This report examines trends and developments in the UK market for meals which are heavily, albeit not exclusively, consumed by children. Mintel last covered this sector in Children's Foods, Market Intelligence, July 1996 .
(c) Mintel International Group Limited
Children's Foods - UK - July 1999
Contents
INTRODUCTION AND ABBREVIATIONS
Introduction
Definition
Consumer research
Abbreviations
EXECUTIVE SUMMARY
Traditional products decline
Lifestyles suit market potential
Convenience, novelty and value
Who is the marketing focus?
A dual dilemma
Sectors dominated by one brand and own label
Innovation to sustain interest
MARKET DRIVERS
Working mothers seek convenience and popularity
Figure 1 Economic activity status of mothers, by age of youngest child, 1996
Family meal becomes out of date
Number of children set to decline to 2003
Figure 2 Population trends by age of child, 1994-2003
Parents seek a healthy reassurance
Pester power
Advertising attracts criticism
Kids growing older, younger
Out of home eating for children
Growth in avoidance of meat
Penetration of children's foods
Figure 3 Usage of children's foods, 1994-98
MARKET SIZE AND TRENDS
Figure 4 UK retail sales of children's meals in the UK, 1994-99
Figure 5 UK retail value sales of children's meals in the UK, by sector, 1994-98
MARKET SEGMENTATION
Fish fingers
Figure 6 UK retail sales of fish fingers, 1994-99
New products take share
Frozen meat burgers
Figure 7 UK retail value sales of frozen meat burgers, 1994-99
Figure 8 UK retail sales of frozen meat burgers, by type, 1994-98
Quality drives the market
Coated snack-sized poultry products
Figure 9 UK retail value sales of coated snack-sized poultry products, 1994-99
Momentum boosts the market
Figure 10 UK retail value sales of snack-size poultry products, by type, 1998
Kids' characters lead on
Child-orientated frozen pizzas
Figure 11 UK retail sales of child-orientated frozen pizzas, 1994-99
Figure 12 UK retail value sales of child-orientated frozen pizza, by type, 1996 and 1998
Victim of price competitiveness
Competing with DIY
Chips and potato products boom
Figure 13 UK retail value sales of frozen chips and potato products, 1994-99
Figure 14 UK retail sales of frozen chip and potato products market, by sector, 1994-98
Vulnerability to raw material price hikes
The chips are down
Innovation bolsters growth
Beanz meanz ...
Figure 15 UK retail sales of baked beans, 1994-99
... adding value
Canned pasta
Figure 16 UK retail sales of canned pasta, 1994-99
Scarce adult interest, strong character merchandising
Developing sectors
COMPANY PERFORMANCE AND STRATEGY
Companies and brands
Fish fingers
Figure 17 Manufacturers' shares of the UK frozen fish finger market, 1996 and 1998
Birds Eye Wall's
United Biscuits Frozen and Chilled Foods
Bernard Matthews
Own label
Frozen burgers
Figure 18 Manufacturers' shares of the frozen red meat burger market, 1994-98
Birds Eye Wall's
Dalepak
Other brands
Own label
Coated snack-sized poultry
Figure 19 Manufacturers' shares of the UK coated snack-sized poultry market, 1998
Figure 20 Manufacturers' shares of the UK frozen child-specific coated shapes poultry market, 1998
Birds Eye Wall's
Bernard Matthews
Front Line Foods
Other brands
Own label
Frozen pizzas
Figure 21 Manufacturers' shares of the total UK frozen pizza market, 1994-98
United Biscuits Frozen and Chilled Foods
McCain Food GB
Nestlè
Other brands
Own label
Frozen chips and potato products
Figure 22 Manufacturers' shares in the UK frozen chips market, by value, 1994-98
Figure 23 Manufacturers' shares in the UK frozen potato products market, by value, 1994-98
McCain Foods
Birds Eye Wall's
UB Frozen and Chilled Foods
Own label
Baked beans
Figure 24 Brand shares in the UK baked beans market, 1994-98
HJ Heinz
HL Foods
Other brands
Own label
Canned pasta
Figure 25 Manufacturers' shares in the UK canned pasta market, 1994-98
HJ Heinz
HP Foods
Other product areas
A Mars future?
ADVERTISING AND PROMOTION
Figure 26 Main monitored media advertising expenditure on children's meals, 1994-98
Figure 27 Proportion of advertising expenditure on selected children's meals, 1998
DISTRIBUTION AND MERCHANDISING
Fish fingers
Burgers
Figure 28 UK retail sales of burgers, by type of outlet, 1994-98
Pizza
Figure 29 UK retail sales of frozen pizzas, by type of outlet, 1994 and 1998
Frozen chips and potato products
Figure 30 UK retail sales of frozen chips and potato products in the UK, by type of outlet, 1994-98
Baked beans
Figure 31 UK retail sales of baked beans in the UK, by type of outlet, 1994-98
Canned pasta
Figure 32 UK retail sales of canned pasta in the UK, by type of outlet, 1994-98
Merchandising
THE CONSUMER
Figure 33 Usage of child-orientated foods among families and
non-families, 1998
Figure 34 Weight of usage of frozen fish fingers, by type of family, 1998
Figure 35 Weight of usage of frozen burgers, by type of family, 1998
Figure 36 Weight of usage of frozen chips and potato products, by type of family, 1998
Figure 37 Weight of usage of baked beans, by type of family, 1998
Figure 38 Weight of usage of canned pasta, by type of family, 1998
Figure 39 Attitudes to children's diets, February and April 1999
Figure 40 Most widely held attitudes to children's foods, by type of family, April 1999
Figure 41 Further widely held attitudes to children's foods, by type of family, April 1999
Figure 42 General attitudes to eating, among housewives with and without children, April 1999
Figure 43 General attitude groupings, by type of family, April 1999
Figure 44 Attitudes to children's foods, by general attitude groups, April 1999
THE FUTURE
Fragmented family life
The winners and losers
Novelty is key
Trading up in the burgers sector
Turkey products gain ground
Pizza poses a grown-up problem
Oven chips lose out
A little added value excitement
A focus on pasta
FORECAST
Figure 45 Forecast of the UK children's food market, 1999-2003
AH, MF, MS July 1999
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Introduction and Abbreviations
Introduction
This report examines trends and developments in the UK market for meals which are heavily, albeit not exclusively, consumed by children. Mintel last covered this sector in Children's Foods, Market Intelligence, July 1996 . In 1998, the market was worth £1.1 billion with 7% growth at current prices forecast for 1999. The BSE crisis caused a decline in 1996, largely due to poor burger sales in that year.
This report examines the hypothesis that: "while convenience and health remain priorities for parents feeding their children, children have increasing say in what they are served, and are demanding novelty and excitement."
Mintel predicts that although the market will continue to show modest levels of growth, sustained innovation will be required to maintain children's interest. However, growth within one sector will be, at least in part, at the expense of another sector.
Other Mintel reports of relevance include:
- Crisps and Snacks, Market Intelligence, May 1999
- Carbonates, Market Intelligence, February 1999
- Pocket Money, Market Intelligence, January 1999
- Pasta and Pasta-based Meals, Market Intelligence, January 1999
- Character Merchandising in Food and Drink, Market Intelligence, December 1998
- Own Label Food, Market Intelligence, November 1998
- Chocolate Confectionery, Market Intelligence, November 1998
- Sugar Confectionery, Market Intelligence, October 1998
- Further Processed Poultry, Market Intelligence, September 1998
- Burgers, Market Intelligence, August 1998
- Fish, Market Intelligence, August 1998
- Pizza, Market Intelligence, August 1998
- Fresh Fruit and Vegetables, Market Intelligence, May 1998
- Canned Beans and Pasta, Market Intelligence, March 1998
- Vegetarian Foods, Market Intelligence, March 1998
- Special Report, Marketing to Children
- Special Report, Own Label
and the forthcoming:
- After School Snacking, Market Intelligence, September 1999.
Definition
For the purposes of this report, the children's meals market is defined as retail sales of foods which have a high incidence of consumption among families (at least 60%) and have a much higher penetration level among families than among households without children. Within these sectors, the report also focuses upon those products which are targeted specifically at children. However, it should be noted that since not all consumption is attributable to children, market sizes do not directly reflect the children's markets for these foods.
The report concentrates on foods used by parents as the main meal of the day and includes:
- meal centres , such as fish fingers and burgers
- side of plate products , such as chips, waffles, canned pasta and baked beans.
Other food areas, such as breakfasts, snacks and desserts are excluded. The report does not aim to be comprehensive in its coverage of children's main meal foods, recognising that many of these will be the same as adults main meals, but has taken the largest and most strongly child-orientated sectors.
Foods selected for inclusion in this report are:
Meal centres:
-
frozen fish fingers. Novelty fish shapes - excluding fish cakes and other fish convenience foods - are also included in the text but as yet no market data is available
-
frozen burgers, including all red and white meat varieties, but excluding vegetarian
-
coated snack-sized poultry products, such as chicken and turkey nuggets and novelty shapes, including frozen and chilled
-
child-orientated frozen pizza, such as multipacks, slices and French bread. Main meal frozen pizzas have been excluded.
Side of plate:
-
frozen chips and potato products, including frying chips, oven chips, microwaveable chips and coated chips, and potato products such as hash browns, waffles and potato novelty shapes
-
baked beans, including canned baked bean-based meals, such as baked beans with sausages
-
canned pasta, such as spaghetti, ravioli and pasta shapes and canned pasta meals.
Mintel also recognises that other sectors which remain more popular with adults, also contain sub-sectors which are marketed specifically towards children. For this reason, mention is made of sausages and vegetarian foods where they are targeted towards children, but these products are not included in the market data.
Consumer research
In addition to the standard breaks, Mintel has analysed the consumer research in the following manner.
Lifestages are derived from analysis of the exclusive consumer research and are split into four main groups.
Pre-family
those aged under 35 who are not parents.
Family
those aged 15-54 with at least one child aged under 16 still at home.
Empty nesters
no family/empty nesters aged 35-54 with no children (aged under 16).
Post family
post family/retired aged over 55/not working.
As part of an ongoing policy to find new ways of analysing data, Mintel has created
Special Groups of consumers to typify consumer habits in the late 1990s. Unlike the lifestage groups, these groups represent only sections of the population and do not account for all adults.
Benefit dependents
Es aged 35+ - those who are reliant solely on state benefits (around 10% of the adult population).
Families on a tight budget
these are working C2Ds with at least one child aged under 16 in the household - the majority have limited incomes which must be spent on a relatively large household (around 10% of the population).
Better off families
these are working ABC1s with at least one child aged under 16 (around 9% of the population).
Better off empty nesters
these are ABC1s aged 35-64 who are working with no children (aged under 16) living at home. They are, therefore, the classic no family/empty nesters with probably a high income that can be spent on themselves rather than on family (around 8% of the adult population).
Working managers
these are working ABs (around 9% of the adult population).
Working women
women in part or full time employment (around 21% of the adult population).
This report also uses consumer research analysed by ACORN category. ACORN is a geo-demographic segmentation method, using census data to classify consumers according to the type of residential area in which they live. Each postcode in the country can therefore, be allocated an ACORN category.
This classification is a more powerful differentiator of consumer behaviour than traditional socio-economic and demographic indicators. The categories, and their components, are as follows:
Group A - Thriving
Wealthy achievers, suburban areas.
(Approx 20% of population.)
Affluent greys, rural communities.
Prosperous pensioners, retirement areas.
Group B - Expanding
Affluent executives, family areas.
(Approx 11% of population.)
Well off workers, family areas.
Group C - Rising
Affluent urbanites, town and city areas.
(Approx 8% of population.)
Prosperous professionals, metropolitan areas.
Better off executives, inner city areas.
Group D - Settling
Comfortable middle agers, mature home owning areas.
(Approx 25% of population.)
Skilled workers, home owning areas.
Group E - Aspiring
New homeowners, mature communities.
(Approx 13% of population.)
White collar workers, better off multi-ethnic areas.
Group F - Striving
Older people, less prosperous areas.
(Approx 21% of population.)
Council estate residents, better off homes.
Council estate residents, high unemployment.
Council estate residents, greatest hardships.
People in multi-ethnic, low income areas.
Value figures throughout this report are at retail selling prices unless otherwise stated.
Abbreviations
€
euro
ACORN
A Classification of Residential Neighbourhoods
ASA
Advertising Standards Authority
BMRB
British Market Research Bureau
BOGOF
Buy One Get One Free
BSE
Bovine Spongiform Encephalopathy
COMA
Committee on Medical Aspects of Food Policy
DFEE
Department for Education and Employment
EU
European Union
GHS
General Household Survey
GM
Genetically Modified
ITC
Independent Television Commission
KGOY
Kids Growing Older Younger
M&S
Marks & Spencer
MAFF
Ministry of Agriculture, Fisheries and Food
MAT
Moving Annual Total
MLC
Meat & Livestock Commission
MMS
Media Monitoring Services Ltd. For more information contact Mary Sneddon at MMS on 01344 627553.
NFS
National Food Survey
NPD
New Product Development
ONS
Office for National Statistics
OPCS
Office of Population Censuses and Surveys
oz
ounce - 1oz=28.35gm
PDI
Personal Disposable Income
SPSS
Statistical Package for the Social Sciences
TGI
Target Group Index. For further details concerning this information, including data regarding readership patterns of users/purchasers and details of brands, please contact Peter Shreeve at BMRB International on 0208-566 5000.
UB
United Biscuits
UBFCF
United Biscuits Frozen and Chilled Foods
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Executive Summary
Traditional products decline
The market for children's meals has grown only 4% in real terms since 1994, having been hampered by parent's rejection of burgers in the wake of the BSE crisis. Since 1997, growth rates have been higher at between 5% and 7% per annum. The key sector in terms of size and rate of growth is frozen chips and potato products, which now accounts for 32% of value sales and grew by 31% between 1994 and 1998. Within this sector, it is newer launches, specifically added value potato products, which are showing the greatest success over traditional areas.
This pattern is repeated within the snack-size coated poultry sector which has the highest growth rate and now accounts for a greater market share than the more established children's food - fish fingers. Although still a powerful sector, baked beans have been a casualty of aggressive pricing. Baked beans and the canned pasta sector now face a stronger competitive convenience set. Child-orientated pizza has become largely own label, with greater consumer interest in the newer, main meal sector (not covered by this report).
Lifestyles suit market potential
Although the number of children in the UK is set to decline by 2% to 2003, it is unlikely to result in a reduced demand for children's meals. The increasing proportion of working mothers, coupled with busy lifestyles, and a shift away from family meal times, means child-orientated meals are suited to family life.
Convenience, novelty and value
While mothers require children's meals to be convenient, they are no longer buying them solely on this basis, since the market is now full of such products. Increasingly, children have a say in what they eat, and are demanding interest and involvement. Mothers are looking for products they perceive to be reasonably nutritious, which children will enjoy. Character merchandising and novelty value are becoming requirements rather than simply points of difference.
Who is the marketing focus?
Manufacturers are developing sophisticated marketing tools to draw in children via television advertising, promotions, character merchandising and by using brand names across different product fields (such as the KP Hula Hoops extension into frozen potato products). NPD generates novelty interest. There has, however, been a backlash against this kind of overt marketing by consumer groups, and it is uncertain how difficult it will be to develop the sector while maintaining parental goodwill.
A dual dilemma
Exclusive research carried out by BMRB for this report indicates 75% of mothers say they try to ensure their children eat a healthy diet. Manufacturers market food to parents by highlighting its nutritional value. In this respect, Birds Eye Wall's has been influential with its fish fingers, and in highlighting the safety and nutritional value of its burgers, following the BSE scare. McCain has begun to promote its chips and pizza on nutritional values. However, manufacturers must not undermine the product's credibility in terms of enjoyment by children as they attempt to persuade parents of nutritional value. It is unlikely that health will ever be a major selling point for children's meals.
Sectors dominated by one brand and own label
Each sector covered by this report varies greatly in terms of the players therein. However, in most cases, one key brand has emerged, with most of the remaining share of sales being own label. Birds Eye Wall's is the leading manufacturer in the fish finger, added value potato products and frozen burger markets, while McCain is key in frozen chips, and Heinz dominates in baked beans and canned pasta. Own label has taken share from other brands and has become well established as a brand in its own right, along with a smaller, but significant share for its economy brands. The exception to this trend, within the scope of this report, is snack-size coated poultry products, which started largely with own label and have attracted manufacturer interest following their success.
Innovation to sustain interest
Children require constant novelty value with frequent innovations to maintain their interest, while parents pick up on new products which have an edge in terms of convenience. NPD includes variations within existing product sectors, for example, fish shapes. Future new sectors could include vegetarian products made to look and taste like meat but promoted to parents on health grounds and to children by interest level. Frozen foods are likely to remain key to this market, due to convenience, and promotion efforts by Birds Eye, among others, that frozen can be 'fresher than fresh'.
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Market Drivers
Working mothers seek convenience and popularity
In 1988, there were nearly 4 million more men than women in employment; but by 1998, this gap had narrowed to just over 2 million, with women accounting for over 46% of the total in employment. Women are expected to account for 900,000 of the projected rise of 1.2 million in the workforce by 2006.
Clearly, a large proportion of the increase in working women has come from mothers re-entering or never leaving the workforce, as shown in Figure 1.
Figure 1 Economic activity status of mothers, by age of youngest child, 1996
0-4
5-10
1-15
All mothers*
All non-mothers
%
%
%
%
%
Full time
6
21
30
22
45
Part time
33
41
44
39
24
Unemployed
4
4
3
4
5
Inactive
47
34
23
35
26
* children aged under 16
Source: GHS/Mintel
Figure 1 shows that just over half of mothers of under five year olds are economically active. This proportion has increased from 25% in 1973 (not tabulated). According to DFEE estimates, the proportion of mothers in paid employment outside the home was only 52% ten years ago; it has, therefore, increased by nearly one fifth to 61% (65% including the unemployed). As a result, there is an increasing number of 'latchkey kids', with mothers requiring meals which can be quickly prepared, perhaps by an older child as well as the mother, and which the child will eat without fuss.
Family meal becomes out of date
A general focus on leisure activities and snacking means meal preparation is more piecemeal with fewer 'full' family meals. Indeed, exclusive consumer research carried out for this report indicates that 40% of mothers do not feel it is important to have at least one family meal together each day. Children are leading complicated lives in terms of out of school activities, which encourages a pattern of eating whenever it is convenient. Older children may be given free choice from the freezer.
Although such trends have boosted children's meal products, growth has been limited by the use of snack foods to replace meals, and some of the most successful products are those which are close to snack foods in terms of preparation time and size, such as frozen potato waffles.
Number of children set to decline to 2003
Figure 2 outlines the population trends among children, with projections to 2003.
Figure 2 Population trends by age of child, 1994-2003
994
998
2003 (proj)
% change
% change
m
m
m
994-98
998-2003
0-4
3,875
3,673
3,547
-5.2
-3.4
5-9
3,829
3,909
3,681
+2.1
-5.8
0-14
3,654
3,790
3,917
+3.7
+3.4
Total 0-14
1,358
1,372
1,145
+0.1
-2.0
Source: ONS/Mintel
The total number of children aged 0-14 is set to fall by 2% between 1998 and 2003, which, theoretically, may cause a fall in demand for child-orientated meals. However, since the decline can partly be attributed to career minded women and couples wanting a higher standard of living, it is possible that the loss will be offset by greater parental affluence, by increasing willingness to satisfy children's tastes and for convenience.
Parents seek a healthy reassurance
Many adult consumers have developed a credit system, whereby healthy eating also allows for indulgence - a trend which can be applied to a child's diet. However, the average school diet has long given cause for concern, with surveys finding that children eat too much 'junk food', saturated fats and not enough fresh fruit and vegetables. Even the most responsible parent can have trouble persuading children to eat well, since 'junk foods', sweets and salty snacks are so widely available.
Trust is a major factor in parental purchasing decisions - they want a credible brand (or own label) which they know will provide protein in an interesting, fun format, for example, fish fingers and chicken nuggets. Children's foods are not overtly marketed as healthy, since manufacturers have the dilemma of wishing to appeal to parental health concerns, while also appearing credible as a product children will enjoy. Healthy eating for children has a somewhat negative image. Health-orientated products in the frozen chips and baked beans sectors have been developed, but tend to be marketed to appeal to a wider audience than just children. Certain processed and frozen foods marketed for children are higher in fat, sugar and salt than unprocessed equivalents, but they can be a useful way of encouraging children to eat a varied diet.
Parents need to be reassured about the food they buy for their children. Pesticides and GM foods are constantly being debated. Leading manufacturers have vowed not to include GM ingredients and many supermarkets have bowed to customer pressure to either implement a ban or clearly label such products.
Pester power
Children are brand and advertising literate, and able to make informed decisions when buying a product, or persuading mum to buy it. Manufacturers and retailers exploit this trend via character merchandising, limited edition foods, novelty value, promotions and advertising. TGI data indicate that virtually all households have a television, with 39% having two or more, and 28% have three or more. Television is a key leisure activity for children, with brands investing heavily in advertising directly to them via this medium, including digital television and dedicated children's channels like the Cartoon Network.
Character merchandising has now firmly crossed over into the food market with products borrowing imagery from films and television, as well as toys and books. It is particularly prevalent in the canned pasta and beans sectors. Merchandising is at a low level in-store, and in some product areas near the checkout when child boredom thresholds are at their most strained and parental resistance may be weakest.
There are five main categories of character merchandising used in food (and other products): traditional cartoons (eg Tom & Jerry), dolls (eg Barbie, Action Man), comics/books (eg Winnie the Pooh), ...
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Character merchandising has now firmly crossed over into the food market with products borrowing imagery from films and television, as well as toys and books. It is particularly prevalent in the canned pasta and beans sectors. Merchandising is at a low level in-store, and in some product areas near the checkout when child boredom thresholds are at their most strained and parental resistance may be weakest.
There are five main categories of character merchandising used in food (and other products): traditional cartoons (eg Tom & Jerry), dolls (eg Barbie, Action Man), comics/books (eg Winnie the Pooh), films (eg Godzilla) and television (eg Street Sharks). Manufacturers may have a range of characters appealing to different age groups, from toddler favourites such as Thomas the Tank Engine and Postman Pat, through to Power Rangers and Street Sharks to Barbie and Action Man, as well as established characters such as Noddy, Sooty and Peter Rabbit, and new characters to appear as part of tie-ins with film launches, such as Batman and Godzilla. Targeting is gender-specific, not only in terms of the characters, but the products themselves
Traditionally associated with canned foods, character merchandising is becoming more widespread. Towards the end of 1998, Hasbro licensed the Action Man logo to Sun Valley Foods and MD Foods to produce an Action Meal, with Action Man shaped chicken nuggets.
Advertising attracts criticism
In May 1999, the government announced a commitment to investigate companies using 'pester power' to gain sales. Ministers are concerned that children as young as three years old are being targeted, and that parents are often 'blackmailed' into buying foods which may be expensive, or high in fat, salt or sugar. The Swedish government has already signalled that it wants a ban on advertising aimed at children when it takes up presidency of the EU in 2001.
In Britain, pressure groups want the new Food Standards Agency, which will be set up to monitor food 'from the plough to the plate' to be given powers to tackle products targeted at children, arguing that there is evidence that manufacturers routinely ignore the codes of the ITC and the ASA. However, the Food & Drink Federation claims that the use of popular characters is designed to help parents by making food attractive to children, while the Advertising Association claims that children are better able to assess commercial communication than has traditionally been recognised.
Kids growing older, younger
The increasing sophistication of children at an ever younger age - a phenomenon known as KGOY - means that manufacturers must constantly work to remain 'in tune' with their target group. Indeed, a fashion element is at work in the character merchandising market. Considerable promotional resources are used by Disney for each new film or video release, and manufacturers with high investment in Disney character merchandising are effectively obliged to remain as up to date as possible. Young girls are particularly fashion conscious and quick to change allegiance. The last few years has seen a quick sequence of female heroines including Ariel (The Little Mermaid), Pocahontas and Anastasia.
In the UK, other innovations to attract children include cross brand use, for example, Mars took its brand into ice cream, followed by a host of other confectionery brands and Young's and KP McVitie's have joined forces to launch Hula Hoops Mealtime Potato Rings.
Out of home eating for children
Eating out has boosted in-home sales of products, such as fast food chicken nuggets as retail responds to trends in the catering sector. The fast food industry has a significant influence upon children's eating patterns and on which meals are deemed suitable for children. Visits to fast food outlets may act as an introduction to nuggets, for example, leading to parental persuasion. The more recent introduction of vegetarian options is likely to encourage children's use.
Growth in avoidance of meat
Although vegetarians still account for just over 5% of the population, those avoiding red meat account for a further 9% - both demonstrating an upward trend. The Vegetarian Society estimates that 40% of the value of vegetarian products are bought by meat eaters, highlighting a mainstream appeal. Women form the largest group of vegetarians, and in addition, almost a quarter of women aged 16-34 are no longer eating red meat. These will be feeding the next generation of children, therefore, the potential for long term establishment of vegetarian foods in children's diets exists. It is most likely that the strongest involvement will be in the meat substitutes sector, rather than the vegetable-based products sector, since children are notoriously unwilling to eat vegetables.
Penetration of children's foods
Figure 3 uses TGI data to outline the household penetration of the children's foods covered by this report, with the exception of snack-size coated poultry and frozen pizzas, for which no data is available.
Figure 3 Usage of children's foods, 1994-98
994
996
998
% point
Base: housewives with
change
children
6,817
6,886
6,815
994-98
%
%
%
Frozen fish fingers
81.8
81.2
80.0
+1.8
Frozen burgers*
80.2
72.4
60.0
-20.2
Frozen chips and
potato products
80.4
83.9
85.8
+5.4
Baked beans
98.0
97.7
97.1
-0.9
Canned pasta
71.7
74.8
73.2
+1.5
* beef burgers for 1994-96, meat burgers for 1998
Taken from the annual TGI survey of around 25,000 adults
Source: TGI, BMRB 1994-98/Mintel
The data portrays a mixed picture, with gains and losses. Burgers have suffered considerably from the BSE scare, although the sector is now making some recovery. Baked beans have a slightly lower penetration than in 1994, but maintain near universal use.
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Market Size and Trends
The market for children's meals is detailed at a total level in Figure 4, and comprises four meal centre products: fish fingers, frozen burgers, child-orientated frozen pizza, and bite-sized poultry products. There are three side of plate products: frozen chips and potato products, baked beans and canned pasta. Data differ from the previous report due to changes in definition and new trade information.
Figure 4 UK retail sales of children's meals in the UK, 1994-99
£m
Index
£m at 1994
Index
€m
Index
prices
994
,014
00
,014
00
,311
00
995
,016
00
978
96
,241
95
996
,004
99
937
92
,252
95
997
,023
01
953
94
,483
13
998
,077
06
995
98
,596
22
999 (est)
,148
13
,051
04
,527
16
Source: Mintel
In real terms, the market has shown a modest 4% growth over the review period. A value decline in 1996 due to a drop in sales of beef burgers following the BSE scare, has since been surmounted.
Figure 5 UK retail value sales of children's meals in the UK, by sector, 1994-98
994
996
998
% change
£m
%
£m
%
£m
%
994-98
Fish fingers
99
0
91
9
98
9
-1.0
Frozen burgers*
70
7
46
5
65
5
-2.9
Coated snack-sized
poultry products**
77
8
89
9
17
1
+51.9
Child-orientated
frozen pizza
89
9
71
7
49
5
-44.9
Frozen chips and
potato products
260
26
304
30
341
32
+31.2
Canned baked beans
222
22
200
20
205
9
-7.7
Canned pasta
97
0
03
0
02
9
+5.2
Total
,014
00
,004
00
,077
00
+6.2
*
incl white and red meat
**
incl shapes as well as nuggets
Data may not equal totals due to rounding
Source: Mintel
The largest product area is frozen chips and potato products, which is also showing one of the highest value growth rates. However, snack-size coated poultry has grown by over 50% in the review period to account for 11% of all sales. Two of the largest sectors, burgers and baked beans, have suffered a drop in value, while child-orientated pizza sales have fallen significantly, to account for a 5% share in 1998.
It is apparent that while total sales of children's meals are largely static in value, there has been considerable variation in the fortunes of each sector within it over the five year period. It is likely that this trend will continue; ie that the popularity of one product will be at the detriment of another, rather than bringing about a significant growth in total sales. This trading off from one product to another is largely due to the constant innovations within the market.
Report Type: AH, MF, MS
Report Code:
07/99
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Children's Foods - UK - July 1999
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Market Segmentation
Fish fingers
One of the earliest sectors to be manufactured with specific child appeal, fish fingers have lost share to products drawing on new shape technology in the fish and poultry sectors. They remain a popular children's food, having a positive image in terms of convenience and nutritional value. The market has, however, suffered from the introduction of economy brands, which have put pressure on value sales.
Figure 6 outlines sales of fish fingers over the last five years. Data have been revised since the last report in view of new trade information.
Figure 6 UK retail sales of fish fingers, 1994-99
£m
Index
£m at 1994
Index
prices
994
99
00
99
00
995
95
96
91
92
996
91
92
85
86
997
93
94
87
88
998
98
99
91
92
999 (est)
05
06
96
97
Source: Mintel
New products take share
Fish fingers were worth nearly £100 million in 1998, equivalent to around 15% of the frozen fish market. A decline early in the decade has been slowed thanks to the growth in children's foods in general and the heavyweight adspend from leading brand, Birds Eye Wall's. Significant raw price increases have bolstered the market, causing a 5% value increase in 1998, while volumes declined. The well established economy sector is now static.
It is not yet possible to fully quantify the market for alternative children's coated fish products, although the sector for speciality breaded fish - including scampi and a wide range of new fish shapes in crumb and batter - grew 16% between 1995 and 1997 to a value of £94 million. New processing machinery has allowed manufacturers to develop new shapes, sometimes based on cartoon characters, and/or including dips. Mothers' positive attitude towards the nutritional value of fish, coupled with children's reluctance to eat fish in its natural state, mean that the children's coated fish sector is likely to continue to develop strongly.
Frozen meat burgers
The BSE crisis had a dramatic effect upon sales of beef burgers, with sales suffering considerably more than sales of other beef products. Since the main crisis in 1996, the market has shown considerable recovery, but is unlikely to ever fully regain its former status in volume terms, since the successful introduction of white meat and other red meat burgers. The burger market is overwhelmingly served by frozen products, as detailed in Figures 7 and 8. Many consumers buy burgers to store at home for a quick children's meal, which mitigates against shorter shelf life products.
Figure 7 UK retail value sales of frozen meat burgers, 1994-99
£m
Index
£m at 1994
Index
prices
994
70
00
70
00
995
77
04
70
00
996
46
86
36
80
997
51
89
41
83
998
65
97
52
89
999 (est)
79
05
64
96
Source: Mintel
The total market for meat burgers is forecast to have recovered sufficiently by the end of 1999 for sales to be 5% above their 1994 level, although in real terms there will a 4% decline over the review period.
Figure 8 UK retail sales of frozen meat burgers, by type, 1994-98
994
996
998
% change
£m
%
£m
%
£m
%
994-98
Red meat burgers
25
74
96
66
04
63
-16.8
White meat burgers
45
26
50
34
61
37
+35.6
Total
70
00
46
00
65
00
-2.9
Source: Mintel
Within the market, white meat is taking an increasing share with lamb and pork burgers also becoming well established. Red meat burgers have shown a good growth level over 1996-98 of around 8%, representing manufacturer and retailer success in restoring consumer confidence. Nevertheless, white meat burgers now account for over one-third of the market.
Quality drives the market
The red meat sector can be further divided into premium, standard and economy. Premium and standard take approximately 45% value share each, while the economy sector accounts for only 10% and is in long term decline. Industry experts suggest that the BSE crisis may have benefited the market in driving the sector upmarket to make it quality-driven rather than value-driven. Consumers are also moving into other sectors such as Added Value Grills, but this is less apparent for children's consumption.
Vegetable burgers are occasionally served to children, although generally, children prefer meat products. The market was worth £39 million in 1997, but has not been included in the definition due to the low take-up among children. However, the potential for growth exists as vegetarianism increases and as meat substitutes become more widely accepted in the diet.
Coated snack-sized poultry products
The children-orientated sector of the processed poultry market has grown strongly throughout the 1990s, with a traditional focus upon chicken nuggets. A range of novelty shapes is now available, including turkey-based nuggets. This sector is, therefore, defined as snack-sized poultry products, although not all will be eaten by children.
Figure 9 details the development of the market over the last five years at a total level .
Figure 9 UK retail value sales of coated snack-sized poultry products, 1994-99
£m
Index
£m at 1994
Index
prices
994
77
00
77
00
995
83
08
80
04
996
89
16
83
08
997
95
23
89
16
998
17
52
08
40
999 (est)
43
86
31
70
Source: Mintel
Momentum boosts the market
The total market has shown good growth, growing 86% in value over the review period to 1999, equating to 70% at 1994 prices. It has shown growth levels of over 20% across 1998-99, as a wider range of products are introduced and the more recent arrival, turkey, becomes more popular. Unlike chicken, it has not been widely used in the fast food or restaurant sector, but it is recognised by consumers as familiar and healthy. During the BSE crisis, sales of turkey products boomed as consumers saw it as a viable alternative. Since then, suppliers have built on this momentum with new flavours and variants. Bernard Matthews has been particularly successful in targeting children with its coated turkey dinosaur shapes.
The market is broken down into types of product in Figure 10.
Figure 10 UK retail value sales of snack-size poultry products, by type, 1998
£m
%
Frozen children's shapes
41
35
Frozen snacks
58
50
Total frozen
99
85
Chilled children's shapes
3
3
Chilled snacks
6
4
Total chilled
9
6
Total
17
00
Data may not equal totals due to rounding
Source: Mintel
Kids' characters lead on
The sector is dominated by frozen lines which accounted for 85% of value sales in 1998, a similar proportion to 1995. Within frozen, children's shapes and licensed characters are valued at £41 million, up 25% on 1997, thereby showing the highest growth rate in the frozen sector. Chilled children's shapes is a relatively small sector, but has considerable potential since it is less value-driven and less orientated towards buying larger quantities. Developments in the chilled sector have included the Sun Valley Action Man Action Meal, although to date this does not appear to have performed well.
Child-orientated frozen pizzas
The frozen pizza market within the scope of this report includes the child-orientated sectors only, multipacks, slices and French bread. These sectors are in steep decline, with growth coming only in the main meal/family sector.
Figure 11 UK retail sales of child-orientated frozen pizzas, 1994-99
£m
Index
£m at 1994
Index
prices
994
89
00
89
00
995
78
88
75
84
996
71
80
66
74
997
57
64
53
60
998
49
55
45
51
999 (est)
43
48
39
44
Source: Mintel
Figure 11 gives sales for child-orientated products at the total level, while Figure 12 breaks the market down by type. Data have been revised in view of new trade information.
Figure 12 UK retail value sales of child-orientated frozen pizza, by type, 1996 and 1998
996
998
% change
£m
%
£m
%
996-98
Multipacks
39
55
24
49
-38.5
French bread
9
27
4
29
-26.3
Slices
7
0
7
4
-
Other*
6
8
4
8
-33.3
Total
71
00
49
00
-31.0
* incl mini-pizzas, pizza squares and pizza novelties
Data may not equal totals due to rounding
Source: Mintel
Victim of price competitiveness
In the five years to 1998, this sector has suffered a value decline of 45% at current prices. Within the market, most segments are in decline, although French bread is relatively stable. Multipacks remain the largest sector, but face a steep decline in 1999, despite the sector's suitability to children's meals in terms of convenience, palatability and nutritional value. There has been little new product development to boost demand and the dominance of own label products has heightened price competitiveness.
Sliced product - where pizza triangles are individually wrapped and boxed - is showing no real growth. In contrast, the main meal/family sector has shown very strong growth of around 300% since 1994 to reach a value of £289 million for 1998. Within the total pizza market, main meal pizzas account for around 80% of value sales, up from 40% in 1993.
Competing with DIY
In practice, parents make use of frozen main meal pizzas and pizza bases for children's meals. Chilled and ambient pizza bases are worth around £12 million each, up by around one third each in the last five years. Although these require more preparation time, they allow for individual taste preferences, in terms of toppings. Children have also been targeted by the home baking sector, with the 1998 launch of Jungle Pizza Pals kit from Spillers Consumer Foods under the Green's brand. The kit contains a pizza mix and tomato topping mix, plus an animal shaped cutter.
Chips and potato products boom
Frozen potato products is one of the fastest growing sectors of the frozen vegetable market. Growth in the early 1990s, however, was partly due to frozen chips being viewed as a commodity item, bringing strong volume growth. Later on in the decade, however, price rises have brought value growth, but to the detriment of volume, specifically of chips. Figure 13 outlines the value of the total market.
Figure 13 UK retail value sales of frozen chips and potato products, 1994-99
£m
Index
£m at
Index
994 prices
994
260
00
260
00
995
274
05
264
02
996
304
17
284
09
997
330
27
308
18
998
341
31
315
21
999 (est)
359
38
329
27
Source: Mintel
Figure 14 shows the split between chips and other potato products.
Figure 14
UK retail sales of the frozen chip and potato products market, by sector, 1994-98
994
996
998
% change
£m
%
£m
%
£m
%
994-98
Chips
87
72
98
65
203
60
+8.6
Waffles
26
0
30
0
35
0
+34.6
Other potato
products
47
8
76
25
03
30
+119.1
Total
260
00
304
00
341
00
+31.2
Data may not equal totals due to rounding
Source: Mintel
Vulnerability to raw material price hikes
The chip sector is particularly vulnerable to changes in raw material prices; a strong deflation in 1997 was followed by a successful recovery in 1998 when prices rose and added value products became more popular. Potato price rises in 1999 have affected volumes detrimentally, with manufacturers reluctant to promote, while value has again increased.
The chips are down
At the beginning of the decade, frozen chips accounted for virtually all of the market, but the dominance has been worn down by alternatives as indicated in Figure 14. Within the chip sector, microwaveable and coated lines with different cuts have added value, now accounting for nearly one quarter of value sales (not tabulated). Friable chips are now a relatively small sub-sector at just over one quarter of value, previously having dominated the market. Oven chips account for over half of sales (not tabulated) and are popular from a convenience and health angle. In general, chips are marketed as a family product, whereas a number of potato products are directed specifically at children.
Innovation bolsters growth
Potato price rises tend to shift sales towards added value potato products, away from chips. In addition, the sector has experienced a high level of innovation.
Waffles have become an established sector - due primarily to high levels of support from the brand leader, Birds Eye Wall's - and grew in value by over one third between 1994 and 1998. A range of own label versions is now available, although these have seen a decline over the last year, as retailers give shelf space to new products. Waffles appeal to adults and children, although there has been innovation to target children specifically, with the introduction of shaped items.
Growth in other potato products has been even better, although not all of these are targeted at children. Child-specific varieties were estimated to be worth around £20 million in 1998. Even before the introduction of Young's Hula Hoops in 1998, the sector was already showing one of the highest growth rates in the market. With the new product, the growth rate for 1998 was 65% in value.
Beanz meanz...
Baked beans hold approximately 93% household penetration according to TGI and are, therefore, a family food rather than child-specific. However, baked beans often form a staple part of children's diets, with parents perceiving a healthy and convenient product favoured by children. Figure 15 outlines retail sales of baked beans over the review period.
Figure 15 UK retail sales of baked beans, 1994-99
£m
Index
£m at 1994
Index
prices
994
222
00
222
00
995
210
95
202
91
996
200
90
87
84
997
98
89
85
83
998
205
92
89
85
999 (est)
213
96
95
88
Source: Mintel
In 1998, the baked bean market was worth only 85% of its 1994 value in real terms, but has shown some recovery with sales estimated to be up around 4% between 1997 and 1998. Market value was hit in the mid 1990s by deep price cuts from manufacturers and retailers. The heavy discounting drove Crosse & Blackwell out of the market in 1995. In that year, prices fell as low as 3p per can for budget lines, and one supermarket paid people for each tin they took away. Only the market leader, Heinz, maintained its price during the 'price war' . During 1996-97, prices gradually rose back to market levels, but volume sales returned to the pre-price war decline. As a children's food, baked beans have suffered from competition, but still remain a store cupboard item.
... adding value
The value of standard beans grew by less than 3% in 1998, representing a stability relative to the previous two years when it declined by around 8%. The added ingredients sector accounts for the majority of sales growth, rising 6% in 1998 to a value of £42 million, equivalent to 20% of the market. However, much of this growth was due to the introduction of adult-orientated meals including the HP breakfast range, and the child-orientated sector is thought to be stable at best. The softer consistency of bean meals are traditionally popular with children. However, their appeal is being eroded by the added convenience of ready meals. NPD has added vegetarian sausages, bacon and chicken nuggets to the traditional baked beans with sausages.
Canned pasta
Not all canned pasta products are targeted at children, but many do so with character shapes and marketing. Despite small increases throughout the 1990s, the sector has struggled to innovate and maintain consumer interest. Sales for 1999 are estimated to be worth the equivalent of 1994 in real terms, as shown in Figure 16.
Figure 16 UK retail sales of canned pasta, 1994-99
£m
Index
£m at 1994
Index
prices
994
97
00
97
00
995
99
02
95
98
996
03
06
96
99
997
99
02
92
95
998
02
05
94
97
999 (est)
06
09
97
00
Source: Mintel
Scarce adult interest, strong character merchandising
The success of dried and fresh pasta has kept adult interest away from the canned variety, meaning the future of the market is almost entirely with children. Within this market, meals account for around 57% of value sales, and one third of volume. The sector comprises well established non-child specific ranges such as ravioli, spaghetti bolognese and macaroni cheese, plus spaghetti and sausages, hoops and hot dogs, which are more specifically targeted at children. These child-orientated meals were worth £11-12 million in 1998, and are growing at a faster rate than traditional meals such as macaroni cheese, which is in severe long term decline, accounting for less than 5% value of the sector.
Within the pasta-only sector, traditional spaghetti in tomato sauce is the leader, at around one quarter of total canned pasta value sales, but is in decline.
Pasta shapes reflect a similar market size to the pasta only sector. Character merchandising is also present in the pasta meals sector, Mintel estimates the character merchandised canned pasta market was worth around £30 million in 1998.
Economy products are also available in the canned pasta sector, although there are no data for children's consumption. Economy own label spaghetti can cost as little as 9p a can.
Developing sectors
Clearly, children eat a wider range of products than those directly marketed towards them. However, certain sub-sectors of existing markets are extending their focus towards a younger market - the most significant of which are sausages and vegetarian foods.
The market for sausages is buoyant, worth an estimated £521 million in 1997, a growth of 23% since 1992, and well over 5% in 1998. There is a trend towards premium sausages, including products targeted specifically at children; during 1999 Kerry Foods launched Banger Bombs and Wigglies.
Vegetarian foods are also performing well. The market can be divided into meat substitutes and vegetable-based foods; the former was worth £103 million in 1997, up 12% on the previous year, and is likely to have grown by a similar amount in 1998. Children are particularly targeted by the comminutes sector, worth £67 million in 1997, up 47% in two years, rather than the smaller ingredients sector. The vegetable-based sector grew 8% in 1997 to a value of £40 million. Children may be less likely to eat these products due to a natural aversion to vegetables, and growth has slowed in recent years as meat substitutes enter the mainstream market.
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Report Code:
07/99
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Company Perfromance and Strategy
Companies and brands
Birds Eye Wall's is the key manufacturer active in a number of children's meals markets, with products in the potato products, burgers, coated snack-size poultry and fish finger sectors. United Biscuits Frozen and Chilled Foods has divided its business into Young's for seafood - including fish fingers - and McVitie's Prepared Foods for pizza, desserts, potato products and the Linda McCartney range. McCain Foods is also involved in more than one frozen children's meals sector, with chips and potato products as well as pizza. Within the canned food sectors covered by this report, both Heinz and HP Foods are notable brands, although the former is more significant in both areas.
Fish fingers
Figure 17 outlines market shares for fish fingers.
Figure 17 Manufacturers' shares of the UK frozen fish finger market, 1996 and 1998
996
998
% point change
£m
%
£m
%
996-98
Birds Eye Wall's
56
61
62
63
+2
UBFCF
6
7
2
2
-5
Other brands
2
2
-1
Own label
27
30
33
34
+4
Total
91
00
98
00
-
Data may not equal totals due to rounding
Source: Mintel
Birds Eye has maintained its market leadership despite the decline in value of the sector earlier in the decade and the continuing volume falls. However, smaller brands have suffered, and the market is now dominated by the brand leader and own label.
The main brands in the market are detailed next:
Birds Eye Wall's
Part of Unilever, Birds Eye Wall's has a strong interest in the children's meals market. It is particularly well known for its fish fingers brand, which includes Birds Eye Cod Fillet Fish Fingers, Value Fish Fingers, Batter Fillet Fish Fingers and Haddock Fish Fingers. The company's portfolio also includes other child-orientated fish products, specifically Crispy Dip-ins and Captain's Coins, which are cod cakes.
The company has revamped its famous Captain Birds Eye, changing the bearded character for a younger actor. The image was introduced on pack, on television and in the press from March 1998 with a £2.6 million campaign. There are now three different executions, all of which are primarily aimed at children, with the addition of a nutritional and quality message to mothers. In 1999, some adspend was diverted outside of its traditional television focus to cinema and press, via comic activity, and to direct marketing.
United Biscuits Frozen and Chilled Foods
Young's is a subsidiary of UBFCF, and is one of the UK's leading fish companies, operating in the fresh, frozen and ready meals sector of the fish market. In 1997, Young's introduced a number of microwaveable products aimed at teenagers: Dip & Crunch - battered cod pieces with pots of dips; Cod Dog - a battered cod finger with tomato sauce in a hot dog bun; and Crunchables - 'jumbo' fish finger-style products in a ready-salted or salt and vinegar crumb.
Bernard Matthews
This company entered the market for the first time in 1997 with Golden Fishies.
Own label
Own label product is strong, with economy versions costing as little as 15p per 100gm compared to around 44p for the standard Birds Eye product. Novelty fish shapes have also been developed by the grocery multiples. In 1998, for example, Safeway launched Shark Attack shark shaped fish pieces in breadcrumbs with a portion of chips in a boat shaped tray. In the previous year, M&S used Tweety on cod nuggets, and dinosaur shapes for cod fillets using Lost World marketing.
Frozen burgers
Figure 18 gives brand shares in the frozen red meat burger market; data are not available for the white meat burger sector.
Figure 18 Manufacturers' shares of the UK frozen red meat burger market, 1994-98
994
996
998
% point change
£m
%
£m
%
£m
%
994-98
Birds Eye Wall's
61
49
46
48
47
45
-4
Dalepak/Ross
4
1
0
0
7
7
-4
Other brands
5
4
4
4
5
5
+1
Own label
45
36
36
38
45
43
+7
Total
25
00
96
00
04
00
-
Source: Mintel
The Birds Eye brand continues to account for nearly half the market, but has lost share to own label which accounts for an even greater share of volume, due to the inclusion of economy lines. The Ross brand was sold to Dalepak several years ago and has suffered from changes of ownership and positioning, losing share to own label.
The move upmarket, away from economy lines, has resulted in a rationalisation of the burger fixture in multiples, and a core range is now more likely than brand switching. NPD has been focussed on larger, more premium products, such as Bird's Eye Mega Burgers, which were launched in 1997.
The major manufacturers are detailed next:
Birds Eye Wall's
The company has a wide range of beef, lamb and pork products. Its Original and Best beef burgers are the most well established, and, because of the 2oz size, the most popular for children. Ranges include beef, lamb, and pork quarterpounders, 100 Percenters (targeted at women), and Mega Burgers (targeted as 'big eats'). Pork Quarterpounders were introduced in 1996, followed by Mega Burgers in 1997, designed to create strong volume growth.
During the worst of the BSE crisis, Birds Eye halted production and destroyed an estimated £15 million worth of British beef destined for burger manufacture. Having re-established retailer trust and put in place its 'Commitment to Quality' symbol, the company began a burger-specific campaign in 1998, using television for the first time in five years, plus women's magazines, to publicise the re-launch of its range. The magazine campaign specifically targeted mothers, and was run in 1998 and in June/July 1999.
The television campaign is a rework of the classic 'Ben and Mary' advertisements of the 1970s, which starred two children who bantered over their burgers. The new family focused campaign, featuring a girl playing football, and backed by an initial £2 million spend was the first for Birds Eye beef burgers for four years and emphasises that the burgers 'taste as good today as they always did'. There has been further support in 1999 with a second version featuring two children who are arm wrestling over a burger, with a £1.5 million spend.
Dalepak
The company is stronger in the grills market than in burgers, but with the addition of the Ross brand name now has a wider portfolio: Gold Beef Burgers, Dalepak Beef and Lamb Quarterpounders, Sandwich Burgers, Chilli Beef Quarterpounders, and - new in 1999 - Flamegrilled 2oz Beef Burgers. It also has Ross Economy Burgers, Lamb Quarterpounders and Bacon Burgers.
Dalepak Gold were introduced in 1997 as premium products with endorsements from the Scotch Quality Beef & Lamb Association and the MLC. The 1999 introduction of Flamegrilled Burgers has been supported in-store and via mailings to consumers.
In 1998, the company launched a range of children's meals including Voyagers sausage flavour mini-pork burgers, as well as Cheesy Potato Mini-waffles, and Jungle Bites which are cheese and ham animal shapes. It used a Kids Club token system with free fact sheets, lunchboxes, caps and toys. However, the range was discontinued early in 1998 due to poor sales.
Other brands
In 1998, organic meat burgers were introduced by Pure Organics under the Hula brand name, in beef and lamb varieties. They are aimed at children, with a hole in the middle of each burger.
Own label
The main emphasis in own label launches has been upon quality ingredients. In 1998, Asda launched Prime Beef Burgers, described as 100% Scotch beef. Kwik Save introduced Quarter Pound Beef Burgers promoted as British beef of quality standard from prime cattle under 30 months old, and as offal free. Sainsbury's launched Homestyle Quarter Pounders, made from a minimum of 80% prime beef and said to be made with regular cuts from prime young beef under 30 months old.
Coated snack-sized poultry
Figure 19 outlines manufacturers' shares of the coated snacks and shaped poultry market in 1998. Historical data are not available.
Figure 19 Manufacturers' shares of the UK coated snack-sized poultry market, 1998
£m
%
Birds Eye Wall's
28
24
Bernard Matthews
26
22
Front Line Foods (Buxted)
6
5
Other brands
9
8
Own label
48
41
Total
17
00
Source: Mintel
Birds Eye Wall's is the market leader, due to the tremendous success of its Chicken Dippers, which it claims is the best selling poultry product for children. Bernard Matthews has established itself successfully, via turkey-based products, including Dinosaur Shapes. Although own label has a significant share of the market, it has, in fact, lost share in a reversal of traditional market development; own label spearheaded the sector until it was sufficiently large to attract major branded interest.
Until 1995, Buxted (now Front Line Foods) was the only significant branded manufacturer, and was one of the first to sign a licensing deal with Warner Bros in 1996. However, in 1995-96, a number of new manufacturers entered the market including Birds Eye Wall's, Sun Valley Foods and Bernard Matthews. Within the child-specific shapes sector of the market, Bernard Matthews is the major manufacturer, as illustrated in Figure 20.
Figure 20
Manufacturers' shares of the UK frozen child-specific coated shapes poultry market, 1998
£m
%
Bernard Matthews
25
61
Birds Eye Wall's
7
7
Front Line Foods (Buxted)
2
5
Grampian
2
Other brands
2
Own label
5
2
Total
41
00
Source: Mintel
The major manufacturers in the market are now detailed:
Birds Eye Wall's
Birds Eye Wall's is a significant player in the further processed poultry market; its Chicken Dippers are one of its best selling added value chicken lines. A Cheesy variety, made from chicken, turkey and cheese was added in the Autumn of 1998, with a £2.2 million advertising campaign for the total Dippers range. The adverts aim to communicate fun and good quality, 'Real Food for Real Families'. The campaign is ongoing, although not on air in 1999.
The Birds Eye range also includes Chick Sticks and Chicken Burgers, which the company feels have similar usage occasions. It also produces Southern Fried Chicken Nuggets, which are more adult-orientated in flavour. Promotions tend to be extra volume rather than price.
Bernard Matthews
Well known for turkey products, the company has extended into the children's meals market with turkey-based versions of child-orientated chicken products. Golden Drummers, Dinosaurs and Twizzlers have performed well. The company has also introduced Footballers, breaded turkey meat in footballer shapes. In 1998, it re-launched its dinosaur-shaped breaded turkey pieces and introduced a pterodactyl shape. In 1999, the company also introduced a foodservice product called Turkey 2000 - shaped turkey pieces covered in breadcrumbs - following requests from school catering organisations.
Front Line Foods
Buxted Foods split from Hillsdown in October 1998, and was bought by Unigate in April 1999. The new company retains the Buxted brand name for processed chicken. Although not a major brand in the market, Buxted was an innovator in this sector by signing a licensing deal with Warner Bros in 1996. The company has since produced lines based around characters such as Bugs Bunny, Daffy Duck and Tweety Pie. In 1997, it introduced a Good Value range of frozen chicken products including Chicken Nuggets in Breadcrumbs and Crispy Crumb Chicken Burger. It does not advertise its products above the line.
Other brands
In 1998, Sun Valley launched Action Man Action Meal, comprising fresh coated chicken men and motorbike shapes, oven chips and a collectable Action Man tag. Its key target group is boys aged 4-10 years. Support included advertisements on satellite and cable television, in comics and via direct mail. However, the product is not thought to have performed particularly well to date.
Grampian Country Food Group has one product in the market, Chicken in the Jungle, which has performed well.
Convenience remains paramount; in 1997, Webbs Country Foods introduced Snack Express, claiming to be the first microwaveable chicken nuggets which remain crispy.
Own label
In 1998, M&S introduced St Michael chicken nuggets marketed using character merchandising from the Godzilla film, with an onpack flash suggesting that the packaging can be re-used as a novelty jelly mould. In 1999, M&S has been active in promoting a range of chilled foods for children called (Not So) Square Meals for Kids, which includes chicken Twisties and chips.
Frozen pizzas
The data shown in Figure 21 give the market shares for the total frozen pizza market. Separate data on the child orientated sector are not available.
Figure 21 Manufacturers' shares of the total UK frozen pizza market, 1994-98
994
996
998
% point
change
£m
%
£m
%
£m
%
994-98
Schwan's
9
5
26
1
55
5
+10
UBFCF
33
8
36
5
47
3
-5
McCain
26
4
31
3
44
2
-2
Green Isle (Goodfellas)
-
-
9
8
36
0
na
Heinz
-
-
-
-
8
5
na
Nestlè
7
9
2
5
4
4
-5
Other brands
30
6
22
9
5
4
-12
Own label
70
38
94
39
34
37
-1
Total
85
00
240
00
363
00
-
Source: Mintel
Schwan's Europe Ltd is the UK trading company of US-based Schwan's Enterprises and produces the Chicago Town brand, which it claims is the leading UK brand. It is primarily concerned, however, with the adult sector; although it does have single serve Chicago Town pizzas, these are deep pan rather than the traditional 'grill' style directed at children. The 'grills' or multipack sector is primarily own label and UB Frozen and Chilled Foods, with the Ross and San Marco brands, while the French bread sector is virtually all Nestlè, with its Crosse & Blackwell range, previously Findus.
UBFCF was the market leader in 1996, but has lost share as newer brands have emerged and own label penetration has risen. Own label reached a high of 41% in 1995 (not tabulated), and has since declined slightly.
The key manufacturers in the children's pizza market are detailed next:
United Biscuits Frozen and Chilled Foods
The McVitie's Prepared Foods division of UBFCF produces both branded and own label product, including standard Ross 'grills' in packs of four and nine, and San Marco and Ross slices in packs of four. New product development is planned for mid 1999.
McCain Food GB
A division of the Canadian food multinational, McCain Food GB is the only major pizza supplier which does not manufacture own label pizza. In early 1998, the company adopted an advertising strategy involving a consistent creative approach for its pizza and frozen chips products, which it sees as complementary. Accordingly, it has merged its advertising accounts into one agency. In 1999, the focus fell on its 'Surprisingly good for you' 9" and 11" pizzas, which have a close positioning to its oven chips. It also has a 9" Delivery Pizza with a rising crust, which at a slightly higher price is less likely to be of family interest, which was advertised in 1998. It does manufacture a small number of multipacks, but this is a very minor part of its business. The company has targeted children in the past, but now tends to be more family orientated.
Nestlè
Nestlè has produced the Findus brand of frozen French bread pizza for many years, but has recently changed the branding to Crosse & Blackwell. At the time of writing, discussions about the future of the company's frozen food business were underway.
Other brands
The Heinz pizza is not included in this report as a children's food due to its main meal size, but it is clearly of interest to children as well as adults, given that it combines two of their favourite foods. Heinz Baked Beans Pizza was launched in 1995, in Two Cheese and Sausage varieties. These were followed by Spaghetti Hoops and Flipper Pizza, both cheese and tomato pizzas with pasta shapes.
It is likely that in the longer term, the definition of what constitutes a child-orientated pizza will alter, following the market changes which have led the category to become a quality main-meal selection. It is thought that larger and even chilled pizzas will be targeted at older children at least. Early in 1999, Canadian Pizza (UK) teamed up with Manchester United to launch three pizzas using the club's livery. Super Match consists of two 9" chilled pizzas in one pack; a Deep Dish Pepperoni and a Thin and Crispy Margherita, after research which showed that the former would to appeal to older children and the latter to younger. Two frozen pizza were also introduced; a 12" Meat Feast and Siciliano. Support includes advertisements on Manchester United TV, plus on-pack promotions offering the chance to win a VIP day at Old Trafford.
Own label
The children's sector as defined by this report, is heavily dominated by own label product. Economy versions are also produced, with retailers offering ten for 99 pence for a standard cheese and tomato variety.
Frozen chips and potato products
Figure 22 gives brand shares in the frozen chip market, which is quite distinct from the frozen potato products market (Figure 23) in terms of manufacturer involvement.
Figure 22 Manufacturers' shares in the UK frozen chips market, by value, 1994-98
994
996
998
% point
change
£m
%
£m
%
£m
%
994-98
McCain
71
38
69
35
73
36
-2
UBFCF
1
6
4
7
4
7
+1
Other brands
22
2
20
0
8
9
-3
Own label
83
44
95
48
98
48
+4
Total
87
00
98
00
203
00
-
Source: Mintel
Figure 23
Manufacturers' shares in the UK frozen potato products market, by value, 1994-98
994
996
998
% point
change
£m
%
£m
%
£m
%
994-98
Birds Eye Wall's
33
45
46
43
55
40
-5
UBFCF
na
na
na
na
7
5
na
McCain
na
na
4
4
1
8
na
Others*
4
9
9
8
6
4
-15
Own label
26
36
47
44
59
43
+7
Total
73
00
06
00
38
00
-
* incl UB and McCain for 1994 and UB for 1996
Data may not equal totals due to rounding
Source: Mintel
While own label has developed well in both chips and other potato products, the major manufacturers have also contributed to market success by their significant promotional support and advertisement. McCain has been a heavy television advertiser for its chips, while Birds Eye's promotion of its potato waffle, helped to familiarise consumers with the product. While McCain is the major manufacturer in the chip sector, it has a small presence in the potato products market, where Birds Eye Wall's is the most significant player. However, Birds Eye Wall's has lost share, most notably due to the success of Hula Hoops from UBFCF and Smiles from McCain, which have also caused a slight decline in own label share from 1996-98.
Within the waffles sector, Birds Eye is the brand leader, accounting for around two thirds of sales with the remainder being taken by own label. Within the child-orientated potato products sector, Birds Eye and McCain each account for around one-third of value sales, and UB for around one quarter, with Hula Hoops. Own label is very small, at under 10%.
The major manufacturers are detailed next:
McCain Foods
McCain is the major brand in frozen chips, with products including oven chips, Southern Fries, Home Fries, Stringfellows and Micro Chips. It is a relatively small player in the children's potato product sector, where it has Smiles, a face shaped coated potato, and one of its House of Horror products, bite-sized horror shapes for children. The House of Horrors product was launched in 1998, with all its products suitable for oven cooking for convenience. In the same year, the company launched Hoops.
In 1998, the company launched its first umbrella brand television advertising campaign for its frozen chip and pizza brands with a £12 million spend, with the theme 'giving in to temptation' and the endline 'McCain - you just can't help yourself'. It also ran advertisements in the women's style press for the first time. During 1999, the company re-launched its market-leading Oven Chips with a £6.5 million campaign. The copy line is 'Surprisingly good for you!', with healthy facts on pack.
McCain introduced the first microwaveable chips in the 1980s. Its Micro Chips are aimed at older children and young adults, although the latter are the main focus. The brand now includes straight chips and crinkle chips, both were re-launched in 1998 with improved texture, colour and size, and redesigned packs. A new on-pack message states 'Surprisingly good for you!'. In 1998, television advertisements focused on the brand as a hot, satisfying quick snack.
McCain's potato products tend to be promoted via keen pricing rather than advertising or in-store promotions.
Birds Eye Wall's
Birds Eye Wall's is the major brand in the potato products sector. It has a specific children's brand, Alphabites, and its Potato Waffles are popular with children. The product range includes Potato Fritters, Hungry Joes and Croquettes. Company sources claim Potato Waffles are the second biggest frozen food product on the market (after Birds Eye 2lb Garden Peas), and it gave the product a new crispier recipe in 1998. The relaunch was supported with a £1 million television advertising campaign in 1998 and 1999. Company sources say the object of the relaunch is to increase adult consumption. Alphabites benefited from two onpack promotions in 1998 to generate trial among new mums; in April, it offered Letterland books, and in August it linked up with Legoland to offer half price children's tickets and a chance to win a holiday in California. Both promotions were supported in the consumer press and direct mail.
UB Frozen and Chilled Foods
Using the Young's name, United Biscuits' McVitie's Prepared Foods division has a presence in both the chip and potato products sectors. In 1998, the company linked with KP McVitie's to launch Hula Hoops Mealtime Potato Rings, comprising of potato covered in a crispy coating in the shape of the Hula Hoops snack. The product can be baked, grilled or fried. It had an introductory price of 99p, and high rates of trial, but it is thought that since it moved to £1.99, its sales have declined.
Own label
Own label accounts for nearly half of all sales of chips and potato products. Chip ranges include both oven and fry varieties, and economy lines. Own brand marketing has been responsible for some aggressive pricing in the chip sector.
In 1998, Safeway launched own label seasoned battered Potato Fingers, Sainsbury's introduced crispy potato shapes in Mr Men and Little Miss cartoon shapes, and M&S developed Cheeky Monkey and Family Mashed Potato Shapes. In 1998, Asda brought in Potato Number Crunchies, number shapes which can be fried or oven baked Mini Waffles either plain or flavoured with ketchup or salt and vinegar were introduced later.
Baked beans
Figure 24 outlines brand shares in the baked beans market.
Figure 24 Brand shares in the UK baked beans market, 1994-98
994
996
998
% point
change
£m
%
£m
%
£m
%
994-98
Heinz
22
55
06
53
09
53
-2
HP
3
6
2
6
2
6
-
Other brands
8
8
4
7
2
6
-2
Own label
69
31
68
34
72
35
+4
Total
222
00
200
00
205
00
-
Source: Mintel
Despite price wars and in-roads of own label, Heinz has maintained over half of the market in value terms, demonstrating branded strength over very low priced alternatives. Own label share reached 35% in 1995 (not tabulated) at the height of the price wars, fell back in 1996 and 1997, but increased again in 1998. It includes a number of economy brands, which at 9p a can are still sold at below cost price, and which account for around 30% of volume sales.
Within the beans meals segment, Heinz has a similar dominant position. HP has a slightly greater share at around 10% because of recent NPD, while the remainder is primarily own label, including economy, plus Princes.
The key brands in the market are detailed next:
HJ Heinz
Heinz beans are one of the most brand-loyal food products on the market. The company has a number of products in its beans range designed to appeal to children or adults, including reduced salt and sugar products, and the adult Weight Watchers brand. There is limited use of character merchandising with the Thomas the Tank Engine range.
The company is also active in the added value baked beans sector, with pork sausage, vegetable sausage, bacon and chicken nuggets additions. Its pepperoni variety has been withdrawn. These meals are clearly packaged in the distinctive turquoise Heinz livery of the main baked beans brand. Heinz also produces an additional beans meals range, using Taz onpack, licensed from Warner Bros. This range includes beans with mini pork sausages, and with bacon, and is clearly targeted at children aged from three years to teenagers.
Early in 1999, Heinz launched a special version of its baked beans designed for babies. First Heinz is designed for babies from seven months to five years, and is slightly mashed to make it easier to swallow. The range includes beans with vegetables, bacon, sausage or potatoes.
Heinz baked beans had significant support in 1998 with a doorstep challenge, designed to 'jolt' consumers out of established purchasing habits. Following a leaflet drop to 800,000 households, 15 teams visited homes rewarding Heinz purchasers with promotional merchandise, and swapping own label product with Heinz. In-store promotions were carried out at the same time. A television advert, 'Toast to life', was used to evoke trust and emotional brand ties. Children are seen in the advert, but the target is adults. Baked beans with added ingredients do not receive direct advertising support, but tend to benefit from main brand advertising, while often being promoted at the same time via BOGOFs and other heavyweight promotions.
HL Foods
Part of Hillsdown Holdings, HL Foods is a supplier of own label canned beans and pasta. The company also produces for HP, the second brand in the baked beans market, but considerably smaller than brand leader, Heinz.
During 1997, the HP brand launched several added value baked bean products, including chicken nuggets for children. In 1998, HP set up a licensing agreement with Match magazine, in a move which is thought to be the first time a publication has been linked with a specially created range of food. The range includes Baked Beans with Pork Meatballs, as well as Pasta Shapes in Tomato Sauce. Children can save tokens from can labels to collect posters of footballers. The labels are also printed with football trivia.
HP has introduced adult orientated breakfast products, which have grown the market for beans with added ingredients but to the detriment of beans with sausage.
Other brands
Organic Valley Foods launched organic baked beans specifically aimed at children in 1998. However, clearly not all NPD in the baked beans market is directed at children; for example, fresh baked beans were introduced by The New Covent Garden Company , in 1997, retailing at a premium.
Own label
Own label product is very evident in this sector, despite the high brand loyalty afforded to Heinz. Standard, economy and additions varieties are all available, with economy beans costing as little as 9p a can.
Canned pasta
Figure 25 outlines brand shares in the canned pasta market.
Figure 25 Manufacturers' shares in the UK canned pasta market, 1994-98
994
996
998
% point
change
£m
%
£m
%
£m
%
994-98
Heinz
55
56
58
56
56
55
-1
HP Foods
7
8
8
7
9
9
+1
Other brands
3
3
3
3
2
2
-1
Own label
22
23
24
23
25
24
+1
Total
97
00
03
00
02
00
-
Data may not equal totals due to rounding
Source: Mintel
Heinz continues to dominate the canned pasta sector, with total level shares remaining constant. There has been a small increase in own label to account for just under one quarter of the market. Within the character merchandised sector, which is the most strongly child-oriented, HP is relatively strong, with an estimated share of around one third against 60% for Heinz (not tabulated). This percentage, however, varies considerably depending upon launch timings, and the support different characters receive elsewhere. Own label is relatively weak in this area, with a share of around 6%, since it has few strong characters apart from the Sainsbury's Mr Men range. In contrast, in 1998 alone, Heinz used Action Man, Barbie, Sooty, Teletubbies, Noddy and Peter Rabbit, while HP Foods used Barney, Godzilla, Tom & Jerry, Batman & Robin, Postman Pat, Power Rangers, and Street Sharks.
Within the canned pasta with added ingredients sector, Heinz is the dominant brand, with around 60% of the market in value terms. HP has around 2% and Princes a similar amount, with the remainder accounted for by own label.
The major manufacturers are now detailed:
HJ Heinz
The company makes considerable use of character merchandising to appeal to children as stated previously. Within the added ingredients sector, it has traditional meals such as ravioli and also more child-specific products including Spaghetti & Sausages, Spaghetti with Chicken Meatballs, Hoops & Hot Dogs, and Pasta Shells with Tuna. It also uses licensed products, for its 200gm size only; Thomas the Tank Engine shapes and sausages have been available for some time, while Teletubbies shapes and sausages were introduced in 1999.
HP Foods
HP also has a portfolio of character pasta shapes to appeal to a wide range of age groups. It has Postman Pat as a core character, with Tom & Jerry as a long-term licence. In 1998, it added Barney and Animal Hospital to its core range on a two year licence. Other characters in use include Tots TV, My Little Pony and Tactics. The latter replaces Match as a football character pasta and is the first non-licensed children's range. HP Foods also has Godzilla and Power Rangers on short term contracts, likely soon to be replaced by other film contracts. Its 1999 launch of Tactics and My Little Pony have been supported by on-pack promotions to win merchandise.
In 1997, HP entered the added ingredients sector with canned pasta shapes with chicken nuggets in the shape of shark fins under the Street Sharks name. Tom & Jerry pasta with mini pork sausages and with pork meat balls was introduced in 1998. In 1999, HP produces Postman Pat pasta with chicken nuggets, and added Cheesy Chunks to the Tom & Jerry range in June 1999.
Other product areas
Activity in the children's meals market not included in the previous sections is detailed next:
In 1999, Kerry Foods launched three new products: Banger Bombs, which are smokey bacon flavour half size sausages; Wigglies, extra long and thin 6" pork sausages filled with a tomato sauce; and a barbecue sausage specially for children, which is smaller than the adult version, with a mild barbecue flavour. In 1998, the company introduced Thomas the Tank Engine skinless mini sausages.
Ready meal launches for children include the Sun Valley Foods Action Meal, and Cooks range of five Crafty Kid's Meals including Burger in a Bun, Chicken Nuggets, and Cod Bites. All come with chips and beans and are microwaveable. M&S has a range of children's meals merchandised together in store under the (Not So) Square Meals for Kids name. As well as Chicken Twistees, the range includes Meatball Island, Funky Feet (potato and cheese), Whizzy Wheels, (pasta), Shepherds Pie and Saucy Spirals (pasta).
A range of organic meat and meat-free lines for children was introduced by Pure Organics in 1998 comprising: Hulas, meat burgers with holes in the middle: Veggie Beany, meat-free burgers made with organic soya protein and Barmy Bangers. In 1998, Marlow Foods introduced two meat-free products aimed at children; Quorn Dippers which are nuggets covered in batter, and Quorn Chompers, mini meat-free sausages. Both products are frozen and low in fat and cholesterol, with on-pack graphics designed to appeal to children. In the same year, Goodlife Foods introduced Thunderbirds FAB vegetable shapes, which are vegetables with tomato sauce covered with a golden crumb in shapes taken from the cult children's television series. Marr Foods introduced frozen tuna burgers aimed at children under its new Buccaneer label in 1998.
Another emerging sector is the lunchbox market. Although many products targeted at children's lunchboxes are snacks, manufacturers are also looking for substantial items. Innovations in this area include Kraft Jacob Suchard's Dairylea Lunchables, which comprise cheese slices, crackers and slices of chicken, turkey or ham. John West launched Lunch Kits in 1996, which comprise a ring-pull of tuna in sauce and crackers.
For less than eight months of 1997, Iceland had a range of frozen vegetables designed to attract children's interest. The range comprised baked bean-flavoured peas, cheese and onion cauliflower florets, pizza sweetcorn and chocolate carrots. Attracting a high level of media criticism, the range was ultimately withdrawn.
Some supermarket chains have experimented with schemes to promote fruit and vegetables to children, for example, packs of small apples and bananas decorated with cartoon characters.
A Mars future?
Early in 1999, Mars was reported to be working on a children's food range known as Project Team. The launch, still at concept stage, is by Mars Pedigree Masterfoods division. Due out next year, the range is likely to involve food and drink products from ready meals to soft drinks and snacks, targeted at pre-teen children, possibly with a healthy positioning. Such a development would, no doubt, be heavily supported.
Report Type: AH, MF, MS
Report Code:
07/99
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Children's Foods - UK - July 1999
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Advertising and Promotion
Figure 26 details advertising investment as recorded by MMS.
Figure 26 Main monitored media advertising expenditure on children's meals*,1994-98
£m
Index
994
7.2
00
995
9.7
35
996
0.1
40
997
1.3
57
998
21.2
294
*spend on child-orientated meals as defined by this report; ie not all spend is directly targeted at children or parents buying for children
Source: MMS/Mintel
At a total level, spend is a low proportion of sales. It is also concentrated into certain categories, specifically chips and potato products. Increased support for poultry, beans, potato products and canned pasta caused the upsurge in spend in 1998.
Figure 27 Proportion of advertising expenditure on selected children's meals, 1998
998
£m
%
Fish fingers
2.3
1
Frozen burgers
.7
8
Frozen snack size poultry
3.6
7
Chips and potato products
9.5
45
Baked beans
2.8
3
Canned pasta
.3
6
Total
21.2
00
Data may not equal totals due to rounding
Source: MMS/Mintel
Within most sectors, one major manufacturer has provided most of the market support. The largest advertising spend for each year under review was for chips and potato products, with McCain providing the major spend, both on its standard chips and for MicroChips. Birds Eye Wall's has provided the main support in fish fingers, burgers and snack size coated poultry, although Bernard Matthews provided a significant level of support for Golden Drummers in 1998. The burger market was also supported by the MLC in 1997 and Birds Eye Wall's, following the BSE crisis.
Heinz is the main supporter of the canned beans and pasta sectors, with a significant spend for baked beans in 1997 and 1998. Its support for canned pasta in the last three years has included a small spend specifically for particular character merchandised varieties, including Thomas the Tank Engine in 1996/98 and Barbie in 1997. HP Foods has provided a very low level of advertising investment, but had a slightly greater spend in 1998 to support the launch of its All Day Breakfast, and it also supported its Tots TV product.
There was no significant spend for child-orientated pizza in any of the years under review.
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Children's Foods - UK - July 1999
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Distribution and Merchandising
Families may buy in bulk to save money - a factor which is reflected by the strong presence of freezer centres within the distribution pattern. Iceland has been very active in growing freezer centre shares of key markets by entering agreements for promotions of new products, and on occasions obtaining exclusive distribution for the first months of a new launch.
Fish fingers
Multiple grocers and co-ops dominate sales of frozen fish, including fish fingers, and their share has increased in recent years at the expense of both independents and freezer centres. Such outlets now have 81% of value sales compared to 15% for freezer centres and 4% for independent grocers.
Burgers
Figure 28 outlines shares of sales for the total burger market, although this is dominated by the frozen product covered by this report.
Figure 28 UK retail sales of burgers*, by type of outlet, 1994-98
994
996
998
% point change
£m
%
£m
%
£m
%
994-98
Multiple grocers
56
70
68
71
79
73
+3
Freezer centres
33
5
34
4
34
4
-1
Independent grocers
5
7
5
6
3
5
-2
Discounters
2
5
3
6
3
5
-
Others
8
4
6
3
6
2
-2
Total
224
00
236
00
245
00
-
* all burgers including chilled
Data may not equal totals due to rounding
Source: Mintel
The major grocery multiples have increased distribution share at the expense of most other outlets. Grocery multiples were best placed to cope with the BSE crisis, having the space available to offer alternatives to beef based burgers, and the strength to insist upon formulation changes from branded and own label suppliers. Independents did not have this advantage, while freezer centres have lost share due to a high proportion of declining economy burgers within their sales mix. However, the independents remain a relatively important distributor of burgers in comparison to chips and potato products.
Discounters were becoming an important force in burger distribution prior to the BSE crisis, but their reliance on products sold on the basis of price has acted as a brake on their progress as consumers are trading up.
Conventional butchers are experiencing general decline in terms of numbers, and are generally sought for specific occasions - for burgers, this is barbecues - rather than for regular consumption, particularly by children.
Pizza
Figure 29 gives the retail distribution pattern of frozen pizza. Data for frozen children's pizza alone are not available, but are not thought to differ significantly from that of total frozen pizza.
Figure 29 UK retail sales of frozen pizzas, by type of outlet, 1994 and 1998
994
998
% point change
£m
%
£m
%
994-98
Multiple grocers
38.4
75
284.8
79
+4
Freezer centres
30.7
7
69.4
9
+2
Others/independents
5.9
9
8.6
2
-7
Total
85.0
00
362.8
00
-
Data may not equal totals due to rounding
Source: Mintel
Grocery multiples have a firm hold on retail sales of pizza, while freezer centres have grown their share slightly at the expense of independents, largely by ensuring that they are involved in new products and their promotion. The grocery multiples seldom offer more than one branded pizza in competition with their own label, which has further led to the decline of branded products in the children's sector of the market.
Frozen chips and potato products
Figure 30 outlines the distribution profile of frozen chips and potato products.
Figure 30
UK retail sales of frozen chips and potato products in the UK, by type of outlet, 1994-98
994
996
998
% point
change
£m
%
£m
%
£m
%
994-98
Multiple grocers
72
66
205
67
231
68
+2
Freezer centres
34
3
39
3
43
3
-
Discounters
-
-
-
-
35
0
-
Co-ops
7
7
8
6
20
6
-1
Independents
-
-
-
-
8
2
-
Other*
37
4
42
4
4
na
Total
260
00
304
00
341
00
-
* incl petrol stations and convenience stores for all years, and independents, symbol groups and discounters for 1994-96
Source: Mintel
Figure 31 demonstrates that multiple grocers take more than two thirds of retail sales of frozen chips and potato products - a share which has increased slightly over the last five years. Freezer centres account for around 13% of value sales.
Baked beans
Figure 31 outlines distribution of baked beans in the UK.
Figure 31 UK retail sales of baked beans in the UK, by type of outlet, 1994-98
994
996
998
% point
change
£m
%
£m
%
£m
%
994-98
Multiple grocers
75
79
60
80
69
82
+3
Co-ops
6
7
2
6
2
6
-1
Independents
8
8
6
8
4
7
-1
Other*
3
6
2
6
0
5
-1
Total
222
00
200
00
205
00
-
* incl petrol stations and convenience stores
Source: Mintel
Along with many other convenience and store cupboard items, baked beans sales have become increasingly focused upon the grocery multiples, although branded product has been able to maintain its position.
Canned pasta
Figure 32 outlines sales of canned pasta by distribution outlet.
Figure 32 UK retail sales of canned pasta in the UK, by type of outlet, 1994-98
994
996
998
% point
change
£m
%
£m
%
£m
%
994-98
Multiple grocers
80
82
87
84
87
85
+3
Co-ops
9
9
8
8
8
8
-1
Independents/other*
8
8
8
8
7
7
-1
Total
97
00
03
00
02
00
-
* incl petrol stations and convenience stores
Source: Mintel
Canned pasta has an even greater reliance upon the grocery multiples than baked beans.
Merchandising
In general, there do not appear to be any major issues for the merchandising of the different sectors of the children's meals market. Within the frozen segments, product is often stored in cabinets which are at child height, but in most cases products are targeted at a sale to mothers, since children have a low level of purchasing involvement in this sector relative to others such as snacks and crisps.
Children's products do not tend to be stocked alongside each other, being sited by protein source so that snack-size poultry will be alongside other prepared poultry, and burgers alongside grills. However, M&S has launched a range of chilled children's meals, which it has stocked as one display, creating a strong visual impact.
Within the canned sector, child-orientated products tend to be stacked together rather than with their main brand, so that the brand frontage can be fragmented. The major multiples tend to select from a range of character merchandised products so that they have one character for each market segment. They, along with the manufacturers, look for a mix of licensed products which feature perennially popular characters as well as characters which have just become popular.
Report Type: AH, MF, MS
Report Code:
07/99
This report is supplied in accordance with Mintel's terms & conditions.
Children's Foods - UK - July 1999
26/07/99
(c) Mintel International Group Limited Document size: 83606 bytes
The Consumer
This section of the report provides data on consumer usage of the children's foods covered by this report, utilising data from the annual TGI survey of around 25,000 adults and research commissioned from BMRB exclusively for this report.
TGI data have been analysed using the consumption patterns of housewives with families only. The one market omitted is bite-sized poultry products and children's pizzas have been omitted as there is no data available from this source. Figure 33 examines the current penetration of each product area relative to penetration of households without children.
Figure 33 Usage of child-orientated foods among families and non-families, 1998
Base: housewives
Families
Non-families
Penetration of families
relative to non-families
%
%
%
Fish fingers
80.0
44.2
81
Burgers
60.0
30.2
99
Chips and potato products
85.8
68.0
26
Baked beans
97.1
91.3
06
Canned pasta
73.3
45.0
63
Taken from the annual TGI survey of 25,560 adults - 12,938 housewives
Source: TGI, BMRB 1998/Mintel
The key points to note from Figure 33 are:
. Each of the product areas has a considerably higher penetration among households with children relative to households without children, with the exception of baked beans which have near universal coverage of all types of household
. burgers are the most strongly family orientated food, followed by fish fingers.
An analysis of the weight of usage of each food, by family type, is shown in Figures 34-38, with the exception of pizza, since no data for child-orientated pizzas are available.
Figure 34 shows the data for fish fingers. For the purposes of this report, heavy usage is defined as serving nine fish fingers or more a week, medium usage is 3-8, and light usage is two or less.
Figure 34 Weight of usage of frozen fish fingers, by type of family, 1998
Base: housewives with children
All users
Heavy
Medium
Light
users
users
users
%
%
%
%
All
80.0
4.5
24.6
40.6
AB
74.3
0.9
22.5
40.9
C1
79.9
4.2
23.8
41.5
C2
80.9
4.1
23.8
42.7
D
81.9
6.4
26.3
38.8
E
84.5
8.4
28.6
37.3
Greater London
78.7
4.0
25.5
39.3
South East
79.3
2.3
22.3
44.4
East Anglia
80.1
4.2
31.5
33.1
South West
78.1
2.3
26.2
39.7
Wales
85.3
7.9
30.8
35.3
East & West Midlands
81.9
2.5
24.9
44.4
North West
81.3
8.0
24.0
39.0
North
84.9
7.4
28.0
39.4
Yorkshire & Humberside
84.1
9.3
24.2
40.2
Scotland
89.7
2.4
9.4
37.6
Children under 1 year
77.4
0.8
27.1
39.0
-4 years
86.9
6.0
28.9
41.7
5-9 years
85.7
8.7
26.0
41.0
0-15 years
75.5
6.8
21.2
37.1
Size of household:
2 persons
76.2
7.6
23.8
44.6
3
76.7
8.2
22.2
45.8
4
79.8
3.3
26.8
39.4
5+
85.6
26.7
23.7
35.2
Taken from the annual TGI survey of 25,560 adults - 12,938 housewives
Source: TGI, BMRB 1998/Mintel
The key points to note from Figure 34 are:
. fish fingers have a penetration of 80% among households with children, and half of these families use at least three fish fingers each week
. penetration is highest among families with children aged 1-9 years
. usage is highest among Es; over 18% of this group serve nine or more fish fingers each week, reflecting the range of price points available
. Scotland has the highest penetration level of any region
. over one quarter of the largest households serve nine or more fish fingers each week.
Figure 35 shows the data for frozen burgers. For the purposes of this report, heavy usage is defined as serving more than once a week, medium usage is once a week, and light usage is less often than once a week.
Figure 35 Weight of usage of frozen burgers, by type of family, 1998
Base: housewives with children
All users
Heavy
Medium
Light
users
users
users
%
%
%
%
All
60.0
3.2
3.3
43.0
AB
45.5
.0
6.3
37.8
C1
57.9
.6
9.7
46.2
C2
64.4
4.1
2.7
46.8
D
68.1
4.3
21.8
41.1
E
67.2
6.9
9.7
40.2
Greater London
59.0
2.8
4.2
41.1
South East
63.2
2.6
1.3
48.8
East Anglia
63.2
2.4
0.5
50.3
South West
57.9
.1
3.1
43.3
Wales
65.5
6.3
5.3
43.3
East & West Midlands
58.3
3.1
2.4
43.2
North West
57.3
3.9
5.0
37.9
North
59.3
4.6
6.1
37.4
Yorkshire & Humberside
56.5
4.9
5.5
35.8
Scotland
60.4
2.5
1.5
46.1
Children under 1 year
61.2
5.2
1.6
43.2
-4 years
59.6
3.4
3.8
42.1
5-9 years
62.4
3.7
5.4
42.7
0-15 years
62.3
3.2
4.3
44.1
Size of household:
2 persons
54.2
2.9
3.7
37.1
3
55.6
2.9
9.7
42.4
4
59.8
2.8
2.4
44.3
5+
67.8
4.5
9.3
43.1
Taken from the annual TGI survey of 25,560 adults - 12,938 housewives
Source: TGI, BMRB 1998/Mintel
The key points to note from Figure 35 are:
. penetration of frozen burgers is lower than that of any other product field covered by this research, and very few consumers serve burgers more than once a week
. penetration is relatively low among families of children under five years, perhaps indicating greater parental concern for the healthiness of foods at this age (in the wake of the BSE scare), and lower levels of 'pester power'
. there is a strong socio-demographic bias to DE groups, with Es twice as likely as the average family to serve burgers more than once a week
. penetration is highest among the largest households, where it reaches nearly 68%, indicating the food's convenient nature.
Figure 36 shows the analysis for frozen chips and potato products. For the purposes of this report, heavy usage is defined as serving five portions or more a week, medium usage is three or four, light usage is two or less.
Figure 36 Weight of usage of frozen chips and potato products, by type of family, 1998
Base: housewives with children
All users
Heavy
Medium
Light
users
users
users
%
%
%
%
All
85.8
6.0
25.3
44.1
Children under 1 year
76.1
1.8
24.4
39.9
-4 years
86.0
5.5
25.5
44.5
5-9 years
88.1
8.4
26.4
42.7
0-15 years
86.6
8.0
23.4
44.6
AB
86.9
4.7
20.5
51.3
C1
87.0
5.0
25.8
45.5
C2
85.6
6.8
24.6
43.6
D
85.5
6.1
28.7
40.5
E
82.1
7.7
28.0
35.8
Greater London
85.4
3.3
26.2
45.7
South East
86.7
7.7
22.3
46.7
East Anglia
90.0
2.0
21.7
55.4
South West
85.5
2.8
22.6
49.0
Wales
86.3
5.2
25.3
45.0
East & West Midlands
84.5
5.7
21.2
46.6
North West
87.6
6.9
30.5
39.7
North
82.1
7.6
24.0
40.1
Yorkshire & Humberside
81.0
6.9
27.9
35.9
Scotland
89.4
7.8
33.2
38.0
Size of household:
2 persons
82.9
8.8
30.5
43.6
3
82.5
0.6
25.1
46.2
4
87.4
5.8
25.9
45.2
5+
87.7
25.0
22.9
39.4
Taken from the annual TGI survey of 25,560 adults - 12,938 housewives
Source: TGI, BMRB 1998/Mintel
The key points to note from Figure 36 are:
. penetration of frozen chips and potato products is nearly 86%, and nearly half of these households serve at least three portions a week
. there is a clear increase in penetration in households with children over one year, a result of the products' 'tougher' texture
. penetration is highest among ABC1 groups and lowest among Es. When money is an issue, unprocessed potatoes are cheaper to prepare. Nevertheless, C2DE households who do serve the product, are more likely to serve it frequently than AB households
. among the largest households, one quarter of housewives serve at least five portions of frozen chips or potato products each week.
Figure 37 shows the analysis for baked beans. For the purposes of this report, heavy usage is defined as serving five portions or more a week, medium usage is three or four, and light usage is two or less.
Figure 37 Weight of usage of baked beans, by type of family, 1998
Base: housewives with children
All users
Heavy
Medium
Light
users
users
users
%
%
%
%
All
97.1
4.7
32.3
50.0
AB
96.8
5.0
31.3
50.4
C1
97.2
2.5
29.5
55.2
C2
98.4
7.0
32.5
48.7
D
97.0
4.0
35.4
47.2
E
95.6
5.5
35.0
44.9
Greater London
93.2
4.5
27.1
51.6
South East
98.2
3.3
31.1
53.7
East Anglia
96.1
22.3
25.2
48.6
South West
97.4
6.5
34.9
45.7
Wales
98.0
7.2
40.4
40.4
East & West Midlands
97.2
5.1
29.8
52.0
North West
98.2
3.9
34.8
48.9
North
96.7
5.6
29.3
52.0
Yorkshire & Humberside
99.5
3.4
39.9
46.1
Scotland
96.9
2.4
34.7
49.5
Children under 1 year
97.6
9.6
28.6
59.4
-4 years
97.1
5.0
32.0
50.0
5-9 years
97.5
8.6
33.6
45.1
0-15 years
97.5
8.1
33.3
45.8
Size of household:
2 persons
90.7
3.2
29.6
57.8
3
96.7
6.0
28.1
62.5
4
97.8
4.3
34.6
48.8
5+
98.4
29.9
34.2
34.1
Taken from the annual TGI survey of 25,560 adults - 12,938 housewives
Source: TGI, BMRB 1998/Mintel
The key points to note from Figure 37 are as follows:
. penetration of baked beans is the highest of any product area covered by this report and is nearly universal. However, half of users are categorised as light users, serving two or less portions each week
. frequency of use varies by age of child; households with a child under one year old have a relatively low proportion of heavy users
. penetration is lower among Es, but their frequency of use is above average.
Figure 38 shows the data for canned pasta. For the purposes of this report, heavy usage is defined as three portions or more a week, medium usage as two portions a week, and light usage as one portion or less a week.
Figure 38 Weight of usage of canned pasta, by type of family, 1998
Base: housewives with children
All users
Heavy
Medium
Light
users
users
users
%
%
%
%
All
73.3
6.5
20.0
36.1
AB
67.4
1.6
5.9
39.3
C1
73.4
6.2
20.2
36.2
C2
74.2
7.2
20.6
36.2
D
76.5
8.2
20.8
36.6
E
74.9
21.2
23.3
29.5
Greater London
63.7
2.6
7.8
32.5
South East
73.5
6.9
7.0
38.7
East Anglia
70.0
20.0
22.0
28.0
South West
70.2
5.8
8.5
34.9
Wales
79.5
7.3
22.3
39.2
East & West Midlands
72.9
5.5
7.6
39.1
North West
77.5
8.5
21.2
36.6
North
77.7
7.1
25.7
35.0
Yorkshire & Humberside
73.1
3.7
23.9
35.3
Scotland
79.4
21.7
23.7
33.5
Children under 1 year
71.1
4.0
6.9
39.6
-4 years
76.3
21.4
22.1
32.2
5-9 years
77.6
9.1
22.0
36.0
0-15 years
70.5
4.6
8.2
37.0
Size of household:
2 persons
71.0
0.6
21.0
38.7
3
70.3
2.4
9.5
37.8
4
73.8
6.9
20.0
36.1
5+
76.6
22.9
20.1
33.2
Taken from the annual TGI survey of 25,560 adults - 12,938 housewives
Source: TGI, BMRB 1998/Mintel
The key points to note from Figure 38 are as follows:
. over 70% of families use canned pasta, and half of the users serve at least two cans each week
. penetration is highest in households with children aged 1-9 years, with use of three cans or more each week peaking among those with children aged 1-4. Proportionally, there is a higher take-up of canned pasta among this group in comparison to baked beans - a fact sustained by characterisation and new shapes produced for the former sector
. penetration is lowest among AB households, and in Greater London.
In summary, the TGI data indicate that such foods appeal to families with all ages of children, but most strongly those with children aged 1-9 years, with the exception of burgers which have a slightly older appeal to 5-15 year olds. In addition, most products are more popular with the DE socio-economic groups; frozen chips/potato products and baked beans are exceptions to this, but in both these cases, the C2DE families tend to serve more frequently than AB families. Penetration of these foods also tends to be highest among the largest households, indicating their appeal for convenient meals for large numbers of children.
Mintel also commissioned consumer research carried out by BMRB exclusively for this report. The survey, conducted in April 1999 among a nationally representative sample of 1,054 housewives asked the following question:
"Which of these best describes your attitude to your children's diet or the attitudes of your children themselves?"
Multiple response was allowed and the topline results are summarised in Figure 40. Comparison is also made with responses to the same question three years ago.
Figure 39 Attitudes to children's diets, February 1996 and April 1999
Base: 1996 - 453 housewives with children under 16; 1999 - 329 housewives in the family group
996
999
%
%
I try to ensure my children eat a healthy diet
83
75
The whole family eats the same meal
57
50
I would be interested in giving my children food with
extra vitamins or minerals
48
37
Many products aimed at children rely too heavily on
artificial ingredients
46
33
It's a constant battle to avoid crisps, cakes and sweets
42
37
I try to avoid giving my children food that is high in fat
40
34
My children like traditional English dishes
38
33
I buy products or brands that my children ask for
36
35
Children's food has too much sugar in it
35
28
My children often prepare snacks for themselves
26
26
My children will not eat fresh vegetables
9
5
I object to manufacturers advertising to my children
8
20
It's a real struggle to give my children a varied diet
8
20
My children are content with a non-meat diet
1
7
Convenience is of paramount importance
6
7
My children think that eating meat is cruel
7
5
Source: BMRB/Mintel
The key points to note from Figure 39 are:
. the highest level of response was with the statement relating to concerns for the healthiness of children's foods - though these have seen a drop in percentage points since 1996
. only half of respondents aim to have the whole family eating the same meal, indicating the importance of child-specific meals
. one third of parents buy products or brands which children ask for - a reflection of 'pester power' and the existence of advertising to children
. one quarter of children have some autonomy in preparing their own food - though it is unlikely children would be allowed to use the cooker. Parents may, however, teach their children to use the microwave or the toaster perhaps
. one fifth of parents object to advertising which is directly aimed at their children - perhaps disliking the pressure they as parents are put under
. there is a very low rating of convenience as paramount. Mintel's hypothesis is that convenience is not a "given" in this sector, and does not need to be directly sought after, but that it remains of great importance.
Attitudes held can also be analysed by type of family, as detailed in Figure 40.
Figure 40 Most widely held attitudes to children's foods, by type of family, April 1999
Base: 329 housewives in the family group
I try to ensure
Whole family
Interested
Many
children healthy
eat same
in added
children's
diet
meal
vitamins
foods rely
on artificial
ingredients
%
%
%
%
All
75
50
37
33
AB
78
61
37
46
C1
80
44
39
31
C2
80
50
30
30
D
70
53
43
33
E
67
53
38
26
Special Groups:
Families on a tight budget
75
53
32
32
Better off families
78
53
38
38
Families with
young child (0-4)
76
49
41
30
Families with
medium child (5-9)
75
48
40
34
Families with
older child (10-15)
77
51
33
36
Young working women
(under 34)
74
57
38
32
Older working women
(over 34)
78
50
33
37
Source: BMRB/Mintel
The key points to note from Figure 40 are:
. mothers in the ABC1C2 socio-economic groups are more likely to try to ensure their children have a healthy diet. As such, they could be persuaded to purchase by health claims on packaging
. the top response for the whole family eating the same meal comes from the AB group, a factor which mitigates against the use of children's meals and reflected in the TGI data stated earlier in this section
. analysis by Special Groups indicates little difference for the first two responses in Figure 40. However, for the latter two responses, better off families appear to be the more health conscious with a view to vitamins and artificial ingredients
. there is little variation to responses by age of child except with interest in vitamins, which is lowest for families with older children.
Figure 41 Further widely held attitudes to children's foods, by type of family, April 1999
Base: 329 housewives in the family group
Constant battle
Try to avoid
Children
Buy what
to avoid crisps,
high fat food
like traditional
children
cakes, sweets
English dishes
ask for
%
%
%
%
All
37
34
33
35
AB
26
42
34
41
C1
44
39
30
33
C2
41
26
33
31
D
36
35
39
39
E
33
28
28
36
Special Groups:
Families on a
tight budget
40
34
36
34
Better off families
37
41
32
36
Families with
young child (0-4)
40
26
27
33
Families with
medium child (5-9)
40
40
39
41
Families with
older child (10-15)
35
36
35
37
Young working women
(under 34)
46
30
34
32
Older working women
(over 34)
34
42
35
37
Source: BMRB/Mintel
The key points to note from Figures 41 are:
. mothers in the C1C2 socio-economic group are the most likely to battle against crisps, snacks and sweets, as are older working women. The bias towards the latter group may be explained by the older profile of their children who have been more exposed to such products through television and by peers
. avoiding high fat food shows a more affluent bias from ABs and better off families. Such groups may be willing to pay more for low fat products. This move could encourage those in the AB groups who show less of a propensity towards children's foods
. families with a young child are least likely to try to avoid high fat food, illustrating the need for fat in their diet. These children are also the least inclined to opt for traditional English dishes
. tailoring marketing campaigns towards the AB socio-economic category would reap rewards given they have the greatest propensity over buying what their children ask for.
Housewives were also asked a question relating to general eating habits, as follows:
"Thinking about your food and diet, which, if any, of these statements best describe your eating habits?"
Respondents were asked to choose as many or as few statements as they wished. The results are tabulated in Figure 42, giving the differences in attitude between housewives with children and those without.
Figure 42
General attitudes to eating, among housewives with and without children, April 1999
All
Any children
No children
Base: 1, 054 housewives
,054
339
714
%
%
%
I/we usually eat main meals at the table
61
63
59
It is important to have at least one family
meal together a day
42
60
33
I try to eat at regular times
56
50
59
I snack between meals
29
45
22
I/we usually eat in front of the television
40
39
41
My diet is traditional (meat and vegetables)
37
32
40
I rarely eat between meals
28
21
32
I try to eat less meat these days
29
20
33
I am often in too much of a rush to have
a proper meal
2
8
9
I sometimes snack in the street
0
4
8
I never eat meat
5
4
6
Source: BMRB/Mintel
The key points to note from Figure 42 are:
. almost two thirds of families eat a main meal at the table and see a family meal as important. However, only half eat at regular times, and nearly half snack between meals
. nearly four in every ten families usually eat in front of the television
. only one third of families usually have a traditional diet of meat and two vegetables
. eating less meat and complete avoidance of meat are low among families, reflecting the current tastes of children; however, the continual introduction of vegetarian alternatives that look and taste like meat is likely to have some effect upon children's meals in the long term
. non-families includes both pre- and post family groups, which behave very differently to each other. Overall, they are slightly more traditional than families, and more likely to eat at regular times, which reflects the large proportion of older consumers in the group.
Housewives can also be grouped according to their general attitudes towards food and diet. For the purposes of this report, three main groups were identified; Traditionalists , who eat at table, at regular times, and like to have family meals, Ad Hoc Eaters , who tend to eat in front of the television and not at regular times, and Snackers . Figure 43 indicates how different lifestages fit into these groupings.
Figure 43 General attitude groupings, by type of family, April 1999
Base: 329 housewives in the family group
Traditionalists
Ad Hoc Eaters
Snackers
294
58
67
%
%
%
Families with
young child (0-4)
89
51
59
Families with
medium child (5-9)
89
42
53
Families with
older child (10-15)
93
46
44
Source: BMRB/Mintel
The key points to note from Figure 43 are:
. families with an older child are more likely to be traditionalists, revealing the older profile of the housewife.
. Ad Hoc Eaters and snackers show a bias towards families with younger children, a reflection perhaps of a busier lifestyle.
Figure 44 re-examines attitudes to children's food, by the same general attitude groupings.
Figure 44 Attitudes to children's foods, by general attitude groupings, April 1999
Base: 329 housewives in the family group
All
Traditionalists
Ad Hoc
Snackers
Eaters
329
294
58
67
%
%
%
%
I try to ensure my children
eat a healthy diet
75
78
75
72
The whole family eats the same meal
50
54
42
49
I would be interested in giving my
children food with extra vitamins
or minerals
37
37
43
43
Many products aimed at children
rely too heavily on artificial ingredients
33
35
30
35
It's a constant battle to avoid crisps,
cakes and sweets
37
37
44
40
I try to avoid giving my children
food that is high in fat
34
35
30
30
My children like traditional
English dishes
33
35
34
36
I buy products or brands that my
children ask for
35
34
35
40
Children's food has too much
sugar in it
28
30
28
34
My children often prepare snacks
for themselves
26
26
30
26
My children will not eat fresh
vegetables
5
6
6
6
I object to manufacturers
advertising to my children
20
21
9
23
It's a real struggle to give my
children a varied diet
20
20
24
24
My children are content with
a non-meat diet
7
7
6
6
My children think that eating
meat is cruel
5
5
4
6
Convenience is of paramount
importance
7
6
2
0
Source: BMRB/Mintel
Key points to note from Figure 44 are as follows:
. concern for the healthiness of children's diet is found at a high level among each group
. traditionalists are more likely to serve the same meal to everyone, and show average interest in added vitamins/minerals. Ad Hoc Eaters and Snackers are more interested in such additions, presumably because they do not feel their diet is nutritious enough
. Ad Hoc Eaters are less worried about artificial ingredients and avoiding fatty foods, but have more of a battle with their children over crisps, cakes and sweets
. an average proportion of Traditionalists and Ad Hoc Eaters say they buy what their children ask for; snackers are slightly more likely to do so
. convenience is mentioned most among Ad Hoc Eaters, but is only rated as of paramount importance by 12%.
Mintel is able to offer further analysis of its exclusive research tailored to individual client's needs. It is possible for example to net and/or combine codes to create new attitudinal, usage or demographic groups and cross analysis can show how the answers to any questions or categories are related. For further details and a quote please call our statisticians Peter Ayton/Jon Moore/Patrick Osborne on 0207606 4533
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The Future
Fragmented family life
The future for children's meals at a total level is assured, since family life is likely to continue to become more fragmented, with a focus away from family meal times. Within the total market, traditional sectors will continue to lose out to newer, more convenient and more interesting, product sectors. Children require novelty value with frequent innovations to gain and maintain their interest.
The winners and losers
Developments will include both new variations within existing product sectors, like new fish shapes, and the introduction of new sectors, such as vegetarian products made to look and taste like meat. Frozen foods are likely to remain key to this market, due to their convenience, and the promotion to consumers by Birds Eye and others that frozen can be fresher than fresh. Canned foods are likely to continue to lose share to fresh and frozen product which can be prepared at least as quickly.
Novelty is key
The fish finger market is likely to continue to lose sales, although parents are keen to serve fish to their children and so the development of novelty fish alternatives is likely to be well received.
Trading up in the burgers sector
The burger market is distinct from other sectors because of the effect of the BSE crisis. Recovery from this crisis continues, but it is unlikely that the market will ever return to high levels of consumption of economy product. While these are still available, marketing effort is behind premium beef, alternative meats and meat-free. Volume is, therefore, unlikely to show significant growth, while there will be value growth. However, the implications of a trading up within the market may result in a decline in popularity as a children's meal, with fish and chicken alternatives available. Frequency of use is declining, and so growth in value terms depends on adding value, which is less likely to appeal to parents looking for a cheap children's meal.
Turkey products gain ground
The snack-size coated poultry products market is likely to continue to show good growth. Turkey is likely to grow at a faster rate than chicken, mainly because it is much smaller at present and so has more opportunities for new products. However, it is unlikely to become as large as the chicken sector, unless there is a significant introduction into the nugget sector. Longer term, there may be a rationalisation of brands within the market.
Pizza poses a grown-up problem
The child-orientated pizza sector may benefit from some support and NPD from McCain, but any recovery is likely to be short term, with consumer interest focused upon the main meal pizza market. It is probable that there will be more attempts to market main meal pizzas towards children, and possible that a new sub-sector will emerge.
Oven chips lose out
Within the chip and potato products market, it will be added value products which gain sales, primarily at the expense of oven chips. The child-specific sector is likely to become more established as a sector in its own right, although it will probably remain very young in orientation, with older children being served family-orientated product.
A little added value excitement
Baked beans may experience some value growth, if further price wars can be avoided and as added value varieties gain in popularity. However, these 'meals' will continue to lose out in terms of convenience of serving relative to alternatives.
A focus on pasta
Canned pasta does not have the benefit of the health associations of baked beans, and the only real growth is likely to come from the children's sector. It is likely that manufacturers will concentrate on this, possibly widening their range of character merchandising further to look for ways to attract teenage use, such as current pop/sport personalities.
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Forecast
Mintel has used the SPSS time series package to forecast the market to 2003.
SPSS correlates historic market size data with key economic and demographic determinants(independent variables), identifying those factors having most influence on the market.Using forward projections of these factors, a market size forecast is produced.
A fact that the children's food industry cannot escape is that the number of children in the UK is declining . This has obvious implications for the longer term future of the market. Manufacturers will have to work harder just to stand still , and even this will only be achievable in the more popular sectors of the food market.
The way growth will come is both through perceived convenience (for parents) and attractiveness of the product (for children). Hence, both frozen chips and coated snack-sized poultry products are forecast to do well , with growth of 2% and 9% in real terms respectively, based on current trends. This may not sound spectacular, but when considered in view of the overall market, it becomes apparent that these sectors are actually performing very well.
The outlook for other sectors of the market is somewhat bleaker. Baked beans will be the hardest hit sector, with a forecast decline of 18% in real terms by 2003. Similarly hit will be fish fingers (decline of 12%) and frozen burgers (decline of 12%). This shrinkage is in part a reflection of fewer children, but also of the fact that, with growing affluence and awareness of health issues, purchasers are trading up to higher-quality products for the entire family, which affects the children's market. Overall, the children's food market is forecast to decline by 9% in real terms by 2003.
Figure 45 Forecast of the UK children's food market, 1999-2003
At current prices
Fish
fing-
ers
Frozen burg-
ers
Frozenchips
Baked beans
Poultry
Other
Total
£m
Index
£m
Index
£m
Index
£m
Index
£m
Index
£m
Index
£m
Index
999
06
00
84
00
374
00
214
00
38
00
32
00
,148
00
2000
09
03
90
03
387
03
214
00
47
06
23
93
,169
02
2001
09
03
88
02
419
12
211
99
61
17
19
90
,208
05
2002
10
03
89
03
433
16
208
97
71
24
10
83
,221
06
2003
10
04
89
03
446
19
206
96
77
28
02
77
,230
07
At 1999 prices
Fishfing-ers
Frozen burg-
ers
Frozen chips
Baked beans
Poultry
Other
Total
£m
Index
£m
Index
£m
Index
£m
Index
£m
Index
£m
Index
£m
Index
999
06
00
84
00
374
00
214
00
38
00
32
00
,148
00
2000
05
99
83
99
376
01
207
97
42
03
18
90
,131
98
2001
01
95
74
95
388
04
96
91
49
08
10
83
,118
97
2002
97
92
68
91
385
03
85
86
52
10
98
74
,084
94
2003
94
88
61
88
380
02
76
82
51
09
87
66
,049
91
Source: Mintel
Three factors were taken into consideration when preparing this forecast. Firstly, personal disposable income was considered. Growing levels of PDI lead to people trading up, away from cheaper convenience products, as mentioned above. The number of children aged 5-14 was the second factor used, for obvious reasons. The number of children in the population naturally has a bearing on the demand for food specifically targeted at children. The third factor selected was number of people in the family lifestage . Those in this lifestage all have dependent children or stepchildren, so are a natural market for children's foods.
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