United Kingdom Food and Drink Report Q3 2009
Published By: Business Monitor International
June 2009
R302-6638
Online Download $495.00
Description
Increased demand for private-label food and drink products has been a key theme running through thesector since the onset of the economic downturn. This trend has benefitted some producers at the expenseof others and is exemplified by the contrasting fortunes of two of the UK’s largest food producers -Northern Foods and Associated British Foods (ABF).
This trend has been a boost for Northern Foods which saw its sales rise in the three months to the end ofMarch 2009. Over this period Northern Foods recorded an 8.8% increase in underlying sales, which stripsout the impact from acquisitions and divestitures. This was above the firm’s average rate of growth forthe last 12 months suggesting that it is well-placed to contend with the economic downturn. Leeds-basedNorthern Foods produces branded and private-label products, and controls approximately a fifth of theUK ready meal market.
Northern Foods’ strong performance since the UK economy started to contract can be attributed to aproduct portfolio, which includes the types of food consumers are now buying more of. The firm’s focuson private labels is proving to be advantageous as consumers look to trade down while its brandedproducts, such as Goodfella's pizza and Fox's biscuits, are in categories which are performing strongly asconsumers look to save money by spending more time at home. Northern Foods has also benefited fromgaining prominence in the increasingly important discount sector. The firm has contracts to supply Aldi,Lidl, Iceland and Netto, and has reported that its value ranges now account for 10-20% of business,compared to less than 10% a few years ago. This focus on value is also filtering through to conventionalsupermarkets, with the firm supplying Tesco with sandwiches that retail for under GBP1 and producingready meals under Marks & Spencer’s ‘Wise Buy’ range.
In contrast ABF has reported a sharp fall in profits at its grocery division for the 24 weeks to February 282009. Despite a 22% increase in revenues, profits at the division fell by 30% to GBP62mn. This fall waspartly attributed to ‘taking long positions in vegetable oil futures at values well above the current market’,but was also due to the rising popularity of private labels, with ABF citing this trend for falling sales at itsUS oil business and falling margins at its Australian bakery and processed meat businesses. Fallingmargins may be an increasingly prominent trend over the coming year as major brand builders are forcedto adjust their prices downwards to maintain market position and fend off the threat from private labels.
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Table of Contents
- Executive Summary
- SWOT Analysis
- United Kingdom Food Industry SWOT
- United Kingdom Drink Industry SWOT
- United Kingdom Mass Grocery Retail Industry SWOT
- Business Environment
- Western Europe Food & Drink Business Environment Ratings
- Western Europe Food & Drink Business Environment Ratings Q3 2009
- United Kingdom Food & Drink Business Environment Rating
- Table: Global Food & Drink Business Environment Ratings Q3 2009
- Macroeconomic Outlook
- United Kingdom - Economic Activity
- Food
- Industry Forecast Scenario
- Food Consumption
- UK Food Consumption Indicators - Historical Data & Forecasts, 2005-2013
- Canned Food/Prepared Food
- Table: Canned Food Value/Volume Sales - Historical Data & Forecasts, 2005-2013
- Confectionery
- Confectionery Value/Volume Sales - Historical Data & Forecasts, 2005-2013
- Organic
- Trade
- Industry Developments
- Market Overview
- Food Sector
- Prepared Food
- Private Label
- Livestock
- Dairy
- Seafood
- Organic Food
- Drink
- Industry Forecast Scenario
- Hot Drinks
- Soft Drinks and Bottled Water
- Soft Drink Value/Volume Sales - Historical Data & Forecasts, 2005-2013
- Alcoholic Drinks
- Alcoholic Drink Value/Volume Sales - Historical Data & Forecasts, 2005-2013
- Industry Developments
- Market Overview
- Soft Drinks
- Alcoholic Drinks
- Alcohol on-Trade
- Mass Grocery Retail
- Industry Forecast Scenario
- Table: UK Mass Grocery Retail Value Sales by Format (US$bn) - Historical Data & Forecasts
- Industry Developments
- Market Overview
- Online Retailing
- Table: Structure of the UK's Mass Grocery Retail Market by Estimated Number of Outlets, 2001-2008
- Table: Structure of the UK's Mass Grocery Retail Market - Sales Value by Format (US$bn), 2001-2008
- Table: Annual Average Sales per Outlet by Format (US$mn)
- Competitive Landscape
- Key Players
- Food
- Key Players in the UK's Food Sector
- Drink
- Key Players in the UK's Drink Sector
- Mass Grocery Retail
- Key Players in the UK's Mass Grocery Retail Sector
- Company Analysis
- Food
- Associated British Foods
- Dairy Crest Group Plc
- Cadbury Plc
- Drink
- Diageo
- Mass Grocery Retail
- Tesco
- J Sainsbury Plc
- Asda
- Appendix
- Commodity Price Forecasts
- Corn
- Table: Corn, 2005-2010
- Soybean
- Table: Soybean, 2005-2010
- Rice
- Table: Rice, 2005-2010
- Wheat
- Table: Wheat, 2005-2010
- Cocoa
- Table: Cocoa, 2005-2010
- Coffee
- Table: Coffee, 2005-2010
- Milk
- Table: Milk, 2005-2010
- Sugar
- Table: Sugar, 2005-2010
- Country Snapshot: UK Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Table: Education, 2002-2005
- Table: Vital Statistics, 2005-2030
- Section 3: Labour Market And Spending Power
- Table: Employment Indicators, 2000-2005
- Table: Consumer Expenditure, 2000-2011 (US$)
- Table: Average Annual Wages, 2000-2012
- Food & Drink Business Environment Ratings
- Ratings Methodology
- Ratings Overview
- Ratings System
- Indicators
- Limits Of Potential Returns
- Risks To Realisation Of Potential Returns
- Weighting
- Weighting
- BMI Food & Drink Industry Glossary
- Food & Drink
- Mass Grocery Retail
- BMI Food & Drink Forecasting & Sourcing
- How We Generate Our Industry Forecasts
- Sourcing
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