NIELSEN NAMES TOP BRANDS

HOMEGROWNCAT LOVERS JOIN FORCES TO RECYCLE

ENVIRONMENT

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Issue 76 17.02.10GROWTH YEAR FOR CAN AND AEROSOL STAPLES

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The Australian grocery industry showed strong growth in 2009 for many can and aerosol staples, according to data produced as part of Retail World’s 2009 Annual Report.*

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A ‘back-to-basics’ shopping mentality translated into strong growth in many canned food and aerosol market segments, while growth in canned vegetables pointed to more consumers saving their money by cooking simpler meals from scratch at home.

In the packaged vegetable category, sales of wet seed beans increased by an impressive 17.2 per cent to $45.3 million, growing six per cent in volume. Simplot’s Edgell brand led the market with 47.8 per cent of the overall segment value and 39.7 per cent volume share.

Similarly, corn experienced growth of 11 per cent in value to $51.7 million and

had 1.7 per cent volume growth. Edgell led the segment with 65.3 per cent value share.

The beetroot segment, where the product sells mostly in cans, recorded growth of 4.1 per cent in value to $46.4 million, but lost 2.4 per cent in volume.

Golden Circle still dominates that market with 56.3 per cent of overall segment value and just under half of the segment’s volume.

The total canned fish category grew strongly by 7.2 per cent in value and is now worth more than $565.5 million, with the $386.9 million canned tuna segment making up the majority of the value.

Canned tuna grew 9.4 per cent in value and 4.4 per cent in volume, with Simplot and HJ Heinz the market leaders. Private label now enjoys a 19.1 per cent value and 31.6 per cent volume share in this market.

The baked beans and canned spaghetti category increased by 8.6 per cent to $175.5 million, with a decrease in volume of 1.4 per cent. Baked beans held 63 per cent value market share ahead of spaghetti. The baked beans segment increased by 11.7 per cent to $110.6 million, while spaghetti grew by 3.7 per cent in value to $64.8 million, with a volume decrease of 5.5 per cent. Heinz led the

way from SPC Ardmona in both sub-segments.

The category “other canned meat” enjoyed growth of seven per cent in value to be worth $4.6 million.

The canned soup category grew in 2009, increasing in value by 1.3 per cent to $202.4 million and reducing in volume by 3.1 per cent.

Campbell’s and HJ Heinz continue to hold almost half of the market.

In the health and beauty category, aerosols still led the way in the deodorant segment, which grew 11.5 per cent in value to $246.1 million. Aerosols comfortably lead the segment with 57.1 per cent value and 51.8 per cent volume. Unilever was

the market leader, its Rexona and Dove brands filling the top two slots.

Consumers are now spending more of their grocery bill on private label products than ever before, according to Retail World.

Sales for private label now account for almost one quarter (22.5 per cent) of all grocery sales. The average Aussie household now spends around $178 on these products every quarter – an increase of 4.3 per cent compared to the same quarter last year. (Homescan: QTR to October 2009).

* CAN-News has listed data from cat-egories and segments where can and aerosol products have either total or the majority of market share.

Source: Retail World – Annual Report, December 2009

GROWTH YEAR FOR CAN AND AEROSOL STAPLES cont.

Issue 76 FEBRuARY 2010 02

can & aerosol news

Well-loved brands of canned food featured prominently in the Nielsen Top 100 Brands report, released by The Nielsen Company.

Canned food brands Golden Circle, John West and Milo all featured in the top 20. Seventy-eight of the top 100 brands are used on food products while five are pet food brands.

“Umbrella” brands span several product categories – for example Heinz, which includes soup, baked beans, spaghetti and frozen vegetables – or have significant sub-brands in one category.

Impress’ customer Nestlé came second among umbrella brands, with Golden Circle

from manufacturer HJ Heinz coming ninth. Cadbury, Coca-Cola and Bega took out the top three positions in the Nielsen Top 100 Brands report.

Nielsen Consumer Pacific managing director Chris Percy said: “Recognising that consumers own and determine the performance and strength of a brand, we felt it was appropriate in 2009 to move from a purely sales-based measure of brand performance to a Nielsen Brand Score – a unique measurement combining the presence of the brand in the home, average annual spend on the brand, and consumer engagement or attitude toward the brand.

“Cadbury and Coca-Cola have secured the top positions in the report as they scored very highly in all of the key consumer dimensions,” Chris Percy said.

“Their heritage status, among other factors, has contributed to consumers’ strong emotional and

generational connection with the brands. They are present in households all across Australia, and in comparison to the other super-brands in the report, consumers spend relatively more on these products.”

The Nielsen Top 100 Brands Report also overlays

total estimated investment in media advertising for each of the brands.

Interestingly, even in what was a very tough year for the economy, the research shows that the majority of manufacturers continued to support their brands with advertising.

03Issue 76 FEBRuARY 2010

NIELSEN NAMES TOP BRANDShomegrown

CAT LOVERS JOIN FORCES TO RECYCLEAmericans recycle less than 20 per cent of aluminum pet food cans each year compared to 54 per cent of aluminum cans, according to recycling industry sources in the US.

As a result, pet food brands Friskies and Fancy Feast have joined forces to educate cat owners about the recyclability of cat food cans in an effort to increase the number recycled. The brands have created a campaign called “Together We Can”.

“It’s important for people to be aware of just how many cat food cans are currently sitting in landfills,” said Nestlé Purina director of environmental sustainability Mark Brodeur.

A recent Purina survey found that just over half of cat owners recycle their cat food cans all the time, despite the fact the cans are made of recyclable aluminum. In fact, more cat owners recycle newspapers, soda cans, canned food items and junk mail than they do their cat food cans.

In early February, the campaign planned to bring together up to 100 artists to create original artworks from cat food can parts. It invited cat lovers nationwide to turn trash into treasures by creating their own “cat can art” from Friskies and Fancy Feast aluminum cat food can parts. Up to 100 pieces of the artwork will be displayed

at a New York City gallery.

Cat owners can also visit a site called togetherwecanrecycle.com from 1 March – 30 May and pledge to recycle their aluminum pet food cans.

For every [US] pledge received during this period, Nestlé Purina Pet Care Company will donate one dollar to Keep America Beautiful (up to $100,000). Source: www.prnewswire.com

can & aerosol news 04Issue 76 FEBRuARY 2010

environment

MURRAY GOULBURN ‘VERY INTERESTED’Australian dairy co-op Murray Goulburn is weighing up the company’s next step in the takeover battle for rival firm Warrnambool Cheese and Butter Factory (WCB) but has repeated its interest in the business, Australian Food News has reported.

Reports in Australia have claimed that Murray Goulburn plans to make another offer for WCB in the coming weeks after seeing its initial bid dismissed.

A spokesperson for Murray Goulburn emphasised that the business remains ‘very interested’ in WCB and wants to hold talks with the company.

“Murray Goulburn is assessing what its next step might be,” the spokesperson said. “We are seeking engagement from the WCB Board so that we can work together on merging the two companies.”Source: www.ausfoodnews.com.au

can & aerosol newsNEWS

China is set to overtake the US for the first time as the largest grocery market in the world by 2014. Food and grocery expert IGD forecasts that the Chinese grocery market will be worth €761 billion, outstripping the US, which is set to be worth €745 billion in four years’ time.Reasons for this include:

• The US was significantly more affected by the recession than China

• IMF predicts that the Chinese market could grow nearly three times faster than the US over the next four years

• Investment and consumer spend has increased in China and private sector

demand has been driven by the government’s stimulus package.

Between 2010 and 2014 China’s population growth rate is expected to be double that of the US. The findings come in IGD’s latest report for 2010 that includes predictions of the top 10 grocery markets by value in 2014.

Other BRIC (Brazil, Russia, India, China) markets are set to grow in size. India will become the third largest food and grocery market in four years’ time, while Russia and Brazil will rank fifth and sixth respectively. IGD also predicts that Indonesia will enter the top 10 list for the first time.

IGD chief executive Joanne Denney-Finch comments: “Chinese population growth and economic prosperity are contributing to the rise of China as an important grocery market on the world stage. The US and key European markets still offer an important source of growth for food and grocery businesses, but it is becoming harder to ignore the BRIC countries.

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CHINA GROCERY MARKET WILL ROCKET

05

world news

“Many retailers and manufacturers are already leading the way, building a strong presence in China and other emerging markets. Those who have not yet invested in these markets should start planning ahead now because the pace of growth for emerging markets will continue to outstrip that of the developed world.” Source: www.igd.com

EURO INSIGHTSThe Association of European Producers of Steel for Packaging (APEAL) has launched a new look for Steel for Packaging in Europe. Its new publication, “Steel for Packaging Update” brings together the most important legislative issues facing the industry today, together with industry insights and the latest developments impacting packaging from across the EU.

The publication is available as online e-news, as a PDF and in print, and in English, French, German and Spanish. For more information visit www.apeal.org/newsletter.

can & aerosol newsNEWS

Issue 76 FEBRuARY 2010