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| MP15129 |
| MAPS CONDIMENTS & SAUCES : UK OCTOBER 1999 |
| Overview |
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This report covers: table sauces, salad accompaniments, pickles, chutneys, relishes, dish-specific sauces. salt & Pepper, Vinegar, mustard, marinades,meal eating habits, seasonal influences, barbecues, growth of pre-packed salads, own-label activity,Tomatoe Ketchup, Brown Sauce, Barbecue, thick sauces, Worcestershire Sauce, Soy Sauce, sweet pickles, sour pickles,
Companies covered include: Tesco, Sainsbury, Asda, Safeway, Somerfield,
| 1.Introduction | 1 |
| 2. Definition | 2 |
| table sauces | 2 |
| pickles and chutneys | 2 |
| salad accompaniments | 2 |
| gravy makers | 2 |
| dish specific sauces | 2 |
| salt and pepper | 3 |
| Vinegar | 3 |
| mustard | 3 |
| marinades | 3 |
| 3. Executive Summary | 4 |
| 4. Strategic Assessment | 7 |
| Socio Demographic Factors | 7 |
| Personal Disposable Income | 7 |
| Table 1. - Trends in Personal Disposable Income at Current Prices 1993-98e7 | |
| Figure 1. - Trends in Personal Disposable Income at Current Prices 1993-98e 8 | |
| Population Age Profile | 8 |
| Figure 2. - UK Population Change by Age Group 1996, 2001, 2006 9 | |
| Table 2. - UK Population Change by Age Group 1996, 2001 and 20069 | |
| market dynamics | 10 |
| Growing Interest in Ethnic and Continental Foods | 10 |
| Importance of Product Versatility | 11 |
| The Convenience Factor | 11 |
| Eating Habits | 11 |
| Barbecues | 12 |
| Declining Meat Consumption | 12 |
| Table 3. - UK Per Capita Meat Consumption (kg/year) 1992-98 | 13 |
| Figure 3. - UK Per Capita Meat Consumption (kg/year) | |
| 1992-98 | 14 |
| Fashion | 14 |
| Seasonality | 14 |
| Healthy Eating | 15 |
| 5. Market Size and Segmentation | 16 |
| Overview | 16 |
| Table 4. - Overall Sales of Condiments and Sauces 1995-98 | 17 |
| Table 5. - Total UK Market for Condiments and Sauces by Sector 1995-9818 | |
| Table Sauces | 19 |
| Overview | 19 |
| Tomato Ketchup | 19 |
| Table 6. - Table Sauce Sales by Type 1997-98 | 19 |
| Packaging | 20 |
| Brown Sauce | 21 |
| Packaging | 21 |
| Soy & Other Ingredient Sauces | 22 |
| Barbecue & Other Table Sauces | 23 |
| Table 9. - Soy & Other Ingredient Sauce Sales by Type 1997 and 199823 | |
| Worcestershire Sauce | 24 |
| Pickles, Chutneys and Relishes | 24 |
| Overview | 24 |
| Table 10. - Barbecue & Other Table Sauce Sales by Type 1997 and 199824 | |
| Sour Pickles | 25 |
| Table 11. - Pickles, Chutneys & Relish Sales by Type 1997 and 199825 | |
| Figure 4. - Sour Pickle Sales by Type 1997 and 1998 | 26 |
| Table 12. - Sour Pickle Sales by Type 1997 and 1998 | 26 |
| Sweet Pickles | 27 |
| Chutney | 27 |
| Relish | 27 |
| Table 13. - Sweet Pickle Sales by Type 1997 and 1998 | 27 |
| Salad Accompaniments | 28 |
| Overview | 28 |
| Table 14. - Salad Accompaniment Sales by Type 1997 and 199828 | |
| Healthy/Dietary Varieties | 29 |
| Table 15. - Estimated Breakdown of Low Fat/Low Calorie Salad Accompaniments by Segment 1998 | 29 |
| Figure 5. - Estimated Breakdown of Low Fat/Low Calorie Salad Accompaniments by Segment 1998 | 30 |
| Mayonnaise | 30 |
| Figure 6. - Mayonnaise Sales by Pack Size 1996 & 1998 | 31 |
| Salad Cream | 31 |
| Table 16. - Mayonnaise Sales by Pack Size 1996 & 1998 | 31 |
| Figure 7. - Salad Cream Sales by Pack Size 1996 & 1998 | 32 |
| Table 17. - Salad Cream Sales by Pack Size 1996 & 1998 | 32 |
| Other Salad Dressings | 33 |
| gravy makers | 33 |
| Figure 8. - Estimated Gravy Maker Sales by Format 1996 and 1998 ( percent) 34 | |
| Table 18. - Estimated Gravy Maker Sales by Format 1996 and 1998 ( percent)34 | |
| Table 19. - Estimated Gravy Granule Sales by Flavour 1996 and 199835 | |
| Figure 9. - Estimated Gravy Granule Sales by Flavour 1996 and 1998 36 | |
| Dish Specific Sauces | 36 |
| Table 20. - Dish Specific Sauce Sales by Type 1998 | 37 |
| Figure 10. - Dish Specific Sauce Market Share by Type 1998 | 38 |
| Salt and pepper | 38 |
| Table 21. - Salt & Pepper Sales by Sector 1997 and 1998 | 38 |
| Salt | 39 |
| Table 22. - Estimated Salt Sales by Type 1996 and 1998 | 39 |
| Figure 11. - Estimated Salt Sales by Type 1996 and 1998 | 40 |
| Pepper | 40 |
| vinegar | 41 |
| Table 23. - Pepper Sales by Type 1997 and 1998 | 41 |
| Mustard | 42 |
| Table 24. - Vinegar Sales by Type 1998 | 42 |
| Figure 12. - Speciality Mustard Sales by Recipe Type 1996 and 1998 43 | |
| Marinades | 43 |
| Table 25. - Estimated Speciality Mustard Sales by Recipe Type 1996 and 199843 | |
| 6. Consumer Dynamics | 45 |
| Overview | 45 |
| Table 26. - Proportion of Housewives Buying Individual Types of Condiments and Sauces in the Previous 12 Months 1997 and 1999 | 46 |
| table salt | 47 |
| Tomato Ketchup | 47 |
| Table 27. - Characteristics of Table Salt and Tomato Ketchup Purchasers 199948 | |
| vinegar | 49 |
| pepper | 49 |
| Table 28. - Characteristics of Vinegar and Pepper Purchasers 199950 | |
| salad cream | 51 |
| mayonnaise | 51 |
| Table 29. - Characteristics of Salad Cream and Mayonnaise Purchasers 199952 | |
| brown sauce | 53 |
| pickles | 53 |
| Table 30. - Characteristics of Brown Sauce and Pickles Purchasers 199954 | |
| gravy makers | 55 |
| mustard | 55 |
| Table 31. - Characteristics of Gravy Mixes and Mustard Purchasers 199957 | |
| apple, cranberry, mint sauce | 58 |
| Marinades | 58 |
| Table 32. - Characteristics of Dish Specific Sauce and Marinade Purchasers 199959 | |
| relishes | 60 |
| Barbecue sauces | 60 |
| Table 33. - Characteristics of Relish and Barbecue Sauce Purchasers 199961 | |
| chutney | 62 |
| Table 34. - Characteristics of Chutney Purchasers 1999 | 63 |
| 7. Supplier Profiles | 64 |
| Kraft jacobs suchard ltd | 64 |
| Nestlé sa | 64 |
| Table 35. - Kraft Jacobs Suchard Ltd Financial Summary 1996 and 199764 | |
| UNILEVEr plc | 65 |
| Table 36. - Nestlé S A Financial Summary 1997 and 1998 | 65 |
| Table 37. Unilever Plc Financial Summary 1997 and 1998 | 65 |
| Group Danône sa | 66 |
| HJ Heinz Company | 66 |
| Table 36. - Danône Financial Data 1995-96 | 66 |
| TOMKINS plc | 67 |
| Table 37. - H.J. Heinz Company Financial Summary 1997 and 199867 | |
| Bestfoods uk ltd | 68 |
| Table 40. - Tomkins Plc Financial Summary May 1997-98 | 68 |
| hillsdown holdings Plc | 69 |
| Table 41. - Bestfoods UK Ltd Financial Summary 1997 and 1998 | 69 |
| McCORMICK FOODS | 70 |
| Table 42. - Hillsdown Holdings Plc Financial Summary 1997-98 | 70 |
| Uniqfoods | 71 |
| Table 43. - McCormick (UK) Plc Financial Summary | |
| 1996-97 | 71 |
| baxters of Speyside | 72 |
| Others | 72 |
| Table 38. - Albert Fisher Group Plc Financial Summary 1997 and 199872 | |
| 8. Brand Shares | 75 |
| Table Sauces | 75 |
| Tomato Ketchup | 75 |
| Brown & Fruity Sauces | 75 |
| Table 39. - Tomato Ketchup Brand Shares 1998 | 75 |
| Soy and Other Ingredient Sauces | 76 |
| Table 40. - Brown Sauce Brand Shares 1998 | 76 |
| Barbecue & Other Sauces | 77 |
| Table 41. - Soy Sauce Brand Shares 1998 | 77 |
| Worcestershire Sauce | 78 |
| Pickles, Chutneys and relishes | 78 |
| Sour Pickles | 78 |
| Table 42. - Barbecue* Sauce Brand Shares 1998 | 78 |
| Pickled Onions | 79 |
| Table 49. - Sour Pickle Brand Shares 1998 | 79 |
| Other Sour Pickles | 80 |
| Sweet Pickles | 80 |
| Table 50. - Pickled Onion Value Brand Shares 1998 | 80 |
| Chutney | 81 |
| Table 51. - Sweet Pickle Brand Shares 1998 | 81 |
| Relishes | 82 |
| Table 52. - Chutney Brand Shares 1998 | 82 |
| Salad Accompaniments | 83 |
| Mayonnaise | 83 |
| Table 53. - Relishes Brand Shares 1998 | 83 |
| Salad Cream | 84 |
| Table 54. - Mayonnaise Brand Shares 1998 | 84 |
| Table 55. - Salad Cream Brand Shares 1998 | 85 |
| Other Salad Dressings | 86 |
| gravy makers | 88 |
| Dish Specific Sauces | 89 |
| Table 59. - Gravy Makers Brand Shares 1998 | 89 |
| Vinegar | 90 |
| Table 60. - Dish Specific Sauce Brand Shares 1998 | 90 |
| salt & pepper | 91 |
| Salt | 91 |
| Table 61. - Vinegar Brand Shares 1998 | 91 |
| Pepper | 92 |
| Table 62. - Salt Brand Shares 1998 | 92 |
| mustard | 93 |
| Table 63. - Pepper Brand Shares 1998 | 93 |
| Marinades | 94 |
| Table 64. - Mustard Brand Shares by Type 1998 | 94 |
| 9. Advertising and Promotion | 95 |
| Overview | 95 |
| Table Sauces | 95 |
| Heinz | 95 |
| Table 65. - Main Media Advertising Expenditure on | |
| Condiments and Sauces by Sector, year ending March 1998 and March 199995 | |
| HP Foods | 96 |
| Pickles, Chutneys and Relishes | 96 |
| Table 66. - Main Media Advertising Expenditure on Table Sauces by Major Brand year ending March 1999 | 96 |
| Salad Accompaniments | 97 |
| Table 67. - Main Media Advertising Expenditure on Pickles, Chutneys & Relishes by Major Brand year ending March 1999 | 97 |
| Gravy Makers | 98 |
| Table 68. - Main Media Advertising Expenditure on Salad Accompaniments by Major Brand year ending March 1999 | 98 |
| Table 69. - Above-the-Line Advertising Expenditure on Gravy Makers by Major Brand year ending March 1999 | 98 |
| Condiments | 99 |
| Mustard | 99 |
| 10. Retail Issues | 100 |
| distribution structure | 100 |
| Table 70. - Share of Condiments and Sauces Trade by Type of Outlet 1994-98100 | |
| Figure 13. - Share of Condiments and Sauces Trade by Type of Outlet 1994-98 101 | |
| retailer market shares | 101 |
| Table 71. - Retailer Shares of Condiments & Sauces 1998 | 102 |
| Figure 14. - Retailer Shares of Condiments & Sauces 1998 | 103 |
| Merchandising Issues | 103 |
| retailer profiles | 104 |
| Tesco Plc | 104 |
| J Sainsbury Plc | 105 |
| Table 72. - Tesco Plc Financial Summary 1998 and 1999 | 105 |
| Asda Group Plc | 106 |
| Table 73. J Sainsbury Plc Financial Summary 1998 and 1999 | 106 |
| Table 74. - Asda Group Plc Financial Summary 1997 and 1998 | 106 |
| Safeway Plc | 107 |
| Somerfield Plc | 107 |
| Table 75.- Safeway Plc Financial Summary 1997 and 1998 | 107 |
| Company Mergers | 109 |
| Table 76. - Somerfield Plc Financial Summary 1997 and 1998 | 109 |
| 11. Future Prospects | 110 |
| overview | 110 |
| Table 77. - Forecast Sales of Condiments and Sauces by Sector 1999-2002111 | |
| Figure 15. - Forecast Sales of Condiments and Sauces by | |
| Sector 1999-2002 | 112 |
| Tables Sauces | 112 |
| Pickles, Chutneys and relishes | 112 |
| Salad Accompaniments | 113 |
| gravy makers | 113 |
| dish specific sauces | 113 |
| salt and pepper | 114 |
| vinegar | 114 |
| mustard | 114 |
| marinades | 114 |
| 12. Sources | 115 |
| 13. Glossary of Terms | 118 |
| ABOUT THE SOURCES USED | 119 |
| PROBLEMS IN CALCULATING | 120 |
| The condiments and sauces market includes a range of products added to a meal after it has been brought to the table. These vary from traditional table sauces such as tomato ketchup and brown sauces to barbecue and salad dressings, pickles, seasoning, vinegar, mustard and dish specific sauces. The market is mature, with a number of well-established product sectors with household brands very much part of the traditional British diet. Nevertheless, even this sector is being affected by modern eating and cooking trends, such as the increased interest in ethnic cuisine, more informal eating and declining consumption of red meats. In response, suppliers have sought to introduce products that focus more on contemporary meals, recipes and tastes, as well as promoting product versatility. |
| The increased interest in foreign flavours has also been encouraged by the recent acquisition of many British food manufacturers by European companies such as Nestlé and Danône, resulting in brands becoming more global. |
| Well-established brands dominate individual sectors, most noticeably Heinz accounting for almost 60 percent of tomato ketchup sales value in 1998. HP Sauce (part of Danône) accounts for 42 percent of sales value for brown sauce and Colman's from Unilever subsidiary, Van Den Bergh Foods, accounting for 70 percent of mustard sales value in 1998. Nestlé dominates sales of sweet pickles with its Crosse & Blackwell Branston brand while the newly formed Centura Group includes Bisto and JA Sharwood, market leaders in gravy makers and soy sauce respectively. Chivers Hartley Haywards brand has the largest single branded share in the sour pickles sector. |
| However, as in a number of food markets, retailers' own labels have had an important part to play, especially in the more commodity-type sectors such as cooking salt where, in 1998, own label had a 91.1 percent share. Retailers introduced increased price competition with their budget brands, particularly in the table sauce and salad accompaniment sectors. However, with an increasingly discerning customer, the evidence is that more emphasis is now put on differentiation based on product quality and taste rather than just price. |
| Thus, the grocery multiples continue to increase their share of trade, accounting for around three-quarters of sales value of sauces and condiments in 1998 with Tesco claiming the lion's share followed by J Sainsbury, Asda and Safeway. |
| Following the merger of Asda and the world's largest retailer, Wal-Mart, an intense price war, across all food and non-food product categories, seems inevitable with the new partnership intent on ousting Tesco from its top spot. The latter has responded by telling its suppliers to trim their costs so that it can compete. Indeed, brand manufacturers will be forced to keep their prices down to ensure they are still given shelf-space alongside own label especially if, as anticipated, further retail consolidation takes place. While this can only be good for the consumer in the short term, there will almost certainly be retailer casualties with the result that the UK will eventually have less choice of retailer, and therefore less benefit from competition. The merged Somerfield/KwikSave operation is, by the autumn of 1999, looking particularly vulnerable. |
| Taken together, the value of retail sales of condiments and sauces amounted to £635.1m in 1998 equivalent to 325,400 tonnes and representing an overall growth of 6.5 percent since 1995 while volume sales show little fluctuation due to the maturity of the market. |
| Table sauces constitute the largest single sector, accounting for 26 percent of total sales value in 1998 followed by pickles, chutneys and relishes with a falling share of 19 percent. Salad accompaniments, the third largest sector, experienced healthy growth of 15.5 percent between 1995 and 1998, benefiting from considerable product innovation. After an earlier period of relatively flat sales, growth has picked up in the gravy makers sector, as suppliers have focused on closing the gap between the number of occasions a range of host foods are used and those times when they are accompanied with a gravy. Broadening usage opportunities and developing ready-to-serve versions are therefore central to growing sales of these products. |
| Extending usage occasions has also been an important issue in sectors such as dish specific sauces where, from declining sales, the sector is again seeing some growth. There has been greater focus on the regular weekday and weekend meal rather than special occasions in promoting these products. |
| Turkey, for example, is featuring more regularly with the increased availability of convenient cuts like breast fillets and saddles. In 1997, one third of sales were in the eight weeks prior to Christmas whereas in 1993, the same period saw sales accounting for two-thirds of the annual total. Condiments other than the traditional cranberry sauce are being suggested as suitable accompaniments. |
| New and more contemporary flavours are being launched with manufacturers providing more recipe suggestions on packaging and retailers printing more recipe leaflets. Sauces and condiments, as well as grouped together, are displayed along with complementary products, for example, apple sauce with joints of pork or dressings alongside salad foods. |
| Within other sectors, the most significant growth is coming from segments responding to modern eating trends. Examples include the barbecue, soy and other ingredient sauce segments of the table sauce sector, speciality mustards and vinegar as well as marinades. It is being recognised that many of these products make an ideal cooking ingredient as well as an accompaniment. |
| Most of the products under review have a high proportion of housewives buying them in the course of a year. National Opinion Poll (NOP) surveys commissioned in 1997 and 1999 indicate that tomato ketchup and vinegar have maintained the highest incidence of purchase at 84 percent while penetration levels of salt have declined since 1997. Such a fall is in keeping with findings of the National Food Survey (NFS), which show per capita salt consumption decreasing in response to health warnings. The sharpest decline, however is in the dish-specific sector where incidence of purchase fell from 61 percent in 1997 to 43 percent in 1999. This is presumably a result in the decline of traditional meals that such sauces often accompany but suppliers are responding by encouraging their use in differing ways. |
| As might be expected, penetration levels of different products vary among age groups. Relishes and barbecue sauce, both of which have benefited from a slight increase in incidence of purchase, are most popular with those in the 25 to 34 age groups. The other sectors seeing a rise, that of gravy mixers and chutney, are most likely to be bought by the 35 to 44 year olds and 45 to 54 year olds respectively. |
| Demographic trends to the year 2001 are, if anything, expected to help sales of most types of condiments and sauces. The main consumers are 30-59 year olds, whose numbers are forecast to increase by 7.5 percent in the ten years to 2006. They are the most likely to entertain at home, have families and have more usage occasions for condiments and sauces. However, in the longer term, the lower take-up of condiments and sauces amongst the under 35s will result in declining sales, unless these trends can be reversed with innovative new concepts and products. |
| The condiments and sauces market in its entirety is expected to grow by almost 9 percent at current prices between 1999 and 2003, the modest rate reflecting the maturity of many of the market sectors. The compound annual growth rate anticipated between 1999 and 2003, in value terms at current prices, is 2.2 percent per annum. |
| Within the market, there is expected to be continuing emphasis on products reflecting modern eating trends, such as the growing interest in ethnic cuisine or barbecuing. At the same time, however, as the pace of life and the proportion of working women increases, the best chance of success for products are those which are versatile, easy and quick to serve up and use, whilst at the same time providing authenticity and closely resembling home made quality. |
| It is also expected that fresh, chilled sauces and condiments and organic produce will take an increasing share of the market, able to command higher prices and therefore uphold the value of the market. |
Awaiting Executive Summary
Text © 1999MAPS
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Last updated by Amanda Porteous 2000