6 Chilled foods Table 1. 4 New chilled foods introduced by different UK retailers Retaile 1998 Marks spencer 78272460 575 Wm morrison S/CRS Retail Table 15 summarises the key features of the UK chilled food market in the 1990s and highlights the importance of drivers such as convenience including microwaveability, snacking, healthy eating, ethnicity and vegetarianism. In addition, notable inclusions are products designed for home entertainment such as items for dinner parties as well as more informal type snacks and products specifically for children. These trends have developed from the extensive range of products available during the 1980s(Bond 1992) 1.3 Overall market size In the Uk, the chilled foods market for dairy products, meat products, ready meals, pizzas and prepared salads was valued at f5 billion in 1997, representing 6% of total grocery sales(Anon. 1998b). Forecasts are for continued growth at as much as 6% per annum, reaching a market value of over f6 billion by 2002 (Anon. 1998a; Anon. 1998b, Anon. 1997). The various chilled foods categories had the following shares of overall UK chilled foods sales in 1997 by value (Anon. 1998a, Anon. 1997: figures have been rounded to the nearest whole dairy products 70% ready meals, pizzas and prepared salads 15%(chilled ready meals 9%, pizzas 7((Anon 1998a, Anon 1998b, Anon. 1997, IDF 195/ Gver the period 1993- These categories show differing levels of growth in value products 17% products 30% meals 30-50%(differing estimates from Keynote and mintel) pizzas 50% prepared salads 40%
Table I.5 summarises the key features of the UK chilled food market in the 1990s and highlights the importance of drivers such as convenience including microwaveability, snacking, healthy eating, ethnicity and vegetarianism. In addition, notable inclusions are products designed for home entertainment such as items for dinner parties as well as more informal type snacks and products specifically for children. These trends have developed from the extensive range of products available during the 1980s (Bond 1992). I.3 Overall market size In the UK, the chilled foods market for dairy products, meat products, ready meals, pizzas and prepared salads was valued at £5 billion in 1997, representing 6% of total grocery sales (Anon. 1998b). Forecasts are for continued growth at as much as 6% per annum, reaching a market value of over £6 billion by 2002 (Anon. 1998a; Anon. 1998b, Anon. 1997). The various chilled foods categories had the following shares of overall UK chilled foods sales in 1997 by value (Anon. 1998a, Anon. 1997: figures have been rounded to the nearest whole number): • dairy products 70% • meat products (excluding raw meat, poultry and fish) 15% • ready meals, pizzas and prepared salads 15% (chilled ready meals 9%; pizzas 5%; prepared salads 1%). These categories show differing levels of growth in value over the period 1993– 7 ((Anon. 1998a; Anon. 1998b, Anon. 1997, IDF 1995): • dairy products 17% • meat products 30% • ready meals 30–50% (differing estimates from Keynote and Mintel) • pizzas 50% • prepared salads 40% Table I.4 New chilled foods introduced by different UK retailers Retailer 1997 1998 1999 Marks & Spencer 528 575 502 Tesco 402 526 544 J Sainsbury 367 504 498 Safeway 222 390 326 Asda 364 408 414 Waitrose 306 433 354 Wm Morrison 200 222 213 Somerfield 179 196 192 CWS/CRS Retail 146 155 159 6 Chilled foods
Introduction 7 Table 1.s Product features of uk chilled foods market in the 1990s Product area Key product development Yellow fats Increasing numbers of Biggest innovation has bgen s readable butter Fat blends and spreads Spreads have been one of the success stories of the 1990s The aim to produce a ' butter tasting product with low/or no cholesterol Olive oil products e.g. Olivio The move to functional products e.g. Benecol Cheese Cheddar still popular, the stronger flavours being most popular Regional varieties and flavour additions continue Healthy eating(specifically low fat) Innovation with cheese snacks e.g. Lunchables, Dunkers and Now large variety of imported cheeses Cottage cheeses follow the ethnic trends for flavour additions and healthy eating trends Organic varieties available Milk Overall, decline in milk consumption Health-conscious consumers have switched to lower-fat milks Few with added vitamins and aimed at specific groups of consumers(age groups) Flavoured milks are growing, aimed at younger consumers (in competition with soft drinks Gained more popularity during BsE crisis Processed poultry products, and crumb coated are popular with Added value, marinaded chicken, particularly popular for the Free range and organic also available at a premium Leaner, smaller joints developed, more modern image Quick cook joints and presentations, component meals and recipe dishes - convenience Sausages declined during bse crisis, but since then sausages have moved more upmarket and traditional- now more of a premiun Marinaded/added-value cuts available, particularly during the arbecue season RSPCA freedom food, animal husbandry, organic meats availal Fish and seafood Fish Perceived as healthy, benefited from bse crisis Processed and crumb coated or battered aimed at encouraging hildren to eat more fish In store fishmongers, with trained staff to 'educate and help consumers Salmon, once seen as a speciality, now farmed, are used in recipe
Table I.5 Product features of UK chilled foods market in the 1990s Product area Key product development Yellow fats Butter • Increasing numbers of organic butters • Biggest innovation has been spreadable butter Fat blends and spreads • Spreads have been one of the success stories of the 1990s • The aim to produce a ‘butter tasting’ product with low/or no cholesterol • Olive oil products e.g. Olivio • The move to functional products e.g. Benecol Cheese • Cheddar still popular, the stronger flavours being most popular • Regional varieties and flavour additions continue • Healthy eating (specifically low fat) • Innovation with cheese snacks e.g. Lunchables, Dunkers and Cheestrings – ideal for lunch boxes. • Now large variety of imported cheeses • Cottage cheeses follow the ethnic trends for flavour additions and healthy eating trends • Organic varieties available Milk • Overall, decline in milk consumption • Health-conscious consumers have switched to lower-fat milks • Few with added vitamins and aimed at specific groups of consumers (age groups) • Flavoured milks are growing, aimed at younger consumers (in competition with soft drinks) • Organic milks also available Poultry • Gained more popularity during BSE crisis • Processed poultry products, and crumb coated are popular with children • Added value, marinaded chicken, particularly popular for the barbecue season • Free range and organic also available at a premium Meat • Leaner, smaller joints developed, more modern image • Quick cook joints and presentations, component meals and recipe dishes – convenience • Sausages declined during BSE crisis, but since then sausages have moved more upmarket and traditional – now more of a premium image • Marinaded/added-value cuts available, particularly during the barbecue season • RSPCA freedom food, animal husbandry, organic meats available Fish and seafood Fish • Perceived as healthy, benefited from BSE crisis. • Processed and crumb coated or battered aimed at encouraging children to eat more fish • In store fishmongers, with trained staff to ‘educate’ and help consumers • Salmon, once seen as a speciality, now farmed, are used in recipe dishes Introduction 7