1. Frozen Potato Products Brakes
CATEGORYOUTLOOK
Frozen Potato Products Brakes
28th May 2014

2. Content UK market overview: Out of Home & Potato Category Trends
About Aviko
Anticipating on market trends
Brakes: thoughts on potato category in Brakes

3. UK Market Overview

4. OOH Market: Traffic & Spend
Consumers bought fewer items when eating out and are out slightly less often than last year -Average individual spend: + 0.9% -Traffic: -0.7%
Source: Potato Council. Foodservice report YE Sept 13

5. OOH Market: Traffic distribution
Consumers bought fewer items when eating out and are out slightly less often than last year - Traffic at weekend: growing - Breakfast continue to grow
Source: Potato Council. Foodservice report YE Sept 13

6. OOH Market: Traffic per key segment
QSR - Uplift in total spend, driven by higher prices per item - Breakfast and lunch occasions have performed well (But; compared to other channels, they account for a smaller no. of visits) - Weekend visits increased, consumers are eating out more for social reasons
Pubs - Average spend increased by 0.5% - Number of visits: +0.9% - Reversing trend in Q3: sales: +4.3% / visits: +3.3% - Food is growing
FSR - Average spend: -1.0% - Number of visits: -0.6% - Decline at key occasions (Lunch and Dinner) remain major ongoing concern for the segment
Workplace/ education - Average spend: -3.7% - Number of visits: 2.9% - Trend apparent across all day parts, no meal time in growth
Source: Potato Council. Foodservice report YE Sept 13

7. OOH Market: Occasions
Weekday visits make up most traffic in the out of home market
However; total traffic growth has come mainly at the weekends over the last three years
Matching a shift in motivations; social drivers are becoming more important
Breakfast continues to grow: accounting for 10.4% of all out-of-home traffic
Source: Potato Council. Foodservice report YE Sept 13

8. OOH Market: Potato consumption
Total potato servings Out of Home: 1.72bn
Potato consumption – incidence - Potatoes currently feature in 15.0% of OOH food and drink orders % of orders include chips
Source: Potato Council. Foodservice report YE Sept 13

9. OOH Market: Focus on overall food
What menu items are growing? - Chicken burgers - Chicken wraps - Fried & Non-fried fish - Traditional roast
.... And which are doing less well? - Bacon - Salad - Chinese dishes
Source: Potato Council. Foodservice report YE Sept 13

10. Trends– Alegra Ageing population, leading to:
Decline in 15-24yrs group, but they eat out more frequently
Increase in 65+ yrs, growth in number of meals eaten out
Long term outlook
Healthy eating & Obesity
Value consciousness
Growing Foodie Culture
Price consciousness
Ageing population
Social media & internet
2020 Top Cuisines predictions:
Healthier
South East Asian Cuisine
British
Premium Chicken
Premium Burger
Global Fusion
Mediterranean

11. Trends in profit sector

12. Blurring Boundaries in the profit sector
COMMON DENOMINATORS
Value-for-money is becoming more and more important
Speed of service is key
Broad spectrum required on the menu: ranging from ‘health’ to indulgence’
Highly competitive offering meal deals and promotions

13. Focus on casual dining (Horizons)
Segmentation – average spend: QSR <£5 Fast Casual Dining £5 - £10 Casual Dining £10 - £20 Restaurant £20+
The Top 10 Casual Dining restaurant chains operate a total of 2,204 outlets
An estimated 1.5 million people work in the UK’s foodservice industry including casual dining
2003 market value: £4.72bn >>
48% increase over the past decade to
Total market value (2013) of £6.9bn

14. Definition of Fast Casual Dining – Ed’s Easy Diner
= Multi unit & Strongly Branded
= Between QSR and Full Casual
= Element of service (but not full service)
= Your first order = whole order
= 30 minutes or less
= Short menu
= Clean pricing & value for money
= Alcohol unimportant
= Entertaining & distracting, a brief escape
Occasions
Breakfast = coffee > ‘I’m in control’
Lunch = speed > ‘I’m in control’
Dinner = family & friends > ‘I can relax’

15. Facts– Ed’s Easy Diner 23 Outlets
MEGATREND = High Cash, High Touch
‘The more technology intrudes our lives, the more we counterbalance it with human contact’
Ed’s Easy Diner £10.50 Average spend 35 min Average time spent <12 minutes Fresh Food Preparation 95% Order everything in one go 50% Order milkshake (=‘dessert’) ‘Entertainment’ Served Fast, Out Fast
23 Outlets
Strong database marketing: 315k members
Using loyalty marketing, no vouchers