Consumer and Market Insights: Prepared Meals Market in Hong Kong. CS1987MF May 2015

Transcription

1 Consumer and Market Insights: Prepared Meals Market in Hong Kong CS1987MF May

2 Report scope This report brings together multiple data sources to provide a comprehensive overview of the Prepared Meals sector in Hong Kong as part of our global coverage of the sector. This report draws on market data, analyzing value and volume data and category and channel distribution breakdown, also highlighting which categories are witnessing the biggest growth. Brand and Private Label analysis is also provided. It contains top line foodservice transaction figures highlighting where the most opportunistic channels are for industry players in the country. Detailed packaging analysis is also provided, analyzing category trends and also packaging material and type. The report also contains qualitative analysis of the most influential consumer trends driving consumption occasions in the category, analyzing how these trends will evolve and highlighting best practice product examples to show how manufacturers are targeting the trend. Market data coverage: The overall market value and volume data included in the report is for the period Category coverage: This report provides information on three categories including Meal Kits, Pizza and Ready Meals. More extensive brand coverage: The report provides more extensive brand share coverage. Brand share data is also validated by inputs from industry experts. Distribution channel: The Distribution data included in the report covers 11 distribution channels including Cash & Carries & Warehouse Clubs, Dollar Stores, Variety Stores & General Merchandise Retailers, Hypermarkets & Supermarkets, Convenience Stores Time period: The report provides overall market value and volume data, including category level data for the period Distribution channel and brand share data is included for the year /12/ /05/2015 5/12/2015 2

3 Table of Contents Country Context Market Overview Retail Landscape and Key Distribution Channels Packaging Brand and Private Label Share Appendix 3

4 Hong Kong s flourishing services sector has contributed to the economic prosperity in the country GDP Per Capita (HKD) Consumer Price Index Annual growth (%) Population (Million) Annual Growth (%) Hong Kong is one of the most developed economies in Asia-Pacific region. Its open market policy has attracted international trade and finance but also makes it vulnerable to the global economic changes. GDP Per Capita Population 350, , , , , ,000 50, % The GDP growth rate of Hong Kong showed an upward trend in 2014 after declining during It reached HKD315,353.4 in Consumer Price Index The consumer prices in Hong Kong witnessed strong growth during the period , reaching basis points in % 6% 4% 2% 0% -2% -4% % 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% The population growth rate has declined from 1.2% during 2013 to 0.5% in The total population of Hong Kong in 2014 was 7.2 million. Age Profile The population matrix of Hong Kong is skewed towards older consumers with 34.2% of the population in Pre- Mid-Lifers and Mid-Lifers category. 4

5 The retail and foodservice markets in Hong Kong: an overview This slide provides an overview of the retail and foodservice markets in Hong Kong, in which industry players in the Prepared Meals sector operate: Retail Foodservice Country indicator Units Value Profit Sector Total value of Food market, 2014 US$ millions Total number of transactions in the Profit Sector, 2014: 1,131.8 million Total volume of Food market, 2014 Total Food volume growth Proportion of Prepared Meals as part of overall food volume, 2014 Biggest category within the Prepared Meals market as part of overall volume, 2014 Private label penetration in Prepared Meals market, 2014 Figures for overall food 2014 are forecasts. Millions of Kg CAGR 4.5% % 0.6% % Ready Meals, 74.2% % 10.9% Largest channel in the profit sector and transactions, 2014: Restaurants, million Cost Sector Total number of transactions in the cost sector, 2014: million Largest channel in the cost sector and transactions, 2014: Education, million 5

6 Table of Contents Country Context Market Overview Retail Landscape and Key Distribution Channels Packaging Brand and Private Label Share Appendix 6

7 Hong Kong's Prepared Meals market is forecast to register moderate growth in value terms during The Prepared Meals market in Hong Kong registered moderate growth in value terms during It grew at a CAGR of 3.9% in local currency terms during and is forecast to grow at a slightly higher CAGR of 4.3% during The volume consumption of Prepared Meals grew at a high CAGR of 3.4% during and is forecast to register growth at a CAGR of 3.7% during Market value of Hong Kong's Prepared Meals market, Market volume of Hong Kong's Prepared Meals market, (Millions of Kg), HKD million US$ million CAGR CAGR % 3.9% 4.3% 4.3% CAGR % CAGR % 7

8 Hong Kong's Prepared Meals market is forecast to register more than 4% growth in value terms during Growth Rate (%) Hong Kong s Prepared Meals market is forecast to grow at a CAGR of 4.3% from HKD602.6 million (US$77.7 million) in 2014 to HKD744.2 million (US$96.0 million) in The growth rate in US$ terms is forecast to rise slightly from a 3.9% CAGR during to 4.3% during The volume consumption is forecast to grow at a CAGR of 3.7% during from 7.6 Kg million in 2014 to 9.2 Kg million in Per capita consumption is forecast to increase from 0.9 Kg in 2009 to 1.2 Kg in Hong Kong s Prepared Meals market registered a moderate growth during in US Dollar terms and is forecast to grow at a CAGR of 4.3% during the period Market value (HKD million and US$ million) and volume growth of Prepared Meals market, % Value (HKD) 4% Value (US$ m) 3% Volume (Kg m) 2% 1% 0%

9 Value-for-money Prepared Meals products are gaining consumer preference due to increasing food prices 2014 Annual Change % Hong Kong s Prepared Meals market grew by 4.1% in value terms and 3.5% in volume terms, in The average prices of Prepared Meals products increased by 0.5% while Food Price Inflation stood at 4.2%. Consumers in Hong Kong are trading down to better value for money Prepared Meals products which can be attributed to the high food inflation rate in the country. Extent to which consumers are trading up or down in Hong Kong's Bakery and Cereals market 10% 8% 6% 4.2% -3.7% 4% 0.5% 2% 4.1% 3.5% 0% Value Change Volume Change Average price Change Food Price Inflation Trading up or down 9

10 Ready Meals is the most consumed Prepared Meals product in Hong Kong Market volume of Hong Kong's Prepared Meals market, (Millions of Kg), 2014, by category The Ready Meals category accounted for 74.2% of Hong Kong s Prepared Meals market volume followed by Pizza with a 16.2% share in Meal Kits forecast to be the fastest growing category in with a CAGR of 3.8% during followed by Ready Meals with a CAGR of 3.7% Ready Meals 5.7 Market Volume, forecasted Compound Annual Growth Rate, Pizza Market Volume (Kg m) 2014 CAGR Ready Meals % Meal Kit Pizza % Meal Kit % 10

11 The Ready Meals category accounted for the largest value consumption of the Prepared Meals Category Value in HKD CAGR (%) The Ready Meals category valued at HKD352.5 million (US$45.5 million) accounted for the largest value consumption with 58.5% of the Prepared Meals market share in 2014 with a CAGR of 4.3% in local currency terms, during It is followed by the Pizza category with a 26.5% share in Market value of categories in Hong Kong's Prepared Meals market 10% 8% Ready Meals 6% Pizza 4% Meal Kit 2% 2% 4% 6% 8% 10% Category Value in HKD CAGR (%) Bubble size= 2014 Category Value (HKD million) 11

12 Ready Meals, the largest category in value terms will register high growth during Value (US$ Million) Value (US$ Million) Annual Growth (%) Annual Growth (%) Value (HKD Million) Value (HKD Million) Annual Growth (%) Annual Growth (%) Market value of categories in the Prepared Meals market Ready Meals US$ Ready Meals HKD 60 5% 50 4% 40 3% 30 2% % 0 0% % 4% 2% 0% The Ready Meals category is forecast to grow at a CAGR of 4.1% during from HKD291.0 million (US$37.5million) in 2009 to HKD435.3 million (US$56.2 million) in Frozen Ready Meals with a 60.4% share was the largest segment in the Ready Meals category in Pizza US$ Value (US$) Annual Growth (%) Value (US$) Annual Growth (%) 5% 4% 3% 2% 1% 0% Pizza HKD Value(HKD) Annual Growth (%) The Pizza category is forecast to grow at a CAGR of 4.0% during from HKD132.9 million (US$17.1 million) in 2009 to HKD197.0 million (US$25.4 million) in Frozen Pizza with a 67.4% share was the largest segment in the Pizza category in Value(HKD) Annual Growth (%) 6% 4% 2% 0% 5/12/ /05/2015 5/12/

13 Meal Kit is the smallest category in value terms Value (US$ Million) Annual Growth (%) Value (HKD Million) Annual Growth (%) Market value of categories in the Prepared Meals market Meal Kit US$ Meal Kit HKD 20 5% 15 4% 3% 10 2% 5 1% 0 0% % 4% 2% 0% Value (US$) Annual Growth (%) Value(HKD) Annual Growth (%) The Meal Kit category is forecast to grow at a CAGR of 4.1% during from HKD74.7 million (US$9.6 million) in 2009 to HKD111.9 million (US$14.4 million) in Chilled Meal Kits with a 36.8% share was the largest segment in the Meal Kit category in /12/ /05/2015 5/12/

14 Category level pricing Average category level prices (HKD) in Hong Kong s Prepared Meals market, 2014 Category Average Price/ Kg (HKD) 2014 Average Price/Kg (USD) 2014 Ready Meals Meal Kit Pizza /12/ /05/2015 5/12/

15 Frozen Ready Meals is the fastest growing segment in the Ready Meals category Segment s share of the overall category by value and change in market share in Hong Kong's Prepared Meals market, 2014 Category Segment Segment s Share, 2014 Change 2014/2019 Frozen Ready Meals 60.4% -0.2% Ready Meals Chilled Ready Meals 16.9% 0.1% Ambient Ready Meals 12.5% 0.1% Dried Ready Meals 10.2% 0.0% Pizza Frozen Pizza 67.4% 0.0% Chilled Pizza 32.6% 0.0% Chilled Meal Kits 36.8% -0.1% Meal Kits Ambient Meal Kits 33.6% 0.2% Frozen Meal Kits 29.6% -0.1% 5/12/ /05/2015 5/12/

16 Table of Contents Country Context Market Overview Retail Landscape and Key Distribution Channels Packaging Brand and Private Label Share Appendix 16

17 Profiles of selected Grocery Retailers in Hong Kong Leading retailers in Hong Kong s Food retail market, 2013 Leading retailers, Hong Kong Company Name Wellcome Overview Wellcome is one of the leading grocery Supermarket chain in Hong Kong. It is owned by Dairy Farm which is the subsidiary of Jardine Matheson Holdings. ParknShop 7-Eleven DCH Food mart City Super ParknShop is owned by A.S. Watson group and is one of the largest grocery retailers in Hong Kong. ParknShop operates with more than 200 stores located across the country. 7-Eleven which is an international Convenience Store chain operates in Hong Kong under the ownership of Dairy Farm. Hong Kong approximately has Eleven stores which are located mostly in urban areas. DCH Food mart is one of the leading food retailers in Hong Kong and operates with over 50 stores located across the country. This includes 7 DCH Food Mart Deluxe stores which are premium specialty stores. City Super offers products that are not otherwise available in Hong Kong and targets urban consumers who seek premium products. It currently operates with 19 stores in the country 17

18 Hypermarkets & Supermarkets is the leading distribution channel in Hong Kong s Food market Value (US$ billion) Leading distribution channels in Hong Kong s Prepared Meals market, 2014 Leading distribution channels Overall Food Leading distribution channels Prepared Meals % 4% 2% Hypermarkets & Supermarkets 77% Convenience Stores 2 0 Hypermarkets & Supermarkets Food & Drinks Specialists Convenience Stores Others Food & Drinks Specialists Others Prepared Meals as a percentage of overall Food: Prepared Meals accounted for 1.2% of food retail sales in Hong Kong in Hypermarkets & Supermarkets, the leading distribution channel in Hong Kong s food market accounted for 59.1% of food retail sales in 2013, registering fastest growth at a CAGR of 5.2% in local currency terms, during It is followed by Food & Drinks Specialists with a 21.3% share, registering growth at a CAGR of 5.0%. Hypermarkets & Supermarkets, the leading distribution channel in Hong Kong s Prepared Meals market accounted for 77.6% of Prepared Meals distribution in 2014 and was followed by Convenience Stores with a 16.8% share. Food & Drinks Specialists registered fastest growth at a CAGR of 8.0% in local currency terms during

19 Hypermarkets & Supermarkets is the leading distribution channel for Prepared Meals market Leading distribution channels by category in the Prepared Meals market, 2014 Key distribution channels Ready Meals Key distribution channels Pizza 15% 4% 2% 79% Hypermarkets & Supermarkets 19% 3% 2% Hypermarkets & Supermarkets 76% Convenience Stores Convenience Stores Food & Drinks Specialists Food & Drinks Specialists Others Others Key distribution channels Meal Kits 18% 4% 2% Hypermarkets & Supermarkets 76% Convenience Stores Food & Drinks Specialists Others 19

20 Table of Contents Country Context Market Overview Retail Landscape and Key Distribution Channels Packaging Brand and Private Label Share Appendix 20

21 Rigid Plastics is the most used packaging material in the Prepared Meals market Overview of Hong Kong s Prepared Meals market by type of packaging in 2014 Key Packaging Materials Key Packaging Materials by category Rigid Plastics 68.7% 15% Rigid Plastics Flexible Packaging Others Flexible Packaging Paper & Board Rigid Metal 3.4% 9.5% 18.4% 7% 76% 100% 78% 24% Ready Meals Pizza Meal Kits Rigid Plastics was the most used packaging material in Hong Kong s Prepared Meals market followed by Flexible Packaging with 18.4% share in Key Container Types 9% 10% 3% 3% Tray 23% 46% Tray, the most commonly used container type accounted for 45.5% of the market share in It was followed by Tub with a 23.2% packaging share. Tub Box Bag/Sachet Film Can - Food Flexible Packaging was preferred across all Prepared Meals categories, while Rigid Plastics was mostly used for Ready Meals in Key Container Types by category 22% 27% 51% Tray Tub Others 100% Tray was preferred for the packaging of Ready Meals and Meal Kits in % 24% Ready Meals Pizza Meal Kits 21

22 Foil is the most preferred closure type in Hong Kong s Prepared Meals market Overview of Hong Kong s Prepared Meals market by packaging closures/outers used in 2014 Key Packaging Closures Key Packaging Closures by category Foil Film Prize Off 1 Foil 2 Film 23.2% 17.8% 21% 3 Prize Off 1.2% 27% 24% Foil closure was used for packaging of 23.2% of Prepared Meals products in Key Packaging Outers Ready Meals Foil and Film closures were used for the packaging of Ready Meals, while Prize Off was used for the packaging of Meal Kits. Key Packaging Outers by category Meal Kits * Data for Prepared Meals using Closures. 1 Sleeve 23.8% Sleeve Box Shrink Wrap 2 3 Box Shrink Wrap 12.7% 2.8% 3% 28% 88% 100% Ready Meals Pizza Meal Kits Sleeve outer was used for the packaging of 23.8% of Prepared Meals products in Box outer was mainly preferred for the packaging of Pizza and Meal Kits while Sleeve was mainly used for Ready Meals in * Data for Prepared Meals using outers. 22

23 Rigid Plastics is forecast to register fastest growth during Million Units Million Units Million Units Million Units Key Packaging Materials Overview of Prepared Meals market by type of packaging in Rigid Plastics Flexible Packaging Paper & Board Rigid Plastics will register high growth at a CAGR of 4.5% during to reach 31.6 million units in Key Container Types Tray Tub Box Bag/Sachet Film Can - Food The use of Tray containers will grow at a CAGR of 4.2% during to reach 20.6 million units in Key Packaging Closures Key Packaging Outers Foil Film Prize Off 0 Sleeve Box Shrink Wrap Foil Closures will register the fastest growth at a CAGR of 5.0% during to reach 11.0 million units in The use of Sleeve outer will grow at a CAGR of 4.0% during to reach 10.7 million units in

24 Table of Contents Country Context Market Overview Retail Landscape and Key Distribution Channels Packaging Brand and Private Label Share Appendix 24

25 The Pizza category witnessed highest private label penetration in the Prepared Meal market in Hong Kong The overall penetration of private label products in Hong Kong is low at 10.9%. The Pizza category has the highest private labels penetration with 14.3% share in It is followed by Ready Meals with 12.2% share. Penetration of private label, by categories, in the Prepared Meal market, 2014 Private Label Brand 100% 80% 60% 40% 20% 0% Pizza Overall Ready Meals 25

26 Private label Prepared Meals products are gaining share at faster pace than branded products in Hong Kong Private label value in HKD CAGR (%) All private label categories are gaining share in the Prepared meals Market. The overall private label growth in was 4.9%, while that of branded products was lower at 3.9%. This indicates growing preference for Value-for-money store brands among consumers in Hong Kong. Private label value performance compared to brand value performance, by categories, in Hong Kong s Prepared Meals market, % 5% Private Labels are taking market share from Brands 4% Pizza 3% 2% Ready Meals 1% Brands are taking market share from Private labels 0% 0% 1% 2% 3% 4% 5% 6% Brand value in HKD CAGR (%) Bubble size = 2014 Private Label value 26

27 Wanchai Ferry is the leading brand in the Ready Meals category Ready Meals Brand share Leading brands - market share Pizza Brand share Leading brands - market share 32.3% 18.4% Wanchai Ferry Amoy 19.4% Pizza Vissana MaLing 3.2% Celeste 12.2% 11.2% 8.6% 3.9% Weight Watchers Private Label Others 63.1% 14.3% Private Label Others Meal Kits Brand share Leading brands - market share Others 100.0% 27

28 Pizza Vissana is the leading brand in the Pizza category Brand Ready Meals Brand shares in the Prepared Meals market, 2014 Share of category, 2014 Wanchai Ferry 18.4% Amoy 11.2% MaLing 8.6% Weight Watchers 3.9% Brand Pizza Share of category, 2014 Pizza Vissana 19.4% Celeste 3.2% Private Label 14.3% Others 63.1% Narcissus 3.6% Knorr 3.5% Michelina's 1.9% CP 1.5% Doll 0.9% Brand Meal Kits Share of category, 2014 Others 100.0% Synear 0.9% Ajinomoto 0.8% Private Label 12.2% Others 32.3% 28

29 Table of Contents Country Context Market Overview Retail Landscape and Key Distribution Channels Packaging Brand and Private Label Share Appendix 29

30 Appendix - Country Context Exchange Rates: HKD-US$, Year HKD-US$ Exchange Rate (Annual Average) GDP Per Capita (HKD) Year GDP Per Capita (HKD) 237, , , , , ,353.4 Population Year Total (Millions) Annual Growth (%) 0.0% 0.7% 0.7% 1.2% 0.5% 0.5% Consumer Price Index Year Index Age Profile (Millions of Persons) Age Group 0 to 9 10 to to to to to to to Total (Millions)

31 Appendix Sector Overview Hong Kong's Food sales Distribution (US$ Billion) Hypermarkets & Supermarkets Food & drinks specialists Convenience Stores Others Hong Kong's Prepared Meals Market Value by Category (US$ Million and HKD Million) Category 2014 Value (US$ Million) CAGR (%) CAGR (%) 2014 Value (HKD Million) CAGR (%) CAGR (%) Ready Meals % 4.3% % 4.3% Meal Kits % 4.3% % 4.3% Pizza % 4.3% % 4.3% 31

32 Appendix Category Data Ready Meals Market Value Value (US$ Million) Growth (%) 4.0% 3.4% 3.6% 4.3% 4.0% 4.1% 4.2% 4.2% 4.3% 4.4% 4.5% Value (HKD Million) Growth (%) 3.5% 3.7% 3.8% 3.9% 4.0% 4.1% 4.2% 4.2% 4.3% 4.4% 4.5% Pizza Market Value Value (US$ Million) Growth (%) 3.8% 3.3% 3.4% 4.1% 3.8% 4.1% 4.2% 4.2% 4.3% 4.4% 4.5% Value (HKD Million) Growth (%) 3.4% 3.5% 3.6% 3.7% 3.8% 4.0% 4.1% 4.2% 4.3% 4.4% 4.5% Meal Kits Market Value Value (US$ Million) Growth (%) 4.0% 3.4% 3.6% 4.4% 4.1% 4.1% 4.2% 4.3% 4.3% 4.4% 4.5% Value (HKD Million) Growth (%) 3.5% 3.7% 3.8% 4.0% 4.1% 4.1% 4.2% 4.3% 4.3% 4.4% 4.5% 32

33 Appendix Segment data Market Share by Segment by Value Category Segment Segment s Share, 2014 Segment s Share, 2019 Frozen Ready Meals 60.4% 60.3% Ready Meals Chilled Ready Meals 16.9% 17.0% Ambient Ready Meals 12.5% 12.6% Dried Ready Meals 10.2% 10.2% Pizza Frozen Pizza 67.4% 67.5% Chilled Pizza 32.6% 32.5% Chilled Meal Kits 36.8% 36.6% Meal Kits Ambient Meal Kits 33.6% 33.8% Frozen Meal Kits 29.6% 29.5% 5/12/ /05/2015 5/12/

34 Appendix Packaging Data Packaging Materials in 2014 Vs (Millions of Packs) Packaging Material Rigid Plastics Flexible Packaging Paper & Board Rigid Metal Container Types in 2014 Vs (Millions of Packs) Container Types Tray Tub Box Bag/Sachet Film Can - Food

35 Appendix Packaging Data Closure Types in 2014 Vs (Millions of Packs) Closure Types Foil Film Prize Off Outer Types in 2014 Vs (Millions of Packs) Outer Types Sleeve Box Shrink Wrap

36 Category definitions Category Definition Pizza Pizza - Includes all chilled and frozen pizzas. Ready Meals Ready Meals - all types of complete meals which only require heating before being served, regardless of whether they are frozen, chilled, "shelf-stable (i.e. in cans or shelf-stable packs) or are dried. Includes noodlebased, rice-based and pasta-based dishes as well meat-based, vegetable-based or meat-substitute based dishes. Further, this includes main meat, fish and vegetable meal centers which require minimal accompaniments - e.g. tinned chilli con carne, cassoulet in jars etc. Includes "Pot Noodle" type products. Meal Kits Meal kits are products which provide prepared ingredients which are then combined to an individual's preference when being cooked. Includes all shelf-stable, dried, chilled and frozen meal kits. E.g. Wan Chai Ferry Xiang Gu Meal Kit, and Old El Paso Fajita Dinner Kits. 36

37 Segment definitions Category Pizza Ready Meals Definition Chilled Pizza Frozen Pizza Ambient Ready Meals Dried Ready Meals Chilled Ready Meals Frozen Ready Meals Pizzas that require to be stored in cold temperature for preserving but are not frozen. Usually stored at below 8 C. Examples include Digiorno Pizza Rising Crust Supreme (USA) and Pizza Express Margherita Pizza (UK). Pizzas that are to be frozen always and are to be stored at temperatures below -15 C. Examples include Red Baron Frozen Pizza Pepperoni and Freschetta Frozen Pizza Pepperoni. Meal that is pre packed and does not require any special storage conditions. Can be stored at room temperature. Ambient ready meals include thermostabilised, aseptic fill, shelf stable natural form of foods. Examples include Hormel Chili Con Carne With Beans (USA). Any meal that can be stored at room temperature without the need for special storage conditions. Includes meat, fish, pasta and vegetable based meals e.g. Kraft Macaroni and Cheese. Any meal that is stored at temperature below 8 C and just needs to be heated and eaten. It is prepacked and is usually in individual containers or packages. It is also called as chilled dinner, chilled meal, microwave meal, ready to eat/serve or ready meal. Includes Pasta, Noodles, Spaghettis, Pilaf, Rice and other meat base items. Examples include Kraft Deluxe Pasta and Sauce and Princes Chicken In White Sauce. Any meal that needs to be freezed at all times (stored at temperatures below -15 C) and needs to be defrosted and heated to be eaten. Frozen fully prepared meals purchased in a store to be eaten elsewhere. They aren't the same as take-away and fast food, and they aren't canned food. It is also called as frozen dinner, frozen meal, microwave meal, ready to eat/serve or ready meal. Includes Pasta, Noodles, Spaghettis, Pilaf, Rice and other meat base items. Examples include Organic Vegetarian frozen Lasagna. 37

38 Segment definitions Category Definition Meal Kits Ambient Meal Kits Chilled Meal Kits Meal kit include thermostabilised, aseptic fill, shelf stable natural form of foods. An ambient meal kit can be stored at room temperature and It requires very little preparation time. Examples include Dennison Chili Con Carne With Beans. A chilled meal kit is packed and usually has more than one meal serving and comprises of a full course meal. It needs to be stored by chilling in a refrigerator at temperature below 8 C. It requires very little preparation time and needs to be heated and eaten. Example include Scratch Vietnamese Chicken Ga Kho Gung. Frozen Meal Kits A frozen meal kit is preserved by freezing, is packed and usually has more than one meal serving and comprises of a full course meal. Frozen meal kits usually last long for a week, month or sometimes even an year. It needs to be stored by freezing in a refrigerator at temperatures below -15 C. It requires very little preparation time and needs to be heated and eaten. Examples include Military Meals Entree Variety Pack - CASE of

39 Channel definitions Channel Hypermarkets & Supermarkets Convenience Stores Food & Drinks Specialists Other Retailers Definition Hypermarkets/mass merchandisers include all sales through retailers with floor area over 2,500 sq m that carry full lines of both grocery and general merchandise (e.g. Wal-Mart). Supermarkets include all sales through retailers with a floor area of 300 sq. m. -2,500 sq. m. that offer a wide, departmentalized range of groceries, and may carry some general merchandise lines (e.g. Sainsbury's, Kroger). It also includes hard grocery discounters such as Wal-Mart. Includes all sales through stores of an area generally less than 300 sq m, that specialize in a limited range of food & grocery products designed primarily for consumers with top-up shopping needs. Also includes sales in retail outlets attached to gas stations, where fuel is the main revenue driver, kiosks, and newsstands. This also includes small independent retailers, particularly those present in countries such as China and India. Includes bakers, butchers, delicatessens, drinks specialists, fishmongers, greengrocers, Food & drinks only stores, and single category stores (e.g. stores selling only cheese, or only olives, or only honey, or only Confectionery products) Example: Amul Prepared Meals shops In India. Includes Dollar Stores, Variety Stores & General Merchandise Retailers, Cash & Carries & Warehouse Clubs, Department Stores, Drug stores & Pharmacies, eretailers, Vending Machines and other generalist retail channels not included in the categories above (e.g. market traders, charity stores, student union stores, direct sales, and Duty Free shops). 39

40 Methodology This report features data derived from market data. Market Data In order to create the data for all reports in this series and ensure their robustness, a comprehensive and empirically robust research methodology has been adopted. This combines both a large-scale program of industry research with the results of extensive primary industry interviewing and calling. Furthermore, all definitions are standardized across products and countries to ensure comparability. The two main research methods, secondary research and primary research (the program of interviewing industry contacts), are brought together and because both sets of research processes have been designed in conjunction with each other they can be combined and consolidated into the final, integrated data sets. The secondary research process involves covering publicly available sources, trade associations, specialist databases, company annual reports, and industry publications. Primary research involves a major program of interviewing leading industry executives for each category covered in each country all with local country experts; typically brand, product and marketing managers for major brands within each country. These processes help analysts in capturing both qualitative and quantitative information about the market. The final stage of the process is the triangulation of inputs obtained from all the research methods with the analyst s own understanding of the market in order to finalize the data. Once the data is finalized, it goes through various top level quality checks prior to publishing. 40

41 About Canadean About Canadean Canadean is a full-service business information provider with in-house market research capabilities. We specialize in analysis across the Consumer Markets Value Chain, covering suppliers, producers, distribution and consumers. Canadean s dedicated research and analysis teams consist of experienced professionals with an industry background in marketing, market research, consulting and advanced statistical expertise. We offer value-added market research, insight and strategic analysis and our products help companies to make better, more informed, strategic and tactical sales and marketing decisions. Canadean s areas of expertise include online research, qualitative and quantitative research, industry analysis, custom approaches, and actionable insights. In addition Canadean has built a network of consultants and specialist researchers across more than 60 countries, each with in-depth industry experience and expertise enabling us to conduct unique and insightful research via our trusted business communities. Disclaimer All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Canadean. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Canadean delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such, Canadean can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect. 41