Kantar research on Irish consumers and shopper trends up to 18 March 2012.

1. ROI GROCERY MARKET REVIEW
– Data to 18th March 2012
© Kantar Worldpanel

2. OVERVIEW
Market Overview
• The annual market sales are ahead of last year, with
growth of +0.2% year-on-year.
• Over the shorter term, market value has declined
0.5% as shoppers buy more volume despite price
inflation, and compensate by purchasing on offer
and trading down to cheaper lines.
• Consumers are making more shopping trips, but the
average spend per trip has reduced by 3.7%.
• Private label continues to be important as a method
of reducing spend with a market share at 35.4%.
© Kantar Worldpanel

3. The Irish grocery market is in growth over 52w by just +0.2%. Over 12w, the
grocery market is in decline of -0.5% in comparison to same period last year.
Total Grocery - market value & YoY %chg
€8,946,826 €8,884,903 €8,900,643
€000s
€1,966,316 €1,983,684 €1,973,568
-0.7% +0.2% +0.9% -0.5%
52 w/e 21 52 w/e 20 52 w/e 18 12 w/e 21 12 w/e 20 12 w/e 18
Mar 10 Mar 11 Mar 12 Mar 10 Mar 11 Mar 12
KANTAR WORLDPANEL: DATA TO 18th March 2012
© Kantar Worldpanel

4. Quarterly, the majority of markets falls back while Alcohol has a strong performance
this quarter
12w Total Grocery - sectors value shares & YoY %chg
Share of total trolley
Total Grocery -0.5
Alcohol* 3.6
Ambient Food
28% Fresh & Chilled Healthcare -1.6
Produce Household -4.4
Household 7%
49%
Toiletries -6.5
Frozen 5%
Toiletries 4% Ambient Food -0.9
Healthcare 2% Alcohol 6%
Fresh & Chilled 0.3
Frozen Food 0.0
Total Trolley
-0.5% value
KANTAR WORLDPANEL: DATA TO 18th March 2012
© Kantar Worldpanel

5. Hot Beverages, Fresh Fish and Chilled Drinks have performed best year on year.
12w Total Grocery - value % chg by category
KANTAR WORLDPANEL: DATA TO 18th March 2012
© Kantar Worldpanel

6. Alcohol, Drinks and Snacks have the highest proportion of packs sold on deal.
Staples such as Dairy, Bakery and Canned Goods have lower promotional levels
12w Total Grocery - pack % sold on deal by category
KANTAR WORLDPANEL: DATA TO 18th March 2012
© Kantar Worldpanel

7. 100%
10%
20%
30%
40%
50%
60%
80%
90%
0%
70%
12 w/e 30 Dec 07
12 w/e 27 Jan 08
12 w/e 24 Feb 08
12 w/e Mar 08
12 w/e 20 Apr 08
12 w/e 18 May 08
12 w/e 15 Jun 08
12 w/e 13 Jun 08
12 w/e 10 Aug 08
consumer spend
12 w/e 07 Sep 08
12 w/e 05 Oct 08
12 w/e 02 Nov 08
12 w/e 30 Nov 08
12 w/e 28 Dec 08
12 w/e 25 Jan 09
12 w/e 22 Feb 09
12 w/e 22 Mar 09
12 w/e 19 Apr 09
12 w/e 17 May 09
12 w/e 14 Jun 09
12 w/e 12 Jul 09
12 w/e 09 Aug 09
12 w/e 6 Sep 09
12 w/e 4 Oct 09
Markets in Deflation
12 w/e 01 Nov 09
12 w/e 29 Nov 09
12 w/e 27 Dec 09
12 w/e 25 Jan 10
12 w/e 21 Feb 10
12 w/e 21 Mar 10
12 w/e 18 April 10
12 w/e 16 May 10
12 w/e 13 Jun 10
12w Total Grocery – proportion of markets in growth & decline
12w/e 11 July 10
12w/e 08 Aug 10
12 w/e 05 Sept 10
12 w/e 03 Oct 10
12 w/e 31 Oct 10
12 w/e 28 Nov 10
Markets in Inflation
12 w/e 26 Dec 10
12 w/e 23 Jan 11
12 w/e 20 Feb 11
12 w/e 20 Mar 11
12 w/e 17 Apr 11
12 w/e 15 May 11
12 w/e 12 Jun 11
12 w/e 10 Jul 11
12 w/e 07 Aug 11
12 w/e 04 Sep 11
While inflation is still very evident, it begins to fall back slightly, impacting on
12 w/e 02 Oct 11
12 w/e 30 Oct 11
12 w/e 27 Nov 11
12 w/e 25 Dec 11
12 w/e 22 Jan 12
12 w/e 19 Feb 12
12 w/e 18 Mar 12
KANTAR WORLDPANEL: DATA TO 18th March 2012
© Kantar Worldpanel

8. Change in Household Spend and Inflation rate
Household Spend has dropped back by -0.5% YoY as inflation rate slows
% change year on year – 12 weekly period
KANTAR WORLDPANEL: DATA TO 18th March 2012
© Kantar Worldpanel

9. With less disposable income, shoppers are looking for ways to cut back in any way they
can and grocery is no exception
The average individual
disposable income is €21,010 €3,370 less than in
as we enter 2012. 2008, and €1,150 less
than last year (2010).
Source: CSO Household Budget Survey
KANTAR WORLDPANEL: DATA TO 18th March 2012
9
© Kantar Worldpanel

10. 15.0%
10.0%
0.0%
5.0%
-5.0%
-15.0%
-10.0%
30th Dec 07
27th Jan 08
24th Feb 08
23rd Mar 08
20th Apr 08
18th May 08
15th Jun 08
13th Jul 08
10th Aug 08
07th Sept 08
05th Oct 08
02nd Nov 08
30th Nov 08
Promotion/Product Change
28th Dec 08
25th Jan 09
22nd Feb 09
22nd Mar 09
19th Apr 09
17th May 09
14th Jun 09
12th Jul 09
09th Aug 09
Store Choice
06th Sep 09
04th Oct 09
01st Nov 09
29th Nov 09
27th Dec 09
24th Jan 10
21st Feb 10
21st Mar 10
Inflation
18th Apr 10
12w Total Grocery - consumer coping strategies trended
16th May 10
13th June 10
purchasing on offer and trading down product lines
11th July 10
08th Aug 10
05th Sep 10
03rd Oct 10
31st Oct 10
28th Nov 10
26th Dec 10
23rd Jan 11
Volume per buyer
20th Feb 11
20th Mar 11
17th Apr 11
15th May 11
12th Jun 11
10th Jul 11
07th Aug 11
04th Sep 11
02nd Oct 11
30thOct 11
HH Spend Change
27thNov11
25thDec11
Shoppers are buying more volume this year, in order to reduce spend, they are
22ndJan12
19thFeb12
18thMar12
KANTAR WORLDPANEL: DATA TO 18th March 2012
© Kantar Worldpanel

11. Strong growth in budget products as shoppers trade down price tier
Grocery Volume Growth by Price Brand
Growth in Grocery sales (Volume)
Change in sales Share of sales
20.0
15.0 19.3
14.6
15.0
Super Premium
10.0 20.1
5.8 Premium
5.0
33.5 Good
-
-1.3
-5.0 Standard
-6.3 14.1
-10.0
Budget (Median Standard Good (Median Premium Super Prem Budget
-50%) (Median -25%) price) (Median +25%) (Median +75%) 13.1
% Volume
KANTAR WORLDPANEL: DATA TO 18th March 2012
11
© Kantar Worldpanel

12. 10.0%
12.0%
2.0%
4.0%
0.0%
6.0%
8.0%
23 Mar 08
20 Apr 08
18 May 08
15 Jun 08
13 Jul 08
10 Aug 08
07 Sep 08
05 Oct 08
02 Nov 08
30 Nov 08
28 Dec 08
25 Jan 09
22 Feb 09
22 Mar 09
19 Apr 09
17 May 09
14 Jun 09
12 Jul 09
% of sales accounted for by round €
09 Aug 09
of deals to the Irish grocery market
06 Sep 09
04 Oct 09
01 Nov 09
29 Nov 09
27 Dec 09
24 Jan 10
21 Feb 10
21 Mar 10
18 Apr 10
16 May 10
13 Jun 10
11 Jul 10
08 Aug 10
12 w/e to 22nd Jan 2012
05 Sep 10
03 Oct 10
31 Oct 10
28 Nov 10
26 Dec 10
23 Jan 11
20 Feb 11
20 Mar 11
17 Apr 11
15 May 11
12 Jun 11
10 Jul 11
07 Aug 11
Total Grocery
04 Sep 11
Share of sales has
02 Oct 11
30 Oct 11
stabilised over the last
year averaging at 11% of
The prevalence of mechanics such as round euro pricing shows the importance
27 Nov 11
25 Dec 11
22 Jan 12
KANTAR WORLDPANEL: DATA TO 18th March 2012
© Kantar Worldpanel

13. Irish households are shopping more often this year, but spending an average of
€0.80 less per trip as a result of promotions and trading down
12w Total Grocery - changes in consumer shopping behaviour
Average frequency
increased by
+3.3%
€6 decrease in
12w spend per HH
(-0.5%)
Average basket
spend reduced by
-3.7%
KANTAR WORLDPANEL: DATA TO 18th March 2012
© Kantar Worldpanel

14. Growth in the number of shopping trips across Ireland continues to put more
emphasis on smaller basket shops
2010 2011
Trolley
10+ items 58.7% 58.5%
% of grocery spend
Basket
4-9 items 36.9% 37.3%
Destination
1-3 items 4.4% 4.2%
KANTAR WORLDPANEL: DATA TO 18th March 2012
© Kantar Worldpanel

15. Private label continues to be important as a method of reducing spend and now sees
the highest share in two years of Irish grocery
12w Total Grocery – PL value%
KANTAR WORLDPANEL: DATA TO 18th March 2012
© Kantar Worldpanel

16. What kind of consumer
trends are we seeing
evidence of?
KANTAR WORLDPANEL: DATA TO 18th March 2012
© Kantar Worldpanel

17. In the current climate, more emphasis is placed on traditional values
Health is becoming
more important in the
minds of consumers
49%: family breakfast (32%)
62% agree: I try to buy local 87%: sunday lunch (72%)
76%: Saturday meal (60%)
More emphasis on
doing our bit for the More emphasis on in
economy and buying home occasions
local
% of shoppers agreeing to the
61%: nutrition impacts statements
Source: KWP lifestyle and attitudes survey 2011
KANTAR WORLDPANEL: DATA TO 18th March 2012
© Kantar Worldpanel

18. UK Market Overview
KANTAR WORLDPANEL: DATA TO 18th March 2012
18
© Kantar Worldpanel

19. UK CURRENT THEMES
• Product choice is still the main strategy for trading down
• Inflation still evident in UK grocery and average spend per household is in
growth
• Value Own Label is now gaining from all other tiers
• Own label still remains strong in UK
KANTAR WORLDPANEL: DATA TO 18th March 2012
© Kantar Worldpanel

20. Inflation is also a factor in UK grocery while average spend per household is
in growth
UK Inflation and household spend change
10.0
9.0 Inflation
8.0
HH Spend change
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
KANTAR WORLDPANEL: DATA TO 18th March 2012
20
© Kantar Worldpanel

21. Cheaper products remain the main way for shoppers to manage their spend
4
3 TRADING UP AND TRADING DOWN STRATEGIES
Contribution to growth %pts
2
1
0
-1
-2
-3
-4
12-Jun-11
10-Jul-11
27-Nov-11
15-May-11
23-Jan-11
22-Jan-12
07-Aug-11
20-Mar-11
12-Oct-11
30-Oct-11
18-Mar-12
26-Dec-10
17-Apr-11
20-Feb-11
04-Sep-11
25-Dec-11
19-Feb-12
Volume change Store Choice Promotions Product Choice
Total Grocery 12 we 18 Mar 2012 (KWP P04)
KANTAR WORLDPANEL: DATA TO 18th March 2012
21
© Kantar Worldpanel

22. Cheaper price tiers also seeing growth in UK
Grocery Packs Growth by Price Band Growth in Grocery sales (Packs)
Change in sales Share of sales
8.0
6.3
6.0
7.8
4.7
10.8
4.0 Super
Premium
2.0
0.0
31.6 Premium
-0.1
-2.0
Good
-4.0
-3.5
22.3
-6.0
Standard
-6.5
-8.0
-7.9
-10.0 27.5 Budget
All Budget Standard Good Premium Super
Purchases Premium
Share
KANTAR WORLDPANEL: DATA TO 18th March 2012
22
© Kantar Worldpanel

23. Shoppers trading down from brands and down the Own Label tiers
NET SWITCHING THROUGH PRICE TIERS IN THE BIG 4 UK RETAILERS
Premium
Own Label
Branded
Standard
Own Label
Value Own
Label
Switching limited to Big 4
retailers and 4 tiers
Total Grocery 12 we 18 Mar 2012 (KWP P04)
KANTAR WORLDPANEL: DATA TO 18th March 2012
23
© Kantar Worldpanel