1. © Worldpanel TM division of TNS 2006 Tomorrows Categories Daventry – October 2006 Edward Garner Communications Director Worldpanel – UK

2. © Worldpanel TM division of TNS 2006 Agenda Health Enjoyment Convenience Pester Power The Multi-Cultural Table The Ethical Consumer

3. © Worldpanel TM division of TNS 2006 HEALTH ENJOYMENT PRACTICALITY The core drivers of consumption

4. © Worldpanel TM division of TNS 2006 ® ENJOYMENT PRACTICALITY HEALTH Worldpanel Usage In Home – Ann to May 2006 1995 2006 10 year trend 11% 34% 55% BSE, Foot & Mouth, Sudan 1, Child Obesity, Jamie Oliver, Bird Flu, Supersize me, Salt & sugar content, Functional Foods, 5 a day, Fruit for schools Organics/ premium, Taste the difference, Sharing, Café culture, Eating out, Debit Credit, Treating Ready Meals, Light meals, Snacking, Budget, Microwave, Individual portions, Quick to cook 23% 42% 35% E P H

5. © Worldpanel TM division of TNS 2006 ® ENJOYMENT PRACTICALITYHEALTH +4.7% -0.5% -1.9% Macro Consumption Drivers….change in last year 25.2b occasions 30.1b occasions 16.1b occasions Worldpanel Usage In Home – Ann to May 2006

6. © Worldpanel TM division of TNS 2006 In home snacking has seen a +5% growth over the last 10 years Worldpanel Usage In Home But, in the last 3 years has seen a 4% decline Health affecting not just what we eat but how we eat!

7. © Worldpanel TM division of TNS 2006 + 18% + 37% + 35% Last 3 years - 8% - 7% -10% Worldpanel Usage In Home – Ann to Nov 2005 Last 10 years Core ‘snacking’ categories at the heart of the declining occasions

8. © Worldpanel TM division of TNS 2006

9. “Foods should be eating more of…” Source: FSA Consumer Attitudes to Food Standards conducted by TNS (3121, respondents 2003) (0) (+1) (+2) (+1) (0) (-2) (+3) (+2) () = % change from 2002

10. © Worldpanel TM division of TNS 2006 Health now accounts for 1 in 5 meal occasions within the home as a primary reason for consumption. Fish is most aligned to this. % of Individual Occasions consumed for Health TNS Worldpanel Usage – 52 W/E November 2005 (% change v 2004) % change consumed for Health alone (2005 v 2004)

11. © Worldpanel TM division of TNS 2006 Fresh/Chilled Fish being consumed 17% more year on year by children across the UK, more so than any other protein. % change in Kids eating occasions % accounted for by Kids

12. © Worldpanel TM division of TNS 2006 Fresh fish also more likely to increase consumers fruit & vegetable intake. % of Fish occasions consumed with Fresh Fruit and Vegetables +13.4% -2.7% TNS Worldpanel Usage – 52 W/E November 2005 (% change v 2004) Note: Not a standard deliverable

13. Overall Market Sizes

15. © Worldpanel TM division of TNS 2006 MATs to July Fresh Proteins – 10 year trends Chilled fish is the fastest growing fresh protein sector overtaking pork during 1997, now reaching similar levels to beef and poultry

16. © Worldpanel TM division of TNS 2006 Frozen Proteins – 10 year trends Frozen Fish, the dominant sector, is the only sector to show growth over the last 10 years. Poultry has experienced the most significant decline. MATs to July

17. © Worldpanel TM division of TNS 2006 5 A Day Consumption Younger adults have driven the growth in the last year although some way to go until they reach the level of older consumers

18. © Worldpanel TM division of TNS 2006 Health +9% Indulgence +7% TNS Worldpanel Usage – 52 W/E May 2006 Indulgence (Craving, Something Special/Treat, Social/Entertaining) Its not all about health Growth in indulgence

19. Treaters are more likely than the average person to also choose foods for health reasons. Both drivers don’t have to be in the same product Credit / Debit lifestyle.

20. © Worldpanel TM division of TNS 2006 Out of home crisps occasions Where have the lost occasions gone? Millions of occasions Gains / Loss Net Balance Chart – Usage Migration Analysis Annual Year Nov 2004 to Year Nov 2005

21. © Worldpanel TM division of TNS 2006 Frozen Chips & Potato Products

22. © Worldpanel TM division of TNS 2006

25. Agenda Health Enjoyment Convenience Pester Power The Multi-Cultural Table The Ethical Consumer

26. © Worldpanel TM division of TNS 2006

31. Agenda Health Enjoyment Convenience Pester Power The Multi-Cultural Table The Ethical Consumer

32. © Worldpanel TM division of TNS 2006 Light meals Snacking Solus eating De-skilling Family meals Formality Preparation Components The diminishing importance of ‘serious’ food

33. © Worldpanel TM division of TNS 2006 All meals are becoming lighter Proportion of occasion defined by the consumer as a “light meal”

34. © Worldpanel TM division of TNS 2006 Convenience mega trend 1994 Eating alone 34.4% Time to prepare main meal 30 mins Snacks 16.3% Light meals 23.3% Homemade Foods 17.8% 2004 51.1% 19 mins 22.9% 36.1% 12.1%

35. © Worldpanel TM division of TNS 2006 We are changing from this……

36. © Worldpanel TM division of TNS 2006 To this……

37. © Worldpanel TM division of TNS 2006 TNS Family Food Panel 2004 Eat now (Unplanned) Eat later (Planned) Today Top-up/Impulse Shopping Focus on Practicality Pay for convenience Solutions Lunchtime fixture Handipacks/portable Shopping Missions Tomorrow Main Shop Focus on Enjoyment Value aware Home warehousing All occasions Large packs/multibuys Shopping Lists Chilled Frozen

38. © Worldpanel TM division of TNS 2006

40. Healthier Option Flora Margarine std 250g £0.63 Flora Pro-Activ low fat spread 250g £1.96 210% more Convenient Option Iceberg Lettuce £0.35 Bagged Iceberg lettuce 300g £0.99 185% more Prices taken from Tesco Price check.com 09/08/05 Price premiums for key drivers

41. © Worldpanel TM division of TNS 2006 Where are families having their Evening Meals? Returning ‘back to the table’ TNS Worldpanel Usage – 52 W/E to November 2005 HH with Kids only For one day this week, our family day, aah bisto!!

42. © Worldpanel TM division of TNS 2006 A decline of 1.1m adults y.o.y Agreeing to “I have my main meal in front of the TV”

43. © Worldpanel TM division of TNS 2006 Consumers looking for convenient foods whilst retaining control over family intake

44. © Worldpanel TM division of TNS 2006 Agenda Health Enjoyment Convenience Pester Power The Multi-Cultural Table The Ethical Consumer

45. © Worldpanel TM division of TNS 2006 Children are rapidly reducing their consumption of ‘traditional’ snacks and are moving to healthier foods that are more permissible to Mum. % change in Snacks Consumption % Growth in Foods consumed for Health reasons +5% +4%+7% % Change vs LY Based on Total Snacks consumed (Biscuits + Bagged Snacks + Confectionery + Cakes & Pastries) TNS Worldpanel Usage In Home consumption

46. © Worldpanel TM division of TNS 2006 % of Occasions consumed for Health alone Health is more important for younger children, primarily driven by parental control Total Food Total Drink TNS Worldpanel Usage Total Consumption, 52 W/E to November 2005

47. © Worldpanel TM division of TNS 2006 Parental control increasing? Parents are buying healthier foods for children and less so what children demand % in Households with children agreeing to the statement Usage Household Attitudinal data 2005 vs. 2004 / 2003

48. © Worldpanel TM division of TNS 2006 Parental impact on Kids eating habits Usage 52 w/e Nov 2005 - Based on the actual eating behaviours of children and the Influential impact of the food attitudes of their parents. Healthy kids Fruit & Vegetables Dieting / Sensible Health Parents 5-a-Day Kids Too young To worry Parents Sweet tooth and Fast food Kids Am I Bothered Fast food Kids Binger balancer Parents Fast Food Feasters Sweet tooth and snacking kids Health in Later years Parents Pester Power kids Snacking Kids Sceptic / Disinterested Parents Snacks R Us

49. © Worldpanel TM division of TNS 2006 Agenda Health Enjoyment Convenience Pester Power The Multi-Cultural Table The Ethical Consumer

50. © Worldpanel TM division of TNS 2006 The boundaries between in and out of home are blurring…

51. © Worldpanel TM division of TNS 2006 ® Consumers involvement with Poultry (and other proteins) is changing… From this…. To this….

52. © Worldpanel TM division of TNS 2006 Until the mid 90’s UK population growth was mainly due to natural increase. Between 2001 and 2004, 2/3rds of the increase in population was due to net migration 1 in 12 people in the UK are born overseas. In 2001 4.9 million (8.3% of the population) were born overseas – more than double the 2.1 million in 1951 Estimated number of people arriving to live in the UK increased to a record 582,000 in 2004 2004 also saw the highest recorded migration of British Citizens abroad to 208,000 In 2004 there were an estimated 59.8 million people living in the UK The UK is an increasingly diverse society with ever changing tastes Sources: ONS

53. © Worldpanel TM division of TNS 2006 A more multi cultural society Curry + 90% growth vs. ’95 Chilli + 20% growth vs. ’95 Rice + 25% growth vs. ’95 Chinese + 48% growth vs. ’95 Pizza + 40% growth vs. ’95 Packet Pasta + 30% growth vs. ’95 Worldpanel Usage In Home – Ann to Nov 2005

54. © Worldpanel TM division of TNS 2006 Agenda Health Enjoyment Convenience Pester Power The Multi-Cultural Table The Ethical Consumer

55. © Worldpanel TM division of TNS 2006 I want to do right by the world and feel good about it

56. © Worldpanel TM division of TNS 2006

58. Free Range

59. © Worldpanel TM division of TNS 2006

61. Lifestyle Indices – Free Range Hens Eggs Share indexed on Total Market – 52 w/e Aug 13 2006

62. © Worldpanel TM division of TNS 2006 Fairtrade

63. © Worldpanel TM division of TNS 2006

64. Lifestyle Indices – Fairtrade Coffee Share indexed on Total Market – 52 w/e Aug 13 2006

65. © Worldpanel TM division of TNS 2006

66. Lifestyle Indices – Fairtrade Bananas Share indexed on Total Market – 52 w/e Aug 13 2006

67. © Worldpanel TM division of TNS 2006 Organic

68. © Worldpanel TM division of TNS 2006 £m’s Total Organic Products Annualised Value = £990m

69. © Worldpanel TM division of TNS 2006

70. Lifestyle Indices – Total Organic Products Share indexed on All Households – 52 w/e Aug 13 2006

71. © Worldpanel TM division of TNS 2006

72. Lifestyle Indices – Green & Blacks Chocolate Share indexed on All Buyers – 52 w/e Aug 13 2006

73. © Worldpanel TM division of TNS 2006 Environmentally Friendly

74. © Worldpanel TM division of TNS 2006

75. Lifestyle Indices – Ecover Share indexed on All Buyers – 52 w/e Aug 13 2006

76. © Worldpanel TM division of TNS 2006

78. Lifestyle Indices – The Unimportance of Price Share indexed on All Buyers – 52 w/e Jul 17 2005

79. © Worldpanel TM division of TNS 2006 Reminders

80. © Worldpanel TM division of TNS 2006 Health Reminders

81. © Worldpanel TM division of TNS 2006 Enjoyment Reminders Health

82. © Worldpanel TM division of TNS 2006 Convenience Reminders Health Enjoyment

83. © Worldpanel TM division of TNS 2006 Pester Power Reminders Health Enjoyment Convenience

84. © Worldpanel TM division of TNS 2006 Reminders Multi-Cultural Table Health Enjoyment Convenience Pester Power

85. © Worldpanel TM division of TNS 2006 The Ethical Consumer Reminders Health Enjoyment Convenience Pester Power Multi-Cultural Table

86. © Worldpanel TM division of TNS 2006 Thank you ed.garner @tns-global.com