Mintel - Yellow Fats and Edible Oils - UK - September 2017

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YELLOW FATS AND EDIBLE OILS

UK, SEPTEMBER 2017

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 3

Contents
OVERVIEW............................................................................................................................................................................................ 8

What you need to know ................................................................................................................................................ 9


Products covered in this Report.................................................................................................................................... 9

EXECUTIVE SUMMARY..................................................................................................................................................................10

The market...................................................................................................................................................................11
Figure 1: Best- and worst-case forecast of UK retail value sales of yellow fats and edible oils, 2012-22........................................................ 11
Companies and brands............................................................................................................................................... 12
Figure 2: Leading brands’ shares in the UK retail yellow fats market, by value, 2016/17*............................................................................... 12
The consumer ............................................................................................................................................................ 12
Figure 3: Factors influencing choice of butter/spread for spreading, July 2017............................................................................................... 13
Figure 4: Product attributes worth paying more for, July 2017......................................................................................................................... 13
Figure 5: Correspondence analysis: perceptions of different types of edible oils, July 2017............................................................................ 14
What we think.............................................................................................................................................................. 14

ISSUES & INSIGHTS..........................................................................................................................................................................15

Range of health angles for brands to tap into in yellow fats and oils.......................................................................... 16
Scope for tackling declining usage with new promotions ........................................................................................... 17
Opportunities for adding consumer value in butter, spreads and oils.......................................................................... 17

THE MARKET......................................................................................................................................................................................19
What You Need to Know.............................................................................................................................. 20
Slowdown in downward trend in sales ....................................................................................................................... 20
2017 butter sales getting boost from higher prices .................................................................................................... 20
Sales of spreads continue to decline .......................................................................................................................... 20
Edible oils see a return to growth ............................................................................................................................... 20
Declining bread sales affecting butter and spreads ................................................................................................... 20
Rise in commodity prices for olive oil ......................................................................................................................... 20
Wholesale butter prices have also been increasing ................................................................................................... 21
Interest in cooking and baking important to market .................................................................................................... 21
Ageing population more worried about saturated fat................................................................................................... 21
Market Size and Forecast............................................................................................................................ 22
Slowdown in downward trend in sales........................................................................................................................ 22
Figure 6: UK retail value sales of yellow fats and edible oils, 2012-22*........................................................................................................... 22
Figure 7: Best- and worst-case forecast of UK retail value sales of yellow fats and edible oils, 2012-22*....................................................... 22
Butter value sales getting boost from higher prices, but volumes hit.......................................................................... 23
Figure 8: UK retail value and volume sales of butter, 2012-22 ........................................................................................................................ 23
Figure 9: Best- and worst-case forecast of UK retail value sales of butter, 2012-22........................................................................................ 23
Sales of spreads continue to decline........................................................................................................................... 24
Figure 10: UK retail value and volume sales of spreads, 2012-22................................................................................................................... 24
Figure 11: Best- and worst-case forecast of UK retail value sales of spreads, 2012-22................................................................................... 24
Edible oils see a return to growth................................................................................................................................ 25
Figure 12: UK retail value and volume sales of edible oils, 2012-22................................................................................................................ 25
Figure 13: Best- and worst-case forecast of UK retail value sales of edible oils, 2012-22............................................................................... 25
Forecast methodology................................................................................................................................................. 25
Market Segmentation................................................................................................................................... 26
Butter sales boosted in 2017 by higher prices............................................................................................................ 26
Figure 14: UK retail value and volume sales of yellow fats, by segment, 2015-17........................................................................................... 26
Speciality oils taking a larger share of sales............................................................................................................... 27
Figure 15: UK retail value and volume sales of edible oils, by type, 2015-17.................................................................................................. 27

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Market Drivers............................................................................................................................................... 28
Declining bread sales are affecting butter and spreads ............................................................................................. 28
Rise in commodity prices for olive oil.......................................................................................................................... 28
Wholesale butter prices have also been increasing.................................................................................................... 28
Interest in cooking and baking important to market..................................................................................................... 28
Ageing population more worried about saturated fat................................................................................................... 28
Figure 16: Trends in age structure of the UK population, 2012-22................................................................................................................... 29

COMPANIES AND BRANDS .........................................................................................................................................................30


What You Need to Know.............................................................................................................................. 31
Own-label makes gains in yellow fats......................................................................................................................... 31
Cooking oils dominated by own-label.......................................................................................................................... 31
Filippo Berio sees dip in olive oil sales........................................................................................................................ 31
Oils account for the majority of new launches............................................................................................................. 31
Bigger focus on natural products................................................................................................................................. 31
Spray oils tapping into health and convenience trends............................................................................................... 31
Coconut oils being joined by avocado oils.................................................................................................................. 32
Fall in 2016 advertising............................................................................................................................................... 32
Lurpak has strongest reputation for quality................................................................................................................. 32
Flora seen as most healthy brand............................................................................................................................... 32
Market Share................................................................................................................................................. 33
Own-label makes gains in yellow fats......................................................................................................................... 33
Figure 17: Leading brands’ sales and shares in the UK retail yellow fats market, by value and volume, 2015/16-2016/17............................ 33
Figure 18: Leading manufacturers’ sales and shares in the UK retail yellow fats market, by value and volume, 2015/16-2016/17................ 34
Cooking oils dominated by own-label.......................................................................................................................... 35
Figure 19: Leading brands’ sales and shares in the UK retail cooking oils market, by value and volume, 2015/16-2016/17.......................... 35
Figure 20: Leading manufacturers’ sales and shares in the UK retail cooking oil market, by value and volume, 2015/16-2016/17................ 36
Filippo Berio sees dip in olive oil sales........................................................................................................................ 37
Figure 21: Leading brands’ sales and shares in the UK retail olive oil market, by value and volume, 2015/16-2016/17................................. 37
Figure 22: Leading manufacturers’ sales and shares in the UK retail olive oil market, by value and volume, 2015/16-2016/17..................... 38
Own-label sales of speciality oils grow........................................................................................................................ 39
Figure 23: Leading brands’ sales and shares in the UK retail speciality oils market, by value and volume, 2015/16-2016/17........................ 39
Figure 24: Leading manufacturers’ sales and shares in the UK retail speciality oils market, by value and volume, 2015/16-2016/17............ 40

Launch Activity and Innovation.................................................................................................................. 41


Oils account for the majority of new launches............................................................................................................. 41
Figure 25: New product launches in the UK butter, spreads and edible oils market, 2012-17......................................................................... 41
Bigger focus on natural and environmentally-friendly products................................................................................... 41
Figure 26: New product launches in the UK butter and spreads market, by top 20 claims (sorted by 2016), 2012-17.................................... 42
Bertolli puts focus on butters for cooking.................................................................................................................... 42
Regional butters tap into interest in provenance......................................................................................................... 43
Morrison’s extends ‘For Farmers’ range into butter..................................................................................................... 43
Unilever extends Flora ProActive with Expert range with added vitamins.................................................................. 43
Choice of dairy-free spreads increases....................................................................................................................... 43
First spreadable goats butter launched ...................................................................................................................... 44
Premium and all-natural push in oils in 2017.............................................................................................................. 44
Figure 27: New product launches in the UK edible oils market, by top 20 claims (sorted by 2016), 2012-17.................................................. 44
Spray oils tapping into health and convenience trends............................................................................................... 45
Coconut oils getting more retail listings....................................................................................................................... 45
Avocado oil the latest big thing in speciality oils.......................................................................................................... 45
Focus on quality and flavour in olive oil....................................................................................................................... 45
Rapeseed oil also seeing premium launches.............................................................................................................. 45
Advertising and Marketing Activity............................................................................................................. 46
Fall in 2016 advertising spending................................................................................................................................ 46
Figure 28: Total above-the-line, online display and direct mail advertising expenditure on yellow fats and
edible oils, 2012-17........................................................................................................................................................................................... 46
Figure 29: Total above-the-line, online display and direct mail advertising expenditure on yellow fats and
edible oils, by category, 2013-17...................................................................................................................................................................... 46

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Arla and Unilever the biggest advertisers.................................................................................................................... 47


Figure 30: Total above-the-line, online display and direct mail advertising expenditure on yellow fats and
edible oils*, by advertiser, 2013-17................................................................................................................................................................... 47
Flora is the most heavily-promoted brand................................................................................................................... 47
Figure 31: Above-the-line, online display and direct mail advertising expenditure on yellow fats and oils,
by advertiser and brand, 2016.......................................................................................................................................................................... 47
Anchor’s new ‘British’ look to be supported by a £4.5 million campaign .................................................................... 47
Lurpak advocates ‘naturalness’ .................................................................................................................................. 47
Lurpak continues to challenge new consumers with ‘Game On, Cooks’ campaign ................................................... 47
Flora focuses on ‘Powered by Plants’ message.......................................................................................................... 48
Flora ProActiv unveils Expert Range .......................................................................................................................... 48
Bertolli recipe videos promote authentic Italian cooking............................................................................................. 48
Stork announces charity tie up.................................................................................................................................... 48
Frylight announces launch of £5 million multi-channel campaign............................................................................... 48
Nielsen Ad Intel coverage............................................................................................................................................ 48
Brand Research............................................................................................................................................ 49
Brand map................................................................................................................................................................... 49
Figure 32: Attitudes towards and usage of selected brands, July 2017............................................................................................................ 49
Key brand metrics....................................................................................................................................................... 49
Figure 33: Key metrics for selected brands, July 2017..................................................................................................................................... 49
Figure 34: Attitudes, by brand, July 2017......................................................................................................................................................... 50
Figure 35: Brand personality – Macro image, July 2017.................................................................................................................................. 50
Figure 36: Brand personality – Micro image, July 2017.................................................................................................................................... 51
Brand analysis............................................................................................................................................................. 51
Figure 37: User profile of Lurpak, July 2017..................................................................................................................................................... 51
Figure 38: User profile of Anchor, July 2017..................................................................................................................................................... 52
Figure 39: User profile of Flora, July 2017........................................................................................................................................................ 52
Figure 40: User profile of Bertolli, July 2017..................................................................................................................................................... 53
Figure 41: User profile of Clover, July 2017...................................................................................................................................................... 54

THE CONSUMER...............................................................................................................................................................................55
What You Need to Know.............................................................................................................................. 56
More than nine in 10 buy butter and spreads.............................................................................................................. 56
Nearly eight in 10 buy edible oils................................................................................................................................. 56
Being spreadable and favourite taste most important................................................................................................. 56
Less frying and buying of bread hitting sales.............................................................................................................. 56
Meeting demand for versatility in edible oils................................................................................................................ 56
Three in 10 would pay more to support British farmers............................................................................................... 56
Details of regional origin can increase appeal............................................................................................................. 56
Being seen as healthy and pure the key strengths for olive oil................................................................................... 57
Lack of awareness of attributes of rapeseed and avocado oils................................................................................... 57
Buying of Yellow Fats................................................................................................................................... 58
More than nine in 10 buy butter or spreads................................................................................................................. 58
Figure 42: Types of butter and spreads bought in the last 3 months, July 2017............................................................................................... 58
A quarter have bought at least three types of spreads in the last three months......................................................... 58
Figure 43: Number of different types of butter and spreads bought in last 3 months, July 2017...................................................................... 59
Younger appeal of spreadable butter ......................................................................................................................... 59
“Buttery taste” an important purchase driver .............................................................................................................. 59
Buying of Edible Oils................................................................................................................................... 60
Nearly eight in 10 buy edible oils................................................................................................................................. 60
Figure 44: Types of edible liquid oils and solid oils/fats bought in the last 3 months, July 2017....................................................................... 60
Nearly half of people buy more than one type............................................................................................................. 60
Figure 45: Number of different types of edible oils bought in last 3 months, July 2017.................................................................................... 60
Vegetable, olive and sunflower oils dominate............................................................................................................. 61

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 6

Factors Influencing Choice of Butter/Spread............................................................................................ 62


Being spreadable from fridge and favourite taste most important............................................................................... 62
Figure 46: Factors influencing choice of butter/spread for spreading, July 2017............................................................................................. 62
Being lower in fat also an important consideration...................................................................................................... 62
No artificial ingredients another selling point............................................................................................................... 62
Usage and Buying Behaviour...................................................................................................................... 63
Less frying and buying of bread bad for market.......................................................................................................... 63
Figure 47: Usage and buying behaviour in relation to yellow fats and edible oils, July 2017........................................................................... 63
Has the home baking bubble burst?............................................................................................................................ 64
Meeting demand for versatility and quality in edible oils............................................................................................. 64
Product Attributes Most Likely to Add Value............................................................................................. 65
Three in 10 would pay more to support British farmers............................................................................................... 65
Figure 48: Product attributes worth paying more for, July 2017....................................................................................................................... 65
Higher animal welfare standards can also add value.................................................................................................. 65
Health benefits justify a price premium for a fifth of buyers......................................................................................... 66
Attitudes towards Butter, Spreads and Edible Oils................................................................................... 67
Details of regional origin can increase appeal............................................................................................................. 67
Figure 49: Attitudes towards butter/spreads and edible oils, July 2017............................................................................................................ 67
Small bottles or packs can encourage experimentation.............................................................................................. 67
Perceptions of Different Types of Edible Oils............................................................................................ 68
Olive oil seen as the most healthy edible oil............................................................................................................... 68
Figure 50: Correspondence analysis: perceptions of different types of edible oils, July 2017.......................................................................... 68
Figure 51: Perceptions of different edible oils, July 2017................................................................................................................................. 68
Being seen as healthy and pure the key strengths of olive oil.................................................................................... 69
Versatility biggest strength for sunflower oil................................................................................................................ 69
Lack of awareness of attributes of rapeseed and avocado oils................................................................................... 69
Coconut oil seen as a ‘trendy’ choice.......................................................................................................................... 69
Methodology................................................................................................................................................................ 69

APPENDIX...........................................................................................................................................................................................70
Data Sources, Abbreviations and Supporting Information...................................................................... 71
Abbreviations............................................................................................................................................................... 71
Consumer research methodology............................................................................................................................... 71
Market Size and Forecast............................................................................................................................ 72
Forecast methodology................................................................................................................................................. 72
Figure 52: Best- and worst-case forecast of total UK retail value sales of yellow fats and edible oils, 2012-22.............................................. 72
Figure 53: Best- and worst-case forecast of UK retail volume sales of butter, 2012-22................................................................................... 73
Figure 54: Best- and worst-case forecast of total UK retail value sales of butter, 2012-22.............................................................................. 73
Figure 55: Best- and worst-case forecast of total UK retail volume sales of butter, 2012-22........................................................................... 73
Figure 56: Best- and worst-case forecast of UK retail volume sales of spreads, 2012-22............................................................................... 74
Figure 57: Best- and worst-case forecast of total UK retail value sales of spreads, 2012-22.......................................................................... 74
Figure 58: Best- and worst-case forecast of total UK retail volume sales of spreads, 2012-22....................................................................... 74
Figure 59: Best- and worst-case forecast of UK retail volume sales of edible oils, 2012-22............................................................................ 75
Figure 60: Best- and worst-case forecast of total UK retail value sales of edible oils, 2012-22....................................................................... 75
Figure 61: Best- and worst-case forecast of total UK retail volume sales of edible oils, 2012-22.................................................................... 75

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 7

Market Share................................................................................................................................................. 76
Figure 62: Leading brands’ sales and shares in the UK retail butter market, by value and volume, 2015/16-2016/17.................................... 76
Figure 63: Leading manufacturers’ sales and shares in the UK retail butter market, by value and volume, 2015/16-2016/17........................ 77
Figure 64: Leading brands’ sales and shares in the UK retail margarine and spreads market, by value and
volume, 2015/16-2016/17................................................................................................................................................................................. 78
Figure 65: Leading manufacturers’ sales and shares in the UK retail margarine and spreads market, by value and
volume, 2015/16-2016/17................................................................................................................................................................................. 79
Figure 66: Leading brands’ sales and shares in the UK retail cooking fats market, by value and volume, 2015/16-2016/17.......................... 80
Figure 67: Leading manufacturers’ sales and shares in the UK retail cooking fats market, by value and volume, 2015/16-2016/17.............. 80

RESEARCH METHODOLOGY.......................................................................................................................................................81
UK Research Methodology.......................................................................................................................... 82
Sampling and weighting.............................................................................................................................................. 82
Face to Face Surveys ................................................................................................................................................ 82
Brand & Social Media Research................................................................................................................................. 84
Trade research............................................................................................................................................................ 84
Desk research............................................................................................................................................................. 84
Statistical Forecasting................................................................................................................................................. 84
The Mintel fan chart..................................................................................................................................................... 85

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OVERVIEW

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 9

What you need to know Products covered in this Report

The market for yellow fats and edible oils is estimated to be worth This Report covers the UK retail market for yellow fats and edible
just over £1.53 billion in 2017, down 10% on its value back in oils.
2012. Falling sales of spreads is the main reason for the decline
in total sales. While increases in the price of butter and olive oil Yellow fats include butter, margarine and spreads, including
have provided a recent boost to the market value, driving new cooking fats intended for cooking or baking.
uses for products will be important for future growth.
For the purposes of this Report, spreadable butter (including
Sales of butter and spreads have suffered from a decline in the variants with vegetable oil) and ‘light’ butter are included as butter
eating of host foods, particularly bread that is being eaten on in the market segmentation.
fewer occasions. Butter though has benefitted from a desire for
more natural and less processed products. This has led brands in Edible oils include vegetable oil (which is usually rapeseed)
spreads to promote benefits such as being dairy-free, free from and single-seed oils such as sunflower and corn, plus olive
artificial ingredients and having added vitamins in order to try and oil (including extra virgin), along with cold-pressed rapeseed,
fight back. coconut, groundnut, walnut, sesame and other varieties of
speciality oil, for use in domestic food preparation. Spray oils are
In edible oils, speciality oils have been seeing an increase in also included.
sales, including coconut and cold-pressed rapeseed oils, while
avocado oil is also being seen in more oils and spreads. Cooking
oil sprays are tapping into health and convenience trends, but can
also be more cost effective in cooking. Such formats, as well as
more premium and infused oils, offer scope for increasing sales.

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EXECUTIVE
SUMMARY

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 11

CHANGING EATING HABITS, PARTICULARLY BREAD BEING EATEN ON FEWER OCCASIONS, HAS HAD AN IMPACT ON
SALES OF BUTTER AND SPREADS. BUTTER HAS BENEFITTED FROM INTEREST IN NATURAL AND LESS PROCESSED
PRODUCTS AND RECEIVED A RECENT BOOST FROM HIGHER RETAIL PRICES, BUT ENCOURAGING NEW USES WILL
BE IMPORTANT IN DRIVING FUTURE GROWTH.

Richard Caines, Senior Food & Drink Analyst

The market FIGURE 1: BEST- AND WORST-CASE FORECAST OF UK RETAIL VALUE SALES
OF YELLOW FATS AND EDIBLE OILS, 2012-22
Return to value sales growth in
2017

A steep decline in sales of spreads was


the main reason for the decline seen in the
total retail value sales of yellow fats and
edible oils in 2016. Stronger performances
from butter and edible oils were not
enough to make up for a 10% decline in
spread sales.

In 2017, value sales are expected to see


a return to growth due to increases in the
retail price of butter and olive oil. Overall
though, sales at £1.53 billion are still
estimated to be down 10% compared with
2012. Over the next five years sales are
forecast to grow by 9% to £1.67 billion,
boosted by growing sales of butter and * yellow fats segment includes only butter and margarine/spreads, and does not include cooking fats
edible oils and driven mainly by price rises. Source: based on IRI/Mintel

Declining bread sales affecting


butter and spreads olive harvests in Italy, Greece and Spain. Ageing population more worried
The depreciation of the Pound against the about saturated fat
Sales of bread have been declining. euro, particularly following the Brexit vote,
2016 was the third consecutive year of has driven up the cost of imports. Olive The UK population is ageing, with the
sales losses, and the rate of decline had oil, various nut oils, coconut oil and butter number of over-55s projected to increase
increased sharply. People cutting back on are among categories directly affected. by 2 million (10%) between 2017 and
bread means they are not using butter or Meanwhile, the influence of this on the 2022. Older people are more likely to
spreads for spreading as much as they price of farm inputs and product costs be concerned about saturated fat in
used to, negatively impacting on sales. would be feeding through to retail prices food and drink than younger people.
Should the squeeze on incomes prompt of UK-produced yellow fats and oils more However, when buying butter and spreads
any increase in uptake of bread, this gradually. for spreading they attach the most
should benefit also yellow fats. importance to being spreadable and taste.
Following deflation in the butter market They are less likely to buy spreadable
Prices of olive oil and butter rise throughout 2015 and early 2016, butter than younger age groups, but
wholesale butter prices have been overall though are only slightly below
Olive oil prices have increased sharply increasing. This has now fed through to average purchasers of butter.
over the last few years as a result of poor higher retail butter prices.

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 12

Companies and brands FIGURE 2: LEADING BRANDS’ SHARES IN THE UK RETAIL YELLOW FATS
MARKET, BY VALUE, 2016/17*
Own-label makes gains in yellow
fats

The biggest growth in the declining yellow


fats market between 2015/16 and 2016/17
came from own-label. The rising price of
butter appears to have supported demand
for own-label as the more affordable
option, to see it gain share of value and
volume sales.

Among brands, Lurpak performed strongly


and maintains a big lead in the yellow
fats market, while Kerrygold was another
strong performer. The majority of spreads
brands saw sales fall.

Filippo Berio sees dip in olive oil


sales

Market leader Filippo Berio saw its olive oil


sales fall in 2016/17, reducing its lead over
second-placed Napolina. Filippo Berio’s
sales were affected by the brand losing * 52 weeks ending 22 April 2017
listings for its 250ml product at Tesco and Source: based on IRI/Mintel
Sainsbury’s. Own-label grew its share of
the olive oil market.
Spray oil launches tap into health A more recent trend in speciality oils
Own-label accounts for the lion’s share and convenience trends though is avocado oil, which has
of sales of cooking oils (57% by value), significant scope to appeal as a healthier
reflecting the difficulty brands face in The choice of oil sprays available has option as awareness increases. Fresh
tangibly differentiating their products in this been expanding both from brands and avocado sales have seen massive growth
market. However, it saw a dip in sales and own-label. In June 2017, Princes launched in recent years and brands and retailers
market share in 2016/17, as did top two three olive oil sprays under its Napolina are now launching avocado oil products.
brands – Crisp ‘n’ Dry and Flora. brand. Some of this launch activity is
looking to tap into the trend towards sprays The consumer
Focus on natural and dairy-free that give consumers more control over the
products in yellow fats NPD amount of oil they use. More than nine in 10 buy butter
and spreads
No additive/preservative claims have There was a significant increase in the
become particularly prevalent in margarine proportion of new product launches in More than nine in 10 people buy butter
and spreads. Launches of vegan spreads edible oils making premium claims in the or spreads, making these products staple
and those that claim to contain no animal first half of 2017. items in the vast majority of households.
ingredients have also increased as a share A large proportion of people are buying
of total launch activity. Flora’s ‘Powered Coconut oils being joined by both types of product and there is also
by Plants’ campaign is one of the higher- avocado oils considerable overlap in the buying of
profile examples of this trend. different types of products within the two
Supermarket sales of coconut oil have categories.
Accordingly, there has been an increase surged, though this comes from a decidedly
in the proportion of products making dairy- low base. Continuing launch activity in High purchasing (78% buying) of oils
free claims, with Flora and Vitalite among this area is taking coconut oils into the reflects the wide range of different uses for
brands in spreads making this a focus for mainstream. 2016 saw a significant increase edible oils and fats. Vegetable/rapeseed
their products. in own-label activity in the category. oils and olive oils are each bought by

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 13

around four in 10 people, while a third of FIGURE 3: FACTORS INFLUENCING CHOICE OF BUTTER/SPREAD FOR
people buy sunflower oil. These products SPREADING, JULY 2017
clearly dominate the edible oils market.
“Which factors are most important in influencing what butter/spread you buy for
Being spreadable and favourite spreading on toast, sandwiches etc? Please select up to 5.”
taste most important factors

The convenience of being able to spread


straight after you have taken it out of the
fridge is the joint most important factor,
influencing 45% of purchasers choosing
butter or spread for spreading on toast,
sandwiches, etc. Being a favourite taste
is similarly important, while price stands
close behind in swaying choice in this
fragmented market.

Overall, either being low fat or low in


saturated fat is an important consideration
for 38% of buyers of butter or spreads.
Lower fat content is clearly, therefore, a
major selling point over butter for various
spreads on the market. Base: 1,842 internet users aged 16+ who have bought butter/spread in the last 3 months
Source: Lightspeed/Mintel
Strong demand for versatility in
edible oils
FIGURE 4: PRODUCT ATTRIBUTES WORTH PAYING MORE FOR, JULY 2017
When it comes to edible oils, nearly half
of buyers of butter, spreads and oils “Which would you pay more for when buying butter/spread/oils/fats? Please
(46%) are looking for versatility from a select all that apply.”
product. Edible oils should therefore make
information about what each variant can
be used for prominent on packaging to
maximise their appeal.

Nutritional information and the list of


ingredients are each checked by nearly
half of buyers of spreads (47%). This
suggests a large proportion of consumers
are concerned about ingredients and are
seeking reassurance from brands about
what goes into products.

Three in 10 would pay more to


support British farmers

Nearly three in 10 buyers of butter, spreads


and oils would pay more for products
supporting British farmers, exemplifying the Base: 1,890 internet users aged 16+ who have bought butter, spread, oil or fat in the last 3 months
Mintel Trend, Moral Brands, of consumers Source: Lightspeed/Mintel
looking to manufacturers to do green and
ethical work for them. One brand recently
taking this approach is Morrisons, but for products making health claims. Such they offer further scope for encouraging
others could also benefit from working on claims include products promoting the those most interested in health and
this angle. lowering of cholesterol in diets and the wellbeing to pay a bit more for products.
inclusion of particular vitamins or omega
Just over a fifth of buyers of butter, oils to benefit health. While such claims
spreads, oils and fats would pay more are already established in the market,

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 14

Details of regional origin can FIGURE 5: CORRESPONDENCE ANALYSIS: PERCEPTIONS OF DIFFERENT


increase appeal TYPES OF EDIBLE OILS, JULY 2017

Provenance in terms of coming from a “Which of the following do you associate with each type of oil?”
particular region increases a product’s
appeal for 44% of people and offers
scope for adding a point of differentiation
that goes beyond just promoting butter
as British that is more common. As with
British ingredients and support for British
farmers, this has the most appeal to over-
65s who are increasing in numbers.

Oils with flavour infusions in small bottles


and smaller packs of butter/spreads with
added flavours appeal to 41% and 36%
of people respectively. Such products are
a good way of encouraging trial, but also
can look to add more variety to meals and
snacks.

‘Healthy’ and ‘pure’ key strengths


for olive oil

The qualities most closely associated with


olive oil are “healthy” and “pure”, and it is
also seen as more flavoursome and worth
paying more for than other oils. These
positive consumer perceptions of olive Base: 2,000 internet users aged 16+
oil are important in driving sales given Source: Lightspeed/Mintel
consumer interest in eating healthily.

Being light, imparting no flavour and ongoing need to build links with usage promoting product benefits that most add
having a high smoke point are key occasions not reliant on this carrier. value for consumers is important. Butter
strengths of sunflower oil and this helps Looking to a wider range of uses will also is currently benefitting from interest in
to drive consumer perceptions that it is a be important in edible oils in response to natural and less processed products,
versatile oil for cooking. the long-term trend away from frying food. but the big increase in butter prices in
2017 could signal an opportunity for
What stands out about rapeseed oil New product development in yellow fats spreads to fight back given the squeeze
and avocado oil is a lack of awareness. and oils will be important in encouraging a on incomes.
Recently more cold-pressed rapeseed oils wider range of uses, such as offering more
have become available that should help specialist butter or oils. Smaller packs or In edible oils, the increase in the retail
build awareness, but there is clearly scope bottles can help reduce the barrier to trial price of olive oil driven by supply
for retailers to shout about the credentials here. For the core products, marketing shortages could potentially encourage
of rapeseed oil more strongly to support should look to emphasise versatility. In some switching to other oils, although
this increased presence. both cases, featuring recipe or meal ideas extra virgin olive oil’s flavour profile
looks to be needed to continue building a makes it not easy to substitute for salad
What we think wider range of associations. dressings. More information about the
benefits of less long-established oils
Given the decline in the eating of bread Within both butter and spreads and could help to increase their uptake, while
over the last three years, brands and edible oils a number of different products sprays could benefit from a focus on cost
retailers in butter and spreads face an are competing against one another, so effectiveness.

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ISSUES &
INSIGHTS

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 16

Range of health angles for brands The facts


to tap into in yellow fats and oils
• Being low in fat or low in saturated fat each influences the choice of butter or spreads
for spreading for a quarter of shoppers. Overall, either being low fat or low in saturated
fat is an important consideration for 38% of buyers, making it nearly as important as
low price.

• More than a fifth of buyers (22%) attach a high importance to butter or spreads
not containing artificial ingredients, while the same proportion would pay more for
products making health claims.

• 47% of buyers of spreads check nutritional information on packaging when buying


spreads and the same proportion check ingredients on packaging.

• Olive oil is perceived as the most ‘healthy’ and ‘pure’ oil, but only 19% of people
currently associate it with being low in saturated fat. Rapeseed oil and avocado oil
are both suffering from a lack of awareness in terms of people associating them with
particular attributes.

The implications

Lower fat content is clearly a major selling point over butter for various spreads on the
market and has been for a long time, but has not been enough for spreads to halt a long-
term decline in sales and a shift towards butter. This is clearly because other factors such
as taste and perceived naturalness are important in influencing choice and because in
butter more ‘lighter’ and spreadable products are now available with reduced fat blends.

The importance attached to products not containing artificial ingredients also shows how
promoting this attribute on packaging and in marketing can appeal to those looking for
more natural and less processed products. Apart from its buttery taste, part of the appeal
of butter is that it is a natural product with very few ingredients. Brands in spreads such
as Flora and Clover are now putting a bigger emphasise on naturalness and this will be
an important element in reviving sales of spreads.

A large proportion of consumers are clearly concerned about what ingredients are
contained in spreads and whether they are healthy. Emphasising products having no
artificial ingredients links to the Mintel Trend, Bannedwagon, that discusses how people
are focusing on labels, ingredients and production methods. Interest in natural and less
processed foods has benefitted sales of butter, so brands in spreads need to strongly
communicate ‘naturalness’ to entice consumers away from butter.

Health claims include products promoting the lowering of cholesterol in diets and the
inclusion of particular vitamins or omega oils to benefit health. This links to Mintel Trend,
Help Me Help Myself, which talks about how consumers are learning new ways to nudge
themselves towards better habits. Specific health claims in spreads are being seen with
Flora ProActiv Expert (eg vitamin B1 to help heart functions), which gives the brand
another angle for reversing declining sales.

Further scope exists for promoting the benefits of olive oil and olive spreads to diet,
especially given that only a fifth of people currently associate it with being low in
saturated fat. There is clearly scope for retailers to shout about the health credentials
of cold-pressed rapeseed oil and avocado oil more strongly to support their increased
presence on supermarket shelves, and their inclusion in spreads.

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 17

Scope for tackling declining usage The facts


with new promotions
• 62% of buyers of butter, spreads and oils are frying less food at home now compared
with a few years ago and 43% are buying less bread products compared to a few
years ago. The latter reflects changing breakfast and lunch habits.

• Compared to a few years ago, 42% of buyers are baking less at home, which is
also reflected in declining sales of baking ingredients such as cake coverings and
decorating products, dried fruits, sugar and flour.

• 46% of buyers of edible oils look for versatility when buying these products. Sunflower
and olive oil are currently seen as the most versatile oils.

The implications

Most buyers frying less food than a few years ago is a continuation of a long-term trend,
including having fewer fried breakfasts. It means brands and retailers need to promote
other uses for edible oils away from frying. Driving awareness of oils with health benefits
such as those with omega oils or essential vitamins (eg vitamin E in avocado oil) will
be important. This includes more appealing infused healthy oils to encourage usage
for drizzling on meat, fish, vegetables, pizzas and pasta, or as an ingredient for salad
dressings.

Butter and spreads are mainly used on bread products, so declining bread sales have
a big impact on their sales. Brands in spreads have scope to encourage interest in
sandwiches through promoting more exciting fillings that appeal to those looking for more
or new ideas for what to put in their packed lunch. The income squeeze in 2017 could
also help encourage a return to people making up packed lunches to take to work in
order to save money.

The income squeeze could also potentially provide a boost to home baking, not because
home baking actually saves a lot of money, but more because it provides a cheap form
of entertainment when people are cutting back on going out. Featuring home baking as
a fun and cheap activity therefore provides brands in yellow fats with another angle for
promoting product usage.

Edible oils already have information about what different types can be used for on
packaging, but the attractiveness of particular oils in terms of versatility could be
increased though the use of in-store promotional materials to cater for this demand.
Marketing could put a bigger focus on demonstrating different uses for oils, tapping into
the Mintel Trend, Prove It, that discusses how consumers are looking for proof before
purchase.

Opportunities for adding The facts


consumer value in butter, spreads
and oils • 28% of buyers of butter, spreads and oils would pay more for products supporting
British farmers, with willingness to pay more for such products most likely among
over-55s who are growing in numbers.

• 15% of buyers put being made from British ingredients among the most important
factors influencing their choice of butter or spread for spreading. The regional origin of
a product though appeals more widely, cited by 44% of people.

• Just under a fifth of buyers of butter, spreads, oil or fat (19%) would pay more for an
organic product and the same proportion more for a product that guaranteed higher
animal welfare. There is only a little overlap between those willing to pay more for
each of these though.

• Smaller bottles of oils with flavour infusions and smaller packs of butter/spreads with
added flavours appeal to 41% and 36% of people respectively. But only 13% of buyers
would pay more for oils with flavour infusions.

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 18

The implications

Supporting British farmers is clearly more emotive than just British provenance and
telling a story of farmers in particular regions and spelling out the brand or retailer’s
support for them, as done recently by Morrison’s scope to increase product appeal.
Provenance in terms of coming from a particular region also offers more scope for
adding differentiation than just promoting British butter, and is done widely by brands and
retailers in butter.

In olive oils, regional origin could also be promoted more. Many oils just say they use
olives of EU (European Union) origin or list a number of countries where the olive oil
is sourced. There is also scope to adopt this approach outside olive oils. Stressing
regionality is one way to lift these oils out of the commodity category, and to support
premium pricing, though this would put additional demands on tracking batches of
ingredients during processing. Cold-pressed rapeseed oils have seen growing sales and
promoting their region of origin or specific farms helps justify their premium positioning.

Organic products, which still account for a relatively small share of sales in butter but are
growing, could benefit from talking about animal welfare specifics such as free-range
cows. For oils, referencing rapeseed crops or olives grown without pesticides to promote
wildlife would tap into the same.

Smaller packs of butter/spreads with added flavours or smaller bottles of oils with flavour
infusions are a good way of encouraging experimentation as they reduce the risk for
people of committing to a product they might find they do not like. They can also look to
add more variety to meals and snacks eaten at home. They also have the potential to
command a price premium for some people.

Ideas for using oils with different flavour infusions would help to encourage sales.
Flavoured butters or spreads in small packs that go beyond garlic butter also offer scope
for increasing usage both on breads to heat in the oven or on toast, as well as to add
flavour to main meals, including on meat, fish and vegetable dishes.

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THE MARKET

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 20

What You Need to Know


Slowdown in downward trend in sales Edible oils see a return to growth

A steep decline in sales of spreads was the main reason for the Total sales of edible oils were up by 2.2% in 2016. A decline in
decline seen in total retail value sales of yellow fats and edible value sales of cooking oils was more than made up for by an
oils in 2016. Stronger performances for butter and edible oils were increase in sales of olive oils and speciality oils. Value growth
not enough to make up for a 10% decline in spread sales. in olive oil was driven by higher retail prices due to dwindling
production in Europe and soaring global demand. The weakening
In 2017, value sales are expected to see a return to growth due of the Pound since the Brexit vote has also put upward pressure
to increases in the retail price of butter and olive oil. Overall on retail prices.
though, sales at £1.53 billion are still estimated to be down 10%
compared with 2012 (see Market Size and Forecast). In 2017, value sales are estimated to grow by around 2% to
£383 million but volumes decline, due to rising prices in all
2017 butter sales getting boost from higher prices three segments but particularly in olive oil (see Market Size and
Forecast).
Value sales of butter increased by 0.8% in 2016, marking a
significant turnaround for the segment compared with 2015. While Declining bread sales affecting butter and spreads
falling prices helped volume sales in 2015 and early 2016, the
category also benefitted from the desire for more natural and less Sales of bread have been declining. 2016 was the third
processed products. consecutive year of sales losses, and the rate of decline had
increased sharply. People cutting back on bread means they are
In 2017, a reversal in value and volume performance is expected not using butter or spreads for spreading as much as they used
due to a decline in promotions as a sharp rise in the wholesale to.
cost of butter is feeding through to retail prices. This is expected
to take the value of the butter market to £789 million (see Market Spreading on toast or on bread to make a sandwich are by far
Size and Forecast). the biggest two uses for block butter and spreads. As such, fewer
meal or snack occasions, including sandwiches or toast, has by
Sales of spreads continue to decline far the biggest impact on sales of yellow fats. Falling real wages,
however, could rekindle interest in packed lunches, which should
By contrast to growth in butter sales, sales of margarine and boost sales of bread (see Market Drivers).
spreads declined by 10% by value and 7.5% by volume in 2016.
Spreads are continuing to struggle in the face of trends towards Rise in commodity prices for olive oil
more natural and less processed products, where butter enjoys a
stronger image. Raw material prices for olive oil increased sharply over the last
few years as a result of poor harvests in Italy, Greece and Spain.
The struggles of carrier products like bread are adding to the The depreciation of the Pound against the euro, particularly
spread segment’s woes and sales are expected to decline further following the Brexit vote, has also driven up the cost of olive oil
in 2017 to £362 million (see Market Size and Forecast). imports.

The combined effect of raw material inflation and the weakening


in the value of Sterling, particularly given that all olive oil in the UK
is imported, has been that retailers have had to increase prices
(see Market Drivers).

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 21

Wholesale butter prices have also been increasing Ageing population more worried about saturated fat

Following deflation in the butter market throughout 2015 and early The UK population is ageing, with the number of over-55s
2016, wholesale butter prices have been increasing. Prices got projected to increase by 2 million (10%) between 2017 and 2022.
so low in 2016 due to oversupply in the milk market that many Older people are more likely to be concerned about saturated fat
farmers decided to cut back on their dairy cow numbers. in food and drink than younger people.

Rising wholesale costs have now fed through to higher retail However, when buying butter and spreads for spreading they
butter prices, with the price of butter across major retailers attach the most importance to being spreadable and taste. They
increasing significantly in 2016/17 (see Market Drivers). are less likely to buy spreadable butter than younger age groups,
but overall though are only slightly below average purchasers of
Interest in cooking and baking important to market butter (see Market Drivers).

Despite the popularity of TV’s The Great British Bake Off, sales
of many home baking ingredients declined in 2016/17. Cake
coverings and decorating products, dried fruits, sugar and flour
are among the baking items seeing a decline in sales.

Yellow fats and oils are other important baking ingredients, so a


waning in interest in home baking will also be affecting sales of
these products. The income squeeze, though, could provide a
boost to home baking (see Market Drivers).

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 22

Market Size and Forecast


Slowdown in downward trend in FIGURE 6: UK RETAIL VALUE SALES OF YELLOW FATS AND EDIBLE OILS,
sales 2012-22*

A steep decline in sales of spreads was


the main reason for the decline seen in Total Index % £m at Index %
total retail value sales of yellow fats and £m annual change 2017 prices annual change
edible oils in 2016. Stronger performances
for butter and edible oils were not enough 2012 1,695 110 na 1,736 113 na
to make up for a 10% decline in spread 2013 1,665 109 -1.8 1,651 108 -4.9
sales. 2014 1,614 105 -3.1 1,543 101 -6.5
2015 1,530 100 -5.2 1,462 95 -5.2
Overall, butter and spreads have been hit
2016 1,501 98 -1.9 1,468 96 +0.4
by consumers not eating bread as much
2017 (est) 1,534 100 +2.2 1,534 100 +4.5
as they used to, so not spreading butter
2018 (fore) 1,526 100 -0.5 1,491 97 -2.8
and spreads as much. Bakery products
2019 (fore) 1,559 102 +2.2 1,489 97 -0.1
are being consumed on fewer occasions,
2020 (fore) 1,597 104 +2.4 1,427 93 -4.2
while sales of baking ingredients have also
started to fall, signalling a waning of the 2021 (fore) 1,644 107 +3.0 1,508 98 +5.7
home baking trend, further impacting on 2022 (fore) 1,673 109 +1.8 1,508 98 -
sales of related yellow fats and oils. * yellow fats segment includes only butter and margarine/spreads, and does not include cooking fats
Source: based on IRI/Mintel
An increase in sales of olive oil and
speciality oils provided a boost to the
market in 2016. Dwindling production of FIGURE 7: BEST- AND WORST-CASE FORECAST OF UK RETAIL VALUE SALES
olive oil in Europe and the weakening of OF YELLOW FATS AND EDIBLE OILS, 2012-22*
the Pound against the euro led to a sharp
increase in olive oil prices. Speciality oils
benefitted from the popularity of cold-
pressed rapeseed oil and coconut oil.

In 2017, value sales are expected to see


a return to growth due to increases in the
retail price of butter and olive oil. Overall
though, sales are still estimated to be
down 10% compared with 2012. Over the
next five years sales are forecast to grow
by 9% to £1.67 billion, boosted by growing
sales of butter and edible oils and driven
mainly by price rises.

* yellow fats segment includes only butter and margarine/spreads, and does not include cooking fats
Source: based on IRI/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 23

FIGURE 8: UK RETAIL VALUE AND VOLUME SALES OF BUTTER, 2012-22

Total Index % £m at Index % Total Index %


£m annual change 2017 prices annual change m kg annual change

2012 707 90 na 724 92 na 139 90 na


2013 730 93 +3.3 724 92 - 142 92 +2.2
2014 747 95 +2.3 714 91 -1.3 143 93 +0.7
2015 731 93 -2.1 699 89 -2.2 150 97 +4.9
2016 737 93 +0.8 721 91 +3.2 157 102 +4.7
2017 (est) 789 100 +7.1 789 100 +9.4 154 100 -1.9
2018 (fore) 805 102 +2.0 786 100 -0.4 158 102 +2.3
2019 (fore) 845 107 +5.0 807 102 +2.7 159 103 +0.9
2020 (fore) 877 111 +3.8 784 99 -2.9 161 104 +1.0
2021 (fore) 908 115 +3.5 829 105 +5.7 162 105 +0.9
2022 (fore) 928 118 +2.2 829 105 - 164 106 +1.2
Source: based on IRI/Mintel

Butter value sales getting boost FIGURE 9: BEST- AND WORST-CASE FORECAST OF UK RETAIL VALUE SALES
from higher prices, but volumes hit OF BUTTER, 2012-22

Value sales of butter increased by 0.8% in


2016, marking a significant turnaround for
the segment compared with 2015. While
falling prices helped volume sales of block
butter and spreadable butter in 2015 and
2016, the category also benefitted from the
desire for more natural and less processed
products.

In 2017, a reversal in value and volume


performance is expected due to a decline
in promotions as a sharp rise in the
wholesale cost of butter is feeding through
to retail prices. The increase in wholesale
prices was due to strong demand and
tightened supplies across Europe.

The main contributor to growth in the Source: based on IRI/intel


butter market in 2016/17 was own-label,
which added the most value, increasing
volume sales despite price rises. The role
of butter as an ingredient for cooking and
baking rather than as a spread has helped
to insulate the segment partly from the
struggles of carrier products like bread.

Over the next five years to 2022, value


sales of butter are forecast to increase by
18% to £928 million, driven mainly by price
increases but also a continuation of the
trend towards butter from spreads.

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 24

FIGURE 10: UK RETAIL VALUE AND VOLUME SALES OF SPREADS, 2012-22

Total Index % £m at Index % Total Index %


£m annual change 2017 prices annual change m kg annual change

2012 585 162 na 599 165 na 190 137 na


2013 526 145 -10.1 522 144 -12.9 175 126 -7.9
2014 485 134 -7.8 464 128 -11.1 175 126 -
2015 431 119 -11.1 412 114 -11.2 160 115 -8.6
2016 388 107 -10.0 380 105 -7.9 148 106 -7.5
2017 (est) 362 100 -6.7 362 100 -4.6 139 100 -6.1
2018 (fore) 333 92 -8.1 325 90 -10.3 132 95 -5.3
2019 (fore) 322 89 -3.3 307 85 -5.5 124 89 -5.9
2020 (fore) 328 91 +2.1 293 81 -4.5 122 88 -1.1
2021 (fore) 335 93 +2.0 312 86 +6.4 122 87 -0.7
2022 (fore) 343 95 +2.4 320 88 +2.5 121 87 -0.8
Source: based on IRI/Mintel

Sales of spreads continue to FIGURE 11: BEST- AND WORST-CASE FORECAST OF UK RETAIL VALUE SALES
decline OF SPREADS, 2012-22

By contrast to growth in butter sales, sales


of margarine and spreads declined 10%
by value and 7.5% by volume in 2016.
Spreads are continuing to struggle in the
face of trends towards more natural and
less processed products, where butter
enjoys a stronger image. Both brands and
own-label saw a decline in sales despite
efforts by leading brand Flora in 2016 to
reposition itself centred on a “plant-based”
proposition. As noted above, the struggles
of carrier products like bread are adding to
the spread segment’s woes.

Increasing wholesale butter prices


provides hope for spreads though,
especially as Brexit threatens to keep
commodity prices high. If butter remains Source: based on IRI/Mintel
expensive, this could offer an opportunity
for spreads that contain less or no butter
to increase sales. Sales for spreads so far
in 2017 though suggest sales will decline
further by both value and volume, although
the rate of decline will be lower than in
previous recent years.

Value sales are expected to pick up slightly


between 2020 and 2022 to £343 million
due to effect of price inflation, while the
declines seen in volume sales will almost
level out by the end of the period.

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 25

FIGURE 12: UK RETAIL VALUE AND VOLUME SALES OF EDIBLE OILS, 2012-22

Total Index % £m at Index % Total Index %


£m annual change 2017 prices annual change m litres annual change

2012 403 105 na 413 108 na 183 111 na


2013 409 107 +1.5 406 106 -1.7 176 107 -3.8
2014 382 100 -6.6 365 95 -9.9 170 103 -3.4
2015 368 96 -3.7 352 92 -3.7 165 100 -2.9
2016 (est) 376 98 +2.2 368 96 +4.6 167 101 +1.2
2017 (fore) 383 100 +1.9 383 100 +4.1 165 100 -1.2
2018 (fore) 389 102 +1.7 381 99 -0.6 163 99 -1.0
2019 (fore) 393 103 +0.8 375 98 -1.4 162 98 -1.0
2020 (fore) 391 102 -0.4 350 91 -6.8 160 97 -1.1
2021 (fore) 402 105 +2.6 367 96 +4.9 159 96 -0.9
2022 (fore) 402 105 +0.2 359 94 -2.0 157 95 -1.1
Source: based on IRI/Mintel

Edible oils see a return to growth FIGURE 13: BEST- AND WORST-CASE FORECAST OF UK RETAIL VALUE SALES
OF EDIBLE OILS, 2012-22
Total sales of edible oils were up by 2.2%
in 2016. A decline in value sales of cooking
oils was more than made up for by an
increase in sales of olive oils and speciality
oils. However, the former two trends were
fuelled purely by price fluctuations, while
the segments’ volumes remained static.

Overall edible oil volumes were up by only


1.2%, the slight growth bucking the long-
running downward trend. Value growth in
olive oil was driven by higher retail prices
due to dwindling production in Europe and
soaring global demand. The weakening of
the Pound since the Brexit vote has also
put upward pressure on retail prices.

By contrast, in cooking oils volume sales


held up as value sales fell, reflecting Source: based on IRI/Mintel
declining prices in this part of the edible
oils market. In 2017, value sales are
estimated to grow by around 2% but
volumes decline, due to rising prices in all
three segments but particularly in olive oil.
Further volume decline is expected going
forward, while inflation is expected to prop
up value sales.

Forecast methodology

For full details of forecast methodology


please see Appendix – Market Size and
Forecast.

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 26

Market Segmentation
Butter sales boosted in 2017 by products, butter enjoying a stronger image of butter showed stronger growth than
higher prices here. The same ‘clean eating’ trend has value sales due to deflation, the boost to
had a negative impact on sales of spreads value sales in 2017 is coming from higher
Total sales of yellow fats were dragged and cooking fats such as Stork. This retail prices. These look to be, in turn,
down in 2016 by a decline in sales of comes despite leading brand Flora, for dampening volume sales.
margarine and spreads and cooking fats, example, focusing its 2016 repositioning
an increase in the sales of butter failing around its plant-based credentials in an However, the market is not simply seeing
to offset this. Butter’s share of the market apparent bid to drive associations with switching between the segments, as
increased from 61% of value sales in 2015 naturalness. overall volumes fell by an estimated 7%
to 63% in 2016. over 2015-17, reflecting healthy eating
In 2017, a similar trend is being seen trends, struggles of carrier products like
Volume sales of both block butter and in terms of growing sales of butter and bread and, most recently, the rising price
spreadable butter have benefitted from the declining sales of spreads and cooking of butter (see Market Size and Forecast).
desire for more natural and less processed fats. However, while in 2016 volume sales

FIGURE 14: UK RETAIL VALUE AND VOLUME SALES OF YELLOW FATS, BY SEGMENT, 2015-17

Values 2015 % 2016 % 2017 (est) % % change 2015-17


£m share £m share £m share

Butter 731 61 737 63 789 66 +7.9


Margarine & spreads 431 36 388 33 362 31 -16.0
Cooking fats 44 4 39 3 36 3 -18.2

Total 1,206 100 1,164 100 1,187 100 -1.6

Volumes 2015 % 2016 % 2017 (est) % % change 2015-17


m kg share m kg share m kg share

Butter 150 46 157 49 154 50 +2.7


Margarine & spreads 160 48 148 46 139 45 -13.1
Cooking fats 20 6 17 5 15 5 -25.0

Total 330 100 322 100 308 100 -6.7


Source: based on IRI/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 27

Speciality oils taking a larger share referendum. A reduction in promotions has which accounts for over 90% of vegetable
of sales played a part in the rise in price paid by oil sales sold in the UK. With the price
customers. So far, these price increases getting higher than that of sunflower oil,
In edible oils, olive oil accounts for the have not hit volume sales, with extra virgin some consumers have moved away from
largest share of value sales, but cooking olive oil still performing strongly. the former to the latter.
oil by far the largest share of volume sales.
This reflects the much higher average price Cooking oil, including sunflower and Speciality oils continue to see strong
of olive oil, especially extra virgin olive oil, vegetable oil, saw flat value sales in growth driven by growth in penetration and
compared with sunflower and vegetable oil. 2016. Stronger sales of cooking oil sprays retail space allocation of products such as
failed to offset the decline in other areas. coconut oil and cold-pressed rapeseed oil.
The increase in value sales of olive oil Cooking oil sprays’ proposition of using Cold-pressed rapeseed oil is benefitting
has been driven by higher retail prices, less oil taps into health trends, while their from those switching from olive oil due
resulting from a combination of dwindling convenience may also appeal. to price increases for olive oil, and also
European production and the weakening appeals for health benefits and British
in the value of the Pound against the Vegetable oil has suffered due to provenance.
euro, particularly following the Brexit commodity price inflation for rapeseed oil,

FIGURE 15: UK RETAIL VALUE AND VOLUME SALES OF EDIBLE OILS, BY TYPE, 2015-17

Values 2015 % 2016 % 2017 (est) % % change 2015-17


£m share £m share £m share

Cooking oil 158 43 151 40 154 40 -2.5


Olive oil 171 46 177 47 179 47 +4.7
Speciality oil 39 11 48 13 50 13 +28.2

Total 368 100 376 100 383 100 +4.1

Volumes 2015 % 2016 % 2017 (est) % % change 2015-17


m kg share m kg share m kg share

Cooking oil 120 73 120 72 121 73 +0.8


Olive oil 39 24 39 23 36 22 -7.7
Speciality oil 6 4 8 5 8 5 +33.3

Total 165 100 167 100 165 100 -


Source: based on IRI/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 28

Market Drivers
Declining bread sales are affecting in a big reduction in olive oil production seeing their incomes being squeezed by
butter and spreads across the EU. inflation exceeding wage rises.

Sales of bread have been declining. The depreciation of the Pound against Interest in cooking and baking
2016 was the third consecutive year of the euro, particularly following the Brexit important to market
sales losses, and the rate of decline had vote, has also driven up the cost of olive
increased sharply. Pre-packed bread oil imports. The combined effect of raw Despite the popularity of TV’s The Great
and rolls saw a particularly steep decline material inflation and the weakening in British Bake Off, sales of many home
in value sales in 2016, down 10% and the value of Sterling, particularly given baking ingredients declined in 2016/17.
13% respectively (see Mintel’s Bread and that all olive oil in the UK is imported, Cake coverings and decorating products,
Baked Goods – UK, October 2016 Report). has been that retailers have had to dried fruits, sugar and flour are among the
increase prices. The number and value baking items seeing a decline in sales,
Some people are cutting back on bread for of promotions have also fallen, in another and 42% of buyers of butter, spreads and
diet-related reasons, while others simply attempt to manage the impact of rising oils say they are baking less at home
have a preference for other breakfast and ingredient costs. compared to a few years ago (see Usage
lunch items. Regardless of the reason, and Buying Behaviour).
though, it means they are not using butter Estimates from the International Olive
or spreads for spreading as much as they Council predict a 466,800 tonne supply Yellow fats and oils are other important
used to. deficit by 2017/18 and Brexit-related baking ingredients, so a waning in interest
uncertainties mean Sterling is unlikely to in home baking will also be affecting sales
Spreading on toast or on bread to make bounce back in the foreseeable future. of these products. The income squeeze,
a sandwich are by far the biggest two This means olive oil prices are likely to though, could provide a boost to home
uses for block butter and spreads (see remain high for some time to come. baking, not necessarily because baking
Mintel’s Yellow Fats and Edible Oils – cakes is cheaper than buying them at the
UK, September 2016 Report). As such, Wholesale butter prices have also supermarket, but because home baking is
fewer meal or snack occasions, including been increasing a cheap form of entertainment compared
sandwiches or toast, has by far the biggest with going out.
impact on sales of yellow fats. Following deflation in the butter market
throughout 2015 and early 2016, The amount of cooking that people do at
Falling real wages could rekindle interest wholesale butter prices have been home is important for sales of yellow fats
in packed lunches, which should boost increasing. Prices got so low in 2016 and edible oils, and 50% of people who
sales of bread. Concerns about sugar in due to oversupply in the milk market that cook from scratch or partly from scratch
cereals also offer scope for a return to many farmers decided to cut back on their say they do so because they enjoy cooking
bread or toast for breakfast. 58% of people dairy cow numbers, leading to a decline in (see Mintel’s Attitudes towards Cooking
typically eat cereal for breakfast at home supply and higher prices. in the Home – UK, May 2016 Report).
and 48% eat toast (see Mintel’s Breakfast Tapping into this enjoyment of cooking
Eating Habits – UK, July 2016 Report). Rising wholesale costs have now fed through promoting recipe and meal ideas
through to higher retail butter prices, with will be important to the market.
Rise in commodity prices for olive the price of butter across major retailers
oil increasing significantly in 2016/17. Given Ageing population more worried
that butter is a staple food item in most about saturated fat
Raw material prices for olive oil increased households, this is providing a boost to
sharply over the last few years as a result value sales. The UK population is ageing, with the
of poor harvests in Italy, Greece and number of over-55s projected to increase
Spain. This has been down to unusually If commodity butter prices continue rising by 2 million (10%) between 2017 and
warm summers affecting flowering, but though, this could provide an opportunity 2022. Older people are more likely to be
also crops being savaged by disease such for spreads as switching to spreads concerned about saturated fat in food and
as Mediterranean fruit flies and the Xylella offers a way for shoppers to save money, drink than younger people (see Mintel’s
fastidiosa bacteria. All this has resulted especially during a time when they are Attitudes towards Sugar and Sweeteners

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 29

– UK, January 2017 Report), favouring butter. Having no artificial ingredients is With sugar now being the number one
spreads over butter. also more likely to be important to over- health demon and the focus moving
55s than younger people, which links to away from fat being bad for you, butter
However, when buying butter and spreads growing interest in products that are more could benefit from being seen as OK in
for spreading, they attach the most natural. moderation as part of a balanced diet.
importance to being spreadable and Over-55s are most likely to try to eat a
taste (see Factors Influencing Choice Interest in more natural and less balanced diet consisting of all food groups
of Butter/Spread). They are less likely processed products favours butter, (see Mintel’s Attitudes towards Healthy
to buy spreadable butter than younger although more spreads are tapping into Eating – UK, February 2017 Report).
age groups, but overall though are only the desire for natural products through
slightly below average purchasers of promoting ‘no artificial ingredients’.

FIGURE 16: TRENDS IN AGE STRUCTURE OF THE UK POPULATION, 2012-22

2012 2017 (proj) 2022 (proj) % change % change


000 % 000 % 000 % 2012-17 2017-22

0-4 4,009 6.3 3,964 6.0 4,052 5.9 -1.1 +2.2


5-9 3,607 5.7 4,093 6.2 4,034 5.9 +13.5 -1.4
10-14 3,442 5.4 3,712 5.6 4,146 6.1 +7.8 +11.7
15-19 3,787 6.0 3,681 5.6 3,796 5.6 -2.8 +3.1
20-24 4,386 6.9 4,244 6.4 3,951 5.8 -3.2 -6.9
25-34 8,551 13.5 9,019 13.7 9,171 13.4 +5.5 +1.7
35-44 8,461 13.4 8,308 12.6 8,682 12.7 -1.8 +4.5
45-54 8,880 14.0 9,214 14.0 8,543 12.5 +3.8 -7.3
55-64 7,262 11.5 7,766 11.8 8,659 12.7 +6.9 +11.5
65+ 10,859 17.2 12,030 18.2 13,168 19.3 +10.8 +9.5

Total 63,244 100.0 66,031 100.0 68,202 100.0 +4.4 +3.3


Source: Office for National Statistics/Mintel

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COMPANIES
AND BRANDS

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 31

What You Need to Know


Own-label makes gains in yellow fats Oils account for the majority of new launches

The biggest growth in the declining yellow fats market between Oils account for over half of total launches, which contrasts to
2015/16 and 2016/17 came from own-label. Rising prices of butter their estimated 25% share of value sales in 2017, and signifies
appear to have supported demand for own-label as the more more innovation than in butter and spreads.
affordable option, to see it gain share of value and volume sales.
In the last two years, though, margarine and other blends (ie
Among brands, Lurpak performed strongly and maintains a big spreads) have increased their share of total launch activity,
lead in the yellow fats market. It captures a 26% share of value showing how brands and retailers in this category are pushing
sales thanks to its 40% share of the butter market. Kerrygold hard to try and reverse the decline seen in sales (see Launch
was another strong performer, growing sales on the back of the Activity and Innovation).
success of its spreadable butter, while the majority of spreads
brands saw sales fall (see Market Share). Bigger focus on natural products

Cooking oils dominated by own-label No additive/preservative claims have become particularly


prevalent in margarine and spreads. Launches of vegan spreads
Own-label accounts for the lion’s share of sales of cooking oils and those that claim to contain no animal ingredients have also
(57% by value), reflecting the difficulty brands face in tangibly increased. Flora’s ‘Powered by Plants’ campaign is one of the
differentiating their products in this market, and the commodity higher-profile examples of this trend.
nature of cooking oil. However, it saw a dip in sales and market
share in 2016/17. Similarly, there has been an increase in the proportion of products
making dairy-free claims, with Flora and Vitalite among brands
The top two brands – Crisp ‘n’ Dry and Flora – also saw value in spreads making this a focus for their products (see Launch
and volume sales fall, while KTC and Pura bucked the downward Activity and Innovation).
trend in value sales in this category (see Market Share).
Spray oils tapping into health and convenience trends
Filippo Berio sees dip in olive oil sales
The choice of oil sprays available has been expanding both from
Market leader Filippo Berio saw its olive oil sales fall in 2016/17, brands and own-label. In June 2017, Princes launched three olive
reducing its lead over second-placed Napolina. Filippo Berio’s oil sprays under its Napolina brand, with this launch looking to tap
sales were affected by the brand losing listings for its 250ml into the trend towards sprays that give consumers more control
product at Tesco and Sainsbury’s, while volumes were hit by over the amount of oil they use.
higher prices and reduced promotional activity.
There was a significant increase in the proportion of new product
Own-label grew its share of the olive oil market, with extra virgin launches in edible oils making premium claims in the first half
olive oil continuing to perform strongly despite price hikes at the of 2017, reflecting the launch of extra virgin olive oils and cold-
start of 2017 (see Market Share). pressed rapeseed oils under premium own-labels during the
period (see Launch Activity and Innovation).

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 32

Coconut oils being joined by avocado oils Lurpak has strongest reputation for quality

Supermarket sales of coconut oil have surged and continuing Lurpak has more differentiation than any of the other brands, with
launch activity in this area is taking coconut oils into the more than four in 10 people who have heard of it seeing it as
mainstream. 2016 saw own-label enter the category, but brands standing out or a unique brand. It is by far the most trusted brand
have been responding to this competition. and the one most seen as having a good reputation and offering
consistently high quality.
A more recent trend in speciality oils though is avocado oil. It
is high in monounsaturated fat and packed with vitamins, both Anchor is the brand with the second highest association with
of which appeal to people looking for a healthier option. Fresh offering consistently high quality, although some distance behind
avocado sales have seen massive growth in recent years and Lurpak (see Brand Research).
brands and retailers are now innovating with avocado oils (see
Launch Activity and Innovation). Flora seen as most healthy brand

Fall in 2016 advertising Flora stands out as the brand most strongly associated with
caring about health and wellbeing, which is likely to link to its
Total main media advertising expenditure on yellow fats and focus on products that lower cholesterol and its Flora ProActiv
edible oils decreased by 15% in 2016 to £23 million. This was range that offers additional health benefits.
mainly due to a 30% reduction in advertising spending for
margarine and spreads to £9.8 million, as Unilever scaled back It is also seen as the most innovative brand, the most socially and
support for its Bertolli, Flora and Stork brands. environmentally responsible, and offering the best value. Offering
good value and promoting health benefits in an engaging way are
By contrast, advertising expenditure on butter increased by 7% key strengths for the brand (see Brand Research).
in 2016 to £12.3 million, driven primarily by increased support for
Lurpak by Arla Foods. Advertising support for edible oils, which is
a category dominated by own-label, was limited to less than £1
million in 2016, but was boosted by an increase in advertising for
Fry Light in 2017 (see Advertising and Marketing Activity).

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 33

Market Share
Own-label makes gains in yellow FIGURE 17: LEADING BRANDS’ SALES AND SHARES IN THE UK RETAIL
fats YELLOW FATS MARKET, BY VALUE AND VOLUME, 2015/16-2016/17

The biggest growth in the declining yellow


fats market between 2015/16 and 2016/17 % change
Value 2015/16* % 2016/17** %
came from own-label. Rising prices of 2015/16-2016/17
butter appear to have supported demand £m £m
for own-label as the more affordable
option, to see it gain share of value and Lurpak (Arla Foods UK) 301 26 306 26 +1.7
volume sales. Flora (Unilever) 139 12 125 11 -10.1
Anchor (Arla Foods UK) 99 8 98 8 -1.0
Among brands, Lurpak performed strongly Clover (Dairy Crest) 76 6 69 6 -9.2
and maintains a big lead in the yellow fats Country Life (Dairy Crest) 58 5 57 5 -1.7
market. It captures more than a quarter of Bertolli (Unilever) 44 4 40 3 -9.1
value sales in the overall market thanks I Can’t Believe (Unilever) 45 4 31 3 -31.1
to its 40% share of the butter market. Stork (Unilever) 33 3 29 2 -12.1
Lurpak is benefitting from strong brand Kerrygold (Ornua Foods UK) 23 2 25 2 +8.7
associations (see Brand Research) and Other brands 99 8 102 9 +3.0
a shift towards butter and away from Own-label 258 22 292 25 +13.2
spreads. Kerrygold was another strong
performer, growing sales on the back of Total 1,176 100 1,176 100 -
the success of its spreadable butter and
marketing investment. % change
Volume 2015/16* % 2016/17** %
2015/16-2016/17
The majority of spreads brands saw sales m kg m kg
fall. While spreads avoided the price
increases that propelled value growth Lurpak (Arla Foods UK) 58 18 58 18 -
for butter, many instead cutting prices, Flora (Unilever) 46 14 42 13 -8.7
this failed to put people off switching to Anchor (Arla Foods UK) 20 6 19 6 -5.0
butter. Unilever confirmed in April 2017 its Clover (Dairy Crest) 30 9 28 9 -6.7
intention to sell or demerge its spreads Country Life (Dairy Crest) 13 4 12 4 -7.7
division, which reflects the continuing
Bertolli (Unilever) 15 5 14 4 -6.7
decline of its spreads brands. Among
I Can’t Believe (Unilever) 20 6 14 4 -30.0
smaller brands (included under “other
Stork (Unilever) 15 5 13 4 -13.3
brands”) new packaging promoting being
Kerrygold (Ornua Foods UK) 4 1 4 1 -
dairy-free looks to have boosted sales of
Other brands 26 8 27 9 +3.8
Vitalite.
Own-label 79 24 83 26 +5.1

Total 326 100 315 100 -3.4


* 52 weeks ending 23 April 2016
** 52 weeks ending 22 April 2017
Note: data may not sum due to rounding
Source: based on IRI/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 34

Three manufacturers (Arla, Unilever and FIGURE 18: LEADING MANUFACTURERS’ SALES AND SHARES IN THE UK
Dairy Crest) account for two thirds of RETAIL YELLOW FATS MARKET, BY VALUE AND VOLUME, 2015/16-2016/17
value sales in the yellow fats market, but
only Arla Foods increased its sales in
2016/17 due to the strong performance of % change 2015/16-
Value 2015/16* % 2016/17** %
its Lurpak brand in butter. With own-label 2016/17
accounting for a further quarter of sales, £m £m
other manufacturers capture a relatively
small share of the market. Arla Foods UK 402 34 405 34 +0.8
Unilever 262 22 226 19 -13.7
For detailed market shares for butter, Dairy Crest Ltd 161 14 156 13 -3.1
margarine and spreads, and cooking fats Ornua Foods UK 23 2 25 2 +8.7
see Appendix – Market Share. Raisio 17 1 16 1 -5.8
Lactalis Nestlé 11 1 12 1 +9.1
Yeo Valley Family Farm 7 1 7 1 -
Kerry Group plc 8 1 7 1 -12.5
Graham’s 4 <0.5 4 <0.5 -
Fayrefield Foods 3 <0.5 3 <0.5 -
Other 21 2 21 2 -
Own-label 258 22 292 25 +13.2

Total 1,176 100 1,176 100 -

% change 2015/16-
Volume 2015/16* % 2016/17** %
2016/17
m kg m kg

Arla Foods UK 78 24 77 24 -1.3


Unilever 96 29 83 26 -13.5
Dairy Crest Ltd 53 16 53 17 -
Ornua Foods UK 4 1 4 1 -
Raisio 3 1 3 1 -
Lactalis Nestlé 2 1 2 1 -
Yeo Valley Family Farm 1 <0.5 1 <0.5 -
Kerry Group plc 3 1 2 1 -33.3
Graham’s 1 <0.5 1 <0.5 -
Fayrefield Foods 1 <0.5 1 <0.5 -
Other 6 2 5 2 -16.7
Own-label 79 24 83 26 +5.1

Total 326 100 315 100 -3.4


* 52 weeks ending 23 April 2016
* 52 weeks ending 22 April 2017
Note: data may not sum due to rounding
Source: based on IRI/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 35

Cooking oils dominated by own- FIGURE 19: LEADING BRANDS’ SALES AND SHARES IN THE UK RETAIL
label COOKING OILS MARKET, BY VALUE AND VOLUME, 2015/16-2016/17

Own-label accounts for the lion’s share of


sales of cooking oils, reflecting the difficulty % change 2015/16-
Value 2015/16* % 2016/17** %
brands face in tangibly differentiating their 2016/17
products in this market, and the commodity £m £m
nature of cooking oil. However, it saw a dip
in sales and market share in 2016/17. The Crisp ‘n’ Dry (Princes) 24 16 22 14 -8.3
top two brands – Crisp ‘n’ Dry and Flora – Flora (Princes) (1) 15 10 12 8 -20.0
also saw value and volume sales fall, while KTC (KTC Edibles) 10 6 12 8 +20.0
KTC and Pura bucked the downward trend Fry Light (Dairy Crest) 11 7 11 7 -
in value sales in this category to grow their Pura (Princes) 1 6 4 4 +300.0
sales of cooking oils. Goldenfields 2 1 2 1 -
Other brands 2 1 2 1 -
KTC’s growth is partly driven by the Own-label 90 58 87 57 -3.3
low price of its products, while Pura
has benefitted from NPD (New Product Total 154 100 152 100 -1.3
Development) and new formats such as
coconut oil blend sprays that remain liquid % change 2015/16-
at room temperature. Brands offering Volume 2015/16* % 2016/17** %
2016/17
sprays have generally done better. m litres m litres

Crisp ‘n’ Dry (Princes) 18 15 16 13 -11.1


Flora (Princes) (1) 8 7 7 6 -12.5
KTC (KTC Edibles) 11 9 13 11 +18.2
Fry Light (Dairy Crest) 1 1 1 1 -
Pura (Princes) <0.5 <0.5 4 3 na
Goldenfields 1 1 2 2 +100.0
Other brands 1 1 1 1 -
Own-label 78 66 77 64 -1.3

Total 119 100 120 100 +0.8


* 52 weeks ending 23 April 2016
* 52 weeks ending 22 April 2017
(1) Manufactured by Princes under licence from Unilever
Note: data may not sum due to rounding
Source: based on IRI/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 36

Princes leads the cooking oils market FIGURE 20: LEADING MANUFACTURERS’ SALES AND SHARES IN THE UK
through its Crisp ‘n’ Dry brand and its RETAIL COOKING OIL MARKET, BY VALUE AND VOLUME, 2015/16-2016/17
manufacture of the Flora and Pura Organic
Oils brands. Growing sales of Pura could
not quite make up for the fall in sales seen % change 2015/16-
Value 2015/16* % 2016/17** %
for Crisp ‘n’ Dry and Flora in 2016/17. 2016/17
£m £m
KTC Edibles and Dairy Crest are the
other two significant branded product Princes Ltd 40 26 39 26 -2.5
manufacturers, with the latter present KTC Edibles Ltd 10 6 12 8 +20.0
through the Fry Light cooking oil sprays Dairy Crest Ltd 11 7 11 7 -
brand that launched its largest-ever Golden Fields 2 1 2 1 -
marketing investment in 2017. Other 1 1 1 1 -
Own-label 90 58 87 57 -3.3

Total 154 100 152 100 -1.3

% change 2015/16-
Volume 2015/16* % 2016/17** %
2016/17
m litres m litres

Princes Ltd 27 23 27 23 -
KTC Edibles Ltd 11 9 13 11 +18.2
Dairy Crest Ltd 1 1 1 1 -
Golden Fields 1 1 2 2 +100.0
Other <0.5 <0.5 1 1 na
Own-label 78 66 77 64 -1.3

Total 119 100 120 100 +0.8


* 52 weeks ending 23 April 2016
* 52 weeks ending 22 April 2017
Note: data may not sum due to rounding
Source: based on IRI/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 37

Filippo Berio sees dip in olive oil FIGURE 21: LEADING BRANDS’ SALES AND SHARES IN THE UK RETAIL OLIVE
sales OIL MARKET, BY VALUE AND VOLUME, 2015/16-2016/17

Market leader Filippo Berio saw its olive oil


sales fall in 2016/17, reducing its lead over % change
Value 2015/16* % 2016/17** %
second-placed Napolina. Filippo Berio’s 2015/16-2016/17
sales were affected by the brand losing £m £m
listings for its 250ml product at Tesco and
Sainsbury’s, while volumes were hit by Filippo Berio (Filippo Berio UK) 34 20 29 16 -14.7
higher prices and reduced promotional Napolina (Princes) 28 16 28 16 -
activity. Fry Light (Dairy Crest) 8 5 8 4 -
Olivio (Princes) 4 2 4 2 -
Princes’ Napolina brand maintained sales KTC (KTC Edibles) 3 2 3 2 -
at 2015/16 levels, helped by it retaining Il Casolare (Farchioni) 3 2 3 2 -
extensive listings in major supermarkets Other brands 9 5 8 5 -11.1
and ongoing investment in marketing Own-label 86 49 93 53 +8.1
activity. The launch of a trio of olive oil
sprays in 2017 also demonstrates its Total 174 100 176 100 +1.1
commitment to NPD.
% change
Own-label grew its share of the olive oil Volume 2015/16* % 2016/17** %
2015/16-2016/17
market, with extra virgin olive oil continuing m litres m litres
to perform strongly despite price hikes at
the start of 2017. Own-label NPD activity in Filippo Berio (Filippo Berio UK) 6 15 5 13 -16.7
olive oil and range resets by major retailers Napolina (Princes) 6 15 6 16 -
helped sales. Fry Light (Dairy Crest) 1 3 1 3 -
Olivio (Princes) 2 5 2 5 -
KTC (KTC Edibles) 2 5 2 5 -
Il Casolare (Farchioni) <0.5 <0.5 <0.5 <0.5 -
Other brands 1 3 1 3
Own-label 21 54 22 58 +4.8

Total 39 100 38 100 -2.6


* 52 weeks ending 23 April 2016
* 52 weeks ending 22 April 2017
Note: data may not sum due to rounding
Source: based on IRI/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 38

Having Olivio as well as the Napolina FIGURE 22: LEADING MANUFACTURERS’ SALES AND SHARES IN THE UK
brand gives Princes market leadership in RETAIL OLIVE OIL MARKET, BY VALUE AND VOLUME, 2015/16-2016/17
the olive oil market. The top two branded
manufacturers account for just over a third
of total sales, but lost share in 2016/17 to % change 2015/16-
Value 2015/16* % 2016/17** %
own-label. 2016/17
£m £m

Princes Ltd 33 19 32 18 -3.0


Filippo Berio 34 20 29 16 -14.7
Dairy Crest Ltd 8 5 8 5 -
KTC Edibles Ltd 3 2 3 2 -
Farchioni 3 2 3 2 -
Other 8 5 8 5 -
Own-label 86 49 93 53 +8.1

Total 174 100 176 100 +1.1

% change 2015/16-
Volume 2015/16* % 2016/17** %
2016/17
m litres m litres

Princes Ltd 8 21 8 21 -
Filippo Berio 6 15 5 13 -16.7
Dairy Crest Ltd 1 3 1 3 -
KTC Edibles Ltd 2 5 2 5 -
Farchioni <0.5 <0.5 <0.5 <0.5 -
Other 1 3 1 3 -
Own-label 21 54 22 58 +4.8

Total 39 100 38 100 -2.6


* 52 weeks ending 23 April 2016
* 52 weeks ending 22 April 2017
Note: data may not sum due to rounding
Source: based on IRI/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 39

Own-label sales of speciality oils FIGURE 23: LEADING BRANDS’ SALES AND SHARES IN THE UK RETAIL
grow SPECIALITY OILS MARKET, BY VALUE AND VOLUME, 2015/16-2016/17

Own-label sales of speciality oils enjoyed


strong growth in 2016/17 as various % change
retailers grew their offer in this area, Value 2015/16* % 2016/17** % 2015/16-
including introducing more cold-pressed 2016/17
rapeseed oils and moving into coconut oils £m £m
that have been growing strongly. The entry
of own-label into coconut oils in 2016 saw The Groovy Food Company 5.6 13 4.3 9 -23.2
prices fall and hit sales of brands in this KTC (KTC Edibles) 2.8 6 3.7 8 +32.1
area. Fry Light (Dairy Crest) 0.9 2 1.9 4 +111.1
Lucy Bee (Lucy Bee) 2.9 7 1.8 4 -37.9
In terms of branded products, the market Borderfields (Hammond Food Olis) 1.4 3 1.5 3 +7.1
is relatively fragmented with a number Vita Coco (All Market Europe) 2.4 6 1.4 3 -41.7
of brands owned by different companies Mazola (Princes) 1.6 4 1.4 3 -12.5
competing and some having strengths Alfa One (Hansells Foods UK) 1.1 3 1.2 2 +9.1
in particular areas. For example, sales Farringtons 0.9 2 1.2 2 +33.3
for The Groovy Food Company, Lucy Other 6.2 14 7.3 15 +17.7
Bee and Vita Coco in speciality oils are Own-label 17.4 40 22.9 47 +31.6
mostly coconut oil, and Borderfields and
Farringtons specialise in cold-pressed Total 43.2 100 48.7 100 +12.7
rapeseed oils.
% change
Volume 2015/16* % 2016/17** % 2015/16-
2016/17
m litres m litres

The Groovy Food Company 0.3 4 0.3 4 -


KTC (KTC Edibles) 0.7 10 0.9 12 +28.6
Fry Light (Dairy Crest) 0.1 1 0.2 3 +100.0
Lucy Bee (Lucy Bee) 0.1 1 0.1 1 -
Borderfields (Hammond Food Olis) 0.2 3 0.2 3 -
Vita Coco (All Market Europe) 0.1 1 0.1 1 -
Mazola (Princes) 0.8 12 0.7 9 -12.5
Alfa One (Hansells Foods UK) 0.3 4 0.3 4 -
Farringtons 0.1 1 0.2 3 +100.0
Other 0.8 12 1.0 13 +25.0
Own-label 3.3 48 3.9 50 +18.2

Total 6.9 100 7.8 100 +13.0


* 52 weeks ending 23 April 2016
* 52 weeks ending 22 April 2017
Note: data may not sum due to rounding
Source: based on IRI/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 40

Among manufacturers, The Groovy Food FIGURE 24: LEADING MANUFACTURERS’ SALES AND SHARES IN THE UK
Company, Lucy Bee and All Market Inc. RETAIL SPECIALITY OILS MARKET, BY VALUE AND VOLUME, 2015/16-
have all seen sales fall in 2016/17 due 2016/17
to competition in coconut oils from own-
label. Dairy Crest saw a boost from the
expansion of its range of Fry Light cooking % change
Value 2015/16* % 2016/17** %
oils sprays. 2015/16-2016/17
£m £m

The Groovy Food Company 5.6 13 4.3 9 -23.2


KTC Edibles 2.8 6 3.7 8 +32.1
Princes Ltd 1.6 4 1.9 4 +18.8
Dairy Crest Ltd 1.0 2 1.9 4 +90.0
Lucy Bee 2.9 7 1.8 4 -37.9
Borderfields 1.4 3 1.5 3 +7.1
All Market Inc 2.4 6 1.4 3 -41.7
Hansells Food Group 1.1 3 1.2 2 +9.1
Farrington Oils Ltd 0.9 2 1.2 2 +33.3
Larchwood Foods 0.8 2 1.1 2 +37.5
Other 5.3 12 5.8 12 +9.4
Own-label 17.4 40 22.9 47 +31.6

Total 43.2 100 48.7 100 +12.7

% change
Volume 2015/16* % 2016/17** %
2015/16-2016/17
m litres m litres

The Groovy Food Company 0.3 4 0.3 4 -


KTC Edibles 0.7 10 0.9 12 +28.6
Princes Ltd 0.8 12 0.8 10 -
Dairy Crest Ltd 0.1 1 0.2 3 +100.0
Lucy Bee 0.1 1 0.1 1 -
Borderfields 0.2 3 0.2 3 -
All Market Inc 0.1 1 0.1 1 -
Hansells Food Group 0.3 4 0.3 4 -
Farrington Oils Ltd 0.1 1 0.2 3 +100.0
Larchwood Foods 0.1 1 0.2 3 +100.0
Other 0.7 10 0.7 9 -
Own-label 3.3 48 3.9 50 +18.2

Total 6.9 100 7.8 100 +13.0


* 52 weeks ending 23 April 2016
* 52 weeks ending 22 April 2017
Note: data may not sum due to rounding
Source: based on IRI/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 41

Launch Activity and Innovation


Oils account for the majority of FIGURE 25: NEW PRODUCT LAUNCHES IN THE UK BUTTER, SPREADS AND
new launches EDIBLE OILS MARKET, 2012-17

Oils account for over half of total launches,


which contrasts to their estimated
25% share of value sales in 2017, and
signifies more innovation than in butter
and spreads. This reflects the ongoing
development of the oils market, with new
oils such as cold-pressed rapeseed and
coconut emerging to offer more choice,
and extra virgin olive oil accounting for a
large share of launches.

In the last two years, though, margarine and


other blends (ie spreads) have increased
their share of total launch activity, showing
how brands and retailers in this category
are pushing hard to try and reverse the
decline seen in sales. More variety in
spreads has included a focus on dairy-free
to tap into growth in free-from products and
veganism, the inclusion of different types of Source: Mintel GNPD
oils, and claims of added health benefits.

Bigger focus on natural and No additive/preservative claims have Similarly, there has been an increase in
environmentally-friendly products become particularly prevalent in margarine the proportion of products making dairy-
and spreads, tapping into the ‘clean-eating’ free claims, with Flora and Vitalite among
Between 2012 and 2017, the most trend of recent years. Launches of vegan brands in spreads making this a focus for
significant changes in terms of product spreads and those that claim to contain no their products and M&S (Marks & Spencer)
claims have been the increases in the animal ingredients have also increased. launching a Made Without Dairy range of
proportion of new launches making Flora’s ‘Powered by Plants’ campaign is spreads.
“no additives/preservatives” and one of the higher-profile examples of this
“environmentally-friendly” product claims. trend.

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 42

FIGURE 26: NEW PRODUCT LAUNCHES IN THE UK BUTTER AND SPREADS MARKET, BY TOP 20 CLAIMS (SORTED BY
2016), 2012-17

2012 2013 2014 2015 2016 2017 % change 2011-17


% % % % % %

Vegetarian 67 75 75 74 80 68 +1
No additives/preservatives 9 15 12 32 28 30 +21
Ethical – Environmentally friendly product 3 3 14 20 23 27 +24
Low/no/reduced fat 22 25 23 20 22 16 -6
Low/no/reduced saturated fat 17 33 25 18 20 14 -3
Ethical – Environmentally friendly package 7 25 18 26 20 27 +20
Low/no/reduced transfat 12 20 11 17 17 11 -1
Low/no/reduced allergen 3 3 2 8 14 19 +16
Vegan 3 5 - 5 14 22 +19
Slimming 10 13 14 9 13 8 -2
Cardiovascular (functional) 10 13 7 11 13 11 +1
Ease of use 2 8 11 18 13 8 +6
No animal ingredients 3 5 - 5 13 22 +19
Seasonal 2 5 7 9 12 3 +1
Dairy free 3 3 - 6 12 16 +13
Stanols/Sterols 3 8 4 9 9 8 +5
Social media 2 8 7 17 7 11 +9
Gluten-free 3 - - 5 7 11 +8
Organic 5 5 5 5 6 11 +6
Premium 3 8 5 8 6 3 -
Source: Mintel GNPD

Bertolli puts focus on butters for


cooking

In March 2017, Bertolli launched its first


range of block butters to offer a “convenient
and flavoursome cooking solution”. This
included a standard butter with olive oil
block and two flavoured block butters:
lemon & chilli and black peppercorn and
sea salt. The butters are said to be ideal for
cooking and do not burn like butter.

Further scope exists in the market for


more flavoured butters, including those in An example of butter with a sweet flavour Syrup and sea salt. It is being positioned
smaller packs. These would be of interest is Moose Maple Butter from Moose Maple, as a “clean-eating” alternative to sugar rich
to 36% of people (see Attitudes towards which launched in November 2016 and jams and spreads.
Butter/Spreads and Edible Oils). contains British Butter, Canadian Maple

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 43

Regional butters tap into interest


in provenance

Yorkshire Butter was relaunched by


Wensleydale Creamery in May 2017 to
bring it in line with the wide Yorkshire
dairy portfolio. It has been rebranded
with Wensleydale branding against a
background showcasing the Yorkshire
countryside.

Other examples of regional butter


launched in the last year are Shirgar
Spreadable Salted Butter from Rees Evan
(Dyfed) in August 2017, which emphasises
being traditionally salted for a rich taste.

Glenilen Farm Farmhouse Butter is also


linked to a single farm, and it emphasises
being made from milk made from grass-fed
cows and being a family farm butter that
is widely served in Ireland’s top hotels and
restaurants.

44% of people agree that the regional


origin of a product increases its appeal
(see Attitudes towards Butter/Spreads and
Edible Oils).

Morrison’s extends ‘For Farmers’


range into butter

Supermarket chain Morrison’s has


extended its ‘For Farmers’ range with the
addition of Unsalted Butter and Salted under its Flora ProActiv brand, with Choice of dairy-free spreads
Butter. The retailer promises to give 15 variants targeting specific parts of the body increases
pence per pack back to dairy farmers. This with added vitamins.
taps into consumer interest in supporting In May 2017, the Flora Freedom range
British farming, with 28% of buyers willing The bones variant includes added vitamin was extended with three new spreads:
to pay more for products supporting British D, while the heart variant has added Avocado & Lime, Coconut & Almond,
farmers (see Product Attributes Most Likely vitamin B1. Along with the wider ProActiv and Walnut. The launches in 225g packs
to Add Value). range, the products also contain plant look to tap into growth in free-from sales,
sterols to help lower cholesterol, and seed interest in plant-based diets and the
Unilever extends Flora ProActive oils containing omega 3 and omega 6. popularity of coconut, nuts and avocados,
with Expert range with added The range taps into interest in products the latter of which has seen big growth in
vitamins with extra benefits to health, with 22% of sales over the last few years. March 2017
buyers saying they would pay more for also saw Dairy Crest add Vitalite Coconut
Added health benefits are offered by products with health benefits (see Product to its dairy free spreads range.
Unilever’s new range of Expert spreads Attributes Most Likely to Add Value).

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 44

Spreads with avocado and coconut oils first half of 2017, reflecting the launch of The proportion of new launches making
have also been a feature of own-label extra virgin olive oils and cold-pressed all-natural claims has also increased in the
NPD activity in 2017, including M&S rapeseed oils under premium own-labels oils segment, mainly driven by cooking oil
Made Without Dairy Avocado Oil Spread, during the period. sprays and coconut oils.
Waitrose Avocado Oil Spread and Tesco
Coconut Spread. M&S also emphasises
‘Made Without Dairy’ for its Sunflower
Spread.

First spreadable goats butter


launched

Dalamere Dairy has launched what it


claims is the first spreadable goats butter
(April 2017). The spread is made from a
blend of lightly salted goats butter with
added rapeseed oil. It is being promoted
as a natural and healthy dairy alternative
to cow’s butter.

Premium and all-natural push in


oils in 2017

In the oils category, there was a significant


increase in the proportion of new product
launches making premium claims in the

FIGURE 27: NEW PRODUCT LAUNCHES IN THE UK EDIBLE OILS MARKET, BY TOP 20 CLAIMS (SORTED BY 2016),
2012-17

2012 2013 2014 2015 2016 2017 % change 2012-17


% % % % % %

Vegetarian 20 23 34 51 39 47 +27
Ethical – Environmentally friendly package 30 28 32 41 38 29 -1
Organic 15 5 9 20 21 18 +3
No animal ingredients 5 7 16 22 16 18 +13
Vegan 5 7 16 22 14 18 +13
Premium 8 12 14 8 9 18 +10
Kosher 8 11 4 8 8 16 +8
Ethical – Environmentally friendly product - 4 4 6 8 2 +2
Low/no/reduced allergen 5 5 5 15 7 11 +6
Gluten-free 5 5 2 15 7 11 +6
Low/no/reduced transfat 2 5 2 6 5 - -2
Economy 7 4 1 2 5 2 -5
Low/no/reduced saturated fat 3 4 4 13 4 7 +4
All natural product - 4 3 6 4 11 +11
Ethical – Human 3 - 2 1 4 7 +4
Antioxidant - 2 2 3 4 - -
No additives/preservatives 8 4 5 5 3 9 +1
Cardiovascular (functional) 2 2 - 1 3 - -2
Cobranded - - - - 3 - -
Social media 2 2 2 9 1 11 +9
Source: Mintel GNPD

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 45

Spray oils tapping into health and


convenience trends

In June 2017, Princes launched three


olive oil sprays under its Napolina brand,
including extra virgin olive oil, olive oil and
light olive oil variants, with this launch
looking to tap into the trend towards
sprays that give consumers more control
over the amount of oil they use. According
to Princes, this helps diet-conscious
consumers, and in turn reduces waste and Fayrefield Foods launched Coconut Oil was launched at Harvey Nichols, to Basil
saves them money. Portions (10 x 25g cubes) under its Food Infused Olive Oil, new under Aldi’s Deli
Heaven brand, offering convenience and range.
The choice of oil sprays available has portion control for frying, cooking and baking.
been expanding both from brands and
own-label. For example, Frylight added Avocado oil the latest big thing in
1Cal Golden Sunflower Cooking Spray in speciality oils
2017, as well as Frylight with avocado oil,
which followed the launch of Fry Light 1 A more recent trend in speciality oils though
Cal Rapeseed Oil Cooking Spray in 2016. is avocado oil. It is high in monounsaturated
Asda launched sunflower and extra virgin fat, having the same omega-9 fatty acids
olive oil sprays in summer 2017. as olive oil, and packed with vitamins, both
of which appeal to people looking for a
healthier option. Fresh avocado sales have
seen massive growth in recent years and
brands and retailers are now innovating Rapeseed oil also seeing premium
with avocado oils. launches

March 2017 saw the Frylight range of Competing against olive oil are cold-
oil sprays extended with the launch of pressed rapeseed oils, which are also
Frylight with avocado oil, which as well as benefitting from interest in healthier oils. A
purporting to have health benefits is stable surge in olive oil prices has made these a
at high temperatures for cooking. Asda also more competitive alternative to extra virgin
launched a blend of olive oil and avocado oil olive oil.
Coconut oils getting more retail in 2017, described as perfect for drizzling, for
listings dips or as part of a salad dressing. A number of these products have a
premium positioning. For example, April
Supermarket sales of coconut oil have Focus on quality and flavour in 2017 saw the launch of Borderfields
surged and continuing launch activity in olive oil Gold, a range of oils made from specially
this area is taking coconut oils into the selected seeds in small batches in a sleek
mainstream as retailers dedicate more Product launches in olive oil have been clear bottle to highlight its golden hues.
shelf space to these products. 2016 dominated by extra virgin olive oil, which
saw own-label enter the category, which puts a heavy emphasis on quality. Luxury Other recent examples of launches are
triggered sharp deflation on branded extra virgin olive oils include those with Ocado Cold Pressed Rapeseed Oil (June
product coconut oils, but brands have added flavours, such as Luxury Extra 2017), Mr Hugh’s White Truffle Infused
been responding to this competition. Virgin Olive Oil with Truffle & Garlic from Rapeseed Oil (March 2017), Crush Extra
The Garlic Farm, which launched in Virgin Rapeseed Oil (May 2017) and Mr
Princes-owned Pura, for example, summer 2017. Organic Organic Extra Virgin Rapeseed
launched a range of coconut oil blends, Oil (December 2016).
including in a spray format, which are At the top end of the market, the
lower in saturated fats than traditional Ca’Rainene extra virgin olive oil range is
coconut oils. They are also flavour free and packaged in a box suitable for gifting, and
have the same smoke point as vegetable features a trio of oils sourced from Paolo
oil, offering two other key benefits. Bonomelli, Italy’s most awarded EVOO
(extra virgin olive oil) producer.
Vita Coco launched a mini 50ml pot for
people who want to try cooking with Flavoured olive oils are present across a
coconut oil before committing themselves wide range of retailers and at a number of
to buying a bigger tub. It can also be used different price points, ranging from White
for beauty use on skin, hand, lips and hair. Truffle Flavoured Extra Virgin Oil, which

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 46

Advertising and Marketing


Activity

Fall in 2016 advertising spending FIGURE 28: TOTAL ABOVE-THE-LINE, ONLINE DISPLAY AND DIRECT MAIL
ADVERTISING EXPENDITURE ON YELLOW FATS AND EDIBLE OILS, 2012-17
Total main media advertising expenditure
on yellow fats and edible oils decreased
by 15% in 2016 to £23 million. This
was mainly due to a 30% reduction in
advertising spending for margarine and
spreads to £9.8 million, as Unilever scaled
back support for its Bertolli, Flora and
Stork brands.

By contrast, advertising expenditure on


butter increased by 7% in 2016 to £12.3
million, driven primarily by increased
support for Lurpak by Arla Foods.

Advertising support for edible oils, which


is a category dominated by own-label,
was limited to less than £1 million in 2016,
meaning oils accounted for just 4% of
total advertising for yellow fats and oils. Source: Nielsen Ad Intel/Mintel
Spending increased in the first six months
of 2017 though, driven by an increase in
advertising for Fry Light cooking oil sprays. FIGURE 29: TOTAL ABOVE-THE-LINE, ONLINE DISPLAY AND DIRECT MAIL
ADVERTISING EXPENDITURE ON YELLOW FATS AND EDIBLE OILS, BY
CATEGORY, 2013-17

2013 2014 2015 2016 Jan-June 2017


£m £m £m £m £m

Butter 10.4 9.2 11.5 12.3 5.4


Lard/cooking fat - 0.2 0.2 - 0.1
Margarine & spreads 14.3 15.5 14.1 9.8 1.2
Oils 2.8 1.4 1.3 0.9 2.3

Total 27.6 26.3 27.2 23.0 9.1


Source: Nielsen Ad Intel/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 47

Arla and Unilever the biggest FIGURE 30: TOTAL ABOVE-THE-LINE, ONLINE DISPLAY AND DIRECT MAIL
advertisers ADVERTISING EXPENDITURE ON YELLOW FATS AND EDIBLE OILS*, BY
ADVERTISER, 2013-17
Main media advertising expenditure on
yellow fats and edible oils is dominated
by Arla Foods and Unilever, who between 2013 2014 2015 2016 Jan-June 2017
them accounted for £19.3 million worth £m £m £m £m £m
of advertising in 2016 and 84% of total
spending. Arla Foods 9.1 5.1 5.4 10.0 5.5
Unilever UK 12.9 16.4 16.9 9.3 1.0
This spending is in support of Arla Foods’ Adams Foods 1.2 - 0.5 1.6 -
Anchor and Lurpak brands and Unilever’s
Dairy Crest** 2.5 2.5 2.9 1.1 2.2
Bertolli, Flora, I Can’t Believe and Stork
Grahams Family Dairy - - 0.1 0.3 -
brands. In 2016, Arla overtook Unilever as
RH Amar & Co Ltd 0.7 0.6 - 0.2 0.1
the biggest advertiser in yellow fats and
Iceland Frozen Foods Plc - - - 0.1 0.2
edible oils.
Benecol Ltd 0.2 0.2 0.1 0.1 -
Princes Ltd 0.4 - - 0.1 -
Adams Foods trebled its 2016 advertising
in support of Kerrygold, while Dairy Crest Other 0.6 1.5 1.3 0.3 0.1
spent less as a result of a reduction in
support for its Clover brand in spreads. Total 27.6 26.3 27.2 23.0 9.1
* includes butter, margarine and spreads, lard/cooking fat and oils
Flora is the most heavily-promoted ** includes MH Foods
brand Source: Nielsen Ad Intel/Mintel

Although Arla has the highest overall


adspend through the monitored channels, FIGURE 31: ABOVE-THE-LINE, ONLINE DISPLAY AND DIRECT MAIL
the activity is spread across a range of ADVERTISING EXPENDITURE ON YELLOW FATS AND OILS, BY ADVERTISER
different brands. Unilever, by contrast, has AND BRAND, 2016
heavily focussed on the Flora brand. Both
its standard Flora spreads and the Flora
Freedom dairy-free spread feature in the Advertiser Brand £000
five most heavily-promoted brands.
Unilever UK Flora – Spread Range 3,187
Anchor’s new ‘British’ look to Arla Foods Lurpak Butter Range 3,083
be supported by a £4.5 million Arla Foods Anchor – Spreadable Butter 2,565
campaign Unilever UK Flora – Freedom Dairy Free Spread 2,033
Unilever UK Bertolli – Butter 1,972
In July 2017, Arla announced that the
Arla Foods Lurpak Spreadable 1,684
redesign for its Anchor brand is to be
Adams Foods Kerrygold – Spreadable Butter 1,615
supported by a £4.5 million digital and in-
Unilever UK Stork – With Butter 1,291
store marketing campaign that will promote
the brand’s ‘real butter’ credentials. The Arla Foods Lurpak Infusions Spreads 641
new design features a Union Jack to Dairy Crest Clover Spread 550
‘showcase its Britishness’. The campaign Source: Nielsen Ad Intel/Mintel
will see the return of the established
‘Hugglers’ yeti-like animated characters in
TV adverts, which first appeared in 2015. the weather, the greener the grass, the ciabatta, omelette, and parsley mash using
The campaign looks to tap into consumer happier the cows and the better the butter’. Lurpak.
interest in products of British origin.
Lurpak advocates ‘naturalness’ Lurpak continues to challenge new
Other brands are also promoting their consumers with ‘Game On, Cooks’
product’s origins. November 2016 saw Lurpak continues with its campaign campaign
Kerrygold spreadable butter promoting its encouraging adventurous cooking, first
Irish roots with a TV advert celebrating it launched in 2015, with a shifted focus In August 2016, Arla launched Lurpak’s
coming from the wettest place in Ireland. on the product’s ‘naturalness’. The ‘Game On, Cooks’ campaign. The multi
‘The wetter the weather’ features a brand concentrates on reassuring the million pound campaign intends to rouse
cycling farmer, a picnicking family and consumer with its natural ingredients and audiences to turn their screens off and
a wedding party enjoying the Irish rain simplicity. The Lurpak ‘Natural Ingredients’ ovens on. The campaign centres on
and the ‘perfect day’, because ‘the wetter advertisements feature recipes for toasted people who spend more time absorbing

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 48

food media than cooking, demonstrating Expert spreads, alongside a £1.2 million Frylight announces launch of £5
that consuming food culture is not a marketing campaign promoting healthy million multi-channel campaign
substitute for cooking. Along with TV bones and heart function. No adverts have
ads, the campaign is also supported been released yet. Frylight announced in February 2017
by ‘cook along’ recipe videos on social that it would be launching a £5million
media and Lurpak’s website, which offers Bertolli recipe videos promote multi-channel marketing campaign. The
consumers a way to interact and share authentic Italian cooking campaign marks the brand’s largest
their experience of the product. marketing investment to date and is aimed
Unilever uses recipe videos as a way of at mainstream consumers, lifting the brand
Flora focuses on ‘Powered by promoting many of its brands’ products. out of ‘diet’.
Plants’ message It continues to strengthen associations
between its brand Bertolli and authentic The new TV advert features three different
For its spreads range, Flora focused its Italian cooking with new recipe videos with families, cooking together at home to
2016 advertising on the Powered by Plants celebrity chef Gennaro Cantaldo. Bertolli showcase Frylight’s versatility, simplicity
message, emphasising how its products Butter, a blend of butter and olive oil, also and how you can cook with 95% less fat
are made from plants, and how they are received major advertising support in with it. The relaunched Frylight website
also free from artificial colours and flavours 2016. features tips and advice on cooking more
and 70% lower in saturated fat than butter. healthily, with a number of video recipes
Its Lunch Box Ideas advert also promoted Stork has also followed the recipe video being shown.
Flora naturally containing omega 3 and 6, trend by releasing another set of fast-
which are needed for children’s growth and forward baking videos themed around Nielsen Ad Intel coverage
development.  Easter in April 2017. Stork with Butter also
featured in a 2016 TV advert showing NAI (Nielsen Ad Intel) tracks advertising
Also part of Flora’s ‘Powered by Plants’ viewers how the product can be used to via the following channels: television,
campaign focused on plant-based make light and fluffy cakes and buttery and radio, press, internet display advertising,
ingredients, was a TV advert in support of creamy icing. outdoor, radio, cinema, direct mail and
its new Flora Freedom Dairy Free Spread, door drops. Spend on sponsorship, search
launched in response to increasing Stork announces charity tie up and social are not currently measured
demand for ‘free-from’ products and by NAI. For most channels covered, NAI
ending with a ‘No Moo, all mm’ message. In May 2017, Stork announced that it does not measure expenditure directly,
Summer 2017 also saw a TV advert for would be holding a fundraiser entitled but estimates it by monitoring usage
Flora Buttery with a ‘Delicious Taste Made ‘Bake it Better’ for Great Ormond Street and applying average measures of
with Plants’ message. Hospital over 22-28 May 2017. Stork expenditure.
invited people to hold a bake sale to raise
Flora ProActiv unveils Expert money to aid the lives of ill children at the
Range hospital. Stork supplied participants with
a free fundraising kit after they signed up,
In April 2017, Flora ProActiv announced with materials needed for a successful
that it would be revealing a new range of bake sale.

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 49

Brand Research
This section looks at selected key brands Brand map
operating in the UK yellow fats market.
Respondents were asked about their FIGURE 32: ATTITUDES TOWARDS AND USAGE OF SELECTED BRANDS, JULY
perceptions and usage of the brands as a 2017
whole rather than in the context of specific
products or categories.

Base: internet users aged 16+ who have heard of the brand
Bubble size represents usage (% ever eaten)
Source: Lightspeed/Mintel

Key brand metrics

FIGURE 33: KEY METRICS FOR SELECTED BRANDS, JULY 2017

* Base: 2,000 internet users aged 16+


** Base: internet users aged 16+ who have heard of the brand
*** Base: internet users aged 16+ who have eaten the brand
Source: Lightspeed/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 50

Brand attitudes: Lurpak stands for consistently high quality

FIGURE 34: ATTITUDES, BY BRAND, JULY 2017

Base: internet users aged 16+ who have heard of the brand
This chart shows the level of association of each brand surveyed with a set of key performance attributes core to food brands overall. The more significant an attribute is as
part of a brand’s image relative to other attributes, the nearer it will be to that attribute. If a brand is between a number of attributes, it is reasonably closely associated with
each of these.
Source: Lightspeed/Mintel

Brand personality: Lurpak engaging strongly with consumers

FIGURE 35: BRAND PERSONALITY – MACRO IMAGE, JULY 2017

Base: internet users aged 16+ who have heard of the brand
This chart shows all brands in relation to a set of broad image attributes applicable to all categories.
Source: Lightspeed/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 51

Flora seen as most healthy brand

FIGURE 36: BRAND PERSONALITY – MICRO IMAGE, JULY 2017

Base: internet users aged 16+ who have heard of the brand
This chart complements the wider brand image display, using a set of image traits specific to the food sector.
Source: Lightspeed/Mintel

Brand analysis FIGURE 37: USER PROFILE OF LURPAK, JULY 2017

Lurpak has the strongest


reputation for quality

Seven in 10 people have eaten Lurpak,


and more than a third in the last 12
months, very similar to usage of Flora, and
reflecting its big lead over second-placed
Anchor in the butter market. It has the
highest level of brand commitment, with
more than a third of those who have heard
of the brand saying it is their preferred
or favourite brand, and indicating strong
association with quality and taste.
Source: Lightspeed/Mintel
Lurpak has more differentiation than any
of the other brands, with more than four in based marketing and focus on ‘naturalness’ 65s, the AB socio-economic group and the
10 people who have heard of it seeing it is connecting with consumers. highest earners, who are also the groups
as standing out or a unique brand. Three most committed to the brand.
quarters of users of Lurpak rate it as good or It is by far the most trusted brand and
excellent and eight in 10 would recommend the one most seen as having a good Women are more likely to see Lurpak
it to others, by far the highest levels of reputation and offering consistently high as delicious and indulgent, as are over-
satisfaction among the brands reviewed. quality. It is also the brand that most 65s. Women and over-65s are also more
people are most proud to be associated likely to trust Lurapak, associate it with
A key strength for Lurpak is being seen as with and see as worth paying more for. It consistently high quality and think it is
the most delicious brand, as well as the most is, therefore, more able than other brands worth paying more for. 25-34-year-olds,
indulgent. It is also more likely to be seen to justify a premium price. the AB socio-economic group and highest
as special than other brands. Four in 10 earners are most likely to see it as an
people who have heard of Lurpak see it as Key demographic groups – Eating Lurpak engaging brand.
an engaging brand, suggesting its cooking- in the last 12 months peaks among over-

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 52

Anchor stands for consistent FIGURE 38: USER PROFILE OF ANCHOR, JULY 2017
quality but seen as less innovative

Seven in 10 people have eaten Anchor, a


similar proportion to Lurpak and Flora, but
fewer in the last 12 months than for these
other two brands. This is a sign of Anchor’s
longevity in the market, but also suggests
that it needs to attract back a large number
of lapsed users.

Despite having more lapsed users though,


it has the second highest level of brand
commitment in terms of being a preferred or
favourite brand, although significantly lower
than Lurpak. It has less differentiation than
other brands, but the second highest level
of brand satisfaction and recommendation.
People therefore like it, but its lack of Source: Lightspeed/Mintel
differentiation is making it more vulnerable
than other brands to brand switching. FIGURE 39: USER PROFILE OF FLORA, JULY 2017

Anchor is the brand with the second highest


association with offering consistently high
quality, although some distance behind
Lurpak. It also scores highly on trust and
having a good reputation, but is seen as
less innovative and caring about health and
wellbeing or the environment. It therefore
looks in need of a boost from new products
and clearer messages of what it is about. Its
new focus on British origin and ‘real butter’
credentials should help.

Key demographic groups – Over-65s are


significantly more likely to have eaten
Anchor in the last 12 months than younger Source: Lightspeed/Mintel
age groups, but a higher proportion of
16-34-year-old eaters eat Anchor either products under the Flora Freedom and association with being healthy and natural.
often or all the time and are committed to the Flora ProActiv sub-brands. Offering good value and promoting health
brand. The latter is a big positive for Anchor. benefits in an engaging way are key
Just under six in 10 people who have used strengths for the brand.
Trust in the Anchor brand peaks among Flora rate it as good or excellent, a lower
over-65s, while the view that it offers level of satisfaction than Lurpak, Anchor Key demographic groups – Usage of
consistently high quality and has a and Bertolli. This could be down to taste, Flora in the last 12 months peaks among
good reputation is also more common something it is focusing on more in its 25-34-year-olds, parents with children
among older people (over-55s). These latest TV advert for Flora Buttery. Seven in aged 0-12 and the largest households.
associations should help it attract back 10 users would recommend it to others. These groups are also more likely to see it
older lapsed users. as a brand that is surging forward and one
Flora stands out as the brand most that has differentiation, and rate it as good
Flora has strong association with strongly associated with caring about or excellent. Continuing to attract young
health and wellbeing health and wellbeing, which is likely to people and families will be important to
link to its focus on products that lower future sales.
Seven in 10 people have eaten Flora and cholesterol and its Flora ProActiv range
nearly four in 10 in the last 12 months, that offers additional health benefits. Women are more likely to associate Flora
putting it virtually on a par with Lurpak with caring about health and wellbeing, as
as one of the two most used brands. It is also seen as the most innovative well as see it as innovative and offering
Flora is more likely than all other brands brand, the most socially and good value. 16-34-year-olds and parents
(apart from Lurpak) to be seen as having environmentally responsible, and offering are also more likely to associate Flora with
momentum in terms of surging forward, the best value. It is the most vibrant and being innovative and offering good value,
reflecting strong NPD activity such as fun brand, and also has the strongest as well as being a fun and vibrant brand.

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 53

Bertolli has scope to increase FIGURE 40: USER PROFILE OF BERTOLLI, JULY 2017
usage through focus on health

Bertolli is the least used brand, being


newer to the yellow fats market than
the other brands under review, so it has
scope to increase usage beyond the fifth
of people using in the last 12 months. It
has the lowest level of brand commitment
in terms of being a preferred or favourite
brand, perhaps also a reflection of it
being a more recent addition to butter and
spreads.

Consumer satisfaction is relatively high,


with more than six in 10 users of the brand
rating it as good or excellent and seven
in 10 saying they would recommend it to
others. This gives it a strong platform to Source: Lightspeed/Mintel
build sales.

However, Bertolli is the least trusted brand, it could focus on to increase usage. It of the brand though, 25-34-year-olds,
suggesting low usage is resulting in lack is seen as the least natural or family- ABs and parents are most committed to
of awareness of its products in yellow fats. focussed brand, two areas it could look it.
This is also shown by it scoring relatively to address through its marketing in butter
low for having a good reputation and and spreads in order to maximise its 25-34-year-olds and parents are most
offering consistently high quality. It is the association with being healthy due to likely to see it as offering good value but
brand least associated with offering good containing olive oil. also worth paying more for, suggesting for
value. this group perceived value is not just about
Key demographic groups – Usage of price. The brand’s marketing focused
It does though have a relatively strong Bertolli peaks among over-65s, who on recipes and Italian cooking no doubt
association with caring for health and are perhaps attracted by the purported appeals to them. It is older people though
wellbeing (second after Flora). This benefits of its products’ olive oil content (over-45s) who are most likely to associate
suggests being healthy is a strength to health. Among those who have heard Bertolli with being healthy.

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 54

Clover lacks standout in yellow FIGURE 41: USER PROFILE OF CLOVER, JULY 2017
fats market

The Clover brand has been used by six in


10 people, but only a quarter in the last 12
months. It therefore has a high proportion
of lapsed users relative to those who have
ever used, suggesting the brand needs a
boost from NPD and marketing.

Clover is the brand least likely to be seen


as surging ahead, further emphasising
the need for brand reinvigoration. It is also
seen as the least diverse brand in terms
of standing out or offering something
unique compared with other brands. The
rebranding of Clover in December 2016 Source: Lightspeed/Mintel
to give its packaging a more ‘natural’ look
following the launch of its ‘nothing artificial’
recipe in September 2016, will go some Key demographic groups – Usage of Under-45s are more likely than older age
way to refreshing the brand and could Clover in the last 12 months peaks among group to see Clover as fun, vibrant and
help improve its image among consumers 16-34-year-olds, while lapsed usage engaging, trust it and think that it cares
attaching a high priority to naturalness. shows a heavy bias towards over-45s, about health and wellbeing, offering
suggesting the brand needs to engage something to build on for the brand.
The brand lacks significant standout with older consumers who are increasing
compared with the other brands, having in numbers. The data for these brands is available in
neither the strong reputation for quality the Databook.
of Lurpak or Anchor or association with Younger consumers (under-45s) have a
health and wellbeing of Flora or Bertolli. It more positive view of Clover in terms of
is the least engaging brand. It does score perceived momentum and differentiation,
relatively strongly though on offering good are more likely to rate it as good or
value, and being in dairy spreads has excellent and to recommend it. This
scope to increase sales as butter becomes reflects the appeal of buttery, spreadable
more expensive. products to younger people.

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THE CONSUMER

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 56

What You Need to Know


More than nine in 10 buy butter and spreads Meeting demand for versatility in edible oils

More than nine in 10 people buy butter or spreads, making these When it comes to edible oils, nearly half of buyers of butter,
products staple items in the vast majority of households. A large spreads and oils (46%) are looking for versatility from a product.
proportion of people are buying both types of product and there Edible oils should, therefore, make information about what
is also considerable overlap in the buying of different types of different edible oils can be used for prominent on packaging to
products within the two categories. maximise their appeal.

This shows how most people are buying a repertoire of butter or Nutritional information and the list of ingredients are each checked
spreads to cater for different uses or occasions, as well as the by nearly half of buyers of spreads (47%). This suggests a large
different taste preferences or dietary requirements of household proportion of consumers are concerned about what ingredients
members (see Buying of Yellow Fats). are contained in spreads and are seeking reassurance from
brands (see Usage and Buying Behaviour).
Nearly eight in 10 buy edible oils
Three in 10 would pay more to support British
High purchasing (78% buying) of oils reflects the wide range of farmers
different uses for edible oils and fats. Overlap in the purchasing
of edible oils or solid oil/fat is demonstrated by repertoire analysis Nearly three in 10 buyers of butter, spreads and oils (28%) would
showing 46% of people buy more than one type of product. pay more for products supporting British farmers. Just under
a fifth of buyers of butter, spreads, oil or fat (19%) would pay
In edible oils, vegetable/rapeseed oils and olive oils are each more for an organic product and the same proportion more for a
bought by around four in 10 people, while a third of people buy product that guaranteed higher animal welfare.
sunflower oil. These products clearly dominate the edible oils
market (see Buying of Edible Oils). Just over a fifth of buyers of butter, spreads, oils and fats (22%)
would pay more for products making health claims. Such claims
Being spreadable and favourite taste most important include products promoting the lowering of cholesterol in diets
and the inclusion of particular vitamins or omega oils to benefit
The convenience of being able to spread straight after you health (see Product Attributes Most Likely to Add Value).
have taken it out of the fridge is the joint most important factor,
influencing 45% of purchasers choosing butter or spread for Details of regional origin can increase appeal
spreading on toast, sandwiches, etc. Being a favourite taste is
similarly important (43%), while price stands close behind in Provenance in terms of coming from a particular region increases
swaying choice in this fragmented market. a product’s appeal for 44% of people and offers scope for adding
a point of differentiation that goes beyond just promoting butter
Overall, either being low fat or low in saturated fat is an important as British. As with British ingredients and support for British
consideration for 38% of buyers of butter or spreads. Lower fat farmers, this has the most appeal to over-65s who are increasing
content is, therefore, clearly a major selling point over butter for in numbers.
various spreads on the market (see Factors Influencing Choice of
Butter/Spread). Oils with flavour infusions in small bottles and smaller packs
of butter/spreads with added flavours appeal to 41% and
Less frying and buying of bread hitting sales 36% of people respectively. Such products are a good way of
encouraging, but also can look to add more variety to meals and
The fact that six in 10 buyers (62%) say that they fry less food snacks (see Attitudes towards Butter, Spreads and Edible Oils).
than a few years ago will be having a negative impact on the
edible oils and cooking fats sectors of the market. This is a
continuation of a long-term trend away from meals that involve
frying food.

Butter and spreads are mainly used on bread products, but four in
10 buyers are buying less bread than a few years ago. This has
been reflected in declining bread sales, which in turn impacts on
sales of butter and spreads (see Usage and Buying Behaviour).

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 57

Being seen as healthy and pure the key strengths for Lack of awareness of attributes of rapeseed and
olive oil avocado oils

The qualities most closely associated with olive oil are “healthy” What stands out about rapeseed oil and avocado oil is a lack of
and “pure”, and it is also seen as more flavoursome and worth awareness about these types of oils, with more than four in 10
paying more for than other oils. These positive consumer and a third of people respectively not associating them with any of
perceptions of olive oil are important in driving sales given the listed attributes.
consumer interest in eating healthily.
Recently more cold-pressed rapeseed oils have become available
Being light, imparting no flavour and having a high smoke point that should help build awareness, but there is clearly scope for
are key strengths of sunflower oil and this helps to drive consumer retailers to shout about the credentials of rapeseed oil more
perceptions that it is a versatile oil for cooking (see Perceptions of strongly to support this increased presence (see Perceptions of
Different Types of Edible Oils). Different Types of Edible Oils).

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 58

Buying of Yellow Fats


More than nine in 10 buy butter or FIGURE 42: TYPES OF BUTTER AND SPREADS BOUGHT IN THE LAST 3
spreads MONTHS, JULY 2017

More than nine in 10 people buy butter “Which of the following butters and spreads have you bought in the last 3
or spreads, making these products staple months? Please select all that apply.”
items in the vast majority of households.
Three quarters of people buy butter and
two thirds spreads.

A large proportion of people are buying


both types of product. For example, 79%
of buyers of olive spread and 74% of
buyers of sunflower spread are also butter
buyers.

There is also considerable overlap in the


buying of different types of products within
the two categories. For example, 42% of
buyers of block butter are also buyers of
spreadable butter, while 30% of buyers of
sunflower spread also buy olive spread
(see Databook).

This shows how most people are buying


a repertoire of butter or spreads to cater
for different uses or occasions, as well as Base: 2,000 internet users aged 16+
the different taste preferences or dietary Source: Lightspeed/Mintel
requirements of household members. It is
also a sign that innovation in the market
has the potential to actually expand This reflects both the wider requirements commitment among Lurpak buyers, as
the overall category, rather than simply of larger households already mentioned, well as a strong association with a range
cannibalising sales of existing products. as well as younger people having less of positive qualities, meaning that buyers
well-established buying habits for butter are likely to be open to trying variants.
A quarter have bought at least and spreads and perhaps being more But yellow fats are usually bought on a
three types of spreads in the last likely to experiment with different types of replacement basis, meaning that it is easy
three months product. for people to slip into the habit of buying
one product just because that is what
While a third of people buy just one type of The fact that there is this repertoire they have always done.
butter or spread, buying two types is most buying suggests that there is scope
common and a quarter buy three or more for cross-promotion of different types Offering linked discounts across different
different types. It is 16-34-year-olds and of spread. The data included in the types of spread could help break this
those living in the largest households who Brand Research section of this report, pattern, and drive greater levels of
are most likely to buy three or more types. for example, shows a high degree of experimentation. This links to the Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 59

Trend, Let’s Make a Deal, that discusses FIGURE 43: NUMBER OF DIFFERENT TYPES OF BUTTER AND SPREADS
the importance to consumers of getting a BOUGHT IN LAST 3 MONTHS, JULY 2017
good deal.

Younger appeal of spreadable


butter

Spreadable butter is the most widely


bought product and more people buy it
than block butter, which links to “being
spreadable from the fridge” being the
most important factor influencing choice
of butter or spread among 45% of buyers
of butter/spreads (see Factors Influencing
Choice of Butter/Spread).

Butter (either block or spreadable)


is bought by a higher proportion of
16-34-year-olds, driven predominantly by
the popularity of spreadable butter among Base: 2,000 internet users aged 16+
younger people. This is despite being Source: Lightspeed/Mintel
spreadable or having their preferred taste
being less important factors to them than
among over-45s. “Buttery taste” an important being spreadable from the fridge than
purchase driver buyers of other types of butter or spreads
Under-35s are, though, more likely to (see Databook).
be less worried about saturated fat In spreads having a buttery taste is an
compared with a year ago (see Usage important purchase driver, and buttery- They are only slightly more likely than
and Buying Behaviour), which ties taste spreads are bought by a higher buyers of spreadable butter though to
up with them being less concerned proportion of people than olive or be influenced by the product being low
than older people about saturated fat sunflower spreads. in saturated fat. The latter is a bigger
generally (see Mintel’s Attitudes towards influence on buyers of other types of
Sugar and Sweeteners – UK, January Those buying buttery-taste spreads are spread, especially cholesterol-lowering
2017 Report). influenced more by favourite taste and and dairy-free spreads.

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 60

Buying of Edible Oils


Nearly eight in 10 buy edible oils FIGURE 44: TYPES OF EDIBLE LIQUID OILS AND SOLID OILS/FATS BOUGHT IN
THE LAST 3 MONTHS, JULY 2017
High purchasing reflects the wide range
of different uses for edible oils and fats. “Which of the following edible oils and solid oil/fats have you bought in the last 3
Considerable overlap exists in terms of months? Please select all that apply.”
people purchasing more than one type of
edible oil, reflecting people having different
products in the house for different uses.
For example, 35% of buyers of sunflower
oil and 39% of buyers of rapeseed oil
also buy virgin/extra virgin olive oil (see
Databook).

That a fifth of people had not bought edible


oil or solid fat/oil partly reflects the fact
that the question asked about buying in
the last three months. A similar survey in
2016 asking about buying in the last six
months found 15% had not bought (see
Mintel’s Yellow Fats and Edible Oils – UK,
September 2016 Report), indicating that a
small proportion of people are likely to be
buying more infrequently than in the last
three months.

Nearly half of people buy more


than one type

Overlap in the purchasing of edible oils


or solid oil/fat is further demonstrated by
repertoire analysis showing 46% of people
buy more than one type of product.
Base: 2,000 internet users aged 16+
The purchasing of three or more Source: Lightspeed/Mintel
different product types is more common
among 16-34-year-olds and the largest FIGURE 45: NUMBER OF DIFFERENT TYPES OF EDIBLE OILS BOUGHT IN
households. It is much less common LAST 3 MONTHS, JULY 2017
among one-person households, which is
likely to reflect less cooking going on in
these homes.

59% of those buying three or more types


of edible oils look for versatility when
buying edible oils compared to the average
response of 46%, so edible oils putting an
emphasis on versatility can look to appeal
to these important buyers who are also
more likely than average to buy quality oil
or salad dressings, and to pay more for
certain products (see Databook).

Base: 2,000 internet users aged 16+


Source: Lightspeed/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 61

Vegetable, olive and sunflower oils olive oil good for dressings or drizzling. Sales of coconut fat/oil have been growing
dominate In olive oils, virgin/extra virgin olive oil is strongly on the back of the popularity
purchased most widely. It is a lot more of coconut as an ingredient, but are still
In edible oils, vegetable/rapeseed oils popular than standard olive oil, despite its only bought by 7% of people. While it still
and olive oils are each bought by around higher price. has strong potential for further growth in
four in 10 people, while a third of people sales given the increase in recent product
buy sunflower oil. These products clearly Solid oils/fats are used by less than a listings, recent media coverage about the
dominate the edible oils market, with other fifth of people, which reflects their long- saturated fat content of coconut oil could
oils and solid oils/fats bought by much term decline and perceptions of them undermine its image as a healthy choice.
smaller percentages of people. Some of being unhealthy in terms of saturated fat
these oils that dominate will be better for content. Spray cooking oils are bought by
some uses than others though. just 11% of people and have room to grow
sales through a focus on promoting being
Vegetable oil (including rapeseed oil), for a healthier and more economical way of
example, is good for frying/roasting and frying food through using less oil.

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 62

Factors Influencing Choice of


Butter/Spread

Being spreadable from fridge and FIGURE 46: FACTORS INFLUENCING CHOICE OF BUTTER/SPREAD FOR
favourite taste most important SPREADING, JULY 2017

The convenience of being able to spread “Which factors are most important in influencing what butter/spread you buy for
from the fridge is the joint most important spreading on toast, sandwiches etc? Please select up to 5.”
factor, influencing 45% of purchases of
butter or spread for spreading on toast,
sandwiches, etc. The butter being hard
is clearly a major frustration. This is
confirmed by the popularity of spreadable
over block butter. Spreadable versions are
therefore a must have for brands in butter
and spreads, linking to the Mintel Trend,
FSTR HYPR, that talks about saving time
and highlighting the time it takes to use
products.

Being a favourite taste is similarly


important (43%), while price stands
close behind in swaying choice in this
fragmented market. 22% put being both
spreadable from the fridge and their Base: 1,842 internet users aged 16+ who have bought butter/spread in the last 3 months
favourite taste as most important in Source: Lightspeed/Mintel
influencing their choice (see Databook).
It is particularly important to over-45s,
a segment of the population growing in making this nearly as important as low and in marketing can appeal. Emphasising
numbers. price in choice of product for spreading products having no artificial ingredients
(just 12% look for both). links to the Mintel Trend, Bannedwagon,
With the vast majority of brands having a that discusses how people are focusing
spreadable version of their product, taste Lower fat content is clearly a major selling on labels, ingredients and production
is therefore the most important point of point over butter for various spreads on methods.
differentiation. Taste testing in retail outlets the market. Responses are similar for all
can therefore play an important role in age groups for low fat and low saturated- This is most important to buyers of block
encouraging shoppers to buy one product fat, apart from among over-55s who attach butter, which naturally contains only milk
over another. This links to the Mintel Trend, more importance to being low in saturated and salt, but also buyers of olive spreads
Prove It, that discusses how consumers fat. This is in line with their greater and cholesterol-lowering spreads that are
are expecting proof before purchase. concerns about saturated fat in their diet less likely to have all-natural ingredients.
(see Mintel’s Attitudes towards Sugar and Marketing messages can maximise
Being lower in fat also an Sweeteners – UK, January 2017 Report). appeal therefore, by talking about both
important consideration naturalness and health benefits.
No artificial ingredients another
Being low in fat or low in saturated fat both selling point Clover is one brand in spreads that
influence the choice of butter or spreads promotes ‘Absolutely no artificial
for spreading for a quarter of people. More than a fifth of people (22%) attach a ingredients’ to tap into consumer interest
Overall, either being low fat or low in high importance to butter or spreads not in ‘naturalness’, while Flora and Lupak are
saturated fat is an important consideration containing artificial ingredients, showing also making this a bigger focus of their
for 38% of buyers of butter or spreads, how promoting this attribute on packaging campaigns.

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 63

Usage and Buying Behaviour


Less frying and buying of bread bad how cooking methods have been changing and spreads are mainly used on bread
for market over the years and are continuing to products and four in 10 buyers are buying
change. These older people are more less bread than a few years ago.
The fact that six in 10 buyers say that they likely to have fried more food in the past,
fry less food than a few years ago will be while younger groups are less likely to This has been reflected in declining bread
having a negative impact on the edible oils have established these habits in the first sales, which in turn impacts on sales of
and cooking fats sectors of the market. place, having more of a taste for less butter and spreads. Brands in spreads
This is a continuation of a long-term trend traditional meals. therefore have scope to encourage a
away from meals that involve frying food, return to sandwiches through promoting
including having fewer fried breakfasts. Changing breakfast habits have also more exciting fillings. The income
It means brands and retailers need to meant less bread being eaten, as have squeeze in 2017 could also help
promote other uses for edible oils. other trends outside breakfast such as encourage a return to people making up
fewer packed lunches in favour of buying packed lunches to take to work in order to
Over-55s are particularly likely to be frying lunch out of home, and lunches that save money.
less food than a few years ago, reflecting include items other than bread. Butter

FIGURE 47: USAGE AND BUYING BEHAVIOUR IN RELATION TO YELLOW FATS AND EDIBLE OILS, JULY 2017

“Do the following apply to you?”

Base: 1,890 internet users aged 16+ who have bought butter, spread, oil or fat in the last 3 months
^ shown to 1,344 internet users aged 16+ who have bought spread in the last 3 months
^^ shown to 1,550 internet users aged 16+ who have bought edible oils in the last 3 months
Source: Lightspeed/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 64

Has the home baking bubble burst? annual boost to home baking sales and its Given the trend away from frying food,
move to commercial television on Channel encouraging usage for dressings or
Yellow fats also look to be suffering 4 provides marketing opportunities for drizzling offers significant scope for
from an end to the home baking boom. brands with an interest in home baking. increasing sales. This can help sales of
More than four in 10 people say they are premium products, including small bottles
baking less at home compared to a few Meeting demand for versatility of oils with flavour infusions that appeal to
years ago. Sales of various baking items, and quality in edible oils 41% of people.
such as cake coverings and decorating
products, dried fruits, sugar and flour, have When it comes to edible oils, nearly half Nutritional information and the list of
been in decline and yellow fats are a main of buyers of butter, spreads and oils are ingredients are each checked by nearly
baking ingredient. looking for versatility from a product. half of buyers of spreads. This suggests
Edible oils should therefore make a large proportion of consumers are
The income squeeze could potentially information about what different edible oils concerned about what ingredients are
provide a boost to home baking though, can be used for prominent on packaging contained in spreads and are seeking
not because home baking actually saves a or in in-store promotional materials to reassurance from brands. Those checking
lot of money, but more because it provides maximise their appeal. Marketing could put ingredients and nutritional information
a cheap form of entertainment when a bigger focus on demonstrating different are mostly the same people, with 84% of
people are cutting back on going out. uses for oils, tapping into the Mintel Trend, those who check the former also checking
Prove It, that discusses how consumers nutritional information on packaging (see
Featuring home baking as a fun and are looking for proof before purchase. Databook).
cheap activity therefore provides brands
in yellow fats with another angle for There is also room, though, to put an
promoting product usage. The popularity emphasis on quality if edible oils are for
of The Great British Bake Off provides an salad dressings or drizzling on foods.

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 65

Product Attributes Most Likely to


Add Value
Three in 10 would pay more to FIGURE 48: PRODUCT ATTRIBUTES WORTH PAYING MORE FOR, JULY 2017
support British farmers
“Which would you pay more for when buying butter/spread/oils/fats? Please
Nearly three in 10 buyers of butter, select all that apply.”
spreads and oils would pay more for
products supporting British farmers,
exemplifying the Mintel Trend, Moral
Brands, of consumers looking to
manufacturers to do green and ethical
work for them.

The percentage of buyers who would


pay more for products supporting British
farmers is higher than the 15% of
buyers who put being made from British
ingredients among the most important
factors influencing their choice of butter
or spread for spreading. It is a sign that
shoppers’ concern for British farmers and
local sourcing only goes so far: people
may think it is worth paying a premium for
British products, but only if the taste or Base: 1,890 internet users aged 16+ who have bought butter, spread, oil or fat in the last 3 months
spreadability is up to standard. Source: Lightspeed/Mintel

The gap between the two statistics also


suggests that focussing on farmers rather support for farmers is 57% of milk/cream these, though. Organic products, which
than just Britishness is likely to have users/buyers being more likely to buy from still account for a relatively small share
more resonance among potential buyers. a brand or supermarket that spells out on- of sales in butter but are growing, could
Supporting British farmers is clearly more pack how it supports its farmers (see Mintel’s therefore benefit from talking about
emotive than just British provenance Added Value in Dairy Drinks, Milk and animal welfare specifics such as free
and telling a story of farmers in particular Cream – UK, May 2017 Report). grazing cows or rapeseed crops or olives
regions and spelling out the brand or grown without pesticides to promote
retailer’s support for them offers scope to Higher animal welfare standards wildlife.
increase product appeal. 44% of people can also add value
agree that the regional origin of a product Being organic is most likely to encourage
increases its appeal. Support for British Just under a fifth of buyers of butter, 16-34-year-olds to pay more for butter,
farmers appeals particularly to the over- spreads, oil or fat would pay more for an spreads, oils or fats, as well as households
55s who are growing in numbers. organic product and the same proportion with the highest incomes and those with
more for a product that guaranteed higher children aged under-five. This suggests
Morrisons has a ‘For Farmers’ range that animal welfare. paying more for products because they
includes salted and unsalted butter where 15 are organic is partly about affordability and
pence from the sales of a 250g pack goes There is only a little overlap between partly about perceptions of what is better
to farmers. Further emphasising interest in those willing to pay more for each of for you or the environment.

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 66

Health benefits justify a price talks about how consumers are learning claims that are seen on products such as
premium for a fifth of buyers new ways to nudge themselves towards Flora ProActiv can therefore help provide a
better habits. boost to value sales of spreads.
Just over a fifth of buyers of butter,
spreads, oils and fats (22%) would pay Those buying cholesterol-lowering Edible oils need to encourage increased
more for products making health claims. spreads are the most likely to pay more usage away from frying, so oils with health
Such claims include products promoting for products making health claims (44%), benefits such as providing omega oils or
the lowering of cholesterol in diets and the while those buying olive and sunflower essential vitamins could help encourage
inclusion of particular vitamins or omega spreads and spreads made from other more usage of oils as dressings, and for
oils to benefit health. This links to the oils are also more willing to pay more drizzling on meat, fish, vegetables, pizzas
Mintel Trend, Help Me Help Myself, which for products making health claims. Such and pasta.

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 67

Attitudes towards Butter, Spreads


and Edible Oils
Details of regional origin can FIGURE 49: ATTITUDES TOWARDS BUTTER/SPREADS AND EDIBLE OILS, JULY
increase appeal 2017

Provenance in terms of coming from a “Do you agree or disagree with the following?”
particular region increases a product’s
appeal for 44% of people and offers scope
for adding a point of differentiation that
goes beyond just promoting butter as
British. This links to the Mintel Trend, The
Real Thing, that discusses how consumers
are craving products that come with a
stamp of authenticity. As with British
ingredients and support for British farmers,
this has the most appeal to over-65s who
are increasing in numbers.

In olive oils, regional origin could also be


promoted more. Many oils say they use
olives of European Union origin or list a
number of counties where the olive oil is
sourced. Some olive oils, though, make
reference to particular regions or feature
PDO (Protected Designation of Origin)
and the PGI (Protected Geographical Base: 2,000 internet users aged 16+
Indication) logos and these can help Source: Lightspeed/Mintel
justify a higher price through a focus on
authenticity and traditional production. 
added flavours appeal to 41% and 36% of command a price premium. However, only
There is also scope to adopt this approach people respectively. Such products are a 13% of buyers would pay more for oils with
outside olive oils. Some producers have good way of encouraging experimentation flavour infusions. Ideas for using oils with
experimented with featuring regional as they reduce the risk of buying a product different flavour infusions would help to
origins of, for example, rape seed oil, but people might find they do not like, but also encourage sales.
it is still a relatively uncommon product can look to add more variety to meals and
claim. Stressing regionality is one way snacks eaten at home. More flavours links Flavoured butters or spreads in small
to lift these oils out of the commodity to the Mintel Trend, Sense of the Intense, packs that go beyond garlic butter also
category, and to support premium pricing. that looks at how sensory experiences give offer scope for increasing usage both on
products more meaning. breads to heat in the oven or on toast,
Small bottles or packs can as well as to add flavour to main meals,
encourage experimentation Smaller bottles of oils with flavour infusions including on meat, fish and vegetable
appeal most to women and 16-34-year- dishes.
Oils with flavour infusions in small bottles olds and more affluent groups, the latter
and smaller packs of butter/spreads with suggesting such products have potential to

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 68

Perceptions of Different Types of


Edible Oils
Olive oil seen as the most healthy FIGURE 50: CORRESPONDENCE ANALYSIS: PERCEPTIONS OF DIFFERENT
edible oil TYPES OF EDIBLE OILS, JULY 2017

Correspondence analysis is a way of “Which of the following do you associate with each type of oil?”
identifying the attributes most closely
associated with a particular product or
brand. For this report, Mintel put the
following question to respondents, and
then presented them with a list of possible
attributes. The chart below shows how
closely each oil is associated with these
attributes. A close association does not
necessarily mean that the oil in question
was the most highly ranked on that
score across all the listed oils. Instead,
it illustrates the qualities that most stand
out for that particular oil (avocado oil, for
example, achieved relatively low response
rates across all the listed qualities, but
those people who did have an opinion on
the oil were particularly likely to describe it
as “trendy” or “expensive”).

Base: 2,000 internet users aged 16+


Source: Lightspeed/Mintel

FIGURE 51: PERCEPTIONS OF DIFFERENT EDIBLE OILS, JULY 2017

Olive oil Sunflower oil Rapeseed oil Coconut oil Avocado oil
% % % % %

Healthy 47 25 25 26 19
Flavoursome 20 8 10 15 11
Bland 3 12 6 4 3
Versatile 26 28 17 10 5
Pure 32 15 16 17 10
Expensive 25 4 12 25 25
Worth paying more for 17 4 6 7 5
Trendy 12 5 15 33 24
Old-fashioned 7 11 3 2 1
Low in saturated fat 19 20 16 10 7
None of these 12 22 34 27 42
Base: 2,000 internet users aged 16+
Source: Lightspeed/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 69

Being seen as healthy and pure the lower in saturated fat than olive oil) are to coconut being an on-trend ingredient.
key strengths of olive oil other relatively strong associations, which This is reflected by a third of people
both increase among buyers. It is more perceiving coconut oil to be a ‘trendy’
The qualities most closely associated with likely to be seen as old-fashioned though, ingredient, the strongest association for
olive oil are “healthy” and “pure”, and it suggesting it might be in need of being this type of oil.
is also seen as more flavoursome and promoted more as a versatile and healthy
worth paying more for than other oils. option both in oils and as a main ingredient It also has a relatively strong association
These associations increase significantly in spreads. with being healthy, rising to 58% of
among buyers of olive oil. For example, buyers of coconut fat/oil and 33% of 16-
62% of buyers of virgin/extra virgin olive Lack of awareness of attributes of 34s, despite being high in saturated fat
oil associate it with being healthy and 41% rapeseed and avocado oils compared to other types of oil. Buyers are
pure. also more likely to see it as pure, indicating
What stands out about rapeseed oil and that being healthy, trendy and pure are
These positive consumer perceptions of avocado oil is a lack of awareness about the biggest drivers of purchasing. Along
olive oil, which has long been known for these types of oils, with more than four in with olive oil and avocado oil, a quarter of
its many health benefits and is seen as an 10 and a third of people respectively not people perceive it to be expensive.
essential part of the healthy Mediterranean associating them with any of the listed
diet, are important in driving sales given attributes. This is unsurprising for avocado Methodology
consumer interest in eating healthily. oil, which is a more niche oil, but rapeseed
Further scope exists, though, for promoting oil has been a main part of the oils market Correspondence analysis is a statistical
the benefits of olive oil and olive spreads for a long time, although until more visualisation method for picturing the
to diet, especially given that only 19% of recently under the guise of vegetable oil. associations between rows (image,
people currently associate it with being low attitudes) and columns (brands, products,
in saturated fat. Recently, more cold-pressed rapeseed oils segments, etc) of a two-way contingency
have become available that should help table. It is generally used to display
Versatility biggest strength for build awareness, but there is clearly scope information in a complex crosstab (eg
sunflower oil for retailers to shout about the credentials attitudes related to a certain product
of rapeseed oil more strongly to support or images consumers associate with
Being light, imparting no flavour and this increased presence on supermarket a brand) in a joint space that is easy
having a high smoke point are key shelves. Currently, it is seen as healthy to understand by simply interpreting
strengths of sunflower oil and this helps by a quarter of people, rising to 53% of proximities. The significance of the
to drive consumer perceptions that it is a rapeseed oil buyers and 31% of over-55s, relationship between a brand or product
versatile oil for cooking. It is the oil least but little else stands out. for instance and its associated image
likely to be seen as flavoursome, but this is is measured using the Chi-square test.
a positive if people are looking for oil that Coconut oil seen as a ‘trendy’ If two objects have similar response
does not leave a flavour on the food being choice patterns regarding their perceived
cooked. images/attitudes, they are assigned
The number of new product launches in similar scores on underlying dimensions
After being versatile, being healthy and oils and spreads featuring coconut has and will then be displayed close to each
low in saturated fat (it is in fact slightly increased significantly since 2014 due other in the perceptual map.

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APPENDIX

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 71

Data Sources, Abbreviations and


Supporting Information

Value figures throughout this report are at RSP (retail selling Consumer research methodology
prices) and include VAT (value added tax) unless stated
otherwise. Market sizes at constant 2017 prices are devised using Mintel commissioned consumer research for this report to assess
Mintel’s food deflator. buying and usage of yellow fats and edible oils. Research was
carried out by Lightspeed among 2,000 internet users aged
Crown copyright material is reproduced with the permission of 16+ in July 2017 2015. Detailed demographics are given in the
the Controller of Her Majesty’s Stationery Office and the Queen’s Databook.
Printer for Scotland.

Abbreviations

EU European Union
EVOO Extra Virgin Olive Oil
Global New Products Database. For further details,
GNPD
please contact Mintel on 020 7606 4533
IRI Information Resources, Inc.
NAI Nielsen Ad Intel
NPD New product development
PDO Protected Designation of Origin
PGI Protected Geographical Indication
RSP Retail selling prices
VAT Value Added Tax

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 72

Market Size and Forecast


Forecast methodology Next to historical market sizes and a current year estimate, the
fan chart illustrates the probability of various outcomes for the
Mintel has produced this forecast based on an advanced market value and volume of yellow fats and edible oils over the
statistical technique known as ‘multivariate time series auto- next five years.
regression’ using the statistical software package SPSS.
The future uncertainty within this market is illustrated by the
The model, based on historical market size data taken from coloured bands around the five-year forecast. The widening
Mintel’s own market size database and supplemented by macro- bands successively show the developments that occur within
and socio-economic data sourced from credible organisations 95%, 90%, 70% and 50% probability intervals. Statistical
(eg Office for National Statistics, HM Treasury, Bank of England), processes predict the central forecast to fall within the darker
searches for relationships between actual market sizes and shaded area which illustrates 50% probability, ie a five in 10
a selection of key economic and demographic determinants chance.
(independent variables) in order to identify those predictors
having the most influence on the market. At a 95% confidence interval, we are saying that 95 out of 100
times, the forecast will fall within these outer limits, which we
For the market, factors identified to have the most influence on call the best- and worst-case forecast as these, based on the
the market were the population aged 18-24 (value) and working statistically driven forecast, are the highest (best-case) and lowest
age population (volume) for butter; population aged 20-39 (value) (worst-case) market sizes the market is expected to achieve.
and population 25-34 (volume) for spreads; and exchange rate
(value) and working age population (volume) for edible oils.

FIGURE 52: BEST- AND WORST-CASE FORECAST OF TOTAL UK RETAIL VALUE SALES OF YELLOW FATS AND EDIBLE
OILS, 2012-22

Worst-case % annual Mintel % annual Best-case % annual


Index Index Index
forecast change forecast change forecast change
£m £m £m

2017 (est) 1,534 100 +2.2 1,534 100 +2.2 1,534 100 +2.2
2018 (fore) 1,327 86 -13.5 1,526 100 -0.5 1,726 113 +12.5
2019 (fore) 1,331 87 +0.3 1,559 102 +2.2 1,788 117 +3.6
2020 (fore) 1,347 88 +1.2 1,597 104 +2.4 1,847 120 +3.3
2021 (fore) 1,383 90 +2.7 1,644 107 +3.0 1,919 125 +3.9
2022 (fore) 1,410 92 +1.9 1,673 109 +1.8 1,967 128 +2.5
Source: based on IRI/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 73

FIGURE 53: BEST- AND WORST-CASE FORECAST OF UK RETAIL VOLUME SALES OF BUTTER, 2012-22

Source: based on IRI/Mintel

FIGURE 54: BEST- AND WORST-CASE FORECAST OF TOTAL UK RETAIL VALUE SALES OF BUTTER, 2012-22

Worst-case % annual Mintel % annual Best-case % annual


Index Index Index
forecast change forecast change forecast change
£m £m £m

2017 (est) 789 100 +7.1 789 100 +7.1 789 100 +7.1
2018 (fore) 747 95 -5.3 805 102 +2.0 862 109 +9.2
2019 (fore) 769 97 +2.8 845 107 +5.0 922 117 +7.0
2020 (fore) 781 99 +1.7 877 111 +3.8 973 123 +5.6
2021 (fore) 794 101 +1.6 908 115 +3.5 1,021 129 +4.9
2022 (fore) 802 102 +1.0 928 118 +2.2 1,054 134 +3.2
Source: based on IRI/Mintel

FIGURE 55: BEST- AND WORST-CASE FORECAST OF TOTAL UK RETAIL VOLUME SALES OF BUTTER, 2012-22

Worst-case % annual Mintel % annual Best-case % annual


Index Index Index
forecast change forecast change forecast change
m kg m kg m kg

2017 (est) 154 100 -1.9 154 100 -1.9 154 100 -1.9
2018 (fore) 146 95 -5.1 158 102 +2.3 169 110 +9.8
2019 (fore) 146 95 -0.1 159 103 +0.9 171 111 +0.9
2020 (fore) 148 96 +1.1 161 104 +1.0 174 113 +1.6
2021 (fore) 149 96 +0.7 162 105 +0.9 176 114 +1.2
2022 (fore) 150 97 +0.9 164 106 +1.2 178 115 +1.3
Source: based on IRI/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 74

FIGURE 56: BEST- AND WORST-CASE FORECAST OF UK RETAIL VOLUME SALES OF SPREADS, 2012-22

Source: based on IRI/Mintel

FIGURE 57: BEST- AND WORST-CASE FORECAST OF TOTAL UK RETAIL VALUE SALES OF SPREADS, 2012-22

Worst-case % annual Mintel % annual Best-case % annual


Index Index Index
forecast change forecast change forecast change
£m £m £m

2017 (est) 362 100 -6.7 362 100 -6.7 362 100 -6.7
2018 (fore) 213 59 -41.0 333 92 -8.1 452 125 +24.8
2019 (fore) 199 55 -6.8 322 89 -3.3 444 123 -1.6
2020 (fore) 208 57 +4.3 328 91 +2.1 449 124 +1.1
2021 (fore) 224 62 +8.1 335 93 +2.0 459 127 +2.2
2022 (fore) 245 68 +9.0 343 95 +2.4 472 130 +2.7
Source: based on IRI/Mintel

FIGURE 58: BEST- AND WORST-CASE FORECAST OF TOTAL UK RETAIL VOLUME SALES OF SPREADS, 2012-22

Worst-case % annual Mintel % annual Best-case % annual


Index Index Index
forecast change forecast change forecast change
m kg m kg m kg

2017 (est) 139 100 -6.1 139 100 -6.1 139 100 -6.1
2018 (fore) 117 84 -15.8 132 95 -5.3 146 105 +5.2
2019 (fore) 109 79 -6.7 124 89 -5.9 138 100 -5.3
2020 (fore) 108 78 -1.3 122 88 -1.1 137 99 -1.0
2021 (fore) 107 77 -0.7 122 87 -0.7 136 98 -0.6
2022 (fore) 106 76 -0.9 121 87 -0.8 135 97 -0.7
Source: based on IRI/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 75

FIGURE 59: BEST- AND WORST-CASE FORECAST OF UK RETAIL VOLUME SALES OF EDIBLE OILS, 2012-22

Source: based on IRI/Mintel

FIGURE 60: BEST- AND WORST-CASE FORECAST OF TOTAL UK RETAIL VALUE SALES OF EDIBLE OILS, 2012-22

Worst-case % annual Mintel % annual Best-case % annual


Index Index Index
forecast change forecast change forecast change
£m £m £m

2017 (est) 383 100 +1.9 383 100 +1.9 383 100 +1.9
2018 (fore) 366 96 -4.5 389 102 +1.7 413 108 +7.9
2019 (fore) 363 95 -0.7 393 103 +0.8 422 110 +2.2
2020 (fore) 358 94 -1.4 391 102 -0.4 424 111 +0.5
2021 (fore) 365 95 +1.9 402 105 +2.6 438 114 +3.3
2022 (fore) 363 95 -0.5 402 105 +0.2 441 115 +0.7
Source: based on IRI/Mintel

FIGURE 61: BEST- AND WORST-CASE FORECAST OF TOTAL UK RETAIL VOLUME SALES OF EDIBLE OILS, 2012-22

Worst-case % annual Mintel % annual Best-case % annual


Index Index Index
forecast change forecast change forecast change
m litres m litres m litres

2017 (est) 165 100 -1.2 165 100 -1.2 165 100 -1.2
2018 (fore) 157 95 -4.7 163 99 -1.0 170 103 +2.8
2019 (fore) 156 94 -1.0 162 98 -1.0 168 102 -0.9
2020 (fore) 154 93 -1.2 160 97 -1.1 166 101 -1.1
2021 (fore) 152 92 -1.0 159 96 -0.9 165 100 -0.9
2022 (fore) 151 91 -1.1 157 95 -1.1 163 99 -1.0
Source: based on IRI/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 76

Market Share
FIGURE 62: LEADING BRANDS’ SALES AND SHARES IN THE UK RETAIL BUTTER MARKET, BY VALUE AND VOLUME,
2015/16-2016/17

Value 2014/16* % 2016/17** % % change 2015/16-2016/17


£m £m

Lurpak (Arla Foods UK) 301 42 306 40 +1.7


Anchor (Arla Foods UK) 99 14 98 13 -1.0
Country Life (Dairy Crest) 58 8 57 8 -1.7
Kerrygold (Ornua Foods UK) 23 3 25 3 +8.7
President (Lactalis Nestlé) 10 1 10 1 -
Yeo Valley (Yeo Valley Family Farms) 7 1 7 1 -
Willow (Dairy Crest) 6 1 7 1 +16.7
Graham’s (Graham’s Family Dairy) 4 1 4 1 -
Meadow Churn (Fayrefield Foods) 2 <0.5 2 <0.5 -
Other 19 3 21 3 +10.5
Own-label 191 27 223 29 +16.8

Total 721 100 760 100 +5.4

Volume 2015/16* % 2016/17** % % change 2015/16-2016/17


m kg m kg

Lurpak (Arla Foods UK) 58 38 58 38 -


Anchor (Arla Foods UK) 20 13 19 12 -5.0
Country Life (Dairy Crest) 13 9 12 8 -7.7
Kerrygold (Ornua Foods UK) 4 3 4 3 -
President (Lactalis Nestlé) 2 1 2 1 -
Yeo Valley (Yeo Valley Family Farms) 1 1 1 1 -
Willow (Dairy Crest) 2 1 2 1 -
Graham’s (Graham’s Family Dairy) 1 1 1 1 -
Meadow Churn (Fayrefield Foods) 1 1 1 1 -
Other 3 2 3 2 -
Own-label 48 32 51 33 +6.3

Total 151 100 154 100 +2.0


* 52 weeks ending 23 April 2016
* 52 weeks ending 22 April 2017
Note: data may not sum due to rounding
Source: based on IRI/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 77

FIGURE 63: LEADING MANUFACTURERS’ SALES AND SHARES IN THE UK RETAIL BUTTER MARKET, BY VALUE AND
VOLUME, 2015/16-2016/17

Value 2015/16* % 2016/17** % % change 2015/16-2016/17


£m £m

Arla Foods UK 400 55 404 53 +1.0


Dairy Crest Ltd 64 9 63 8 -1.6
Ornua Foods UK 23 3 25 3 +8.7
Lactalis Nestlé 11 2 12 2 +9.1
Yeo Valley Family Farms 7 1 7 1 -
Graham’s Family Dairy 4 1 4 1 -
Fayrefield Foods 3 <0.5 3 <0.5 -
St Helen’s Farm Dairy 2 <0.5 2 <0.5 -
Trewithen Dairy 1 <0.5 2 <0.5 -
Other 14 2 15 2 +7.1
Own-label 191 27 223 29 +16.8

Total 721 100 760 100 +5.4

Volume 2015/16* % 2016/17** % % change 2015/16-2016/17


m kg m kg

Arla Foods UK 78 52 77 50 -1.3


Dairy Crest Ltd 15 10 14 9 -6.7
Ornua Foods UK 4 3 4 3 -
Lactalis Nestlé 2 1 2 1 -
Yeo Valley Family Farms 1 1 1 1 -
Graham’s Family Dairy 1 1 1 1 -
Fayrefield Foods 1 1 1 1 -
St Helen’s Farm Dairy <0.5 <0.5 <0.5 <0.5 -
Trewithen Dairy <0.5 <0.5 <0.5 <0.5 -
Other 2 1 2 1 -
Own-label 48 32 51 33 +6.3

Total 151 100 154 100 +2.0


* 52 weeks ending 23 April 2016
* 52 weeks ending 22 April 2017
Note: data may not sum due to rounding
Source: based on IRI/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 78

FIGURE 64: LEADING BRANDS’ SALES AND SHARES IN THE UK RETAIL MARGARINE AND SPREADS MARKET, BY
VALUE AND VOLUME, 2015/16-2016/17

Value 2014/16* % 2016/17** % % change 2015/16-2016/17


£m £m

Flora (Unilever) 138 33 124 33 -10.1


Clover (Dairy Crest) 75 18 69 18 -8.0
Bertolli (Unilever) 44 11 40 11 -9.1
I Can’t Believe (Unilever) 45 11 31 8 +8.2
Utterly Butterly (Dairy Crest) 17 4 19 5 +11.8
Benecol (Raisio) 17 4 16 4 -5.9
Pure (Kerry Foods) 6 1 6 2 -
Vitalite (Dairy Crest) 4 1 5 1 +25.0
Just Like Butter (JDS Foods) 3 1 3 1 -
Other 3 1 3 8 -
Own-label 60 15 62 16 +3.3

Total 412 100 378 100 -8.3

Volume 2015/16* % 2016/17** % % change 2015/16-2016/17


m kg m kg

Flora (Unilever) 46 30 42 29 -8.7


Clover (Dairy Crest) 30 19 28 19 -6.7
Bertolli (Unilever) 15 10 14 10 -6.7
I Can’t Believe (Unilever) 20 13 14 10 -30.0
Utterly Butterly (Dairy Crest) 7 5 8 6 +14.3
Benecol (Raisio) 3 2 3 1 -
Pure (Kerry Foods) 2 1 2 1 -
Vitalite (Dairy Crest) 2 1 2 1 -
Just Like Butter (JDS Foods) 3 2 2 1 -33.3
Other 1 1 1 1 -
Own-label 28 18 28 19 -

Total 155 100 144 100 -7.1


* 52 weeks ending 23 April 2016
* 52 weeks ending 22 April 2017
Note: data may not sum due to rounding
Source: based on IRI/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 79

FIGURE 65: LEADING MANUFACTURERS’ SALES AND SHARES IN THE UK RETAIL MARGARINE AND SPREADS
MARKET, BY VALUE AND VOLUME, 2015/16-2016/17

Value 2015/16* % 2016/17** % % change 2015/16-2016/17


£m £m

Unilever 227 55 195 52 -14.1


Dairy Crest Ltd 96 23 93 25 -3.1
Raisio 17 4 16 4 -5.9
Kerry Group plc 7 2 6 2 -14.3
Central Supplies 3 1 3 1 -
Arla Foods UK 1 <0.5 1 <0.5 -
Other <0.5 <0.5 <0.5 <0.5 -
Own-label 60 16 62 17 +3.3

Total 412 100 378 100 -8.3

Volume 2015/16* % 2016/17** % % change 2015/16-2016/17


m kg m kg

Unilever 81 52 70 48 -13.6
Dairy Crest Ltd 39 25 39 27 -
Raisio 3 2 3 2 -
Kerry Group plc 3 2 2 1 -33.3
Central Supplies 3 2 2 1 -33.3
Arla Foods UK <0.5 <0.5 <0.5 <0.5 -
Other <0.5 <0.5 <0.5 <0.5 -
Own-label 28 18 28 19 -

Total 155 100 144 100 -7.1


* 52 weeks ending 23 April 2016
* 52 weeks ending 22 April 2017
Note: data may not sum due to rounding
Source: based on IRI/Mintel

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YELLOW FATS AND EDIBLE OILS, UK - SEPTEMBER 2017 80

FIGURE 66: LEADING BRANDS’ SALES AND SHARES IN THE UK RETAIL COOKING FATS MARKET, BY VALUE AND
VOLUME, 2015/16-2016/17

Value 2014/16* % 2016/17** % % change 2015/16-2016/17


£m £m

Stork (Unilever) 33 76 29 76 -12.1


Other 3 7 2 5 -33.3
Own-label 7 16 7 18 -

Total 43 100 38 100 -11.6

Volume 2015/16* % 2016/17** % % change 2015/16-2016/17


m kg m kg

Stork (Unilever) 15 79 13 76 -13.3


Other 1 5 1 6 -
Own-label 4 21 4 24 -

Total 19 100 17 100 -10.5


* 52 weeks ending 23 April 2016
* 52 weeks ending 22 April 2017
Note: data may not sum due to rounding
Source: based on IRI/Mintel

FIGURE 67: LEADING MANUFACTURERS’ SALES AND SHARES IN THE UK RETAIL COOKING FATS MARKET, BY VALUE
AND VOLUME, 2015/16-2016/17

Value 2015/16* % 2016/17** % % change 2015/16-2016/17


£m £m

Unilever 35 81 31 79 -11.4
Other 1 2 <0.5 <0.5 -
Own-label 7 16 7 18 -

Total 43 100 38 100 -11.6

Volume 2015/16* % 2016/17** % % change 2015/16-2016/17


m kg m kg

Unilever 15 79 13 76 -13.3
Other <0.5 <0.5 <0.5 <0.5 -
Own-label 4 21 4 24 -

Total 19 100 17 100 -10.5


* 52 weeks ending 23 April 2016
* 52 weeks ending 22 April 2017
Note: data may not sum due to rounding
Source: based on IRI/Mintel

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RESEARCH
METHODOLOGY

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UK RESEARCH METHODOLOGY 82

UK Research Methodology
Mintel is an independent market analysis Sampling and weighting for, job actually done, job title/rank/grade,
company that prides itself on supplying and whether the chief income earner is
objective information on a whole range of Face to Face Surveys self-employed. Additionally, questions are
markets and marketing issues. asked about the number of people working
Ipsos Mori at the place of employment and whether
There are six main sources of research the chief income earner is responsible
that are used in the compilation of Mintel Ipsos MORI Capibus uses a two-stage for anyone, together with confirmation
reports: random location sample design which of qualifications. Once the interviewer is
generates a very high quality sample satisfied that sufficient information has
• Consumer research representative of the Great Britain adult been gathered in order to determine social
population. Interviews are conducted grade, their estimate is recorded and
• Brand & social media research via c170-180 sampling points, randomly this is later double checked for accuracy
selected every week, and CACI ACORN by experts in social grading coding at
• Desk research is employed to set interlocking quota Ipsos MORI when it can be amended if
controls specific to each interviewer necessary.
• Trade research location. This ensures consistent accurate
representation of the locations interviewed Online Surveys
• Statistical forecasting every week. By using this proven sample
design, all sub-sectors of the population Lightspeed
• Mintel’s exclusive archive of over are represented – at a national and
40 years of analysis and expertise. regional level. Founded in 1999, Lightspeed’s double
opt-in online consumer panel has reach
Mintel reports are written and managed by All information collected on Capibus is to approximately 450,000 consumers in
analysts with experience in the relevant then weighted to reflect the known profile the UK. Lightspeed delivers uniquely
markets. of the adult population in Great Britain. identified online respondents via extensive
Capibus uses a rim weighting system use of fraud detection and location-
Consumer research which weights to mid-2010 census and verification technology at multiple points in
NRS defined profiles for age, social grade, the research cycle, from initial registration
Exclusive and original quantitative region, ethnicity and working status - within through survey fielding and incentive
consumer research is commissioned gender. Additional profiles used include redemption. Lightspeed panellists are
for almost all Mintel reports. In addition, tenure and car in household, for example. profiled on a wide variety of attri¬butes
qualitative research is also undertaken for to deliver the specific hard-to-reach
a large proportion of reports in the form of Because the sampling process is repeated demographics.
online discussion groups. Mintel invests a every week, the Capibus sample is
considerable sum each year in consumer matched wave on wave, making it ideal for To ensure our surveys are nationally
research, and the purchaser of a Mintel taking successive measurements on the representative of internet users, Mintel
report benefits, as the price of an individual same issue. sets quotas for each age group, split by
report is less than the cost of the original gender. Specific quotas for a sample of
research alone. The research brings an Calculation of socio-economic grade in 2,000 adults aged 16+ are shown below:
up-to-date and unique insight into topical Ipsos MORI Capibus surveys
issues of importance. Note:- Lightspeed GMI was re-branded as
Socio-economic grade is classified Lightspeed in September 2016
Consumer research is conducted among a according to the occupation of the chief
nationally representative sample of either income earner in the household. A
adults or internet users and is generally number of questions are asked by the
carried out by Lightspeed (online), Ipsos interviewer in order to assign social grade
Mori (face to face), while other suppliers accurately. The interviewer probes the
are used on an ad hoc basis as required. respondent for information about the
The results are only available in Mintel occupation of the chief income earner,
reports. the type of organisation he or she works

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UK RESEARCH METHODOLOGY 83

Age groups by Region % N Repertoire Analysis


% %
gender
Social economic group % N This is used to create consumer groups
based on reported behaviour or attitudes.
16-19 men 3.3 67 Consumer responses of the same value
16-19 women 3.2 64 AB 22.3 446 (or list of values) across a list of survey
C1 30.9 618 items are tallied into a single variable.
C2 20.9 418 The repertoire variable summarises the
20-24 men 4.6 92 number of occurrences in which the value
DE 25.9 518
or values appear among a list of survey
20-24 women 4.5 89
items. For example, a repertoire of brand
Total 100 2,000 purchasing might produce groups of those
that purchase 1-2 brands, 3-4 brands and
25-34 men 9.3 186
5 or more brands. Each subgroup should
25-34 women 9.3 186 Calculation of socio-economic grade in be large enough (ie N=75+) to analyse.
Lightspeed surveys
Cluster Analysis
35-44 men 8.7 174 To calculate panellist’s socio-economic
35-44 women 8.8 177 grade Lightspeed ask a set of screening This technique assigns a set of individual
questions at registration to their panel. people in to groups called clusters on the
These questions include employment basis of one or more question responses,
45-54 men 9.3 186 status and profession (both panellists own so that respondents within the same
and the household’s chief income earner). cluster are in some sense closer or more
45-54 women 9.5 190 Once the panellist has completed these similar to one another than to respondents
initial questions they are invited to take that were grouped into a different cluster.
an additional set of follow-up questions
55-64 men 7.1 141
that allow Lightspeed to further fine tune Correspondence Analysis
55-64 women 7.3 146 their socio-economic grade. Panellists
are required to retake the socio-economic This is a statistical visualisation method for
screening questions once a year to ensure picturing the associations between rows
65+ men 7.3 147 that any changes in circumstance are (image, attitudes) and columns (brands,
accounted for. products, segments, etc.) of a two-way
65+ women 7.8 155
contingency table. It allows us to display
Qualitative Research brand images (and/or consumer attitudes
towards brands) related to each brand
Total 100 2,000
FocusVision Revelation covered in this survey in a joint space that
is easy to understand. The significance
Mintel also sets quotas on region and FocusVision provides Mintel with of the relationship between a brand and
socio-economic group. Specific quotas qualitative bulletin board software its associated image is measured using
for a sample of 2,000 adults aged 16+ are 'Revelation'. This allows the creation of the Chi-square test. If two brands have
shown below: Internet-based, ‘virtual’ venues where similar response patterns regarding their
participants recruited from Mintel’s online perceived images, they are assigned
Region % N surveys gather and engage in interactive, similar scores on underlying dimensions
North East 4.1 83 text-based discussions led by Mintel and will then be displayed close to each
moderators. other in the perceptual map.
North West 11.3 227
Yorkshire & Humberside 8.5 170 Further Analysis CHAID analysis
East Midlands 7.4 148
West Midlands 9.1 182 Mintel employs numerous quantitative CHAID (Chi-squared Automatic Interaction
Greater London 13.7 274 data analysis techniques to enhance the Detection), a type of decision tree analysis,
value of our consumer research. The is used to highlight key target groups in a
South East/East Anglia 23.7 475
techniques used vary form one report to sample by identifying which sub-groups
South West 8.6 173 another. Below describes some of the are more likely to show a particular
Wales 4.9 98 more commonly used techniques. characteristic. This analysis subdivides
Scotland 8.5 170 the sample into a series of subgroups
that share similar characteristics towards
a specific response variable and allows
Total 100 2,000 us to identify which combinations have
the highest response rates for the

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UK RESEARCH METHODOLOGY 84

target variable. It is commonly used to Trade research Department of Trade and Industry. Other
understand and visualise the relationship information is also gathered from store and
between a variable of interest such as Informal exhibition visits across Europe, as well as
“interest in trying a new product” and other using other databases within the Mintel
characteristics of the sample, such as Trade research is undertaken for Group, such as the Global New Product
demographic composition. all reports. This involves contacting Database (GNPD), which monitors FMCG
relevant players in the trade, not only to sales promotions.
Key Driver Analysis gain information concerning their own
operations, but also to obtain explanations All analysts have access to Mintel’s Market
Key driver analysis can be a useful tool and views of the strategic issues pertinent Size and Macroeconomic Databases –
in helping to prioritise focus between to the market being researched. a database containing many areas of
different factors which may impact key consumer spending and retail sales as
performance indicators (eg satisfaction, Formal well as macroeconomic and demographic
likelihood to switch providers, likelihood factors which impinge on consumer
to recommend a brand, etc). Using Internally, Mintel’s analysts undertake spending patterns, going back some 20
correlations analysis or regression analysis extensive trade interviews with selected years.
we can get an understanding of which key experts in the field for the majority of
factors or attributes of a market have reports. The purpose of these interviews The database is used in conjunction with
the strongest association or “link” with a is to assess key issues in the market an SPSS forecasting program which uses
positive performance on key performance place in order to ensure that any research weighted historical correlations of market
indicators (KPIs). Hence, we are able to undertaken takes these into account. dynamics, with independent variables, to
identify which factors or attributes are produce future spending scenarios.
relatively more critical in a market category In addition, using experienced external
compared to others and ensures that researchers, trade research is undertaken Statistical Forecasting
often limited resources can be allocated to for some reports. This takes the form of
focusing on the main market drivers. full trade interview questionnaires and Statistical modelling
direct quotes are included in the report and
Brand & Social Media Research analysed by experts in the field. This gives For the majority of reports, Mintel produces
a valuable insight into a range of trade five-year forecasts based on an advanced
Mintel’s brand research includes more views of topical issues. statistical technique known as ‘multivariate
in-depth knowledge about brands covered time series auto-regression’ using the
in relevant markets. Brands are evaluated Desk research statistical software package SPSS.
on a number of areas including usage,
commitment, dynamism, differentiation, Mintel has an internal team of market Historical market size data feeding into
satisfaction, image, recommendation and analysts who monitor: government each forecast are collated in Mintel’s own
attitudes. When evaluating attitudes, up to statistics, consumer and trade association market size database and supplemented
ten brand attitude statements are selected statistics, manufacturer sponsored reports, by macro- and socio-economic data
and tested, depending on the actual annual company reports and accounts, sourced from organisations such as the
consumer market. directories, press articles from around the Office for National Statistics, HM Treasury,
world and online databases. The latter are the Bank of England and the Economist
To complement its exclusive consumer extracted from hundreds of publications Intelligence Unit.
research, Mintel tracks social media data and websites, both British and overseas.
for inclusion in selected reports. Using All information is cross-referenced for Within the forecasting process, the
Infegy’s Atlas software, Mintel analyses immediate access. model searches for, and analyses
online conversations across a range relationships between, actual market
of social platforms including Twitter, Data from other published sources are the sizes and a selection of key economic and
consumer forums and the wider web. latest available at the time of writing the demographic determinants (independent
report. variables) in order to identify those
Atlas provides rich consumer insight via predictors having the most influence on the
the analysis of commentary posted publicly This information is supplemented by market.
on the internet. The system performs an extensive library of Mintel’s reports
comprehensive and broad collection of produced since 1972 and added to each Factors used in a forecast are stated in
data from millions of internet sources, year by the 500+ reports which are the relevant report section alongside an
working to ensure a faithful and extensive produced annually. interpretation of their role in explaining the
sampling of feedback from the widest development in demand for the product or
range of individuals. The dataset contains In addition to in-house sources, market in question.
commentary posted in real time, as well as researchers also occasionally use outside
a substantial archive dating back to 2007. libraries such as the British Library or the

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UK RESEARCH METHODOLOGY 85

Qualitative insight

At Mintel we understand that historic data


is limited in its capacity to act as the only
force behind the future state of markets.
Thus, rich qualitative insights from industry
experts regarding future events that
might impact upon various markets play
an invaluable role in our post statistical
modeling evaluation process.

As a result, the Mintel forecast


complements a rigorous statistical process
with in-depth market knowledge and actual market size will fall within the purple 15°C is possible but one can’t be 100%
expertise to allow for additional factors or shaded fan. In 5% of all cases this model certain about that fact.
market conditions outside of the capacity might not be correct due to random errors
of the statistical forecast. and the actual market size will fall out of To say the temperature on Saturday will
these boundaries. be between 13°C and 17°C is a broader
The Mintel fan chart statement and much more probable.
Weather analogy
Forecasts of future economic outcomes In general, we can say that based on the
are always subject to uncertainty. In order To illustrate uncertainty in forecasting in existing statistical model, one can be 95%
to raise awareness amongst our clients an everyday example, let us assume the certain that the temperature on Saturday
and to illustrate this uncertainty, Mintel has following weather forecast was produced will be between 13°C and 17°C, and
introduced a new way of displaying market based on the meteorologists’ current respectively 50% certain it will be between
size forecasts in the form of a fan-chart. knowledge of the previous weather about 14.5°C and 15.5°C. Again, only
condition during the last few days, in 5% of all cases this model might not
Next to historical market sizes and a atmospheric observations, incoming be correct due to random errors and the
current year estimate, the fan chart weather fronts etc. actual temperature on Saturday will fall out
illustrates the probability of various of these boundaries and thus will be below
outcomes for the market value/volume Now, how accurate is this forecast 13°C or above 17°C.
over the next five years. and how certain can we be that the
temperature on Saturday will indeed be ( To learn more about uncertainty in
At a 95% confidence interval, we are 15°C? weather forecasts visit: http://research.
saying that 95 out of 100 times the metoffice.gov.uk/research/nwp/ensemble/
forecast will fall within these outer limits, To state that the temperature in central uncertainty.html )
which we call the best and worst case London on Saturday will rise to exactly
forecasts. These, based on the statistically
driven forecast, are the highest (best case)
and lowest (worst case) market sizes the
market is expected to achieve.

Over the next five years, the widening


bands successively show the
developments that occur within 95%,
90%, 70% and 50% probability intervals.
Statistical processes predict the central
forecast to fall within the darker shaded
area which illustrates 50% probability, ie a
5 in 10 chance.

A general conclusion: Based on our


current knowledge of given historic market
size data as well as projections for key
macro- and socio-economic measures
that were used to create the forecast, we
can assume that in 95% of the time the

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