Shoppers believe private label are national brands in different packaging

• 44% of UK shoppers believe that private label and store brands are produced in the same factory

• 59% believe that national brands are only more expensive because of advertising costs

London, 22nd  February 2013 – Brand loyalty towards food and drink in the UK grocery market is declining at a sharp rate, research conducted by Canadean in February 2013 reveals. While there has been much attention to the issue of food inflation, consumers shopping around more for the best deal and retailers improving their private label portfolios, new research shows that this decline in brand loyalty can also be attributed to shoppers questioning where the groceries they buy are manufactured. Despite pledges by many of the leading manufacturers in the UK not to produce private label versions of their known and recognised brands, many shoppers feel both branded and non-branded groceries are produced in the same factory and price differences are not linked to quality but advertising costs.

Research conducted by Canadean found that 44% of UK shoppers believe that private label and national brands are produced in the same factory and it is only the packaging that is different. Moreover, the same survey found that 59% believe that the only reason national brands are more expensive than private label brands is because of national advertising costs and not the manufacturing process or ingredients used, again highlighting how shoppers cannot distinguish between branded and non-branded items. The findings will be of particular concern to branded manufacturers who look to position their products around authenticity, heritage and premium ingredients to fend off the threat of cheaper alternatives.

This attitude will be particularly apparent when it comes to everyday staple grocery items. The research for example, found that 70% of shoppers believe that private label tinned foods are either “just as good” or “better” than branded items when it comes to quality, indicating this to be a particular product category where shoppers feel groceries are produced in the same factory. Emma Herbert, Research Manager, comments “although perceptions of the quality of private label products have been improving for decades, these findings show that shoppers now believe they can actually get their preferred brands for a cheaper price because it is presented in supermarket style branded packaging. This will be a significant blow for branded manufacturers who look to differentiate from store-own products by promoting attributes such as brand authenticity, heritage and expertise in manufacturing”.

While shoppers have difficulty telling the difference between branded and non-branded products when it comes to staple groceries, they are more likely to believe that private label brands are inferior in the alcoholic beverage and personal care categories. For example, 52% thought that private label beer products were of inferior quality compared to national brands, whilst 44% said the same when it came to hair care, indicating shoppers will be less inclined to believe that products are manufactured in the same factories in these product categories. Ms. Herbert concluded “fortunately for manufacturers of luxury items, shoppers believe that national brands are of better quality and as such will be produced separately where there is greater expertise. Therefore brand loyalty will be higher in these categories meaning that shoppers will be less inclined to switch to cheaper alternatives”

Figure 1: The extent to which consumers agreed that private label and national brands are produced in the same factories (% UK respondents) N=2000,  February 2013  

Editor’s Note:
Canadean Consumer is the consumer and shopper insight division of Canadean Ltd., the consumer market experts. Canadean provides market research, reports, databases and custom solutions to the global FMCG, retail, packaging, retail and ingredients industries. With headquarters in the UK and regional offices around the world, Canadean has built a reputation as the benchmark for consumer market intelligence. Local operations are now based in Madrid, Frankfurt, Buenos Aires, Mexico City, New York, Hyderabad, Seoul, Hong Kong, Beijing and Shanghai.

Date: 22^st February 2013

Press Contact: 

Milli d'Hangest d'Yvoy 

Marketing Executive

Email: milli.dHangestdYvoy@progressivemediagroup.com

Discounter Stores Refocusing Attention on Quality and Range to Challenge Traditional Retailers. • Over half of consumers had purchased groceries from a discounter store in the last year • 48% of shoppers who have visited a discounter in the last year believe that such stores can compete with traditional retailers when it comes to quality London, [20th February 2013] – While traditional retailers continue to dominate in terms of market share, research conducted by Canadean Custom Solutions shows that consumers are positioning discounters above traditional retailers on a number of factors, not just value for money. Historically the success of these stores could be attributed to the impact of the economic downturn on consumer spending. However, Canadean Custom Solutions can reveal that 48% of consumers who have visited a discounter in the last year find the quality of discounter products are just as good or better than those of traditional retailers. Of 2,000 consumers polled by Canadean Custom Solutions, 1,018 (51%) had purchased groceries from a discounter store in the last year.  Of these, just under half agreed that the quality of products in discounter stores is better or superior to those offered in traditional retailers.  In addition, when respondents were asked if they would only shop at discounters if money was tight, only a third agreed, indicating that discounter stores have grown in popularity for reasons other than cheap prices. Q4 2012 figures released by Aldi and Lidl revealed stronger growth in comparison to all traditional retailers apart from Waitrose who operate at the premium end of the market.  Historically, discounters tended to see a decline in sales over the Christmas period due to consumers trading up, but by introducing premium festive ranges at discount prices, both Aldi and Lidl were able to capitalise on consumers’ willingness to spend over the festive period. Emma Herbert, Research Manager at Canadean Custom Solutions believes the discounter value for money message is well and truly established in the minds of consumers. “What we are now seeing is discounters targeting areas where they have been historically weaker, notably quality and range”. As part of this perception change, a key part of Aldi’s Christmas advertising campaign focused on how its products were on a par with upmarket food stores which served to highlight quality and reinforce the message of value (as opposed to low cost). Additional emphasis has been placed on the provenance of its products, which is particularly important as consumers increasingly associate local produce with superior quality. Furthermore, discounters are now increasing their product ranges which will seek to address past criticisms of limited choice compared to traditional retailers. According to Ms Herbert, “Whilst discounters initially thrived from low price and value offerings, the opportunity for continued growth will come from focusing on an expanded range of quality products which will enable them to challenge the traditional retailers”.  Figure 1: The extent to which consumers who have visited a discounter in the last year thought that discounter stores are equal or superior to traditional retailers (% UK respondents), N =1018, February 2013 Editor’s Note: Canadean Consumer is the consumer and shopper insight division of Canadean Ltd., the consumer market experts. Canadean provides market research, reports, databases and custom solutions to the global FMCG, retail, packaging, retail and ingredients industries. With headquarters in the UK and regional offices around the world, Canadean has built a reputation as the benchmark for consumer market intelligence. Local operations are now based in Madrid, Frankfurt, Buenos Aires, Mexico City, New York, Hyderabad, Seoul, Hong Kong, Beijing and Shanghai. Date: 20st February 2013 Press Contact: Milli d'Hangest d'Yvoy  Marketing Executive E: milli.dHangestdYvoy@progressivemediagroup.com

Horse Meat Scandal Erodes Trust in UK Supermarkets

• Despite blame mostly lying with suppliers of beef, 38% of shoppers are now less trusting of their main supermarket as a result of the scandal

• Shoppers do not like the idea of eating horse meat and 19% would consider switching supermarket as a result of the presence of horse meat in products

London, [21^st February 2013] - Research by Canadean Custom Solutions has found that UK shoppers are considerably more likely to attach blame to the suppliers of products as opposed to the supermarkets when it comes to the horse meat scandal. Nevertheless, the survey of 2,000 respondents has found that the crisis has further eroded trust in UK supermarkets, and whilst some believe media coverage on the topic has been exaggerated, most shoppers feel squeamish about the idea of eating horse meat.

UK shoppers are considerably more likely to "blame" the supplier of beef products (88%) as opposed to supermarkets (12%) when it comes to the horsemeat scandal, research conducted by Canadean Custom Solutions has found. This has undoubtedly had an impact on shopper attitudes and behaviours, with 51% saying they are now sceptical about the quality of meat stocked in their main supermarket. However, despite the vast majority shifting blame towards the suppliers, 38% of shoppers say that they are now less trusting of their supermarket as a result of the scandal. Perhaps more worrying for supermarkets, one in five (19%) said that they would be likely to switch their main supermarket if horse meat was found on the retailer's shelves.

Overall, shoppers have concerns about the presence of horse meat on the aisles of UK retailers, with a considerably higher proportion saying this (60%) compared to those who believe the media coverage on the issue has been exaggerated (27%). When it comes to the reasons for concern over the scandal, shoppers are more likely not to like the idea of eating horse meat (55%) as opposed to horse meat potentially having a negative impact on their health (22%). This highlights how trust and transparency is the main thing bothering shoppers. The fact that four in ten are now less trusting of supermarkets indicates that many feel that the retailers could have done more to avoid the crisis, such as sourcing better suppliers, conducting more stringent quality checks etc, with the decision to source cheaper meat being the result of supermarkets looking to maximise profits.

Michael Hughes, Research Manager at Canadean Custom Solutions states "the horse meat crisis has further eroded levels of trust that shoppers place towards supermarkets. More than anything, shoppers value trust and transparency and while they primarily attach the blame to suppliers of the products, they also feel the supermarkets could have done more to prevent the crisis from happening". 

Figure 1: To what extent do you agree with the statement "I am now less trusting of my main supermarket as a result of the horse meat scandal", UK, February 2013, n = 2,000

Editor's Note:
Canadean Consumer is the consumer and shopper insight division of Canadean Ltd., the consumer market experts. Canadean provides market research, reports, databases and custom solutions to the global FMCG, retail, packaging, retail and ingredients industries. With headquarters in the UK and regional offices around the world, Canadean has built a reputation as the benchmark for consumer market intelligence. Local operations are now based in Madrid, Frankfurt, Buenos Aires, Mexico City, New York, Hyderabad, Seoul, Hong Kong, Beijing and Shanghai.

Press Contact:
Milli d'Hangest d'Yvoy 

Marketing Executive

E: milli.dHangestdYvoy@progressivemediagroup.com

The Mexican Defense Industry - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017

 The Mexican Defense Industry - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017

London, 14th February, 2013 - Analyse leading companies, get up-to-date with key news and recognise unique opportunities with Strategic Defense Intelligence’s forecast reports.

The Mexican defense budget recorded a CAGR of 8.6% during the review period, as expenditure was driven by measures to control drug trafficking and organised crime through contributions to United Nations (UN) peacekeeping missions.

In response to the battle against drug gangs acquiring high end sophisticated weaponry, the Mexican MoD has employed city-wide surveillance and monitoring systems, UAVs, aerostats, medium-lift helicopters, maritime patrol aircraft, and aircraft with advanced electro-optical surveillance turrets.

• Mexican defense expenditure, valued at US$6.09 billion in 2012, registered a CAGR of 8.6% during the review period and is expected to grow at a CAGR of 9% during the forecast period, to reach an estimated US$9.55 billion in 2017. 

• Mexico’s cumulative defense expenditure over the forecast period is expected to be US$41.21 billion, of which, US$39.4 billion is expected to be revenue expenditure.

For more information on this report, please click here.

About Industry Report Store:

Industry Report Store is the most comprehensive online resource for market research reports, analysis, news and expert commentary on 40 industries in over 100 countries. Find over 150,000 global and country sector reports, consumer trend reports, company profiles and market guides, all available for online purchase.

The reports in our store draw on robust primary and secondary research, proprietary databases, industry surveys and insightful analysis from our own in-house expert teams and from carefully selected third-party publishers. We provide access to the latest data on global and local markets, key industries, top companies, M&A activity, new product launches and trends so you can make faster and better informed business decisions.

With access to over 400 in-house analysts and journalists, and a global media presence in over 30 industries, Industry Report Store delivers in-depth knowledge of local markets worldwide.

Press Contact:
Daniel Evans

Marketing Coordinator

E: Daniel.evans@progressivemediagroup.com

Netherlands Foodservice: The Future of Foodservice in the Netherlands to 2016

Netherlands Foodservice: The Future of Foodservice in the Netherlands to 2016 

 
London, 12th February, 2013 - The Dutch foodservice sector is expected to grow at a CAGR of 2.6% till 2016. The growth is expected to be supported by the increasing trend towards single households, the increase in the number of households, the increase in disposable incomes in the country and the higher demand for convenience and quick service


In the Netherlands, the foodservice industry was supported by the increasing number of households in the country and the increase in demand for convenience food by the working population. The Dutch foodservice market was also directly or indirectly affected by the increase in Goods and Services Tax (GST) on alcohol and the nationwide smoking ban. 

• Within the Dutch foodservice market, the profit sector accounted for 95.7% of total sales. Within the profit sector, restaurants and pubs, and club and bar channels accounted for the majority of the share. The cost sector accounted for 4.3% of total Dutch foodservice sales with the healthcare channel being the largest contributor in this sector.

• In the Netherlands, the foodservice industry was supported by the increasing number of households in the country and the increase in demand for convenience food by the working population. However, the global economic recession negatively affected Dutch foodservice sales.

• The Dutch foodservice market is anticipated to demonstrate growth during the forecast period, as a result of the increase in disposable incomes and the increase in the number of single-person households in the country.

 For more information on this report, please click here.

About Industry Report Store:

Industry Report Store is the most comprehensive online resource for market research reports, analysis, news and expert commentary on 40 industries in over 100 countries. Find over 150,000 global and country sector reports, consumer trend reports, company profiles and market guides, all available for online purchase.
 

The reports in our store draw on robust primary and secondary research, proprietary databases, industry surveys and insightful analysis from our own in-house expert teams and from carefully selected third-party publishers. We provide access to the latest data on global and local markets, key industries, top companies, M&A activity, new product launches and trends so you can make faster and better informed business decisions.

With access to over 400 in-house analysts and journalists, and a global media presence in over 30 industries, Industry Report Store delivers in-depth knowledge of local markets worldwide.

Press Contact:
Daniel Evans

Marketing Coordinator

T:+44(0) 20 7936 6830