Key Trends in the GB Sandwich Market

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Key Trends in the GB Sandwich Market
Sally Dudleston Consumer Insight Director TNS
Worldpanel Sally.dudleston_at_tns-global.com Tel
0208 967 4149
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Agenda

• Top macro trends in 2007
• Focus on main themes throughout 2007
• Health
• Indulgence
• Food Values
• Parental support
• Homemade

Macro trends
Total Sandwiches
On the Go
In home Lunchbox
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Health
Health now drives 22 of all meal occasions, and
continues to grow.
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Health to the fore in the 21st century
Enjoyment
Health
Practicality
Drivers of food choice in 1995
Drivers of food choice in 2007
TNS Worldpanel Usage- 52 W/E May 2007 - Servings
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Indulgence
Consumers who seek health, are also more likely
to seek indulgence.
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Food Values
Continued awareness of Organic, Fair Trade and
Provenance.
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Parental support
Over the past 2 years 12 fewer adults agree to
I buy what the kids want
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Homemade
Homemade savoury cooking continues to experience
a resurgence.
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Top statements level of agreement- health,
environment, taste

• Regularly use recycling facilities 82.6
• Total Smoking ban good 76.5
• Concerned with taste of food 73.1
• I like to eat healthily 72.5
• Fast food damaging habits 68.9
• Eat healthy foods 67.1
• Use car for grocery shopping 64.1
• Queue length annoying 64.1
• I enjoy eating foreign foods 62.9
• I prefer natural whole foods 59.6
• Concerned about overweight 55.7
• I regularly take exercise 55.7
• I look out for healthy prods 55.1
• Want mobiles banned in rests 54.5
• Eating out indulgent 52.1

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Agenda
Key trends in Sandwiches The total universe The
importance of the home occasion Key growth
areas
Macro trends
Total Sandwiches
On the Go
In home Lunchbox
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Total Sandwiches
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Total Sandwiches
Buy one and take it home
Buy one and eat it on the go
Make one at home and consume at home
Make one at home and take it out (lunchbox)
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Total Sandwiches
Source TNS Food On Go 52 w/e Dec 07
TNS Usage 52 w/e Aug 07
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Total Sandwiches nearly 11 billion sandwich
occasions
7.3
116 million sandwiches 185 million
1.78 billion sandwiches 3.14 billion
1.6
Buy one and take it home
Buy one and get on the go
5.68 billion sandwich occasions
-3.5
2.81 billion sandwich occasions
1.3
Make one at home and consume at home
Make one at home and take it out (lunchbox)
Source TNS Food On Go 52 w/e Dec 07
TNS Usage 52 w/e Aug 07
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Agenda
Impulse Purchasing Setting the scene -
Importance of sandwiches reliance of pushing
honest food values Explore the evolving nature
of the sandwich market Who is the consumer? The
Retailer Structure
Macro trends
Total Sandwiches
On the Go
In home Lunchbox
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Total Food on the Go Market Shares -
SpendTotal Category worth 8 billion 3,
Savouries are driving growth.
Chewing Bubble Gum 194.3mn -1
Snacking Fruit 88.7mn N/A
Sugar Confectionery 524.7mn -1
1.1
Crisps/Nuts/Snacks 699.8mn N/C
Savouries 3.9bn 6
Chocolate Confectionery 1.3bn 1
Soft Drinks 1.5bn 2
52 we 30 Dec vs. Yr Ago
Source TNS Food On Go
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There is far more transparency now between the
industry, and the end consumer.
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Total Savouries Sector Shares Category worth
3.91 billion 6, Sandwiches driving growth
Sushi 21mn 9
Savoury Pastries 544 mn -3
Salad Boxes Bowls 203mn 2
Sandwich Market 3.14bn 7
52 we 30 Dec 07 vs. Yr Ago
Source TNS Food On Go
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What is Driving growth of On the Go
Sandwiches?Value 7.3, or 214.2m
-94.4m
308.6m
1.1 packs per trip
1.77
53.4 trips
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Basket Size, -3.2
Penetration, 0.2
Shopping trips, 6.6
Average Price, 3.6
volume 3.6
52 we 30 Dec vs. Yr Ago
Source TNS Food On Go
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Total Market Pack Share by PriceHigher priced
sandwiches are in strong growth, with sandwiches
under 1.50 losing share
Source TNS Food On Go
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Sandwich Format Performance
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Sandwich Tiers Performance Spend Standard and
Premium both increasing share, at the expense of
Branded and Healthy.
Total Sandwich Market
N.B. Texters Only
Source TNS Food On Go
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Top 5 Filling Types by Format

• Chicken Salad
• BLT
• Chicken Bacon
• Ploughman's
• Mixed Selection

• Chicken Bacon
• Chicken Salad
• Cheese Ham
• Tuna Sweetcorn
• Flamegrilled Chicken Salad

• Ham Egg
• Cheese Tomato
• Tuna Cucumber
• Prawn Egg
• Beef Onion

• Hoisin Duck
• Chicken Caesar
• Southern Fried Chicken
• Cajun Chicken
• Chicken Fajita

Over 31 of all sandwiches sold have chicken has
a filling
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Who are the Sandwich Buyers?
Male buyers spend 1.7bn on sandwiches,
accounting for 55 of sales but only 48 of
sandwich buyers. Males buy 61 times a year,
compared to 46 times for females.
57 of Sandwich buyers are ABC1. They buy 55
times a year, spending 110 per person on
sandwiches.
65 of buyers are aged over 35 years old. They
buy a sandwich 56 times a year, spending 109.
Younger shoppers spend 97 a year on average.
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Key Regional Trends
Scotland Preference for Rolls/Baps (22 share)
North East Strength of Greggs (18 share)
Lancashire Strength of Subway (13 share)
Yorkshire Spend the most - 130 per person
East of England Lowest frequency 39.9 per annum
Midlands Strength of Independents/Symbols (6
share)
London Most expensive place to purchase a
sandwich 1.91
Wales West Lowest basket spend 1.73 per person
South Preference for wraps (5 share)
South-West Spend the least - 79 per person
Source TNS Food on Go, 52we 30 Dec 2007
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Lifestyles Attitudes of a Sandwich buyerThemes
include health choice
I make regular use of recycling facilities
I look out for healthy products
I try to buy a healthy range of foods these days
I think supermarkets are becoming more powerful
I enjoy new experiences
Recently I have become more aware of whether the
foods I buy are good for me
There is not enough time in the day to do all the
things I want to
I always compare prices between different brands
before choosing
I tend to consider various brands on the shelf
before making my choice
I should do a lot more about my health
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Sandwiches retailer shares
Market shares Value 52 w/e 30 Dec 2007
3.14bn, 7.3
7
6
52 we 30 Dec 07
Source TNS Food On Go
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Agenda
In home the lunchbox The importance of the
sandwich at home Key trends within the
lunchbox Kids and their lunchbox Retail support
of the lunchbox
Macro trends
Total Sandwiches
On the Go
In home Lunchbox
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In the last year there were 8.5 billion sandwich
occasions in the UK
TNS Worldpanel Usage In Home/Lunchbox
Consumption, 12m/e Aug 07
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And it remains one of Britains favourite meals
10. Pasta 9. Pizza 8.
Fish 7. Sausages
6. Soup 5. Ready Meals
4. Shepherds /chicken pie
etc 3. Roast Meats
2. Sandwiches
1. Chops, steaks etc
Worldpanel Usage In Home
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In home sandwiches in decline, while the lunchbox
is in growth
27 kids 73 adults
Meal Occasions (Millions)
TNS Worldpanel Usage In Home/Lunchbox
Consumption, 12m/e Aug 07
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Sandwiches also becoming increasingly important
for children
change vs 2004
of kids lunchboxs featuring
Categories that are more associated with health
are those enjoying a rise in kids lunchbox
consumption
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Every little helps. Tesco help mums to put
together healthier lunchboxes whilst promoting
chocolate biscuits and Dairy Lee
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Store Layout On the Go FixtureOpportunity for
further variety or even a lunchbox aisle
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Points to remember
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Males v Females Who is driving sandwich
growth?Males account for 55 of the sandwich
market, but more frequent shopping from females
is driving the market
Male buyers spend 1.7bn on sandwiches, spend
3.6 Spends an average of 122.47 per year,
4.3 Buys a sandwich 61 times a year, up 4.6 on
last year
Female buyers spend 1.3bn on sandwiches, spend
12.5 Spends an average of 87.61 per year,
10.6 Buys a sandwich 46 times a year, up 9.5
on last year