© Worldpanel TM division of TNS 2009 Edward Garner Communications Director Worldpanel – UK Middle-Years Consumers Staverton Park – July 2009

© Worldpanel TM division of TNS 2009 Agenda What are we like? How we shop What we buy How we eat Nutrition – Health v Hedonism Impact of the Recession

© Worldpanel TM division of TNS 2009 Agenda What are we like? How we shop What we buy How we eat Nutrition – Health v Hedonism Impact of the Recession

© Worldpanel TM division of TNS 2009 Agenda What are we like? How we shop What we buy How we eat Nutrition – Health v Hedonism Impact of the Recession

© Worldpanel TM division of TNS 2009 Standard Definitions BMI = Weight / (Height) 2 = Kg / m 2 BMI <18.5Underweight BMI Healthy BMI Overweight BMI 30Obese

© Worldpanel TM division of TNS 2009

Lifestyle Indices - Age Indexed on All Households 52 w/e Jun

© Worldpanel TM division of TNS 2009 Lifestyle Indices - Age 65+ Indexed on All Households 52 w/e Jun

© Worldpanel TM division of TNS 2009 Agenda What are we like? How we shop What we buy How we eat Nutrition – Health v Hedonism Impact of the Recession

© Worldpanel TM division of TNS 2009

Agenda What are we like? How we shop What we buy How we eat Nutrition – Health v Hedonism Impact of the Recession

© Worldpanel TM division of TNS 2009

Agenda What are we like? How we shop What we buy How we eat Nutrition – Health v Hedonism Impact of the Recession

© Worldpanel TM division of TNS 2009 Worldpanel on-line questioning Source: TNS Worldpanel On line Interviews March 2008 A year ago Consumers claimed that if forced to, the first thing they would cut down on would be eating out Eating out Clothing & Footwear Alcohol & Tobacco Music Entertainment SkyTV Mobile phone Leisure facilities Miscellaneous Housing/hhold bills Food & drink Transport Petrol Health/PersnlCare/Toil 1 st choice 2 nd choice If you were now forced to, which of the following items would you actually cut back spending on ?

© Worldpanel TM division of TNS 2009 % Change in Heads through the door Source: NPD GROUP/ CREST By the end of last year we were voting with our feet as the number of us eating out in pubs and restaurants declines YonY Qtr change % Ch in Traffic

© Worldpanel TM division of TNS 2009 Total Foods Source: WorldPanel Usage As we are eating out less, so the number of in home meals has been on the increase Billions of Occasions 1 in 4 meals

© Worldpanel TM division of TNS 2009 Total Foods Source: WorldPanel Usage 1 in 4 meals are consumed by 45-64s % Occasions

© Worldpanel TM division of TNS 2009 In Home Meals Lunch, Teatime and Evening Meal Source: WorldPanel Usage Homemade Ms Meal Occasions Homemade meals in particular are showing recent growth +7%

© Worldpanel TM division of TNS 2009 In home foods Source: WorldPanel Usage As the Recession has kicked in, 45-64s are one of the fastest growing consumers of home made food Millions of Meals featuring something home made +0.7% +3.2% +4.2% Growth for s vs May 2008

© Worldpanel TM division of TNS 2009 In Home Foods 12 me Feb 09 Source: WorldPanel Usage Key Foods for 45-64s % Consumption by 45-64s

© Worldpanel TM division of TNS 2009 Is it party time when the kids leave?

In Home Foods 12 me Feb 09 Source: WorldPanel Usage Once the kids are gone its time for a fry up and less pasta, cooking sauces and chips Foods more likely to be consumed by 45-64s in households without kids Foods more likely to be consumed by 45-64s in households with kids Index of foods consumed by 45-64s in HH with kids vs HH without kids

© Worldpanel TM division of TNS attitudes Study Source: WorldPanel Usage 45-64s are the less likely to be Vegetarian … % Vegetarian

© Worldpanel TM division of TNS 2009 … But they are cutting back on meat % Eating Less meat 2008 attitudes Study Source: WorldPanel Usage

© Worldpanel TM division of TNS s like to make their breakfast slightly healthier % having on their breakfast cereal 2008 attitudes Study Source: WorldPanel Usage

© Worldpanel TM division of TNS s still like a drink … % Teetotal 2008 attitudes Study Source: WorldPanel Usage

© Worldpanel TM division of TNS 2009 … But tend not to smoke % Smoking 2008 attitudes Study Source: WorldPanel Usage

© Worldpanel TM division of TNS 2009 Activity wise, 45-64s prefer Gardening % taking part in each week 2008 attitudes Study Source: WorldPanel Usage

© Worldpanel TM division of TNS 2009 Are you getting your x a day? In climates such as the UK, we should drink approximately 1.2 litres (6 to 8 glasses) of fluid every day to stop us getting dehydrated

1 in 3 of us claim to be hitting the 5-a-day target. Similar level for Dairy but we are well behind on Wholegrain and Water How many portions of the following do you normally eat or drink in a day? 6 m/e Nov08 TNS WorldPanel Usage = % Hitting Target 5338= Recommended Target

The reality is that only 1 in 10 of us now hitting the target Average number of fruit & veg portions consumed per day TNS WorldPanel Usage

© Worldpanel TM division of TNS 2009 Only 65+s have a higher score for 5-a-day consumption than 45-64s Average number of fruit & veg portions consumed per day TNS WorldPanel Usage

© Worldpanel TM division of TNS 2009 Agenda What are we like? How we shop What we buy How we eat Nutrition – Health v Hedonism Impact of the Recession

© Worldpanel TM division of TNS 2009 Conundrum The conundrum on health is that as consumers, we cite health as the reason for our choice of meals twice as often as we did 10 years ago. Yet as a nation, our obesity levels have increased by 50% over the same period – indeed, they have doubled since the mid- 1980s.

12 year trend ENJOYMENT 40% HEALTH 22% PRACTICALITY 38% % Servings BSE, Foot & Mouth, Sudan 1, Child Obesity, Jamie Oliver, Bird Flu, Supersize me, Salt & sugar content, Functional Foods, 5 a day, Fruit for schools Organics/ premium, Finest, Taste the difference, Sharing, Café culture, Eating out, Debit Credit, Treating Ready Meals, Light meals, Snacking, Budget, Microwave, Individual portions, Quick to cook % 55% 34%

© Worldpanel TM division of TNS 2009 Salt The TNS Worldpanel research shows that UK households on average buy the equivalent of nine 750g packs of salt a year. However, 87% of that 6.75kg of purchased salt is bought as an ingredient in other products. In other words, only 9% of our sale intake is in the form of salt added to a finished meal or in cooking. Such a situation accounts for the reason why so much government effort is directed towards food manufacturers reducing the level of salt in their products. Not everyone is equally bad, though. The statistics show that 10% of households account for 24% of salt purchased – so there would appear to be significantly high use in certain households. Further analysis shows these tend to be smaller households (arguably more reliant on prepared/packaged foods) and older households (for similar reasons plus perhaps a lifestyle reason that they habitually tend to add salt to their meals).

Energy, unsurprisingly flat profile Energy, Index of purchasing composition vs Volume

Protein clearly biased towards older, post family groups Protein, Index of purchasing composition vs Volume Fresh Red Meat & Eggs

Fibre, primary bias towards Pre Family groups Fibre, Index of purchasing composition vs Volume Veg/Fruit – (pre packed), Frozen prepared food

Sugars, greater bias towards oldest single elderly group Sugars, Index of purchasing composition vs Volume Fruit Sugar Biscuits Breakfast Cereals

Fat, similar profile to Protein Fat, Index of purchasing composition vs Volume Fresh Red Meat Yellow Fats

Saturated Fats, clear lifestage progression, biased towards oldest groups Sat Fat, Index of purchasing composition vs Volume Fresh Red Meat Yellow Fats Fresh Red Meat Biscuits

Salt, again, biased towards oldest groups Sodium, Index of purchasing composition vs Volume Table Salt Bread Table Salt

Similar pattern across all of the key focus nutrients Index of purchasing composition vs Volume

Fibre, Fruit and Vegetables the most marked discriminator Fibre, Index of purchasing composition vs Volume Fruit and Vegetables

Large bias towards the lowest social class groups Sugars, Index of purchasing composition vs Volume Biscuits Sugar

Fat biased towards lower socio-economic groups Fat, Index of purchasing composition vs Volume Biscuits Yellow Fats

More extreme picture on Saturated Fats, clearly lower socio economic groups less effective at managing diet Sat Fat, Index of purchasing composition vs Volume Biscuits Yellow Fats Biscuits Yellow Fats Frozen Confectionery

Bread and Table salt the key discriminating factors in high salt purchasing amongst the lower socio-economic groups Sodium, Index of purchasing composition vs Volume Table Salt Bread

Again, a consistent view across the three key nutrients Index of purchasing composition vs Volume

Obese homes high purchase of salt, saturates and fat Index of purchasing composition vs Volume

Waitrose – Impressive profile, increases in fibre Waitrose growth rates of Nutrients 52we Year on Year

© Worldpanel TM division of TNS 2009 Agenda What are we like? How we shop What we buy How we eat Nutrition – Health v Hedonism Impact of the Recession

© Worldpanel TM division of TNS 2009

Grocery Price Inflation – TNS Calculation Based on year-on-year comparisons of price paid for over 75,000 identical products including promotions and in the proportion that British households are purchasing them

Total RST – Key Dynamics to 14 June w/e 14 June 2009

Tesco Morrisons Sainsbury's Waitrose Somerfield M&S Asda Lidl Iceland Aldi Discount Retailers Premium Retailers Clear movement to the value end of the spectrum but Tesco is losing to Sainsburys more than to Asda. Total Grocery 12we 17th May 2009 Significant (Top 20) grocery switching flows

Switching through price tiers in the Big 4 Trading down a reality, but branded steals from standard OL Standard Own Label Branded Value Own Label Premium Own Label Switching limited to Big 4 retailers and 4 tiersTotal Grocery 12we 17 th May 2009 Switching through price tiers in the Big 4

© Worldpanel TM division of TNS 2009

Latest 12-wk % Change +29% +16% +56% +72%

© Worldpanel TM division of TNS 2009

Reminders

© Worldpanel TM division of TNS 2009 Reminders What are we like?

© Worldpanel TM division of TNS 2009 How we shop Reminders What are we like?

© Worldpanel TM division of TNS 2009 What are we like? What we buy Reminders How we shop

© Worldpanel TM division of TNS 2009 How we eat What are we like? Reminders How we shop What we buy

© Worldpanel TM division of TNS 2009 What are we like? Reminders Nutrition How we shop What we buy How we eat

© Worldpanel TM division of TNS 2009 Recession What are we like? Reminders How we shop What we buy How we eat Nutrition

© Worldpanel TM division of TNS 2009 Thank you