1. Giles Fisher Head of Meal Solutions

2. Waitrose in numbers Market share 5.2% and growing
Gross sales €8.3 Billion sales
Branches 392 branches
Main branches 301
Convenience 62
Dedicated online 1
Motorway services 28
Export countries 58
Owned by the Partners 60,0000
Awards

3. What does Waitrose stand for?
1. Founded in 1904 by Waite Rose & Taylor
2. Needs of tomorrow
In branch
Convenience stores
Online
3. Waitrose way brief…

4. What makes Waitrose different?
Everyone is promoting British
But Waitrose is also about quality
Everyone now talks about supporting British Products
But Waitrose is about quality

5. Challenges in the UK market
Overall market is in decline due to

6. Retailer challenges Growth coming from Value and Premium
The ‘savvy’ shopper is here to stay
The market structure is changing dramatically in the UK. The ‘top end’ food retailers: Waitrose & M & S are performing well and at the other end of the market the discounters continue to show double digit growth. The result of this is the rest of the market is being squeezed in the middle with the traditional ‘big 4’ struggling.
The change in the UK market is driven by changes in the behaviour of the UK consumer. Shoppers are much more ‘savvy’ than they used to be:-
They are shopping around. Consumers are much more promiscuous than they used to be and will shop more often with a smaller basket size
The shopping visits are more planned than they used to be with consumers looking for value for money
Food waste is high on their agenda

7. Consumers buy less, but more often
Multichannel is the future
Convenience is key as consumers are getting busier
All the growth forecast in the UK market up to 2019 will come from 3 channels:-
Online +9.2%
Convenience +11.6%
Discount %
Sales in the superstores and hypermarkets will decline. Producers must ensure they have specific strategies for the different channels to ensure they capitalise on the growth in these channels
Consumers are getting busier which means less and less time is spent in the kitchen. In 1980 in the UK the average meal took 60 minutes to prepare by 2015 this had dropped to 32 minutes. Only 20% of families eat their evening meal together and the most popular meal is a sandwich! All of this means that producers that can offer time saving convenient solutions will be the winners.

8. Italian Food & Drink sales to the UK
2014 sales €2.8 Billion +0.87%
Italian share 6.4%
Dialogue
In 2014 sales of Italian products to the UK was €2.8 Million with a growth of 0.87%
6.4% of all Food and drink products sold in the UK are sourced from Italy
Largest areas:
Wine
Pasta
Tomatoes
Olive Oil
Cheese
Charcuterie
Source: ICE Italian Trade Commision based on Intrastrat coding info

9. Waitrose “Made in Italy” products
A selection of Italian products sold in Waitrose
Waitrose over trades on Italian products (versus your market share)
Due to Waitrose customers looking for Authentic products from around the world
Key over trade areas are:
Olive Oil
Olives & Antipasto
Charcuterie

10. Why do the UK love Italian products?
Food
Culture
Holidays
Style
Why do UK consumers like Italian products?
Cibo Italian food 3 of the top ten most popular dishes in the UK are Italian (Pizza, Lasagne & Spaghetti Bolognese)
Vacance Holidays Very popular for city breaks (Venice, Rome & Florence) 6 most popular place for British people to go on holiday
Cultura The imagery and the history is very popular in the UK
Stile Italy has a very Iconic style from Gucci or Armani, to Pininfarina or Ferrari and then into Alessi, Italian style appeals to the UK market

11. Requirements to supply the UK Own Label
Accrediation
Sourcing
Animal Welfare
Traceability
Authenticity
Packaging
Requirement for the supply of retailer branded
Accreditation UK retailers require all sites to be audited on an annual basis and keep records for all productions
Sourcing
Animals Need to come from a Animal Welfare accredited Scheme, to control diet, living standards and treatment
Traceability All ingredients need to come from ethical sourcing and be fully traceable back
Authenticity UK customers want to buy the real thing, so products need to come from the area
Packaging Packaging needs to be inspiring and fit for purpose

12. Waitrose Italian Salumi awarded “Good Sow Commendation” 2015
This involved in improving the farming standards by:
Natural bedding – straw
More space
Open Farrowing crates
No tail docking
2016 sees an application for the Good Pig Award – which would be the first to be awarded to a major producer in mainland Europe

13. Key Challenges/Threats to Italian producers in the UK
Deflation
Health
The UK retail market is currently experiencing deflation. This poses a potential threat as many consumers look for cheaper products which is not always compatible with the high quality Italian products being produced
UK consumers are more aware of health issues than ever before. This could pose a threat to Italian products which are not considered nutritionally balanced e.g. products with a high fat or salt content. Low fat, low salt and ‘free from’ products are all significantly growing. On the plus side the image of the healthy mediterranean diet could benefit Italian products which are perceived as healthy e.g. Olive oil

14. Impact from World Health Organisation announcement on processed meat
Ham
Sausages
Bacon
2015
2016

15. How to succeed in the UK market Own Label
High Quality products
Authentic
From the Region
With interesting stories
Supported by
Approval factories
Welfare standards on meats
Traceability on all raw materials
Knowing how the staff are treated
Packaging
UK offers
Central distribution
Growing market
Growth in Premium products