Worldwide Business Information and Market Reports

www.the-list.co.uk and www.worldmarketresearch.com

Telephone +44 1404 891528 Fax +44 1404 891717 Email reportfinder @ tiscali.co.uk

Just want contact details for one of the companies in this report? Please don't ring us - try www.companieshouse.gov.uk, www.thomweb.co.uk or www.askalix.com

Join the ReportFinder mailing list and be told of new reports

Email:

MP15108

MAPS CHILLED AND FROZEN DESSERTS JULY 1998

Overview

Table of Contents

Executive Summary

Back to Other Food Products Index and Shopping Cart

Back to Dairy and Oils Index and Shopping Cart

Back To REPORTFINDER home page and Search Engine

Table of Contents

Executive Summary

Back to Other Food Index and Shopping Cart

Back To REPORTFINDER home page and Search Engine

TABLE OF CONTENTS

Not available yet for this report - please call

Back to Top

EXECUTIVE SUMMARY

The chilled and frozen desserts market as defined by this report includes yoghurts, traditional dairy desserts such as mousse and trifle, fromage frais and frozen desserts such as gateaux, cheesecakes and ‘hot’ desserts such as strudel. All sectors continue to be characterised by a high rate of product innovation in an attempt by suppliers to respond to the multitude of social and lifestyle trends.

Factors such as the growing number of single-person households, working women, more informal eating occasions and the cult of the individual have increased the demand for products offering convenience, but indulgence and luxury at the same time. Research has shown that those snacking between meals and who usually eat in front of the TV for example, are the most likely purchasers of yoghurts and other chilled desserts, particularly the more indulgent product lines.

Consumers are clearly preoccupied with health, even when it comes to indulgent products such as traditional desserts. They have come to expect good quality taste combined with a light product (in terms of fat content). Manufacturers have increased the rate of new product launches of diethealth products, resulting in substantial sales growth of these products - sales of low fat varieties of traditional dairy desserts more than doubled in 1997. Targeting children has been another important area of focus, with sales of children’s chilled dessert products increasing at a greater rate than the chilled desserts market as a whole. Other market dynamics have centred around extending usage occasions and de-seasonalising the market, especially in the frozen desserts sector which has 37 percent of its annual sales revenue in the 16 weeks surrounding Christmas.

The UK retail market for chilled and frozen desserts amounted to £1,416m in 1997. This represents a healthy 28.1 percent increase in value compared with 1993. Chilled desserts are by far the largest sector, accounting for 73 percent of sales value in 1997. This sector has also experienced a higher rate of sales growth because of the increase in sales of traditional dairy desserts and growing importance of premium products, particularly in the yoghurt sector. Yoghurt continues to be the backbone of the chilled desserts market accounting for 59 percent of sales value in 1997.

The introduction of premium products and the split pot format which carry a premium price, have been the main reasons behind value growth of yoghurts. Increased polarisation has occurred between luxury and products such as low fattraditional fruit and set yoghurts.

Traditional dairy desserts have been the most buoyant sector of chilled desserts, increasing by 74 percent in value during the period 1993-97 compared to 42 percent for fromage frais and yoghurts 16 percent. Significant growth has occurred in nearly all product segments. Non-chocolate varieties are gradually gaining share, although for the present chocolate-based desserts remain the largest segment by far.

The fromage frais sector has been heavily orientated towards children, although there has been increased emphasis on targeting adults. There is a fear that the children’s segment will be over-catered for to the detriment of a significant adult market. Adults are after all, more adventurous than children in their tastes. Low fat and very low fat products represent an increasing proportion of sales.

The desire for indulgence is also reflected in growing sales of frozen desserts, although even here, low-fat products have gained more share. Gateaux lead the market with a 28 percent value share, whilst hot desserts have the largest share in terms of volume with a 30 percent share. The scope of products included in this sector also extends to dessert components such as frozen fruit, sweet pastry and toppings. Individual frozen desserts have experienced greatest growth, with a 50 percent increase in sales value between 1995 and 1997 and a 44 percent increase in volume during the same period. Significant increases also occurred for Pavlova and dessert components. Cakes and sponges by contrast, experienced a significant decline in both value and volume terms, declining by almost a third. Gateaux experienced a slight decline.

The incidence of purchase amongst housewives has increased significantly for most of the individual dessert products under review compared with 1996 when Market Assessment last looked at this market. A high rate of product innovation, combined with positive health attributes of certain products such as very low fat and bio yoghurts, pampering to the needs of children through character merchandising and fill-me-ups, versatility as a dessert or snack in their own right or as a dessert versus a cooking ingredient (eg plain yoghurt), have all contributed to increased incidence of purchase. Those with families are often amongst the most likely purchasers, with a bias towards middle and upper income groups for most types of yoghurt and fromage frais and lower income groups for chilled traditional dairy desserts and most types of frozen desserts. Males are significantly more likely than females to be regular purchasers of frozen desserts such as gateaux, tarts, pies and flans.

Retailer own labels dominate the traditional dairy desserts segment, with a 60 percent value share in 1997, up marginally from the previous year and led by Sainsbury’s own label on 15.3 percent of sales. Manufacturers such as Müller and Eden Vale who have traditionally focused more heavily on yoghurts, have become increasingly involved in the traditional dairy desserts sector, launching their own brands. St Ivel has also produced chocolate confectionery branded desserts under licence from Cadbury’s. Retailer own labels are far less important in fromage frais, with a 28 percent value share in 1997 due to the dominance of brands such as Yoplait Dairy Crest’s Petits Filous brand.

In the yoghurt sector, the major brands have been investing heavily in new launches of competitively priced premium products, thereby squeezing the share of retailer own labels which in 1997 decreased to 38.1 percent compared to 42.6 percent in 1996, with Müller increasing its share and market leadership from 24 percent to 26.6 percent. A number of smaller manufacturers also supply the chilled and frozen desserts markets, many of whom are profiled in the report.

In the frozen desserts sector, retailer own labels accounted for 47 percent of sales in 1997, representing no change on the previous year. They are more dominant within the frozen ‘hot’ desserts segment where they had a 58.1 percent share in 1997. Kitchens of Sara Lee is the most important brand in the sector, with an overall share of 20 percent. RHM Frozen Foods has increased its presence as a result of being licensed to manufacture frozen desserts under the Mr Kipling and Cadbury’s brands. Hibernia Foods and Coppenrath & Wiese are amongst the other suppliers. Tesco is the leading own label brand with a 13.6 percent value share in 1997.

Above-the-line advertising expenditure on advertising for chilled and frozen desserts as recorded by AC Nielsen-MEAL amounted to £16.3m in 1997, equivalent to 1.1 percent of total retail sales. This level is marginally down on 1996 and significantly lower than the £20.4m spent in 1995. This ratio of above-the-line advertising to total sales is low in comparison to a large number of other food and drink sectors. In-store promotions such as price cutting are important in this market, especially for yoghurts.

The grocery multiples have continued to consolidate their control of the desserts market, increasing their value share of retail sales of chilled desserts from 74.5 percent in 1995 to 77.6 percent in 1997 and from 64.3 percent to 66.8 percent for frozen desserts. The reason for their lower share of frozen desserts is the 17.4 percent of sales accounted for by freezer centres led by Iceland in 1997. The share of discounters such as Kwik Save has remained static. In terms of individual retailer shares of trade, Tesco and Sainsbury’s are fighting it out for the number one spot in chilled desserts, with their overall shares being extremely close, with slightly wider gaps within some of the individual segments. For frozen desserts however, Tesco has a clearer lead with a 22.9 percent value share followed by Iceland with 15.7 percent of the retail frozen dessert trade and Sainsbury’s on 14.8 percent.

The chilled and frozen desserts market is forecast to grow by 20.7 percent between 1998 and 2002, reaching £1,811m. More emphasis on premium and super-indulgent products by suppliers and continued product innovation will be important contributors to this steady growth. Traditional dairy desserts are forecast to experience the greatest rate of increase, marginally ahead of fromage frais and significantly ahead of yoghurt. A greater number of product launches are likely to blur the distinction between yoghurts and fromage frais on the one hand and traditional dairy desserts on the other. The children’s segment in chilled desserts and to a lesser extent in frozen is anticipated to become even more of a battleground. The hot bakery and individuals segments of the frozen desserts market are expected to make further gains as numbers of small-sized households increase and lifestyle trends result in consumers opting for the ultimate in convenience.

Text © 1998 MAPS

Back to Top

Back To REPORTFINDER HOME PAGE

Ariadne - working together with our customers to enhance productivity and increase knowledge

© 1999 www.the-list.co.uk Ariadne

Last updated by Duncan Nottage 4th February 1999