 Sales of Cheese by Category: % Volume Growth 2006-2011

Table 112 Sales of Cheese by Category: % Value Growth 2006-2011

Table 113 Spreadable Processed Cheese by Type: % Value Breakdown 2006-2011

Table 114 Unprocessed Cheese by Type: % Value Breakdown 2009-2010

Table 115 Cheese Company Shares 2006-2010

Table 116 Cheese Brand Shares 2007-2010

Table 117 Sales of Cheese by Distribution Format: % Analysis 2006-2011

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

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

Table 120 Forecast Sales of Cheese by Category: % Volume Growth 2011-2016

Table 121 Forecast Sales of Cheese by Category: % Value Growth 2011-2016

Chilled Processed Food in Italy - Category Analysis
HEADLINES
TRENDS

Unlike many other packaged food categories, chilled processed food continued to see
healthy growth during the economic downturn, performed positively in 2010 and 2011, in
line with the review period average growth rate, registering, respectively, current value
growth of 5% and 4%. This was supported by volume growth of 6% in 2010 and a lower
2% in 2011, with the latter year seeing an increase in the average unit price. Quality,
convenience and innovation have offset the impact of declining consumer disposable
incomes and driven sales of chilled products, which are generally appreciated for their
freshness, typically low calorie content and health-related values.

COMPETITIVE LANDSCAPE

Chilled processed food remains highly fragmented in Italy, as companies commonly focus
on specific categories (eg processed meat). Consorzio del Prosciutto di Parma leads;
followed by Fiorucci. However, if individual retailers are included, then Coop leads with its
private label range. Consorzio del Prosciutto di Parma leads the chilled processed meat
category, aided by the wide variety of products it offers. 2010 saw innovation with the
creation of an entire new range of products – Linea 100% Naturale – with no added
preservatives. There are three different product lines, Suprema in a variety of mortadella
formats, Fiordicotto in cooked ham, and Rostello in roasted ham. Consorzio del Prosciutto
di Parma continues to maintain its leadership as it operates within the most lucrative
category and manufactures high quality Parma cooked ham, which is the most popular
product in the category.

PROSPECTS

Chilled processed food is expected to continue to perform positively over the forecast
period, with the exception of chilled pizza and chilled lunch kits. Chilled pizza is losing in
the competition with frozen pizza, while chilled lunch kits have failed to win over
consumers. Gradual economic recovery will contribute to growth in the overall category
from 2012, although annual average volume and value growth is expected to be slightly
lower than it was before the economic crisis happened. Manufacturers will continue to
focus on health and innovation, as well as aiming to attract consumers concerned about
convenience and price.

CATEGORY DATA

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

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

Table 124 Sales of Chilled Processed Food by Category: % Volume Growth 2006-2011

Table 125 Sales of Chilled Processed Food by Category: % Value Growth 2006-2011

Table 126 Chilled Processed Meat by Type: % Value Breakdown 2006-2011

Table 127 Chilled Processed Meat: % Share of Chilled Meat Substitute 2006-2011

Table 128 Chilled Processed Food Company Shares 2006-2010

Table 129 Chilled Processed Food Brand Shares 2007-2010

Table 130 Sales of Chilled Processed Food by Distribution Format: % Analysis 2006-2011

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

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

Table 133 Forecast Sales of Chilled Processed Food by Category: % Volume Growth 2011-
2016

Table 134 Forecast Sales of Chilled Processed Food by Category: % Value Growth 2011-
2016

Chocolate Confectionery in Italy - Category Analysis
HEADLINES
TRENDS
Growth in chocolate confectionery in 2011 growth was driven by higher demand for
indulgent products, which was of the main consumer trends throughout packaged food in
Italy during 2011.

COMPETITIVE LANDSCAPE

Ferrero continued to lead chocolate confectionery in Italy during 2010 with a 35% value
share. The company’s strong leadership in chocolate confectionery is mainly due to its
extensive brand portfolio, with brands such as Kinder and Ferrero Rocher enjoying well-
established popularity among vast numbers of Italian consumers. Following in second
position in 2010 was Nestlé Italiana, while Lindt & Sprüngli rounded out the top three. In
2010, both Ferrero and Lindt & Sprüngli SpA lost marginal value share to Nestlé Italiana
SpA, which benefited from the success of its most recent product launches. The proportion
of chocolate confectionery value sales accounted for by private label also increased during
2010 as more Italian consumers were keen to trade down to private label in order to save
money. Advertising campaigns were largely responsible for the slight changes registered in
the value shares of the top three companies in chocolate confectionery during 2010 as
Italian consumers are generally very receptive to advertising, especially when it comes to
chocolate confectionery.

PROSPECTS

During the forecast period, the leading producers of chocolate confectionery in Italy will
introduce innovative new product recipes and new packaging. For example, a growing
number of chocolate confectionery manufacturers are expected to launch innovative
products based on local ingredients. Furthermore, dark chocolate is expected to play an
increasingly important role in tablets and countlines over the forecast period as the trend
for more traditional, premium and healthier products will continue to have a major
influence on demand for chocolate confectionery.

CATEGORY DATA

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

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

Table 137 Sales of Chocolate Confectionery by Category: % Volume Growth 2006-2011

Table 138 Sales of Chocolate Confectionery by Category: % Value Growth 2006-2011

Table 139 Chocolate Tablets by Type: % Value Breakdown 2006-2011

Table 140 Chocolate Confectionery Company Shares 2006-2010

Table 141 Chocolate Confectionery Brand Shares 2007-2010

Table 142 Sales of Chocolate Confectionery by Distribution Format: % Analysis 2006-2011

Table 143 Forecast Sales of Chocolate Confectionery by Category: Volume 2011-2016
Table 144 Forecast Sales of Chocolate Confectionery by Category: Value 2011-2016

Table 145 Forecast Sales of Chocolate Confectionery by Category: % Volume Growth
2011-2016

Table 146 Forecast Sales of Chocolate Confectionery by Category: % Value Growth 2011-
2016

Dried Processed Food in Italy - Category Analysis
HEADLINES
TRENDS

Rising demand for healthier, lighter and cheaper products was the main trend within dried
processed food in 2011. In addition, a large number of consumers are increasingly
interested in ethnic cooking, boosting demand for new innovative segments and new
flavours in the packaged food market.

COMPETITIVE LANDSCAPE

Barilla was the leading manufacturer in 2010, accounting for 30% of retail value sales in
the category overall, and commanding a 37% share in dried pasta. Private label held a
share larger than any brand manufacturer other than Barilla, with Coop alone being the
third largest player in 2010, just behind De Cecco, with a value share of 6%. Private label
in total accounted for almost 24% of dried processed food value sales in 2010. The
success of Barilla and De Cecco can be attributed to their dynamism with regard to setting
and responding to new trends in dried pasta, and offering products with a good
price/quality ratio. Private label is, however, increasingly playing a central role in the
category, continuing to growing at steady positive rates. This can be attributed to rising
demand for cheaper products as a result of the economic downturn, which has been
particularly apparent in more commodified packaged food categories, such as pasta and
rice.

PROSPECTS

Demand for both healthy and easy-to-cook products is expected to increase over the
forecast period, due to the increasingly hectic pace of modern life and rising consumer
health awareness. As a result, new innovative fast-cooking noodles, rice, dried ready
meals and dessert mixes brands are expected to perform better over the coming years
than in review period.

CATEGORY DATA

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

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

Table 149 Sales of Dried Processed Food by Category: % Volume Growth 2006-2011

Table 150 Sales of Dried Processed Food by Category: % Value Growth 2006-2011
Table 151 Dried Processed Food Company Shares 2006-2010

Table 152 Dried Processed Food Brand Shares 2007-2010

Table 153 Sales of Dried Processed Food by Distribution Format: % Analysis 2006-2011

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

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

Table 156 Forecast Sales of Dried Processed Food by Category: % Volume Growth 2011-
2016

Table 157 Forecast Sales of Dried Processed Food by Category: % Value Growth 2011-
2016

Drinking Milk Products in Italy - Category Analysis
HEADLINES
TRENDS

Drinking milk products in Italy is seeing increasing polarisation. On the one hand, the
category is experiencing rising consumer interest in promoted products and private label.
On the other, niche categories are seeing rising demand for added-value products such as
organic, lactose-free and fortified/functional drinking milks. 2011 has been no exception
and the trend for healthy, natural and organic nutrition has continued to have a strong
impact on drinking milk products, while the rising cost of raw materials has challenged the
cut-price promotional strategies of many manufacturers within regular drinking milk
products.

COMPETITIVE LANDSCAPE

The competitive environment in drinking milk products continues to be dominated by two
major companies – Granarolo and Parmalat. In 2010, Granarolo led with a 17% value
share, very closely followed by Parmalat (16.6%). Both companies saw their value share
decline slightly in 2010 due to the rising popularity of less expensive products, primarily
private label lines from key retailers like Coop, Conad and Esselunga. Granarolo led
fresh/pasteurised milk with a 22% value share thanks to the premium positioning of its
milk as well as its strong distribution network. Parmalat, in contrast, led long-life/UHT
milk.

PROSPECTS

While dairy is a very mature industry, drinking milk products is projected to grow over the
forecast period. Although consumption of standard white milk is declining, consumption of
special milks, such as organic, lactose-free and micro-filtered products, will continue to
grow rapidly over the forecast period. Sales of drinking milk products will likely be
governed by the launch of speciality products for increasingly health-conscious consumers.
In particular, consumers are expected to favour the natural simplicity of organic products,
the unit prices of which should continue to become more accessible.

CATEGORY DATA

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

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

Table 160 Sales of Drinking Milk Products by Category: % Volume Growth 2006-2011

Table 161 Sales of Drinking Milk Products by Category: % Value Growth 2006-2011

Table 162 Chilled Vs Ambient Flavoured Milk Drinks: % Volume Analysis 2007-2010

Table 163 Milk by Type: % Value Breakdown 2007-2010

Table 164 Drinking Milk Products Company Shares 2006-2010

Table 165 Drinking Milk Products Brand Shares 2007-2010

Table 166 Sales of Drinking Milk Products by Distribution Format: % Analysis 2006-2011

Table 167 Forecast Sales of Drinking Milk Products Products by Category: Volume 2011-
2016

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

Table 169 Forecast Sales of Drinking Milk Products Products by Category: % Volume
Growth 2011-2016

Table 170 Forecast Sales of Drinking Milk Products Products by Category: % Value Growth
2011-2016

Frozen Processed Food in Italy - Category Analysis
HEADLINES
TRENDS

The economic affected frozen processed food only slightly, and, following a marginal
decline in 2009, recorded positive growth in current value terms in 2010 and 2011, with
3% and 2% value growth rates, respectively. However, volume sales fluctuated somewhat
in the latter part of the review period, with a 3% increase in 2010 followed by flat sales in
2011. Frozen food is now regarded more highly in Italy than previously, being perceived
by consumers as being almost as healthy as fresh food, but more practical and frequently
more affordable. Per capita consumption of frozen food in 2010 in Italy was 15kg,
compared to the average for Western Europe countries of 23 kg in, indicating that there is
still considerable potential to increase penetration. Overall, the main target is young
families who are concerned about convenience, as they cannot dedicate much time to
cooking. 2011 has seen an increasing focus by manufacturers on making frozen food as
convenient as possible, in order to compete with other packaged food categories, while
retailers are maintaining aggressive strategies by increasing promotional activities.

COMPETITIVE LANDSCAPE

The undisputed leading brand in frozen food in Italy remains Findus, which in 2010 was
sold by Unilever to the frozen food giant Birds Eye. Findus recorded a slight decline in
value share in 2010, mainly because of the slow performance of its convenience product
ranges, which is frozen ready meals and soups. However, the brand largely maintained its
shares in frozen/processed fish/seafood, potatoes and vegetables, keeping up with
competition from private label and from the Buitoni brand. In 2010, Findus focused on
innovation and quality, with the objective, especially in frozen fish/seafood, of making
frozen fish an every day dish rather than one for occasional or emergency use only, which
has tended to be the case. New products were launched in various categories. In frozen
soup, Findus introduced Minestrone Leggero, following the traditional minestrone recipe,
but 30% lower in calories than normal and richer in fibre. Frozen fish also saw innovation,
focusing both on convenience and flavour. The That’s Amore range was augmented with
Gli Incontri – ready-made mixed seafood sauces and a shelled clam sauce ready in eight
minutes – and also, following the health and nutrition trend, the introduction of Salmon
sticks rich in omega-3 in the Captain Findus range.

PROSPECTS

Frozen processed food producers are expected to invest large sums in new product
development and the introduction of healthier products over the forecast period, in order
to counteract the competition posed by cheaper private label products. This scenario might
lead to increased polarisation, favouring premium and private label lines at the expense of
medium quality or secondary brands that do not offer either top quality or low prices.
Overall, value sales are predicted to grow only marginally between 2011 and 2016.

CATEGORY DATA

Table 171 Sales of Frozen Processed Food by Category: Volume 2006-2011

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

Table 173 Sales of Frozen Processed Food by Category: % Volume Growth 2006-2011

Table 174 Sales of Frozen Processed Food by Category: % Value Growth 2006-2011

Table 175 Frozen Processed Fish/Seafood by Type: % Value Breakdown 2006-2011

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

Table 177 Frozen Processed Red Meat by Type: % Value Breakdown 2006-2011

Table 178 Frozen Processed Vegetables by Type: % Value Breakdown 2006-2011

Table 179 Other Frozen Processed Food by Type: % Value Breakdown 2006-2011
Table 180 Frozen Processed Food Company Shares 2006-2010

Table 181 Frozen Processed Food Brand Shares 2007-2010

Table 182 Sales of Frozen Processed Food by Distribution Format: % Analysis 2006-2011

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

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

Table 185 Forecast Sales of Frozen Processed Food by Category: % Volume Growth 2011-
2016

Table 186 Forecast Sales of Frozen Processed Food by Category: % Value Growth 2011-
2016

Gum in Italy - Category Analysis
HEADLINES
TRENDS

Functional gum continued to account for the majority of gum value sales in Italy during
2011, comprising 74% of total gum value sales. The breath freshening properties of gum
generally continued to represent the most appealing feature of gum, although the focus in
functional gum in 2011 remained on the functional benefits which derived from ingredients
such as xylitol. The effectiveness of functional gum is such that many Italians are happy to
use functional gum as an occasional substitute for brushing their teeth. Flavoured
functional gum is receiving a very positive response from Italian consumers as products
such as Vivident Blast and Vivident Cube are highly appreciated by Italian consumers as
these products offer a peasant flavour with the added benefit of xylitol.

COMPETITIVE LANDSCAPE

Perfetti Van Melle SpA remained the dominant player in gum in Italy during 2010 with a
94% value share, the result of a two percentage point increase. Meanwhile, the value
share of Wrigley remained stable, while the proportion of gum value sales accounted for
by others remained static also. Perfetti Van Melle SpA is very active in terms of new
product development and advertising, and in 2010 continued to benefit from heavy
television advertising and strong brand awareness. Its brand Vivident accounted for 37%
of total gum value sales in 2010.

PROSPECTS

Continuous product and packaging innovation will be the focus of future developments in
gum in Italy over the forecast period. Functional gum is expected to continue driving sales
over the forecast period as functional gum leads the way with regards to flavour and
packaging innovation. A number of new exotic flavours and elegant packaging formats are
expected to be introduced in functional gum over the forecast period.

CATEGORY DATA
Table 187 Sales of Gum by Category: Volume 2006-2011

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

Table 189 Sales of Gum by Category: % Volume Growth 2006-2011

Table 190 Sales of Gum by Category: % Value Growth 2006-2011

Table 191 Leading Flavours for Gum 2006-2011

Table 192 Gum Company Shares 2006-2010

Table 193 Gum Brand Shares 2007-2010

Table 194 Sales of Gum by Distribution Format: % Analysis 2006-2011

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

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

Table 197 Forecast Sales of Gum by Category: % Volume Growth 2011-2016

Table 198 Forecast Sales of Gum by Category: % Value Growth 2011-2016

Ice Cream in Italy - Category Analysis
HEADLINES
TRENDS

In 2011, the Italian ice cream category continues to be characterised by strong
promotional activity, with over 47% of volumes sold via promotions. Consequently, the
focus in the category remains on low-priced and private label products. This trend is
mainly visible in take-home ice cream, where there is a risk of category trivialisation. In
impulse ice cream and retail artisanal ice cream, in contrast, the main drivers of
consumption are innovation and indulgence. In fact, most ice cream value sales derive
from the latter category.

COMPETITIVE LANDSCAPE

In a rather fragmented competitive landscape, Unilever Italia led ice cream in 2010 with a
15% value share. The company’s strength can be attributed mainly to its wide portfolio of
dynamic brands positioned in all price segments, from the popular, retro-style and value-
for-money Carte d’Or brand to the premium Magnum brand.

PROSPECTS

Manufacturers are trying to encourage Italian consumers to eat ice cream throughout the
year. In terms of per capita consumption, Italians have consumed almost nine litres in
2011. Leading companies are investing to encourage year-round consumption of ice cream
as an indulgence product, almost like yoghurt for instance, in order to be less dependent
on the weather in the spring and summer. Nevertheless, sales of ice cream will remain
contingent on the weather during the peak season.

CATEGORY DATA

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

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

Table 201 Sales of Ice Cream by Category: % Volume Growth 2006-2011

Table 202 Sales of Ice Cream by Category: % Value Growth 2006-2011

Table 203 Leading Flavours for Ice Cream 2006-2011

Table 204 Ice Cream Company Shares 2006-2010

Table 205 Ice Cream Brand Shares 2007-2010

Table 206 Impulse Ice Cream Company Shares 2006-2010

Table 207 Impulse Ice Cream Brand Shares 2007-2010

Table 208 Take-home Ice Cream Company Shares 2006-2010

Table 209 Take-home Ice Cream Brand Shares 2007-2010

Table 210 Sales of Ice Cream by Distribution Format: % Analysis 2006-2011

Table 211 Forecast Sales of Ice Cream by Category: Volume 2011-2016

Table 212 Forecast Sales of Ice Cream by Category: Value 2011-2016

Table 213 Forecast Sales of Ice Cream by Category: % Volume Growth 2011-2016

Table 214 Forecast Sales of Ice Cream by Category: % Value Growth 2011-2016

Meal Replacement in Italy - Category Analysis
HEADLINES
TRENDS

During the review period, meal replacement slimming products benefited from the
increasing interest of Italian consumers in weight management. The increasing focus on
the importance of maintaining the right weight in light of the many risks associated with
obesity is being propagated the Italian media and key government agencies, and this
additional publicity about controlling one’s weight allowed mal replacement slimming
products to register 4% value growth during 2011. Italian consumers tend to purchase
meal replacement slimming products not only to enhance their personal appearance but
also in an effort to regain optimal health levels through a reduction in weight.

COMPETITIVE LANDSCAPE

The competitive landscape in meal replacement products in Italy remains quite
concentrated. During 2010, the two leading companies accounted for 47% of total meal
replacement value sales. Herbalife Italia continued to lead meal replacement products
during 2010 with a value share of 33%, followed by Nutrition & Santé Italia, with 14%.
Herbalife relies on its long-standing experience as a global leader in high quality slimming
products. It distributes its products mainly through direct selling and in 2010 the company
continued to benefit from the increasing popularity of the direct selling channel in Italy as
well as the natural positioning of its products.

PROSPECTS

Italian consumers are very interested in weight management issues, although meal
replacement slimming products is not expected to experience particularly strong growth
over the forecast period because this strong interest in maintaining a healthy body at an
acceptable weight is driving growth in more medical slimming products such as OTC
obesity.

CATEGORY DATA

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

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

Table 217 Sales of Meal Replacement by Category: % Volume Growth 2006-2011

Table 218 Sales of Meal Replacement by Category: % Value Growth 2006-2011

Table 219 Meal Replacement Slimming by Type: % Value Breakdown 2006-2011

Table 220 Meal Replacement Company Shares 2006-2010

Table 221 Meal Replacement Brand Shares 2007-2010

Table 222 Sales of Meal Replacement by Distribution Format: % Analysis 2006-2011

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

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

Table 225 Forecast Sales of Meal Replacement by Category: % Volume Growth 2011-2016

Table 226 Forecast Sales of Meal Replacement by Category: % Value Growth 2011-2016

Noodles in Italy - Category Analysis
HEADLINES
TRENDS

Value and volume sales of noodles have been fuelled by rising interest in Asian cooking,
growing demand for convenient food solutions, and the introduction of new innovative
brands and flavours. Sales of noodles increased by approximately 6% in volume terms and
by nearly 10% in value terms in 2011, in line with the growth trend of previous years.

COMPETITIVE LANDSCAPE

Eurofood and Masterfoods Italia dominated noodles sales during 2010, recording
respective value shares of 34% and 30%. Eurofood leads with the combined performance
of the premium brand Blue Dragon in plain noodles and of the more recent Nissin Cup
Noodles in the instant category. Alimenta Srl is also establishing a presence in the noodles
category with the SAVE brand, in both plain and pouch instant noodles, which meet
consumer demand both for quality and authenticity, and are also lower priced compared to
other brands. These brands are not produced by the companies but are imported directly
from China.

PROSPECTS

Noodles will continue to see positive growth, albeit at a slower pace than during the review
period. The slowdown is due to the fact that noodles were only introduced in the Italian
market in 2005 and thus growth over the review period was from a very low base. The
category is expected to record a 6% CAGR in constant value and a 5% volume CAGR over
the forecast period, with demand being fuelled by the growing popularity of Chinese food,
which is perceived as being convenient, cheap and more healthy than other cheap food,
such as pizzas and savoury snacks. However, noodles will remain very much a niche area
in comparison to pasta and rice.

CATEGORY DATA

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

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

Table 229 Sales of Noodles by Category: % Volume Growth 2006-2011

Table 230 Sales of Noodles by Category: % Value Growth 2006-2011

Table 231 Noodles Company Shares 2006-2010

Table 232 Noodles Brand Shares 2007-2010

Table 233 Sales of Noodles by Distribution Format: % Analysis 2006-2011

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

Table 235 Forecast Sales of Noodles by Category: Value 2011-2016

Table 236 Forecast Sales of Noodles by Category: % Volume Growth 2011-2016
Table 237 Forecast Sales of Noodles by Category: % Value Growth 2011-2016

Oils and Fats in Italy - Category Analysis
HEADLINES
TRENDS

Despite the end of an acute phase of the economic crisis, Italian consumers have not
really recovered in terms of purchasing power in 2011. Due to a fall in purchasing power
and a rediscovery of the pleasure of cooking at home, Italian consumers have returned to
nutrition/staple products. As a result, volume sales of oils and fats are set to slightly
increase in 2011following several years of decline.

COMPETITIVE LANDSCAPE

In a rather fragmented competitive landscape, Carapelli Firenze led oils and fats in 2010
with a value share of 12%. This stemmed from its strong position in olive oil. The
company was followed by SOS Corp Alimentaria with a 9% value share.

PROSPECTS

As consumers are trying to limit their fat intake, the oils and fats category is expected to
register declines in both constant value and volume terms over the forecast period.
However, from the oils and fats they are willing to continue to use, consumers will expect
only the best quality and functionality.

CATEGORY DATA

Table 238 Sales of Oils and Fats by Category: Volume 2006-2011

Table 239 Sales of Oils and Fats by Category: Value 2006-2011

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

Table 241 Sales of Oils and Fats by Category: % Value Growth 2006-2011

Table 242 Vegetable and Seed Oil by Type: % Value Breakdown 2006-2011

Table 243 Oils and Fats Company Shares 2006-2010

Table 244 Oils and Fats Brand Shares 2007-2010

Table 245 Sales of Oils and Fats by Distribution Format: % Analysis 2006-2011

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

Table 247 Forecast Sales of Oils and Fats by Category: Value 2011-2016

Table 248 Forecast Sales of Oils and Fats by Category: % Volume Growth 2011-2016
Table 249 Forecast Sales of Oils and Fats by Category: % Value Growth 2011-2016

Other Dairy in Italy - Category Analysis
HEADLINES
TRENDS

In 2011, health and indulgence have been the main factors impacting other dairy in Italy.
Categories perceived as unhealthy, such as condensed/evaporated milk, have continued to
decline, while products which are generally considered as having a poor taste, such as
plain fromage frais and quark, have also suffered. On the other hand, low-fat desserts
have benefited by offering health and indulgence at the same time. The indulgence trend
has also been the reason behind a good performance from chilled snacks.

COMPETITIVE LANDSCAPE

The leader in other dairy in 2010 continued to be Ferrero, commanding a 30% value
share. Under the Kinder umbrella brand, Ferrero offers a variety of products in chilled
snacks, which it dominates with more than a 90% share of value sales. In 2010, the
company further strengthened its lead thanks to an aggressive strategy based on ongoing
investment in advertising and product development.

PROSPECTS

The predominant consumer trends expected over the forecast period include a
continuation of the health and wellness trend, which will lead to increased demand for
products containing more natural ingredients, as well as more organic products and low-
fat and low-lactose options. Furthermore, new flavour combinations can be expected to
enter other dairy and drive sales over the forecast period.

CATEGORY DATA

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

Table 251 Sales of Other Dairy by Category: Value 2006-2011

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

Table 253 Sales of Other Dairy by Category: % Value Growth 2006-2011

Table 254 Cream by Type: % Value Breakdown 2006-2011

Table 255 Sales of Other Dairy by Distribution Format: % Analysis 2006-2011

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

Table 257 Forecast Sales of Other Dairy by Category: Value 2011-2016

Table 258 Forecast Sales of Other Dairy by Category: % Volume Growth 2011-2016
Table 259 Forecast Sales of Other Dairy by Category: % Value Growth 2011-2016

Pasta in Italy - Category Analysis
HEADLINES
TRENDS

The main trends in 2010 and 2011across the two categories of dried and chilled/fresh
pasta were the increased wellness trend in terms of ingredients used, and much slower
increases in average retail unit prices. Brand manufacturers launched products that
focused on ingredient quality and regionalism, and also embraced an eco-friendly
approach, both at production sites and in the use of eco-packaging. Both dried and
chilled/fresh pasta registered slower unit prices increases, despite some pressure from
rising cereals’ prices increase in the last couple of years. This dynamic was triggered by
pasta increasingly becoming a commodity, with a consequent focus on pricing, leading to a
very high incidence of price promotions and a general trading down. This led to a decrease
in total category sales in 2010. Value sales fell for pasta overall by 4% in current terms,
mainly due to the poor performance of dried pasta, which registered a 7% decline in
value. 2011 saw a similar trend, although less dramatic, due to the softening of the
economic crisis, although the trend in dried pasta was still negative, with a 3% decrease in
value terms. This was, however, offset to some extent by 4% value growth in chilled/fresh
pasta.

COMPETITIVE LANDSCAPE

Pasta is a highly fragmented category in Italy, comprising a large number of different
manufacturers whose value shares differ from region to region; however, there is still one
key player, Barilla Alimentare SpA, which remains the clear leader. Barilla accounted for
27% of retail value sales in 2010, with 37% of the dried pasta value sales, with the two
brands Barilla and Voiello. De Cecco SpA ranked second, recording a value share of 7%.
The success of these companies can be attributed to their dynamism with regard to setting
and responding to new trends in dried pasta, and offering products with the best
quality/price ratio. Pastificio Rana SpA ranks third, with a 6% value share at total category
level, and is the undisputed leader in the chilled/fresh pasta segment with almost 21% of
value sales. Rana continues to maintain the lead within the category with the introduction
of innovative products and through intense promotional activity.

PROSPECTS

Pasta is a very mature category, due to the fact that it is a traditional staple in the Italian
diet. It is consumed on a daily basis, and its consequent status as a commodity means
purchasing tends to be very much related to price, with little loyalty to brands. Pasta value
and volume sales are set to decrease slightly over the forecast period. The performance in
volume terms will represent an improvement on the review period, when sales were
affected by substantial increases in price. Expectations for domestic pasta consumption are
not promising, due in part to expected cereal price volatility in the coming years, together
with a possible reduction in consumer purchasing power and the offer in the market, due
to manufacturers decreasing production levels of standard wheat pasta as it is much less
profitable than pasta made using alternative cereals.
CATEGORY DATA

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

Table 261 Sales of Pasta by Category: Value 2006-2011

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

Table 263 Sales of Pasta by Category: % Value Growth 2006-2011

Table 264 Pasta Company Shares 2006-2010

Table 265 Pasta Brand Shares 2007-2010

Table 266 Sales of Pasta by Distribution Format: % Analysis 2006-2011

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

Table 268 Forecast Sales of Pasta by Category: Value 2011-2016

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

Table 270 Forecast Sales of Pasta by Category: % Value Growth 2011-2016

Ready Meals in Italy - Category Analysis
HEADLINES
TRENDS

The economic downturn has continued to affect Italian consumer behaviour and lifestyles.
In order to counteract a possible contraction in sales, manufacturers in 2010 offered a
wide range of promotions in order to boost demand. Although ready meals are usually
more expensive than other foodstuffs, a combination of discounts and a wide range of
different products, including premium and dishes based on traditional, classic recipes,
helped ready meals to perform well in 2010 and 2011. The category registered current
value growth of 6% in both 2010 and 2011, following declines in 2008 and 2009. Changes
in household structure and lifestyles have deprived Italians of the will and time to devote
to cooking. The number of single-person households has expanded, while work schedules
are increasingly hectic, pushing consumers towards ready-to-eat foods and helping ready
meals to increase value sales.

COMPETITIVE LANDSCAPE

In 2010, Bonduelle led the highly fragmented ready meals category in Italy with a value
share of 11%, up by almost one percentage point on 2009. Bonduelle outperformed both
Nestlé Italiana with the Buitoni brand and Compagnia Italiana Surgelati with Findus,
thanks to the excellent performance of prepared salads within the ready meals category.
Bonduelle continues to focus on innovation and top quality prepared salads, introducing a
new eco-friendly pack for its entire ready meals line Agita & Gusta, diminishing the
amount of CO2 produced by 40% compared to normal packaging. This innovation has
further enhanced Bonduelle’s brand image of health, offering a balanced diet and being
environmentally friendly.

PROSPECTS

Over the forecast period, the ready meals category is set to benefit from increasing
demand for time-saving products. The recovery of the economy will play an important
role, allowing consumers to spend more on convenience foods, pushing value sales up at
the premium end and increasing volume sales of low-priced private labels products. Ready
meals will also benefit from the success of products made from fresh, nutritionally
balanced ingredients and following traditional recipes. These factors are expected to boost
sales over the forecast period, leading to a constant value CAGR of 3% between 2011 and
2016, up from 1% between 2006 and 2011.

CATEGORY DATA

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

Table 272 Sales of Ready Meals by Category: Value 2006-2011

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

Table 274 Sales of Ready Meals by Category: % Value Growth 2006-2011

Table 275 Ready Meals: Vegetarian Vs Non-vegetarian % Breakdown by Type 2011

Table 276 Frozen Ready Meals % Breakdown by Ethnicity 2006-2011

Table 277 Chilled Ready Meals % Breakdown by Ethnicity 2006-2011

Table 278 Ready Meals Company Shares 2006-2010

Table 279 Ready Meals Brand Shares 2007-2010

Table 280 Sales of Ready Meals by Distribution Format: % Analysis 2006-2011

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

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

Table 283 Forecast Sales of Ready Meals by Category: % Volume Growth 2011-2016

Table 284 Forecast Sales of Ready Meals by Category: % Value Growth 2011-2016

Sauces, Dressings and Condiments in Italy - Category Analysis
HEADLINES
TRENDS
The number of consumers dining out was significantly lower in 2011 than before the
financial crisis in 2008, due to Italians having seen declines in their purchasing power, and
the general uncertainty regarding the future, as a result of the economic downturn. This
trend helped to boost demand for sauces, dressings and condiments, as they are an
important ingredient in home cooking and are increasingly seen as an essential component
in making home-made food that is quick and easy to prepare, together with being tasty
and healthy. Despite a general shift towards cheaper brands, as consumers looked to
reduce household expenditure during the crisis, manufacturers in sauces, dressings and
condiments focused more and more on innovation in recipes, emphasising the importance
of maintaining the quality of products, especially with more transparency in terms of origin
of ingredients, in particular in pasta sauces, tomato purées and bouillon/stock cubes.

COMPETITIVE LANDSCAPE

The sauces, dressings and condiments category is highly fragmented in Italy, although the
top three players accounted for 37% of value sales in 2010. Star Alimentare holds first
position, with a 16% value share, with leading positions in the most significant categories
in terms of sales. In bouillon/stock cubes it accounted for more than 50% of value in
2010; in pasta sauces it held second position after Barilla, and led in the tomato paste and
purées category, accounting for 13% of value sales, just ahead of Conserve Mediterraneo
di Caivano, renowned for its Cirio brand.

PROSPECTS

On one hand, people are leaning more and more towards creative and experimental home-
made cuisine, and demand for more convenient, tastier and healthier brands will continue
to define the category during the forecast period. For example, sauces or stocks that
contain less salt are likely to see an increase in demand among more health-conscious
consumers, as are organic versions of existing products. Low sodium and organic stock
cubes, reduced salt dry sauces and low-fat dips are all areas where a high level of new
product development activity is expected over the forecast period. On the other hand, with
regard to pasta sauces and tomato purées, there will be a focus on the regional
provenance of products, together with the best price-quality ratios and convenience of
use. In tomato purées, in particular, attention will be paid to packaging with clusters,
mono-portions and transparent PET packs, with the aim of continuing the cannibalisation
of canned tomatoes sales.

CATEGORY DATA

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

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

Table 287 Sales of Sauces, Dressings and Condiments by Category: % Volume Growth
2006-2011

Table 288 Sales of Sauces, Dressings and Condiments by Category: % Value Growth
2006-2011

Table 289 Sauces, Dressings and Condiments Company Shares 2006-2010
Table 290 Sauces, Dressings and Condiments Brand Shares 2007-2010

Table 291 Sales of Sauces, Dressings and Condiments by Distribution Format: % Analysis
2006-2011

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

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

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

Table 295 Forecast Sales of Sauces, Dressings and Condiments by Category: % Value
Growth 2011-2016

Snack Bars in Italy - Category Analysis
HEADLINES
TRENDS

Innovation and price promotions continued to drive growth in snack bars in Italy during
2011 as consumers remained very responsive to both innovation and lower prices. Italians
tend not to distinguish between muesli bars, breakfast bars and fruits bars, purchasing
these products on impulse as they are not part of the traditional Italian diet. However,
energy and nutrition bars are something of an exception to this as they are widely
regarded as a sort of specialised supplement for one’s daily diet rather than as a snack.
Due to the reasons stated above, snack bars has struggled to register positive growth
since 2009 following several years of double digit value and volume growth. However, this
slowdown in growth has not deterred the major players in the category from continuing to
invest in snack bars, although the category is now subject to lower advertising expenditure
and fewer in-store promotions than during the previous rapid growth phase.

COMPETITIVE LANDSCAPE

Kellogg Italia SpA, Barilla Alimentare SpA and Also SpA accounted for 68% of total value
sales in snack bars in Italy during 2010. Kellogg led with a value share of 30%, while
Barilla held a 25% value share and Also accounted for 13% of total snack bars value sales.
The competitive landscape in snack bars in 2010 remained in line with 2009, itself a
continuation of the situation throughout the review period. Snack bar is a comparatively
small category in which first mover advantage has played a major role. Kellogg is the
snack bar player which advertises the most. Kellogg continues to take the initiative in
terms of development in snack bars, while its rivals, including Barilla and Also, merely
follow Kellogg’s strategy in order not to lose too much ground to the leading player.

PROSPECTS

Snack bar producers will continue to introduce new varieties and flavours over the forecast
period, focusing the marketing of their products towards different target groups with an
emphasis on shape management and the health benefits of their products in order to
maintain positive growth.

CATEGORY DATA

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

Table 297 Sales of Snack Bars by Category: Value 2006-2011

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

Table 299 Sales of Snack Bars by Category: % Value Growth 2006-2011

Table 300 Snack Bars Company Shares 2006-2010

Table 301 Snack Bars Brand Shares 2007-2010

Table 302 Sales of Snack Bars by Distribution Format: % Analysis 2006-2011

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

Table 304 Forecast Sales of Snack Bars by Category: Value 2011-2016

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

Table 306 Forecast Sales of Snack Bars by Category: % Value Growth 2011-2016
Soup in Italy - Category Analysis
HEADLINES
TRENDS
Rising demand for healthy and convenient products was the main development within soup
during 2010 and 2011. The fact that soup is typically a low-calorie meal means that it is
very popular with health-conscious and dieting consumers in Italy, a customer base
segment that is growing more than ever before. In addition, the increased tendency
towards convenience helped to fuel demand within the category.

COMPETITIVE LANDSCAPE

Compagnia Surgelati Italiana (CSI) led sales of soup in 2010, as Unilever Italia SpA sold
Findus to Bird’s Eye Iglo Ltd, leaving the distribution duties to CSI. The Findus brand held
a 41% value share in soup, with its frozen soup product line. The launch of Minestrone
Leggero helped it to maintain its position, in line with the wellness and weight
consciousness trend. The product is 30% lower in calories than normal minestrone and
rich in fibre. The remaining Unilever Italia brand, Knorr, retained second position, with
over 20% of value sales in 2010. Knorr leads in canned, UHT and dehydrated soup.
Unilever Italia has made substantial investments in innovation and advertising in recent
years, and continues to extend the Knorr ranges with the introduction of products based
on traditional recipes, together with healthier ingredients and no preservative content.
Knorr saw an increase in value share of almost one percentage point in 2010, mainly due
to effective advertising activity as well as to the launch of Le Cerealose, in the three
variants of porcini mushrooms, vegetables and legumes.

PROSPECTS

The soup category in Italy is expected to be static in the next five years, with a 1% CAGR
in constant value terms over the forecast period. The positive impact of the health trend
and the focus on genuine, light tastes with natural ingredients will be counterbalanced by
an increased level of promotional activity.

CATEGORY DATA

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

Table 308 Sales of Soup by Category: Value 2006-2011

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

Table 310 Sales of Soup by Category: % Value Growth 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 Italy - Category Analysis
HEADLINES
TRENDS

One of the key trends in spreads in 2011 was the high growth registered in honey value
sales for the third following year. The growing demand for honey among Italian consumers
can be linked to the growing demand for healthier diets. Honey can be used either as a
spread in lieu of chocolate spreads or jams and preserves as well as a sugar substitute.
Honey producers are taking advantage of this rising demand for honey by investing in new
packaging and positioning their products as being healthy.

COMPETITIVE LANDSCAPE

Spreads in Italy continued to be led by Ferrero SpA during 2010. Ferrero is present in
chocolate spreads with its well established brand Nutella, which is by far the dominant
chocolate spread brand in Italy. Ferrero’s value share in spreads declined marginally in
2010 after four percentage point decline recorded in the company’s value share during
2009. Ferrero’s declining performance is mainly due to the rise of honey within spreads,
which is leading to higher value shares for honey producers at the expense of Ferrero’s
value share, despite the stable demand for Ferrero’s products and its rising value sales.

PROSPECTS

Italian consumers generally perceive spreads as a category comprising very convenient
products. Spreads are easy to store and can be used in many ways and consumed at
different times of the day. Spreads manufacturers will continue to invest in advertising and
innovation in order to benefit from the demand for convenient spreads. The constant value
CAGR of 3% which is expected in spreads throughout the forecast period is commensurate
with the 3% constant value CAGR recorded in spreads over the review period.

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 Italy - Category Analysis
HEADLINES
TRENDS

Unit price rises averted a decline in value growth in sugar confectionery during 2011 as
volume sales continued to decline. Italian consumers became even more aware of the
health issues such as diabetes and obesity which have linked with a high intake of sugar
confectionery, which compromised demand for sugar confectionery.
COMPETITIVE LANDSCAPE

The competitive environment in sugar confectionery in Italy continued to be very
concentrated in 2010 with the top two companies, Perfetti Van Melle SpA and Leaf Italia
SpA, accounting for 52% of total value sales. Perfetti Van Melle SpA remains the leader in
sugar confectionery and posted a 29% value share during 2010. The company was able to
maintain its leading position thanks to its broad product portfolio and the popularity of its
brands such as Golia, Morositas, Fruittella and Alpenliebe. Leaf held second position in
sugar confectionery during 2010 with a 23% value share.

PROSPECTS

Sugar confectionery in Italy is a relatively mature category and, as such, manufacturers
are expected to launch sugar-free and organic products over the forecast period in
response to growing demand for healthier products. However, the development of these
healthier sugar confectionery products will occur only at a slow pace, which is perhaps
unsurprising given that the grim economic environment which currently subsists in Italy is
decidedly unfavourable for the expansion of more expensive products. Nevertheless,
continuous product and packaging innovation as well as the offer of promotional bags of
assorted products and brands will be one tactic employed by manufacturers in order to
maintain sales over the forecast period. In addition, sugar confectionery manufacturers
will focus more on marketing their products to adults rather than to teenagers.

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 43 Other Sugar Confectionery: Product Types
Sweet and Savoury Snacks in Italy - Category Analysis
HEADLINES
TRENDS

The Italian economy recorded the third consecutive year of crisis in 2011, and this has
affected the choices and habits of the average consumer in the country. Continuing the
2010 trend of reducing out-of-home expenditure, such as visits to bars and restaurants,
during 2011consumers’ purchasing behaviour remained conservative, with a consequent
negative impact on many consumer goods market. However, sweet and savoury snacks,
and particularly chips/crisps and nuts, maintained a positive trend, due to their
characteristics of being cheap and convenient products, which meet people’s need for
personal gratification through tasty food.

COMPETITIVE LANDSCAPE

Unichips Italia Spa led sales in 2010, recording an increased value share of 17% in sweet
and savoury snacks overall. The company’s success can be attributed to the popularity of
its San Carlo and Pai brands, as well as its significant investment in new product
development and advertising. Moreover, the company offers a wide range of chips/crisps,
tortilla/corn chips, extruded snacks and popcorn brands, all of which receive extensive
promotional support to reach different categories of consumers. Private label has a
significant presence in the category, and recorded strong growth in 2010 to reach a value
share of 17%, indicating that consumer choices were more oriented towards cheaper
products.

PROSPECTS

The effects of the prolonged economic downturn in the country are starting to affect sweet
and savoury snacks, particularly those categories where established companies are less
active, such as popcorn, tortilla chips and, to some extent, extruded snacks. However,
heavy investment in promotions and in store trial marketing activities are likely to have
positive effects on the whole category, which is still showing some dynamism, and
consumers appear to be keen to carry on spending in snacks. Thus, despite rising
consumer price sensitivity, the category will continue to grow, although at a slower pace
than in previous years.

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

Yoghurt and Sour Milk Drinks in Italy - Category Analysis
HEADLINES
TRENDS

The health trend has continued to have a large impact on yoghurt in 2011, although
consumer preference seems to have shifted towards the spoonable format at the expense
of the drinking format. In order to support yoghurt sales, manufacturers have kept people
interested in consuming different types of yoghurt as a light and healthy dessert. Most
consumers crave something sweet after a meal. Yet, unlike in countries such as France,
yoghurt is not a traditional dessert in Italy. However, based on successful advertising by
manufacturers, yoghurt is becoming a more popular dessert option.

COMPETITIVE LANDSCAPE

Danone remained the undisputed leader in yoghurt in Italy in 2010 thanks to consumer
loyalty to its main brands. Danone was also successful in developing functional yoghurt
over the review period, with Vitasnella among its innovations. Danone relies on a wide and
strong range in functional spoonable and drinking yoghurt. The company’s strategic
marketing is also a reason behind its success. Most of Danone’s yoghurts receive the
backing of substantial advertising campaigns, both in-store and on television.

PROSPECTS

The health trend will continue to have a strong impact on yoghurt over the forecast period,
with the shift towards pro/pre biotic yoghurts continuing. At the same time, consumers will
continue to shift towards less expensive products as the consumption patterns developed
during the economic slowdown of 2008-2010 will not be reversed in the short term. The
category is expected to see increasing polarisation between the premium and economy
segments. Some consumers will, however, shift towards the economy segment, which in
yoghurt means private label products. Demand for premium-priced organic products is
also expected to rise, mainly among consumers with higher disposable incomes and/or a
specific interest in that kind of product.

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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