canned foods 2011

Market Report Plus 2011

18th Edition February 2011Edited by Katie Hughes

ISBN 978-1-84729-702-0

Canned Foods

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Canned Foods Foreword

© Key Note Ltd 2011

Contents

Executive Summary 1

1. Market Definition 2

REPORT COVERAGE....................................................................................................................2

MARKET SECTORS.......................................................................................................................2

MARKET TRENDS.........................................................................................................................3

The Recession..................................................................................................................................3

Environmental Concerns...............................................................................................................3

Convenience Foods........................................................................................................................4

Health Concerns.............................................................................................................................4

ECONOMIC TRENDS....................................................................................................................5

Population.......................................................................................................................................5

Table 1.1: UK Resident Population Estimates by Sex (000), Mid-Years 2005-2009...........5

Gross Domestic Product................................................................................................................6

Table 1.2: UK Gross Domestic Product at Current and Annual Chain-Linked Prices(£m), 2005-2009..............................................................................................................................6

Inflation...........................................................................................................................................6

Table 1.3: UK Rate of Inflation (%), 2005-2009.......................................................................7

Unemployment...............................................................................................................................7

Table 1.4: Actual Number of Unemployed Persons in the UK (million), 2005-2009.........7

Household Disposable Income....................................................................................................8

Table 1.5: UK Household Disposable Income Per Capita (£), 2005-2009............................8

MARKET POSITION......................................................................................................................8

The UK..............................................................................................................................................8

Table 1.6: Total UK Household Expenditure on Food and Household Expenditureon Canned Foods (£m at rsp and %), 2006-2010.....................................................................9

Overseas...........................................................................................................................................9

Canned Foods Contents


2. Market Size 10

THE TOTAL MARKET................................................................................................................10

Table 2.1: The Total UK Canned Foods Market by Sector by Value at Current Prices(£m at rsp and %), 2006-2010...................................................................................................10

Figure 2.1: The Total UK Canned Foods Market by Sectorby Value at Current Prices (£m at rsp and %), 2006-2010...................................................11

BY MARKET SECTOR.................................................................................................................12

Vegetables.....................................................................................................................................12

Table 2.2: The UK Canned Vegetables Sector by Valueat Current Prices (£m at rsp and %), 2006-2010....................................................................12

Table 2.3: The UK Canned Vegetables Sector by Type of Product by Value at CurrentPrices (£m at rsp and %), 2010..................................................................................................13

Fish..................................................................................................................................................14

Table 2.4: The UK Canned Fish Sector by Valueat Current Prices (£m at rsp and %), 2006-2010....................................................................14

Table 2.5: The UK Canned Fish Sector by Type of Productby Value at Current Prices (£m at rsp and %), 2010.............................................................15

Soup................................................................................................................................................15

Table 2.6: The UK Canned Soup Sector by Valueat Current Prices (£m at rsp and %), 2006-2010....................................................................15

Table 2.7: The UK Canned Soup Sector by Type of Product by Value at Current Prices(£m at rsp and %), 2010.............................................................................................................16

Meat...............................................................................................................................................16

Table 2.8: The UK Canned Meat Sector by Value at Current Prices (£m at rsp),2006-2010......................................................................................................................................17

Table 2.9: The UK Canned Meat Sector by Type of Product by Value at Current Prices(£m at rsp and %), 2010.............................................................................................................18

Fruit.................................................................................................................................................19

Table 2.10: The UK Canned Fruit Sector by Valueat Current Prices (£m at rsp and %), 2006-2010....................................................................19

Table 2.11: The UK Canned Fruit Sector by Type of Product by Value at Current Prices(rsp and %), 2010.........................................................................................................................20

Pasta...............................................................................................................................................20

Table 2.12: The UK Canned Pasta Sector by Valueat Current Prices (£m at rsp and %), 2006-2010....................................................................21

Table 2.13: The UK Canned Pasta Sector by Type of Productby Value at Current Prices (£m at rsp and %), 2010.............................................................21

Desserts..........................................................................................................................................22

Table 2.14: The UK Canned Desserts Sector by Valueat Current Prices (£m at rsp and %), 2006-2010....................................................................22

Table 2.15: The UK Canned Desserts Sector by Type of Productby Value at Current Prices (£m at rsp and %), 2010.............................................................23



Cooking Sauces.............................................................................................................................23

Table 2.16: The UK Canned Cooking Sauces Sector by Valueat Current Prices (£m at rsp and %), 2006-2010....................................................................24

Table 2.17: The UK Canned Cooking Sauces Sector by Type of Product by Valueat Current Prices (£m at rsp and %), 2010..............................................................................25

OVERSEAS TRADE......................................................................................................................25

General Overview........................................................................................................................25

3. Industry Background 26

RECENT HISTORY.......................................................................................................................26

NUMBER OF COMPANIES.......................................................................................................26

REGIONAL VARIATIONS IN THE MARKETPLACE.............................................................26

DISTRIBUTION.............................................................................................................................27

Table 3.3: The UK Market for Canned Foodsby Retailer Share by Value (%), 2010.......................................................................................27

HOW ROBUST IS THE MARKET?...........................................................................................28

LEGISLATION...............................................................................................................................28

Food Safety Act 1990..................................................................................................................28

Food Labelling Regulations 1996..............................................................................................29

Food Standards Act 1999............................................................................................................29

Other Food Legislation...............................................................................................................30

KEY TRADE ASSOCIATIONS....................................................................................................30

Canned Food UK..........................................................................................................................30

The Food Processors Association...............................................................................................30

Metal Packaging Manufacturers Association ........................................................................30

4. Competitor Analysis 31

THE MARKETPLACE..................................................................................................................31

Table 4.1: Selected Leading Manufacturers of UK Canned Food Productsby Turnover and Pre-Tax Profit (£000), Latest Financial Year End.....................................31

MARKET LEADERS.....................................................................................................................32

Baxters Food Group Ltd..............................................................................................................32

Del Monte (UK) Ltd......................................................................................................................32

Glenryck Foods Ltd......................................................................................................................33

Gondola Group Ltd......................................................................................................................34

HJ Heinz Company Ltd................................................................................................................34

John West Foods Ltd...................................................................................................................36

Petty, Wood & Co Ltd..................................................................................................................36

Premier Foods PLC........................................................................................................................37

Princes Ltd.....................................................................................................................................38



Tulip Ltd.........................................................................................................................................38

Other Companies.........................................................................................................................39

OUTSIDE SUPPLIERS..................................................................................................................39

MARKETING ACTIVITY.............................................................................................................40

Main Media Advertising.............................................................................................................40

Table 4.2: Main Media Advertising Expenditure on Leading Canned Food Brandsby Sector (£000), Years Ending September 2009 and 2010.................................................41

Exhibitions and Trade Shows.....................................................................................................43

5. Brand Strategy 44

INTRODUCTION..........................................................................................................................44

RESEARCH FINDINGS................................................................................................................44

Convenience..................................................................................................................................44

Table 5.1: Purchasing of Canned Foods in the Past 12 Months Owing to Convenienceby Sex, Age, Social Grade, Working Status, Region, Size of Household and Presenceof Children in the Household (% of respondents), 2011.....................................................45

Value...............................................................................................................................................47

Table 5.2: Purchasing of Canned Foods in the Past 12 Months Owing to Value by Sex,Age, Social Grade, Working Status, Region, Size of Household and Presenceof Children in the Household (% of respondents), 2011.....................................................48

Flavour............................................................................................................................................49

Table 5.3: Purchasing of Canned Foods in the Past 12 Months Owing to Flavourby Sex, Age, Social Grade, Working Status, Region, Size of Household and Presenceof Children in the Household (% of respondents), 2011.....................................................50

Health.............................................................................................................................................52

Table 5.4: Purchasing of Canned Foods in the Past 12 Months Owing to HealthProperties by Sex, Age, Social Grade, Working Status, Region, Size of Householdand Presence of Children in the Household (% of respondents), 2011............................53

Shelf Life........................................................................................................................................54

Table 5.5: Purchasing of Canned Foods in the Past 12 Months Owing to Shelf Lifeby Sex, Age, Social Grade, Working Status, Region, Size of Household and Presenceof Children in the Household (% of respondents), 2011.....................................................55

COMPANIES’ BRANDS..............................................................................................................57

Vegetables.....................................................................................................................................57

Fish..................................................................................................................................................57

Soup................................................................................................................................................58

Meat...............................................................................................................................................58

Fruit.................................................................................................................................................58

Pasta...............................................................................................................................................58

Desserts..........................................................................................................................................58

Cooking Sauces.............................................................................................................................58



6. Strengths, Weaknesses, Opportunities and Threats 59

STRENGTHS..................................................................................................................................59

WEAKNESSES..............................................................................................................................59

OPPORTUNITIES.........................................................................................................................60

THREATS.......................................................................................................................................60

7. Buying Behaviour 62

CONSUMER PENETRATION.....................................................................................................62

Baked Beans..................................................................................................................................62

Table 7.1: Penetration of Baked Beans in the Last 12 Monthsby Sex and Age (% of adults), 2010.........................................................................................62

Soup................................................................................................................................................63

Table 7.2: Penetration of Soup in the Last 12 Months by Sex,Age, Social Grade and Region (% of adults), 2010...............................................................63

Cooking Sauces.............................................................................................................................64

Table 7.3: Penetration of Canned Cooking Sauces in the Last 12 Months by Sex, Age,Social Grade and Region (% of adults), 2010.........................................................................65

Baby Foods....................................................................................................................................66

Table 7.4: Penetration of Canned Baby Food in the Last 12 Months by Sex, Age,Social Grade and Region (% of adults), 2010.........................................................................66

8. Current Issues 68

THE GLOBAL ECONOMY.........................................................................................................68

ENVIRONMENTAL ISSUES.......................................................................................................68

CARTONS VERSUS CANS..........................................................................................................69

HEALTH ISSUES...........................................................................................................................71

Bisphenol A (BPA)........................................................................................................................71

Sugar, Salt and Additives............................................................................................................72

Pregnant Women and Mercury.................................................................................................72

CONSUMER DEMAND..............................................................................................................73

Canned Mackerel.........................................................................................................................73

9. The Global Market 74

TOTAL MARKET SIZE................................................................................................................74

EUROPE.........................................................................................................................................74

THE US...........................................................................................................................................74

PEOPLE’S REPUBLIC OF CHINA..............................................................................................75



10. Forecasts 76

INTRODUCTION..........................................................................................................................76

THE ECONOMY...........................................................................................................................76

Table 10.1: Forecasts for the UK Economy (000, % and million), 2010-2014...................77

Demographics...............................................................................................................................77

Table 10.2: Projected UK Population by Age (million),2008, 2013, 2018, 2023, 2028 and 2033...................................................................................78

FORECASTS 2011 TO 2015......................................................................................................78

Table 10.3: The Forecast Total UK Canned Foods Market by Sector by Valueat Current Prices (£m at rsp), 2011-2015.................................................................................79

Figure 9.1: The Forecast Total UK Canned Foods Market by Valueat Current Prices (£m at rsp), 2011-2015.................................................................................80

MARKET GROWTH....................................................................................................................80

Figure 9.2: Growth in the UK Canned Foods Market by Valueat Current Prices (£m at rsp), 2006-2015.................................................................................81

FUTURE TRENDS.........................................................................................................................81

New Product Development........................................................................................................81

11. Company Profiles 83

BAXTERS FOOD GROUP LTD..................................................................................................84

DEL MONTE (UK) LTD...............................................................................................................86

GLENRYCK FOODS LTD............................................................................................................88

GONDOLA GROUP LTD............................................................................................................90

HJ HEINZ COMPANY LTD........................................................................................................92

JOHN WEST FOODS LTD..........................................................................................................94

PETTY, WOOD & CO LTD........................................................................................................96

PREMIER FOODS PLC................................................................................................................98

PRINCES LTD..............................................................................................................................100

SIMPSON READY FOODS LTD..............................................................................................102

TULIP LTD...................................................................................................................................104

12. Company Financials 106

13. Further Sources 108

Associations...............................................................................................................................108

Publications...............................................................................................................................108

General Sources.......................................................................................................................109



Government Publications ....................................................................................................109

Other Sources...........................................................................................................................110

Key Note Sources ....................................................................................................................111

Understanding TGI Data 115

Number, Profile, Penetration..............................................................................................115

Social Grade...............................................................................................................................116

Standard Region......................................................................................................................116

Key Note Research 117

The Key Note Range of Reports 118



• "One of the biggest positives about thecanned food category is that it isunderpinned by strong consumerloyalty. Canned food is a storecupboard staple and, as such, strongmerchandising and promotions candrive great sales spikes while majortroughs are rare.”

Ruth Simpson, Marketing Director of Princes Ltd(The Grocer, 29th October 2010)

• “With the recession biting, consumerswant greater value from everydayfoods.”

Harvey Aaron, Sales Director Northern Europefor Dole Packaged Foods Europe(The Grocery Trader, 11th June 2009)

• "The main thing about canned food isthe consumer assumption that whenyou open a can the food will always beusable, fresh and palatable."

Nick Mullen, Director of Metal PackagingManufacturers Association(foodmanufacture.co.uk, 6th December 2010)

• “Of all the packaging mediums, weregard cans as the most effective. Thestrength also allows them to behandled within the industry: fromfactory gate to shop shelf."

Steve Thomas, Chairman of Canned Food UK(foodmanufacture.co.uk, 6th December 2010)

Canned Foods


• “Metal packaging has strongsustainability credentials and we areconstantly looking at how we canimprove this position and reduce thecarbon footprint of metal cans evenfurther.”

Gordon Shade, Chief Executive of European MetalPackaging (EMPAC), (foodmanufacture.co.uk,27th July 2010)

Canned Foods


Executive Summary

This Key Note Market Report Plus examines the UK canned foods market. Themarket has been growing in value steadily in recent years, thanks to its trustedformat and a wave of new product innovations aimed at training consumerloyalty. However, since 2008 this growth has been accelerated rapidly in valueterms due to rising commodity prices, such as that of metal used in the canningprocess, and a sharp increase in food price inflation.

Key Note divides the canned foods market into eight main sectors: vegetables,fish, soup, meat, fruit, pasta, desserts, and cooking sauces. Canned vegetablescomprise the largest sector, with retail sales of £739m in 2010, a 30.8% stakeof the total market. With the exception of canned fruits, desserts and cookingsauces, most sectors showed growth between 2009 and 2010 in value terms,although volume sales are generally declining across the market. The cannedvegetables sector, however, is bucking this trend, mostly due to the popularityof baked beans. The recession encouraged consumers to stock up on cannedfoods, the cheaper alternative to other formats, but even this didn’t stop thevolume decline altogether.

The major companies in the UK dominate the market. These companies alsohave a strong presence in the international market and come with strongbrands and immense buying power, making it very difficult for new, smallercompanies to enter the market. Three of the largest multinational companieswith bases in the UK are Princes (owned by the Japanese MitsubishiCorporation), Heinz and Del Monte. The barriers for entry into the market areso high because of these companies; when this is combined with falling volumesales, very few, specialist niche players have a chance to enter the market.

In January 2011, Key Note commissioned a NEMS market research survey toassess consumer attitudes towards canned foods. The survey produced somesurprising results, including finding that fewer people bought canned foodsfor their value than was first assumed, in light of the recession — just 5.7% ofthe respondents stated that they consumed canned foods for this reason.However, the survey confirmed that convenience was a major factorconsidered when consumers purchased canned foods. Shelf life was also quiteimportant — perhaps consumers regard the ability to store canned goods fora long period of time as a way to protect themselves from food price inflation.

Key Note predicts growth in terms of value sales in the 5 years between 2011and 2015, supported by rising commodity prices; the market will grow byapproximately 16.7% over the forecast period, a 50.8% increase on the 2006figure. Volume sales will continue to be shored up by the aftermath of therecession, such as high unemployment, but Key Note believes it to be unlikelythat this can reverse the decline in the market in terms of volume. Value salesfor some individual sectors, such as canned desserts and canned cooking sauces,are likely to fall quite rapidly due to the rising popularity of other packagingformats.

Canned Foods Executive Summary

© Key Note Ltd 2011 1

1. Market Definition

REPORT COVERAGE

This Key Note Market Report Plus examines the UK canned foods market, awell-established sector of the grocery market which has been prominent formany decades. However, in recent years canned foods have been facingincreased competition from other packaging formats, although few of thesehave the advantage of being a trusted, well-known preservation method.Canned goods have a long shelf life, which is very appealing, and are thereforeeasy to store. Canned foods also include a wide variety of food types. For thepurpose of this report, the market is divided into eight sectors, all of which aredetailed below.

MARKET SECTORS

• Vegetables — this is the largest and most diverse sector of the market andheld an approximate 30.8% share of the total canned foods market in 2010.In 2008, the baked beans category was worth nearly half (49.3%) of thecanned vegetables sector in terms of retail selling prices (rsp), but stronggrowth indications have raised this figure to around 52.2% of the cannedvegetables sector in terms of value in 2010. Other categories included cannedpeas and sweetcorn. The sector is benefiting from the increasing popularityof ethnic foods, a trend which is introducing untraditional vegetables to theUK market.

• Fish — this is another wide and diverse category and includes several speciesof fish such as tuna, salmon and anchovies, as well as canned shellfish suchas crab meat.

• Soup — a very traditional and long-established cornerstone of the cannedfoods market which comes both in condensed and standard varieties.

• Meat — popular types of canned meats include ham and corned beef. Thissector also includes canned ready meals, such as canned pies and chilli concarne.

• Fruit — this sector includes nearly every type of fruit available on the freshproduce market, but in canned format. Available canned fruits includepeaches, apples, strawberries, pears and cherries. This sector also technicallyincludes canned tomatoes, which are strictly classed as a fruit but will comeunder the vegetable umbrella for the purposes of this report, purely becauseof the way that they are used in cooking.

• Pasta — canned pasta is generally aimed at a younger audience. Spaghettiproducts are the most popular variant, with products such as regularspaghetti, spaghetti hoops and alphabet-shaped spaghettis.

Canned Foods Market Definition


• Desserts — this sector can be divided into three main subsectors: milkpuddings, canned custards and sponge puddings.

• Cooking sauces — canned cooking sauces are now increasingly threatenedby new packaging formats. Sales of sauces in plastic and glass containers areon the rise, targeting consumers who want the combination of quick andeasy preparation and a re-sealable product. The sector is dominated by ethnicsauces designed to make dishes such as stir-fries, Mexican dishes and curriesof various cuisines.

MARKET TRENDS

The Recession

The recession ended in the last quarter of 2009 and 2010 began with economicgrowth, though this growth has been slow and tentative. The effects of therecession were still lingering even as 2010 came to a close, especially in wakeof the Government’s cuts aiming to reduce the budget deficit. An economichangover has left job cuts as well as pay and hiring freezes on the cards for thefuture, which means that money is still as tight for many consumers as it wasduring the recession.

Such a climate sparks demand for canned foods as they are generally lessexpensive when compared with their fresh counterparts and there is usuallyvery little waste. A very long shelf life is also appealing, because it protectsconsumers from price increases caused by inflation if they buy canned foodsand store them before such increases. Volume sales of canned goods had beendeclining pre-2009 and pre-recession as consumers increasingly opted for thepricier, fresh alternatives; 2009 and 2010 saw this decrease in volume sales slowas cheaper canned goods became the more favoured option.

Environmental Concerns

Although cans have been seen as an environmentally friendly option due tothe wide availability of recycling facilities for steel and aluminium, the UKachieves very low recycling figures for cans. According to the websiteGreenBoxDay, the UK only recycles 2.5 billion of the 12.5 billion cans it useseach year. Also, owing to their weight, cans are less environmentally friendlyto transport than lighter alternatives such as cartons, as they produce a biggercarbon footprint. Furthermore, the cylindrical shape of cans means that theytake up more space in a shipment compared with cartons, further increasingtheir carbon footprint. Cuboids make for perfect shelf and transport spaceoptimisation.



However, cartons are made mostly out of wood fibre; this can be recycled butthe quality degrades each time until it is eventually no longer reusable andmust end up in landfill. This compares with steel and aluminium cans, whichcan be recycled very nearly ad infinitum and not lose their quality. Also, cansare much more durable than cartons, which means that they are preferred infactories and retail as they are much less likely to break or burst during theshipping and handling process. The waste produced through less durablecartons is also bad for the environment. Consumers trust cans as a long-lifeproduct over cartons and so cans are unlikely to lose much ground to cartonsin the near future.

Convenience Foods

Food markets have been driven by a demand for convenience foods for severaldecades. This trend led to the explosion in popularity of appliances such asmicrowaves and has affected the food industry itself in terms of the productsmanufacturers produce.

The canned foods market has been quick to exploit the growing demand forconvenience products with easy-to-prepare credentials from those who wishto prepare meals with minimal time and effort. An increasing number ofparents are balancing full-time jobs and raising families, drastically reducingthe time available for preparing meals and increasing a reliance on cannedfoods — canned vegetables, for instance, are ready-prepared inside the canand require no preparation other than the cooking process.

However, the trend towards convenience foods also means a trend towardsalternative forms of packaging. Although canning has been a trusted methodof food preservation for decades in the UK, alternatives such as glass, plasticand pouches are being introduced to the market. These products are resealable— therefore enabling the consumer to only use as much as is desired, asopposed to having to use the total content of the packaging in one go — thusreducing waste, and are also able to go straight in the microwave, whereasmetal cans cannot.

Health Concerns

The Department of Health has been heavily promoting the link between healthand diet in response to the UK’s rising obesity levels. The most recent HealthSurvey for England (HSE) conducted by the NHS was in 2008, which revealedthat more than three-fifths (61.4%) of adults were either overweight or obese;the same was true of 27.3% of children. The Department of Health estimatesthe cost of treating conditions directly related to obesity at £4.2bn, a figurethat will double by 2050 if action is not taken. The Government recommendsa minimum serving of five portions of fruit and vegetables every day and iskeen to promote the fact that vegetables from cans count towards thisbenchmark, which appeals to consumers who feel that they do not have thenecessary time to prepare fruit and vegetables themselves, aiding the cannedvegetables sector greatly.



Another boost to the canned foods market is the rise in popularity of oily fishas a source of Omega-3, which is also promoted by the Government. TheDepartment of Health reveals a raft of benefits from eating oily fish, includingits role in preventing heart disease. Manufactures have been quick to cash inon this trend, proclaiming the health benefits of their canned fish products tothe general public. Again, the canned format makes for a much moreconvenient option than preparing fresh fish for home consumption.

ECONOMIC TRENDS

Staple foods, including those found in cans, are unlikely to be affected byeconomic trends because, no matter how dire the finances of consumers maybe, they still have to eat. Canned foods, however, are a good option duringtimes of economic difficulty because of their relatively low cost whencompared with other varieties of food. This has kept the market buoyant inrecent years.

Population

The UK resident population stood at 61.8 million in 2009, up by 0.6% from 2008and up by 2.6% on 2005’s figure of 60.2 million. As the UK’s populationcontinues to grow, so does the demand for all foodstuffs, including cannedfoods. Much of the increase in population is accounted for by immigration; dueto this demographic, there is a growing demand for ethnic foods from therespective countries of origin — one of the best-known ways to preserve andship goods is by canning them. An increasing population is likely to increasedemand for canned ethnic foods from domestic origins also, which will furtherboost sales of canned foods.

Table 1.1: UK Resident Population Estimates by Sex (000),Mid-Years 2005-2009

2005 2006 2007 2008 2009

Female 30,742 30,895 31,068 31,244 31,418

Male 29,493 29,689 29,918 30,154 30,374

Total 60,235 60,584 60,986 61,398 61,792

% change year-on-year - 0.6 0.7 0.7 0.6

Source: Monthly Digest of Statistics, November 2010, National Statistics website© Crown copyright material is reproduced with the permission of the Controllerof HMSO (and the Queen’s Printer for Scotland)



Gross Domestic Product

The UK’s gross domestic product (GDP) contracted in the final two quarters of2008, the harbinger of the recession. 2009 saw further reductions in the UK’sGDP in both current and chain-linked terms. When GDP falls, so doesemployment, investment, spending and production, which is poor news formost markets. However, the canned foods market is likely to shrug off thedownturn with greater ease than its rivals in other sectors because of its robustmarket. The demand for food will always exist.

Table 1.2: UK Gross Domestic Product at Current andAnnual Chain-Linked Prices (£m), 2005-2009

2005 2006 2007 2008 2009

Current prices 1,254,058 1,328,363 1,404,845 1,445,580 1,392,634

% changeyear-on-year - 5.9 5.8 2.9 -3.7

Annual chain-linkedGDP 1,292,335 1,328,363 1,364,029 1,363,139 1,295,159

% changeyear-on-year - 2.8 2.7 -0.1 -5.0

GDP — gross domestic product

Source: Economic & Labour Market Review, November 2010, National Statisticswebsite © Crown copyright material is reproduced with the permission of theController of HMSO (and the Queen’s Printer for Scotland)

Inflation

Inflation fell by 0.3 percentage points in 2008, from 4.3% to 4%. In 2009, it fellby 4.5 percentage points, taking the country into deflation. Prior to this,inflation had been rising (reaching a peak of 4.3% in 2007, up 1.5 percentagepoints from 2005).



Table 1.3: UK Rate of Inflation (%), 2005-2009

2005 2006 2007 2008 2009

Inflation (%) 2.8 3.2 4.3 4.0 -0.5

Percentage point changeyear-on-year - 0.4 1.1 -0.3 -4.5

Note: inflation is at retail price index (RPI); data shown are annual average changes.

Source: Focus on Consumer Price Indices — Data for October 2010, publishedNovember 2010, National Statistics website © Crown copyright material isreproduced with the permission of the (and the Queen’s Printer for Scotland)Controller of HMSO

Unemployment

The number of unemployed people in the UK spiked dramatically in 2009 to1.53 million. In the years prior to this, the figures had been fairly steady,between 860,000 and 950,000, but the recession caused widespread lay-offs ascompanies had to cut costs to survive. National Statistics revealed thatunemployment hit a peak of 2.3 million in the 3 months ending April 2010, thehighest since November 1996. Unemployment leads to lower disposableincome for consumers, which means that they are likely to turn to cheaperalternatives such as canned foods.

Table 1.4: Actual Number of Unemployed Persons in the UK(million), 2005-2009

2005 2006 2007 2008 2009

Actual number of claimants(million) 0.86 0.95 0.86 0.91 1.53

% change year-on-year - 10.5 -9.5 5.8 68.1

Source: Monthly Digest of Statistics, November 2010, National Statistics website© Crown copyright material is reproduced with the permission of the Controllerof HMSO (and the Queen’s Printer for Scotland)



Household Disposable Income

Despite the tough economic climate, household disposable income has risenyear-on-year since 2005. The rise in household income slowed in 2010 due todeflation. Whereas in inflationary circumstances the size of a debt such as amortgage shrinks in real terms, during deflation the value of that debtincreases in real terms and the value of any repayments made falls, decreasingdisposable income. 2009’s deflation caused the slowdown in the overall trendof a rising household disposable income, which grew by just 1.7%.

Table 1.5: UK Household Disposable Income Per Capita(£), 2005-2009

2005 2006 2007 2008 2009

Household disposable income(£) 13,572 14,080 14,453 14,976 15,225


Source: Economic & Labour Market Review, November 2010, National Statisticswebsite © Crown copyright material is reproduced with the permission of theController of HMSO (and the Queen’s Printer for Scotland)

MARKET POSITION

The UK

Overall, the recession has had a positive impact on the UK’s canned foodsmarket. Marketing Director (MD) of Princes, Ruth Simpson, shared thefollowing in an article in The Grocer on 29th October 2010:

“One of the biggest positives about the canned food categoryis that it is underpinned by consumer loyalty. Canned food is astore cupboard staple and, as such, strong merchandising andpromotions can drive great sales spikes while major troughs arerare.”

In 2008, 2.9% of total UK household expenditure on food went on cannedfoods, down from 3.2% in 2006. For 2009, expenditure on canned goods wasaround 2.7% of the total household expenditure on food. Total expenditureon food rose sharply in 2010 due to inflation and the price of commodities suchas wheat. In 2010, Key Note estimates that household expenditure on cannedfoods amounted to £2.4bn at rsp, approximately 2.7% of total householdexpenditure on food.



Table 1.6: Total UK Household Expenditure on Food andHousehold Expenditure on Canned Foods

(£m at rsp and %), 2006-2010

2006 2007 2008 2009 2010

Total household expenditure onfood (£m at rsp) 60,627 67,125 74,790 83,813 88,365

Household expenditure on cannedfoods (£m at rsp)e 1,955 1,996 2,162 2,298 2,398

Expenditure on canned foods as a% of total expenditure on food 3.2 3.0 2.9 2.7 2.7

rsp — retail selling prices

e — Key Note estimates

Source: Consumer Trends, Quarter 2 2010, National Statistics © Crown copyrightmaterial is reproduced with the permission of the Controller of HMSO (and theQueen’s Printer for Scotland)/Key Note

Overseas

According to Steve Thomas, Chairman of the industrial body Canned Foods UK,‘a third of the market [in terms of volume] including most canned fruit, fishand tomatoes, [is] imported’. A great deal of the UK’s canned food comes fromabroad purely because they are foods that are grown or caught abroad and,as is the procedure for the canned foods industry, are processed and tinned assoon as possible to keep them fresh. The value of the canned foods marketworldwide has generally risen because of a rise in commodities (food, steel andaluminium) and is not necessarily fuelled by an increase in volume sales acrossthe entire market, although some areas did see volume sales growth.

Russia, the UK, the US, Japan, Germany and France are the six countries thataccount for 75% of all canned ready meal sales. The four major growingeconomies are shortened to ‘BRIC’ (Brazil, Russia, India and the People’sRepublic of China [PRC]); these countries are all persistently buying more andmore food — including tinned food — as they become wealthier. Witheconomic growth comes a boom in the consumer market, including that ofgroceries. Brazil, for example, has seen a huge surge in the demand for tinnedfood, a trend that The Can and Aerosol News considers ‘irreversible’. There isgrowing demand in the PRC for meat products to supplement the traditionaldiet that was previously low in meat, mostly due to the expense involved. Asthese four economies expand they demand more food resources, which inflatesthe price of such products across the globe.



2. Market Size

THE TOTAL MARKET

Sales of canned foods rose throughout the review period, from £1.96bn (atretail selling prices [rsp]) in 2006 to £2.4bn in 2010, an increase of 22.6%. Salesof canned fruit and canned desserts declined in 2010 and sales of cookingsauces remained steady, but the other sectors experienced growth. High foodprice inflation, as well as steep increases in the price of steel and aluminium,has spurred some of these increase in value.

Despite the fact that the market increased in terms of value over the reviewperiod, The Grocer reported a 4.3% fall in terms of volume, but also revealedthat sales of canned foods by volume only decreased by 0.2% in 2010,suggesting that the sector may be poised to return to growth in volume terms.However, it must be noted that Key Note predicts the market in terms of value,not volume. The recession seems to have had a somewhat positive effect onthe market in that more consumers are stocking up on canned goods, but thishas not actually caused growth in terms of volume, but rather managed toreverse the trend of decline.

Table 2.1: The Total UK Canned Foods Market by Sector by Valueat Current Prices (£m at rsp and %), 2006-2010

2006 2007 2008 2009 2010

% ofTotal2010

Vegetables 502 531 629 700 739 30.8

Fish 438 445 475 490 525 21.9

Soup 350 353 380 420 440 18.4

Meat 299 303 313 325 333 13.9

Fruit 148 149 142 140 138 5.8

Pasta 117 118 122 123 124 5.2

Desserts 82 81 84 82 80 3.3

Cooking sauces 19 16 17 18 18 0.8

Table continues...

Canned Foods Market Size


Table 2.1: The Total UK Canned Foods Market by Sector by Valueat Current Prices (£m at rsp and %), 2006-2010

...table continued

2006 2007 2008 2009 2010

% ofTotal2010

Total 1,955 1,996 2,162 2,298 2,397 †100.0



† — does not sum due to rounding

Source: Key Note

Figure 2.1: The Total UK Canned Foods Market by Sectorby Value at Current Prices (£m at rsp and %), 2006-2010

Vegetables

Fish

Soup

Meat

Fruit

Pasta

Desserts

Cooking sauces

2006 2007 2008 2009 20100

250

500

750

1,000

1,250

1,500

1,750

2,000

2,250


Source: Key Note



BY MARKET SECTOR

Vegetables

Canned vegetables comprise the largest sector of the UK canned foods market,holding a 30.8% share of the total market in 2010 and a value of £739m, up47.2% from £502m in 2006. New product innovations, as well as the lingeringeffects of the recession, are likely to have driven this increase.

Table 2.2: The UK Canned Vegetables Sector by Valueat Current Prices (£m at rsp and %), 2006-2010

2006 2007 2008 2009 2010

Value (£m at rsp) 502 531 629 700 739


Share of total market (%) 25.7 26.6 29.1 30.5 30.8


Source: Key Note

By far the largest subsector of the canned vegetables sector is baked beans,with a market value of £385.4m at rsp in 2010, accounting for 52.2% of salesin the canned vegetables sector. In 2008, Key Note estimated a 49.3% marketshare for baked beans and a value of £310m. This is due to a number of reasons,including Branston launching its baked beans to compete with Heinz, whichstarted a war of product innovation between the two rivals to produce a widervariety of beans to compete with each other. The greater the range ofproducts, the more likely consumers are to find a niche that fits their particulartaste, and so a greater volume of products is sold; baked beans comprise oneof the few subsectors to have bucked the trend of a volume slowdown.

Sales of canned tomatoes increased in value by 18.4% in 2010 compared with2008, from £150m to £177.6m. The market share accounted for by tomatoesdid not increase considerably in 2010 (up 0.2 percentage points from 23.8% in2008). The cost of importing tomatoes from Italy, where the majority of theUK’s canned tomatoes are sourced from, increased in early 2010 due to a weakand fluctuating sterling and a general rise in prices. Canned tomatoes can beused to create simple Italian dishes from scratch at home without the hassle ofpreparing fresh vegetables (some canned tomatoes even come pre-chopped),a trend which will become increasingly prevalent as home cooking is turned toas an alternative to expensive meals out in restaurants.



For the canned peas sector, Key Note predicts a fairly considerable decline in2010, down 12.5% on 2008’s £93m to a market value of £81.4m. This is due toa rise in the popularity of frozen peas, which are just as easy to prepare ascanned peas and have not been at the centre of a controversy about their poorhealth qualities (such as high sugar and salt contents) because they have notbeen preserved any other way apart from freezing. Also, Birds Eye launched aresealable bag of frozen peas in late 2010, further increasing the convenienceof frozen peas over canned.

Sales of sweetcorn increased in value in 2010 to £70.2m. The share of thecanned vegetable sector accounted for by sweetcorn increased from 8.3% in2008 to 9.5% in 2010 as a result of a number of factors, including the GreenGiant brand reducing the salt and sugar content in their products. Ed Culf,Marketing Director (MD) of General Mills, was quoted in The Grocer in October2010 revealing that he believes canned sweetcorn plays an essential part inhousekeeping since the recession. He says:

“Price is top of the decision hierarchy when purchasing cannedveg, but brand is top when buying sweetcorn... [There is] a seriesof recipes demonstrating how it can be used as a healthy,value-for-money option, particularly at family mealtimes.”

Sweetcorn, like the majority of food, has been subject to price rises since 2008,which explains some of the considerable rise in value sales on the previousyears. However, sweetcorn has also become much more popular of late, thanksto aforementioned innovations that give it a healthier image and a campaignby Green Giant and other manufacturers revealing that sweetcorn countedtowards a person’s five-a-day.

Table 2.3: The UK Canned Vegetables Sector by Type of Productby Value at Current Prices (£m at rsp and %), 2010

Value (£m at rsp) % of Total

Baked beans 385.4 52.2

Tomatoes 177.6 24.0

Peas 81.4 11.0

Sweetcorn 70.2 9.5

Other 24.4 3.3

Total 739.0 100.0


Source: Key Note



Fish

Canned fish is the second-largest category in the canned foods market. Its shareof the market grew very slightly between 2009 and 2010, up from 21.3% to21.9%. Part of this increase is likely to be the result of a rising cost incommodities used in the canning process, as well as a rise in the cost of fish asstocks become scarce. There are a number of new product developments(NPDs) in this sector which have contributed to canned fish’s success, includingJohn West’s No Drain tuna. As well as this, there has been an increasing amountof promotion when it comes to the health benefits of fish and the Omega-3 itcontains.

Table 2.4: The UK Canned Fish Sector by Valueat Current Prices (£m at rsp and %), 2006-2010

2006 2007 2008 2009 2010

Value (£m at rsp) 438 445 475 490 525




Source: Key Note

Tuna continues to be the most popular type of canned fish, partly due toinnovations by companies such as John West popularising the product.However, tuna prices increased by nearly 40% in 2008, and the price of salmon,the second-most popular fish in the canned fish sector, increased sharply in2010 due to poor stocks. These factors have increased their value in terms ofretail selling prices, but volumes appear to be falling as some shoppers favourcheaper products such as sardines. These also come under the umbrella of oilyfish and have received promotional support purporting their health benefits.



Table 2.5: The UK Canned Fish Sector by Type of Productby Value at Current Prices (£m at rsp and %), 2010


Tuna 334.4 63.7

Salmon 89.3 17.0

Mackerel 40.4 7.7

Sardines 34.1 6.5

Others (includingpilchards and shellfish) 26.8 5.1

Total 525.0 100.0


Source: Key Note

Soup

Both the beginning and close of 2010 saw very harsh winter weather, whichtraditionally fuels demands for soups and other comfort foods as ‘winterwarmers’. As well as providing a healthy, warming meal, especially essentialfor the elderly during a prolonged spell of cold weather, canned soup has avery long shelf life, which means that it can be kept in store cupboards forwhen the weather is particularly poor. All of these factors led to soupexperiencing strong growth in 2010, with its market value increasing to £440m,up by more than a quarter (25.7%) on 2006.

Table 2.6: The UK Canned Soup Sector by Valueat Current Prices (£m at rsp and %), 2006-2010

2006 2007 2008 2009 2010

Value (£m at rsp) 350 353 380 420 440




Source: Key Note



Standard soups have recorded an increase in value thanks to the inclusion ofown brands within this category, which are becoming ever more popularowing to a general decrease in consumer spending but a desire for warmingproducts over the winter. The condensed soup subsector is also growing, albeitonly by a small amount; this growth is attributed to the fact that they areincreasingly being used as bases for home-cooked meals, made from scratch.The market share of low-calorie soups has declined to 8.4% due to increasedpromotion from other major brands of their own reduced-fat and -salt soups,which increases their appeal to a new generation of health-consciousconsumers who are returning to regular varieties now that they have similarhealth benefits.

The premium and thick soups category is also in decline, having been muscledout by carton formats such as New Covent Garden fresh and chilled soups. InSeptember 2010, Covent Garden brought out its extra-thick chunky range inpots not cans; this product straddles both the premium and thick soupcategories and is one such innovation that is affecting both market sectors. Asthe market size for canned foods increased in 2010, soups held an 18.4% shareof the canned foods market.

Table 2.7: The UK Canned Soup Sector by Type of Productby Value at Current Prices (£m at rsp and %), 2010


Standard 240.7 54.7

Premium 90.8 20.6

Thick 45.3 10.3

Low-calorie 36.9 8.4

Condensed 26.3 6.0

Total 440.0 100.0


Source: Key Note

Meat

The canned hot meat sector has grown in both market share and value in recentyears, taking over the cold meats market. There have been a number of NPDsin the hot meat category (which includes canned ready meals, pies and mince),which have contributed to the increase.



Table 2.8: The UK Canned Meat Sector by Value at Current Prices(£m at rsp), 2006-2010

2006 2007 2008 2009 2010

Value (£m at rsp) 299 303 313 325 333




Source: Key Note

It appears that the canned pies sector has seen strong growth in 2010 due toseveral new product innovations. Re-launches, such as that of Princes cannedpies, attracted quite a large amount of promotional activity. The success ofcanned pies has been detrimental to the two categories above it in terms ofretail value (canned ready meals and canned pie fillers), a trend that is quitelikely to continue in 2011.

Ready meals now come in much more convenient formats. Ethnic foods are themost popular type of ready meals and, while those that come in cans do notcontain rice (placing their ‘ready meal’ moniker under scrutiny for some), otherformats, such as frozen ready meals, do contain rice and thus the entire mealin one, possibly making the canned ready meals option less popular.

Sales of canned pie fillings were down. This is partly due to the fact that therehas been a great amount of innovation in the canned pies sector in an attemptto make them more palatable and increase competition between variousbrands on the market. Due to the convenience and the improved taste ofcanned pies, consumers are opting to purchase fewer cans of pie fillingsbecause creating a pie from a can of pie filling is much more labour-intensivethan simply opening a can with a pie already inside.

Hot meat products have helped the canned meat market grow in volume andvalue; however, the cold meats market is in decline in terms of volume. Despitethis, high prices of beef following a recent switch away from cattle farming inArgentina to other, more prosperous farming methods (a trend that is likelyto be followed by other countries), plus higher freight costs and an increase inthe cost of raw materials for cans have somewhat disproportionately distortedthe retail prices upwards. The value of canned mince has increased by a fairlysizeable amount between 2008 and 2010 (from £5m to £11.9m), largely due toDelia Smith popularising the meat in her recipe books and television shows —a trend that was slow to catch on but took off when it did.



Corned beef generated the highest levels of retail sales in value terms in 2010.However, the market share of corned beef has not increased considerably since2008, only rising by 1.4 percentage points, from 22.1% to 23.5%. The majorityof the increases come from price inflation. Furthermore, cold meats have anold-fashioned image, turning younger generations away from them to otheroptions, which is likely to affect the market negatively in the future.

Table 2.9: The UK Canned Meat Sector by Type of Productby Value at Current Prices (£m at rsp and %), 2010


Hot Meats

Ready meals 66.4 19.9

Pies 45.1 13.5

Pie fillings and stewed steaks 34.0 10.2

Chicken 24.0 7.2

Mince 11.9 3.6

Other 20.8 6.2

Total hot meats 202.2 †60.7

Cold Meats

Corned beef 78.2 23.5

Ham 28.6 8.6

Chopped pork and ham 14.0 4.2

Other 10.0 3.0

Total cold meats 130.8 39.3

Total 333.0 100.0



Source: Key Note



Fruit

The canned fruit sector has been in decline in recent years — Key Noteestimates that 2010 saw a loss of 1.4% on 2009. This is due to a number offactors. Firstly, canned fruit is often preserved in syrup, giving it an unhealthyperception in an increasingly health-conscious society. Also, the availability offresh fruit continues to grow and is increasingly stocked all year round bysupermarkets from international suppliers. As well as this, canned fruit hascome under increasing pressure from plastic ‘snack pots’, which are consideredlunchbox friendly for children because of the ease with which they can beopened compared with canned fruit. In 2010, the sector represented 5.8% ofthe market’s total value.

Table 2.10: The UK Canned Fruit Sector by Valueat Current Prices (£m at rsp and %), 2006-2010

2006 2007 2008 2009 2010

Value (£m at rsp) 148 149 142 140 138

% change year-on-year - 0.7 -4.7 -1.4 -1.4



Source: Key Note

The pineapples sector is the only one that has shown growth on 2008’s levelsin terms of value, rising from £33.8m to £35.9m. Canned pineapple is DelMonte’s flagship canned fruit; the company saw financial difficulties in 2010which it managed to recover from via rebranding and restructuring. As itsflagship fruit, pineapple received a lot of this attention. Also, the other fruitsin this category are easy to get hold of, prepare and eat. Pineapples are trickyto prepare and require a lot of slicing and peeling, which means that thetinned, pre-prepared version is going to continue to be popular.



Table 2.11: The UK Canned Fruit Sector by Type of Productby Value at Current Prices (rsp and %), 2010


Pineapples 35.9 26.0

Peaches 25.9 18.8

Fruit cocktail 20.6 14.9

Pears 9.0 6.5

Others 46.6 33.8

Total 138.0 100.0


Source: Key Note

Pasta

The value of canned pasta fell until 2006, the beginning of the review period,and has shown slight growth since. The majority of canned pasta dishes areaimed at children (spaghetti hoops or alphabet spaghetti) and, as parentsbecome more aware of the health risks associated with the amounts of sugarand salt their children are consuming, they are turning away from cannedpasta. Similarly, dried pasta also has a very long shelf life and can be kept inthe cupboard as a staple and requires very little effort to cook — boiling driedpasta would take a similar amount of time to microwaving canned pasta, andit also gives dried pasta a healthier image than canned.

However, with the price of wheat rising, the price of durum wheat, used tomake pasta, is on the rise too. Even as volume sales fall it is likely that the sectorwill still hold its share in terms of value in the future because of these priceincreases.



Table 2.12: The UK Canned Pasta Sector by Valueat Current Prices (£m at rsp and %), 2006-2010

2006 2007 2008 2009 2010

Value (£m at rsp) 117 118 122 123 124




Source: Key Note

The canned pasta sector has shown growth, particularly between 2007 and2008. Growth levelled off in the following years but has still continuedmarginally. The expansion of the market is down to several factors, includingincreased awareness by manufacturers of the health concerns of parents, aswell as better marketing techniques. Heinz launched a new brand of cannedpasta in 2010, Heinz Mini Meals, which capitalise on advertising techniquessuch as bright colours for children and healthy nutrition for the parents.

Table 2.13: The UK Canned Pasta Sector by Type of Productby Value at Current Prices (£m at rsp and %), 2010


Pasta shapes 57.7 46.5

Pasta meals 43.5 35.1

Smooth spaghetti 14.1 11.4

Other 8.7 7.0

Total 124.0 100.0


Source: Key Note



Desserts

The market has been in decline in recent years. There are a number of reasonsfor this; for instance, there has been a large number of NPDs in the dessertssector. Farmhouse Foods brought out a dessert called the Lovetub, a chocolateor caramel sponge pudding, in late 2010. This was designed to be warmed inthe microwave and eaten straight from the tub as an alternative to ice cream.There are also now diet versions of ice cream, including R&R Ice Cream’s SkinnyCow range. Also, Thornton’s is branching out into the desserts market withchocolate cake and chocolate puddings. As baking techniques improve, cakeproducts last longer and are a more viable option for desserts, which lessensthe need for canned puddings with long shelf lives. Also, the canned dessertsmarket has an old-fashioned image, especially items such as sponge and milkpuddings, which means that they are favoured only by older customers andnot by the younger generation.

Table 2.14: The UK Canned Desserts Sector by Valueat Current Prices (£m at rsp and %), 2006-2010

2006 2007 2008 2009 2010

Value (£m at rsp) 82 81 84 82 80

% change year-on-year - -1.2 3.7 -2.4 -2.4



Source: Key Note

The canned desserts sector is declining in value relatively steadily; there wasslight growth in 2008, a year Heinz and Premier Foods invested heavily in themarket, but after this year it returned to decline. Heinz sold its frozen dessertsbusiness at the end of 2009, displaying a lack of confidence in the dessertsmarket in general. Canned desserts accounted for 3.3% of the total marketshare in 2010, with a value of £80m. Key Note predicts that this market willshrink further in the following years.



Based on 2008’s figures, the only subsectors of the canned desserts sector toshow growth in terms of market value are canned custards and canned spongepuddings. There are so many aforementioned alternatives to canned spongepuddings available which do not even require the effort of opening a can. Onceagain, canned milk puddings lost out because of their lack of a young image.Custard has advanced in value and market share purely because it is acondiment to be served with other fresh, un-canned puddings that consumersare now purchasing. Although custard comes in pouch form now, the cannedservings are generally enough for one helping, thus eliminating waste.

Table 2.15: The UK Canned Desserts Sector by Type of Productby Value at Current Prices (£m at rsp and %), 2010


Canned milk puddings 46.0 57.5

Canned custards 20.5 25.6

Canned sponge puddings 13.5 16.9

Total 80.0 100.0


Source: Key Note

Cooking Sauces

There are so many cooking sauce products on the market; the majority of whichare in formats other than cans. The main benefits of glass bottles and jars arethat they can be resealed, whereas pouches often contain specific amounts(i.e. just enough for one). These all limit the waste caused by a can’s lack of aresealable top and the fact that the canned cooking sauces market is often notas strictly portion-controlled as pouches are. However, canned sauces aremanaging to hold fairly steady without much fluctuation over the reviewperiod.



Table 2.16: The UK Canned Cooking Sauces Sector by Valueat Current Prices (£m at rsp and %), 2006-2010

2006 2007 2008 2009 2010

Value (£m at rsp) 19.0 16.0 17.0 18.0 18.0

% change year-on-year - -15.8 6.3 5.9 0.0



Source: Key Note

All cooking sauces have seen positive results as a result of the recession asconsumers stay at home and cook for themselves as an alternative to expensivetakeaways and meals out in restaurants. Indian curry sauces still had the largestshare of the market (51.7%) in 2010, an increase from 50% in 2008. This is dueto a rise in popularity of Indian food with the general public. Key Noteestimates that pasta sauces have also increased in value, moving from thirdplace in 2008 to second in 2010. This is because of the aforementioned shiftaway from canned pasta towards fresh pasta, which requires a sauce toaccompany it. Oriental and Mexican sauces have also increased their marketshare, once again due to growing popularity with the public.

According to a TGI survey explored more fully in Chapter 7 — Buying Behaviour— the penetration of canned cooking sauces has risen since 2006. More adultsare using them today than previously, although the results of the survey alsoshow a large increase in pouches of cooking sauces. It is further innovation inthe pouch format which is making it more popular for a number of factors,including convenience; competition from pouches is the main reason Key Notepredicts a static market for canned cooking sauces in 2010, despite them havinga higher consumer penetration.



Table 2.17: The UK Canned Cooking Sauces Sector by Type ofProduct by Value at Current Prices (£m at rsp and %), 2010


Indian curry sauces 9.3 51.7

Pasta sauces 3.42 18.9

Traditional/other 2.8 15.6

Oriental 1.3 7.2

Mexican 1.2 6.7

Total 18.0 †100.0



Source: Key Note

OVERSEAS TRADE

General Overview

The UK Overseas Trade Statistics publication, published as National Statisticsby HM Revenue & Customs, does not break food imports or exports down bytype of packaging, and therefore there are no import or export statisticsavailable for canned products. However, the UK is a net importer of cannedgoods rather than an exporter; a large variety of canned foods (such aspineapples, tomatoes and many types of canned fish) is only widely availableabroad and is canned at the source near the place of origin.

Nevertheless, the UK’s main canning operations do export goods, includingBaxter’s canned soup factory operating in Speyside. Heinz also cans a numberof its goods in the UK; it is a large company that exports its goods all over theworld. Vegetable-producing areas, such as East Anglia, also contain a numberof canning operations that export their goods.



3. Industry Background

RECENT HISTORY

When the British used to store food in larders, as was common prior to theSecond World War, canned food had an enormous penetration in the grocerymarket. It was a staple part of the public’s diets in this period — this is still truenow, although to a lesser extent. Canning really took off during the First WorldWar, when thousands of tons of canned goods were shipped to the front lineto feed troops, providing a massive boost for the industry.

During World War II, canned foods suffered despite their convenience and longshelf life because the metal required for the cans was needed for the wareffort. Also, supplies of canned food were essential to feed troops on thefrontline, which further limited consumption by the general public.

The growth of microwave oven ownership in the 1980s proved a huge boostto the frozen food sector, while chilled food has also become increasinglypopular over the past 20 years. This has led to a decline in sales, although therecession may have helped to this. However, it is likely that volume sales — ifnot retail prices — will continue to fall in the longer term, reflecting thecontinuing growth in the popularity of chilled foods and the trend towardsalternative packaging such as cartons, jars and pouches.

NUMBER OF COMPANIES

There are no figures available for the number of canners in the UK; however,the number of enterprises engaged in the manufacture of cans hasundoubtedly fallen sharply over the past 20 years. This decline is expected tocontinue due to a fall in volume sales. Furthermore, canners are coming underincreasing pressure from rising costs and thus further contraction of theindustry is expected. The UK’s canning operations are dwindling rapidly infavour of cheaper, overseas operations.

REGIONAL VARIATIONS IN THE MARKETPLACE

There are no real significant regional variations in the marketplace becausethe canned foods category is popular across the whole of the UK. In terms ofcanning operations, there are several located in East Anglia, where the bulk ofthe UK’s vegetables are produced.

Canned Foods Industry Background


DISTRIBUTION

The four leading supermarket chains in the UK dominate the retail distributionof canned foods. The supermarkets’ sales broadly reflect their positions in theoverall market. In the week ending 28th November 2010, Tesco, ASDA,Sainsbury’s and Morrisons accounted for over three quarters (76.1%) of all UKgrocery sales, although Tesco accounted for a huge percentage of this figure.

Sales of canned foods are being affected by a number of different factors,including the switching of products that would normally be sold as cans toother packaging such as cartons. In January 2010, Sainsbury’s switched its BasicsRange chopped tomatoes to cartons instead of cans, because they have a moreenvironmentally-friendly image, owing to the fact that they are mostlysustainably-sourced paper-based products and because their square shapeallows more to be packed into the same shipment.

Table 3.3: The UK Market for Canned Foodsby Retailer Share by Value (%), 2010

Tesco 30.7

ASDA 17.0

Sainsbury’s 16.4

Morrisons 12.0

Waitrose 4.1

Aldi 3.0

Lidl 2.4

Iceland 1.7

Somerfields 1.0

Others 11.7

Total 100.0

Source: Key Note



HOW ROBUST IS THE MARKET?

The market faces a significant threat from the chilled and frozen foods sectors,which are coming up with an increasing number of new innovations, such asresealable packaging formats that cut waste. One method, adopted by BirdsEye for its frozen peas, is a bag with a zip-close top. There is also packagingdesigned to be put straight in the microwave, such as soups in cartons orpouches, whereas you have to empty a can into a microwavable container.More convenient packaging such as bottles and jars are also taking up anincreasing share of the market. Some sectors of the canned foods marketappear to be in an irreversible decline — canned desserts and canned cookingsauces are likely to disappear almost entirely within the next decade.

However, the recession is likely to have bolstered the sale of canned foods asa relatively cheap meal option and it is unlikely that cans, such a major part ofthe packaging industry, will disappear from shelves altogether. Canning is awell-trusted method of preserving food which should keep it on the public’sshopping list for many years to come, even if the sector does appear to beaffected by a decline in volume sales.

LEGISLATION

Food Safety Act 1990

The Food Safety Act 1990 is one of the most important pieces of legislationaffecting the catering industry in the UK. It applies to everyone who works inthe production, processing, storage, distribution and sale of food and aims tomake certain that all food produced is safe to eat. Since it came into force on1st January 1991, the Act has ensured that food reaches quality expectationsand is not presented in a misleading manner. It also has legal powers to levypenalties against those who breach it, which are generally handed down tolocal authorities which are responsible for enforcing the Act through TradingStandards and Environmental Health officers.

The Act also deals with the labelling of food, its composition and usually allcases of chemical contamination. The food hygiene sector of the Act coverscases of microbiological contamination and food that, for any reason(including chemical contamination), is unfit for human consumption.Environmental Health officers enforce this.

Trading Standards officers carry out work on behalf of most county councils,while environmental health work is carried out by district councils. The Londonboroughs and the metropolitan authorities carry out both functions. In Walesand Scotland, all work is carried out by the unitary authorities. In NorthernIreland, this work is undertaken by the Environmental Health departments ofdistrict councils.



Among other measures, the Act:

• gives enforcement officers the power to inspect any food intended forhuman consumption and to detain and seize food that is suspected of notcomplying with food safety requirements

• provides for prohibition orders to be issued by the courts when there is a riskof injury to health and the proprietor of the food business has been convictedof an offence under food-hygiene or food-processing regulations

• provides emergency prohibition powers for use by authorised officers wherethere is an imminent risk of injury to health

• gives Ministers the power to make emergency control orders prohibitingcommercial operations in relation to food, food sources or contact materialswhere there is an imminent risk of injury to health.

Food Labelling Regulations 1996

The 1996 Food Labelling Regulations contain the main set of rules governingthe labelling of foods. There is no blanket rule for the application of theserequirements; some of them only apply to specific foods. These rules aresupplemented by additional requirements. Food labelling is also subject tocertain Acts and Regulations that have wider applications. The Food LabellingRegulations 1996 apply in England, Scotland and Wales. A separate but similarlaw applies in Northern Ireland.

Food Standards Act 1999

The Food Standards Act 1999 received Royal Assent on 11th November 1999.Its main purpose was to establish the Food Standards Agency (FSA), to providethe FSA with functions and powers and to transfer certain functions in relationto food safety and standards under other Acts to the FSA. The Act gives effectto the proposals of the White Paper, ‘The Food Standards Agency: a Force forChange’. It sets out the Agency’s main objective of protecting public health inrelation to food, along with the functions that it will assume in pursuit of thisaim, and gives the Agency the powers that are necessary to enable it to act inthe consumer’s interest at any stage in the food production and supply chain.

In mid-2010, some of the responsibilities of the FSA were given to othergovernment organisations. The Department of Health now deals with all ofthe nutritional information to do with food and the Department forEnvironment, Food and Rural Affairs (DEFRA) handles country of origin labels.



Other Food Legislation

There are many pieces of legislation attached to being a manufacturer ofgeneral, and thus canned foods. These include: Food Labelling Regulations;Miscellaneous Additives Regulation; Quantitative Ingredient Declarations(QUID) Regulations; the Weights and Measures Act; and the ConsumerProtection Act. Also included are the Materials and Articles in Contact withFood Regulations, which outline the safety requirements for all materials thatcome into contact with food (i.e. during the packing process), such as tin andaluminium. Similarly, the Contaminants in Food Regulations (2006) legislationis also relevant to the ethnic foods market, providing a maximum limit forcertain contaminants in foodstuffs.

KEY TRADE ASSOCIATIONS

Canned Food UK

Canned Food UK was established in 2001 as an organisation that promotes thebenefits of canned foods. Its membership ranges from companies that producematerial for cans, to firms that distribute and manufacture canned foodproducts.

The Food Processors Association

The Food Processors Association (FPA) is part of the Food and Drink Federation(FDF) and was formed as an umbrella group for four separate sectorassociations:

• Pickles and Sauces Association

• Soup, Gravy and Produce Processors Association

• UK Sweet Spreads Association

• Deserts and Cake Mixes Association.

In 2008, these associations were amalgamated into the FPA.

Metal Packaging Manufacturers Association

The Metal Packaging Manufacturers Association (MPMA) deals with theinterest of companies engaged in the manufacture of light metal containers,closures and components. The Association covers companies ranging fromlarge international corporations down to small independent specialistmanufacturers throughout the UK. In particular, the Association representsmembers’ views to government and other regulatory bodies, both at home andin Europe, and develops industry standards.



4. Competitor Analysis

THE MARKETPLACE

The UK canned food industry is dominated by multinational companies. Theseall have strong bands and immeasurable buying power, making it very hardfor emerging companies to enter the market, let alone compete in it. In theUK, the major players in the canned foods market include Heinz, Princes andDel Monte. Table 4.1 lists the most recent turnover and pre-tax profit figuresfor the major companies currently operating in the UK in alphabetical order.These companies are profiled in more detail in the following ‘Market Leaders’section.

Table 4.1: Selected Leading Manufacturers of UK Canned FoodProducts by Turnover and Pre-Tax Profit (£000),

Latest Financial Year End

Turnover(£000)

Pre-Tax Profit(£000)

YearEnding

Baxters Food Group Ltd 123,981 5,031 30/05/09

Del Monte (UK) Ltd 140,050 2,928 01/01/10

Glenryck Foods Ltd 15,917 -438 30/09/09

Gondola Group Ltd 509,300 -52,400 28/06/09

HJ Heinz Company Ltd 734,400 145,700 29/04/09

John West Foods Ltd 171,537 35,576 31/03/10

Petty, Wood & Co Ltd 43,644 1,563 02/04/10

Premier Foods PLC 2,661,000 46,700 31/12/09

Princes Ltd 1,093,217 40,663 31/03/10

Tulip Ltd 1,138,945 83,559 04/10/09

Source: www.myicc.co.uk

Canned Foods Competitor Analysis


MARKET LEADERS

Baxters Food Group Ltd

Company Structure

Founded in 1868 in Scotland by George Baxter, the company remainsfamily-owned. The company’s Chairman and Chief Executive (CE) AudreyBaxter is the great granddaughter of George Baxter. As well as soups, thecompany also produces preserves, condiments, beetroot, chutneys and variousother types of food. Baxters first began to produce soup in 1929 with its RoyalGame variety. Production remains based in Speyside at the Fochabers factory,where Baxters employs just under 1,000 members of staff. Baxters soup rangesinclude: Deli Inspired Soups, Favourites, Healthy Choice, Healthy ChoiceChunky, Luxury and Vegetarian. The Favourites brand is the second best-sellingbrand in the canned soup sector, after Heinz’s Classic range.

Current and Future Developments

In late 2009 and early 2010, Baxters invested more than £1m in an advertisingcampaign that included a re-branding of the products with new packaging andthe launch of new and improved ranges and recipes. The campaign ran untilthe end of March 2010 and was projected to reach more than 22 million adultconsumers, mainly through advertisements in national newspapers in Scotlandand England. In the last quarter of 2010, Baxters began to expand its portfoliointo the convenient and healthy lines, introducing the Deli Inspired bowls,which claimed to provide three of a person’s five-a-day and came in amicrowavable bowl for added convenience.

Financial Results

The year ending 30th May 2009 saw Baxters report a turnover of £124m and apre-tax profit of £5m. This compares with a £232,000 pre-tax profit and aturnover of £116.4m in the year ending 31st May 2008.

Del Monte (UK) Ltd

Company Structure

Del Monte (UK) Ltd is the leading brand in the canned fruit sector in the UK,holding a quarter of the market in terms of value. It supplies fruit- andvegetable-based products and is also a major supplier in the fruit juice sector.




In July 2010, Del Monte pledged to reduce the sodium content of its cannedvegetables line by up to 20% by 2015. Earlier, in June 2010, Del Monte alsoannounced the launch of small bags of fresh fruit, aimed at parents wantinghealthier options for their children’s school lunchboxes. Stocked exclusively atTesco, the Del Monte Fruitini bags consisted of four varieties: Crinkly AppleSlices, Scrummy Grapes, Juicy Pineapple Slivers and Luscious Melon Bites. Theadvertising campaign for these was relatively low-key, although it did attemptto tap into the nostalgia produced when parents reminded themselves ofeating the brand’s original fruit pots in the 1980s.

Financial Results

In the year ending 1st January 2010, Del Monte (UK) Ltd generated a turnoverof £140.1m and a pre-tax profit of £2.9m. Turnover was up from £112.5m inthe year ending 26th December 2008 and pre-tax profit was greatly improvedon 2008’s pre-tax loss of £1.3m.

Glenryck Foods Ltd

Company Structure

Glenryck Foods Ltd is owned by Oceana Group Ltd — one of the largestconglomerates in South Africa. It has been under Oceana’s control since 2004.Oceana supplies a wide range of canned fish including pilchards, sardines,anchovies, redeye herring, lobster, horse mackerel, squid, tuna, hake and otherdeep-sea fish and employs more than 1,200 permanent staff and 1,000 seasonalemployees that fluctuate during periods of seasonal fishing activities. Glenryckis best known for its pilchards that are fished, canned and shipped from SouthAfrica and Namibia to Europe, but they also import and distribute productsfrom sources such as the US, Chile, Spain, Thailand and Indonesia. Glenryck hasbeen involved in the fish canning sector for more than 75 years.


Glenryck Foods Ltd has improved many products and introduced new productsto its range, such as Alaskan sockeye red and pink salmon packs, whichsupplements the Glenryck brand skinless and boneless medium red salmonsteaks that are already on the market. More new product developments (NPDs)include own-brand sardines in tomato sauce and sunflower oil with a new tindesign.

Financial Results

In the 53-week period ending 30th September 2009, Glenryck Foods Ltdreported a turnover of £15.9m and a pre-tax loss of £438,000. Both of thesefigures are down from the 53-weeks ending 21st September 2008, when thecompany reported a £22.3m turnover and £1.2m of pre-tax profit.



Gondola Group Ltd

Company Structure

The Gondola Group is the market leader in the UK casual dining sector,operating PizzaExpress, Zizzi and ASK, together with the smaller brands ofMilano (PizzaExpress’ brand in the Republic of Ireland), Byron and Kettner’s.The Group employs approximately 14,000 people, serving almost 42 millionmeals a year in over 600 restaurants. For the purposes of this report, the onlycompany under Gondola’s umbrella that is relevant is PizzaExpress, which hasa number of options when it comes to products consumers can use in theirhome, tapping in to the demographic that want restaurant-quality food butcannot afford to go out.


Having been originally sold in glass jars and bottles, Pizza Express re-launchedits passata sauce (which is sold as their exclusive pizza topping recipe, but canalso be used to create Italian dishes from scratch, such as pasta sauces orBolognese) in canned format. The well-known brand name has encouragedpurchases, as has the product’s use by a number of chefs on television.

Financial Results

The company recorded a turnover of £509.3m in the year ending28th June 2009, along with a pre-tax loss of £52.4m. In the year ending29th June 2008, the company’s turnover was reported at £461.7m, with apre-tax loss of £52.3m.

HJ Heinz Company Ltd

Company Structure

HJ Heinz Company Ltd is part of the US-based HJ Heinz Company, a majorsupplier of packaged food. Heinz has been selling products in the UK since 1886and it is a brand leader across several sectors of the UK’s canned foods market,as well as in other sectors. Products offered by Heinz include: baby foods;WeightWatchers biscuits, cakes, cereals and snacks; canned pasta products anddesserts; chilled desserts and dairy products; frozen desserts; Linda McCartneymeals; fruit products; frozen ready meals; salads, salad dressings and vinegar;sandwich fillers, spreads and pickles; sandwiches; sauces and tomato products;soups and soya. Most famously, however, the company produces Heinz bakedbeans, which hold a massive share of the baked beans market and are prettymuch unchallenged by any rival manufacturer in the sector. A survey by KantarMedia conducted in October 2010 revealed that 59% of people questioned inthe UK had Heinz baked beans in their cupboards.




Heinz saw industrial action take place at the tail end of 2010 over a pay disputeat the firm’s flagship plant at Kitt Green, near Wigan. Workers were angry atthe below-inflation pay rise they were offered; strikes are likely to continue inearly 2011 and beyond. Estimates from the union Unite warned that thecompany’s output would be cut by 2 million cans of beans and soups for everyday the workers were on strike.

The company’s WeightWatchers brand took a hit in 2010, with the companyreporting a ‘small shift’ away from the WeightWatchers brand, which includespasta and baked beans. However, it is likely that those who would havepreviously bought WeightWatchers products are now moving on to other coreHeinz branded products which have reduced their sugar, salt and fat content.Heinz is currently combating that decline by refreshing the brand to coincidewith the new ProPoints system being introduced across the entirety ofWeightWatchers International.

As for its soups, Heinz launched a £2m advertising campaign in the run up tothe winter soup season. The campaign ran on both television and radio andhad the tag-line ‘It has to be Heinz’. In September 2010, Heinz tomato soupcelebrated its 100th birthday by releasing limited-edition packaging.

In 2010, the company made some large changes to its baked beans line. Snappots in a plastic tub much like yoghurt pots were launched 3 years ago,containing one portion of beans in a microwaveable pot. July 2010 saw thelaunch of another packaging format: the Heinz beans Fridge Pack, a plastic,resealable jar that is the equivalent of two and a half cans of baked beans,designed for families that get through more than a tin of beans a day orsole-occupancy householders who may only eat part of a can and leave therest. These new formats offer greater convenience than cans; on29th October 2010, The Grocer reported Heinz Beanz marketing manager JohnAlderman as saying that:

"The can, Snap Pots and the Fridge Pack all deliver differentconsumer benefits. The addition of new formats complementsthe can by providing additional benefits such as resealabilityand microwavability. However, Heinz envisages that the canwill remain the dominant pack format."

Despite these NPDs, the company does not appear to be concerned that cannedproducts could lose volume sales as a result of their introduction.

Financial Results

HJ Heinz Company Ltd announced a £734.4m turnover in the year ending29th April 2009 and recorded a pre-tax profit of £145.7m. Turnover was upfrom £675.7m in the year ending 30th April 2008, but pre-tax profit was downfrom £153.7m.



John West Foods Ltd

Company Structure

John West Foods Ltd is one of the UK’s leading brands in the canned fish sectorand has been owned by MW Brands since 2006. John West was a Scottishentrepreneur who, on emigrating to the US, set up his first cannery in Oregonin 1868. The rights to use the John West brand name were purchased by twoLiverpool-based merchants, TL Pelling and CH Stanley, in 1888. The company’sproducts include canned tuna, salmon, sardines and mackerel, as well as pâtésand added-value products such as tuna with sweetcorn and pasta.


In 2010, celebrity chef James Martin teamed up with John West to promote avast range of dishes that could be quickly and easily prepared using John West’stinned fish range. Its website features a number of free recipes penned by him.Its No Drain tuna, available in both chunks and steak format, won ‘Product ofthe Year’ in its category in 2010.

Another innovation of 2010 was pre-grilled sardines in a can; it is most commonto grill sardines on a barbecue, which requires favourable weather, so JohnWest promotes this new product as an excellent winter or poor-weathersubstitute for grilled sardines. 2010 also saw pre-mixed tuna sandwich fillingsappearing on the shelves for the first time. In 2010, John West bucked the trendof a decline in volume sales, taking the top spot back from Princes, which hadtaken the crown in 2009.

Financial Results

Although turnover increased in the year ending 31st March 2010 to £171.5m,compared with £165.5m in 2008/2009, pre-tax profit rose from £1.3m to£35.6m, most likely as a result of the company’s major re-branding andinnovation.

Petty, Wood & Co Ltd

Company Structure

Petty, Wood & Co Ltd provides sales, marketing and distribution services forpremium food and drink brands in the UK and Republic of Ireland food retail,wholesale and foodservice sectors. First established in 1816, its main interestin canned goods lies in the Epicure range that covers fish, vegetables, fruit andmeat.


In May 2010, Andy Hesling, brand manager at Bundaberg’s UK distributor PettyWood, said the following in The Grocer:



"Quality is good and it encourages the consumer to repeatpurchase. Today’s consumers are increasingly attracted totraditional, well made, healthier products... it appears thatquality is what the consumer considers to be value for money."

This was in response to a question asking whether consumers really wanted tobuy high-priced, premium-range products such as the Prince of Wales’ DuchyRange in times of economic hardship.

Financial Results

In the year ending 2nd April 2010, Petty, Wood & Co Ltd reported a turnoverof £43.6m and a pre-tax profit of £1.6m, despite distributing and sellingproducts at the top of many sectors’ price ranges. In the previous year, thecompany generated a turnover of £46.9m and a pre-tax profit of £1.3m.

Premier Foods PLC

Company Structure

Premier Foods PLC claims to be the UK’s largest food producer, releasing thefigure that more than 99% of all UK households have a Premier Foods brandin their home. The company supplies both branded and own-label goods in theUK. As well as canned goods, it also supplies products such as bread, cakes,preserves, convenience foods, desserts, cooking sauces, stocks, gravies, flour,chilled ready meals, meat pies and chilled desserts. In its canned foods sector,the company’s main brands include Branston (which has a strong presence inthe baked beans sector, although not yet strong enough to be a real rival toHeinz), Fray Bentos (under which it supplies meat pies, puddings, corned beefand meatballs) and Hartley’s (which supplies canned fruit and fruit fillings). In2010, Premier Foods added a ‘Just Steak’ canned pie to its Fray Bentos brandaround the same time Princes re-launched its canned pie range.


In March 2009, the company raised £404m from shareholders andprivate-equity investors to pay of its debts, which were at such a level as to beconcerning lenders and investors. At the end of the third quarter of 2010,Premier Foods believed that it was on track to deliver £100m of recurring cashflow for the full year in order to reduce its net debt.

Financial Results

Premier Foods PLC had a pre-tax profit of £46.7m in the 52-week period ending31st December 2009 and a turnover of £2.66bn. In the same period in 2008, itsturnover amounted to £2.6bn, but it made a pre-tax loss of £404.8m.



Princes Ltd

Company Structure

Princes Ltd is a subsidiary of Japan’s largest general trading company, theMitsubishi Corporation. The company has over 200 bases of operation inapproximately 80 countries worldwide. Princes Ltd claims to be the leadingimporter of canned foods into the UK and is also one of the UK’s leadinggrocery brands in its own right. Princes also supplies several other leading foodand drink brands, including Napolina, Shippam’s and Vier Diamanten in thecanned foods sector. The company supplies both canned fish and canned fruitand claims that 72% of UK households buy its brand regularly, with its brandof canned tuna being the post popular.


In April 2010, the company began to manufacture canned ready meals for thefirst time. Its range includes: chicken in white wine sauce; mild chicken curry;hot chicken curry; chilli con carne; hot chilli con carne; vegetable curry; andIrish stew variants. It supported the launch via in-store promotions and publicrelations (PR) campaigns and it is hoping the move will consolidate Princes’position as the leading canned meat brand (it accounts for 26% of the market).2010 saw sales of Princes-brand canned fruit rise after an 8.8% decline in 2009.

In July 2010, the company moved into the Eastern European market byentering into a partnership with ADM to attempt to increase the effectivenessand profits from manufacturing and distributing edible oils throughout Polandand Central Europe. In 2010, Princes re-launched its canned pies range,marketing them as improved recipes, alongside the new addition of cannedready meals. Around the same time, Fray Bentos, under Premier Foods, addeda new ‘Just Steak’ canned pie to emphasise the quality of its pies as competitionin the sector grew.

Financial Results

In the 52-week period ending 31st March 2010, the company generated aturnover of £1.09bn and a pre-tax profit of £40.7m, compared with 2008/2009’sturnover of £1.08bn and a pre-tax profit of £39.1m.

Tulip Ltd

Company Structure

Tulip Ltd was established in the UK in 2002 and is a subsidiary of Danish Crown,the largest pork producer in Europe and the biggest exporter of porkworldwide. The company employs around 9,000 members of staff in the UKand claims to be the UK’s largest supplier of pork in the UK, providing a widerange of products to both the retail and foodservice markets. The company’sbrands in the canned foods market include Spam (produced under licence fromHormel Foods of the US), Stag (a brand of chilli con carne) and Plumrose (arange of canned meats).




The Chairman of Tulip Ltd, Carsten Jakobsen, who is also Vice Chief ExecutiveOfficer (CEO)/President of the Danish Crown Group, left Tulip Ltd and DanishCrown in November 2010. Tulip claims that Mr Jakobsen has been the drivingforce behind Tulip’s current prominent position among the UK’s meatsuppliers, where Tulip currently operates seventeen sites.

According to Niels Mikkelsen, Chairman of Danish Crown, as reported by Meat,Fish & Dairy Processing Industry Latest News on TheMeatSite.com on4th November 2010:

“Mr Jakobsen has been responsible for the growth we havewitnessed in the UK in recent years. Also, his achievements asChairman of our US operation, Plumrose Inc, have beeninvaluable. It is a very prominent figure in the global meatbusiness that has now chosen to leave the Danish Crown Group,but Carsten has made sure that the next generation is in placeto carry on his legacy."

Financial Results

In the 52-week period ending 4th October 2009, Tulip declared a turnover of£1.14bn and made a pre-tax profit of £83.6m. In the year ending28th September 2008, the company had a turnover of £953.9m and a pre-taxprofit of £21m.

Other Companies

Although the large companies dominate the UK canned food market, somesmaller suppliers are also operating as niche companies, which do not usuallyhave a diverse range and tend to concentrate on one main brand or foodstuff.

Simpson Ready Foods Ltd

Simpson Ready Foods Ltd began in 1911 as a Manchester-based family-ownedbusiness. Its canned foods sector supplies puddings (such as spotted dick andchocolate sponge), the Goblin value range (which includes Irish stew, beefcasserole and minced beef and onions) and the Goblin ready meals range. The52-week period ending 31st December 2009 saw the company report aturnover of £10.3m and a pre-tax profit of £146,000. In the previous year, thecompany’s turnover was £13.2m and it made a pre-tax loss of £209,000.

OUTSIDE SUPPLIERS

The canned foods industry is dependent upon a wide range of suppliers. Onone hand there are the farmers and fishermen who supply the basic raw foodmaterials to be packaged, and on the other hand there are companies thatsupply the metal in which the products are packaged.



Other key suppliers include advertising and marketing agencies, distributorsand logistical firms. Much of the food that eventually ends up in UKsupermarkets originates from overseas, and therefore supply can be disruptedby the weather or global geopolitical and economic events. The canned foodsmarket has been heavily influenced by global events in recent years. A soaringglobal demand for food, as well as rising prices for energy and fuel, havecaused steep price increases in the canned fish sector in 2008 and 2009, forexample. Moreover, although the price of some commodities has tumbledduring the global economic downturn that began in 2008, the price of tin hasremained high.

MARKETING ACTIVITY

Main Media Advertising

The amount spent on main media advertising varies greatly between thesectors of the market and the companies behind the products. For example,baked beans tend to have a large amount spent on promotional activity,especially by major players such as Heinz. Soup brands owned by variouscompanies are also given a fairly high amount of financial backing. However,the canned fruit sector achieves very little promotional support.

In the year ending September 2010, main media advertising expenditure onthe leading canned foods brands amounted to £3.8m, considerably less (downby 28.4%) than 2009’s £5.3m.

Cost-cutting has become the main trend in terms of advertising expenditure,with firms hoping that brand loyalty alone will attract sufficient consumers.Heinz’s spend on generic advertising increased exponentially in 2010, coveringits entire range instead of specific products, assumingly as a further way to cutcosts. This label is a large umbrella, encompassing some products that are nottinned, such as sauces and condiments, which are therefore not relevant to thisreport. For this reason, Key Note has not included it in the figures shown inTable 4.2.

The canned vegetables and pasta category, which includes baked beans,sweetcorn and tomatoes, recorded the highest level of expenditure. Itattracted a £2.2m spend in the year ending September 2009, with Heinz bakedbeans accounting for half of that (£1.1m). In 2010, spending in this sectordropped to £1.3m — the main reason for this was Heinz withdrawing itssupport for baked beans specifically and instead spending money on its genericcampaign.

In 2009, expenditure on the canned fish sector equalled £1.6m. Just over £1mof this was spent on John West’s new innovation — No Drain tuna. In 2010,expenditure on canned fish fell to £766,000, with John West’s No-Drain tunaagain accounting for a sizeable chunk of this spend (£492,000). Princes did notinvest in main media advertising in either 2009 or 2010.



In the canned soup category, £811,000 was spent on advertising in 2008/2009,with the overwhelming majority being spent on Heinz’s Farmers’ Market Soup(£745,000). In 2010, once again Heinz shifted to generic advertising instead offocusing on specific products and Baxters took the company’s place as thebrand spending the most money on their soups (£967,000, after spendingnothing in 2009). Heinz’s Farmers’ Market Soup attracted one of the highestlevels of expenditure of all canned food products in 2009; it was beaten onlyby the amount spent on advertising its own baked beans and by John West’smarketing budget for its No Drain tuna. However, in 2010 it pulled advertisingsupport for its soup range entirely.

The canned meat and poultry sector attracted £645,000 worth of advertisingexpenditure in 2009; in 2010 this was down slightly to £578,000. Lastly, thecanned fruit sector attracted the lowest amount of expenditure in both 2009and 2010. £19,000 was spent on this sector in 2009, but there was a much largeramount of investment in this sector in 2010, at £56,000, possibly in an attemptto aid the sector’s flagging sales figures. Del Monte, in particular, was keen topromote its products.

Table 4.2: Main Media Advertising Expenditure on LeadingCanned Food Brands by Sector (£000),

Years Ending September 2009 and 2010

2009 2010

Canned Vegetables and Pasta

Heinz

Baked beans 1,130 -

Total Heinz 1,130 -

Green Giant sweetcorn 947 1,120

Napolina canned chopped tomatoes - 106

Sub-threshold brands 137 36

Total canned vegetables and pasta 2,214 1,262

Canned Fish

John West

No Drain tuna 1,012 492

Generic 266 -

Tinned tuna 207 -

Total John West 1,485 492

Table continues...



Table 4.2: Main Media Advertising Expenditure on LeadingCanned Food Brands by Sector (£000),

Years Ending September 2009 and 2010

...table continued

2009 2010


Total canned fish 1,565 766

Canned Soup

Heinz

Farmers’ Market 745 -

Total Heinz 745 -

Baxters

Canned soup range - 454

Healthy Choice soup range - 241

Luxury soup range - 272

Total Baxters - 967


Total canned soup 811 †1,102

Canned Meat and Poultry

Hormel Foods -— Spam 428 230

Spam — Fritters 207 284


Total canned meat and poultry 645 578

Canned Fruit


Total canned fruit 19 56

Total 5,254 3,764

† — does not sum due to rounding at source

Source: Nielsen Media Research



Exhibitions and Trade Shows

BBC Good Food Show

This is held annually in November. In 2010, the show took place between 24thand 28th November in the National Exhibition Centre (NEC) in Birmingham.

Food and Drink Expo

The next event will be held between 25th and 28th March 2011, also at theNEC in Birmingham

International Food and Drink Exhibition

This biannual event is one of the largest food and drink exhibitions in the UK;it is due to be held next between 13th and 16th March 2011.



5. Brand Strategy

INTRODUCTION

In certain sectors of the market, volume sales have continued to fall despitethe current climate of austerity spawned by the recession and the methods theGovernment is taking to reduce the budget deficit. These methods are likelyto lead to job losses in the public sector; although the Government hopes thatan upswing in the private sector should compensate for this loss, it is likely thatthe general public has quite a period of belt-tightening ahead of them.

The canned foods market has shown growth in value recently, mostly buoyedby the baked beans category, which is one of the few canned foods not to haverecorded a drop in volume or value sales. A rise in the cost of raw materials hasseen price increases across the canned foods sector, which has offset decliningsales in terms of volume.

New product development (NPD) has both helped and hindered the market inrecent months — the innovations that involve reducing fat, sugar and saltcontent from canned foods, as well as those making the products even easierto open and cook, have been beneficial, although NPD has also led toalternative packaging formats which threaten the can’s dominance of themarket. These alternative formats are resealable, which consumers appear toprefer for the sake of convenience. Alternative packaging is also generallylighter than canned foods and a cuboid shape allows for the maximisation ofshelf space, meaning that more of the product can be fitted into a shipmentcompared with the can’s cylindrical format.

RESEARCH FINDINGS

In January 2011, Key Note commissioned NEMS Market Research to conduct anexclusive consumer survey to ascertain consumers’ reasons for purchasingcanned foods. The survey profiled 1,000 adults across the UK, aged 16 and over,and the results are detailed in Tables 5.1 to 5.5.

Convenience

More than half of the survey respondents (55.8%) stated that they purchasedcanned foods in the 12 months preceding the survey because of theirconvenience, and percentage penetration was exactly the same for men andwomen, suggesting that convenience was equally important to both. This wasthe most popular reason why consumers purchased canned foods.

Canned Foods Brand Strategy


By age, 20 to 24 year-olds recorded the highest level of penetration; this agegroup typically includes many university students, who want quick and easyfood to eat to maximise time for other activities such as studying or socialising.Convenience also ranks highly among 16 to 19 year-olds, who also fall into thestudent age group, while it was least important to those aged over 65, perhapsowing to the fact that this age group tends to be the least time-pressed.

Convenience was most important to those in the C1 social grade and leastimportant to Es, although once again this may be because this category islargely made up of the retired. Those who were not working were the mostlikely to purchase canned foods due to their convenience. Convenience was afairly important reason to purchase canned foods across the entire country, butthose in the South West were the most likely to do so for convenience, whilethose in the East Midlands were the least likely.

Those with three people in their household were the most likely to purchasecanned foods for the reason of convenience. Those with children in the houseaged between 10 and 15 were the most likely to see canned foods as aconvenient option.

Table 5.1: Purchasing of Canned Foods in the Past 12 MonthsOwing to Convenience by Sex, Age, Social Grade, WorkingStatus, Region, Size of Household and Presence of Children

in the Household (% of respondents), 2011

All adults 55.8

Sex

Male 55.8

Female 55.8

Age

16-19 66.8

20-24 67.6

25-34 55.1

35-44 53.0

45-54 63.1

55-64 55.9

65+ 44.2

Social Grade

A 46.3

B 57.8

C1 60.5

Table continues...





...table continued

Social Grade (cont.)

C2 55.7

D 56.0

E 41.2

Working Status

Full time (30+ hours a week) 58.5

Part time 51.3

Not working (excluding retired/invalid)† 61.6

Not working (retired/invalid) 49.8

Region

North 63.0

Yorkshire and Humberside 55.2

East Midlands 44.0

West Midlands 64.9

East Anglia 46.7

South East 53.3

Greater London 51.3

South West 69.4

North West 50.6

Wales 50.6

Scotland 69.0

Size of Household

One 51.7

Two 57.5

Three 69.3

Four 53.9

Five or more 41.8

Table continues...





...table continued

Presence of Children

Aged 0-4 58.6

Aged 5-9 40.0

Aged 10-15 63.6

No children 55.3

† — e.g. full-time student, not looking for work, unemployed, etc.

Source: Key Note

Value

Only 5.7% of adults purchased canned foods because of their value; down from7.4% when Key Note last conducted a similar survey in May 2009 (not shown).This is perhaps indicative of the recession ending. There was very littledifference between men and women using canned foods due to their value(5.4% and 6%, respectively). Those aged 16 to 19 did not purchase cannedfoods due to their value — perhaps this is because many in this demographicdo not do the grocery shopping for the household — while those aged 25 to34 showed the highest level of penetration.

No one in social grade A purchased canned foods for their value, whereas thosein the C2 social grade were the most likely to purchase canned foods for thisreason. Part-time workers showed the highest level of penetration forpurchasing canned goods owing to their value, while penetration was lowestamong full-time workers.

Those in the North were the most likely to purchase canned foods for reasonsof value, whereas those in the West Midlands were the least likely. Cannedfoods were most likely to be purchased for reasons of value by those withchildren aged between 0 and 4 in the house, with penetration tailing off asthe age of the children increases and recorded as lowest among those with nochildren.



Table 5.2: Purchasing of Canned Foods in the Past 12 MonthsOwing to Value by Sex, Age, Social Grade, Working Status,

Region, Size of Household and Presence of Childrenin the Household (% of respondents), 2011

All adults 5.7

Sex

Male 5.4

Female 6.0

Age

16-19 0.0

20-24 5.4

25-34 7.4

35-44 6.0

45-54 5.9

55-64 4.9

65+ 6.5

Social Grade

A 0.0

B 5.7

C1 4.9

C2 8.6

D 5.8

E 1.0

Working Status


Part time 9.3



Region

North 12.6


East Midlands 8.0

West Midlands 1.4

East Anglia 1.9

South East 6.0

Table continues...



Table 5.2: Purchasing of Canned Foods in the Past 12 MonthsOwing to Value by Sex, Age, Social Grade, Working Status,


...table continued

Region (cont.)

Greater London 1.8

South West 4.5

North West 7.6

Wales 11.3

Scotland 2.7

Size of Household

One 5.0

Two 5.3

Three 6.8

Four 9.0

Five or more 1.9


Aged 0-4 8.2

Aged 5-9 7.4

Aged 10-15 6.5

No children 5.0


Source: Key Note

Flavour

A slightly higher proportion of respondents stated that they had purchasedcanned foods in the last 12 months because of their flavour than their value,at 7.9% compared with 5.7%. However, this is down on the 12% whopurchased canned foods for their flavour in 2009 (not shown). Slightly moremen than women purchased canned foods for their flavour, but there was verylittle difference (8.4% and 7.5%, respectively). Again, due to the fact that theyrarely do a grocery shop, none of those aged between 16 and 19 boughtcanned foods for their flavour; furthermore, none of the respondents aged 20to 24 bought canned foods for their flavour either.



No-one in social grade A bought canned foods for their flavour, owing perhapsto their affluence opening up more expensive, flavourful options to them,including fresh ingredients, while those in social grade E were the most likely.Those who were not working due to retirement or invalidity were also the mostlikely to buy canned foods for their flavour, as were those living in Wales. Thoseliving in the South East were the least likely to purchase canned foods for theirflavour.

Penetration was highest among respondents with five or more people in thehousehold, and among those with children aged 5 to 9 in the household. Thosewith children aged 10 to 15 were the least likely to purchase canned foods fortheir taste.

Table 5.3: Purchasing of Canned Foods in the Past 12 MonthsOwing to Flavour by Sex, Age, Social Grade, Working Status,


All adults 7.9

Sex

Male 8.4

Female 7.5

Age

16-19 0.0

20-24 0.0

25-34 11.4

35-44 7.9

45-54 8.0

55-64 8.3

65+ 10.8

Social Grade

A 0.0

B 7.7

C1 7.8

C2 7.4

D 8.3

E 11.0

Table continues...





...table continued

Working Status


Part time 9.0



Region

North 12.6


East Midlands 11.6

West Midlands 5.5

East Anglia 8.1

South East 2.0

Greater London 8.0

South West 2.1

North West 12.0

Wales 14.1

Scotland 6.4

Size of Household

One 8.6

Two 8.3

Three 3.1

Four 10.2

Five or more 11.9

Table continues...





...table continued


Aged 0-4 12.3

Aged 5-9 20.2

Aged 10-15 6.0

No children 6.5


Source: Key Note

Health

Just 5.6% of the adults surveyed bought canned foods for their healthproperties, down from 6.7% in 2009. Women were more likely to purchasecanned foods for their health properties than men, perhaps due to the factthat women tend to be more conscious about their health and weight thanmen. Again, those aged 16 to 19 are very unlikely to participate in a groceryshop, hence recording zero penetration, while those aged between 35 and 44were the most likely to purchase canned foods because of their healthproperties.

Those in the A social grade were the most likely to buy canned foods becauseof their health properties, despite having a larger disposable income to affordother options, including fresh produce, while C1s were the least likely.Penetration was highest among those who worked full time, while those whowere not working (excluding retired/invalid) were the least likely to buycanned foods for their health properties.

No-one in the North or the West Midlands bought canned foods for theirhealth properties, whereas the highest penetration was recorded among thoseliving in Greater London. Canned foods were most likely to be bought for theirhealth properties by those with five or more people in the household, perhapsas an economical way to feed larger families their five-a-day, whereas those insingle-occupant households were the least likely. Consumers with youngchildren, aged 0 to 4, were the most likely to buy canned foods for their healthproperties, while those with older children (aged 10 to 15) were the least likely.



Table 5.4: Purchasing of Canned Foods in the Past 12 MonthsOwing to Health Properties by Sex, Age, Social Grade, Working

Status, Region, Size of Household and Presence of Childrenin the Household (% of respondents), 2011

All adults 5.6

Sex

Male 3.9

Female 7.2

Age

16-19 0.0

20-24 4.8

25-34 6.2

35-44 9.2

45-54 5.9

55-64 4.2

65+ 4.8

Social Grade

A 28.9

B 6.5

C1 2.4

C2 5.9

D 4.3

E 10.2

Working Status


Part time 5.2



Region

North 0.0


East Midlands 4.8

West Midlands 0.0

East Anglia 9.0

South East 3.4

Table continues...



Table 5.4: Purchasing of Canned Foods in the Past 12 MonthsOwing to Health Properties by Sex, Age, Social Grade, Working

Status, Region, Size of Household and Presence of Childrenin the Household (% of respondents), 2011

...table continued

Region (cont.)

Greater London 11.2

South West 2.3

North West 7.8

Wales 9.0

Scotland 5.9

Size of Household

One 2.8

Two 4.1

Three 7.4

Four 5.8

Five or more 11.4


Aged 0-4 10.3

Aged 5-9 9.1

Aged 10-15 4.6

No children 5.2


Source: Key Note

Shelf Life

16% of adults bought canned foods because of their shelf life in 2011 — thesecond-highest level of penetration recorded in the survey. This could beattributed to the fact that cans are seen as an easy way to store cupboardstaples, and a long shelf life also serves to protect consumers from food-priceinflation. Men were more likely than women to buy canned foods for theirshelf life. Consumers aged between 16 and 19 were the most likely to buycanned foods for their shelf life, while a fairly high number of consumers aged20 to 24, also part of the student demographic, also purchased canned foodsfor their shelf life. Consumers aged between 45 and 54 were the least likely tobuy canned foods for their storability.



Penetration levels were fairly similar across all social grades, although those insocial grade E were the most likely to purchase canned foods owing to theirshelf life and Ds were the least likely. There is very little difference inpenetration between those working part time and those who did not work(excluding the retired/invalid).

More than three in ten (30.4%) consumers from East Anglia purchased cannedfoods for their shelf life, whereas just 6.1% from the North did so. The size ofconsumers’ households made a noticeable amount of difference when it cameto purchasing canned foods because of their shelf life; those with five or morepeople in their household were just under three times as likely to buy cannedfoods for their shelf life than those living with three people in the household.Respondents with no children were the most likely to purchase canned foodsfor their shelf life, whereas those with young children aged 0 to 4 were theleast likely.

Table 5.5: Purchasing of Canned Foods in the Past 12 MonthsOwing to Shelf Life by Sex, Age, Social Grade, Working Status,


All adults 16.0

Sex

Male 18.9

Female 13.3

Age

16-19 24.9

20-24 15.6

25-34 18.9

35-44 16.9

45-54 9.3

55-64 12.7

65+ 17.2

Social Grade

A 18.0

B 16.8

C1 16.0

C2 14.0

D 12.9

E 23.0

Table continues...





...table continued

Working Status


Part time 23.7



Region

North 6.1


East Midlands 27.3

West Midlands 15.6

East Anglia 30.4

South East 27.0

Greater London 15.3

South West 11.1

North West 8.0

Wales 9.3

Scotland 11.5

Size of Household

One 17.2

Two 16.8

Three 9.4

Four 12.3

Five or more 27.1

Table continues...





...table continued


Aged 0-4 10.6

Aged 5-9 15.1

Aged 10-15 14.9

No children 17.8


Source: Key Note

COMPANIES’ BRANDS

Vegetables

The Napolina brand of canned vegetables is the leading player in the cannedvegetables sector. Owned by the Princes Group, Napolina has the largest rangeof branded products in the sector. However, own-label products have a muchhigher market share and take up the majority of the market.

Heinz, of course, is the brand leader in several canned food categories and,thanks to its baked beans, it takes the top spot in the vegetables sector. Thecompany accounts for more than 60% of all baked bean sales. New innovationsuch as snap pots and the fridge pack are helping Heinz to increase its lead onBranston, whose beans count for slightly less than 11% of sales.

Fish

The largest brand in the canned fish sector by far is John West, followed closelyby Princes. These, along with other brands, account for around two-thirds ofthe canned fish sector. Many of the leading companies continue to promotethe Omega-3 content of their products; there have been several new productdevelopments (NPDs) with Omega-3-enriched claims — John West launchednew canned tuna steaks which claim to be enriched with three times as muchOmega-3 than a normal can. Princes responded by releasing a product thatclaimed to have as much Omega-3 as John West’s enriched brand, but throughnatural means.



Soup

Heinz is the leading soup brand — just as it is the leading brand in the cannedvegetables sector with its beans — with its Classics range being its bestseller.Heinz also manufactures a number of soups with other brands, including BigSoup, WeightWatchers, Farmers’ Market and Taste of Home. In 2010, itreleased a range of soups that contained 25% less salt. One of its main rivalsis Baxters, which produces brands such as Baxters Favourites, BaxtersVegetarian, Baxters Healthy, Baxters Chunky and Baxters Luxury. Another bigplayer in this category is Campbell soups, which is owned by Premier Foods andis best known for its condensed range.

Meat

Princes is the brand leader in the canned meat sector. Other notable brands inthis sector include Fray Bentos, which makes tinned pies and ready meals, andYe Olde Oak, which cans ready meals such as Bolognese, chicken, chickencurries and hotdogs.

Fruit

Through it is own-label brands, which account for the majority of the market,Del Monte is the most prominent of the branded canned fruits, followed byPrinces and John West.

Pasta

There are very few labels to consider in this sector other than Heinz — thebrand counts for around 75% of canned pasta sales. Despite attempting severalNPDs over the years, Heinz has been unable to slow the long-term decline ofthe canned pasta sector.

Desserts

Heinz sold its chilled and frozen desserts arm in 2010 due to its financialstruggles. This left its canned desserts range as its sole focus in terms of dessertsin its canned products. Premier Foods is also a main player in this category, butthe canned desserts sector overall appears to be in terminal decline thanks tothe vast array of NPDs that include chilled and frozen desserts for homeconsumption; frozen desserts, in particular, have just as long a shelf life as theircanned counterparts and there is more variety to choose from.

Cooking Sauces

Canned cooking sauces are another area of the canned foods market that is ina state of decline. The largest brands in the sector are Patak’s and Homepride,but even these brands are using the canned format less and switching to otherforms of packaging such as glass jars and bottles, or cartons and pouches.



6. Strengths, Weaknesses, Opportunitiesand Threats

STRENGTHS

• Canning has been a well-known and proven method of preserving food forlonger than living memory. Despite new product innovation in terms of otherpackaging, canned foods are a long-accepted component of the diets of UKconsumers.

• There is an ever-growing trend towards convenience foods in the UK; cansoffer this convenience and benefit from strong customer loyalty towards theformat.

• Canned foods have a very long shelf life and can be stored at ambienttemperature for months or even years; sales have therefore benefited asconsumers concentrated on stocking up on cheap, store-cupboard staplesduring the recession.

• As canned foods are very likely to have been canned at a plant close to theparticular food’s production area, there is no loss of vitamins and minerals,which can occur with fresh produce both during transportation and when ondisplay.

• In a similar vein, fresh food can often go to waste as it has a very shortwindow for use when compared with canned foods. Canned foods do notgenerally generate much waste and are therefore a more viable andeconomical choice in a turbulent economic climate. Canned foods often offerthe convenience of single portions, which fresh and even frozen foods donot always do.

• There is a very strong brand presence in the market; many well-known,strong brands are kept in the public’s eye through heavy promotion from theowners.

• Canned food is cheaper than fresh produce, which is attractive tomoney-conscious consumers.

WEAKNESSES

• Alternative forms of packaging are increasingly being developed which holdadvantages over canned foods in terms of cost, space and the environment.

• Food that comes from a can is sometimes deemed less healthy than its freshalternative, when this is not necessarily always the case.

Canned Foods Strengths, Weaknesses, Opportunities and Threats


• An increasingly health-conscious society is worried about issues such as thesalt, sugar and fat content of products — sometimes canned foods containhigher levels of sugar and salt, in particular, than fresh or frozen foods,because the ingredients have been added as part of the preservation process.

• Consumer research indicates that many members of the public believecanned foods do not offer the same taste as their fresh, chilled and frozencounterparts.

• The dominance of several major brands in the canned foods market makesproduct innovation or penetration by new companies very difficult. Thisundermines promotional activity and innovation.

OPPORTUNITIES

• The price of canned foods is generally much lower than fresh and frozenproducts, a fact which can easily be exploited as money becomes tighter forthe general public.

• The retention of nutritional quality in canned foods is a significant advantageof the canned format; however, producers, manufacturers and promoters areyet to fully exploit this fact.

• Canned foods are very convenient — a number of manufacturers began toexploit this trend in 2010. For example, Princes has been promoting recipesby celebrity chef James Martin, which are made much easier and less complexby using canned products instead of fresh. There is room for furthermarketing on this point.

• Even premium and value-added canned products, which can be developedto meet consumer demand for products such as ready meals, are likely to becheaper than other formats.

• Brazil, Russia, India and the People’s Republic of China (PRC) are all rapidlydeveloping and emerging economies with a growing desire for westerncanned foods, which should boost global sales, but is likely to lead to pricehikes as demand rises.

• The use of Bisphenol A (BPA) in the lining of cans (see Threats, below) hasattracted a lot of negative press in the past year or so and, as such, could puta number of people off purchasing canned foods. Companies that caninnovate a way to can foods without using this chemical in the lining arelikely to see a boost in sales if they promote the change properly, because itwill boost consumer confidence in their brand and their packaging.

THREATS

• Some canned foods across several sectors are skewed in terms of purchasingtowards people in an older age bracket, which will affect sales in the longerterm.



• Other packaging formats such as glass bottles and jars, pouches and cartonsare growing in popularity and taking up an increasing share of many areasof the market where canned foods are dominant.

• Innovation which allows fresh and frozen products to stay at the peak ofquality for longer is going to threaten the can’s image as a long-life product.

• Many sectors are reliant on overseas producers and suppliers, which are oftenimpacted heavily by the geopolitical climate and the global economy, asconveyed in Argentina’s move away from farming beef cattle.

• There has been a lot of controversy of late regarding the use of Bisphenol A(BPA) in the canning of foods. It is currently a chemical used to coat the insideof cans to stop the cans corroding and to slow down spoilage in 80% of allcans containing food. There has been a lot of concern over the health risksof such a chemical, particularly in containers which hold baby food and babyformula. The chemical is also used in the manufacturing process of somebottles for babies. Various scientific authorities have discovered no healthrisk as a result of the use of BPA, but consumers are still concerned followingnegative press claiming that BPA could cause cancer and birth defects inchildren. This will negatively affect the canned foods industry, because manyconsumers will deem the packaging unsafe, despite authorities such as theUS’s Food and Drug Administration (FDA) and European Metal Packaging(EMPAC) claiming that levels of BPA in cans are well below the maximumlevels allowed.



7. Buying Behaviour

CONSUMER PENETRATION

In quarter 4 2010 (July 2009 to June 2010), Kantar Media carried out a TargetGroup Index (TGI) survey which looked into the consumption of baked beans,soups (other than homemade), cooking sauces and baby food.

Baked Beans

Baked beans were eaten by a very large proportion of the population — nearlynine out of ten (87.3%) had eaten beans in the 12 months preceding the survey.There was not much difference in penetration among the age groups, but theyoungest range (those aged 25 to 34) were the least likely to have used beansin the past 12 months (83.1%), whereas those aged 55 to 64 had the highestlevel of penetration (91.4%).

Table 7.1: Penetration of Baked Beans in the Last 12 Monthsby Sex and Age (% of adults), 2010

All adults 87.3

Sex

Men 81.4

Women 90.0

Age

25-34 83.1

35-44 88.5

45-54 91.1

55-64 91.4

65+ 87.7

Source: Target Group Index (TGI) © Kantar Media, Quarter 4(July 2009-June 2010) 2010

Canned Foods Buying Behaviour


Soup

Soup in cans and pouches was consumed by 71.5% of adults, up slightly fromthe findings of a similar survey conducted in March 2008 (not shown), whenthe figure stood at 70.8%. There is very little difference in the penetration ofcanned soups by sex, with 71.4% of men claiming usage and 71.7% of womenusing them. Consumption of soup was high across all age ranges, although itwas lowest among those aged 15 to 19 and highest among 44 to 64 year-olds.

In terms of social grade, once again the results were fairly uniform, withpenetration dipping very slightly below seven out of ten adults only amongthe Bs. The highest penetration by social grade was recorded among those inC2 social grade (72.7%). The consumption of soup was the highest in Scotland,at 77.2%, perhaps due to the population experiencing one of the longest,coldest winters in the UK. The lowest penetration was recorded among thoseliving in Greater London, where just 58% of adults had used canned andpouched soups in the 12 months prior to the survey.

Table 7.2: Penetration of Soup† in the Last 12 Months by Sex,Age, Social Grade and Region (% of adults), 2010

All adults 71.5

Sex

Men 71.4

Women 71.7

Age

15-19 64.9

20-24 66.1

25-34 68.7

35-44 72.2

44-54 74.2

55-64 74.2

65+ 74.0

Social Grade

A 72.5

B 69.7

C1 71.7

C2 72.7

D 72.3

E 71.2

Table continues...



Table 7.2: Penetration of Soup† in the Last 12 Months by Sex,Age, Social Grade and Region (% of adults), 2010

...table continued

Region

Scotland 77.2

North West 76.3

North 75.6


East Midlands 72.2

East Anglia 70.0

South East 69.7

Greater London 58.0

South West 73.6

Wales 73.2

West Midlands 74.3

† — soup in cans and pouches


Cooking Sauces

5.4% of the respondents used canned cooking sauces in the 12 monthspreceding the survey. In a similar survey conducted in the third quarter of 2006(not shown), just 1.6% of adults had used this product. Once again, it is likelyto be the nature of canned foods that has driven this increase; their long shelflife, combined with consumer desire to cook more meals at home as householdbudgets are tighter, means that cooking sauces in tins have become a morepopular option. Despite the increase in penetration of canned cooking sauces,the real winner in the market has been pouched cooking sauces, which haveincreased their penetration from 1.3% in 2006 to 6.8% in 2010. This is a formatthat is posing the greatest threat to the canned cooking sauces market.

Women are more likely to use canned cooking sauces than men, at 7.4%compared with 3.2%. The lowest penetration in terms of age was recordedamong those aged 15 to 19, while the highest was recorded among those aged35 to 44.

Those in the A social grade had the lowest penetration for canned cookingsauces, while the highest penetration was recorded among the C2s and Es.Those in the South West were the most likely to use canned cooking sauces,with those in the North and Scotland the least likely.



Table 7.3: Penetration of Canned Cooking Sauces† in the Last12 Months by Sex, Age,

Social Grade and Region (% of adults), 2010

All adults 5.4

Sex

Men 3.2

Women 7.4

Age

15-19 0.9

20-24 5.6

25-34 5.7

35-44 6.9

44-54 6.4

55-64 6.0

65+ 4.2

Social Grade

A 3.8

B 5.0

C1 5.4

C2 6.1

D 4.9

E 6.2

Region

Scotland 4.4

North West 5.9

North 3.7


East Midlands 5.5

East Anglia 5.2

South East 5.9

Table continues...



Table 7.3: Penetration of Canned Cooking Sauces† in the Last12 Months by Sex, Age,


...table continued

Region (cont.)

Greater London 4.9

South West 6.3

Wales 5.4

West Midlands 5.5

† — excluding pasta sauces


Baby Foods

Only 0.8% of adults used a canned baby food in the 12 months ending June2010. In the similar survey conducted for the year ending March 2008, 1.3% ofadults stated that they had used a tinned baby food in the last 12 months.Statistically, there are more women than men who take care of infants, hencethe difference in usage by gender. Those aged between 20 and 34 were themost likely to use canned baby food.

Those in the A social grade were the least likely to use canned baby food,whereas the Es were the most likely to use it, perhaps because of the lowerprice when compared with other types. Those in Wales were the most likely tohave used a canned baby food in the 12 months prior to the survey, while thosein East Anglia were the least likely.

Table 7.4: Penetration of Canned Baby Food in the Last12 Months by Sex, Age,


All adults 0.8

Sex

Men 0.4

Women 1.3

Table continues...



Table 7.4: Penetration of Canned Baby Food in the Last12 Months by Sex, Age,


...table continued

Age

15-19 0.7

20-24 2.4

25-34 2.3

35-44 0.9

44-54 0.3

55-64 0.2

65+ 0

Social Grade

A 0.2

B 0.5

C1 0.7

C2 0.8

D 1.3

E 1.8

Region

Scotland 0.5

North West 0.7

North 1.2


East Midlands 0.9

East Anglia 0.3

South East 0.9

Greater London 0.8

South West 0.8

Wales 1.5

West Midlands 1.2




8. Current Issues

THE GLOBAL ECONOMY

The global economy affects the canned foods market in many ways. Theeconomic downturn saw a general trend towards commodities losing theirvalue, but the price of metals, including tin, have remained high. The price ofmetal for canning has therefore also increased, pushing up the cost of cannedfoods. Increases in the cost of food have also driven prices of canned foods up.However, despite being worth more as a market, canned foods are actuallydisplaying very stagnant figures in terms of volume sales.

While the economic crisis affected many of the world’s biggest economies,there was little effect felt in four of the fastest-growing economies in theworld: Brazil, Russia, India and the People’s Republic of China (PRC), known asthe BRIC countries. These economies are expanding rapidly, as are theirpopulations. This has a number of effects: as the population gains wealth,consumers have a higher disposable income to spend on food, moving awayfrom traditional diets; a growing population requires more food, which thesecountries will start to import (canned or not), putting pressure on supplies,which in turn pushes the prices up; also, a growing population requires a largeramount of space to live in. Some countries are beginning to give up some landthat was previously used for domestically grown crops to house the expandingpopulation. They do not need to rely on this arable land as much anymore,because they can afford to import food from elsewhere, which furtherincreases demand and, in turn, pushes up prices.

The price of beef and beef-products (such as corned beef) increased by a fairlylarge amount in 2010 due to Argentinean cattle farmers switching to othermethods of farming that are more profitable to them, instead of having toprovide produce that is most beneficial to other countries.

Finally, the recession-hit countries have been turning to canned foods as acheaper alternative than other products, which boosted sales, with tinplatemanufacturers commenting that the demand for tinned cans was on the risepurely for the purpose of canning food.

ENVIRONMENTAL ISSUES

The canned fish sector is affected by environmental issues and this is still likelyto be the case in the future. The conservation and sustainable use of fish stockshas been greatly promoted recently and new rules, regulations and legislationmean that fishermen cannot catch as many fish as they did previously andcannot do so all year round. There have to be seasons for fishing to allow stocksto replenish themselves. This leads to a smaller quantity of fish which, in turn,can lead to higher prices.

Canned Foods Current Issues


However, several companies, including Princes, are participating in theInternational Seafood Sustainability Foundation (ISSF), which encourages thesharing of catch-and-purchase data with regional fisheries managementorganisations in order to avoid selling bluefin tuna, one of the main speciesthreatened with overfishing to the point of possible extinction, particularly inthe Mediterranean. The ISSF also campaigns for stronger regulation when itcomes to the bluefin tuna fishery. Companies, such as Princes, that supportthese rules tend to receive product logos in return, which ensure that theirconsumers know that the fish inside their cans came from sustainable,monitored stocks. This puts the brand name in a positive light.

Less popular fish, including yellowfin and albacore tuna, skipjack and mackerel,have a healthy stock level, but consumers appear to be reluctant to turn tothese lesser-known species. This puts bluefin tuna stocks under furtherpressure. The canned fish industry could do a great deal more to promote theseother types of fish, thus preserving stocks of bluefin tuna. However, such acampaign would take time to work and would require a fairly substantialinvestment for what would be relatively little gain, so it is unlikely companieswill choose this path. Instead, they must rely on the dwindling amount ofbluefin tuna that is permitted to be caught each year which means that, asdemand rises and supply falls, a more expensive product is on the shelves —even taking into consideration that some of the costs are likely to be absorbedby the producers as a way of keeping shoppers from turning to own brands.

CARTONS VERSUS CANS

SIG Combibloc is a carton manufacturer that can claim 35 years of experiencein the packaging market. It also manufactures and supplies filling systems. Inrecent times, the company has been switching its focus away from cans andmoving towards the carton liquid food market. SIG believes that it is soups andbroths, tomato-based products, baby food, cooking sauces and desserts arelikely to contribute to the growth of the carton, concomitant with moves suchas Sainsbury’s providing its chopped tomatoes in cartons not tins, and CoventGarden’s carton soups being an ever-growing presence in the soup market.

Yet cartons are still unable to steal the can’s crown as the most trustedlonger-life ambient packaging. As cans are sealed before the food is cooked,then heated, this process both sterilises the can and its contents and creates avacuum. This is a packaging method that extends shelf life to over 2 years,according to Canned Food UK’s Chairman Steve Thomas. It is not possible toheat-treat cartons this way because they are less robust than steel or aluminiumpackaging, meaning a seal on a carton is never as fully guaranteed as a can is,if the canning process is performed properly.



Another issue in the debate is the ease with which consumers can open cansand cartons. An increasing number of canned foods are being packaged withring-pulls as a way to improve the ease of opening without resorting to tools,which may be particularly beneficial to the elderly who may struggle with theactions required to use a tin opener. However, cartons remain easier to open;although they require scissors, there are no sharp edges left by them to posepotential danger. Furthermore, SIG recently launched a new design,introducing perforated cartons that allow users to rip off the entire top. Thesehave just debuted in the UK for Tesco’s chopped tomatoes and ASDA’s bakedbeans. However, one of the arguments for the benefits of the carton over thecan is that there is less food waste created by them, but ripping off the entiretop of a container leaves the food inside just as exposed as if it were in an opencan.

Steve Thomas further weighs into the debate by citing the faster fill ratesachievable with cans; for example, it is possible to achieve a rate of over 1,000cans a minute, whereas in the UK, carton fill rates are estimated at about 200a minute, although higher rates are reached elsewhere. Thomas alsochampions the robustness of cans. On 6th December 2010, he was reported onFoodmanufacture.co.uk as saying that: “Of all the packaging mediums, weregard cans as the most effective. The strength also allows them to be handledwithin the industry: from factory gate to shop shelf."

The food supply chain is under pressure to reduce the energy used in theproduction of packaging and to reduce packaging waste. The Government’s2005 Courtauld Commitment was a voluntary agreement to reduce food andpackaging waste, which originally concentrated on weight. The carton’srelative low weight compared with cans appeared to be an ideal solution;lighter products mean a lower carbon footprint for the transportation of theproducts. Furthermore, the traditional cylindrical can does not tessellate,meaning that fewer cans can be packed into the same space as cartons.

The environmental benefits of the carton are further trumpeted by SIG, whichhas set out a 5-year plan (running from 2010 to 2015) regarding its packagingsolutions for the future. According to SIG, its cartons are made out of 75%wood fibre, a material that is completely carbon neutral and renewable.

However, in March 2010, the Government introduced the CourtauldCommitment 2, which moved away from its predecessor’s focus on weight asthe important environmental credential, and shifted towards achieving a moresustainable use of resources over the entire lifecycle of product packaging. Thiswas beneficial to the canned foods industry, because both aluminium and steelcan be recycled indefinitely without losing quality, whereas cartons have afinite amount of times they can be reused before they fall out of the recyclingprocess and into landfill. There are very few local authorities that do not collectcans, whereas paperboard can be quite difficult to recycle, and a number ofcouncils do not accept it for this reason.



HEALTH ISSUES

Bisphenol A (BPA)

2010 and early 2011 saw much controversy in terms of the use of the chemicalBisphenol A (BPA), which is used to manufacture the epoxy resin that coats theinside of many cans containing food to slow down spoilage and preventcontaminants from the metal entering the food. It is also used to strengthenhard, clear plastics, such as that used to make bottles for babies. Studies havelinked the chemical to a number of health issues. The chemical supposedlymimics the hormone oestrogen, causing endocrinological problems which, inturn, have been linked to a number of issues, including: breast cancer inwomen; low testosterone levels in men; liver damage; obesity; diabetes; otherfertility problems; and endometriosis. Studies go so far as to label BPA as a‘feminising’ agent in baby boys.

BPA researcher and obstetrician Hugh Taylor of Yale University advisespregnant women to avoid canned food, stating: "The entire life of thatindividual may be altered by a few months of BPA exposure in pregnancy. Thisis where the greatest risk lies."

Despite a number of studies by government bodies (including the UK’s FoodStandards Agency [FSA] and the US’s Food and Drug Administration [FDA])publishing results that have deemed BPA levels in the coating of cans safe, thishas done little to quell fears and 2010 saw the use of the chemical banned inDenmark, Canada, Connecticut, Minnesota and California. Although this banwas only on products aimed at children aged under 3, the safety of the chemicalcoming under such harsh scrutiny has left the public concerned over its use inthe canned foods that they purchase.

The issue will receive greater UK press in 2011, when EU states are set to outlawthe manufacture of polycarbonate feeding bottles containing the compoundfrom March, and ban their import and sale from June. Again, although thisban is only aimed at products for children, such bad publicity for the chemicalis likely to affect the canning industry, which is already seeing growth slowingas other forms of packaging rise in volume sales. However, there is definitelya market for manufacturers to eliminate the use of BPA in their packagingprocess, which would lead to a great boost in sales from health-consciousconsumers if the chemical’s absence from their products was promotedsufficiently.



Sugar, Salt and Additives

In an increasingly health-conscious society, in which more and moreinformation is being produced and published on healthy eating, the public isgrowing more concerned with the levels of additives in food, particularlysugars and salts. Mixtures high in sugar or salt can be used to preserve foodsand, although they are not necessary in excessive quantities thanks to the can’ssuccess as a long-life packaging medium, they are still present in some cannedfoods in higher amounts than their fresh counterparts. For instance, freshcarrots have no sugar and salt in them unless these are added during cooking,whereas canned carrots will contain sugar and salt, even if only in traceamounts.

However, canned fruits and vegetables are less expensive than their freshcounterparts and, therefore, families impacted by the aftermath of therecession may overlook the nutritional values of canned foods in favour of thelower price. There are claims that, although canned vegetables, in particular,may contain more salt and sugar than their fresh counterparts, as they areharvested and sealed in cans very quickly, this means that they have retainedmore of their vitamins and minerals than fresh vegetables, which may have lostsome of their quality in the supply chain.

Premier Foods reported strong growth in 2009 for its Loyd Grossman range ofpasta sauces and, although the first half of 2010 showed a slow start, PremierFoods stated that it believes this is due to 2009’s higher promotional activityfor the brand compared with 2010. Pasta sauces in jars are growing inpopularity as families turn their backs on canned pasta, which is decreasing involume year-on-year. Owing to the increase in wheat prices — which hasaffected durum wheat that is used to make pasta — pasta in general hasbecome more expensive, which has helped slow the fall in value sales.However, with pasta sauces in new formats and fresh pasta perceived to behealthier, more people are taking it upon themselves to produce relativelysimple pasta dishes with sauce and dried pasta instead of opening tins.

Pregnant Women and Mercury

Owing to the contamination of the seas by industrial waste, there has beenincreasing scrutiny in recent years with regard to mercury levels in particularseafood, including tuna, and the effects this could have on pregnant womenand the foetus they are carrying. In late 2010, the US’ FDA worked with theEnvironmental Protection Agency (EPA) to issue guidelines on the amount ofparticular breeds of fish pregnant women, children and women of childbearingage should eat because of mercury build up in the flesh.

Mercury, a neurotoxin, has been linked to arrested development in childrenand damage to foetuses. Tuna, particularly white tuna, is on the list of fishpregnant women should avoid, according to the FDA’s and EPA’s joint findingsand the subsequent report, due to the levels of mercury found in their fleshthat cause a potential hazard. The childbearing age category for women is aparticularly wide window, and to advise this demographic to strictly limit theirintake altogether could cause possible damage to the fish industry, includingthat of canned fish.



CONSUMER DEMAND

Canned Mackerel

Scotland is one of the EU’s largest producers of mackerel, which is a big sourceof Omega-3. However, the majority of Scottish mackerel is exported to theScandinavian countries, particularly Denmark. According to the InternationalFish Canners’ (IFC’s) website, Aberdeen has the last remaining canned fishmanufacturing plant in the UK, focussing on mackerel and sardines, but verylittle of this is destined for domestic consumption. Though eating mackerel isvery common in Denmark, it is difficult to sell this fish in the UK. Instead, themarket tends to be geared towards more expensive, imported fish, namely thefish that are most at risk of overfishing.



9. The Global Market

TOTAL MARKET SIZE

There are no figures available for the total size of the global canned foodsmarket, but tens of billions of cans of food are consumed around the worldeach year, ensuring that the market itself is worth billions of pounds. Therecession appears to have a positive impact on sales; canned foods are acheaper alternative to fresh or frozen foods and often cut waste. However, asthe global economies recover, volume sales of canned foods may start todecline as consumers are increasingly able to afford the more expensiveoptions again.

EUROPE

Sales of canned foods across Europe appear to be in decline due to the samereasons causing the fall in the UK’s market — namely that consumers areswitching to alternative forms of packaging owing to convenience andpracticality. However, the UK market has not seen such a switch and is generallymore loyal to the canned format. Also, despite the influx of the carton andother packaging formats, canned foods still remain a staple part of diets acrossEurope.

THE US

The US is the world’s biggest market for canned foods. In 2008, the FDA citedthat 17% of American people’s diets were made up of canned foods. Themarket for canned meats is particularly large in the US, led by the brand nameSpam. New product innovation in terms of packaging seems to be intent onmoving away from the can, which can have an old-fashioned image. Manytechnological advances have their origins in the US, so rebranding products ina new way and format, away from tradition, is likely to make them morepopular.

Canned Foods The Global Market


PEOPLE’S REPUBLIC OF CHINA

The People’s Republic of China (PRC) is the world’s fastest-growing economyand, although canned foods have traditionally played a very small part in thepopulation’s diet until now, rapid urbanisation and industrialisation has meanta huge change in lifestyles and habits. An increasingly westernised diet is beingadopted by the PRC, including an increased consumption of meat, which meansdemand for canned foods has soared, owing to the fact that cans provide areliable way of preserving the new foods that are being introduced. Aconsiderable proportion of the population does not yet have the fridges andfreezers necessary to store other kinds of produce, but this is rapidly changing;soon white goods will become a much greater presence in Chinese homes, thuscausing a switch in demand from canned foods to their fresh and frozencounterparts.

Canned Foods The Global Market


10. Forecasts

INTRODUCTION

The majority of the sectors of the canned foods market recorded growth invalue terms in 2010, but factors such as rising commodity costs (of both thefoodstuffs and the metal to make the cans) have contributed to the increasein value terms, even as volume sales fall. The recession slowed the decline inoverall volume sales, with canned foods being a cheaper way to provide staplesin times of economic hardship, but the UK exited the recession in the lastquarter of 2009.

The value of the canned foods market is likely to rise in the future, with growthin most sectors. Commodity prices are rising as the UK comes into increasingcompetition in the food market from emerging economies such as Brazil,Russia, India and the People’s Republic of China (PRC), which are all consumingextra as their wealth grows. Demand for commodities, including the foods aswell as the fuel necessary to transport them, is likely to push costs up as theseeconomies begin to be more serious competitors on a global level. Therefore,despite the brightening economic outlook possibly moving consumers towardsmore expensive alternatives, there are plenty of factors that ensure that thecan will play a large part in the food market for at least the next 5 years, as itwill remain a cheaper option than other types of food.

THE ECONOMY

The UK has only fairly recently emerged from the recession, which the NationalInstitute of Economic and Social Research (NIESR) held to be the worse sincethe 1930s. However, by the end of 2009 the recession lifted, and the UK’seconomy slowly returned to growth along with many nations worldwide. It isexpected to continue expanding in future years. Despite this, the economiccrisis has left its mark and there are likely to be poor economic conditions forsome time, even as the UK’s gross domestic product (GDP) increases. TheGovernment’s predictions are that GDP will grow by 1.9% in 2011 and by 2.1%in 2012.

There are several contradicting factors to consider when forecasting the UK’scanned foods market: for example, economic growth could mean fewer peopleturning to canned foods as a cheap option, but on the other handunemployment is expected to rise in 2011 and stay high during 2012, whichmay once again have a positive effect on the market. Public spending cuts, taxrises and inflation, which are likely to rise faster than wages, especially in 2011,are also likely to put strain on household finances, which again providesopportunities for the canned foods market in terms of volume growth. The taxburden on the population is also likely to increase due to the UK’s fragileeconomic condition, including a large budget deficit.

Canned Foods Forecasts


Table 10.1: Forecasts for the UK Economy(000, % and million), 2010-2014

2010 2011 2012 2013 2014

UK resident population (000) 62,222 62,649 63,074 63,498 63,921

GDP growth (%) 1.6 1.9 2.1 2.3 2.4

Inflation† (%) 4.4 3.6 2.7 3.0 3.2

Unemployment‡ (million) 1.52 1.54 1.54 1.50 1.43

GDP — gross domestic product

† — at retail price index (RPI)

‡ — actual number of claimants

Source: Population Projections Database (2008-based projections), NationalStatistics website/Forecasts for the UK Economy, November 2010, TreasuryIndependent Average © Crown copyright material is reproduced with thepermission of the Controller of HMSO (and the Queen’s Printer for Scotland).

Demographics

The percentage of the population made up of the elderly is likely to increasein the future as living standards improve and healthcare becomes moreadvanced. A further 2 million people will reach the age of 85 or more in 2033than in 2008. The ageing population is likely to drive demand for canned foods,as the format is familiar to the older age group.

The number of those aged 60 or above is projected to reach 28.6% of thepopulation by 2033, compared with 22% in 2008. Eurostat predicts that the UKwill have the second-largest population in Europe by 2050, with 75.1 millionpeople, surpassed only by Germany’s projected population of 89.9 million. Theincreasing size of the population is likely to further drive all markets, includingthat of canned foods.



Table 10.2: Projected UK Population by Age (million),2008, 2013, 2018, 2023, 2028 and 2033

2008 2013 2018 2023 2028 2033

Age

0-14 10.8 11.0 11.5 11.9 11.9 12.0

15-29 12.3 12.7 12.3 12.1 12.3 12.8

30-44 13.0 12.5 12.8 13.8 14.2 13.8

45-59 11.8 12.7 13.2 12.6 12.2 12.5

60-74 8.8 9.4 10.0 10.5 11.4 11.9

75-84 3.4 3.7 4.0 4.8 5.2 5.3

85+ 1.3 1.5 1.8 2.2 2.6 3.3

All ages 61.4 63.5 65.6 67.9 69.8 71.6

Source: Statistical Bulletin: 2008-based National population projections, NationalStatistics © Crown copyright material is reproduced with the permission of theController of HMSO (and the Queen’s Printer for Scotland)

FORECASTS 2011 TO 2015

Some sectors of the canned foods market are likely to see growth in the yearsto 2015, which should keep the market quite buoyant, even as other sectorsdecrease in value. Key Note predicts fairly sustained growth in value terms inthe future, driven partly by a rise in commodity prices and increased consumerdemand from developing countries. High unemployment figures are also likelyto provide a boost to the market in 2011.

While Key Note predicts growth in 2015, the figures for this year indicate aslower growth rate than that forecast for the previous years, partly due toseveral sectors beginning a decline in value. This is likely to be as a result of avolume decline as consumers turn towards alternative types of packaging; thisis especially true of cooking sauces and desserts — cooking sauces are underthreat from pouches and ambient tinned desserts are being usurped by frozenor fresh alternatives, which are currently experiencing a high rate ofinnovation.

Canned vegetables are likely to show strong growth throughout the 5-yearforecast period, mostly due to the popularity of products such as baked beans.However, even growth in this sector will taper off as 2015 approaches, not dueto a lack of demand for baked beans but because other canned vegetables onthe market are likely to be replaced by alternatives, which have been granteda longer shelf life through technological innovation.



The canned fish sector is expected to grow rapidly in value to 2015, mostly dueto increased pressure on supply and new rules and regulations regarding theamount that can be fished to prevent certain species becoming endangered.Although the rising cost of meat in general would indicate an increase in thevalue of the canned meat sector, Key Note is predicting a volume decline inthe coming years due to the perception of canned meats as beingold-fashioned, which will offset any value increases. Furthermore, a greaterrange of chilled pies is becoming available, a format that offers even greaterconvenience than canned pies and is likely to negatively affect the sector.

The canned fruit sector appears to be in terminal decline as more consumersturn to fresh produce which, like fresh vegetables, are likely to be subject toinnovations that extend shelf life, as in the canned desserts market.

Although volume sales of pasta are likely to fall, the value of the sector isunlikely to decrease exponentially due to rising wheat prices as the world’spopulation grows and demand increases, which is driving up the cost of makingthe pasta.

Table 10.3: The Forecast Total UK Canned Foods Market bySector by Value at Current Prices (£m at rsp), 2011-2015

2011 2012 2013 2014 2015

Vegetables 795 857 922 960 995

Fish 570 620 676 745 788

Soup 465 493 520 550 580

Meat 340 335 330 321 311

Fruit 135 130 125 117 109

Pasta 127 125 125 120 118

Desserts 78 75 70 59 42

Cooking sauces 17 15 12 9 6

Total 2,527 2,650 2,780 2,881 2,949

% change year-on-year 5.4 4.9 4.9 3.6 2.4


Source: Key Note



Figure 9.1: The Forecast Total UK Canned Foods Market by Valueat Current Prices (£m at rsp), 2011-2015

2011 2012 2013 2014 2015

2,550

2,575

2,600

2,625

2,650

2,675

2,700

2,725

2,750

2,775

2,800

2,825

2,850

2,875

2,900

2,925

2,950


Source: Key Note

MARKET GROWTH

Between 2006 and 2015, Key Note predicts that the canned foods market willincrease in value by 50.8%, from £1.96bn to £2.95bn.



Figure 9.2: Growth in the UK Canned Foods Market by Valueat Current Prices (£m at rsp), 2006-2015

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

2,000

2,100

2,200

2,300

2,400

2,500

2,600

2,700

2,800

2,900


Source: Key Note

FUTURE TRENDS

New Product Development

The major competitors for the can are other packaging formats, such ascartons, jars and pouches, which offer things that cans do not, including thefact that they can be used in the microwave. However, new innovation in thecanned foods sector is currently underway and could possibly lead to a newdesign of can that is microwavable without danger.

In early 2011, scientists in the UK announced the innovation of a type of plasticpackaging that indicates when food is about to be spoiled, which they arehoping will cut the UK’s large amount of wasted food. If consumers know thata product is about to expire thanks to this new packaging, the scientists’ theoryis that the product can be used up before it expires completely and is wasted.Although there have been trials of an indicator that can be inserted into othertypes of packaging, they are expensive to produce — this new product isactually part of the packaging which cuts the cost of the innovation. Cans havea very long shelf life until they are opened, which negates the need for thistype of indicator, but once they are opened and stored there is no way oftelling when they are about to expire. The very nature of cans does not allowthem to use this indicative packaging, and so consumers might opt for this newtechnology to cut waste in an even more effective way than cans.



New product developments (NPDs) are likely in the canned soup, vegetablesand fish sectors, which, in addition to rising commodity prices and thecontinuing popularity of products in these sectors, is likely to aid value growth.Innovations such as products with reduced salt, sugar and additives are likelyto be popular parts of this overhaul, as well as new items that will continue onfrom recent developments such as No Drain tuna and flavoured canned fish.

However, the majority of NPDs in the market are likely to have a negativeimpact on canned foods; improved types of alternative packaging, for instance,are likely to damage sales.



11. Company Profiles

INTRODUCTION

The following section contains financial profiles of some of the principalcompanies identified as operating within the market sector discussed in thisreport. The financial results of some of the important names within the sectormay not be reported if:

• their principal activities are so varied that their results are not consideredapplicable to the survey

• they are no longer trading as separate companies

• their financial data are very out of date.

DEFINITIONS

A company which has a ‘Y’ consolidated value has filed consolidated accountsfor the relevant year.

† — denotes that the growth rate calculation is invalid, because the figureseither move from positive to negative or from negative to positive.

Turnover (Sales)

This includes all income derived from the principal activities of the firm, net ofVAT. It encompasses UK sales, exports and overseas and intercompany sales.

Pre-Tax Profit

The net trading profit figure after deduction of all operating expenses,including depreciation and finance charges but before deduction of tax,dividends, subventions or group relief, and other appropriations. Whereapplicable, it will include the share of profits and losses of associatedcompanies. Items described by the company as exceptional are included;extraordinary items are excluded.

Profit Margin

Pre-tax profit expressed as a percentage of sales.

Average Remuneration

Total employee remuneration divided by the number of employees.

Sales per Employee

Sales divided by the number of employees.

FURTHER INFORMATION

For more detailed financial information telephone Key Note on: 0845-5040452.

Canned Foods Company Profiles


BAXTERS FOOD GROUP LTD

Registered Office Highfield HouseFochabersMoray, IV32 7LDTelephone: 01343-820 393

Company Registration Number SC023572Date of Incorporation 07/11/45Holding Company WA Baxter & Sons (Holdings) LtdUltimate Holding Company WA Baxter & Sons (Holdings) Ltd

Previous Name(s) and Date(s) of Change

WA Baxter & Sons Ltd (21/12/06)

Principal Activities

A group engaged in the manufacture and supply of ambient, chilled and food products,including soups, savoury sauces, preserves, salad and meat accompaniments.

SIC Codes

15891, Manufacture of soups.15870, Manufacture of condiments and seasonings.15899, Manufacture of other food products not otherwise classified.

Structure

Baxters was founded as a family-run firm in 1868 and still remains in the Baxters family — AudreyBaxter, the great granddaughter of founder George Baxter — is the Chief Executive (CE) of thecompany.

Brand Information

Deli Inspired Soups, Favourites, Healthy Choice, Healthy Choice Chunky, Luxury and Vegetarianare among Baxters’ ranges of soups. Its Favourites brand is the second best-selling brand in thecanned soup sector, after Heinz’s Classic range.

Recent Developments

According to Nielsen Media Research (NMR), Baxters became the most-advertised canned souprange in the year ending September 2010. Its £967,000 advertising campaign included a productrebrand and new and improved flavours. Its canned Deli Inspired soup range, launched in 2008,sparked the Deli Inspired lunch bowls in 2010.



FINANCIAL PROFILE

Year End 30/05/09 31/05/08 02/06/07 27/05/06Weeks 52 52 53 54Consolidated Y Y Y Y

Sales

Sales (£000) 123,981 116,360 113,942 110,021% change year-on-year 6.55 2.12 3.56 -Exports (£000) 39,483 32,609 22,326 21,030Exports/Sales (%) 31.85 28.02 19.59 19.11

Profits

Pre-Tax Profit (£000) 5,031 232 6,695 6,472% change year-on-year - -96.53 3.45 -Profit Margin (%) 4.06 0.20 5.88 5.88Operating Profit (£000) 6,880 592 7,504 7,043

Employees

Number of Employees 997 1,047 1,041 1,035Average Employee Remuneration (£) 20,102 18,890 17,682 19,278Sales per Employee (£) 124,354 111,137 107,389 102,363Profit per Employee (£) 5,046 222 6,310 6,022Capital Employed per Employee (£) 89,627 86,818 89,496 55,432

Balance Sheet/Ratios

Capital Employed (£000) 89,358 90,898 93,165 57,372Return on Capital (%) 5.63 0.26 7.05 10.86Net Worth (£000) 43,147 44,730 45,300 34,024Current Ratio 1.59 1.70 1.85 1.66Liquidity Ratio 0.64 0.77 0.83 0.96



DEL MONTE (UK) LTD

Registered Office 240 London Road,Staines,Middlesex,TW18 4JDTelephone: 01977-649 333

Company Registration Number 02416083Date of Incorporation 23/08/89Holding Company Del Monte BV (Netherlands)Ultimate Holding Company Fresh Del Monte Produce Inc (US)


Del Monte Fresh Produce (UK) Ltd (31/10/08)Del Monte Fresh Produce (UK Holdings) Ltd (30/06/95)PPI Del Monte Fresh Produce (Holdings) Ltd (29/01/93)PPI Del Monte Produce (Holdings) Ltd (05/11/91)Legibus 1437 Ltd (09/10/89)


Banana ripeners as well as importers, pre-packers, distributors, sellers of fruit and producer ofprepared fruit, salad and dips.

SIC Code

51310, Wholesale of fruit and vegetables.

Structure

Del Monte (UK) Ltd is a supplier of fruit- and vegetable-based products. It holds approximatelya quarter of the market in terms of value. The ultimate holding company is Fresh Del MonteProduce Inc, which is based in the Cayman Islands.

Brand Information

Del Monte is the leading brand in the canned fruit sector, both in the UK and worldwide.

Recent Developments

July 2010 saw Del Monte agreeing to cut the salt content by up to 20% in its canned vegetableproducts. The company also came to a deal with Tesco, which allows the supermarket toexclusively distribute Del Monte’s new Fruitini lunchbox mini bags.



FINANCIAL PROFILE

Year End 01/01/10 26/12/08 28/12/07 29/12/06Weeks 53 52 52 52Consolidated N N N N

Sales

Sales (£000) 140,050 112,469 148,171 163,162% change year-on-year 24.52 -24.10 -9.19 -Exports (£000) - - - -Exports/Sales (%) - - - -

Profits

Pre-Tax Profits (£000) 2,928 -1,259 6,186 -678% change year-on-year † † † -Profit Margin (%) 2.09 -1.12 4.17 -0.42Operating Profit (£000) 2,901 -1,266 6,175 -688

Employees

Number of Employees 559 692 750 901Average Employee Remuneration (£) 21,058 21,478 17,171 17,849Sales per Employee (£) 245,810 162,527 197,561 181,090Profit per Employee (£) 5,139 -1,819 8,248 -752Capital Employed per Employee (£) 60,562 46,332 43,045 28,966


Capital Employed (£000) 33,854 32,062 32,284 26,098Return on Capital (%) 8.49 -3.93 19.16 -2.60Net Worth (£000) 31,476 28,632 29,464 22,851Current Ratio 2.10 2.13 1.81 1.30Liquidity Ratio 1.83 1.91 1.59 1.08



GLENRYCK FOODS LTD

Registered Office 10 Station Road,Henley-On-Thames,Oxfordshire, RG9 1AYTelephone: 01491-578 123Fax: 01491-573 649

Company Registration Number 01500044Date of Incorporation 05/06/80Holding Company Oceana Group Ltd (South Africa)Ultimate Holding Company Oceana Group Ltd (South Africa)


Glenryck (UK) Ltd (13/03/01)Womelk Ltd (31/12/80)


The import and distribution of fish products.

SIC Code

51380, Wholesale of other food including fish, crustaceans and molluscs.

Structure

Oceana Group Ltd, one of the largest conglomerates in South Africa, has owned Glenryck foodssince 2004. The company produces both Gelnryck-branded fish as well as own-label salmon andtuna products.

Brand Information

Glenryck recently added new products to its range, including Alaskan sockeye red and pinksalmon varieties. It has also recently created own-brand sardines in both tomato sauce andsunflower oil.

Recent Developments

Glenryck has tried to make the can even more convenient by innovating a new design with aneasy-open ring-pull. It has also further capitalised on its sustainable tuna, fished from theMaldives, in order to promote its environmentally friendly image.



FINANCIAL PROFILE


Sales

Sales (£000) 15,917 22,294 19,867 19,231% change year-on-year -28.60 12.22 3.31 -Exports (£000) - - 1,987 -Exports/Sales (%) - - 10.00 -

Profits

Pre-Tax Profits (£000) -438 1,167 722 961% change year-on-year † 61.63 -24.87 -Profit Margin (%) -2.75 5.23 3.63 5.00Operating Profit (£000) -368 1,271 795 1,010

Employees

Number of Employees 13 13 13 13Average Employee Remuneration (£) 58,566 54,415 43,692 45,647Sales per Employee (£) 1,201,283 1,682,566 1,528,231 1,508,314Profit per Employee (£) -33,057 88,075 55,538 75,373Capital Employed per Employee (£) 247,462 284,462 280,846 277,769


Capital Employed (£000) 3,217 3,698 3,651 3,611Return on Capital (%) -13.36 30.96 19.78 27.13Net Worth (£000) 3,108 3,576 3,517 3,461Current Ratio 1.90 1.54 2.01 1.92Liquidity Ratio 0.68 0.54 1.01 1.00



GONDOLA GROUP LTD

Registered Office 5th Floor2 Balcombe Street,London, NW1 6NW

Company Registration Number 05953163Date of Incorporation 02/10/06Holding Company Gondola Investments Ltd Partnership IncUltimate Holding Company Cinven Ltd


Paternoster Topco Ltd (15/01/07)


A group engaged in the operation of restaurants.

SIC Code

55301, Licensed restaurants.

Structure

The Gondola Group owns many high-street restaurant chains, including Zizzi, ASK andPizzaExpress. The group serves approximately 42 million meals a year out of its various outlets.

Brand Information

The company re-launched its passata sauce, the tomato-based topping it uses on its PizzaExpresspizzas, in canned format instead of glass jars. The company has unveiled a new pasta saucerange under the Pizza Express portfolio as an extension of its passata sauce and salad dressingranges.

Recent Developments

At the same time as re-branding its cooking sauce into the canned format, the company alsopublicised the fact that the sauce could be used as a base for Italian dishes, such as Bolognese.



FINANCIAL PROFILE

Year End 28/06/09 29/06/08 01/07/07Weeks 52 52 27Consolidated Y Y Y

Sales

Sales (£000) 509,300 461,700 228,500% change year-on-year 10.31 202.06 -Exports (£000) - - -Exports/Sales (%) - - -

Profits

Pre-Tax Profits (£000) -52,400 -52,300 -35,000% change year-on-year † † -Profit Margin (%) -10.29 -11.33 -15.32Operating Profit (£000) 45,700 44,500 12,600

Employees

Number of Employees 13,307 12,636 11,939Average Employee Remuneration (£) 12,009 12,567 11,518Sales per Employee (£) 38,273 36,538 36,860Profit per Employee (£) -3,938 -4,139 -5,646Capital Employed per Employee (£) 67,551 71,312 76,062


Capital Employed (£000) 898,900 901,100 908,100Return on Capital (%) -5.83 -5.80 -7.42Net Worth (£000) -772,000 -754,000 -734,300Current Ratio 0.96 0.87 0.79Liquidity Ratio 0.83 0.75 0.71



HJ HEINZ COMPANY LTD

Registered Office South BuildingHayes ParkHayesMiddlesex, UB4 8ALTelephone: 020-8573 7757

Company Registration Number 00147624Date of Incorporation 01/06/17Holding Company Heinz Europe UnlimitedUltimate Holding Company HJ Heinz Company (US)


HJ Heinz Company Ltd (23/02/01)


The development, marketing, manufacture, sale and distribution of processed food products.

SIC Codes

15330, Processing and preserving of fruit and vegetables not elsewhere classified.15891, Manufacture of soups.15870, Manufacture of condiments and seasonings.

Structure

The ultimate holding company for HJ Heinz Company Ltd is the US-based HJ Heinz Company,a global corporation that supplies goods to more than 200 countries.

Brand Information

Heinz manufactures a range of canned foods, including soup, baked beans and pasta. It alsosupplies other products, such as: baby food; WeightWatchers products; cakes, cereals andsnacks; canned and microwaveable beans; chilled and frozen desserts and dairy products; LindaMcCartney meals; fruit products; frozen ready meals; salads, salad dressings and vinegar;sandwich fillers; spreads and pickles; sandwhiches; sauces and tomato products; and soya.

Recent Developments

Heinz’s tomato soup celebrated its 100th birthday in 2010 with a new limited-edition packaging,cashing in on the age of the company as a measure of quality and trustworthiness. The companyalso released the Fridge Pack of baked beans — a plastic, resealable tub of beans that Heinzbelieves will offer greater convenience than its canned variant.



FINANCIAL PROFILE


Sales

Sales (£000) 734,400 675,700 610,500 570,700% change year-on-year 8.69 10.68 6.97 -Exports (£000) 23,700 - - -Exports/Sales (%) 3.23 - - -

Profits

Pre-Tax Profits (£000) 145,700 153,700 142,000 124,200% change year-on-year -5.20 8.24 14.33 -Profit Margin (%) 22.75 23.26 21.76 19.81Operating Profit (£000) 138,200 128,600 127,800 90,800

Employees

Number of Employees 2,102 2,025 1,982 2,179Average Employee Remuneration (£) 51,901 47,629 48,269 40,726Sales per Employee (£) 333,679 308,022 256,967 252,944Profit per Employee (£) 75,901 71,645 55,923 50,111Capital Employed per Employee (£) 120,494 172,452 91,372 61,178





JOHN WEST FOODS LTD

Registered Office Lancaster HouseMercury CourtTithebarn Street,Liverpool,L2 2GATelephone: 01512-436 200Fax: 01512-365 465

Company Registration Number 00200767Date of Incorporation 01/10/24Holding Company UK Seafood Investment LtdUltimate Holding Company (Domestic) European Seafood Investments 1 Sarl


None


The purchase, marketing and sale of food for human consumption.

SIC Code

51390, Non-specialised wholesale of food, beverages and tobacco.

Structure

John West Foods Ltd is a name that was established in 1888 by two Liverpool-based merchants:TL Pelling and CH Stanley, named after the Scotsman John West, who emigrated to the US in1868 and started his first cannery in Oregon. The company has been owned by MW Brands since2006.

Brand Information

John West holds approximately a third of the canned fish sector by market value. Its productsinclude: canned tuna and salmon; Light Lunch; No Drain tuna; Something Extra; Mackerel;Sardines; Omega 3; Herrings and Kippers; Brisling and Slid; Speciality Fish and Shellfish; and theReserve range. It also has the rights to distribute WeightWatchers-branded sandwich fillings.

Recent Developments

John West launched an advertising campaign in 2010 using celebrity chef James Martin topromote recipes that could be quickly and easily prepared with its product range. 2010 also sawthe launch of pre-grilled canned sardines and pre-mixed sandwich fillings.



FINANCIAL PROFILE


Sales

Sales (£000) 171,537 165,482 171,382 142,601% change year-on-year 3.66 -3.44 20.18 -Exports (£000) 28,544 25,626 25,906 15,293Exports/Sales (%) 16.64 15.49 15.12 10.72

Profits

Pre-Tax Profits (£000) 35,576 1,303 -3,023 5,402% change year-on-year - † † -Profit Margin (%) 20.74 0.79 -1.76 3.79Operating Profit (£000) 3,695 2,713 -984 5,048

Employees

Number of Employees 67 70 76 68Average Employee Remuneration (£) 48,433 48,814 46,158 42,632Sales per Employee (£) 2,560,254 2,364,029 2,555,026 2,097,074Profit per Employee (£) 530,985 18,614 -39,776 79,441Capital Employed per Employee (£) 1,086,015 543,514 488,895 577,706


Capital Employed (£000) 72,763 38,046 37,156 39,284Return on Capital (%) 48.89 3.42 -8.14 13.75Net Worth (£000) 72,763 38,046 37,156 39,284Current Ratio 5.06 1.21 1.27 1.35Liquidity Ratio 3.35 0.64 0.79 0.56



PETTY, WOOD & CO LTD

Registered Office Livingstone Road,Andover,Hampshire, SP10 5LATelephone: 01264-345 500

Company Registration Number 00082419Date of Incorporation 28/10/04Holding Company Seckloe 323 LtdUltimate Holding Company Brands of Distinction Ltd


Petty Wood & Company Ltd (31/12/79)


The provision of sales, marketing and distribution services on behalf of manufacturers of food,drink, non-food gift brands.

SIC Codes

51390, Non-specialised wholesale of food, beverages and tobacco.51479, Wholesale of other household goods not elsewhere classified.

Structure

Petty, Wood & Co Ltd was established in 1816 and provides sales, marketing and distributionservices for premium foods and drink brands in the UK and the Republic of Ireland food retail,wholesale and foodservice sectors. In August 2007, the company was sold to a Halifax, Bank ofScotland-backed management team.

Brand Information

The company holds the rights to distribute the Prince of Wales’ Duchy Range. The company’smain interest, however, is in the canned foods market with its Epicure range, which covers fish,vegetables, fruit and meat.

Recent Developments

The company recently forged an exclusive deal with the Waitrose supermarket chain. Thecompany supplies Waitrose with the Prince of Wales’ Duchy range and has given Waitrose theexclusive right to sell it.



FINANCIAL PROFILE


Sales

Sales (£000) 43,644 46,855 35,400 36,178% change year-on-year -6.85 32.36 -2.15 -Exports (£000) 3,519 3,906 2,755 2,312Exports/Sales (%) 8.06 8.34 7.78 6.39

Profits

Pre-Tax Profits (£000) 1,563 1,263 742 1,155% change year-on-year 23.75 70.22 -35.76 -Profit Margin (%) 3.58 2.70 2.10 3.19Operating Profit (£000) 1,539 1,210 688 1,072

Employees

Number of Employees 101 104 112 111Average Employee Remuneration (£) 29,832 27,731 26,214 27,811Sales per Employee (£) 423,966 360,423 316,071 325,928Profit per Employee (£) 15,183 9,715 6,625 10,405Capital Employed per Employee (£) 47,010 38,885 34,911 38,676





PREMIER FOODS PLC

Registered Office Premier HouseCentrium Business ParkGriffiths WaySt AlbansHertfordshire, AL1 2RETelephone: 01727-815 850

Company Registration Number 05160050Date of Incorporation 22/06/2004Holding Company NoneUltimate Holding Company None


Premier Brands Foods PLC (02/07/04)


A group engaged in the manufacture and marketing of ambient grocery products for majormultiple retailers, cash and carry and convenience stores and foodservice operators.

SIC Codes

15330, Processing and preserving of fruit and vegetables not elsewhere classified.15870, Manufacture of condiments and seasonings.15519, Manufacture of other milk products.15810, Manufacture of bread; manufacture of fresh pastry goods and cakes.15899, Manufacture of other food products not elsewhere classified.51380, Wholesale of other food including fish, crustaceans and molluscs.

Structure

Premier Foods was formed by the US-based private-equity firm Hicks, Muse, Tate & Furstfollowing the company’s purchase of Hillsdown Holdings PLC for £822m in 1999. In 2007,Premier Foods completed the acquisition of the UK food giant RHM, giving it ownership ofwell-known food brands such as Hovis, Sharwood and Bisto.

Brand Information

In its canned foods sector, Premier’s main brands include Branston and Fray Bentos. Thecompany claims that more than 90% of UK households have a Premier Foods product in theirhome.

Recent Developments

Premier Foods added a ‘Just Steak’ canned pie to its Fray Bentos brand around the same timeas Princes relaunched its canned pie range with what they described as an improved, crustiertop. The company is also currently undergoing a financial overhaul in an attempt to take controlof its net debt.



FINANCIAL PROFILE


Sales

Sales (£000) 2,661,000 2,603,600 2,125,200 840,700% change year-on-year 2.20 22.51 152.79 -Exports (£000) 162,700 170,100 133,600 54,000Exports/Sales (%) 6.11 6.53 6.29 6.42

Profits

Pre-Tax Profits (£000) 46,700 -404,800 -77,600 59,000% change year-on-year † † † -Profit Margin (%) 1.75 -15.55 -3.65 7.02Operating Profit (£000) 176,500 -41,400 72,000 100,500

Employees

Number of Employees 16,099 15,913 17,937 5,114Average Employee Remuneration (£) 28,244 26,972 21,525 22,781Sales per Employee (£) 165,290 163,615 118,481 164,392Profit per Employee (£) 2,901 -25,438 -4,326 11,537Capital Employed per Employee (£) 175,837 190,002 186,224 214,314


Capital Employed (£000) 2,830,800 3,023,500 3,340,300 1,096,000Return on Capital (%) 1.65 -13.39 -2.32 5.38Net Worth (£000) -1,414,900 -1,539,100 -1,427,100 -408,800Current Ratio 0.67 0.71 0.80 0.92Liquidity Ratio 0.43 0.49 0.52 0.55



PRINCES LTD

Registered Office Royal Liver BuildingPier HeadLiverpool, L3 1NX

Company Registration Number 02328824Date of Incorporation 15/12/88Holding Company Mitsubishi Corp (Japan)Ultimate Holding Company Mitsubishi Corp (Japan)


Princes Holding Ltd (12/10/89)Mitopen Ltd (08/03/89)


A group engaged in the import, manufacture and distribution of food and drink products tothe grocery trade.

SIC Codes

51390, Non-specialised wholesale of food, beverages and tobacco.15209, Other fish processing and preserving.15980, Production of mineral waters and soft drinks.

Structure

Princes Ltd is owned by Japan’s largest general trading company, the Mitsubishi Corporation,a global company with more than 200 bases of operation in approximately 80 countriesworldwide. As part of the Princes Food and Drink Group, the company supplies mainland Europeand has around 3,300 employees worldwide.

Brand Information

Princes is a main supplier to several other leading food and drink brands, including Napolina,Shippam’s and Vier Diamanten in the canned foods sector.

Recent Developments

In the second quarter of 2010, the company began to manufacture and market a range ofcanned ready meals for the first time, including chicken in a white wine sauce, chilli con carne,vegetable curry and Irish stew. It followed up this foray into the canned meat category with anew and improved canned pies range. The company also teamed up with ADM to move intothe Eastern European market and is now producing edible oils for sale across Poland.



FINANCIAL PROFILE


Sales

Sales (£000) 1,093,217 1,081,003 946,392 1,110,540% change year-on-year 1.13 14.22 -14.78 -Exports (£000) 160,547 197,240 171,283 -Exports/Sales (%) 14.69 18.25 18.10 -

Profits

Pre-Tax Profits (£000) 40,663 39,085 37,966 40,185% change year-on-year 4.04 2.95 -5.52 -Profit Margin (%) 3.72 3.62 4.01 3.62Operating Profit (£000) 40,401 36,958 34,817 34,145

Employees






SIMPSON READY FOODS LTD

Registered Office Link HouseStretford RoadUrmstonManchesterLancashire, M41 9WH

Company Registration Number 00114121Date of Incorporation 08/02/1911Holding Company NoneUltimate Holding Company None


None


The manufacture and supply of prepared foods.

SIC Codes

15899, Manufacture of other food products not elsewhere classified.15820, Manufacture of rusks and biscuits; manufacture of preserved pastry goods and cakes.

Structure

Simpson Ready Foods Ltd was founded in Manchester in 1911 as a family-owned business.Simpsons is still a family-run business, led by two third-generation Simpsons, brothers Williamand Andrew.

Brand Information

Its canned products include desserts such as spotted dick and chocolate sponge, as well as thecanned Irish stew ready meal, manufactured under the Goblin name.

Recent Developments

In recent decades it has expanded into new packaging formats away from cans, enabling it todevelop a broad range of own-brand and private-label products, but still insists that its cannedproducts are a valuable part of its business.



FINANCIAL PROFILE


Sales

Sales (£000) 10,328 13,196 - -% change year-on-year -21.73 - - -Exports (£000) 99 146 - -Exports/Sales (%) 0.96 1.11 - -

Profits

Pre-Tax Profits (£000) 146 -209 -95 -124% change year-on-year † † † -Profit Margin (%) 1.41 -1.58 - -Operating Profit (£000) 180 -441 -29 -79

Employees

Number of Employees 104 124 153 126Average Employee Remuneration (£) 25,173 27,637 19,444 18,087Sales per Employee (£) 99,038 106,419 - -Profit per Employee (£) 1,404 -1,685 -621 -984Capital Employed per Employee (£) 23,683 19,145 17,190 21,865


Capital Employed (£000) 2,463 2,374 2,630 2,755Return on Capital (%) 5.93 -8.80 -3.61 -4.50Net Worth (£000) 2,432 2,279 2,423 2,462Current Ratio 1.07 0.95 0.99 1.01Liquidity Ratio 0.70 0.65 0.66 0.71



TULIP LTD

Registered Office Seton HouseWarwick Technology ParkGallowsWarwick, CV34 6DATelephone: 01842-851 600

Company Registration Number 00608077Date of Incorporation 16/07/58Holding Company Tulip International (UK) LtdUltimate Holding Company Danish Crown AmbA (Denmark)


Tulip International (UK) Bacon Division Ltd (07/10/02)Ess-Food Danepak Ltd (19/11/90)Danepak Ltd (30/12/83)


The processing, packing, distribution and sale of meat products.

SIC Code

15131, Bacon and ham production.

Structure

Tulip was established in the UK in 2002. It is a subsidiary of Danish Crown, the largest porkproducer in Europe and the biggest pork exporter in the world. Tulip currently has 4 sites in theUK and employs around 9,000 members of staff.

Brand Information

The company’s brands in the canned foods market include Spam (produced under licence fromHormel Foods of the US), Stag (a brand of chilli con carne) and Plumrose (a range of cannedmeats).

Recent Developments

The company sources its pigs from British farms, appealing to those who want to buy Britishfood to support local farmers.



FINANCIAL PROFILE


Sales

Sales (£000) 1,138,945 953,899 939,681 952,039% change year-on-year 19.40 1.51 -1.30 -Exports (£000) 35,952 26,739 20,767 26,795Exports/Sales (%) 3.16 2.80 2.21 2.81

Profits

Pre-Tax Profits (£000) 83,559 20,950 18,689 18,730% change year-on-year 298.85 12.10 -0.22 -Profit Margin (%) 7.34 2.20 1.99 1.97Operating Profit (£000) 37,748 33,834 30,129 29,055

Employees






12. Company Financials

The following companies, listed in alphabetical order, are taken fromthe ‘myICC’ database.

ICC’s links with Companies House mean that when the latest accounts fora company are made available, they can be incorporated on our databaseand be ready for inclusion in Key Note Market Report Plus’. A short delay occursat Companies House between receipt of documents and their public release.As this delay can be longer, the availability of accounts can sometimes beaffected.

It should be noted that the financial results for certain companies are notrestricted to sales of the products covered by this report.

Turnover(£000)

Pre-TaxProfit(£000) Year End

Company

AB World Foods Ltd 124,631 3,905 12/09/09

RH Amar & Co Ltd 35,525 535 30/09/09

Anchor Seafoods Ltd 94,349 6,751 31/12/09

Baxters Food Group Ltd 123,981 5,031 30/05/09

Del Monte (UK) Ltd 140,050 2,928 01/01/10

Enco Products Ltd 24,891 65 31/12/08

Glenryck Foods Ltd 15,917 -438 30/09/09

Gondola Group Ltd 509,300 -52,400 28/06/09

HJ Heinz Company Ltd 734,400 145,700 29/04/09

Heley International Ltd 20,376 108 31/12/09

HL Foods Ltd 529,881 16,993 31/12/09

International Fish Canners (Scotland)Ltd 12,516 -44 31/03/10

John & Pascalis Ltd 13,156 170 31/12/09

John West Foods Ltd 171,537 35,576 31/03/10

Lovering Foods Ltd 26,403 -4,849 27/03/10

Martin Mathew & Co Ltd 25,426 803 30/09/09

Mediterranean Growers Ltd - 72 30/06/10

Natco Foods Ltd 55,527 794 31/12/09

Nestlé UK Ltd 1,451,200 74,000 31/12/09

Northern Foods PLC 977,000 7,400 03/04/10

Canned Foods Company Financials


Turnover(£000)

Pre-TaxProfit(£000) Year End

Company (cont.)

Petty, Wood & Co Ltd 43,644 1,563 02/04/10

Premier Foods PLC 2,661,000 46,700 31/12/09

Princes Ltd 1,093,217 40,663 31/03/10

Sco-Fro Group Ltd 22,728 352 30/04/10

Simpson Ready Foods Ltd 10,328 146 31/12/09

S&B Herba Foods Ltd 94,914 8,927 31/12/09

Tulip Ltd 1,138,945 83,559 04/10/09

Unilever Bestfoods UK Ltd 142,788 15,530 31/12/09

Wanis Ltd 43,020 478 30/06/09

Westler Foods Ltd 16,364 -31 30/11/09

VA Whitley & Co Ltd 17,786 310 30/11/09

Ye Olde Oak Foods Ltd 40,501 85 31/12/09

Canned Foods Company Financials


13. Further Sources

Associations

The Association of EuropeanProducers of Steel for PackagingAvenue Ariane 5Building ’Integrale’ E34th floorBE-1200 BrusselsBelgiumTelephone: 0032-253 791 51Fax: 0032-253 786 49E-mail: [email protected]://www.apeal.org Canned Food UKPO Box 145Birmingham, B24 8WRTelephone: 0800-243 364E-mail: [email protected]://www.cannedfood.co.uk

The Food Processors AssociationC/o Food and Drink Federation6 Catherine StreetLondon, WC2B 5JJTelephone: 020-7420 7106Fax: 020-7836 0580http://www.fdf.org.uk The Metal PackagingManufacturers AssociationThe StablesTintagel FarmSandhurst RoadWokinghamBerkshire, RG40 3JDTelephone: 01189-788 433http://www.mpma.org.uk

Publications

• Foodmanufacture.co.uk• The GrocerWilliam Reed Business MediaBroadfield ParkCrawley, RH11 9RThttp://www.foodmanufacture.co.uk • The Can and Aerosol NewsImpress Australasia169 Burwood RoadHawthorn Victoria, 3122Australiahttp://www.can-news.com.au

• The Grocery TraderGrandflame LtdUnit 12, Flame House12 King ParkKings LangleyHertfordshire, WD4 8SThttp://grocerytrader.co.uk

Canned Foods Further Sources


General Sources

Dun & BradstreetMarlow InternationalParkwayMarlowBuckinghamshire, SL7 1AJhttp://www.dnb.co.uk Kantar MediaEaling Gateway26-30 Uxbridge RoadEalingLondon, W5 2BPTelephone: 020-8433 4000Fax: 020-8433 4001http://www.kantarmedia.com NEMS Market Research22-23 Manor WayBelasis Hall Technology ParkBillingham, TS23 4HNTelephone: 01642-373 355Fax: 01642-373 350http://www.nemsmr.co.uk

Nielsen Media ResearchAtrium CourtThe RingBracknellBerkshire, RG12 1BZTelephone: 01344-469 100Fax: 01344-469 102E-mail: [email protected]://www.nielsenmedia.co.uk

Government Publications

Department of HealthRichmond House79 WhitehallLondon, SW1A 2NShttp://www.dh.gov.uk Food Standards AgencyAviation House125 KingswayLondon, WC2B 6NHTelephone: 020-7276 8000http://www.food.gov.uk

Government Actuary’s DepartmentFinlaison House15-17 Furnival StreetLondon, EC4A 1ABTelephone: 020-7211 2601E-mail: [email protected]://www.gad.gov.uk



HM Treasury1 Horse Guards RoadLondon, SW1A 2HQTelephone: 020-7270 4558Fax: 020-7270 4861http://www.hm-treasury.gov.uk• Forecasts for the UK Economy —Treasury Independent Average

National Statistics1 Myddelton StreetLondon, EC1R 1UWTelephone: 0845-601 3034Fax: 01633-652 747E-mail: [email protected]://www.statistics.gov.uk

Other Sources

Environmental Protection AgencyAriel Rios Building1200 Pennsylvania Avenue, NWWashington, DC 20460USTelephone: 001-202 272 0167http://www.epa.gov European Metal PackagingAvenue Louise 149/24B-1050 BrusselsBelgiumTelephone: 0032-253 576 51Fax: 0032-253 575 75E-mail: [email protected]://www.empac.eu EurostatGovernment BuildingsCardiff RoadGwent, NP10 8XGTelephone: 01633-813 369E-mail: [email protected]://epp.eurostat.ec.europa.eu GreenBoxDayhttp://www.greenboxday.co.uk

International SeafoodSustainability FoundationPO Box 11110McLean, VA 22102USTelephone: 001-7032 268 101Fax: 001-7032 268 100http://iss-foundation.org National Institute of Economicand Social Research2 Dean Trench StreetSmith SquareLondon, SW1P 3HETelephone: 020-7222 7665Fax: 020-7654 1900http://www.niesr.ac.uk SIG CombiblocBlackthorn WayTyne and WearHoughton-Le-Spring, DH4 6JNTelephone: 01913-853 131Fax: 01913-854 713E-mail: [email protected]://www.sig.biz



TheMeatSite.com5M Enterprises LtdBenchmark House8 Smithy Wood DriveSheffield, S35 1QNhttp://www.themeatsite.com

US Food and Drug Administration10903 New Hampshire AvenueSilver Spring, MD 20993USTelephone: 001-8884 636 332http://www.fda.gov

Key Note Sources

Key Note Ltd

5th FloorHarlequin House7 High StreetTeddingtonRichmond Upon Thames, TW11 8EETelephone: 0845-504 0452Fax: 0845-504 0453E-mail: [email protected]://www.keynote.co.uk

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Key Note MarketFocus Reports£699 each/£999 set of 10 volumes Please contact [email protected] sector-specific individual volumeprices. Top Markets and Market Forecastsadd a further dimension to theKey Note range, providing anin-depth, strategic and global viewof key industries. Compiled usingKey Note Market Reports, MarketReport Plus’ and Market Assessmentspublished in the previous year,Top Markets and Market Forecastsare an indispensable andauthoritative mini business library,providing a one-stop shop for allyour research needs. Other Market Focus reports arecreated in conjunction with specialistauthors, consultancies and industryexperts whose wealth of knowledgeis vital in publishing this type ofreport.



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Key Note UKplc ReportUKplc is an indispensable guide formanagers and for those interestedin gaining a greater insight into thefinancial performance of an averagecompany operating in each of themain industries in the UK. Providingup-to-date information and analysis,the publication will allow the readerto gain a greater level of marketintelligence as well as a goodknowledge of the current stateof the UK industry.



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Understanding TGI Data

TGI tables, produced by Kantar Media, are generally based on one of the following groups:

• Households — a private household consists of either one person living alone or a group ofpeople, usually, but not always, members of one family, who live together and whose foodand other household expenses are managed as one unit.

• Adults — any person aged 15 or over.

• Housewives — a member of a private household who is solely or mainly responsible for thehousehold duties.

Number, Profile, Penetration

Tables used in Key Note reports may give figures for the Number, Profile, and/or Penetration.These terms are explained in the following table.

Canned Foods Understanding TGI Data


TGI data used in Key Note reports are broken down by age, social grade and standard region.

Social Grade

This is normally based on the occupation of the Head of the Household, or if the Head of theHousehold is retired, their former occupation. If this information is not available, social gradeis based on environmental factors such as type of dwelling, amenities in the home, presence ofdomestic help, etc.

Social grade is assessed by the interviewer when collecting the information and is, therefore,based on information given personally and verbally by the respondent. Social grade is checkedby Kantar Media’s coding and editing office.

The following table broadly defines the six social grades used. The relationship between socialgrade and net income of the Head of the Household is a complex one and readers should notethat income is not determinant of social grade.

Social Grade Social StatusHead of Household’sOccupation

A Upper middle class Higher managerial,administrative or professional

B Middle class Intermediate managerial,administrative or professional

C1 Lower middle class Supervisory or clerical andjunior managerial,administrative or professional

C2 Skilled working class Skilled manual workers

D Working class Semi and unskilled workers

E Those at lowest levels ofsubsistence (no other earner)

State pensioners or widows

Standard Region

This is as defined by the Registrar-General.

Canned Foods Understanding TGI Data


Key Note Research

Key Note is a leading supplier of market information, publishing an extensive range ofconsumer, industrial, business-to-business and services titles. With over 25 years’ experience,Key Note represents clear, concise, quality market information.

For all reports, Key Note undertakes various types of research:

Online searching is carried out by product code or free search method, and covers the periodfrom the last edition of the report to the current day.

Trade sources, such as trade associations, trade journals and specific company contacts, areinvaluable to the Key Note research process.

Secondary data are provided by Kantar Media (TGI) and Nielsen Media Research for consumer/demographic information and advertising expenditure, respectively. In addition, various officialpublications published by National Statistics, etc. are used for essential background data andmarket trends.

Interviews are undertaken by Key Note for various reports, either face-to-face or by telephone.This provides qualitative data (‘industry comment’) to enhance the statistics in reports;questionnaires may also be used.

Field research is commissioned for various consumer reports and market reviews, and is carriedout by NEMS Market Research.

Key Note estimates are derived from statistical analysis and trade research carried out byexperienced research analysts. Up-to-date figures are inserted where possible, although therewill be some instances where a realistic estimate cannot be made or external sources requestthat we do not update their figures.

Key Note Editorial, 2011

Canned Foods Key Note Research


The Key Note Range of Reports

Key Note publishes over 180 titles each year, across both the Key Note and Market Assessmentproduct ranges. The total range covers consumer, lifestyle, financial services and industrialsectors.

Title Edition Published

Market Reports and Reports Plus

A

Access Control 11 2010

Accountancy 14 2010

Aerospace 12 2003

Agrochemicals & Fertilisers 3 2002

Air Freight 2 2005

Airlines 21 2010

Airports 14 2010

Animal Feedstuffs 11 2001

Arts & Media Sponsorship 3 2008

Automatic Vending 24 2010

Automotive Services 7 2010

Autoparts 19 2009

B

Baths & Sanitaryware 14 2009

Bearings 2 2007

Betting & Gaming 23 2010

Biscuits & Cakes 16 2009

Book Publishing 19 2007

Bookselling 17 2010

Bread & Bakery Products 24 2009

Breakfast Cereals 14 2009

Breweries & the Beer Market 27 2008

Bricks & Tiles 16 2010

Bridalwear 5 2010

Builders’ Merchants 17 2010

Building Contracting 10 2009

Building Materials 14 2011

Bus & Coach Operators 9 2008

Business Press 14 2009

C

Cable & Satellite TV 10 2004

Camping & Caravanning 13 2002

Canned Foods 18 2011

Carpets & Floorcoverings 16 2009

Catering Equipment 13 2010

Chemical Industry 13 2010

Childrenswear 8 2009

Chilled Foods 15 2009

China & Earthenware 27 2010


Cigarettes & Tobacco 24 2010

Cinemas & Theatres 9 2001

Closed-Circuit Television 12 2010

Clothing Manufacturing 16 2011

Clothing Retailing 7 2009

Commercial Radio 8 2004

Commercial Vehicles 15 2009

Computer Hardware 8 2010

Computer Services 9 2010

Computer Software 7 2008

Confectionery 28 2010

Consumer Internet Usage 4 2000

Consumer Magazines 17 2010

Contraception 4 2009

Contract Catering & FoodserviceManagement 21 2010

Contract Cleaning 21 2010

Cooking Sauces & FoodSeasonings 3 2008

Corporate & PromotionalGiftware 3 2008

Corporate Hospitality 6 2007

Cosmetics & Fragrances 22 2009

Cosmetic Surgery 8 2010

Courier & Express Services 16 2010

D

Dark Spirits & Liqueurs 3 2004

Debt Management (Commercial& Consumer) 6 2010

Defence Equipment 11 2010

Design Consultancies 3 2000

Digital Broadcasting 4 2009

Digital Communications 1 2009

Digital TV 2 2003

Direct Marketing 19 2009

Discount Retailing 7 2009

Disposable Paper Products 13 2009

Document Imaging Systems 1 2007

Domestic Heating 14 2009

Dry Cleaning & Laundry Services 5 2005

Canned Foods The Key Note Range of Reports



E

Electrical Contracting 9 2009

Electrical Wholesale 5 2009

Electricity Industry 6 2009

Electronic ComponentDistribution 12 2002

Electronic ComponentManufacturing 11 2002

Electronic Games 4 2003

Equipment for the Disabled 5 2009

Equipment Leasing 12 2003

Estate Agents 18 2011

Ethnic Foods 16 2010

Exhibitions & Conferences 12 2011

F

Factoring & Invoice Discounting 2 2003

Fast Food & Home DeliveryOutlets 24 2010

The Film Industry 4 2002

Finance Houses 11 2000

Fire Protection Equipment 8 2006

Fish & Fish Products 14 2010

Fitted Kitchens 7 2007

Football Clubs & Finance 4 2009

Footwear 16 2009

Franchising 12 2010

Free-To-Air TV 8 2004

Freight Forwarding 17 2009

Frozen Foods 24 2009

Fruit Juices & Health Drinks 13 2010

Fruit & Vegetables 21 2009

Further & Higher Education 6 2009

G

Garden Equipment 13 2009

Gas Industry 5 2009

Giftware 19 2010

Glassware 15 2009

Greetings Cards Plus 26 2010

H

Hand Luggage & Leather Goods 15 2010

Health Clubs & Leisure Centres 10 2010

Health Foods 22 2003

Heating, Ventilating & AirConditioning 9 2002

Home Furnishings 19 2009

Home Shopping 13 2009

Horticultural Retailing 17 2008

Hotels 24 2009

Housebuilding 19 2009


Household Appliances (BrownGoods) 11 2008

Household Appliances (WhiteGoods) 16 2008

Household Detergents &Cleaners 16 2009

Household Furniture 19 2011

I

Ice Creams & Frozen Desserts 14 2010

Industrial Fasteners 8 2001

Industrial Pumps 5 2000

Industrial Valves 8 2001

Insurance Companies 12 2009

Internet Usage in Business 8 2005

IT Security 9 2009

IT Training 13 2010

J

Jewellery & Watches 26 2011

K

Kitchenware 7 2009

L

Laboratory Equipment 9 2008

Lighting Equipment 14 2002

Lingerie 9 2010

M

Management Consultants 10 2003

Market Forecasts 1 2005

Meat & Meat Products 21 2010

Medical Equipment 17 2009

Metal Recycling 5 2009

Milk & Dairy Products 24 2010

Mobile Phones 7 2010

Mobile Telecommunications 2 2007

N

Natural Products 2 2007

New Media Marketing 3 2002

Newspapers 18 2010

Non-Metal Recycling 3 2010

O

Office Furniture 21 2008

Offshore Oil & Gas Industry 5 2009

Ophthalmic Goods & Services 17 2010

OTC Pharmaceuticals 15 2011

Own Brands 13 2010




P

Packaging (Food & Drink) 6 2010

Packaging (Glass) 13 2008

Packaging (Metals & Aerosols) 12 2003

Packaging (Paper & Board) 14 2008

Packaging (Plastics) 15 2010

Paper & Board Manufacturing 14 2002

Personal Banking 11 2000

Photocopiers & Fax Machines 14 2005

Plant Hire 13 2007

Plastics Processing 10 2003

Poultry 4 2010

Power Tools 5 2007

Premium Lagers, Beers & Ciders 9 2010

Printing 15 2010

Private Healthcare 21 2010

Protective Clothing & Equipment 7 2009

Public Houses 26 2010

R

Rail Travel 7 2008

Ready Meals 11 2009

Recruitment Agencies(Permanent) 11 2011

Recruitment Agencies(Temporary & Contract) 11 2011

Renewable Energy 3 2009

Restaurants 24 2009

Retail Chemists & Drugstores 16 2010

Road Haulage 22 2009

S

Sauces & Spreads 12 2010

Shopfitting 14 2009

Short Break Holidays 4 2001

Slimming Market 8 2000

Small Domestic ElectricalAppliances 12 2010

Snack Foods 20 2010

Spirits & Liqueurs 1 2010

Soft Drinks (Carbonated &Concentrated) 17 2008

Soup Market 3 2009

Sports Clothing & Footwear 12 2009

Sports Equipment 16 2011

Sports Sponsorship 7 2009

Stationery (Personal & Office) 25 2010


T

Take Home Trade 17 2008

Telecommunications 21 2007

Timber & Joinery 19 2008

Toiletries 23 2010

Tourist Attractions 5 2001

Toys & Games 24 2010

Training 19 2011

Travel Agents & Overseas TourOperators 23 2010

Tyre Industry 4 2008

V

Vehicle Security 9 2010

Videoconferencing 4 2007

Video & DVD Retail & Hire 8 2005

W

Wallcoverings & Ceramic Tiles 18 2010

Waste Management 10 2010

Water Industry 5 2010

Windows & Doors 20 2010

Wine 20 2009

White Spirits 1 2005

Market ReviewsCatering Market 21 2009

Clothing & Footwear Industry 13 2010

UK Computer Market 11 2004

Construction Industry 11 2009

Contracted-Out Services 3 2007

Defence Industry 7 2003

Distribution Industry 10 2009

DIY & Home ImprovementsIndustry 11 2009

Drinks Market 18 2008

Energy Industry 8 2010

Film Market 2 2009

Food Industry 19 2009

Healthcare Market 10 2005

Insurance Industry 10 2009

The Legal Services Market 1 2005

Leisure & Recreation Market 15 2005

Leisure in the Home 3 2010

Leisure Outside the Home 3 2010

Local Government Services 3 2010

Mechanical Handling 1 2001

Motor Industry 12 2008

Music Industry 2 2010

Office Equipment Industry 9 2010

Packaging (Food & Drink)Industry 1 2003




Passenger Travel in the UK 5 2007

Pharmaceuticals Industry 6 2008

Process Plant Industry 1 2000

Publishing Industry 13 2010

Railway Industry 2 2006

Security Industry 13 2010

Sports Market 13 2010

Travel & Tourism Market 17 2010

UK Internet Market 1 2009

Market Assessment Reports

A

ABC1 Consumer 2010

Activity Holidays 2009

Advertising Agencies 2007

All-Inclusive Holidays 2000

Alternative Healthcare 2010

Audio-Visual Retailing 2000

B

Baby Foods 2006

Baby Products 2010

Baths and Showers 2000

Beds, Bedrooms and UpholsteredFurniture 2000

Betting and Gaming 2002

Book Retailing on the Internet 2010

Bottled Water 2003

Bridalwear 2002

Business Postal Services 2008

B2B Marketing 2008

Business Travel Market 2008

C

Cable and Satellite Services 2002

Charity Funding 2005

Childcare 2008

Children’s Publishing 2010

Clothing Retailers 2000

Coffee & Sandwich Shops 2009

Commercial Dynamics inFinancial Services 2010

Commercial Insurance for SmallBusinesses 2009

Condiments and Sauces 2008

Consumer Credit & Debt 2010

Contact Centres 2010

Contraception 2002

Cooking & Eating 2009

Cross-Border Shopping 2000

Cruise Market 2008


Customer Loyalty in FinancialServices 2000

Customer Magazines & ContractPublishing 2009

Customer RelationshipManagement 2008

Customer Services in FinancialOrganisations 2010

C2DE Consumer 2010

D

Diet Foods 2009

DINKY Market 2007

Direct Insurance 2010

Direct Mortgages 2010

Domestic Lighting and ElectricalProducts 2000

Domestic Telecommunications 2006

E

E-Commerce: The InternetGrocery Market 2009

E-Commerce: The InternetLeisure & Entertainment Market 2008

Electronic Banking 2008

EMU — The Impact on the UKFinancial Services Industry 2003

E-Recruitment 2006

E-Shopping 2002

Estate Agents and Services 2010

Ethnic Foods 2002

European Electricity Industry 2007

European Gas Industry 2007

European Long-Term Insurance 2008

European Oil & Gas Industry 2007

European Renewable 2008

Energy Industry 2008

European Short Breaks 2008

European Telecommunications 2010

European Tourist Attractions 2009

European Trends in FoodShopping 2009

European Water Industry 2007

Extended Financial Families 2005




F

Financial Services Marketing toABs 2006

Financial Services Marketing toABC1s 2000

Financial Services Marketing toBCs 2009

Financial Services Marketing toC1C2DEs 2006

Financial Services Marketing toDEs 2009

Financial Services Marketing toOver 60s 2004

Financial Services Marketing tothe Affluent 2009

Financial Services Marketing tothe Retired and Elderly 2007

Financial Services Marketing toStart-Up Businesses and the Self-Employed 2010

Financial Services Organisationson the Internet 2009

The Fish Industry 2001

Forecourt Retailing 2010

Functional Foods 2010

Funding in Higher Education 2002

G

General Insurance 2010

Generation Y 2007

Global Waste Management 2007

Green and Ethical Consumer 2008

Grey Consumer 2009

H

Healthy Eating 2008

Holiday Purchasing Patterns 2009

Home Entertainment 2008

Hot Beverages 2009

I

In-Car Entertainment 2000

Independent Financial Advisers 2008

Individual Savings Accounts 2005

Insurance Prospects 2008

Internet Advertising 2009

Internet Service Providers 2005

Issues and Challenges in the UKLife Assurance Market 2002

Issues in Higher EducationFunding 2006

IT Recruitment 2010


L

Lifestyle Magazines 2008

Low-Fat & Reduced-Sugar Foods 2008

The Luggage Market 2000

M

Marketing to Children 4-11 2003

Marketing in the Digital Age 2009

Media Marketing 2010

Medical & Health Insurance 2007

Men and Women’s Buying Habits 2008

Men’s Toiletries & Fragrances 2008

Millennium Youth 2002

Mobile Marketing 2009

Motor Finance 2011

N

The Newspaper Industry 2005

Non-Food Sales in Supermarkets 2010

Nutraceuticals 2008

O

Off-Trade Spirits 2004

Opticians & Optical Goods 2010

Organic Baby & Toddler Care 2007

Organic Food & Drink 2010

OTC Pharmaceuticals 2000

Over-40s Consumer 2005

Over-50s Consumer 2009

P

Pay TV 2004

Pension Extenders 2002

Pensions 2009

Personal Banking 2003

Personal Lines Insurance 2010

Personal Loans 2008

Pet Market 2009

Planning for Retirement 2008

Plastic Cards in Europe 2005

Plus-Size Fashion 2009

Private Sector Opportunities inEducation 2001

Public Relations Industry 2007

Public Transport 2001

R

The Railway Industry 2004

Ready Meals 2001

Recycling and the Environment 2000

Retail Credit 2000

Retail Development 2001

Rural Economy 2009




S

Savings & Investments 2010

Saving Trends in the Eurozone 2002

Singles Market 2009

Shopping Centres 2008

Short Breaks 2004

Slimming Market 2009

Small Businesses & Banks 2010

Small Office Home OfficeConsumer 2001

Small Office Home OfficeProducts 2001

The Soup Market 2001

Sponsorship 2000

Supermarket Own Label 2009

Supermarket Services 2007

Sweet & Salty Snacks 2010

T

Teenage Fashionwear 2008

Teenage & Pre-Teen Magazines 2009

Teleworking 2003

Trends in Food Shopping 2008

Trends in Leisure Activities 2007

Tweenagers 2005


U

Utilities 2007

V

Vegetarian Foods 2009

Vehicle Breakdown Services 2010

Vitamins, Minerals &Supplements 2009

W

White Goods 2000

Women Over 45 2007

Working Women 2009


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1988.

Published by Key Note Ltd, 5th Floor, Harlequin House, 7 High Street, Teddington, Richmond Upon Thames,TW11 8EE. Telephone: 0845-504 0452

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