PULSE REPORT

IRI Pulse Report Pet

Welcome to the Pulse Q3 2013 edition for pet. We hope you find it useful. Please do not hesitate to contact us if you have any questions or comments at E .!ar"etin#$IRI%orld%ide.com.

Q3 2013 IRI%orld%ide.eu

PULSE REPORT

&'out the Report

(his pet report is one of ten super cate#ory reports desi#ned to sho% hi#h)level comparison and analysis for retail mar"ets across ma*or countries in Europe.

(his report contains data #athered from around Europe. (his mar"et %as split into the follo%in# cate#ories+ do# food, cat food, other pet food and pet accessories.

(he report hi#hli#hts "ey metrics such as total sales fi#ures, mar"et trends, cate#ory shares, %inners and losers for Europe and for individual countries.

(he data has 'een sourced from IRI retail data'ases and Eurostat, the statistical 'ranch of administration for the European -ommission.

(he countries included in the report are+ .rance, /ermany, Italy, the 0etherlands, 1pain and the nited 2in#dom 3 .2.4.

(he mar"et channels used for each country in this report are as follo%s+

Country
2 E1 6E 07 I( .R

Channels used
5ypermar"ets, supermar"ets, dru# stores and impulse outlets 5ypermar"ets, supermar"ets, hard discounters, and dru# stores, includin# the -anary Islands 5ypermar"ets, supermar"ets, hard discounters and dru# stores 5ypermar"ets, supermar"ets, hard discounters and dru# stores 5ypermar"ets, supermar"ets, small self service, hard discounters and dru# stores 5ypermar"ets and supermar"ets

.or analytical purposes, the data sourced from availa'le retail data'ases has 'een consolidated to provide consistent results. 5o%ever, for some countries it has not 'een possi'le to source data pertainin# to certain cate#ories. When this occurred, it has 'een documented in the 8notes9 section found at the end of the report.

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:n the Radar

The pet macro-category was not hit very hard by the economic recession. Its value growth across Europe in Q3 2013 stayed positive, but is definitely slowing down at +2.0%, which is slightly lower than the growth of Q2 2013 (+2.1%). The pet macro-category, generally speaking, does not grow like it used to in the past, but its trend is still better, or at least in line with, the trend of FMGC products. Value growth is driven by an increase in prices more so than by an increase in volumes. Price inflation and more premium sectors in small sizes matter to this value growth. Different tendencies coexist. Smaller premium products grow together with convenience products by private labels in most countries.

ECONOMIC FI URES INFLUENCIN

CONSUMER !E"#$IOR
#$ER# E 12 MONT"S INFL#TION R#TES

POPUL#TION IN MILLIONS ;an. 2012 Fran+e er3any Italy Netherlands S5a6n Un6ted 76n8do3 ,-.3 20.3 -0.3 1,.1 4,.2 ,3.4 ;an. 2013 ,-., 20.-0., 1,.2 4,.1 ,3.2

UNEMPLO%MENT &'( 1ep. 2013 11.1 -.2 12.1.0 2,., 1.&vera#e 2012 10.2 -.10.1 -.3 2-.0 1.0

)P IN MILLIONS &*( 2012 2 032 201 2 ,44 200 1 -,- 01, ,00 ,32 1 040 -21 001 001 2013 3Estimate4 2 0-0 3-2 2 ,04 400 1 -,2 322 ,04 4-0 1 0-1 01, 1 2-4 020

1ep. 2013 /1.2 /1.2 /1.2 /3.1 /2.3 /2.1

&vera#e 2012 /2./2.4 /3./2.2 /2.3 /3.1

1ource+ Eurostat, 1eptem'er 2013

PULSE REPORT

/7:<&7 (RE061
TOT#L PET $#LUE S#LES #N) ' C"#N E $S. PRIOR %E#R

/2.1' /0.0' 90.-'

$#LUE S#LES IN MILLIONS &*( Total EU U7 )E 2 ,32 2 224< 2 003 2 04, 1 221 -,2 413

/2.1'

FR IT ES NL

/1.4' /2.2'
='ased on an e>chan#e rate of ?1.1@0 to the pound

TOT#L EUROPE /2.0' TOT#L PET $#LUE S#LES FOR T"E L#ST SI= QU#RTERS

2 -00

M6ll6ons

2 000

410
1 -00

402

-3-

-04 -1, 400

Fran+e er3any

-21 -02 -21 -40 -2, 402 311 202 1, 131 -21 30, 12 134 -30 31, 23 142 302 20 141 200 111 142 -3200 144 S5a6n U.7. Netherlands Italy

1 000

-00

--1

--,

-1-

0 019:u6l.912 019o+t.912 309d;+.912 3193ars913 309:u6n913 209se5t.913 Per6od End6n8

1ource+ IRI retail data'asesA Period endin# 2B 1eptem'er 2013

PULSE REPORT

Europe
C#TE OR% S"#RE OF $#LUE IN T"E L#ST %E#R C#TE OR% $#LUE S#LES IN T"E L#ST %E#R

Euros 6n M6ll6ons

C 32D

@0.1G 3F.DG

3 1FD

E2C
B.@G 3.FG

31C

-at .ood

6o# .ood

Pet &ccessories

:ther Pet .ood

TOP - C#TE ORIES> E$OLUTION

Ialue sales 3?4 and G chan#e vs. year a#o

7E% TREN)S (he value of the European mar"et #re% 'y 2.0G across the si> countries in the year endin# Q3 2013. (his is sli#htly %orse than

C 32D

the #ro%th of the year endin# Q2 2013 32.1G4, so Europe continues to slo% do%n.

M6ll6ons

3 1FD

1pain, the

.2. and .rance are confirmed as

the top countries for #ro%th in the year endin# Q3 2013.

E2C 31C 2.3 6o# .ood -at .ood 1.@ Pet &ccessories 3.F :ther Pet .ood )1.@

-at food remains the core 'usiness and the trendsetter of pet care, sho%in# the fastest #ro%th after pet accessories. 6o# food is also #ro%in#, 'ut at a much slo%er pace. (he #ro%th of pet accessories is definitely positive, %hilst other pet food stays ne#ative.

(otal ? 1ales G ? vs. H&

(he mar"etplace continues to 'ecome more competitive for 'randed products, due to increased promotional activity and the further #ro%th of private la'el.
nited 2in#dom

Europe includes+ .rance, /ermany, Italy, 0etherlands, 1pain and the 1ource+ IRI retail data'asesA Period endin# 2B 1eptem'er 2013

PULSE REPORT

Europe

TOP ?INNERS> $#LUE S#LES C"#N E $S. %R. # O &*(

M6ll6ons
0 20 40 ,0 20 100 120

TOP LOSERS> $#LUE S#LES C"#N E $S. %R. # O &*(

M6ll6ons
9, 994 93 92 91 0

Cat Food

BD.3

)o8 Food Pet #++essor6es

C@.3

2E.E

) C.B

Other Pet Food

C#TE OR% 7E% F#CTS (he main contri'utor to the #ro%th of pet care across Europe is cat food 3JBD.3 million ?4, %hilst a smaller 'ut relevant contri'ution comes from do# food 3JC@.3 million ?, %here the driver is snac"s and treats4 and a visi'le contri'ution also comes from pet accessories. (he do# snac"s and treats se#ment is 'ecomin# increasin#ly more important and si#nificant due to its #ro%th in value and volume in all European countries. Wet cat sin#le serve, and to a lesser e>tent dry cat food, is the driver for cat food and %here 'rands are investin# the most. (he main point of innovation 'y ma*or 'rands is on premium tastes in small siKes or ne% user friendly pac"a#es. 0o real ne% concepts or innovations entered the mar"et, unless %e consider the #ro%in# importance of the Loral careM concept in snac"s and treats, %hich %as introduced some years a#o. Private la'el is #ro%in# across most of the mar"ets and represents a cheaper 'ut accepta'le alternative offer compared to ma*or 'rands in the tou#h economic times %e9re livin# in. Pet care appears to 'e an increasin#ly polarised cate#ory. Economy products are #ro%in# 3private la'el4 as %ell as premium products in small siKes. (he shopper is not unique and the shopper of do# food may 'ehave very differently from the shopper of cat food. 1o, a "ey challen#e for manufacturers is to develop proper ad hoc actions in different cate#ories.
Europe includes+ .rance, /ermany, Italy, 0etherlands, 1pain and the 1ource+ IRI retail data'asesA Period endin# 2B 1eptem'er 2013 nited 2in#dom

PULSE REPORT

.rance
C#TE OR% S"#RE OF $#LUE IN T"E L#ST %E#R C#TE OR% $#LUE S#LES IN T"E L#ST %E#R

CF.3G

Euros@ 6n M6ll6ons

30.BG

B31

F21

332

1F.@G F.2G

12@

-at .ood

6o# .ood

Pet &ccessories

:ther Pet .ood

7E% TREN)S

TOP - C#TE ORIES> E$OLUTION

Ialue sales 3?4 and G chan#e vs. year a#o

/ro%th is still mainly driven 'y cat food. Wet cat #ro%th %as moderate 3J1.2G4, %hereas dry cat continues to 'e very dynamic 3JD.EG4.

B31

1nac"s and treats is the fastest #ro%in# cate#ory. -at snac"s and treats 3J1D.FG4 #re% throu#h assortment development 3J2C.1G4, %hilst do# care and treats 3J11.3G4 'enefitted from more ne% product development 3J1D.1G4.

M6ll6ons

F21

332

(he #ro%th of the cat population had a positive impact on cat food, 'ut also on pet accessories, than"s to cat litter 3JC.BG4.

12@ @.F 6o# .ood -at .ood 1.1 Pet &ccessories 3.C :ther Pet .ood 3.2

&ll other pet food is ne#ative, e>cept 'ird food 3JF.FG4.

(he do# food trend continues. Wet food is ne#ative 3)C.DG4 %ith dry food positive 3J3.CG4, than"s to care and treat. !ain meal 3J1.CG4 has also made a contri'ution to #ro%th.

(otal ? 1ales

G ? vs. H&

1ource+ IRI retail data'asesA Period endin# 2B 1eptem'er 2013

PULSE REPORT

.rance
TOP ?INNERS> $#LUE S#LES C"#N E $S. %R. # O &*(
M6ll6ons
0 10 20 30 40 -0 ,0
910 90 92 91 9, 994

TOP LOSERS> $#LUE S#LES C"#N E $S. %R. # O &*(

M6ll6ons
93 92 91 0

Cat Food Pet #++essor6es

CB.2

10.E

)o8 Food Other Pet Food

F.E

3.E

C#TE OR% 7E% F#CTS -at food is the main contri'utor to the mar"et value #ro%th, sho%in# CB million Euros of ne% sales. With the e>ception of multi)serve, all cat food sectors are very positive+ 6ry cat JD.EG 1in#le serve %et cat JC.1G 1nac"s cat J1D.FG ran#e 3J3.2G4, and promotional activity

Pet food volume sales are increasin#, driven 'y 12 is no% sta'le.

(he assortment in pet food tends to increase in each se#ment, %ith the e>ception of %et do#. (his proves ho% strate#ic this cate#ory continues to 'e for retailers, particularly %ith the development of the value offer.

1ource+ IRI retail data'asesA Period endin# 2B 1eptem'er 2013

PULSE REPORT

/ermany
C#TE OR% S"#RE OF $#LUE IN T"E L#ST %E#R C#TE OR% $#LUE S#LES IN T"E L#ST %E#R

Euros@ 6n M6ll6ons

@F.BG

1 1B1

32.3G

FDF

D.CG 3.@G

1@C D2

-at .ood

6o# .ood

Pet &ccessories

:ther Pet .ood

TOP - C#TE ORIES> E$OLUTION

Ialue sales 3?4 and G chan#e vs. year a#o

7E% TREN)S (he pet care and food cate#ory in /ermany has re#istered a decline of )0.@G in its value sales, due to the decline in normal sales, as promotional sales are sho%in# #ro%th. -at food, %hich is the main cate#ory, is sta'le in value due to the rise in avera#e pricesA ho%ever, there %ere dips in volume.

1 1B1

M6ll6ons

FDF

(he si#nificant decline in &ldi and dru# stores has resulted in an overall decline of the pet care and food cate#ories.

1@C 0.1 6o# .ood -at .ood )2.0 Pet &ccessories 3.2 D2 :ther Pet .ood )C.C

Private la'el sho%ed decline in 'oth value and volume, driven 'y a decline in cat and do# food.

&part from sta'le #ro%th in cat food, all other pet foods sho%ed decline in value, %hereas only 'ird food is sho%in# positive development in volume.

(otal ? 1ales

G ? vs. H&

Within pet accessories, cat litter is compensatin# for the decline in other pet accessories.

1ource+ IRI retail data'asesA Period endin# 2B 1eptem'er 2013

PULSE REPORT

/ermany
TOP ?INNERS> $#LUE S#LES C"#N E $S. %R. # O &*(
M6ll6ons
0 1 2 3 4 , 91910 9-

TOP LOSERS> $#LUE S#LES C"#N E $S. %R. # O &*(

.
Other Pet Food )o8 Food

M6ll6ons
0

Pet #++essor6es Cat Food

C.E

1.1

) 3.3

) 1C.1

C#TE OR% 7E% F#CTS -at litter, %ith a dou'le di#it sales value #ro%th in discounters, is the #ro%th driver for pet accessories. Private la'els are sho%in# dou'le di#it #ro%th for cat litters. In contrast, national 'rands are declinin#. Within cat litter, clumpin# is the #ro%th driver, and private la'el is drivin# its #ro%th. In cat food, snac"s are offsettin# the decline of other types. In cat food, %here private la'els are sho%in# decline, national 'rands %ith positive development are helpin# the cate#ory to sho% sta'le #ro%th in value. 6o# food is the most declinin# cate#ory, irrespective of a sli#ht increase in promotional sales. & dou'le di#it decline in dry food has resulted in the overall decline, %hilst snac"s are sho%in# #ro%th. 6ry do# food is sho%in# a decline in all pac" siKes, mainly in siKe class from 2.@"# to C.B"#, its popular sellin# pac" siKe, %hich contri'utes to more than half of this decline. 6ecline in price %as una'le to help fish food, and 'ird food is re#isterin# #ro%th in sales. Where 'ird food is sho%in# #ro%th in volume, fish food is sho%in# decline in 'oth value and volume. 1mall animal feed N rodents is sho%in# decline in all the channels, 'ut mainly in hard discounters. Private la'els are sho%in# positive #ro%th only in pet accessories due to the si#nificant increase in cat litter.

1ource+ IRI retail data'asesA Period endin# 2B 1eptem'er 2013

10

PULSE REPORT

Italy
C#TE OR% S"#RE OF $#LUE IN T"E L#ST %E#R C#TE OR% $#LUE S#LES IN T"E L#ST %E#R

@2.EG

33.DG

Euros@ 6n M6ll6ons

FCE

C1C

11.3G 2.2G

13B 2D

-at .ood

6o# .ood

Pet &ccessories

:ther Pet .ood

TOP - C#TE ORIES> E$OLUTION

Ialue sales 3?4 and G chan#e vs. year a#o

7E% TREN)S (otal cat and do# food continued to increase in value sales in the year endin# Q3 2013 31.FG for cat and 2.2G for do#4, 'ut volume sales did not

FCE

"eep up, meanin# value #re% as volume declined for cat food and do# food. Ialue #ro%th came from increasin# prices.

M6ll6ons

C1C

-at food remained the lar#est sector of the cate#ory, accountin# for @2.EG of total value sales, and sho%ed an increase of 1.FG, lo%er than do# food. Pet accessories stayed very

13B 2D )D.@ :ther Pet .ood

positive 3JD.2G4 and other pet food is still heavily losin# value sales 3)D.@G4. 6ry pet food is performin# 'etter than %et. Wet sin#le serve drove the performance of cat food %ith a #ro%th of @.1G in value sales, %hilst do# food also confirmed a ne#ative trend for %et small and medium products 3)0.BG4.

1.F 6o# .ood -at .ood

2.2 Pet &ccessories

D.2

(otal ? 1ales

G ? vs. H&

1nac"s and treats remains the fastest #ro%in# se#ment of the cate#ory, especially for cat 3J@1.CG4 'ut also for do# food 3JE.CG4.

1ource+ IRI retail data'asesA Period endin# 2B 1eptem'er 2013

11

PULSE REPORT

Italy
TOP ?INNERS> $#LUE S#LES C"#N E $S. %R. # O &*(
M6ll6ons
2 0 0 10 10 11 93 92 92 91

TOP LOSERS> $#LUE S#LES C"#N E $S. %R. # O &*(

.
Other Pet Food

M6ll6ons
91 0

Cat Food Pet #++essor6es )o8 Food

10.2

B.C

E.E

) 2.2

C#TE OR% 7E% F#CTS (he main contri'ution to the #ro%th of the pet care cate#ory came from cat food, %ith a 10.2 million euro increase in sales. (he #ro%th of do# food is %orth E.E million euros. Pet accessories "eep on 'ein# positive and are the second contri'utor to the sales #ro%th of the pet care cate#ory %ith a B.C million euro increase. Products in small pac"a#es continue to drive the positive performance of the mar"et, especially in cat food, confirmin# that the cluster of shoppers %ho "eep on 'uyin# premium products 3%ith user friendly pac"a#es and special tastes4 are not affected 'y the difficult economic situation. (he increasin# attention to pets9 health is reflected in the considera'le #ro%th of the do# functional snac" and treats se#ment. -at snac" and treats is still a niche mar"et, 'ut %ith a #ood potential of #ro%th. Pet accessories are #ro%in# 'etter than cat and do# food, %hilst other pet food is continuously losin# value and volume sales. 1ince 'oth promotional activities and private la'els sho% a relevant #ro%th in most of the se#ments, pet care is more and more a hi#hly competitive cate#oryOthe percent of promoted volumes in pet food #ot up to 2@.F %ith a #ro%th of J0.F points versus 2@.0 last year. Private la'el reached a C3.2G volume mar"et share, %ith J1.2 points versus last year in hypermar"ets, supermar"ets and small self service stores. Pet care is not a cate#ory that is hi#hly impacted 'y the recession, as it is still #ro%in# far a'ove the avera#e for .!-/ products of )0.DG for food and non)food products in Italy in the year endin# Q3 2013 and )0.EG in Q3 2013. 5o%ever, this #ro%th in value #oes to#ether %ith a decline in volumes.
1ource+ IRI retail data'asesA Period endin# 2B 1eptem'er 2013

12

PULSE REPORT

0etherlands
C#TE OR% S"#RE OF $#LUE IN T"E L#ST %E#R C#TE OR% $#LUE S#LES IN T"E L#ST %E#R

Euros@ 6n M6ll6ons

1F0

@0.EG

2D.EG

ED

@C
1D.1G C.2G

13

-at .ood

6o# .ood

Pet &ccessories

:ther Pet .ood

TOP - C#TE ORIES> E$OLUTION

Ialue sales 3?4 and G chan#e vs. year a#o

7E% TREN)S (he t%o lar#est cate#ories, do# food and cat food, 'oth dropped in value. (his has 'een fully compensated for 'y the #ro%th in turnover of other pet food and pet accessories. (he same shift is visi'le in volume.

1F0

M6ll6ons

ED

Iersus last year, volume prices increased 'y 2.CG. :nly prices of do# food stayed sta'le.

@C

In Q3, total turnover #re% 'y 0.BG versus Q2 2013. 5o%ever, compared to Q3 2012, turnover dropped 'y 2.0G.

13 0.D 6o# .ood -at .ood )3.0 Pet &ccessories E.@ D.0 :ther Pet .ood

-at food is the lar#est se#ment. (urnover #re% 'y 2.1G versus last quarter, 'ut lost 2.FG versus last year 3Q3 20124.

(he main driver of the pet care cate#ory is pet accessories. &lthou#h #ro%th fi#ures are #ettin# less impressive, turnover in Q3 2013 still #re% 1.FG versus a year a#o.

(otal ? 1ales

G ? vs. H&

1ource+ IRI retail data'asesA Period endin# 2B 1eptem'er 2013

13

PULSE REPORT

0etherlands
TOP ?INNERS> $#LUE S#LES C"#N E $S. %R. # O &*(
M6ll6ons
0 1 2 3 4

TOP LOSERS> $#LUE S#LES C"#N E $S. %R. # O &*(

M6ll6ons
93 93 92 92 91 91 0

Pet #++essor6es

3.@

Cat Food Other Pet Food

1.1

1.0

) 2.D

)o8 Food

C#TE OR% 7E% F#CTS (otal supermar"et turnover has 'een under pressure in period 10 and period 11, and sho%ed a ne#ative trend versus a year a#o. Hear to date, turnover #re% 'y 2.0G. Hear to date promotional pressure is s"y hi#h 322.1G4. &lso, the share of pet food sold on promotion increased from 11.EG to 1C.1G 3J2.3 percent point4. 5alf the turnover comes from cat food 3@0.EG, and %as @1.0G a year a#o4. (urnover on !&()'ase is almost sta'le 3)0.2G4, %hile the num'er of pieces dropped 'y FG. Iolume dropped 'y C.CG. :'viously, pac"a#es %ere 'i##er 3J1.EG4, and prices have 'een increased 3JC.3G4. 1B.CG of all cat food turnover %as sold on promotions. (he total promotional value increased 'y 2@.3G. (he smallest se#ment %ithin cat food, other cat food, is the only se#ment that #re% in value 3J1F.CG4 and volume and has increased its ran#e. only D.FG of total cat food turnover. &lthou#h froKen do# food sho%ed a #ro%th of 22.BG in turnover, the entire cate#ory of do# food lost 3.0G of turnover 'ased on !&(. Iolume declined 'y 2.BG. (he share of 'ird food increased from @1.3G to @D.DG %ithin the other pet food cate#ory. 5i#her sellin# prices 3JF.CG4 and more volume 3J13.FG4 are the reason. Pet accessories #re% 'y F.CG. /ro%th is entirely comin# from do# che% 'ones and cat litter. <oth se#ments represent EB.BG of total value. nfortunately, this se#ment represents

1ource+ IRI retail data'asesA Period endin# 2B 1eptem'er 2013

14

PULSE REPORT

1pain
C#TE OR% S"#RE OF $#LUE IN T"E L#ST %E#R C#TE OR% $#LUE S#LES IN T"E L#ST %E#R

F0.CG

Euros@ 6n M6ll6ons

3CC

1BD

3C.DG

C.BG

2E

6o# .ood

-at .ood

:ther Pet .ood

TOP - C#TE ORIES> E$OLUTION

Ialue sales 3?4 and G chan#e vs. year a#o

7E% TREN)S (he pet food mar"et sho%ed #ood #ro%th due to the #ro%th of its three se#ments+ do# food 3JE.EG4, cat food 3J@.EG4 and other pet food 3J2.0G4. Private la'el has reached @0.DG mar"et share and it is hi#her in the do# food se#ment 3@@.2G4.

3CC

M6ll6ons

1BD

6ry do# food e>perienced ma*or #ro%th 3JB.EG4. Wet do# food increased 'y only JC.0G in value, as this se#ment has a hi#her level of private la'el presence 3JD@.CG4. Wet food is a more e>pensive product, 'ut private la'el is focused on

2E E.E 6o# .ood -at .ood @.E :ther Pet .ood 2.0

formats %ith lar#e volume, %hereas 'randed manufacturers are focused on sin#le serve products %ith a hi#her value 'ut less %ei#ht. -at food e>perienced a #ro%th of @.EG in value. (his increase in value is due to the success of sin#le serve products.

(otal ? 1ales

G ? vs. H&

1ource+ IRI retail data'asesA Period endin# 2B 1eptem'er 2013

1-

PULSE REPORT

1pain
TOP ?INNERS> $#LUE S#LES C"#N E $S. %R. # O &*(
M6ll6ons
0 10 120 230 9-0 94940 93930 92-

TOP LOSERS> $#LUE S#LES C"#N E $S. %R. # O &*(

M6ll6ons
920 91910 90

)o8 Food

2D.B

Cat Food Other Pet Food

10.E

0.@

C#TE OR% 7E% F#CTS &ll cate#ories continued to #ro%. 6ry do# food, the lar#est and cheap, alon# %ith snac"s for do#s and cats, the ne%est and more e>pensive, %ere the sectors %ith ma*or #ro%th. :n the other hand, private la'el continues to #ain position, a'sor'in# most of the #ro%th of the mar"et. 1nac"s and priKes, or treats for do#s and cats, continues #ainin# presence, increasin# their volume. It is important to hi#hli#ht the relevance of the priKes for cats cate#ory, %hich is still small, 'ut has almost dou'led in sales. <oth monopoliKe a 'i# part of the launches in this sector as a %ay of #ainin# added value and differentiation. Private la'el 'rands are #ainin# share. (his ma*or increase is in value as opposed to volume. (his demonstrates the impulse of retailers o%n 'rands of ma*or quality and added value for their 'rands, that are not 'ou#ht on lo% prices alone.

1ource+ IRI retail data'asesA Period endin# 2B 1eptem'er 2013

1,

PULSE REPORT

nited 2in#dom
C#TE OR% S"#RE OF $#LUE IN T"E L#ST %E#R C#TE OR% $#LUE S#LES IN T"E L#ST %E#R

Euros@ 6n M6ll6ons

1 0B0 BDC

CB.0G

C3.EG

@.1G 2.1G

11C CF

-at .ood

6o# .ood

Pet &ccessories

:ther Pet .ood

TOP - C#TE ORIES> E$OLUTION

Ialue sales 3?4 and G chan#e vs. year a#o

7E% TREN)S (he value sales of the .2. mar"et #re% 'y

1 0B0 BDC

2.DG durin# the year endin# Q3 2013. (his %as lo%er than the same period last year, %hich sa% #ro%th of C.2G.

M6ll6ons

-at food is the lar#est sector %ith CB.0G value share and #re% 'y 3.3G. 6o# food share %as C3.EG and #re% at a slo%er rate of 2.0G.

11C 3.3 6o# .ood -at .ood 2.0 Pet &ccessories F.E CF :ther Pet .ood )C.2

Pet accessories #re% the fastest at F.EG, %hilst other pet food declined 'y C.2G.

Promotional activity continues to 'e 'elo% the total #rocery level, 'ut did increase from 3D.@G 312 %ee"s endin# !arch4 to C3.0G 312 %ee"s endin# ;uly4, 'ut durin# the latest 12 %ee"s had dropped to C1.@G.

(otal ? 1ales

G ? vs. H&

Private la'el products #re% faster 3JF.1G4 than 'randed 3J1.EG4 and have seen value share increase to 1B.2G.

1ource+ IRI retail data'asesA Period endin# 2B 1eptem'er 2013

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PULSE REPORT

nited 2in#dom
TOP ?INNERS> $#LUE S#LES C"#N E $S. %R. # O &*(
M6ll6ons
0 10 20 30 40 93 92 92 91

TOP LOSERS> $#LUE S#LES C"#N E $S. %R. # O &*(

.
Other Pet Food

M6ll6ons
91 0

Cat Food

3C.D

)o8 Food Pet #++essor6es

1E.D

D.3

) 2.0

C#TE OR% 7E% F#CTS &lthou#h this year has seen very contrastin# %eather conditions in the little impact on pet food volume sales. (he only sectors to sho% stron# #ro%th %ithin pet food are cat and do# treats, %hich #re% 'y 2C.BG and B.3G, respectively. 0e% product development at the su')'rand level durin# the latest year accounted for C.2G of value sales in the pet food cate#ory. (he sectors %hich contri'uted the most ne% product development value sales %ere cat %et sin#le serve and %et do# food, %hich to#ether accounted for over FE.2G of ne% product development sales. Private la'el ne% development contri'uted F1.@G to total ne% product development sales. (he avera#e price per "ilo for pet food increased 'y C.DG, %ith cat increasin# 'y @.2G and do# food 'y C.1G. Private la'el products increased 'y C.@G and still remain 2B.1G cheaper than the mar"et. Pac" siKes are still continuin# to trend to%ards smaller siKes. Pac"a#in# formats are also 'ein# loo"ed at, %ith one manufacturer recently introducin# a Lplastic reseala'le tu'M to the %et do# food sector. .2., %here %inter

continued %ell into &pril and summer 3;ulyN&u#ust4 %as the hottest in seven years, this had

1ource+ IRI retail data'asesA Period endin# 2B 1eptem'er 2013

12

PULSE REPORT

.inal 0otes

Notes on Cate8ory )eA6n6t6ons Aor Countr6es 6ue to the diverse products found in individual countries across this mar"et, it %as necessary to consolidate the availa'le data into the cate#ories in this report. In some cases, it %asn9t al%ays possi'le to ali#n products across all si> countries, hence the need to hi#hli#ht any anomalies in the report. (hose e>ceptions are listed 'elo%+ Other Pet Food (he .2. data in this report only includes 'ird food, %hile the other countries include fish

food and rodent food. Pet #++essor6es (he .2. data in this report only includes cat litter and does not include pet hy#iene

products, aquarium accessories or pet toys. (he 1pain data in this report does not include this cate#ory. (he /ermany data in this report does not include pet toys.

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PULSE REPORT

Resources

(o #ain insi#ht into opportunities across specific cate#ories, se#ments, channels or retailers, contact your IRI client service representative re#ardin# custom analyses levera#in# the follo%in# resources+ IRI InAoS+an CensusE is a syndicated retail trac"in# service that ena'les manufacturers and retailers to acquire industry insi#hts used to ma"e 'etter 'usiness decisions. IRI Info1can -ensus utiliKes the data that IRI collects from #rocery, dru#, and mass merchandise retailers to provide the most comprehensive and accurate syndicated data offerin# in the .!-/ sector. With access to accurate, #ranular detail 'y cate#ory, #eo#raphy, measure, and time period, clients have the tools needed to develop mar"etin# and sales strate#ies 'ased on product performance, distri'ution, and promotion responsiveness. &ll data a'out pet comes from IRI InAoS+an CensusE. IRI Consult6n8 provides strate#ic insi#hts and advice, levera#in# a variety of data sources, predictive analytics, ena'lin# technolo#ies, and 'usiness analyses to help .!-/ manufacturers and retailers address si#nificant sales and mar"etin# issues effectively.

.:R !:RE I0.:R!&(I:0 Please contact Paolo /arro, <usiness Insi#hts 6irector, IRI at Paolo. arroDIRICorldC6de.+o3 or J3B 02 @2.@DBCCF %ith questions or comments a'out this report.

#Bout IRI. IRI is a leader in deliverin# po%erful mar"et and shopper information, predictive analysis and the foresi#ht that leads to action. We #o 'eyond the data to i#nite e>traordinary #ro%th for our clients in the -P/, retail and over) the)counter healthcare industries 'y pinpointin# %hat matters and illuminatin# ho% it can impact their 'usinesses across sales and mar"etin#. !ove your 'usiness for%ard at IRICorldC6de.eu &rlin#ton 1quare, 6o%nshire Way, <rac"nell, <er"shire R/12 1W&, (el JCC 304 13CC DCF000
-opyri#ht P2013 Information Resources, Inc. 3IRI4. &ll ri#hts reserved. IRI, the IRI lo#o and the names of IRI products and services referenced herein are either trademar"s or re#istered trademar"s of IRI. &ll other trademar"s are the property of their respective o%ners.

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