1. Complete Canned Meals and Meats
March 2010

2. Key themes
How have manufacturer brands performed relative to own-label ranges?
Are consumer perceptions of canned meals and meats influencing their product choices?
Impact of rising food costs on the canned meals and meat category
How are manufacturers innovating to drive sales?
Key opportunities to enable canned meals and meats to expand their customer base
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3. Summary Baked beans experience growth
Value sales of canned meals and meats increased by 14.8% between 2007 and 2009 to reach an estimated £448 million in 2009
Baked beans have outperformed canned pasta and meat products, and experienced 23% growth between 2007 and 2009 to reach £365 million
Heinz maintains its dominant position
Heinz is a dominant force in the baked beans and canned pasta category, having grown share by investing in new product development, launching extensions and variants of existing product lines
It has also continued to invest in marketing support to promote their product ranges
Top product choices
Four fifths of consumers eat baked beans, and interest in the category has been helped by new product innovation and product reformulations in line with consumer demand
Corned beef is the main canned meat that appeals to consumers, with just over two fifths of consumers having purchased it in the last twelve months
Canned pasta meals are most popular among the lower income C2DE’s, and not ABs who prefer to prepare their meals from scratch
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4. Internal Market Environment
Increased pressure on consumers’ finances has led to a return to home cooked meals.
The greater focus on healthy eating comes from a greater adherence to healthy eating guidelines.
Consumers are reviewing and re-evaluating their product choices faced with more constrained shopping budgets, and are turning to lower-priced alternatives.
Character merchandising continues to play an important role in the canned pasta market, and continues to appeal to children
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5. Broader Market Environment
Rising food prices were exacerbated by rising raw material costs such as the price of aluminium, and increased animal feed prices pushing up meat prices
The Food Standards Agency (FSA) has been working with food manufacturers to reduce salt levels in food products
The number of women in full-time employment has continued to increase, resulting in a change in the way people live and the types of foods eaten
The UK’s changing population and lifestage structure will affect the demand for canned meals and meats
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6. Strengths and Weaknesses
An affordable range of products suitable for a wide range of tastes
An old-fashioned family of products tapping into significant eating occasions: weekday lunchtimes, weekday dinners and weekend lunches
Brand awareness and brand loyalty are extremely high in this market
Convenience – products can be stored until the consumer wants to use them due to their longer shelf life
Baked beans are an adaptable product that can be used for different meal occasion
Endless opportunities for new products to be introduced, expanding the existing customer base
Poor merchandising - retailers give very little attention to merchandising in this category and cross-category promotions remain unexploited
The canned meat market is heavily reliant on the over-55s, with the exception of meatballs which have a younger customer base
Canned pasta meals face competition from chilled ready meals and the growing microwaveable snack meal category
Poor image – consumer perception that they are of poorer quality and not as good for you as fresh and chilled products
Minimal above-the-line support with the exception of Heinz advertising for their product range
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7. Who’s Innovating ?
Branded manufacturers dominated new product launches in 2009, with Heinz focusing most its attention on the canned pasta category
Premiumisation has been a route adopted by canned meal and meat manufacturers to encourage consumers to trade up

8. Market Value and Forecast
Forecast of UK Retail value sales of complete canned meals and meats,
Source: Mintel
Sales growth has been maintained by the strong sales performance of the baked beans market
Future growth in the canned food market will be hampered by strong competition from other categories like microwaveable snack products and ready meals
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9. Complete canned meals and meats by segment, 2007-09
Segment Performance
Complete canned meals and meats by segment,
Source: Mintel
Baked beans have continued to outperform pasta, meat and poultry in the canned food category
Sales of canned pasta had been in decline since 2004 as they were losing their relevance for consumers who did not see them as nutritionally balanced
Canned meat products have not kept pace with trends in the fresh meat market, where issues of animal welfare and provenance play a larger part
© 2010 Mintel International Group. All rights reserved. Confidential to Mintel.

10. Manufacturers' share of the canned meals and meats market, 2009
Market Share
Manufacturers' share of the canned meals and meats market, 2009
Source: Mintel
Heinz has a significant presence in the baked beans and canned pasta category, having grown share by investing in NPD
Branson has continued its position in second place in the canned beans category: however it has not been as active as Heinz in NPD
Princes has maintained its top spot position in the hot canned meat category, helped by its use of promotional activity
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11. Canned Foods purchased
Types of canned meals and meats purchased in the last 12 months, December 2009
Base: 1,000 Internet users aged 16+
Baked beans are eaten by four fifths of consumers, as the leading brands have continued formulate their ranges in line with changing consumer demand
Corned beef is the main canned meat that appeals to consumers, with just over two fifths of consumers having purchased it in the last twelve months
Canned pasta meal appeal to a younger consumer target compared to canned meats, with macaroni cheese and canned pasta and sausage combinations appealing more to men
Source: Toluna//Mintel
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12. Frequency of consumption
Occasions when canned meals/meats are eaten, December 2009
Base: 941 internet users aged 16+who have purchased canned meals and meats in the last 12 months
Canned meats tend to be eaten as part of a weekday lunch
Canned meals in contrast are more likely to be eaten as part of a weekday dinner
“I eat baked beans more often than other canned meals because nothing comes close to their versatility. You can eat them at any time of the day either as a main meal or as a side dish”.
- Over-55 year-old ABC1 male
“I think tinned meats can be versatile, I use them for sandwiches for lunch or I blend tomatoes, red peppers, garlic, fry them and add cor year-old ABC1 female
Source: Toluna/Mintel
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13. Attitudes and Motivations
Agreement with Statements about canned meals and meats, December 2009
Base: 941 internet users aged 16+ who have bought canned meal and meats in the last 12 months
Source: Toluna/Mintel
The primary reason consumers buy canned meals and meats is for their extended use-by dates, offering them a convenient cheap meal
Consumers who include canned meals in the regular weekly shop have a male bias, and tend to be in full-time employment
A quarter of consumers tend to buy branded meals and meats, while just under a fifth feel there is no difference between the branded and own-label ranges
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14. The Consumer – Targeting Opportunities
Base: 917 internet users aged 16+ who have bought canned meals and meats in the last 12 months
Un-Canned
(55% of sample)
The Un-Canned, account for just over half of consumers, and are the most dis-engaged in the canned meals and meats category
They are not likely to be buying any canned meals or meats routinely, and are more likely to be buy canned meals and meats as a last resort when fresh or frozen varieties are not available
Canned Convenience
(23% of sample)
Canned Convenience are most likely to be buying canned meals and meats for their weekday dinner.
For them, canned meals and meats offer a cheap meal, and their purchase is not likely to be planned, but rather an impulsive last minute decision
Canned Faithful
(22% of sample)
Canned Faithful have an established habit of eating canned meals and meats, and so buy a wide repertoire of products in this category. These canned foods are eaten mainly for their weekday dinner and lunch.
Source: Toluna/Mintel
© 2010 Mintel International Group. All rights reserved. Confidential to Mintel.

15. Vivianne Ihekweazu Your contact Senior Consumer Analyst mintel.com
mintel.com
© 2010 Mintel International Group. All rights reserved. Confidential to Mintel.