ireland fresh - worldwide | nielsen · · 2015-01-174 ireland fresh report ... fresh fruit &...

I R E L A N D F R E S HR E P O R T

2 IRELAND FRESH REPORT

IN IRELAND FRESH FOODS COMPRISE >56% OF TOTAL GROCERY SPENDING

FRESH FOODS:• Contribute >56 percent of total grocery

spending in Multiples• Help drive strong retailer equity• Are high-traffic volume boosters• Good value for money is a key demand

of the Irish consumer

3IRELAND FRESH REPORT Copyright © 2013 The Nielsen Company

Fresh foods currently contribute around 56% of total Grocery

(including Personal Care) value sales on latest MAT in Nielsen TSR

Multiples sales data (ROI)3. In terms of year on year growth,

total Fresh Foods* performance is flat (-0.8% year on year) in line

with total Food, Grocery and Personal Care performance (-0.5%

year on year). The same trend is reflected in our latest Nielsen

ShopperTrends survey2, where Irish shoppers claim fresh foods to

be around 53 percent of total Grocery and Personal Care spend on

average.

MEAT & POULTRY & FISH

PRODUCE

CHILLED CABINET

BAKERY

DELI

FRESH SHOPPERS ARE VALUABLE TO IRISH SUPERMARKETS

56% 21%

21%

38%

15%

5%

FRESH FOODS CONTRIBUTION TO TOTAL FOOD, DRINK & PERSONAL CARE SALES IN MULTIPLES LATEST MAT

Source: Nielsen latest TSR Multiples read: latest 12 months to we 14 April 2013

% Share of Fresh Expenditure


Financial struggles and budget pressures are still driving Irish

consumers to make savings on the household shop, however recent

findings from the Nielsen Global Survey of Fresh Foods¹ revealed

67% of Irish respondents said they have at least 3 servings a day of

fresh fruit & vegetables, highlighting that Fresh is still a key critical

component of the weekly shop.

FRESH FOOD REPRESENTS +50% OF FOOD, GROCERY AND PERSONAL CARE EXPENSES ACROSS EUROPE

Average claimed monthly spending on food, grocery & personal care vs. fresh food in 2012

Europe Average 333 Euro

TOTAL EXPENDITURE (EURO) ALL CHANNELS

FRESH FOOD (EURO)

AVERAGE % FRESH FOOD ON TOTAL FOOD, GROCERY & PERSONAL CARE53%

593

527 508

430 398 392

370 350 344 343 310

293 287 286 273 271 269 232

199 168 155

Norway

Irelan

d

Switzerlan

d

Denmark

Finland

Belgium

Italy

Sweden Spain

France

Austria

United Kingdom

Bulgaria

The Neth

erlands

Portugal

Slovakia

Germany

Czech

Poland

Romania

Hungary

33%

53% 48%

48%

42% 49% 51%

46% 50% 41% 46%

40% 46% 46% 44% 47% 43% 44% 45% 63% 43%

SAY THEY CONSUME AT LEAST 3 SERVINGS OF FRUIT & VEG A DAY

Source: Nielsen Global Survey of Fresh Foods - Q3 2012

Source: Latest Nielsen ShopperTrends (2012)

FRESH - ARE WE HAVING OUR 5 SERVINGS A DAY?

Q. HOW MANY SERVINGS OF FRUIT & VEGETABLES DO YOU CONSUME ON

AVERAGE PER DAY? (IRELAND)

67%


FRESH IMPORTANT THOUGH NOT IMMUNE TO PRICE PRESSURES OR QUALITY ISSUESPrice fluctuations for fresh products are driven by supply and

demand, adverse weather conditions, seasonality and industry issues

(for example the recent horse meat crisis), and all can produce

challenges in Fresh for the retailers. Understanding consumer

demand and what they actually want, is a critical link to building

successful strategies to improve both loyalty and profit margins.

The Irish consumer has become extremely price conscious in recent

times. More than 60% compare prices when out shopping for

groceries¹. In addition, half (49%) of Irish respondents in the latest

Nielsen ShopperTrends Survey² said that rising food prices affect their

purchasing of fresh fruit and veg, with meat and poultry categories

impacted further (63%) and Fish & Seafood (65%).

In a measure of retailer equity for Ireland, the availability of high

quality fresh foods was ranked among the top 10 drivers out of

the 25 criteria measured. Interestingly ‘Everything I need in One

Shop’ at No 4 suggests the consumer prefers not to have to shop

around. However, as the impact of economic pressures continue,

and shoppers do continue to shop around, it is critically important

to understand where consumers go for a lower priced option and

where they are willing to trade up because they perceive the value to

be worth it. Fresh food is a high-traffic builder, and if you want to keep

the consumer in the one shop, it is essential to have strong ranges

and vibrant arrays of high quality products, with knowledgeable staff

on hand.


IRELAND: TOP 10 RETAILER STORE EQUITY DRIVERS

PROVIDE ENJOYABLE SHOPPER EXPERIENCE

A PLACE WHERE IT’S EASY TO QUICKLY FIND

ALWAYS HAVE WHAT I WANT IN STOCK

EVERY THING I NEED IN ONE SHOP

PLEASANT STORE ENVIRONMENT

STAFF PROVIDE EXCELLENT CUSTOMER SERVICE

HAS HIGH QUALITY PREMIUM BRANDS

HAS A WIDER VARIETY OF PRODUCTS

WELL PRESENTED PRODUCT DISPLAYS

HIGH QUALITY FRESH FOOD

1

2

3

4

5

6

7

8

9

10

Source: Latest Nielsen ShopperTrends (2012) - Supermarkets


FRESH FOOD IS A HIGH-TRAFFIC BUILDER FOR SUPERMARKETSIn Ireland, we shop for Fresh foods 2.5 times per week on average, with

shopping trips most frequent for fruits and vegetables (3.2 times per

week) and least frequent for fish and seafood (1.6 times per week).

When it comes to where we shop for fresh food, the main supermarket

channel reigns supreme in Ireland. Our Nielsen ShopperTrends reports

consumers in general shop up to 9.4 times a month in Supermarkets

and the Fresh survey indicates that 70 percent on average of online

respondents say they shop at Supermarkets in particular for Fresh

Foods2.

While lowest at 62% for Meat & Poultry, this rises to 72% for Fresh

Produce, 75% for Dairy and 78% for Delicatessen products. While open

markets and speciality shops for fruits and vegetables, and bakeries for

breads are important destinations for these products throughout a lot

of countries in Europe, this is not so in Ireland, and thus Supermarkets

win out here. However, in terms of Meat & Poultry, 23% say they buy at

a butcher (a figure possibly higher since the horse meat crisis in 2013).

MEAT & POULTRY

FISH & SEAFOOD

SUPERMARKET

SUPERMARKET

SUPERMARKET

HYPERMARKET

HYPERMARKET

HYPERMARKET

BUTCHER

FISH SHOP

FRUIT & VEG SHOP

CONVENIENCE STORE / OTHER


IRELAND - WHERE WE SHOP FRESH FOODS

62%

64%

72%

23%

17%

9%

12%

16%

16%

3%

3%

3%

FRUITS & VEGETABLES



SUPERMARKET

SUPERMARKET

SUPERMARKET

HYPERMARKET

HYPERMARKET

HYPERMARKET

BAKERY




DAIRY

75%

70%

78%

22%

22%

18%

3%

3%

5%

4%

BREAD & BAKERY

DELICATESSEN



TOP 3 RETAILER ATTRIBUTES WHEN SELECTING WHERE TO SHOP FOR FRESH FOODSWhile ‘good value for money’ is generally the most important criteria

for buying Fresh among Europeans, it is Freshness in Asia-Pacific,

Latin America and Middle East/Africa (with slight variations from

country to country reflective of the country and it’s culture). In GB,

interestingly Convenience is of paramount important for Fresh Foods,

while the French insist on high quality for their bread, and the Irish

demand good value and high quality for their meat & poultry.

With the recent horse meat scare in Ireland, this demand for high

quality is likely to be even more pronounced. Long term frozen burger

sales are down (-47% year on year) in latest Nielsen TSR Multiples

data on the current MAT³ and declines have spread to Frozen Meat

Ready Meals (-23% year on year). The Association of Craft Butchers

in Ireland also recently reported a 20% increase in shoppers picking

their local butchers over supermarkets since the horsemeat scandal

broke⁴.


EUROPE FRANCE GB IRELAND

IRELAND – WHAT INFLUENCES ON WHERE YOU BUY?

MEAT/POULTRY

FISH/SEAFOOD

FRUITS/VEGETABLES

DAIRY

BREAD/BAKERY

DELICATESSEN

Good value

Good value

Good Value

Good Value

Fresh Selection

Good Value

Fresh Selection

Convenience

Fresh Selection

Convenience

Convenience

Wide Variety

Fresh Selection

Convenience

Good Value

Convenience

Wide Variety

Convenience

Convenience

High Quality

Convenience

High Quality

Convenience

Wide Variety

Convenience

Local Produce

Good Value

Convenience

Convenience

Wide Variety

Good Value

Wide Variety

Good Value

Fresh Selection

Good Value

Wide Variety

Good Value

Fresh Selection

Good Value

Fresh Selection

Good Value

Wide Variety

High Quality

Fresh Selection

Fresh Selection

High Quality

Fresh Selection

Convenience

Convenience

Fresh Selection

Convenience

Fresh Selection

Convenience

Wide Variety

Convenience

Convenience

Convenience

Convenience

Convenience

Convenience

Good value

Good value

Good Value

Good Value

Good Value

Good value

Good value

Good value

Good Value

Good value

High Quality

Good value



IRELAND – WHAT INFLUENCES ON WHERE YOU BUY? THE IMPORTANCE OF UNDERSTANDING HOW CONSUMERS SHOP FRESHFresh foods are integral to the success of the retailer and high-traffic

volume boosters, thus expertise on shopper expectations is the key

to unlock the potential. It is imperative to apply a style of category

management based on the knowledge of the Irish consumer and to better

understand how different consumer groups purchase fresh differently; at

which stores, at which price points etc.

Improving the level of servicing in fresh store departments with friendly

staff in key areas such as the meat, deli counter, bakery, produce

departments, may gain customer respect. Customers appreciate the extra

attention and efficient service. In terms of meat and poultry in particular,

it is of utmost importance to ensure high quality standards and effectively

communicate the source of produce.

Consumers buy fresh products with their ‘eyes’ and thus display and

presentation are of critical importance. Freshness, quality, good value

for money and importantly, the human connection are important factors

that keep customers coming back for more. As a retailer, map shopper

expectancy clusters, eating habits and supply patterns of fresh produce

and find the balance. Applying some of these same characteristics to other

product categories and to other parts

of the store can bolster profits.

“THE BENEFITS OF USING CATEGORY MANAGEMENT TECHNIQUES AND PROCESSES ARE MORE CRITICAL THAN EVER FOR THE FRESH FOOD RETAILER GIVEN THE ECONOMIC ENVIRONMENT WE FIND OURSELVES IN.

NOT ONLY DOES IT GENERATE SHOPPER ENTHUSIASM FOR THE CATEGORY BY CREATING AN EASY TO NAVIGATE AND VISUALLY APPEALING SECTION, BUT IT ALSO SERVES A CRITICAL FUNCTIONAL PURPOSE BY MAKING THE BEST USE OF THE RETAIL SPACE AVAILABLE IN A MANNER THAT KEEPS PRODUCT WASTE TO A MINIMUM”.

MARK WALLEDGE, HEAD OF MERCHANDISING SERVICES, NIELSEN


For any queries on the article please contact

Karen Mooney [email protected]

For any Merchandising Services queries please contact

Mark Walledge [email protected]

Sources for article

¹ Source: Nielsen Global Survey of Fresh Foods, Q3 2012 - The survey

revealed how much fresh foods we consume, where we shop for

fresh products and why we shop these preferred retail channels.

² Nielsen ShopperTrends Survey 2012

³ Nielsen TSR Multiples data to w/e 14th April 2013 –

(Tesco, Supervalu, Superquinn, M&S, Eurospar).

*Fresh Foods is defined as: Meat, Poultry, Fish, Bakery, Dairy,

Deli Counter and Produce

**Total Food & Drink & Personal Care is defined as: Grocery,

Frozen, Meat, Poultry, Fish, total Bakery, total Chilled Cabinet,

Deli Counter, Produce, Alcohol and Health & Beauty

⁴ Irish Examiner 1st March 2013

ABOUT THE NIELSEN GLOBAL SURVEYThe Nielsen Global Survey of Fresh Foods was conducted between

August 10 and September 7, 2012 and polled more than 29,000

online consumers in 58 countries throughout Asia-Pacific, Europe,

Latin America, the Middle East, Africa and North America. The

sample has quotas based on age and sex for each country based on

their Internet users and is weighted to be representative of Internet

consumers and has a maximum margin of error of ±0.6%. This

Nielsen survey is based on the behaviour of respondents with online

access only. Internet penetration rates vary by country. Nielsen uses

a minimum reporting standard of 60 percent Internet penetration

or 10M online population for survey inclusion. The Nielsen Global

Survey, which includes the Global Consumer Confidence Index, was

established in 2005.

IRELAND FRESH REPORT

ABOUT THE NIELSEN SHOPPER TRENDS SURVEYThe Nielsen Shopper Trends Survey is an annual global study covering

54 markets with a total sample size of 87,000 respondents. The survey

is conducted online or with face-to-face in home interviews depending

on country and provides a comprehensive overview of fast-moving

consumer goods retail environment trends, banner equity tracking

and in-depth analysis of shopping patterns across markets and trade

sectors, which includes modern and traditional trade and personal

care stores.

ABOUT NIELSEN

Nielsen Holdings N.V. (NYSE: NLSN) is a global information and

measurement company with leading market positions in marketing

and consumer information, television and other media measurement,

online intelligence, mobile measurement, trade shows and related

properties. Nielsen has a presence in approximately 100 countries,

with headquarters in New York, USA and Diemen, the Netherlands.

For more information, visit www.nielsen.com.

Copyright © 2013 The Nielsen Company. All rights reserved. Nielsen

and the Nielsen logo are trademarks or registered trademarks of

CZT/ACN Trademarks, L.L.C. Other product and service names are

trademarks or registered trademarks of their respective companies.

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ireland fresh - worldwide | nielsen · · 2015-01-174 ireland fresh report ... fresh fruit &...

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