Recessionary Strategies for Food and Drinks Companies: The impact on NPD, price architecture and future developments

Recessionary Strategies for Food and Drinks Companies: The impact on NPD, price architecture and future developments published by Business Insights in October, 2009. This report consists of 98 pages and the price starts from US $ 2875.

Introduction

Abstract

In North America, Europe and, to an extent, Japan, the food and drink industry has been significantly impacted by the downturn. Recession in these markets has radically altered consumer behavior across the board, and essentials such as food and drink are by no means exempt. While consumers are not going to stop buying groceries, recession has both a real and a potential impact on household incomes and budgets. Falls in actual income caused by recession and the possibility of reduced future income have entailed major changes in spending on food and drink in developed economies.

Table of Contents

Executive summary

• The recession and spending on grocery
• The impact of the recession on grocery sectors
• Recession and grocery retail

Chapter 1 - Macroeconomic analysis

• Summary
• Introduction
• Developed economies in recession
• The cost of food and drinks

Chapter 2 - Resilience, vulnerability and trading down

• Summary
• Introduction

• Immediate impact of the recession
• Short-term movement in grocery markets
• Resilient sectors of the market
• Premium and ethical products

• The impact of trading down
• Impact on market structure
• Case study- Bonduelle

• Movement to home consumption
  • Taking more meals at home
  • Entertaining at home
  • Preparation of food for out-of-home consumption

Chapter 3 - Recession and the grocery retail sector

• Summary
• Introduction
• Grocery retail and the recession

• Growth in value retail and discounters
• Dynamics of price-driven discount food retail
  • Building standardized ranges
  • Targeting high growth segments
  • Adapting products to suit local tastes

• General trading down in grocery retail
• Premium private label offering
• Ongoing development of lowest price private label
• Upmarket retailers develop value ranges

• Growth of private label

Chapter 4 - Innovation and NPD

• Summary
• Introduction

• Price and value strategies
• Targeting budget-conscious consumers
• Focusing on costs and pricing
  • Packaging modification

• Targeting in-home consumption
• Meal occasions out of the home
• Displacement of demand
  • Products and ingredients for home cooking
  • Home entertainment and treats

• Products for out-of-home consumption

Chapter 5 - Outlook and future developments

• Summary
• Introduction
• Outlook scenarios for developed economies
• Consumer trends over the next 5 years
• The evolution of NPD

List of Figures

• Figure 1.1: Quarterly real GDP growth in Europe, the US and Japan (%), 2008-Q2 2009
• Figure 1.2: Economic Sentiment Index, Europe, 2004-2009
• Figure 1.3: Unemployment rates in Europe, the US and Japan, % of adults, September 2008-June 2009
• Figure 2.4: Rating of resilience to the downturn of different product categories
• Figure 2.5: Recessionary impact on market structure
• Figure 2.6: Sectors gaining from trading down
• Figure 3.7: Retail strategies for recession in the UK
• Figure 3.8: Growth in discounter share of European grocery market value, 2003-08
• Figure 3.9: Innovative private label offerings
• Figure 3.10: Trading down in a recession
• Figure 3.11: Grocery private label share (%,value), Europe, May 2009e
• Figure 4.12: Balancing experience with value
• Figure 4.13: Importance of downturn-related consumer trends on grocery
• Figure 4.14: Rating of importance of strategies targeting budget-conscious consumers
• Figure 4.15: Rating of options for cutting costs and developing lower price products
• Figure 4.16: Expectations of changes in marketing and NPD expenditure during recession
• Figure 4.17: Innovation in packaging
• Figure 4.18: Out-of-home share of total meal occasions (% of annual occasions), Europe and US, 2008
• Figure 4.19: Meals for out-of-home consumption
• Figure 5.20: Rating of importance of consumer trends over next five years
• Figure 5.21: Rating of impact of downturn on NPD by region
• Figure 5.22: Key positionings by year for all food and drinks products (% share of launches), 2007-2009

List of Tables

• Table 1.1: Quarterly real GDP growth in Europe, the US and Japan, 2008-Q2 2009
• Table 1.2: Unemployment rates in Europe, the US and Japan, % of adults, September 2008-June 2009
• Table 1.3: Monthly changes in food prices, EU economies (%), August 2008-July 2009
• Table 3.4: Growth in discounter share of European grocery market value, 2003-08
• Table 4.5: Out-of-home meal occasions, Europe and US (occasions bn), 2003-2008
• Table 5.6: Impact of outlook scenarios for developed economies on grocery sector

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