Bottled Sauces - UK

This market is estimated to be worth £474 million in 2008, which reflects slowing growth (1.5%) from the previous years. Table sauces and mayonnaise account for three quarters of the market.

Heinz dominates the market in the table sauce sector and Hellmann’s in the mayonnaise. Both invest heavily to prevent any devaluation of their brands.

Naturalness, shored up by the ‘you are what you eat’ mantra, is the keystone of success, with most products now additive-free.

Long term, there is great potential due to the rise in shortcut cooking plus scratch cooking is becoming increasingly embedded in the British culture.

A threat looms on the horizon with the supermarkets that are rapidly launching new products and positioning themselves to take on the manufacturer brands.

Key report themes:

• The battle between own-label and manufacturer brands.
• The impact of health and nutritional value on consumer choice.
• The positive influence of rising cooking skills on the extension of usage of bottled sauces.
• The dominance of tomato ketchup and mayonnaise in the market and how they dictate the fortunes of the overall category.
• The role of premiumisation in shaping the future of the category.

Issues in the Market

Key themes

Definition

Market in Brief

A stagnant market

Three out of four purchases are for table sauces

New uses for sauces are the way forward

Innovation adds value

The future

Growth falters but recovers

Internal Market Environment

Key points

Cooking influences

Figure 1: Trends for food and shopping statements, 2003-07

Reluctance to cook wanes

Shortcuts and scratch cooking

Figure 2: Trends for food and shopping statements, 2003-07

Outdoor living positive influence

Figure 3: Trends for owning barbecues/garden furniture, 2003-07

Health focus

Government and media shape customer attitudes

Broader Market Environment

Key points

Standing alone

Figure 4: Changes in UK household sizes, 2003-13

Core target market shrinks

Figure 5: Trends and projections in UK population (‘000s), by age, 2003-13

Winners and losers

Growth in ABC1s favours speciality sauces

Figure 6: UK population, by socio-economic group, 2003-13

Competitive Context

Key points

Chutneys, sweet pickles and relishes compete with dish-specific

Figure 7: UK sales of chutney, sweet pickles and relish compared to dish-related sauces, 2002-07

Chilled sauces may have a negative impact

Figure 8: UK retail value sales of fresh chilled and ambient/wet cooking sauces, by type, 2001-06

Salad accompaniments - are they a threat?

Figure 9: Market size of salad accompaniements, by value, at current prices, 2002-07

Salad cream little threat to mayonnaise

Ready-made salad dressings little threat

Other factors

Strengths and Weaknesses in the Market

Strengths

Weaknesses

Market Size and Forecast

Key points

Growth slows for 2008

Figure 10: UK retail sales of bottled sauces, by value, 2003-08

Heinz and Hellmann’s brands drive sales

Targeting the health-conscious is successful

The future of the market

Forecast

High inflation will restrict market growth

Figure 11: Forecast of current value of bottled sauces market, 2003-13

Figure 12: Forecast of real value of bottled sauces market, 2003-13

Factors used in the forecast

Segment Performance

Key points

Tomato and mayo drive growth in bottled sauces

Figure 13: UK retail sales of bottled sauces, by sector, 2003-08

Figure 14: Percentage of change, 2003-08 and 2007-08

Strong innovation in table sauces keeps the market buoyant

Figure 15: UK retail sales of table sauces, by value, 2003-08

Figure 16: UK retail sales of table sauces, by type, by value, 2003-08

Tomato drives growth through universal appeal

Worcestershire goes premium

Soy

Changes in eating habits adversely impact dish-related

Figure 17: UK retail sales of dish-specific sauces, by value, 2003-08

Figure 18: UK retail sales of dish-specific sauces, by type, by value, 2003-08

Culinary adventurism prevents decline of vinegar

Figure 19: UK retail sales of vinegar, by value, 2003-08

Figure 20: UK retail sales of vinegar, by type, by value, 2003-08

Speciality mustards save the day

Figure 21: UK retail value sales of mustard, 2003-08

Figure 22: UK retail value sales of mustard, by type, by value, 2003-08

Hellmann’s dominates salad accompaniments

Figure 23: UK retail sales of mayonnaise, by value, 2003-08

Market Share

Key points

Heinz maintains steady share of tomato sauce

Figure 24: UK retail brand shares of tomato ketchup, by value, 2003-08

Static and stable browns

Figure 25: UK retail brand shares of brown sauce, by value, 2003-08

Hot and spicy fuels growth

Figure 26: UK retail brand shares of barbecue and other thick sauces, by value, 2003-08

Kikkoman and Amoy head to head

Figure 27: UK retail brand shares of soy sauce, by value, 2003-08

English Provender drives growth of smaller brands

Figure 28: UK retail brand shares of dish-specific sauce, by value, 2003-08

Balsamics, wine and cider vinegars sustain growth

Figure 29: UK retail brand shares of vinegar, by value, 2003-08

Speciality mustards sustain the market

Figure 30: UK retail brand shares of mustard, by value, 2003-08

Investment keeps Hellmann’s at the top

Figure 31: UK retail brand shares of mayonnaise, by value, 2003-08

Companies and Products

Key points

F Duerr and Sons

Costa

HJ Heinz

Kikkoman

Premier Foods

RH Amar

Nando’s

Unilever

Wilkin and Sons

Others

The English Provender Company

Greencore

Patak’s

Grace Foods UK (formerly WT Foods)

Supermarkets

Brand Communication and Promotion

Key points

Mayonnaise drives advertising spending patterns

Figure 32: Main monitored media advertising expenditure on bottled sauces, 2004-08

Figure 33: Main monitored media advertising expenditure on Mayonnaise, 2004-08

Hellmann’s number one advertiser

Heinz dominates spend 2005-07

How will 2008 finish?

Top brands advertised over the last three years

Figure 34: Main monitored media spend on bottled sauces, by selected manufacturers, 2006-08

Channels to Market

Key points

Supermarkets rule

Figure 35: UK retail sales of bottled sauces, by outlet type, 2003-08

Brands restricted in smaller locations

The Consumer - Usage

Key points

Mayonnaise steams ahead for recruiting new consumers

Figure 36: Trends in penetration of consumption of different types of sauces, 2003-07

Age-old traditions

Figure 37: Users of brown sauce and other sauces, by gender, age and socio-economic group, 2007

Women love affair with mayonnaise

Figure 38: Users of mayonnaise, by gender, age and socio-economic group, 2007

Tomato ketchup broad appeal

Figure 39: Users of tomato ketchup, by gender, age and socio-economic group, 2007

Own-label brands are gaining share

Figure 40: Branded versus own-label consumption of tomato ketchup, 2003-07

Figure 41: Branded versus own-label consumption of brown sauce, 2003-07

The Consumer - Repertoire of Bottled Sauces

Key points

Sauces kept at home

Figure 42: Bottled sauces kept on a regular supply at home, June 2008

Older consumers have specific tastes

Social group drives different repertoire

A nation of sauce lovers

Figure 43: Repertoire of bottled sauces that people keep a regular supply of in their home, June 2008

ABC1 families use the most

Opportunities to drive trial

Figure 44: Cross-analysis of what other sauces are kept at home if they stock the five most popular sauces, June 2008

Appendix

Advertising data

Abbreviations

Appendix - Internal Market Environment

Figure 50: Trends for food and shopping statements, by demographics, 2007

Figure 51: Trends for food and shopping statements, by demographics, 2007

Figure 52: Ownership of barbecues/garden furniture, by demographics, 2007

Appendix - Broader Market Environment

Figure 53: Trends and projections in UK household size, 2003-13

Figure 54: Trends and projections in UK population, by age group, 2003-13

Figure 55: Trends and projections in UK population, by socio-economic group, 2003-13

Appendix - The Consumer: Usage

Figure 57: Trends for consumption of different types of sauces, 2003-07

Figure 58: Brown sauce frequency of consumption, by demographics, 2007

Figure 59: Mayonnaise frequency of consumption, by demographics, 2007

Figure 60: Tomato ketchup frequency of consumption, by demographics, 2007

Figure 61: Trends for branded versus own-label consumption of tomato ketchup, 2003-07

Figure 62: Trends for branded versus own-label consumption of brown sauce, 2003-07

Appendix - The Consumer: Repertoire of Bottled Sauces

Figure 63: Bottled sauces kept on a regular supply at home, by demographics, June 2008

Figure 64: Bottled sauces kept on a regular supply at home, by demographics, June 2008

Figure 65: Bottled sauces kept on a regular supply at home, by demographics, June 2008

Figure 66: Bottled sauces kept on a regular supply at home, by demographics, June 2008

Figure 67: Bottled sauces kept on a regular supply at home, by demographics, June 2008

Figure 68: Nets of bottled sauces, kept on a regular supply at home, by demographics, June 2008

Figure 69: Repertoire of sauce usage, by types of sauces kept, June 2008

Figure 70: Repertoire of sauce users, by demographics, June 2008