1. Retailers, Categories, Shoppers And Consumers Edward Garner - Communications Director

2. The Agenda –Consumers & The Economy –The Retail Background –Nutritional Analyses –Healthy Retailers –Healthy Markets –Obesity –Health and Income >

3. Source : TNS-RI research for Nationwide Consumer Confidence Drop back from mid 2010 with inflation, tax, VAT, unemployment fears

10. DIGNITAS Postfach 9 8127 Forch, Schweiz Telefon international +41 43 366 10 70

11. Grocery Market Growth v. Inflation Now trailing inflation again Phase 1 Phase 2Phase 3

14. Latest 12-wk % Change +12%+5%+10%+27%

16. +6% Latest 12-wk % Change +13%+7%-2%

17. Two Nations?

18. Upmarket Downmarket

20. The Agenda > –Consumers & The Economy –The Retail Background –Nutritional Analyses –Healthy Retailers –Healthy Markets –Obesity –Health and Income

24. Trading Indices - Waitrose Broad Area Market Sector Market 52 w/e Jan 22 2012

28. Discounters Threat… …or not Threat… …or not

29. Back in 2008………

30. Here we go again?

34. The Big 4

35. Latest Quarter Till Roll Totals - Share of Total Grocers

39. Strong price focus

42. Trading Indices - Asda Broad Areas indexed on Total Groceries 52 w/e Jan 22 2012

47. Balance

48. Value Values

50. 12 wk y-o-y trend +13%

52. Value Values

53. Trading Indices - Sainsbury Broad Areas indexed on Total Groceries 52 w/e Jan 22 2012

54. Fairtrade

55. Total Grocers Sainsbury

57. Eggs

58. Sainsburys Asda Tesco Morrisons

59. Trading Indices - Sainsbury Broad Area Market Sector Market 52 w/e Jan 12 2012

65. Trading Indices - Morrisons Broad Areas indexed on Total Groceries 52 w/e Jan 12 2012

66. Trading Indices - Morrisons Market Sectors indexed on Total Groceries 52 w/e Jan 12 2012

67. Eat Fresh, Pay Less Live well for less

68. Iceland Share of Till Roll Grocers

77. The Agenda > –Consumers & The Economy –The Retail Background –Nutritional Analyses –Healthy Retailers –Healthy Markets –Obesity –Health and Income

78. 201119952006 11% 55% 34% 41% 21% 38% 39% 22% 39% Why we eat? Health has doubled in importance over the past decade Enjoyment Practicality Health In Home / Lunchbox Consumption 12 m/e August 2011

79. Kantar Worldpanel Usage In Home / Lunchbox Consumption 12 m/e August 2011 WHICH OCCASION OWNS HEALTH ? LUNCHBOX AND BREAKFAST MOST DRIVEN BY HEALTH Meal Occasion: % of consumption for reasons of Health Breakfast 25.1% Lunch 21.6% Teatime 16.8% Evening 19.1% Snacking 19.9% Lunchbox 27.0% Kantar Worldpanel Nutritional Purchasing

80. 2009 43 2010 41 2011 40 I buy low Salt products if available % Agreeing 2004 42 2005 42 2006 45 2007 46 2008 45 2009 28 2010 28 2011 27 Im concerned about the amount of Salt I consume % Agreeing 2004 33 2005 32 2006 32 2007 34 2008 31 Kantar Worldpanel Usage Annual Attitude Survey 6 m/e Aug 2011

81. 2009 40 2010 38 2011 38 I actively manage Sugar % Agreeing 2004 47 2005 47 2006 46 2007 44 2008 42 2009 30 2010 29 2011 28 I look for high Fibre foods % Agreeing 2004 32 2005 33 2006 34 2007 31 2008 30 Kantar Worldpanel Usage Annual Attitude Survey 6 m/e Aug 2011

82. 2009 52 2010 52 2011 51 I understand Traffic Lights % Agreeing 2007 51 2008 51 I understand GDA Labelling % Agreeing Kantar Worldpanel Usage Annual Attitude Survey 6 m/e Aug 2011 2009 45 2010 44 2011 43 2007 40 2008 41

83. A LESS AFFLUENT NUTRITIONAL UNDERCLASS EXISTS DE social class Consumption servings and purchasing of Food & Drink Yr to Oct 11 indexed on total GB Index Take Home Food and Drink Purchasing 52 we Oct 2011

84. Kantar Worldpanel Nutritional Purchasing Total Food & Drink: Take Home Purchasing 52 w/e October 2011 Older households higher sodium and saturates % nutrient by Consumer group indexed on volume % :Total Food and Drink

85. We are still exceeding our allowance in all the areas of focus, especially Saturates Kantar Worldpanel Nutritional Purchasing Total Food & Drink: Take Home Purchasing 52 w/e October 2011 GDAsCaloriesSugarsFatSaturatesSalt Women200090g70g20g6g Men2500120g95g30g6g Children 5-10180085g70g20g4g Allowance/ household 50552361795613 Purchase/ household 50342801997518 Index100119111134138 108 excl Table Salt

86. Sodium: % of Categories Kantar Worldpanel Nutritional Purchasing Total Food & Drink: Take Home Purchasing 52 w/e October 2011

87. Fresh Red Meat still contributes over 12% protein Protein: % of Categories Kantar Worldpanel Nutritional Purchasing Total Food & Drink: Take Home Purchasing 52 w/e October 2011

88. Fruit, Veg, Bread & Cereals continue to lose share of Fibre purchasing Fibre: % of Categories Kantar Worldpanel Nutritional Purchasing Total Food & Drink: Take Home Purchasing 52 w/e October 2011

89. Sugar: % of Categories Kantar Worldpanel Nutritional Purchasing Total Food & Drink: Take Home Purchasing 52 w/e October 2011

90. © Kantar Worldpanel Worldpanel Nutrition Weve seen large increases in Saturates purchasing this year compared to volume growth Nutritional Values: Year on Year % Change for take home food and drink Dec 2011 vs Dec 2010 Total Food & Drink: Take Home Purchasing 52 w/e December 2011 N.B. Volume (nutrition) uses similar definitions to regular volume measure but converts all volumes into kgs, litres and servings so that nutritional information can be added

91. © Kantar Worldpanel Worldpanel Nutrition but our purchasing still exceeds this amount with an over index of 136, and this is just the food brought back into the home… 136 20 g a day The recommended daily consumption amounts for saturated fat are… 30g a day Total Food & Drink: Take Home Purchasing 52 w/e December 2011

92. © Kantar Worldpanel Worldpanel Nutrition Saturated fat is the most promoted nutrient- 40% of saturates in the shopping basket are bought on promotion 36% 35% 37% 40% 33% Calories ProteinFibre Sugar Saturates Sodium Volume 37% Promotions: % total food and drink bought on promotion by nutrient Total Food & Drink: Take Home Purchasing 52 w/e December 2011

93. © Kantar Worldpanel Worldpanel Nutrition These are the categories that are the biggest contributors to saturated fat Saturates: Food and drink category % contribution to total saturates Total Food & Drink: Take Home Purchasing 52 w/e December 2011

94. © Kantar Worldpanel Worldpanel Nutrition Many of these are also categories that are highly promoted Saturates: % Contribution by Category Total Food & Drink: Take Home Purchasing 52 w/e December 2011

95. © Kantar Worldpanel Worldpanel Nutrition Who purchases the most saturated fat? C2DEs over index in their saturated fat purchasing… Index: Saturates purchased by social class Total Food & Drink: Take Home Purchasing 52 w/e December 2011 Pre family Index: 94 Middle family Index: 98 Retired Index:102 And so do older dependents and the elderly Index: Saturates purchased by lifestage

96. © Kantar Worldpanel Worldpanel Nutrition -As a nation there are more saturates in our take home shopping baskets than there were a year ago. -40% of saturates are purchased on promotion- highest value out of the key nutrients -Retired people and those in social classes C2, D & E over index in their saturates purchasing -Heavily promoted categories are often the ones that are key contributors to saturated fat Saturates Summary

97. The Agenda > –Consumers & The Economy –The Retail Background –Nutritional Analyses –Healthy Retailers –Healthy Markets –Obesity –Health and Income

106. The Agenda > –Consumers & The Economy –The Retail Background –Nutritional Analyses –Healthy Retailers –Healthy Markets –Obesity –Health and Income

113. The Agenda > –Consumers & The Economy –The Retail Background –Nutritional Analyses –Healthy Retailers –Healthy Markets –Obesity –Health and Income

121. The Agenda –Consumers & The Economy –The Retail Background –Nutritional Analyses –Healthy Retailers –Healthy Markets –Obesity –Health and Income >

128. Seeking Differentiation

130. The start of yet another supermarket petrol price war? Asda cuts prices to lowest level for nine months

131. The Branding of Own-Brand

139. edward.garner@kantarworldpanel.com twitter edgarner