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Dairy Foodservices market 2014
Dairy Foodservices market 2014
Dairy Foodservices market 2014
Dairy Foodservices market 2014
Dairy Foodservices market 2014
Dairy Foodservices market 2014
Dairy Foodservices market 2014
Dairy Foodservices market 2014
Dairy Foodservices market 2014
Dairy Foodservices market 2014
Dairy Foodservices market 2014
Dairy Foodservices market 2014
Dairy Foodservices market 2014
Dairy Foodservices market 2014
Dairy Foodservices market 2014
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Dairy Foodservices market 2014

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Hamish Renton from food marketing agency, Hamish Renton Associates talks about the Dairy Foodservice market and the trends for 2014

Hamish Renton from food marketing agency, Hamish Renton Associates talks about the Dairy Foodservice market and the trends for 2014

Published in: Marketing, Business, Technology
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  • ‘Foodservice’ is: out of home, wholesale, delivered wholesale and the cost sector.The foodservice market is a £49.6bn market, much lower than the £72.7bn retail market where the budgets, audiences and rewards are bigger.Despite this, the key concepts for delivering success are still similar.Regular, reliable and actionable data is hard to come by. Consistent, methodical and occasionally improvised data is key.
  • Chains are growing, offering consumers certainty of quality and value, with independents closingChronic and structural overcapacity in contract catering, restaurants, QSR, leisure and hotelsEating out has become the norm, 19 million adults now eat out at least once a weekLine between foodservice and retail is becoming blurred, consumers eating out are the same as those in supermarketsMultiple routes to market means a complex value chain which is value driven all the way through a long supply chain
  • The first step is to convince the wholesaler to stock the product which establishes route to market. Then the task is to work on the end user to drive demand. Key is determining the channel – e.g. target chefs in hotels, schools, hospitals or pubs
  • Chains will continue to grow with independents losing out more and moreThe value of the eating out market will continue to rise quickly with restaurants integrating technology and digital tools more, for example, through mobile applications etc.Classic British pubs are likely to evolve, in an attempt to grab market share from conventional restaurants by repositioning to focusing on premium, high quality food and drink, such as speciality coffee and premium drinks.Street food is likely to become increasingly popular, fueled by younger consumer demand for unique, trendy offerings.Operators will be keen to demonstrate transparency by demonstrating where their products have been sourced from and supplied from, to show a positive value chain, i.e. sourced in the UK / Ireland. May also occur through eco-friendly food packaging etc. with consumers becoming more environmentally concerned.
  • Transcript

    • 1. Dairy Foodservice – the forgotten sector? Hamish Renton, Managing Director 13th January 2014 1
    • 2. Introduction ‘Foodservice’ is: Out of home Wholesale Delivered wholesale The cost sector Foodservice - £79.7bn Grocery Retail - £170bn Similar concepts of pricing and branding as in retail dairy, but applied to a different market. One watch out - regular, reliable and actionable data is harder to come by. Sources: Catering Insight, IGD 2
    • 3. Foodservice market overview Chains are growing, with independents declining Overcapacity Consumers who eat out are the ones who go shopping Eating out is the new normal Multiple routes to market means a complex value chain A large, complex, dynamic and competitive market. 3
    • 4. Dairy Food Service Market Dairy £6bn (7.5%) 14.7% 29.3% Yoghurts 38.1% Cheeses 14.6% Milks Butter & Spreads 3.3% Cream UK Foodservice Market £79.7bn 4
    • 5. Dairy Food Service Market Category UHT Milk Fresh milk Other milk Flavoured milk Cheddar Soft cheese Other cheese Yoghurt drinks Yoghurts Butter Spreads Chilled cream Total Share of category (%) Foodservice category (£000s) 2.3 29.7 4.1 2.0 15.9 1.8 11.6 3.3 11.4 7.0 7.6 3.3 100% 135m 1.774bn 248m 121m 956m 110m 694m 196m 681m 422m 456m 199m 6bn 5
    • 6. UK Dairy Foodservice Structure 2500 groups constitute 40% of the market with 200,000 independents making up the other 60% FOODSERVICE Profit sector Restaurants Hotel High Street Fine Dining Local In-store Food Courts, Malls, Shopping Centers Coffee shops Tea rooms Bakers Cafeterias Quick Service Restaurants Site based Food primary function Burger Chicken Pizza Ethnic Fish & Chips Bakers Sandwich Shops Ice Cream Home Delivery Retail Food Secondary Function Garden Centers Sandwiches & Snacks Forecourts Supermarkets Convenience Store Newsagent Mobile Operators Cost Sector Pubs Hotels Full Service Guest House B&B Pubs Restaurants Outdoor Eating Bar food Clubs Leisure Staff Catering Sports Sports Centres Health Clubs Sports Clubs Stadia Specialty eg. Racecource Tourist Attractions Night clubs Social clubs Private member clubs Contract Self Managed Facilities Management Stately Homes etc Museums Galleries Theme Parks Zoos, Safari Parks Cinemas, Theatres Casinos, Bingo Halls Holiday Camps Travel Outside Caterers Healthcare, Education, Services Local Authorities Schools, Colleges, Universities Hospitals Nursing Homes Social Services Police Prisons Armed Services 6
    • 7. Opportunity channels for dairy Restaurants QSR Pubs Hotels Leisure Department Stores 7
    • 8. Channel choices Direct Supply Others including Retail Typical Dairy Co Contract Distributor Cash & Carry Foodservice Operator (end user) Delivered Wholesaler 1) Dairy Co must choose a route to market 2) Must work with end user to pull demand 8
    • 9. Dairy consumption patterns Cost sector consumption concentrated in the early afternoon 40 35 30 Profit sector consumption primarily midevening Volume consumed 25 20 Cost Sector Profit Sector 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 9
    • 10. UK Food Service Purchases Source: Published data, March 2012, Total food service food & drink sales: £13,056m 6.7% Education 1.8% Services Food and drink purchases 5.8% Health 9% Staff Catering 18.9% Restaurants 6.7% Leisure 22.5% QSR 15.7% Hotels 13% Pubs • Restaurants, QSR and pubs make up over 50% of the market from a dairy perspective. 10
    • 11. Keys to Success Sales planning Wholesale, Delivered Wholesale, Regional Wholesale and Direct supply to selected major chains (QSR, Hotels & Restaurants) Upweight trade marketing Establish credibility as a broad based dairy player by working the channels Insight and category analysis Establish trade and end user credibility using channel specific research Branding and packaging Create a strong brand identity in a complex and competitive market Export services Increasing presence internationally or penetrating into a new market 11
    • 12. Foodservice Exports 20 kg deli block Trade ad 12
    • 13. 2014 Predictions Chains will continue to grow with independents declining Health concerns grow - popularity of lighter cheeses Growth of the lacto free sector Pressure and cost continue to increase 13
    • 14. Summary TNS predict that by 2035 the distinction between foodservice and grocery retail will be meaningless. The value of the UK Hospitality and Foodservice market is expected to reach £90bn by 2018. Lots of opportunities for dairy, particularly in cream, flavoured cream and butter. Dairy companies must start small and grow. A complex and challenging market. 14
    • 15. To find out more click the cow! Address: Rockwood House, Parkhill Road, Torquay, Devon, TQ1 2DU Phone: 01803 203387 E-mail:info@hamishrenton.com Twitter: @hamishrenton Linkedin: Hamish Renton 15

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