1. July 2008 IGD Overview Nick Downing, Sales Manager GETTING ON TREND FOR TOMORROW'S SHOPPERS Gerardine Padbury, Senior Consumer Analyst, IGD

2. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. International organisation based in the UK specialising in: grocery retailing, supply chain, category management shopper research Over 600 voluntary members spanning the demand and supply chain Research focuses on the major international developments Charity raising funds through international trading company Overview of IGD IGD providing thought leadership at the heart of the food and grocery industry

3. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. Overview of IGD ReportsConferences Seminars Training Courses On-line Retailers & Markets Commissioned

4. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. Future Shoppers Key trends shaping tomorrow’s shopper Generating insight about tomorrow’s shopper Source: IGD Consumer Unit, 2008

5. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. Choice Challenge Source: IGD Consumer Unit, 2008 ‘Choice is good’ Too much choice can impact sales Choice editing

6. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. Satisfying Niche Demands Source: IGD Consumer Unit, 2008

7. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. Even customising to the individual Source: IGD Consumer Unit, 2008/Springwise.com

8. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. The drivers for the masses… Health and Wellness Premium/Indulgence Production Values/Ethics Convenience Source: IGD Consumer Unit ‘The Next Big Food Thing’ 2006

9. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. Delivered in a variety of ways Indulgence, luxury Health, nutrition, wellness Convenience Production Values & Ethics Exclusive Speciality Brands Customized Tasty Exotic Pre-prepared Food to go Packaging Single serve/portions Organic Fairtrade Local Country of Origin Assurance Schemes Environmentally friendly Added Health Benefits Organic Fresh Source: IGD Consumer Unit, 2007

10. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. Sharp rise in ethical purchasing Source: IGD Consumer Unit, 2008

11. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. Many have begun to shop ethically Source: IGD Consumer Unit, 2008 Interested in Actively look to buy 75% are actively looking to buy at least one

12. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. Mapping the different ethical shopper segments No. of ethical shopping areas interested in No. of ethical shopping areas actively look to buy Ethical Evangelists 15% Aspiring Activists 21% Focussed Followers 27% Blinkered Believers 16% Conscience Casuals 21% Source: IGD Consumer Unit, 2008

13. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. Responding to ethical demands

14. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. Purchasing for health also increasing Source: IGD Consumer Unit, 2008 * Statement included from 2004

15. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. Health claims which encourage purchasing Natural 61% Added 35% Low or reduced 66% 10% 23% 14% 5% 25% 4% 1% 18% not influenced by any of the claims mentioned to purchase food and drink Source: IGD Consumer Unit, 2008

16. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. Benefits for older shoppers Aged 60-64Aged 65-69Aged 70-74Aged 75+ Lowers cholesterol Good for heart Reduces signs of ageing Whereas with Benecol, I was told at the hospital that they are the best for cholesterol and everything and that was the hospital. Well we know cholesterol's bad for us so we’ll have that Tick marks indicate where numbers are significantly different to shoppers in younger age groups. Source: IGD Consumer Unit, 2008

17. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. Benefits for parents Tick marks indicate where numbers are significantly different to shoppers with no children under 16 years old Child aged 0-5 Child aged 6-9 Child aged 10-15 Strengthens bones Boosts Energy Helps support body's defences Maintains healthy weight Sustains blood sugar levels Feel fuller for longer Improves concentration I think you know that Calcium is going to be strong for the bones. Source: IGD Consumer Unit, 2008

18. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. Responding to health demands Source: IGD Consumer Unit, 2008

19. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. Ticking more than one box Provenance EthicalHealthConvenience Indulgence

20. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. Ticking more than one box ProvenanceEthicalHealthConvenienceIndulgence

21. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. Packaging innovation

22. © All rights reserved. No part of this presentation may be reproduced or transmitted without the prior permission of IGD. Innovating for tomorrow’s shopper Understand the big trends What is happening in the wider environment The role of science and technology Learn from other industries

23. For further information please contact: For more information on IGD commissioned research: http://www.igd.com/bespoke For more information on IGD’s Shopper Online: http://www.igd.com/theshopper Gerardine Padbury gerardine.padbury@igd.comgerardine.padbury@igd.com or 01923 851 906