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BRANDS Healthiest BRANDS

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									 MARCH 2007 www.checkoutmagazine.co.uk                                EXCLUSIVE NIELSEN DATA


                  Healthiest
                   BRANDS
                        Why this basket is better for you




Inside    TOP 100 RANKINGS
          The league table of top
                                       TOP FLIGHT INTERVIEWS
                                       Directors at Kellogg’s, Yeo Valley
                                                                            ONES TO WATCH
                                                                            Brands tipped to make
          selling grocery brands and   Organic, Innocent and other Top      the move into
          the fastest growers          100 brands share their strategies    the Top 100
                                       for success                           in 2007
 Inside                                                                                                                TOP 100 GROCERY BRANDS
 4 NIELSEN COMMENT
 Eleni Nicholas, group managing director, UK &
 Ireland, ACNielsen, finds two-thirds of the leading
 grocery brands are in growth and particularly those
 that have embraced the health agenda
 6 TOP OF THE SHOPS
                                                         Healthy eating:
 Coca-Cola stays on top, the bread brands battle it
 out, Walkers has healthy recipe for success and
 plush paper is the dog’s danglies for Andrex
 7 EXPERIENCE IS EVERYTHING
                                                         becoming a habit
 Lucozade shows great energy and marketing poten-
 tial while Sainsbury’s says keep an eye on Kingsmill    The nation’s diet is changing with healthier products
 8 HEALTHY HOOKS
 Tetley gets passionate about tea and bags a health
                                                         moving up the Top 100 Grocery Brands league and
 angle while Red Bull grabs functionality by the horns   delivering the biggest growth
 10 CEREAL STORIES
 Weetabix extends its reach, tradition buoys
 Cathedral City and premium pushes Goodfella’s                                                                          has reversed a 6.6% sales decline in 2005 to a
                                                                                                                        healthy 4% sales rise in 2006, winning back
 12 SHAPE MANAGEMENT
 Kellogg’s gets in shape with Special K and the top
                                                                      OVERVIEW                                          consumers with its healthier crisp recipe.
                                                                     Fiona Briggs, editor, Checkout
 water brands ride a healthy drinking wave                                                                                 Pet food hasn’t escaped the health trend either
 17 HIGH FLIERS AND DEBUTANTS                                                                                           with brands like Pedigree, 15th and up 3.4%, and
 Danone Bio Activia and Innocent leap into the Top                                                                      Bakers, 78th and up 19.4%, starting to promote
 100 Grocery Brands league with spectacular sales                      consumers are buying healthier food              weight control lines.
 18 PET FAVOURITES
 Health, premium and life stage trends are shaping
 the pet food category. Ice cream, frozen fish and
                                                         UK            and drinks, according to Checkout’s
                                                                       Top 100 Grocery Brands report.
                                                           Compiled in conjunction with Nielsen and based
                                                                                                                           But while the Top 100 Grocery Brands report high-
                                                                                                                        lights the overriding trend to healthy eating,
                                                                                                                        indulgence and a move towards more premium
 Goodfella’s frozen pizzas drive growth at Nisafreeze    on sales at more than 74,000 grocery stores, the               products is shaping the table too.
 20 ORGANIC AND NATURAL                                  study shows the fastest growing food and drink                    Kellogg’s, for instance, reckons its Special K brand
 Yeo Valley is first entirely organic brand to enter     brands in 2006 are those that are better for you.              (54th and up 17.2%) benefits from its positioning
 the Top 100                                               In almost every product category – bread, soft               as a shape management product but one that also
 22 SOFT FOCUS                                           drinks, yogurt, cereal and even crisps and snacks              allows for some indulgence via variants like Special
 MBL trading manager, Lyana Doyle, highlights the        – the grocery brands that are selling well are those           K Bliss Strawberry & Chocolate.
 soft drinks trends                                      with a healthier product proposition.                             Leading cereal brand Weetabix is making similar
 24 DIDN’T THEY DO WELL                                    This unique ranking of leading UK grocery                    noises with the launch of a new chocolate variant
 Checkout highlights the success of the brands we        brands reveals real fruit smoothie brand Innocent              in its product portfolio this year.
 tipped last year                                        has entered the Top 100 for the first time, at                    Innocent is another brand ticking the premium,
 26 ONES TO WATCH                                        number 63, and is the fastest growing brand with               indulgent and good-for-you boxes; while frozen
 We tip some of the fastest growing brands that fall     sales up 139.9% last year to £96.3m.                           pizza brand Goodfella’s (49th and up 25.7%) has
 just outside the Top 100 list                             Danone Bio Activia, a yogurt designed to reduce              grown via its premium positioning in a category,
                                                         digestive bloating and tipped by Checkout as a                 which is in decline overall.
                                                         brand to watch last year, also enters the Top 100                 And in non-food, Andrex (7th and up 5.2%) has
                                                         for the first time at 60. It is the second fastest             found brand growth with the launch of more
                                                         growing brand with sales up by 77.2% in 2006 to                luxurious paper lines.
                                                           £97.9m.                                                         As well as trends, Checkout’s Top 100 Grocery
                                                             In the soft drinks sector, it is the water brands          Brands report highlights several individual brand
                                                         Volvic and Evian, ranked 30th and 56th respectively,           success stories.
                                                          and fruit juices such as Tropicana, 11th, which are              Included is Warburtons, which has consolidated
                                                         growing strongly, ahead of their carbonated rivals.            its number two brand position in the league with
                                                           Coca-Cola, however, hangs on to the number                   17.7% growth, and is still to reap the full benefit
                                                         one slot with sales growth of 5%, but largely fuelled          of national distribution.
                                                         by the launch of its Coke Zero, no added sugar                    Hovis deserves special mention too. It has leap-
                                                         brand. Elsewhere, energy drinks Red Bull and                   frogged Cadbury Dairy Milk in 2006 to become
                                                         Lucozade have continued to deliver strong growth               the fourth biggest grocery brand with sales up by
                                                         via a mix of new variants and creative marketing.              16.1%.
                                                           Even the best selling hot beverages brands have                 Yeo Valley also stands out. With sales growth of
                                                         found a ‘health’ angle to hang their hats on. Top              25% last year, it is the first organic brand to enter
 Cover photo: Michael Pilkington                         tea brand Tetley (36th in the league), for example,            the Top 100 league, at number 88. Like other
 Model brands: Coca-Cola (1), Warburtons (2),            has grown in a mature market and is now empha-                 players in the league, it is benefiting from the trend
 Hovis (4), Tropicana (11), Volvic (30), Weetabix        sising the antioxidant properties of tea. Twinings,            to more natural and wholesome products, as well
 (42), Kellogg’s Special K (54), Danone Bio Acitvia      also tipped as a brand to watch last year, sneaks              as winning buy-in from shoppers seeking the addi-
 (60), Innocent (63), Uncle Ben’s Rice (66), Bakers      the 100th brand position, capitalising on sales of             tional attributes of organic products. These are all
 (78), Cravendale (79), Yeo Valley Organic (88),         its fruit and herbal teas range.                               pointers for future brand success and it is my guess
 Twinings (100)                                            And 2006 has been a turnaround year for the                  it won’t be too long before a Fair Trade brand makes
                                                         UK’s leading crisps and snacks brand, Walkers. It              the Top 100 Grocery Brands league as the rise of the
                                                                                                                        so-called conscious consumer continues unabated.
                          TOP 100 GROCERY BRANDS          Editor: Fiona Briggs                                             The Top 100 Grocery Brands report provides a
                          is a supplement to Checkout     Contributors: Mike Dennis, Martin Gurdon, Andrew              compelling checklist of the key attributes shaping
                          and Independent Retail News.    Skingley, Camille Smith                                       brand success.
 Published by Nexus Business Media, Media House,          Group sales manager: Emma Beaglehole                             In no particular order they are health, func-
 Azalea Drive, Swanley, Kent BR8 8HU. All rights          Portfolio sales manager: Andrew Powell                        tionality, premium, indulgent, organic, convenient
 reserved by Nexus Business Media, reproduction in        Key account executive: Lucy Pierce,                           and savvy.
 whole or part without written permission is strictly     Sales executives: Sacha Burek, Scott Seabrook,                   It also shows how established brands can tick
 prohibited. Printed by Headley Brothers Ltd, Ashford,    Ben Webb                                                      those boxes to grow further, but also that newer
 Kent.                                                    Business sector manager: Helen Baldock                        players can very quickly make their mark.
MARCH 2007 www.checkoutmagazine.co.uk                                                                                                                       TOP100 GROCERY BRANDS           3
                                                                                                * Top 100 value figures on this page have been rounded to the nearest tenth of a million.
                                                                                                                                 MARKET COVERAGE
TOP100 GROCERY BRANDS                                                                                                            NIELSEN SCANTRACK UNIVERSES




     The Top 100 can                                                                                                             NO OF STORES AS OF JUNE 2006
                                                                                                                                 TOTAL COVERAGE GB
                                                                                                                                 TOTAL GROCERY MULTIPLES
                                                                                                                                 TOTAL CO-OP GROCERS
                                                                                                                                                                      74,042
                                                                                                                                                                        6,452
                                                                                                                                                                        3,156


     save the planet                                                                                                             TOTAL MULTIPLE FORECOURTS
                                                                                                                                 TOTAL MULTIPLE OFF-LICENCES
                                                                                                                                 TOTAL SYMBOL GROUPS
                                                                                                                                 TOTAL INDEPENDENTS
                                                                                                                                                                        2,846
                                                                                                                                                                        3,201
                                                                                                                                                                        7,562
                                                                                                                                                                       47,359
                                                                                                                                 TOTAL OTHER IMPULSE                    3,466
     Brands looking after the nation’s wellbeing have done
     well in 2006. The trend for the future will be even                                                                         GROCERY MULTIPLES
                                                                                                                                 ASDA                                    281
     more demanding of manufacturers                                                                                             ICELAND                                 670
                                                                                                                                 JACKSONS                                117
                                                                                                                                 MARKS & SPENCER                         405
                                                                                                                                 MORRISONS                               374
                    INSIGHT                                                                                                      NETTO                                   147
                   Eleni Nicholas, group managing director,                                                                      OTHER GROCERY MULTIPLES                 903
                   UK & Ireland, ACNielsen                                                                                       SAINSBURY’S CENTRAL                      17
                                                                                                                                 SAINSBURY’S LOCAL                        80
                                                                                                                                 SAINSBURY’S STORES                      445
                               a successful                                                                                      SOMERFIELD                              977

     What                      year Britain’s
                               Top 100
     grocery brands have enjoyed.
                                                                                                                                 SOMERFIELD/ELF
                                                                                                                                 T&S CONVENIENCE
                                                                                                                                 TESCO EXPRESS
                                                                                                                                                                          18
                                                                                                                                                                         516
                                                                                                                                                                         637
     Sixty seven of the 100                                                                                                      TESCO EXTRA                             115
     brands are in growth, 29 of                                                                                                 TESCO METRO                              99
     these in double or triple                                                                                                   TESCO SUPERSTORES                       478
     digit growth. Three brands                                                                                                  WAITROSE                                173
     have grown their business                                                                                                   TOTAL                                 6,452
     more than £50m, and one,
     has added over £77m to its                                                                                                  CO-OPS
     sales in 2006. In total, the Top                                                                                            ALLDAYS                                  132
     100 accounted for over                                                                                                      BALFOUR                                   68
     £14bn worth of sales                                                                                                        THE CO-OPERATIVE GROUP                 1,427
     – that’s almost 20% of                                                                                                      UNITED CO-OP                             498
     the whole food and                                                                                                          OTHER CO-OPS                           1,031
     beverage grocery market                                                                                                     TOTAL                                 3,156
     in 2006, including own
     label.                                                                                                                      MULTIPLE FORECOURTS
       As predicted, health has                                                                                                  BP                                       195
     once again dominated the                                                                                                    BP CONNECT                               167
     consumer’s agenda and our                                                                                                   ESSO                                     447
     food industry has responded                                                                                                 Q8                                        26
     accordingly         with       many                                                                                         TOTAL FINA ELF                           333
     manufacturers and retailers funda-                                                                                          OTHER FORECOURTS                       1,678
     mentally changing their products                                                                                            TOTAL                                 2,846
     to provide a healthier offering. Salt
     reduced. Fat reduced. Sugar reduced. Trans fats                                                                             MULTIPLE OFF-LICENCES
     out. Artificial additives out. We have seen major                     second biggest brand and                              THRESHER GROUP                         2021
     retailers move away from promoting on price,                          its formidable growth in the past 12 months has       MAJESTIC WINE                           125
     rather choosing to promote on healthy eating.                         now tipped its sales over the half-billion pound      ODDBINS                                 267
     Many have embraced the 5-a-day message and –                          mark.                                                 WINE CELLAR                             186
     debates on formats aside – all have made efforts                        So what does 2007 hold for food manufactur-         OTHER MULTIPLE OFF-LICENCES             602
     to label their food more clearly.                                     ing and retailing? I think consumers’ concerns        TOTAL                                 3,201
       Manufacturers too have made great inroads and                       about themselves will turn outwards and the
     as we can see, the brands that have fared particu-                    health of our planet and its people will be on        INDEPENDENTS
     larly well in this year’s Top 100 have embraced the                   everyone’s agenda. We are seeing major super-         INDEPENDENTS LICENCED                 26,198
     health issue. Last year we barely had a smoothie                      markets leading the way in British industry by        INDEPENDENTS SPECIALIST                5169
     category and Innocent, though showing strong                          implementing green initiatives and pledging to        INDEPENDENTS UNLICENCED               15,992
     growth, was millions of pounds away from making                       cut emissions. Sourcing principles such as buying     TOTAL                                47,359
     the list. This year the trailblazing brand entered at                 British, buying local or buying sustainable fish
     63, topped the tables in terms of growth and has                      stocks, which are already in place, will become       OTHER IMPULSE MULTIPLES
     driven the category into the mainstream. It’s a                       more widespread. Using recycled bags and              DILLONS                                 176
     perfect example of a product that fulfils the needs                   packaging will become more important. Devel-          FORBUOYS                                392
     of today’s consumer.                                                  oping supply chain initiatives that work on           MARTINS                                 442
       But it’s not just the infants of the market who                     emission reductions will be key for manufactur-       MCCOLLS                                 121
     have built their growth on improving our nation’s                     ers in helping retailers achieve their pledges.       RS MCCOLLS                              153
     well being. A category as basic and familiar as bread                 Stocking fair trade, organic and free range will be   WHSMITH                                 540
     has enjoyed huge growth. The wholemeal-white                          key. Consumers are developing a conscience and        WOOLWORTH                               801
     sector and granary, seeded, and fortified versions                    in 2007 the grocery industry will rise to this new    OTHER IMPULSE MULTIPLES                 841
     all contributing. Warburtons is our country’s                         challenge.                                            TOTAL                                 3,466


 4   TOP 100 GROCERY BRANDS                                                                                                              www.checkoutmagazine.co.uk MARCH 2007
     * Top 100 value figures on this page have been rounded to the nearest tenth of a million.
TOP100 GROCERY BRANDS
              COCA-COLA
                                                                           Battle of the bread brands
     1       2006
             2005
                                        £942.4m
                                        £897.2m
                                                                                    WARBURTONS                                            HOVIS

                                                                          2                                                       4
             yoy change                     5.0%
     all variants of Coca-Cola including regular,                                 2006                       £514.3m                     2006                       £403.1m
     diet, Zero, Caffeine Free and flavoured                                      2005                       £437.0m                     2005                       £347.4m
                                                                                  yoy change                   17.7%                     yoy change                   16.1%
     Walkers’ fat                                                          all Warburtons branded bread and bakery
                                                                           products such as rolls, crumpets, speciality
                                                                                                                                  all Hovis branded bread and bakery
                                                                                                                                  products such as rolls, crumpets, speciality

     reduction                                                             breads, muffins                                        breads, muffins


     lifts sales                                                           ONCE again Hovis and Warburtons have been
                                                                           slugging it out in the ‘Battle of the breads’ – and
                                                                           both have delivered impressive growth. Hovis sales
                                                                           are up 16.1% and Warburtons up by 17.7% at a
              WALKERS CRISPS

     3
                                                                           time when wrapped bread in total grew by just
            2006                      £424.0m                              9.7%.
            2005                      £407.8m                                “Not surprisingly the growth has come from our
            yoy change                    4.0%                             extended distribution,” says Sarah Miskell, category
     includes Walkers Crisps, Walkers Big Eats,                            marketing controller at Warburtons. “Since July
     Walkers Grab Bags, Walkers Mediterranean,                             last year we have had the ability to supply nation-
     Walkers Lites                                                         ally and have secured distribution with all of the
                                                                           major retailers.”
     IT’S A happy irony for Walkers that public concern                      The missing piece in the ‘Warburtons map’ was
     over fat and salt content in products like its                        south-west England where its share had been 1.8%
     mainstay crisps, which led to a production and                        and now it is 6.9% and Miskell is “delighted”.
     cooking rethink, led to a 4% year end demand                            Distribution is handled by its new depot in
     increase.                                                             Newton Abbot and another bakery in the deep            which offers ‘white bread with all the wheatgerm
       “We switched to cooking in sunseed oil, which                       south looks certain as sales continue to grow.         goodness of wholemeal’, is a classic example. It
     has 70% less saturated fat than olive oil,” says Jon                    “In January this year we launched national TV        was launched in 2001 and now accounts for sales
     Goldstone, the brand’s marketing vice president.                      advertising. That was a first for us – a luxury we     of £100m. Hovis Granary, another newcomer, has
     Then there was a 25% reduction in salt content.                       had not had before.”                                   annual sales of nearly £30m while Invisible Crust
       These improvements were trialed in February,                          While its top-selling Toastie and Blue medium        is also a Hovis success. Launched in 2005 and
     “in a very factual manner,” according to Goldstone,                   sliced remain the core of its business, NPD is also    relaunched this year, it is the world’s first crustless
     and the favourable public response to them helps                      very important to Warburtons. Its All in One loaf,     bread. Brand manager Ifan Jenkins says it has been
     explain why Walkers took the number three slot                        its Healthy Inside probiotic loaf and its Whole-       a phenomenal success with sales amounting to
     in the Top 100 Brands survey.                                         grain Goodness have all grown sales.                   £18m a year.
       He insists the well publicised fat and salt reduction                 “Most importantly we make cracking quality             “The long-term focus is on healthy eating,” adds
     in its regular products has not resulted in a fall off                bread that people come back for,” Miskell says.        Jenkins. “It is all about driving growth and meeting
     in demand for Walkers Lites and Potato Head lines.                      Hovis, too, has been busy with NPD. Best of Both,    consumer needs,” he adds.
     The company also spent heavily on new plant to
     produce Walkers Baked crisps. Launched at the tail
     end of 2006, this lower fat range has found a ready
     market. “It’s going great guns. Taking up to 2% of                    Andrex on a quilted roll
     the market, much more significant than we’d
                                                                                     ANDREX

                                                                           7
     expected, and we only began television advertis-                                                                             “Last year we refreshed the range’s colours.”
     ing in January,” says Goldstone.                                            2006                         £326.6m               He identifies a third element to the brand’s on-
       During the first quarter of this year, promotion                          2005                         £310.6m             going success as marketing, in particular media
     for Walkers products is being tied in with the hugely                       yoy change                      5.2%             campaigns, featuring ever-cuter variations of the
     successful Comic Relief charity event, but                            Andrex dry and moist toilet tissue                     Andrex puppy.
     Goldstone is promising a new, large scale marketing                                                                            “We have a very high commitment to advertise
     push later in the year, although he is reluctant to                   IT’S NOT just foodstuffs that are putting on sales     Andrex throughout the year, and a real consis-
     reveal exactly what this will mean.                                   thanks to a move upmarket, as Andrex marketing         tency with our advertising,” he says. Certainly
       The company is now preparing to launch reduced                      manager Alex Pickering is happy to confirm.            gambolling Labrador pups have become almost
     salt, sunseed oil cooked Monster Munch, Quavers                         According to Pickering, the Andrex Quilts line       generic points of recognition in newspapers and
     and Wotsits. These brands are not in this year’s Top                  has offered “a premium pricing proposition,” and       on television, and there’s an aura of goodwill
     100, but perhaps the move could change that.                          helped with the brand’s broader growth, which          surrounding the brand.
                                                                           has seen it achieve seventh place in the Top 100         “Images are more powerful than words,” reckons
                                                                           brands survey, thanks to a 5.2% sales increase,        Pickering.
              CADBURY DAIRY MILK

     5
                                                                           worth £326.6m.                                                                He suggests these three
            2006                       £361.5m                               Since 2000, when Andrex                                                   elements are as important as
            2005                       £370.8m                             introduced toilet tissue with                                               each other in driving demand
            yoy change                    -2.5%                            aloe vera, this high street                                                 for the Andrex range, and
     all Cadbury Dairy Milk chocolate variants                             staple has widened its appeal,                                              although reluctant to discuss
                                                                           and has continued looking                                                   specifics when it comes to
              NESCAFÉ

     6
                                                                           for fresh ways to do this.                                                  plans for 2007, Pickering is
             2006                       £331.3m                            Pickering insists this isn’t just                                           promising a busy year, which
             2005                       £333.9m                            down to making its paper                                                    will see Andrex working to
             yoy change                    -0.8%                           products posher.                                                            increase the total market for
     all variants including Nescafé Original, Gold                           “The second element is                                                    toilet tissues, as part of a
     Blend, Nescafé Speciality range, Nescafé                              keeping mainstream Andrex                                                   strategy for further improving
     Decaff/Half Caff brands                                               in the public eye,” he says.                                                its own performance.


 6   TOP 100 GROCERY BRANDS                                                                                                                 www.checkoutmagazine.co.uk MARCH 2007
     * Top 100 value figures on this page have been rounded to the nearest tenth of a million.
                                                                                                                           TOP 100 GROCERY BRANDS
Lucozade: consumers buy                                                                                                     BREAD IN STORE
into the experience
                                                                                                                            Ian Cambridge, buyer, bought-in bread and rolls,
                                                                                                                            morning goods and organic, Sainsbury’s


        LUCOZADE

8      2006
       2005
       yoy change

carbonated variants
                                    £296.2m
                                    £254.3m
                                      16.5%
all Lucozade drinks including still and
                                                             level of growth took even us by surprise.”
                                                               According to Kemp, perhaps the biggest driver of
                                                             growth over 2006 has been Lucozade’s investment
                                                             in experiential marketing – “taking the brand to the
                                                             consumer at the moment of need,” he explains. This
                                                             unique approach was taken with both brands in the
LUCOZADE has out-performed the soft drinks                   form of the Lucozade Sport Performance Zone and                                the three largest bread brands all fea-
category with 16.5% growth in 2006 and eclipsed
Robinsons to become the number two soft drinks
                                                             the Lucozade Energy Energising Britain campaign.
                                                               The Performance Zone links with major running
                                                                                                                            With            turing in the top 10 grocery brands,
                                                                                                                            Ian Cambridge, Sainsbury’s new bread buyer, is in
brand in the UK behind Coca-Cola. The brand’s sales          and 5-a-side football events across the country and            no doubt of the enormity of the category he is now
value rocketed to £296.2m in the last year, marking          is staffed by experienced sport scientists to offer            managing. Previously responsible for morning
three consecutive years of significant growth for the        consumers specific advice regarding hydration and              goods and organic at Sainsbury’s, Cambridge took
portfolio of energy drinks.                                  nutrition at the moment of need.                               on his new role earlier this year and will caretake
   Simon Kemp, category director for Lucozade, cites           The Energising Britain campaign takes Lucozade               morning goods and organic until a repacement is
the launch of a new flavour, a boost from good               Energy to consumers at motorway service stations               appointed at the end of March.
weather and the introduction of completely unique            and building sites across 60 of the nation’s cities via           Bread will be an exciting battlefield in 2007, pre-
marketing strategies across both Lucozade Energy             a travelling milk float.                                       dicts Cambridge. Warburtons is the top bread
and Lucozade Sport as the main drivers behind this              “Our departure into experiential marketing is a             brand and number two in the total Top 100 league.
growth.                                                      real landmark,” says Kemp. “It worked fantastically            Last year it extended its lead with sales up by
   “The launch of Lucozade Energy Apple was an               well for us.”                                                  17.7% to £514.3m. Hovis, the number two bread
outstanding success,” he says. “It went from a                 It worked so well, Lucozade is planning more of              brand and fourth largest grocery brand, gained an
standing start to being the third fastest growing            the same for 2007, according to Kemp: “We’ll                   impressive 16.1% to take sales to £430.1m.
flavour (in the portfolio of six) and most of those          continue to invest heavily in experiential marketing,          Kingsmill, the number three bread brand, slipped
sales were incremental, which made a big difference          based on the success of 2006.                                  from eighth to ninth position in the Top 100 in
to Lucozade Energy.”                                           “We see lots of opportunity to keep on growing as            2006 with a 4.9% sales decline. It’s against that
   Though he admits the unusually hot summer “was            we have in the past and believe 2007 will be at least          backdrop the big bread brands will be competing in
a helping hand” in Lucozade’s success,                       as successful as 2006 in terms of level of growth.             2007, says Cambridge.
he only puts about 2% of the brand’s                                       “This year we’ve got the most exciting              Warburtons, now benefiting from national distri-
growth down to the weather. And, he                                       set of brand plans that I’ve ever been            bution, is poised to grow, he says.
is quick to point out the scorching                                       involved in. We’ve got a major re-launch             “Warburtons doesn’t promote its bread. Warburtons
temperatures of July were a                                                  in Lucozade Energy coming up. In               growth has come from selling good quality bread
challenge, as well as an opportu-                                             Sport, we are launching new and               that consumers are liking. Warburtons will continue
nity for the brand.                                                          improved flavours at the back end of           to grow its market share.
   “When the weather was as hot as                                          the first quarter. Then later in the year          “Hovis and Warburtons are both very similar in
it was, it put a lot of pressure on the                                      we’ve got a new variant under Sport.           what they are offering the consumer – healthy whole-
supply chain,” he explains. “We                                                “Plus, we have a long and success-           someness and very family oriented,” says
had to cope with a 30% growth in                                             ful association with the FA Premier            Cambridge, “but Hovis is going to have to be very
Lucozade Sport year-on-year – an                                             League which will continue. These              proactive in not having Warburtons pinch market
incredible level of demand. We                                               prospects leave us very excited about          share. Then you have Kingsmill, whose market share
forecast strong growth, but that                                              this year.”                                   has slid, but it is going to be coming back with a ven-
                                                                                                                            gence in the next month, so watch out Hovis again.”
                                                                                                                               Inflation and rising wheat prices in particular, are
        KINGSMILL                                                        ROBINSONS

9                                                            10
                                                                                                                            also set to impact the sector this year, forecasts
       2006                        £282.3m                              2006                    £277.3m                     Cambridge. “It will be interesting to see what hap-
       2005                        £296.9m                              2005                    £265.0m                     pens to actual consumption,” he says.
       yoy change                     -4.9%                             yoy change                 4.6%                        The trend to healthier eating will also continue to
all Kingsmill branded bread and bakery                       all Robinsons juice drinks including                           play out in the category. “There’s a general move
including rolls, crumpets, speciality breads                 dilutable and ready to drink                                   towards more healthy products such as bagels and
                                                                                                                            wraps,” he says. “Customers are also becoming
                                                                         TROPICANA

                                                             11
 Kingsmill is looking to reverse the sales decline of 2006                                                                  more aware of high carb and super foods like oats.”
 and consolidate its position as a top 10 grocery brand                  2006                          £222.5m                 These trends have fuelled sales of products such
 this year with a £14m relaunch of its brand. It compris-                2005                          £174.6m              as Hovis’s Best of Both, which both other leading
 es a new product formulation, a bigger loaf, clear seg-                 yoy change                      27.4%              bread brands have subsequently mimicked.
 mentation between six new sub-brands and new pack-                                                                         Sainsbury’s has also launched an own label version
                                                                         PERSIL LAUNDRY

                                                             12
 aging. It will be supported by a £10m advertising cam-                                                                     called Whole and White.
 paign featuring Kingsmill’s first 60-second TV commer-                   2006                  £217.0m                        “The good old fashioned sliced white loaf will fall
 cial. The six sub brands are: Kingsmill Great Everyday,                  2005                  £218.0m                     away in the future,” forecasts Cambridge. “I’m
 Kingsmill Head Start, Kingsmill 50/50, Kingsmill Crusts                  yoy change               -0.4%                    amazed at things like wraps – I eat them for lunch
 Away!, Kingsmill Good as Gold and Kingsmill Toastie.        all Persil laundry products including powder,                  rather than a pre-packed sandwich and, with a Be
 Jon Wilson, marketing director at parent Allied             tablets, tabs and liquid                                       Good To Yourself filling, they don’t have the high
 Bakeries, says: “Our products have been reformulated                                                                       carb content.
                                                                         PEPSI-COLA

                                                             13
 and renamed and divided into distinct sub-brands                                                                              “Consumers are also wanting things with seeds
 which deliver against specific consumer needs and                      2006                    £216.3m                     in,” adds Cambridge. “We have launched a seeded
 make choice easier for shoppers. We are dedicated to                   2005                    £227.2m                     pitta bread which is doing very well and sub brands
 growing the bakery category with our long term vision                  yoy change                -4.8%                     like The Food Doctor have moved into bakery. It’s
 and see 2007 as a very exciting year for Kingsmill.”        all Pepsi products including Diet and Max                      all adding to the healthy trend.”


MARCH 2007 www.checkoutmagazine.co.uk                                                                                                                           TOP100 GROCERY BRANDS           7
                                                                                                    * Top 100 value figures on this page have been rounded to the nearest tenth of a million.
TOP100 GROCERY BRANDS
                                                                                                                                     Tetley:
                    WHISKAS                                                                  BIRDS EYE FROZEN FISH
                                                                                                                                     aiming to be
     14             2006
                    2005
                    yoy change

                    PEDIGREE PETFOOD
                                                      £216.1m
                                                      £196.8m
                                                         9.8%             27                 2006
                                                                                             2005
                                                                                             yoy change

                                                                                             HEINZ SOUPS
                                                                                                                      £158.8m
                                                                                                                      £139.1m
                                                                                                                        14.1%
                                                                                                                                     everyone’s
                                                                                                                                     cup of tea
     15             2006
                    2005
                    yoy change

                    FLORA
                                                      £192.0m
                                                      £187.3m
                                                         2.5%             28            2006
                                                                                        2005
                                                                                        yoy change
                                                                                                             £156.5m
                                                                                                             £160.4m
                                                                                                               -2.4%
                                                                           includes all Heinz soups including Weight                 36
                                                                                                                                                    TETLEY
                                                                                                                                                    2006
                                                                                                                                                    2005
                                                                                                                                                    yoy change
                                                                                                                                                                              £132.8m
                                                                                                                                                                              £129.1m
                                                                                                                                                                                 2.8%



     16
                                                                           Watchers from Heinz
                    2006                              £185.2m                                                                        TETLEY has extended its
                                                                                             RIBENA

                                                                          29
                    2005                              £179.1m                                                                        lead as Britain’s number
                    yoy change                           3.4%                                2006                     £153.0m        one tea brand with 2.8%
                                                                                             2005                     £152.6m        sales growth in 2006 to
                    MÜLLER CORNER

     17
                                                                                             yoy change                  0.3%        £132.8m.
                    2006                              £183.2m                                                                          “We’ve been number
                                                                                             VOLVIC

                                                                          30
                    2005                              £177.9m                                                                        one for a few years now
                    yoy change                           3.0%                                2006                     £148.2m        and expect to be number
                                                                                             2005                     £131.1m        one going forward,” says Attfield: passion for tea
                    MCCAIN FROZEN CHIPS

     18
                                                                                             yoy change                 13.1%        Simon Attfield, customer
                    2006                              £182.2m                                                                        marketing controller. “It demonstrates our commit-
                                                                                             MR KIPLING CAKES

                                                                          31
                    2005                              £169.9m                                                                        ment to the whole tea category – we only do tea
                    yoy change                           7.3%                                2006                     £147.1m        and we are absolutely passionate about tea.”
                                                                                             2005                     £135.3m          Attfield credits the brand’s gains to its loyal
                    LURPAK

     19
                                                                                             yoy change                  8.7%        following, “the quality and reassurance” of the
                    2006                              £175.8m                                                                        Tetley name and for fulfilling its mission to be
                                                                                             YOUNG’S FROZEN FISH

                                                                          32
                    2005                              £164.6m                                                                        “everyone’s cup of tea”.
                    yoy change                           6.8%                          2006                £146.4m                     Key to the brand’s success has been Tetley’s ability
                                                                                       2005                £146.1m                   to encourage consumers to widen their repertoire
                       HEINZ BAKED BEANS

     20
                                                                                       yoy change             0.2%                   across different types and flavours of tea such as
                 2006                  £175.2m                             includes Young’s, Young ‘Uns, Young’s Chip                fruit and herbal, speciality, decaff, green and the
                 2005                  £169.7m                             Shop and Young’s Harry Ramsdens                           recently launched, Redbush.
                 yoy change               3.3%                                                                                         “We want to let people know how wonderful tea
                                                                                             PRINGLES

                                                                          33
     includes Heinz original, Barbecue, Curried,                                                                                     is and that it’s for any occasion,” says Attfield.
     Healthy Balance, Microwaveable, Organic                                           2006                   £141.7m                  Attfield claims Tetley’s matter of fact and down
     and Weight Watchers Baked Beans                                                   2005                   £123.7m                to earth personality is helping to take shoppers to
                                                                                       yoy change               14.6%                sectors of teas they have previously seen as out of
                       ARIEL

     21
                                                                           includes Pringles, Pringles Minis, Pringles               their domain. Tetley’s Extra Strong tea, for instance,
                       2006                           £174.2m              Dippers, Pringles Ridges, Pringles Right                  was born out of research, which showed some tea
                       2005                           £185.2m                                                                        drinkers like stronger tea and were leaving their
                                                                                             KITKAT

                                                                          34
                       yoy change                       -5.9%                                                                        tea bags in for longer for a stronger taste. The Tetley
                                                                                         2006                         £140.5m        product provides the strength they seek but without
                       BERNARD MATTHEWS

     22
                                                                                         2005                         £141.2m        the stewed taste, says Attfield.
                       COOKED MEAT                                                       yoy change                     -0.4%          “It is a very mature market,” he adds, “and very
                      2006                            £173.6m              all Kitkat variants                                       competitive. Previously, half of everything that was
                      2005                            £185.6m                                                                        drunk was tea. Now there’s a large repertoire of drinks
                                                                                             RED BULL

                                                                          35
                      yoy change                        -6.5%                                                                        out there. We need to show people that if they don’t
                                                                                             2006                     £139.1m        want caffeine before bed, for example, they don’t
                       WRIGLEY’S

     23
                                                                                             2005                     £124.9m        have to revert away from tea – they can have decaff
                       EXTRA                                                                 yoy change                 11.4%        or Redbush, tea still has a place for them.”
                  2006                £169.4m                                                                                          And Attfield can even provide a healthy hook to
                  2005                £166.1m                               Four years ago about 70% of Red Bull’s sales were        hang Tetley’s tea bags on. Tetley, he says, has been
                  yoy change               2%                               generated in pubs, bars and clubs. Now the reverse       campaigning to dispel the myth tea has a high
     includes Wrigley’s Extra gum, mints and                                is true, and 2006 saw it enjoy a sixth year of double    caffeine content and therefore acts as a diuretic.
     breath strips                                                          digit sales growth.                                      “Tea, like water, is hydrating, and it’s a rich source
                                                                              “It was a trendy product, very much in top end         of antioxidants. It’s also low calorie and no calorie
                       BOLD

     24
                                                                            bars, but the danger was that it would just be           without milk and a natural product, so tea is fulfill-
                       2006                           £166.9m               drunk on nights out,” says head of marketing             ing the health trend that people buy into and we
                       2005                           £151.4m               Imogen Puddock. “We had to get people to under-          are communicating those messages.”
                       yoy change                       10.2%               stand the drink’s functionality.                           Like other Top 100 brands, Tetley finds health is
                                                                              “We went back to basics with our marketing and         gaining momentum with sales of its decaff tea, for
                       FELIX

     25
                                                                            commercial strategies,” says Puddock, adding that        instance, up 11% and taking 36% share of the
                       2006                           £161.5m               the product scored 81% in research for sponta-           decaff market. Again, explains Attfield, it’s about
                       2005                           £170.6m               neous brand awareness.                                   providing products to meet specific needs and
                       yoy change                       -5.3%                 With a slick mix of sponsorship from the Red Bull      being “everyone’s cup of tea”.
                                                                            Academy, intended to help future sporting talent, to       That message will be pushed throughout 2007
                       GALAXY

     26
                                                                            sponsoring motor racing and a branded stunt air-         and a via a new advertising campaign.
                       2006                           £159.2m               craft team – the subject of a spin off Channel 4 tele-     “We want to make sure people know there are
                       2005                           £142.5m               vision series – and public tastings involving drivers    teas there for whatever they need, not just a staple
                       yoy change                       11.7%               in liveried Minis (1.5m people will sample the brand     tea day in and day out or even one tea for the whole
                                                                            as a result), Red Bull looks set for a busy 2007.        family. We want to make sure people have the right
                                                                                                                                     tea for what they are looking for.”
 8   TOP100 GROCERY BRANDS                                                                                                                      www.checkoutmagazine.co.uk MARCH 2007
     * Top 100 value figures on this page have been rounded to the nearest tenth of a million.
                                                                                                                                                    PRINCES CANNED FISH
TOP100 GROCERY BRANDS
                       PG TIPS                                                               DAIRLYEA
                                                                                                                                     48             2006
                                                                                                                                                    2005
                                                                                                                                                    yoy change
                                                                                                                                                                                £104.9m
                                                                                                                                                                                £101.9m
                                                                                                                                                                                   2.9%



     37                2006
                       2005
                       yoy change

                       FANTA
                                                      £128.2m
                                                      £127.9m
                                                         0.2%              43                2006
                                                                                             2005
                                                                                             yoy change

                                                                                             DOLMIO COOKING
                                                                                                                     £117.3m
                                                                                                                     £115.9m
                                                                                                                        1.2%
                                                                                                                                     49
                                                                                                                                                    GOODFELLA’S FROZEN
                                                                                                                                                    PIZZA
                                                                                                                                                   2006
                                                                                                                                                   2005
                                                                                                                                                                                £104.2m
                                                                                                                                                                                 £82.9m



     38                                                                    44
                                                                                                                                                   yoy change                     25.7%
                       2006                           £127.6m                                SAUCES
                       2005                           £139.8m                                2006                    £114.6m         Frozen pizza giant Goodfella’s marketing manager
                       yoy change                       -8.7%                                2005                    £110.2m         Adrian Mooney thinks his company lacks something
                                                                                             yoy change                   4%         – but he’s not complaining.
                       SILVER SPOON

     39
                                                                                                                                        “In an age of global businesses where management
                                                                                             MÜLLER LIGHT

                                                                           45
                 2006                                 £126.8m                                                                        decisions have to go via Switzerland, we have a very
                 2005                                 £148.1m                                2006                    £112.2m         flat management structure, which is manna from
                 yoy change                            -14.4%                                2005                    £137.8m         heaven for a marketer,” says Mooney, who reckons
     includes sugar and sweeteners                                                           yoy change               -18.6%         his business can respond quickly to customer and
                                                                                                                                     retailer demands. He sites a six-week turnaround to
                       MALTESERS                                                             FINISH

     40                                                                    46
                                                                                                                                     re-package its premium La Bottega line as an exam-
                       2006                           £121.0m                                2006                    £111.6m         ple. “Once you’ve set out to do something the whole
                       2005                           £125.3m                                2005                    £113.3m         organisation moves with you.”
                       yoy change                       -3.4%                                yoy change                -1.5%            This responsiveness is one reason why Goodfella’s
                                                                                                                                     market share has grown by 31%, and doubled its
                       JOHN WEST CANNED                                                      ACTIMEL

     41                                                                    47
                                                                                                                                     value in three years.
                       FISH                                                                  2006                    £106.8m            Persuading consumers that frozen, home cooked piz-
                      2006                            £118.9m                                2005                    £116.4m         zas aren’t poor relations of restaurant versions has
                      2005                            £117.6m                                yoy change                -8.2%         helped drive the brand, as has the 2006 launch of Solos’
                      yoy change                         1.2%                                                                        children’s and snacking lines which generated £19.6m.


     Weetabix tops cereals table                                                                                                                   CATHEDRAL CITY

                       WEETABIX                                                                                                      50            2006
                                                                                                                                                   2005
                                                                                                                                                                                  £104m
                                                                                                                                                                                 £86.2m



     42
                                                                           part in this. One of the most recent is Weetabix                        yoy change                     20.6%
                2006                   £118.9m                             Gold, described as a premium product, and made
                2005                   £108.5m                             with white wheat. Its arrival can be seen as part of      In a world where consumers are increasingly look-
                yoy change                 9.6%                            a broader move towards upmarket foodstuffs, and           ing to the exotic, the traditional image of Cathedral
     includes Weetabix original, Organic, Gold                             manufacturers responding to this trend.                   City has helped it stand out.
     and Minis                                                               The 22% demand rise for Weetabix Organic –                 “I think Cathedral City’s marketing has worked
                                                                           claimed to be the market’s top selling organic cereal     very well,” says Richard Tolley, foods division mar-
                       THAT a brand as well known as                       – provides active proof of the importance of health       keting director of Dairy Crest.
                      Weetabix should secure 42nd place                    giving foods in the breakfast products sector.               Tolley reckons this mature cheddar is bought by
                     in our brand listings after increas-                    The 2006 arrival of Oatibix, a cold oat cereal          36% of the population, and enjoys sales equal to
                    ing sales by 9.6%, demonstrates the                    similar in shape to its established wheat-based           its two nearest rivals combined.
                   sheer scale of the market into which                    range mates, also shows the strength of this market,         He credits consistency of flavour and the careful-
                  it sells.                                                with the product taking a combined 2% market              ly considered introduction of Mild and Lighter vari-
                    The company has a 9% volume share                      value share just six months after launch, and             ants for the brand’s gains. “In the mild market,
                 of its market, and is Britain’s number                    bringing new consumers to the brand.                      there hadn’t been much activity before,” he says.
                one cereal brand. Inevitably, Weetabix                       Other developments include redesigning the                 This year the company is rolling out lower fat
     is subject to sustained, high profile promotional                     packs for Weetabix Minis, and increasing pack             Cathedral City Light cheese, which Tolley believes
     activity linked with advertising. The company                         sizes from 450g to 550g.                                  will sell into a potentially huge, untapped market.
     points to its ‘Weetabix Week’ initiative as an                          In marketing terms, the brand has already been          “In the dairy market, 71% of milk sales are for
     example of this, where elements such as sugges-                       subject to another Weetabix Week campaign for             skimmed or semi skimmed. Over half the butter or
     tions for toppings for the cereal were promoted.                      2007. This included television advertising, and its       spread market is held by lower fat products, 68%
       Expanding the brand’s reach has been another                        makers are promising further heavyweight                  of soft cheeses are low fat.”
     factor, with launches of new variants playing a                       marketing initiatives as the year progresses.


                        TREND OVERVIEW                                        Unsurprisingly, he flags up three market ‘levers’
                                                                            for driving brand development. These are ‘health and
                                                                                                                                     Sword and the ever-increasing number of blades
                                                                                                                                     found in their products, and Finish dishwasher tabs,
                       Jonathan Banks, ACNielsen’s business
                       insight director, thinks all the brands in           wellness’ (“people will pay a premium for healthy        which developed from single items to five-in-ones.
                      the Top 100 – and those that aspire to                food, and that extends beyond organics”), snacking       He also namechecks Mars as another generic brand
                      join it – have a generic challenge                    and convenience products come second (“more than         which has moved into new territories.
                                                                            just ready meals you bung in the microwave”), and          As for a consumer backlash against healthy eating,
                                 have a lot of trouble in the               most importantly, premium and indulgence items. A        Banks does not see this as likely, saying the accessi-
      “People                    marketplace increasing the
      value of the profit they can make from their cate-
                                                                            mix of rising living standards and increasingly
                                                                            sophisticated customer tastes have helped here.
                                                                                                                                     bility of ever-cheaper healthy, organic and so-called
                                                                                                                                     ethical foods are finding their way into lower income
      gories,” he says. “There’s some talk of inflation, but                  “There’s a slight contradiction in that people who     shopping baskets.
      for most fast moving consumer goods its deflation.                    want the best also want the cheapest. It’s like going      “Five years ago if you asked people what they
      Whether you’re a manufacturer or a retailer, the best                 away for a long weekend and flying easyJet and           would do to improve their diet, 50% would say ‘eat
      way to get value back is through new product devel-                   staying in a five star hotel. You can see it in shops,   more fruit and veg.’ It’s now 75%.”
      opment (npd).”                                                        with value and premium products in the same bas-           Whatever the sector, he thinks new products
        This is because npd items are launched at a premi-                  kets,” he says.                                          and fresh branding ideas are essential. “Figures
      um. “If you’re a brand, they help you sell more. If                     For well established brands, adding value is the       are bandied about saying 90% of new products fail,
      you’re a retailer, you’d rather have a 20% profit mar-                key to generating interest and sales. He singles out     but that isn’t necessarily anything to be ashamed of.
      gin on something that sells for £1.50 than £1.40.”                    wet shave razor makers Gillette and Wilkinson            Some of these things are just ahead of their time.”


10   TOP 100 GROCERY BRANDS                                                                                                                    www.checkoutmagazine.co.uk MARCH 2007
     * Top 100 value figures on this page have been rounded to the nearest tenth of a million.
TOP100 GROCERY BRANDS
                       FAIRY LAUNDRY                                                         VELVET TOILET TISSUE

     51                2006
                       2005
                       yoy change

                       FAIRY HAND DISHWASH
                                                      £103.9m
                                                       £80.9m
                                                        28.4%             55                 2006
                                                                                             2005
                                                                                             yoy change

                                                                                             EVIAN
                                                                                                                      £101.3m
                                                                                                                      £100.9m
                                                                                                                         0.3%




     52                2006
                       2005
                       yoy change

                       MARS
                                                      £103.1m
                                                      £103.9m
                                                        -0.7%             56                 2006
                                                                                             2005
                                                                                             yoy change

                                                                                             BIRDS EYE FROZEN POULTRY
                                                                                                                      £100.7m
                                                                                                                       £90.4m
                                                                                                                        11.4%
                                                                                                                                    Water brands
                                                                                                                                    ride healthy
     53                2006
                       2005
                       yoy change
                                                      £102.1m
                                                      £100.8m
                                                         1.3%             57                 2006
                                                                                             2005
                                                                                             yoy change
                                                                                                                      £100.7m
                                                                                                                      £114.1m
                                                                                                                       -11.7%       wave of success
                                                                                                                                    THE UK bottled water market remains amazingly

     Kellogg’s gets in shape                                                                                                        buoyant with sales growing at around 10% per year
                                                                                                                                    and the big three brands in the sector – Volvic (up
                                                                                                                                    13.1%), Evian (up 11.4%) and Highland Spring (up
                       KELLOGG’S SPECIAL K

     54
                                                                                                                                    14.4%) – growing ahead of the market.
                 2006                                 £101.6m                                                                          In Volvic and Evian, Danone Waters has two
                 2005                                  £86.7m                                                                       brands now firmly established in the Top 100 at
                 yoy change                             17.2%                                                                       30th and 56th positions respectively. It is not unre-
     does not include cereal bars                                                                                                   alistic to predict that Volvic could be in the top 20
                                                                                                                                    by this time next year.
     KELLOGG’S Special K cereal brand has romped                                                                                       Highland Spring, the leading UK-sourced bottled
     eight places up the rankings in the Top 100 Grocery                                                                            water, remains just outside the Top 100, but the
     Brands league to 54. With sales growth of more                                                                                 brand is poised to make its debut in the elite ranking
     than 17% last year, it is now a £101.6m brand and                                                                              next year if its current rate of growth is maintained.
     hot on the heels of Weetabix, the number one                                                                                      A 2006 market report by Highland Spring high-
     cereal in the UK.                                                                                                              lighted the stranglehold the three main brands
       Kellogg’s sales director Kevin Brownsey says                                                                                 have on the sector, being well represented in all
     Special K, positioned as a shape management                                                                                    pack formats in the leading supermarkets and the
     brand, has benefited from the trend to healthier                                                                               multiple and independent convenience channels.
     eating. “Special K is certainly a brand that enjoys                                                                               The bottled water market in the impulse channel
     growth in periods like this,” he says. However,                                                                                is concentrated in just a handful of leading brands,
     Brownsey claims there are two more important                                                                                   compared to the major supermarkets where there
     factors driving Special K’s growth. First is brand                                                                             are more brands and own-label competing for shelf
     innovation and extending the Special K brand                          Brownsey: healthy indulgence is possible                 space. In impulse, the top three brands –Volvic,
     with new variants such as Special K Bliss Straw-                                                                               Evian and Highland Spring – account for more
     berry & Chocolate, launched earlier this year. A                      says Brownsey, “and it’s good to have it in stores       than six in every 10 bottles sold, compared to a
     further launch is planned for April. Second, says                     in January.”                                             combined 25% share in the major multiples.
     Brownsey, is the brand’s fit with the dual trend for                    The summer campaign was also “incredibly                  Single bottle sales, said the Highland Spring
     health and indulgence. “That’s what Special K does                    successful” last year, he adds, and again works well     report, dominate in the convenience market, while
     brilliantly,” he says. “It’s positioned as a healthy                  in stores. It will be repeated this year and promoted    multipacks are the main packaging format in the
     food but the position of Bliss responds to the need                   alongside a new pack design, which is claimed to         major supermarkets.
     for indulgence as well.”                                              be more feminine and will convey the shape                  The report also says retailers should not ignore new
       Brownsey says “building sustainability” is vital                    message more effectively.                                brands coming on to the market. In 2005, Britvic
     to brand success and cites the execution of Special                     Kellogg’s Crunchy Nut has also performed well          launched Pennine Spring, as well as introducing
     K’s ‘Drop a jean size’ and ‘Slimmer waist for                         for the cereals company, jumping eight places up         Drench into the youth market. Currently Coca-Cola
     summer’ campaigns as key in brand growth.                             the ranking to 76. Sales grew 13% to £78.7m last         and Pepsi-Cola have no representation in the UK
     According to Kellogg’s research, there was 54%                        year. According to Brownsey, Crunchy Nut runs            bottled water market, but, says the report, “it is antic-
     participation in last year’s ‘Drop a jean size’ initia-               well alongside Special K. “As a food, it satisfies the   ipated in the media that this will change in a matter
     tive with 2.8m customers taking part, half of which                   science in ‘Drop a jean size’ but plays more to the      of months”. Coca-Cola could possibly be putting
     were new to the brand, and half saying they would                     taste motif and is more male oriented,” he says.         some time between a product launch and the debacle
     do it again.                                                          “We find the two brands work very well together,         that surrounded the introduction and subsequent
       “It’s the execution of it that is extremely strong,”                particularly as a multi-buy.”                            withdrawal of the Dasani brand in 2004.
                                                                                                                                       The percentage of adults drinking bottled water
                       TREND: CONVENIENCE                                                                                           may have grown from 35% in 2000 to 55% in 2005,
                      Louise Boitoult, business insight director, ACNielsen, on how convenience is                                  but the UK still lags behind many European countries.
                         playing out within the Top 100                                                                             The UK consumption figure stands at 36 litres per
                                                                                                                                    adult per year and that is expected to rise to 47 litres
                we look at the main sectors driving growth                  Frozen Pizza has had a very good year, its premium      by 2009. By comparison, the consumption rates in
      “If       across all grocers we can see several con-
      venience sectors enjoying good sterling growth –
                                                                            positioning has attracted consumers while the over-
                                                                            all category is in decline.
                                                                                                                                    Italy (181 litres), France (150 litres), Spain (132 litres)
                                                                                                                                    and Germany (123 litres) far outstrip those of the
      fresh pasta sauces and soups, sandwiches, salads                         “For some categories the importance of healthy       UK. The UK, in fact, only accounts for a 5.7% share
      dips and dressings and fresh ready meals and pizza.                   eating out-weighs the benefits of convenience, while    of European bottled water consumption.
      “Many of these products are positioned at the premi-                  in others quality is the most important attribute.         Bottled water has around a 55% household pene-
      um end, using quality ingredients, like the New                          “Lurpak Spreadable continues to do well with the     tration rate across the UK. Highland Spring believes
      Covent Garden Soup Company – demonstrating the                        introduction of the Lighter variant. Getting the        the market can grow further, by both persuading
      firm relationship between offering products that are                  balance right across these factors is the key to        some of the 45% of the population that currently do
      of good quality, healthy and convenient. Goodfella’s                  success.”                                               not drink bottled water into the market as well as
                                                                                                                                    encouraging existing consumers to drink more.
12   TOP 100 GROCERY BRANDS                                                                                                                     www.checkoutmagazine.co.uk MARCH 2007
     * Top 100 value figures on this page have been rounded to the nearest tenth of a million.
                                                                                                                                                       www.checkoutmagazine.co.uk

TOP100 GROCERY BRANDS                                                                                                           category insight
METHODOLOGY                          Brand      MAT £000 to...    30 Dec 2005   30 Dec 2006   yoy change   BISCUITS                                                     and holds 11.4%. The shift toward premium coffee is
Data in the Top 100 Grocery     1    COCA-COLA                        897,248       942,391       5.0%     The total biscuits market is worth £1.86bn. Year-on-year     also manifested in the growth of ‘ethical’ coffee, with
Brands report is taken from     2    WARBURTONS                       437,034       514,341     17.7%      value growth slowed from 2% to 1% in 2006.                   Percol (organic) and Café Direct (Fairtrade) growing very
Nielsen's Scantrack Service.    3    WALKERS                          407,770       424,002       4.0%       This slowdown perhaps reflects the consumer desire         strongly. By contrast, granules brands such as Nescafé
Scantrack monitors weekly       4    HOVIS                            347,363       403,126     16.1%      for healthier alternatives to traditional snacks, and the    Original, Maxwell House and Kenco Rappor are
sales from a nationwide         5    CADBURY DAIRY MILK               370,803       361,503      -2.5%     healthier biscuits segment has been the biggest              declining.
network of EPoS checkout        6    NESCAFÉ                          333,913       331,265      -0.8%     contributor to market growth. Indulgent treats and             The other area of growth within the instant coffee
scanners. Coverage includes     7    ANDREX                           310,585       326,646       5.2%     seasonal biscuit assortments have also grown strongly,       sector are mixes such as Kenco Cappio cappuccino.
grocery multiples, co-ops,      8    LUCOZADE                         254,267       296,216     16.5%      demonstrating an increasing demand for indulgence            These products are adding market value through npd.
multiple off-licences,          9    KINGSMILL                        296,880       282,318      -4.9%     products as occasional treats.
independents, symbol            10   ROBINSONS                        265,045       277,285       4.6%       The largest segment of the biscuit market, chocolate       DRINKING YOGURTS
groups and multiple             11   TROPICANA                        174,557       222,471     27.4%      biscuit bars, has suffered the steepest decline year-on-     Overall, this sector saw growth, up 11.3% to £331.4m,
forecourts. For a full          12   PERSIL LAUNDRY                   217,968       217,010      -0.4%     year, down 8.1%. If current trends continue it will not be   largely down to a stream of probiotic product launches
breakdown of the 74,000         13   PEPSI                            227,184       216,343      -4.8%     long before healthier biscuits take a bigger sales share.    aimed at children. These included the Müller Little Stars
stores included in the          14   WHISKAS                          196,763       216,126       9.8%     While crackers and crisp breads posted strong growth in      range, Rachel’s Dairy drinking yogurt and Actimel for
Nielsen Universes, see          15   PEDIGREE                         187,263       191,990       2.5%     2005, they have declined in the past year.                   Kids.
page 4. Nielsen's retail        16   FLORA SPREADS                    179,135       185,237       3.4%       Healthier biscuit sales grew by 10.1% to reach a value       The adult sector was actually down overall, but health
measurement service             17   MÜLLER CORNER                    177,855       183,161       3.0%     of £331m. This segment has seen the strongest npd            promoting lines including Flora, Benecol and Danacol,
provides comprehensive          18   MCCAIN FROZEN CHIPS              169,894       182,249       7.3%     activity: while it represents 18% of value sales in the      which are marketed as having heart-friendly properties,
information on actual           19   LURPAK SPREADS                   164,607       175,838       6.8%     market, it has contributed around 40% of all npd by          all enjoyed increases in demand. Biggest player Actimel
purchases, market shares,       20   HEINZ BAKED BEANS                169,671       175,222       3.3%     value over the year.                                         was in decline due to increased competition, heavy
distribution, pricing and       21   ARIEL                            185,184       174,211      -5.9%       Premium/indulgent lines grew demand by 9.5% to             promotion within the sector and a slow down in growth
promotional activities and is   22   BERNARD MATTHEWS COOKED MEAT     185,607       173,598      -6.5%     reach £143m. This segment has seen much npd activity,        in the adult sub-sector.
the fastest and most            23   WRIGLEY’S EXTRA                  166,054       169,397       2.0%     the biggest contributor being McVitie’s Moments,
accurate monitor of             24   BOLD                             151,414       166,915     10.2%      launched in March 2006.                                      LAUNDRY
consumer sales. Scantrack       25   FELIX                            170,555       161,476      -5.3%                                                                  Laundry products saw little growth (2.7%) in a category
picks up 87p in every £1        26   GALAXY                           142,496       159,157     11.7%      BREAD                                                        where brand development is defined by engaging
spent in UK grocery with full   27   BIRDS EYE FROZEN FISH            139,098       158,755     14.1%      Bread has seen strong value growth in the last year, with    advertising, innovation and successful consumer
scanning inputs. Nielsen's      28   HEINZ SOUPS                      160,403       156,535      -2.4%     total bread and bakery up 7.6%, and now worth £2.5bn.        promotions.
services are always dynamic     29   RIBENA                           152,636       153,046       0.3%     White bread remains the dominant sector, up 7% in the          Both Unilever and Procter & Gamble (P&G) remain
and are constantly being        30   VOLVIC                           131,078       148,214     13.1%      latest year to £1.3bn, driven by the success of ‘white       established players within the category, with P&G’s
improved to reflect the         31   MR KIPLING CAKES                 135,309       147,124       8.7%     plus’ loaves such as Hovis Best of Both, which are able      brands securing it the number one manufacturer share
grocery marketplace. The        32   YOUNG’S FROZEN FISH              146,062       146,355       0.2%     to command a higher price point. Granary bread is now        position.
Top 100 Grocery Brands          33   PRINGLES                         123,666       141,689     14.6%      worth £45m, up 40%, helped by products such as                 The category includes some famous brands, with
survey defines a ‘brand’ as     34   KITKAT                           141,177       140,544      -0.4%     Warburtons Seeded Batch and Hovis Sunflower Granary,         Unilever’s Persil maintaining its top selling position.
every product falling under     35   RED BULL                         124,901       139,120     11.4%      which are well placed to take advantage of current             Convenient laundry product formats such as Liquitabs
a brand banner within a         36   TETLEY                           129,130       132,778       2.8%     consumer health trends.                                      experienced strong growth as laundry powder products
particular category. No         37   PG TIPS                          127,924       128,198       0.2%                                                                  declined. P&G helped support this trend with the
cross category tabulations      38   FANTA                            139,820       127,591      -8.7%     CAKES                                                        introduction of Bold Liquitabs (joining Persil, Ariel and
are included.                   39   SILVER SPOON                     148,087       126,833     -14.4%     The overall market is now worth £975m, representing a        Fairy already in this format).
                                40   MALTESERS                        125,289       120,992      -3.4%     2.2% year-on-year increase.                                    In addition to format developments, new fragrances
                                41   JOHN WEST CANNED FISH            117,571       118,937       1.2%       Driving this growth is the performance of own label,       are becoming increasingly important. Bold has been a
                                42   WEETABIX                         108,466       118,893       9.6%     worth £482m, which is up 3.2%, however branded is            big driver of fragrance development with introductions
                                43   DAIRLYEA                         115,907       117,309       1.2%     also in growth at 1.4%. Own label accounts for 49% of        such as Lavender and Camomile and Apple Blossom and
                                44   DOLMIO SAUCES                    110,218       114,612       4.0%     the cake market.                                             Lime Zest lines, which have enjoyed healthy demand.
                                45   MÜLLER LIGHT                     137,812       112,177     -18.6%       Within the branded sector top brand Mr Kipling               Retailer-branded products continued to grow within
                                46   FINISH                           113,330       111,632      -1.5%     remains dominant, the lines within the brand showing         laundry sector, a trend seen in the wider homecare
                                                                                                                                                                                                                                    YOUR PULL OUT AND KEEP TOP 100 GROC
                               47 ACTIMEL                        116,406   106,835    -8.2%   mixed performances. Angel Slices continues to show              products market.
                               48 PRINCES CANNED FISH            101,880   104,863     2.9%   good growth, however French Fancies has declined.
                               49 GOODFELLA’S FROZEN PIZZA        82,887   104,177    25.7%                                                                   SOFT DRINKS
                               50 CATHEDRAL CITY                  86,228   103,954    20.6%   CEREALS                                                         Soft drinks have enjoyed strong sales growth – up 8% to
                               51 FAIRY LAUNDRY                   80,933   103,921    28.4%   Cereals enjoyed steady value growth, up 5.4% to £1.3bn.         over £5.9bn – partly driven by the continued success of
                               52 FAIRY HAND DISHWASH            103,883   103,116    -0.7%   The growth within the ready-to-eat market, which is up          premium products like smoothies.
                               53 MARS                           100,807   102,125     1.3%   5.4% and worth £1.16bn, has come from staples such                This accounts for the slower, 2% volume growth in
                               54 KELLOGG’S SPECIAL K             86,694   101,593    17.2%   as Weetabix and Kellogg’s Crunchy Nut. Npd has also             soft drinks. Smoothies themselves enjoyed an
                               55 VELVET TOILET TISSUE           100,918   101,261     0.3%   played an important role, with Kellogg’s Coco Pops              impressive 102% growth, helped by consumer demand
                               56 EVIAN                           90,415   100,714    11.4%   Straws contributing significantly to the children’s market      for products offering both health benefits and
                               57 BIRDS EYE FROZEN POULTRY       114,069   100,678   -11.7%   since its launch. Kellogg’s Special K also continues to         convenience. It is these buyer trends that are central to
                               58 SCHWEPPES                       96,150    99,041     3.0%   drive category growth through brand extensions.                 the macro movements within the soft drinks category;
                               59 GINSTERS SAVOURY PASTRIES       87,051    98,875    13.6%     Hot cereals are continuing to grow in popularity, up          with health and indulgence being particular drivers.
                               60 DANONE BIO ACTIVIA              55,303    97,987    77.2%   5%, and is now worth £102m as a category. Instant                 Consumers are increasingly treating themselves to
                               61 COMFORT                         98,728    97,018    -1.7%   products, like Quaker’s Oatso Simple, have combined the         adult drinks (up 6%) and seeking added value from
                               62 HEINZ KETCHUP                   92,993    96,569     3.8%   trend for convenience with the growing popularity of            functional products (up 18%), while embracing the
                               63 INNOCENT                        40,135    96,273   139.9%   oats, successfully driving this sector.                         health benefits of juice, dairy and water products (all
                               64 PORK FARMS SAVOURY PASTRIES    102,306    95,001    -7.1%                                                                   showing healthy growth). The traditional categories of
                               65 AIRWICK                         90,163    92,946     3.1%   CHILLED YOGURTS AND DESSERTS                                    fruit carbonates, non-fruit carbonates and lemonade are
                               66 UNCLE BEN’S RICE                68,551    90,158    31.5%   Currently worth £1.6bn, this sector enjoyed 2.9% year-on-       suffering in today’s health focused market.
                               67 KENCO INSTANT COFFEE            88,917    88,781    -0.2%   year growth, generating an additional £44.5m in 2006.             Coca-Cola remains out in front in terms of size. A
                               68 LENOR                           91,874    85,722    -6.7%      Functional and organic lines have driven increases of both   changing pack mix and the launch of “Zero” are among
                               69 IRN-BRU                         80,997    85,574     5.7%   yogurt and fromage frais products, with Müller Vitality,        the factors driving brand growth of 5% to £942.4m.
                               70 BIRDS EYE FROZEN READY MEALS   108,234    85,519   -21.0%   Danone Bio Activia, Yeo Valley Organic, Rachel’s Organic          Innocent products have rocketed in the smoothie
                               71 MCCOY’S                         79,105    85,358     7.9%   and Flora products achieving the biggest sales increases.       market, with a year-on-year growth of 139.9% to a brand
                               72 DAZ                             85,210    85,083    -0.1%   Total demand for organic yogurts was up by 19%.                 value of £96.3m. Other successes include Britvic’s J2O,
                               73 BIRDS EYE FROZEN VEG            81,348    82,229     1.1%      Other successes in this sector also included kids’           Müller Vitality, Tropicana and Highland Spring, all of
                               74 KLEENEX                         79,727    79,856     0.2%   brand Munch Bunch Squashums, launched in a revised              which are well positioned to take advantage of
NIELSEN                        75 RICHMOND SAUSAGES               75,779    78,808     4.0%   format last summer, the variants including fromage frais.       developing consumer trends. Of the flavoured carbonates
The Top 100 Grocery            76 KELLOGG’S CRUNCHY NUT           69,639    78,677    13.0%      Bio yogurts saw a 42% sales rise. Danone’s Bio Activia       market, both Sprite and Irn-Bru have had a great year.
Brands was compiled by         77 WALKERS SENSATIONS              83,548    77,995    -6.6%   line contributed to nearly half of all chilled yogurts and        Brands will succeed if they are able to either take
the Nielsen Company            78 BAKERS PETFOOD                  64,656    77,229    19.4%   desserts growth, enjoying a 77.2% demand increase.              advantage of consumer trends (e.g. Tropicana) or
exclusively for Nexus          79 CRAVENDALE MILK                 64,159    77,014    20.0%   Promotion of Müller’s Vitality increased significantly in       maintain a loyal consumer base despite wider sales
Business Media. All data       80 DORITOS                         71,318    75,831     6.3%   2006.                                                           trends (e.g. Irn-Bru). The techniques employed to do this
remains the intellectual       81 HELLMANN’S MAYONNAISE           71,821    75,494     5.1%      Some 37% of chilled non-organic yogurts (and                 remain challenging for retailers and
property of ACNielsen and      82 ANCHOR SPREADS                  74,574    75,349     1.0%   desserts) were sold with promotions such as BOGOFs or           manufacturers alike.
The Nielsen Company. No        83 PETIT FILOUS                    76,746    75,011    -2.3%   with two-for-one offers. Standard diet yogurt sales
                                                                                                                                                                                                                          OCERY BRANDS LEAGUE TABLE




reproduction of this list or   84 QUALITY STREET                  74,039    73,111    -1.3%   declined by 11%, a trend reflected in the amount of
the data within, full or in    85 BASSETTS CONFECTIONERY          76,784    72,692    -5.3%   promotion and distribution given over to the lines by
part, is permitted without     86 GLADE                           72,166    72,593     0.6%   retailers. However, Danone still invested in the sub-
prior consent of the Nielsen   87 CADBURY CAKES                   64,512    72,476    12.3%   category last year with its successful launch of Shape
Company.                       88 YEO VALLEY ORGANIC              57,549    71,914    25.0%   Lasting Satisfaction in April 2006.
                               89 MAGNUM                          63,498    71,821    13.1%
                               90 HARIBO GUMS AND JELLIES         71,817    71,667    -0.2%   COFFEE
                               91 TWIX                            74,969    71,243    -5.0%   The instant coffee category is a mature market currently
                               92 BISTO                           69,278    70,763     2.1%   worth £565.7m showing a slight decline of 0.8%.
                               93 HEINZ CANNED PASTA              70,291    69,408    -1.3%     The major trend of recent years has been a move
                               94 AERO                            66,547    69,345     4.2%   away from granules like Nescafé Original and
                               95 HULA HOOPS                      58,052    68,930    18.7%   Maxwell House, towards premium and higher
                               96 CADBURY ROSES                   67,026    67,991     1.4%   quality freeze dried (Nescafé Gold Blend, Kenco Really
                               97 CLOVER SPREADS                  65,921    67,945     3.1%   Rich, Carte Noire). In the last year, freeze dried has
                               98 FLASH                           67,676    66,968    -1.0%   overtaken granules in volume terms. The Nescafé range
                               99 CHICAGO TOWN FROZEN PIZZA       80,207    65,876   -17.9%   dominates the UK market, with 58% share in total.
                               100 TWININGS                       58,424    64,809    10.9%   Kenco holds 15.7% while own label is growing quickly
                                                                                                                        TOP 100 GROCERY BRANDS
               SCHWEPPES BEVERAGES
                                                           Innocent joins the club
58             2006
               2005
                                            £99.0m
                                            £96.1m
                                                                                                                                          INNOCENT

                                                                                                                        63
               yoy change                     3.0%         INNOCENT is arguably the biggest
                                                           success story in the Top 100 this year.                                        2006                             £96.3m
               GINSTERS SAVOURY

59
                                                           Entering the Top 100 from out of                                               2005                             £40.1m
               PASTRIES                                    nowhere, the ‘tasty little drinks’                                             yoy change                       139.9%
               2006                         £98.9m         company has enjoyed sales of over
               2005                         £87.1m         £96m in 2006. The brand has grown                               own label development, and innovation from
               yoy change                    13.6%         by a massive 139.9% to enter the                                established brands.
                                                           ranking at position 63, above the likes                           Asked of Innocent’s strategy for dealing with this,

Danone on                                                  of Irn-Bru, Oasis, Sprite and Dr Pepper.
                                                             “It’s fair to say our plan wasn’t as
                                                                                                                           Mitchell says: “We welcome it. We’re in a strong
                                                                                                                           position in terms of the value we deliver. We put a
message                                                    aggressive as it turned out,” says
                                                           managing director Jamie Mitchell of
                                                                                                                           huge emphasis on our partnerships with the trade.
                                                                                                                           Last year we contributed significant front-of-store
                                                           Innocent’s bold entrance to the Top                             sales for the supermarkets.
               DANONE BIO ACTIVIA

60
                                                           100. “It is amazing, you have to sort                             “We also recognise chilled space is at a premium.”
               2006                         £98.0m         of pinch yourself when you wake up                              Innocent is planning to solve some of that problem
               2005                         £55.3m         and say we are one of the 63 biggest                            by putting its own chillers into stores. “You may have
               yoy change                    77.2%         brands in the UK when we still have                             seen them,” says Mitchell, “they’re grass-covered.”
                                                           grass on the floor of our office and drive around in             Space in the fridge is not the only challenge
          DANONE’S Bio Activia yogurt is a prime           grass-covered vans.”                                          Innocent is likely to face in the coming year. “Growth
          example of an established brand that has           “Innovation is at the heart of our business,” says          at this level will put growing pains on any business,”
          found its market, and enjoyed a huge sales       Mitchell. “Two and half years ago it was just the on-         concedes Mitchell. “We aspire to growth, but also
          boost as a result.                               the-go range. Since then we introduced the                    to stay small. That doesn’t mean we want to be a
            “It’s been the big story for us,” says         take-home one-litre cartons and the kids’ range.”             small player. We say we want to be ‘Europe’s favourite
          Danone’s category strategy manager James         He cites these products as being behind the amazing           little juice company’ and the ‘little’ means how we
         King. “Activia has grown 77.2% in the past        growth Innocent has experienced.                              behave. Maintaining our values is part of that.
year, making it Britain’s fastest growing yogurt brand.      “The future will continue to see us innovate,”                 “We run our business responsibly and genuinely
  “We’ve always known there was a big market,              continues Mitchell. “But, we are not looking to move          care about our customers.” As an example of this,
but up until a couple of years ago we hadn’t found         outside the juice category. We’ve just launched two           Mitchell mentions Innocent’s use of bottles made
the right message for the consumer. Although there         breakfast-occasion products. We are also very proud           of 50% recycled plastic and its cornstarch, commer-
are new variants and flavours, the product hasn’t          of our Superfoods range. They have just gone flying.”         cially compostable eco bottle launched in January.
changed. We’ve just found the right way to                   Mitchell also links distribution and rate of sale to        “Consumers like it, plus it tallies with retailers’ CSR
promote it.”                                               Innocent’s growth. But, he reveals smoothies still            strategies,” he says.
  The broader trend towards healthy eating has             only have 15% household penetration in the UK.                   To cope with its UK-wide distribution and
certainly helped Activia, which has a particular           “We believe there are no real limits in terms of where        European vision, Innocent now employs over 160
following amongst women shoppers. King says its            you can sell smoothies,” says Mitchell. So, it will be        people across Europe. This coming year the company
stomach-settling properties have been a particularly       about driving penetration for Innocent in 2007 and            expects turnover to top the £100m mark.
useful sales lever, as research shows 56% of women         a push to do this through education.                             Mitchell reveals Innocent’s European plan could
suffer digestive discomfort from time to time.               “Our ad campaign, launched in January, focuses              propel the company’s growth even further: “By 2010
  Activia has also been the subject of a successful,       on educating consumers. In smoothies you get the              we would expect Europe to account for 30% of
£10m advertising campaign, with television slots           whole crushed fruit, which delivers more rounded              revenues. Right now it is still under 10%.
at the fore. “It’s one thing to have a product with        health benefits,” says Mitchell. The company hopes               “We put most of Europe about three to four years
a clear consumer benefit, but another to get that          communicating this message to more people will                behind the UK in terms of the smoothie market.
message across,” says King, adding that the third          build growth for the brand in a market that is certain           “We hope to do there what we did in the UK: create
factor in the brand’s rise has been that it tastes nice.   to see increased competition from new entrants,               an army of passionate smoothie drinkers.”
“This is a food product, not a medicine.”
  The brand’s profile has been particularly helped
by fat free variants, which have been around for a
                                                                   CONFECTIONERY IN STORE
                                                                   Christian Whitfield, Premier independent retailer
while, but are gaining in popularity, and the 2005-
launched high fibre version.
  “Once fat free items were almost commodity               Christian Whitfield operates two Premier stores in             Masterfoods created good ‘brand stretch’ with king
products, but now people won’t compromise on               the Bristol area and views confectionery as a very             size variants. And that leads us nicely into category
taste,” says King.                                         important sector of his business.                              management.
  For this year, he suggests retailers can expect a          “We all have to be mindful of what’s going on                   “Category management is becoming increasingly
further broadening of the Activia range, and unsur-        out there. There’s pressure from the schools, gov-             important and we need to redevelop the confec-
prisingly, Danone plans to dig into its pockets for        ernment and health bodies about food colours,                  tionery fixture to meet need states,” adds
a further, major promotional push.                         calories and obesity. But we are always looking for            Whitfield.
                                                           a more ‘health conscious’ brand stretch or new                    “What we are increasingly about is the need
                                                           product range,” he adds, “products which are                   states of customers – and that can change three
               COMFORT

61
                                                           going to generate volume for the manufacturer and              times during the course of a day. A lot of retailers
               2006                         £97.0m         us – not lines which are going to sit on the shelf             are beginning to recognise this even though it may
               2005                         £98.7m         gathering dust.”                                               not suit the corporate/symbol group position.
               yoy change                    -1.7%           Having said all that, he commends Nestlé’s                      “A store near a school might well have pre-
                                                           Chunky Peanut Butter for revitalising a brand that             school customers, then someone who wants
               HEINZ TOMATO KETCHUP

62
                                                           was in “freefall” decline and Kitkat Dark as a good            something for elevenses and, later in the day,
            2006                   £96.6m                  brand extension. Aero Mint Balls is another Nestlé             someone wanting confectionery for the evening,
            2005                   £93.0m                  success.                                                       while they sit and watch TV,” he adds.
            yoy change               3.8%                    He says Cadbury Trebor Bassett has had a year                   As the confectionery market develops so will the
includes Hot, Organic and original Heinz                   of consolidation in that there was less residual               need for new products and packs to suit ever-
Tomato Ketchup                                             stock left in the trade in the New Year while                  changing consumer needs.


MARCH 2007 www.checkoutmagazine.co.uk                                                                                                                        TOP100 GROCERY BRANDS           17
                                                                                                 * Top 100 value figures on this page have been rounded to the nearest tenth of a million.
TOP100 GROCERY BRANDS
                       PORK FARMS SAVOURY                                                    MCCOY’S                                                RICHMOND SAUSAGES

     64                PASTRIES
                      2006
                      2005
                      yoy change
                                                       £95.0m
                                                      £102.3m
                                                        -7.1%
                                                                           71         2006
                                                                                      2005
                                                                                      yoy change
                                                                                                            £85.4m
                                                                                                            £79.1m
                                                                                                              7.9%
                                                                           includes McCoy’s Crisps, McCoy’s Spice,
                                                                                                                                     75             2006
                                                                                                                                                    2005
                                                                                                                                                    yoy change

                                                                                                                                                    KELLOGG’S
                                                                                                                                                                                £78.8m
                                                                                                                                                                                £75.8m
                                                                                                                                                                                    4%




                                                                                                                                     76
                                                                           McCoy’s Specials, McCoy’s & Dip
                       AIRWICK                                                                                                                      CRUNCHY NUT

     65                2006
                       2005
                       yoy change

                       UNCLE BEN’S RICE
                                                        £92.9m
                                                        £90.2m
                                                          3.1%
                                                                           72
                                                                                             DAZ
                                                                                             2006
                                                                                             2005
                                                                                             yoy change
                                                                                                                       £85.1m
                                                                                                                       £85.2m
                                                                                                                        -0.1%
                                                                                                                                                 2006
                                                                                                                                                 2005
                                                                                                                                                 yoy change
                                                                                                                                                                       £78.7m
                                                                                                                                                                       £69.6m
                                                                                                                                                                          13%
                                                                                                                                     includes Crunchy Nut Original, Crunchy Nut



     66
                                                                                                                                     Red, Crunchy Nut Nutty and Crunchy Nut
                                                                                             BIRDS EYE FROZEN VEG

                                                                           73
                 2006                 £90.2m                                                                                         Clusters
                 2005                 £68.6m                                                 2006                      £82.2m
                                                                                                                                                    WALKERS SENSATIONS

                                                                                                                                     77
                 yoy change            31.5%                                                 2005                      £81.3m
     includes microwave and ambient varieties                                                yoy change                  1.1%                    2006                  £78.0m
                                                                                                                                                 2005                  £83.5m
                       KENCO INSTANT COFFEE                                                  KLEENEX FACIAL TISSUES

     67                                                                    74
                                                                                                                                                 yoy change              -6.6%
                 2006                 £88.8m                                                 2006                      £79.9m        includes Sensations Crisps, Sensations
                 2005                 £88.9m                                                 2005                      £79.7m        Crackers, Sensations Poppadom Bites and
                 yoy change             -0.2%                                                yoy change                  0.2%        Sensations Nut Clusters
     includes Kenco Really range, Decaffeinated,
     Purely, Rappor, Cappio and Sustainable
     Development                                                           Bakers performs in pet food
                       LENOR

     68
                                                                           UK PET OWNERS are showing their
                                                                                                                                                    BAKERS PETFOOD

                                                                                                                                     78
                       2006                             £85.7m             affection for their pets with their
                       2005                             £91.9m             wallets and purses. Three of the four                                    2006                        £77.2m
                       yoy change                        -6.7%             pet food brands in the Top 100                                           2005                        £64.7m
                                                                           showed strong growth in 2006.                                            yoy change                   19.4%
                       IRN-BRU

     69
                                                                           Whiskas (no. 14) is up 9.8%,
                       2006                             £85.6m             Pedigree (no. 15) up 2.5% and                                     trends in consumers’ food” in the pet food
                       2005                             £81.0m             Bakers (no. 78) is gaining rapidly                                market and goes on to say: “Trends creating
                       yoy change                         5.7%             on the top three with 19.4%                                       growth in the category cover a number of
                                                                           growth, which has catapulted the                                   dynamics, the main ones being conven-
                       BIRDS EYE FROZEN READY

     70
                                                                           brand 19 places up the table.                                      ience and product quality. “ While cat
                       MEALS                                                 Together with Felix (no. 25) they                                owners find pouches a convenient option,
                      2006                             £85.5m              account for over £646.7m sales of                                  Nestlé Purina has found dog owners are
                      2005                            £108.2m              the £14.3bn total value of the Top                                  increasingly buying into dry food due to
                      yoy change                         -21%              100. The category is going from                           its health and oral hygiene benefits and conven-
                                                                           strength to strength due to the same factors affecting    ient, mess-free format.
                                                                           those categories fit for human consumption, namely           And Bakers is at the forefront of driving the dry
      FROZEN IN STORE                                                      convenience, premiumisation and health.                   dog food category, according to the manufacturer.
      David Stokes, senior buying controller at Nisa-                        Health concerns are influencing the dog food sub-       “The combination of a strong marketing
      Today’s frozen distribution arm, Nisafreeze                          sector more so than cat, while the trend toward           campaign, fantastic product and new pack design
                                                                           premium products is driving sales of cat pouches and      to command more shelf-standout” has helped the
                        the past year, Nisa-Today’s, on a                  new premium-plus variants like Felix’s Supermeat and      brand capitalise on the current consumer interest
      “Over             like-for-like basis, has traded with
      small increases in both value and volume on frozen
                                                                           Roasted ranges, according to Nestlé Purina customer
                                                                           development director Andrew Harding.
                                                                                                                                     in dry dog food, says Harding. “We have seen
                                                                                                                                     consistent growth with Bakers as we have
      food. This small value growth has come from                            Harding identifies a definite “alignment with           continued to invest in the brand.”
      excellent sales performances in ice cream, frozen                                                                                 When asked about the future of further line
                                           fish and pizzas,                 Masterfoods is looking to grow its lead in pet food      extensions for Bakers, in addition to the new Meaty
                                            with vegetables                 in 2007 with plans to respond to the health, premi-      Treats range launched under the brand, Harding
                                            and potato chips                um and life stage trends shaping the market.             is coy. “The future is always under review,” he says,
                                             showing above                     Susie Kedwards, trade relations manager for           suggesting wet variants aren’t off the menu.
                                             inflation value                Masterfoods, comments: “Pet owners want to give             The final key development generating sales in
                                              growth in the                 their pets modern, fresh food that is less               the pet food market is the emergence and
                                              past quarter                  processed, uses fresh and natural ingredients and        improved merchandising of life stage products,
                due to market conditions pushing prices                     delivers nutritional benefits to their pets.” Pedigree   according to Harding. These products, Bakers being
      upwards, while demand remained constant.                              has responded to this emerging consumer trend,           one of them, are formulated and marketed for pets
      “Frozen pizzas continued to be a great convenient                     she says, by introducing a brand new premium             at specific stages in their lives – in Bakers’ case it
      product for us during 2006, easily outperforming                      range of dog food.                                       includes Puppy/Junior, Small Dog, Sensitive, Adult,
      chilled. And with ranges such as Goodfella’s Solos                       Pedigree Better by Nature is a new range avail-       Weight Control, and the list goes on.
      not being given away with relentless BOGOF deals,                     able in cans and pouches containing the same level          This approach has been around for a while, “but
      sales were at a great value for all concerned.                        of nutrition as traditional dog food, but with ingre-    the products were difficult (for consumers) to find,”
      “Another area of growth, which we at Nisa must                        dients close to a dog’s natural diet. Masterfoods is     explains Harding. “We have been working very
      get behind, is the explosion of frozen party snacks.                  also launching a new range of treats under the           hard with retailers to improve the fixture so people
      Driven by the major multiples, this is a sector that                  Pedigree brand called JointCare, developed to help       can find these products,” and Bakers’ growth is
      will become an all year-round purchase due to sea-                    ease joint discomfort in dogs.                           testament to the success of this strategy. Nestlé Purina
      sonal themes available. This is in contrast to                           For cats, Masterfoods is planning on expanding        will continue to “work closely with retailers in
      declines in frozen ready-meals and red meat prod-                     its premium Whiskas Oh So... range and is also           particular on store layout” and “look across the
      ucts which have both performed below par.”                            launching Whiskas Kitten, a life stage product.          total category with retailers to offer advice on best
                                                                                                                                     practice in store merchandising,” says Harding.
18   TOP 100 GROCERY BRANDS                                                                                                                     www.checkoutmagazine.co.uk MARCH 2007
     * Top 100 value figures on this page have been rounded to the nearest tenth of a million.
                                                                                                                                                     TREND:
                                                                                                                                                     HEALTHY EATING
TOP100 GROCERY BRANDS                                                                                                                               Louise Boitoult, business insight
                                                                                                                                                        director, ACNielsen
                       CRAVENDALE                                                            PETIT FILOUS

     79                MILK
                       2006
                       2005
                       yoy change
                                                        £77.0m
                                                        £64.2m
                                                          20%
                                                                          83                 2006
                                                                                             2005
                                                                                             yoy change

                                                                                             QUALITY STREET
                                                                                                                   £75.0m
                                                                                                                   £76.7m
                                                                                                                    -2.3%
                                                                                                                                 “Media                  attention to healthy eating has
                                                                                                                                                         been so intense of late, it has
                                                                                                                                 been difficult to avoid the topic. The fact health has
                                                                                                                                 been a key driver for products during 2006 is due




                                                                          84
                                                                                                                                 to manufacturer initiatives, retailer responses and
                       DORITOS

     80
                                                                                             2006                  £73.1m        also consumers’ changing preferences.
                 2006                   £75.8m                                               2005                  £74.0m           “However, people’s motivations towards healthy
                 2005                   £71.3m                                               yoy change             -1.3%        eating do vary. For many healthy eating is associat-
                 yoy change               6.3%                                                                                   ed with how they look and feel. People want to look
                                                                                             BASSETTS

                                                                          85
     includes Doritos, Doritos Dippas, Doritos                                                                                   good and will be attracted to products that enhance
     Latinos                                                                                 CONFECTIONERY                       their appearance. For others there is the realisation
                                                                                        2006                   £72.7m            that they need to change their diet for health rea-
                       HELLMANN’S

     81
                                                                                        2005                   £76.8m            sons, they have had a wake-up call regarding their
                       MAYONNAISE                                                      yoy change               -5.3%            heart, cholesterol, weight or general well-being.
                  2006                    £75.5m                           including Jelly Babies and Allsorts                      “We often describe this as ‘Life versus Death’
                  2005                    £71.8m                                                                                 marketing – for some it is about living to the full,
                                                                                             GLADE

                                                                          86
                 yoy change                 5.1%                                                                                 but for others it is about avoiding disease, and, not
     includes Original, Light, Extra Light,                                                  2006                  £72.6m        dying. Age will have a big influence on where peo-
     Dijonnaise, and Mayonnaise with olive oil                                               2005                  £72.2m        ple fall on the spectrum. But you can see how
                                                                                             yoy change              0.6%        products play to these different attitudes. Products
                       ANCHOR

     82
                                                                                                                                 like Actimel promote vitality; while Benecol helps
                       SPREADS                                                               CADBURY CAKES

                                                                          87
                                                                                                                                 you reduce your cholesterol.
                      2006                              £75.3m                               2006                  £72.5m           “When faced with the need to change their diet,
                      2005                              £74.6m                               2005                  £64.5m        some will quickly embrace a new way of eating
                      yoy change                          1.0%                               yoy change             12.3%        including plenty of fresh fruit and vegetables,
                                                                                                                                 avoiding saturated fat and sugar; while others will


     Yeo Valley is first organic
                                                                                                                                 look for products to help them make changes in the
                                                                                                                                 least painful way. Here the ‘better for you’ products
                                                                                                                                 are popular, so are traditional ‘less bad’ items, or

     brand in Top 100 table                                                                                                      products that help buyers achieve their ‘5-a-day’ in
                                                                                                                                 a convenient and tasty format like Innocent
                                                                                                                                 smoothies.
     Yeo Valley Organic, a brand tipped as One to watch                                                                             “People view products as healthy not just for their
     in last year’s report, has entered the Top 100                                                                              nutritional content, however, but also in terms of
     Grocery Brands league and become the first entirely                                                                         how natural they are. Compared to just 50% of peo-
     organic brand to do so.                                                                                                     ple in 2000, our latest research shows that almost
       Yeo Valley Organic’s sales rose by 25% in 2006                                                                            70% of people prefer products that are natural, and
     to £71.9m, catapulting the brand into the Top 100                                                                           many actively try to avoid artificial ingredients
     at 88.                                                                                                                      including pesticides, additives and colourings.
       “We are delighted,” says marketing director Ben                                                                              “We are seeing these trends impact sales of
     Cull. “It was one of my personal goals when I came                                                                          frozen ready meals, pizzas, and fizzy sugary drinks.
     for an interview here – I said I’d like to take Yeo                                                                         Although these products are convenient, the nega-
     Valley into the Top 100, so we’ve ticked a                                                                                  tive associations relating to fat and additives are
     milestone.”                                                                                                                 putting consumers off. For this same reason many
       Cull credits energy, consistency of approach and                                                                          retailers are actively removing hydrogenated fat and
     “being in the right place at the right time” for the                                                                        additives from their own label ready meals and
     brand’s growth as well retail support and for                                                                               enhancing the quality of the ingredients, especially
     making “a damn fine product”.                                                                                               in premium ranges.
       Brand stretch has played a key role too, taking                                                                              “Good for you foods that are child-friendly are find-
     Yeo Valley Organic outside its yogurt heartland to                                                                          ing their way into many shopping baskets. So are
     encompass spreadable butter, butter, compotes                         Cull: Top 100 aspirations realised                    added value, home cook meals.
     and children’s yogurts. In the latter category, Cull                                                                           “Much of the attention has been on children’s
                                                                                             YEO VALLEY ORGANIC

                                                                          88
     reports, Yeo Valley has exceeded its target to take                                                                         diets, school meals, obesity and advertising restric-
     a 10% market share.                                                                2006                       £71.9m        tions. Many manufactures have actively changed
       Organic has also become relevant to today’s                                      2005                       £57.5m        products in response to health concerns and are
     consumers, spurring Yeo Valley’s growth even                                       yoy change                   25%         enjoying success accordingly.
     further.                                                              including all yogurt variants                            “These include Walkers Crisps and Pringles.
       Cull again: “Organic has graduated from the                                                                               McCain Frozen Chips has had a good year with a
     corner of the whole food store to an organic ghetto                   scratch. After years of voyeurism and watching        high profile advertising campaign promoting the
     in retail to being adopted by the mainstream.”                        the chefs cooking on TV, people are actually          fact its chips are ‘only 5% fat.’ Products with natu-
       Cull claims Yeo Valley has helped to drive                          cooking again themselves.”                            ral health associations have done well, including
     “organic for the masses” via keen pricing and                           The trend to organic food ticks even more boxes     new entries Danone Bio Activia, Innocent smooth-
     generating excitement in the category.                                for consumers, says Cull.                             ies and old favourite Weetabix.
       “There’s something authentic, credible and real                       “Organic is a form of agriculture that people buy      “While people like the idea of cooking at home,
     about what we do. People think our image is very                      into. It’s about the ethics of farming sustainabil-   and the positive wholesome associations, many
     much of the countryside, and we are making                            ity. There are also the environmental benefits and    lack the skills or time to produce meals from
     product in the country,” says Cull.                                   the food itself. It has a broad appeal.”              scratch. For this reason products that are healthy
       That wholesomeness is benefiting Yeo Valley                           As Yeo Valley continues to develop its range and    and easy to prepare are proving popular, for exam-
     too.                                                                  become a wider dairy provider, Cull says the brand    ple easy to cook brown basmati rice from Tilda.
       “There’s a fantastic trend towards health, natu-                    will be looking to further consolidate its position      “Uncle Ben’s rice has grown hugely and shot up
     ralness and purity and a move away from quick                         with the promise of more specific support for its     the rankings due to its microwaveable rice.”
     fixes as people are getting back to cooking from                      brand and products in 2007.
20   TOP 100 GROCERY BRANDS                                                                                                                www.checkoutmagazine.co.uk MARCH 2007
     * Top 100 value figures on this page have been rounded to the nearest tenth of a million.
                                                                                                                                     SOFT DRINKS IN STORE
                                                                                                                                     Lyana Doyle, trading manager for ambient soft
TOP100 GROCERY BRANDS                                                                                                                drinks, Musgrave Budgens Londis
                                                                                                                                                      convenience sector finished 2006

     Origin-ality from Magnum “The                                                                                                                    with a 7% rise in soft drinks, includ-
                                                                                                                                     ing water (Nielsen w/ending 2 Dec 2006). Water is
                                                                                                                                     still a key growth area, along with sport and energy
                       MAGNUM

     89
                                                                           than the 5 Senses range, according to Ford.               drinks such as Lucozade and Red Bull.
                       2006                             £71.8m               Taking those lessons forward, Ford reveals Magnum       GlaxoSmithKline is definitely trying to give
                       2005                             £63.5m             will be marketing both the core and npd in 2007. On       Lucozade a harder edge and it has the brand
                       yoy change                        13.1%             the back of the premium and super foods trends in         strength and marketing support to take on the
                                                                           grocery, and the increasing importance of provenance      younger brand on its own territory. While
     MAGNUM is the star performer from the Unilever                        of ingredients, Magnum is launching two new               Lucozade won’t want to alienate its more traditional
     stable of ice cream brands, and the only ice cream                    products, Magnum Equador Dark and Magnum                  consumers, it can target the Red Bull consumer
     brand in the Top 100. With a sales value of £71.8m,                   Colombia Aroma, with a premium ‘origins’ theme.           through male-oriented niche marketing activity.
     and growth of 13.1% year-on-year, Magnum has                          The new products make a 62% cocoa claim on front             “The carbonates market is interesting in that
     jumped up the table 10 places to secure position 89.                  of pack, are being sold as premium products and place     although the perception is the sector is in decline,
       Brand managers at Magnum learned an important                       a huge emphasis on the origin of the ingredients used.    there is some growth from products with no added
     lesson in 2006: it is possible to grow sales by focusing              “There is a real halo effect around cocoa content,”       sugar and those which have a high juice content.
     primarily on your core products. As opposed to the                    says Ford. “People see it as more permissible.”           Consumers are definitely being more selective.
     5 Senses campaign of the previous year, which                           With a £6.5m marketing campaign behind the              Where some brands in the UK have been cutting
     focused on limited edition flavours, Magnum’s 2006                    brand, Ford reveals Equador Dark will be the number       juice content to lower costs, strong European
     advertising made Classic the “hero” of the campaign.                  three priority in the range of singles for the brand,     brands, such as Orangina, have maintained their
       Anna Ford, brand manager of Magnum, says one                        behind Classic and White.                                 juice content and are still performing well.
     of the key metrics of the campaign was “to drive                        “Another year of double-digit growth is what we            “Consumer trends are all about functionality,
     distribution on Classic and White”, which it                          are after. It’s a tough goal, but we want the category    health and innovation, with all the innovation in
     succeeded in doing.                                                   to continue to grow and Magnum has a responsi-            juice, water and health/dietary areas. Danone, for
       Magnum achieved operational excellence on its                       bility to be part of that engine room of growth.”         example, has a new ‘gentle’ energy water targeting
     core range over the year, claims Ford, which accounts                                                                           women.
     for much of the growth in the brand. “If you just do
     the basics better, you’ll get sales gains,” she states.
                                                                                                 TREND: THE                             “Vitamin water is another interesting area,
                                                                                                                                     athough it’s certainly not yet mainstream and
       However, the value of npd to Magnum cannot be
                                                                                                  CONSCIOUS                          nowhere near as developed here as it in the US.
     discounted, as the range also included three new                                             CONSUMER                           New products come through every week but con-
     flavours in 2006, Mint, Almond and Double                                                   Louise Boitoult, business           sumers don’t understand the concept yet and don’t
     Caramel, which had a combined sales value of more                                               insight director, ACNielsen     have confidence in the claims on the bottle.
                                                                                                    warming and the environment      However, you can’t afford to dismiss a trend and
                       HARIBO GUMS & JELLIES                                “Global
     90
                                                                                                    have had a huge amount of        we’re currently trialing V Water in one of our stores
                       2006                             £71.7m              air time recently. Consumers pick up on these            to ‘test the water’. Drinks with plant extracts sit in
                       2005                             £71.8m              media messages and play back their concerns. We          the same category and we’re listing
                       yoy change                        -0.2%              recently asked our Homescan panelists about prod-        Carpe Diem’s botanical waters in our
                                                                            ucts that are ethically produced or kinder to the        Budgens stores, though not in
                       TWIX

     91
                                                                            environment, and about the purchasing of products        Londis, where the customer profile is
                       2006                             £71.2m              that are produced or grown locally, and found the        very different.
                       2005                             £75.0m              following:                                                  “Of our two store brands, you can
                       yoy change                          -5%              ■ 44% of people said they try to buy products that are   clearly see the difference in demo-
                                                                            ethically produced or kinder to the environment          graphics, with the emphasis on
                       BISTO

     92
                                                                            ■ 35% believe it is worth paying extra for products      impulse and a strong male bias in
                       2006                             £70.8m              that are ethically produced or kinder to the environ-    Londis, where we have strong
                       2005                             £69.3m              ment                                                     sales in carbonates and energy
                       yoy change                         2.1%              ■ 74% preferred to buy products that are pro-            drinks. Budgens has a more pre-
                                                                            duced or grown locally                                   mium slant with products like
                       HEINZ

     93
                                                                              “Manufacturers with household products who             J2O, Duchy and Bottlegreen
                       CANNED PASTA                                         manage to offer environmentally friendly products        performing well.
                      2006                              £69.4m              which deliver all the benefits will be well placed to       “In line with current health trends,
                      2005                              £70.3m              make the most of this trend.                             many manufacturers are coming out of full sugar
                      yoy change                         -1.3%                “Yeo Valley Organic has achieved good growth           variants. In kids’ products I wouldn’t think of put-
                                                                            this year and with a strong organic proposition and      ting in anything with added sugar, and that’s the
                       AERO

     94
                                                                            portfolio I would expect the brand to achieve a          way the market’s going.
                       2006                             £69.3m              higher ranking next year.”                                  “In the adult market, we’re seeing growth from
                       2005                             £66.5m                                                                       anything with berries among the ingredients, par-
                       yoy change                         4.2%                                                                       ticularly the ‘super fruits’. Brazilian acai is looking
                                                                                             FLASH

                                                                          98
                                                                                                                                     like the next big thing and Bottlegreen is bringing
                       HULA HOOPS

     95
                                                                                             2006                      £67.0m        out a cranberry and acai drink. It’s a lovely prod-
                       2006                             £68.9m                               2005                      £67.7m        uct and consumers get the benefits of the acai
                       2005                             £58.1m                               yoy change                   -1%        while cranberry compensates for the bitter taste.
                       yoy change                        18.7%                                                                          “Pomegranate is still popular – PomWonderful
                                                                                             CHICAGO TOWN FROZEN

                                                                          99
                                                                                                                                     still sells well – as are green tea drinks. At Budgens
                       CADBURY ROSES                                                         PIZZA

     96
                                                                                                                                     we stock the MangaJo green tea range. It has great
                       2006                             £68.0m                              2006                       £65.9m        packaging, the product speaks for itself and we get
                       2005                             £67.0m                              2005                       £80.2m        repeat purchase.
                       yoy change                         1.4%                              yoy change                 -17.9%           “It’s not a straightforward market and it’s fast
                                                                                                                                     moving and, while the big brands are very good
                       CLOVER SPREADS                                                             TWININGS

     97                                                                   100
                                                                                                                                     with their marketing strategies and invest heavily in
                       2006                             £67.9m                                    2006                 £64.8m        driving consumer demand, they need to be sup-
                       2005                             £65.9m                                    2005                 £58.4m        porting the retailers through education and market
                       yoy change                         3.1%                                    yoy change            10.9%        information.”


22   TOP 100 GROCERY BRANDS                                                                                                                    www.checkoutmagazine.co.uk MARCH 2007
     * Top 100 value figures on this page have been rounded to the nearest tenth of a million.
TOP100 GROCERY BRANDS

     Ones to watch
       Not yet in the Top 100, the following brands are achieving good
       growth and may break into the rankings in the next 12 months
       OASIS                                                                                                                       LOYD GROSSMAN
       2006
       2005
                                                          £64.7m
                                                          £54.6m
                                                                            Just outside                                           2006
                                                                                                                                   2005
                                                                                                                                                                              £48.0m
                                                                                                                                                                              £41.0m
       yoy change                                          18.4%                                                                   yoy change                                  17.2%
                                                                                                   MÜLLER VITALITY

                                                                           101
                                                                                                                                   TV presenter Loyd Grossman
       HIGHLAND SPRING                                                                             2006              £64.8m        could soon be more
       2006                                               £58.2m                                   2005              £54.0m        famous for his cooking
       2005                                               £50.9m                                   yoy change         19.9%        sauces than his rolling
       yoy change                                          14.4%            It’s better luck next time for Müller Vitality         vowels and television career.
                                                                            even though the brand grew a staggering                  Canadian-born Grossman’s
       CAPRI SUN                                                                    19.9% year-on-year to hit £64.8m               name has certainly become
       2006                                               £56.2m                            worth of sales, just behind            an important brand for
       2005                                               £52.7m                             Twinings. Last year the               Premier Foods, which
       yoy change                                           6.6%                             brand would have been well            makes his sauces, and has
       We tipped Oasis, Highland Spring and Capri                                            within the Top 100 with               seen a 17.2% rise in
       Sun as Ones to watch last year and are tipping                                         this sales value.                    demand       for     them
       this trio of drinks brands again as all three                                                                               between 2005 and 2006.
       have continued to show strong sales growth.                                               Spring also points out that UK    This is worth £48m last
       We are forecasting that at least one of these                                              consumption of bottled water     year, up form £40.9m 12
       brands will enter the Top 100 Grocery Brands                                                lags way behind other           months earlier.
       league next year.                                                                           European countries. The           This incremental rise
         Coca-Cola Enterprises brand Oasis recorded                                                brand remains well posi-        represented the highest
       an impressive 18.4% leap in sales last year to                                             tioned to take advantage of      growth of any brand in
       £64.7m, putting it just outside the Top 100.                                               developing consumer trends.      the sauce sector, helped by
       Highland Spring was the fastest growing water                                              Capri Sun, also in the Coca-     an £8m advertising budget last
       brand in 2006 with sales ahead by 14.4% to                                                 Cola Enterprises stable,         year. Premier identifies the breadth of products
       £58.2m. Like rivals Volvic and Evian, Highland                                             enjoyed 6.6% sales growth last   which carry the Loyd Grossman name, as these
       Spring is benefiting from a buoyant bottled                                               year and now has a sales value    range from pour on sauces, Italian, Indian and
       water market in the UK and it claims there’s                                              of £56.2m. The brand has          Oriental lines. With a 25% growth, its Thai sauces
       plenty of potential to grow sales further.                                                benefited from the trend          are now the biggest sellers in their market sector,
       According to the brand, bottled water has 55%                                             towards healthier children’s      Italian branded products, which increased sales
       penetration in the UK, leaving 45% of the                                                 drinks and the move away          by 17% are the second best sellers, and Indian
       market metaphorically untapped. Highland                                                  from carbonates.                  products are in third place.




     Didn’t they do well
     2006’s Ones to watch certainly were. Here’s where last year’s tips ended up


        Tipped last year as the top of our Ones to watch,                                                                          DANONE BIO ACTIVIA is by far the biggest story
        TWININGS has capped the list this year at posi-                                                                            from last year’s panel. This functional brand has
        tion 100 with another year of impressive growth                                                                            enjoyed an enormous 77% growth in sales value,
        of 10.9%                                                                                                                   landing it at position 59 in the ranking with £97.9m
                                                                                                                                   sales in 2006.

                                                                                                                                   OASIS, HIGHLAND SPRING, CAPRI SUN and
        HULA HOOPS has leapfrogged Twinings with                                                                                   MAYNARDS were all tipped as movers and shak-
        18.7% growth to enter the chart at position 95                                                                             ers last year, and have done well again in 2006,
        with £68.9m sales.                                                                                                         missing out on the Top 100 by small margins.
                                                                                                                                   Oasis grew by 18.4%, putting it just £150,000 shy
                                                                                                                                   of position 100. On the back of the hot summer,
                                                                                                                                   Highland Spring did fantastically well, out grow-
        YEO VALLEY ORGANIC is the second biggest                                                                                   ing all the other water brands with 14.4% growth
        winner in last year’s Ones to watch. The organic                                                                           and sales of £58.2m. Capri Sun grew another
        brand has been a favourite with consumers in                                                                               6.6% last year with £56.2m in sales while
        2006, entering the Top 100 at position 88 with                                                                             Maynards shot up 8.2% with £53.7m in sales.
        sales of £71.9m, up 25% on last year’s £56.3m.
                                                                                                                                   NEW COVENT GARDEN is still showing fantastic
                                                                                                                                   growth at over 10% with its fresh soup offering.



24   TOP 100 GROCERY BRANDS                                                                                                                  www.checkoutmagazine.co.uk MARCH 2007
     * Top 100 value figures on this page have been rounded to the nearest tenth of a million.
TOP100 GROCERY BRANDS


     Ones to watch                                                                                                                 SERIOUSLY STRONG
                                                                            How to
         “Loyd Grossman’s growth has come from a
       detailed segmentation study which highlighted                                                                               2006                                       £44.1m
       consumers whose attitudes fitted those of existing                                                                          2005                                       £33.4m
       buyers,” said Premier Foods’ pickles and sauces
       general manager Sue Knight.
                                                                            get spotted                                            yoy change                                  32.0%
                                                                                                                                   Cheddar cheese might be perceived as a generic
         She suggests premium sauces are currently                                                                                 product, but Lactalis McLelland’s Seriously Strong
       enjoying the strongest growth, and that this had                     ■ DO THE BASICS                                        continues to stand out in a crowded market.
       helped the Loyd Grossman-branded products.                           Be premium. Be healthier. Be convenient.                 Last year’s mix of sales expanding, Seriously-
         “Convenience is also a driving force. Research                     ■ BE FUNCTIONAL                                        branded sister product launches, and the high
       shows consumers who are buying into this sector                      Super foods and functional products, new and           profile performance of Seriously Strong itself
       are increasingly time poor but cash rich,” she                       established, are favourites with consumers. Look at    makes it a hot tip for future inclusion in our Top
       says, adding that her products gave convenience                      Danone Bio Activia for proof.                          100 list. “We’ve had sales of just under £780,000
       stores a useful entrée into big selling, premium                     ■ BE MULTI-FUNCTIONAL                                  at retail,” says Lactalis McLelland marketing
       market.                                                              Being in line with just one consumer trend is not      manager Renee Milkop-Kerr.
         Bigger jar sizes have also helped demand. 660g                     enough to propel you to greatness. Products show-        2006 saw the launch of Seriously Spreadable,
       Italian jars now take a fifth of sales and are                       ing impressive growth are those which are indul-       Seriously Smooth, Seriously Farmy and Seriously
       growing in demand at 28% annually. Premier is                        gent yet healthy, convenient yet natural, premium      Vintage, which now account for just under 25% of
       considering offering these for other sauces.                         yet mainstream. You’ve been challenged.                range sales. 2007 will be spent consolidating these
                                                                            ■ BE KINDER TO THE ENVIRONMENT                         brands.
                                                                            Global warming is officially on the agenda. It’s not     Milkop-Kerr reckons a wider British consumer
                                                                            just the life of your consumers you must prolong, it   trend to buy foods with more flavour has helped
                                                                            is the life of the planet that needs saving as well.   Seriously Strong carve out a distinct market niche
                                                                            ■ BE IN TOUCH WITH THE PEOPLE                          since 1996. Products like Seriously Smooth and
                                                                            Experiential marketing is the way forward.             Spreadable allow children and cooks to try it for
                                                                            ■ BE ON YOUTUBE                                        the first time. Milkop-Kerr says Seriously Farmy
                                                                            Do you know how many people watch those online         is now “the best selling brand in the farmhouse
                                                                            videos? Millions. Trust Google. Online video adver-    arena (it replaced Seriously Strong Farmhouse),
                                                                            tising is a key part of what the company is claiming   and more accessible to people. Seriously Vintage
                                                                            will be a renaissance in fmcg marketing.               is more of an indulgence buy.”
                                                                            ■ BE DELICIOUS                                           In 2005 McLelland, with its cheese making
                                                                            Because food and drink is all about enjoyment.         heritage dating back to the 1800s, became part
       KETTLE CHIPS                                                                                                                of the giant French cheese making group Lactalis,
       2006                                               £47.4m           southern Italy and Double Gloucester cheese – and       which brought an internationalist eye to
       2005                                               £37.0m           is committed to continuing this all-natural             marketing and product development, but wisely
       yoy change                                          28.2%           approach with the focus firmly on the consumer’s        gave its Scottish partner plenty of space to develop
       Jeremy Bradley, managing director at Kettle Chips,                  needs and desires.                                      new cheddar products. “We spent 2005 talking
       says the brand’s success in 2006 has been driven                      “People increasingly check nutritional content        to consumers. We wanted to really understand
       in part by the trend towards premium products,                      on bags,” says Bradley, so the company has just         the market, find gaps and follow through on
       but the importance of convenience formats and                       put a much clearer nutritional panel on pack            those,” says Milkop-Kerr, who adds that public
       shift towards more natural products have also                       combined with the traffic light symbol. However,        tastings have become an important part of the
       played a major role.                                                Kettle Chips has shied away from making too much        Seriously brand’s development.
          The brand enjoyed “a great back wind with the                    of a song and dance of its stringent ingredient-          “People are much more interested in what their
       trend toward premium and products made with                         sourcing regime and dedication to all-natural           food tastes like. Our emphasis has to be on quality
       natural ingredients,” says Bradley. However, the main               ingredients on pack.                                    and taste,” she says.
       event in 2006 was the launch of 40g impulse bags.                     “Whenever we can stand up to an honest claim
          “The introduction of our 40g offer has been a key                we do,” says Bradley, “but we don’t beat our            BRITVIC J20
       driver of sales,” says Bradley. “It has seen really                 chests about our products. We get fabulous               2006                                      £42.7m
       explosive growth and grown distribution quite                       feedback from customers, but we’re quite a               2005                                      £39.6m
       strongly,” with Kettle Chips gaining listings in the                humble outfit and we hope consumers appre-               yoy change                                  7.9%
       convenience channel it did not enjoy previously.                    ciate it.”                                               Britvic identifies a main driver of J2O’s success
          So confident is the manufacturer of the 40g bags’                  This clear offering, which ticks all the               as the growing interest in premium and indul-
       appeal, it has introduced smaller case sizes to make                current consumer-trend boxes, combined                    gence, classing the brand as an indulgent soft
       it easier for retailers to sample the new format.                   with a trustworthy brand image and no-                    drink. However, J2O’s 7.9% sales growth is most
          “This is our time,” says Bradley. “People enjoy                  nonsense marketing strategy, has worked                    certainly down in part to the health trend
       crisps once in a while. And, when people want                       for the brand.                                             sweeping the industry. Julian Mears from Britvic
       to make that choice, Kettle Chips has a healthier                     In 2007 consumers can expect to see                       says: “We expect to see the trend of still drinks
       profile than most.”                                                 more of the same from Kettle Chips:                           increasing ahead of carbonates to continue,
          Kettle Chips as a brand has always been doing                    “We’ve been doing exciting design work                         and the trend in indulgent products to
       all the things consumers are increasingly                           on flavours and worked on our core. We                         develop over the next year.” He cites J2O’s
       concerned with today, explains Bradley. “We’ve                      expect consumers to be wowed by tasting                       on-trade success as a further contributor to
       always been wedded to no artificial ingredients.                    the changes in 2007,” says Bradley.                           off-trade sales growth. Mears says by investing
       We’ve always used the least adulterated oils. We’re                   And, Kettle Chips expects more of the same                  in an extensive new advertising campaign
       way out ahead of anybody in ingredients.” He                        from consumers. Bradley again: “We have a                     (The Storm), launching a new flavour (orange
       goes on to tell how the manufacturer goes to                        low penetration – 14.5% – and frequency of                    and pomegranate) and extending the range
       great lengths to create exciting tastes using only                  purchase is relatively low. So we’re very                     into PET bottles, Britvic is banking on growth
       natural ingredients – like Buffalo mozzarella from                  excited about the potential.”                                 in the category continuing in 2007.


26   TOP 100 GROCERY BRANDS                                                                                                                   www.checkoutmagazine.co.uk MARCH 2007
     * Top 100 value figures on this page have been rounded to the nearest tenth of a million.
www.checkoutmagazine.co.uk

								
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