January 2008

Grocery Store Choice & Value for Money A Global Nielsen Consumer Report

Organic products are popular with shoppers, but considered Global consumers in two good valueNorth vote Europeans and for money too expensive, with one #1 influencercost grocery store choice Americans citing of as the main reason for not Five in six organics. buying shoppers claim good value more important than range, location, Functional foods are most popular in North America, with The new rules for retailing success Perception, Selection, whole grain, high bre foods and cholesterol-reducing oil the Location On a scale of 1 (low) to 5 (high), how important are following factors when you are deciding where to do The rules of the retailing game seem to your grocery shopping? - Top 10 Good and margarinescriteriabe changingthestores leading dramatically Functional Food ranking.value for money as consumers re-evaluate their for choosing the Europeans reject the majority of functional foods to choose natural and full avoured foods over low calorie options.
4.57 4.56 4.54 4.52 4.52 4.5 4.5 4.49 4.49
Philippines Singapore Portugal Germany India Austria South Africa Malaysia Turkey Base: All respondents

convenience & environmental friendliness

they spend their money in. According to a recent survey conducted by The Nielsen Company, the Location, Location, Location mantra used by retailers as the critical success factor may need to be revised. Globally, consumers have revealed that Good Value for Money is now the most important factor in determining where they buy their groceries.

(point score)

4.48

Italy

Organic products remains one of the most sought-after food categories in Europe and On a scale of 1 (low) to 5 (high), how important are the following factors but high prices and minimal North America when you are deciding where to do your grocery shopping? - Global average (point score) selection and/or lack of availability remain the biggest obstacles to their further growth, according to the latest Organics and Functional Food survey from The Nielsen Company released at ANUGA today.
4.32 3.78 3.53 3.2 2.71

Organic growth continues

Organic Value Sales
+19%

% of Organic Sales to Total Category

% Sales Growth

According to the Nielsen survey, one in two Europeans and

Base: All respondents

Good value for money

Better selection of high quality brands and products

The one closest

The most convenient/easy parking

Uses recyclable bags and packaging

Conducted twice-a-year among 26,486 internet users 07 vs 0647 in +20% Produce 4.1 22% 1,475 markets from Europe, Asia Pacific, the Americas and the Middle Meat, fish, poultry 3.1 22% 1,238 East, Nielsen most recently surveyed consumers on the factors Dairy 2.9 19% 1,032 that influenced their choice of grocery store. In addition to Chilled 2.0 19% Good Value for Money, the Nielsen survey asked consumers Bakery 1.5 13% to rank the relative importance of organic 1.3 of other features, Total defined a number 19% including: Better Selection of High Grocery 1.2 Brands and Products; Quality 16% 20 8 - 05 19 - - 06 18 - 8 - 07 the -Closest8Location; the Most Convenient/Easy Parking; and the Counter deli 0.8 3% Years Ending 0.6 Frozen 3% use 74%Recyclable Bags and Packaging. of 76% 83%
2004 2005 2006

Penetration

BWS Organics market - UK

0.2

19%

North Americans say the main reason they dont buy organic is simply because its too expensive. In many markets, from the UK to the Nordics, demand for organic products can Nielsen found an overwhelming eighty-five percent of the exceed supply, which is why Good Valuemost Money the most worlds consumers ranked the cost of for organic important beyond the reach of the average consumer. products isconsideration when choosing a grocery store, with the most avid value-seekers hailing from the Philippines, Singapore, Portugal, Germany, India and Austria.

Consumers clearly associate Organic with personal health and wellness the most important lifestyle trend of this decade. According to the survey, one in two (48%)

European consumers and 57 percent of North Americans

say the main reason they choose organic products is because its healthier for me. Only one in seven Europeans (16%) said they bought organic products because its better for my children or because its better for the environment.

1 2

Location is still important Highest ranking in the European region for organics are

Greek (67%) and is still of consumers (60%) who said they a Where you retail Spanish critical importance but only from market selection perspective; the healthier for me while buy organic products because its findings clearly suggest that the in of the retailing game changed organic because its one rulesve Portuguese consumers buy depending on where you retailed. For instance, the Nielsen survey found that Malaysian healthier for my children. In the renowned green and shoppers prefer supermarkets with the most convenient/easy environmentally-friendly Nordic countries of Finland,like the parking, South Koreans, Indonesians and Germans supermarket closest Denmark, the main reason consumers Sweden, Norway andto them, Russians and Indians seek out supermarkets offering a better selection of high quality while buy organics is because its better for the environmentbrands and products, while Filipinos and Singaporean top global one in four (19%) Dutch consumers buy organic because its rankings for placing most importance on getting good value for kinder to animals. money. This unique global snapshot of shopping habits and the changing In the Nordics where demand for organics exceeds supply, motivations behind grocery shopping behaviour adds greater Nielsens Health andshoppers demand from grocery retailers dimension to what Organics report released in Sweden earlier this year cited a signicant increase in awareness for today. These important differences in shopper preferences across regions and countries consumers, yet the selection role the environment by Swedishare likely to have a significantof in determining retailer success many categories. Consumers organic products is limited in with the increasing consolidation and globalization of the retail industry. tell us that if these products were readily available and The second during their shopping trip - the would easily foundmost important attribute for theyworlds shoppers was a retail outlet that offered a Better Selection of High Quality denitely choose organic products, said Patrick Dodd, Brands and Products. These results chart the evolution of the President, ACNielsen Europe, e Nielsenappears to be what grocery shopper as well. Todays shopper Company. retailing pundits aptly refer to as The schizophrenic shopper - shoppers that expect the best of both worlds from retailers today. On the one hand, shoppers are inclined to be bargain By focussing functional and organic food on hunters and demand good value for their grocery dollar, and the other, they also expect retailers to stock actual and at Anuga we are responding to a wide selection of high quality brands. This dual demand indicates that the same important aspects of of the cheap in some categories consumers want the cheapest current demands. and the best of the best scope The international in others.of Anuga will

On a scale of 1 (low) to 5 (high), how important are the following factors when you are deciding where to do your grocery shopping? - Better selection of high quality brands and products (point score)
4.2 3.97 3.81 3.73 3.53 3.78

EEMEA

Latam

Asia Pacic

North America

Europe

Global Average

Base: All respondents

In Denmark, organic sales havesupermarket in the last year. Ranking highest for choosing a grown 16% that offers a Better Selection of High Quality Brands and are gaining greater As in other countries, organic choicesProducts were consumers in the worlds booming economies of Russia (93%), India (79%) shares in the categories where they are oered, but are also and China (78%) as well as the emerging Baltic countries of being introduced into new categoriessending a clear message to Latvia (78%) and Lithuania (77%) that previously had no organic oering.in or entering those markets. retailers operating Among those who say they never purchase organic products, the main reason for not to 5 (high), howbecause they the On a scale of 1 (low) purchasing is important are dont percent citeand products (point score) brands too expensive.
4.62

2 3

following factors when you are deciding ts (53%) and 35 believe they oer additional health benewhere to do your grocery shopping? - Top 10 Better selection of high quality

drive the development of both sectors immensely.

Wolfgang Kranz, Executive Vice President Koelnmesse GmbH

In the UK, demand for4.15 4.15 produce4.1 increased around organic 4.13 has 4.05 4.04 4.02 4.23 4.2 for fresh fruit and vegetables where demand is currently outstripping supply. Per capita, the UK is the worlds in the past year.
Russia India

twenty percent year-on-year for the past two years, particularly

biggest market for organics, with 1.4 billion organic sales

China Latvia Lithuania UAE Philippines Vietnam South Africa Chile

Base: All respondents

Evidence that products are in shopper preference Organic reflects differencesinstance,popular with shoppers,tobut considered across countries is mounting. For foreign retailers On a scale of 1 (low) 5 (high), how important are the following factors when you looking expensive, Baltic markets would two too to enter the emergingwith one in be well Europeans andoneare deciding where to do your North score) grocery shopping? - The closest (point advised to consider the fact that local consumers dont react to promotions and price discounts much other countries. Americans citingascostasas the main reason for not Instead, brand reputation, quality and buying habits are more buying organics. ShopperTrends survey for important. Earlier this year, Nielsens
3.72 3.62 3.58 3.48 3.45 3.53

Functional foods are most popular in North America, with whole grain, high bre foods and cholesterol-reducing oil As large numbers of consumers in fast-growing, emerging and margarines leading the Functional Food ranking.
EEMEA Asia Pacic Latam North America Europe
Base: All respondents

the Baltics revealed that consumers are only inclined to buy promotional items when they already like and trust a brand price promotions and discounts are simply not enough to attract shoppers to a specific retailer in a highly competitive and concentrated retailer environment.

Global Average

markets, see their disposable incomes rise and attain newly acquired, discerning tastes, they seek premium international grocery products in their shopping baskets and head to supermarkets with a better offering of high quality, branded products. Typically, this forms the underlying basis for the high degree of correlation between an increase in per capita Gross Domestic Product and an increase in the share of market that goes products Modern Trade, i.e. Supermarkets Organic through theremains one of the most and Hypermarkets.

Europeans reject the majority of functional foods to choose way With consumers becoming more difficult to read, the in which they define notions such as Good Value natural and full avoured foods over low calorie options. becomes
sought-after food categories in Europe and North America but high prices and minimal Access and selectionEase - stilllack of availability remain and/or important but no longer the only differentiators the biggest obstacles to their further growth, In a world where all retailers choose locations that are according to the latesttravel to in terms of parking and accessible and convenient to Organics and Functional related amenities, location ceases to be the only differentiator Food survey from The Nielsen Company and is now less important than value for money and selection released at ANUGA today. of high quality products and brands.

What Good Value means to consumers - The Price, Promotion and Perception triple play

critically important for retailers to understand. For those consumers who claimed Good Value as their most important consideration, Nielsen went on to ask how they defined it. Organic growth continues Their answers revealed that creating the image of Good Value % of Organic Value Sales for a retailer would entail employing Organic tripleTotal Category the Sales to play strategy % Sales +19% Growth of Price, Promotions and Perceptions to attract consumer07favor vs 06 +20% Produce 4.1 22% over other retailers. 1,475
1,238 1,032 Meat, fish, poultry Dairy 3.1 2.9

22% 19%

Chilled 2.0 Price and Promotion - The importance of giving shoppers19% a Bakery 1.5 13% good deal

Choosing a supermarket because its close to where they live According to the Nielsen survey, one in two Europeans and (Location) - and Convenient/Easy Parking ranked third and North in importance on the Nielsen list. The Closest store was fourth Americans say the main reason they dont buy organic is simply becauseto EEMEA and Asia Pacific consumers, from most important its too expensive. In many markets, and of least importance to Europeans. the UK to the Nordics, demand for organic products can exceed supply, which is why the cost of most organic products is beyond the reach of the average consumer.

Of those consumers who rated good value for money as16% very 1.2 Grocery - 8 - 05 19 or20quite Years- 8 - 06 18 - 8 - 07when deciding where to do their grocery important Counter deli 0.8 3% Ending shopping, 76% in four said it was important that a supermarket three 83% 0.6 Frozen 3% 74% 2004 2005 0.2 BWS 19% ran a lot Penetration 2006 of promotions and regular price discounts, and seventy Organics market - UK percent said it was important the store had a reputation for being cheaper than competitors - even if, in reality, this was not the case. In third place was prices published in the stores Consumers clearly associate research and compare prices across own leaflets, followed by I Organic with personal health retailers, price the most important lifestyle trend of this and wellness reductions offered through loyalty/store cards and stores According to the survey, day low prices. decade.that promised to have everyone in two (48%) European consumers and 57 percent of North Americans say the main reason they choose organic products is because its healthier for me. Only one in seven Europeans (16%) said they bought organic products because its better for my children or because its better for the environment.

Total defined organic

1.3

19%

1 4

Highest ranking in the European region for organics are

how important are the following - Global average (Very

In (67%) what stores consumers (60%) who said Greekdecidingand Spanishoffer good value for money, they

buyimportant/Somewhat important) healthier for me while organic products because its one in ve Portuguese consumers buy organic because its healthierhas a reputation for being cheaper thanIn the renowned green and The store for my children. their
competitors The store runs a lot of promotions and regular price discounts 70% 62% The prices published in the store's own leaets, yers, etc environmentally-friendly Nordic countries of Finland, 75%

Promotions and regular price discounts appealed most to bargain-hunters. Nearly ninety percent of Portuguese and Taiwanese shoppers said they shopped in stores which offered promotions and price discounts. Over eighty-five percent of Malaysian, Singaporean and Brazilian shoppers agreed with them.

60% I research Sweden,and compare pricesand retailers Norway across Denmark, the main reason consumers Price reductions the retailers offer their Store card holders The store promises to have every day low prices 57%

buy organics is because its better for the environment while 57% oneThe store carries(19%) Dutch consumers buy organic because its in four a lot of Private Label products that are 54% cheaper
Friends to where to get the best kindertell meanimals. value 50%

In deciding what stores offer good value for money, how important are the following - Top 10 The store runs a lot of promotions and regular price discounts (Very important/ Somewhat important)
89% 89% 87% 87% 86% 82% 82% 81% 81% 80%

In the Nordics where demand for organics exceeds supply, Nielsens Health and Organics report released in Sweden earlier this year citedcountry cant increase in awareness for Again, regional and a signi differences prevailed. European shoppers rated stores that run a lot of promotions and regular the environment by Swedish consumers, yet the selection of price discounts and limited in many categories. Consumers organic products is that have a reputation for being cheaper as the two best indicators of Good Value. tell us that if these products were readily available and Asia Pacific shoppers who rated good value for money as easily found during their shopping trip - they would very or quite important when deciding where to go grocery denitely defined prices published in the stores own promotional shopping choose organic products, said Patrick Dodd, President, ACNielsen Europe, to have every day low prices as material and the stores promise e Nielsen Company. their most important Good Value indicator. Asian shoppers were also most likely to research and compare prices across retailers (although over three quarters of Turkish, Brazilians, By focussing functional andthey also research and Polish and Portuguese consumers say organic food compare prices). are are also most to to listen to wordat Anuga we Asiansrespondinglikelyactual and of-mouth and friends who tell them where to get the best value. important aspects of current demands. that Shoppers in EEMEA and Europe were most likely to believe price international scope of cards are will The reductions through store/loyalty Anuga Good Value.

Base: Those rated good value for money as very or quite important when deciding where to do grocery shopping

shares in the categories where they are oered, but are also
Base: Those rated good value for money as very or quite important when deciding where to do grocery shopping

being introduced into new categories that previously had no organic oering.

2 5

Among those who say they never purchase organic products, the main reason for not purchasing is because they dont percent cite too expensive. believe they oer additional health benets (53%) and 35

drive the development of both sectors immensely.

In deciding what stores offer good value for money, how important are Vice President Wolfgang Kranz, Executivethe following - The store runs a lot of Koelnmesse GmbH and regular price discounts (Very important/ promotions Somewhat important)
82% 80% 74% 71% 75% 67%

In the UK, demand for organic produce has increased around for fresh fruit and vegetables where demand is currently outstripping supply. Per capita, the UK is the worlds in the past year.

twenty percent year-on-year for the past two years, particularly

biggest market for organics, with 1.4 billion organic sales

Europe

Asia Pacic

EEMEA

North America

Latam

Global Average

Base: Those rated good value for money as very or quite important when deciding where to do grocery shopping

As in other countries, organic choices are gaining greater

sia an l ng es ce e il or az iw ay Ko ee in nd ga rtu ap pp rla Br Ta Po M ng ng ili Ho Ph Si et he Po Gr al

la

nd

In Denmark, organic sales have grown 16% in the last year.

Interestingly, there are some consumers whopopular are not attracted Organic products are One in four (22%)with shoppers, butgood value for money, how considered to promotions and regular price discounts. In deciding what stores offer important are and North store has Top 10 The Finnish expensive, with one in two too shoppers said price promotions and discounts were not Europeansthe following -than their competitorsa(Very reputation for being cheaper important and the emerging European economies of Russia, important/Somewhat Hungary and Estonia citing cost as the main reason for important) Americansshared the view. not The reasons for can sometimes buying thisof its media. Inrelate to a markets maturity organics. Russias urban centers for and the evolution
90% 85% 84% 82% 81% 81% 79% 78% 78%

77%

Functional foods are most popular in North America, with whole grain, high bre foods and cholesterol-reducing oil and margarines leading the Functional Food ranking.
Philippines Singapore Indonesia Greece Malaysia Taiwan Mexico India

instance, retail and media trade are both highly fragmented and its difficult for consumers to receive and access information on price discounts and promotions. This creates a situation where Russian shoppers arent interested in promotions and regular price discounts due to a lack of awareness simply because advertising and promotional channels are still underdeveloped.

UAE

Chile

Base: Those rated good value for money as very or quite important when deciding where to do grocery shopping

Europeans reject the majority of functional foods to choose Reputation - Good value is a matter of the mind Other low Value In-store activity, price natural and full avoured foods over elements ofcalorie options.(EDLP) comparison, loyalty cards and Everyday Low Prices
A stores reputation for being cheaper than their competitors was the second most influential factor in what constitutes Good Value in consumers minds. The Organic products remains powerof the most is very one of perception important especially among South East Asian shoppers. Ninety sought-after food categoriespercent of Singaporeans, percent of Filipinos and over eighty in Europe and Indonesians, Malaysians and Taiwanese are influenced by price North America but high prices and minimal perception, along with eighty-two percent of Greeks and three selectionIrish and Spanishof availability remain and/or lack shoppers. out of four Adding further insight into global shopping habits, sixty-two percent of consumers said they were influenced by prices Organic growth continues published Value supermarkets in their of Organic Sales to Total Category by Sales own in-store promotional % Organic material. % Sales
+19%
1,475
Growth 07 vs 06

+20%
1,238 1,032

Produce Meat, fish, poultry Dairy 3.1 2.9

4.1

22% 22% 19%

the biggest obstacles to their further growth, Interestingly, least concerned about a stores price perception according to the latest Organics and Functional as being cheaper were the Danish, Finnish and German consumers. Food survey from The Nielsen Company released at ANUGA today.
According to the Nielsen survey, one in two Europeans and

In deciding what stores offer good value for money, how important are the following - TheChilled published in the 19% prices 2.0 Bakery 1.5 stores own leaflets, flyers, etc (Very important/Somewhat 13% important) 1.3 Total defined organic 19%
71%

Grocery 19 - 8 - 06
67% 18 - 8 - 07 61%

1.2 0.8 0.6 48% 0.2

62%

16% 3% 3% 19%

20 - 8 - 05

Years Ending

Counter deli 59% Frozen BWS

74%
2004

76%
2005

83%
2006

Penetration

North Americans say the main reason they dont buy organic is simply because its too expensive. In many markets, from the UK to the Nordics, demand for organic products can exceed supply, which is why the cost of most organic products is beyond the reach of the average consumer.
Asia Pacic Europe

Organics market - UK

EEMEA

North America

Latam

Global Average

Consumers clearly associate Organic with personal health

Base: Those rated good value for money as very or quite important when deciding where to do grocery shopping

and wellness the most important lifestyle trend of this decade. According to the survey, one in two (48%)

European consumers and 57 percent of North Americans

say the main reason they choose organic products is because its healthier for me. Only one in seven Europeans (16%) said they bought organic products because its better for my children or because its better for the environment.

1 6

Four in ten global consumers take region into their own Highest ranking in the European mattersfor organics arehands and ensured they got good value by researching and comparing Greek (67%) and Spanish consumers (60%) who said they prices across retailers. This was an important task for the Turks buy organic products because its healthier for (78%) whilethe (84%), Filipinos (79%), Brazilians and Poles me and one in ve Portuguese consumers buy organic because its Portuguese and Thais (77%). healthier for my children. In the renowned green and environmentally-friendly Nordic countries of Finland,

Seventy percent of US shoppers who rated good value for money as very or quite important when deciding where to go grocery shopping rank a store that promises to have everyday low prices as an indicator of Good Value. This is supported by other Nielsen research in the USA that shows the importance of good value and low prices resonates much more with lower income households. More affluent households, on the other hand, regard quality of fresh produce, meat and seafood and selection above good value. Despite this, the success of warehouse club retailers also points to the importance affluent consumers place on Value as well.

Sweden, Norway and Denmark, thevalue for money, In deciding what stores offer good main reason consumers
compare prices across retailers (Very important/Somewhat

buyhow important are the following - Top 10 environment while organics is because its better for the I research and oneimportant) in four (19%) Dutch consumers buy organic because its kinder to animals.
84% 79% 78%

77% 77% 74% 74% In the Nordics where demand for organics exceeds71% 71% supply, 78%

Nielsens Health and Organics report released in Sweden

earlier this year cited a signicant increase in awareness for

the environment by Swedish consumers, yet the selection of tell Turkeythat if these products were readily available andRussia us Philippines Brazil Poland Portugal Thailand Greece Hong Kong Indonesia easily found during their shopping trip - they would
Base: Those rated good value for money as very or quite important when deciding where to do grocery shopping

organic products is limited in many categories. Consumers

In Denmark, organic sales have grown 16% in the last year. shares in the categories where they are oered, but are also being introduced into new categories that previously had no organic oering.

In deciding what stores offer good value for money, how important are the following - Top 10 The store promises to have every day low prices (Very important/Somewhat important)

As in71% 70% 69% organic choices are gaining greater 63% other countries, 69% 68% 65% 65% 65% 64%

denitely choose organic products, said Patrick Dodd, President, ACNielsen Europe, e Nielsen Company.

75% Taiwan

Over seventy percent of shoppers in Taiwan, Hong Kong and Philippines recognize value for money through price reductions offered through store/loyalty cards and organic considered By focussing functional andthey are alsofood an important good value item for the Portuguese (71%), Turks at Anuga we are responding to actual and and Lithuanians (68%).

Philippines US UK Among those who sayEgypt Singapore Ireland South organicZealand Australia they never purchase Malaysia New products, Korea

the main reason for not purchasing is because they dont

Base: Those rated good value for money as very or quite important when deciding where to do grocery shopping

believe they oer additional health benets (53%) and 35 percent cite too expensive.

important aspects of current demands. The international scope of Anuga will In deciding what stores offer good drive the development ofvalue for money, how both important are the following - Top 10 Price reductions the retailers offer their Store sectors immensely.card holders (Very important/
Somewhat important)
73% 73%

Wolfgang Kranz, Executive Vice President Koelnmesse GmbH

71% 68% 68% 67% 65% 65% 65%

In the UK, demand for organic produce has increased around for fresh fruit and vegetables where demand is currently outstripping supply. Per capita, the UK is the worlds in the past year.

twenty percent year-on-year for the past two years, particularly

biggest market for organics, with 1.4 billion organic sales

Hong Kong Philippines Portugal

Turkey

Lithuania

Finland

France

Malaysia

Russia

Base: Those rated good value for money as very or quite important when deciding where to do grocery shopping

2 7

Private Label products are Organicpreferred by the public popular with shoppers, but considered While expensive, with one in Good tooone in two global consumers (54%) say that two Europeans and North Value means a supermarket would offer a wide range of In deciding what offer good Americans citing cost as the main reason thestoresnot Thevalue for money, how cheaper priced Private Label products, Europe clearly remains important are for following store carries a lot of Private Label products that are cheaper (Very important/ the leading global region for this fast growing and popular Somewhat important) buying organics. (78%), Portuguese (77%) sector. Greeks (82%), Germans

Functional foods are most popular in North America, with whole Nielsen survey, nine outbre foods and cholesterol-reducing oil grain, high of the top ten countries In the global who place the highest importance on Private Label range hail and margarines well aestablished the label leading private Functional Food ranking. from Western Europe where the
52% 49% 48% 46% Asia Pacic Europe EEMEA North America Latam

Italians and Spanish (72%) consumers say its important for them that a store carries a lot of Private Label products that are cheaper.

65%

54%

Global Average

Base: Those rated good value for money as very or quite important when deciding where to do grocery shopping

Europeans reject the majority of functional foods to choose natural and full avoured foods overdeciding whatcalorie options.how In low stores offer good value for money,
Organic products remains one of the most sought-after food categories in Europe and North America but high prices and minimal selection and/or lack of availability remain the biggest obstacles to their further growth, according to the latest Organics and Functional Food survey from The Nielsen Company released at ANUGA today.
According to the Nielsen survey, one in two Europeans and
important are the following - Top 10 The store carries a lot of Private Label products that are cheaper (Very important/ Somewhat important) Organic growth continues
82% Organic Value Sales 78% 77%

category is worth over twenty-percent of FMCG sales. It is worth noting, however, that in countries where a small number of retailers have a high market share, the critical mass exists to develop Private Label further.

% of Organic Sales to Total Category

72% 72% 71% 70% 69% 67% 59% vs 06 07
% Sales Growth

+19% +20%
1,238 1,032 1,475 Produce Meat, fish, poultry Dairy Chilled
ria ce ain an Ita

4.1 3.1 2.9 2.0

ce es la itz Sw er nd

22% 22% 19% 19% 13% 19% 16% 3%

ee

nd

ga

Bakery
he et N

1.5 1.3

ly

rtu

rm

rla

Sp

an

st

Gr

Au

Ge

Po

Base: Those rated good value for money as very or quite important when deciding where to do grocery shopping 1.2 Grocery

20 - 8 - 05

19 - 8 - 06
Years Ending

18 - 8 - 07

Counter deli Frozen BWS Organics market - UK

0.8 0.6 0.2

Ph

Total defined organic

Fr

ili

pp

in

74%
2004

76%
2005

83%
2006

3% 19%

Penetration

North Americans say the main reason they dont buy organic is simply because its too expensive. In many markets, from the UK to the Nordics, demand for organic products can exceed supply, which is why the cost of most organic products is beyond the reach of the average consumer.

Consumers clearly associate Organic with personal health and wellness the most important lifestyle trend of this decade. According to the survey, one in two (48%)

European consumers and 57 percent of North Americans

say the main reason they choose organic products is because its healthier for me. Only one in seven Europeans (16%) said they bought organic products because its better for my children or because its better for the environment.

1 8

About The Nielsen the European region for organics are Highest ranking inCompany

Greek (67%) and Spanish consumers (60%) who said they The Nielsen Company is a global information and media buy organicwith leading markethealthier for me while company products because its positions in marketing one in ve Portuguese consumers information because its information (ACNielsen), media buy organic (Nielsen Media Research), online intelligence (NetRatings green and healthier for my children. In the renownedand BuzzMetrics), mobile measurement, trade shows and business publications environmentally-friendly Nordic countries of Finland, (Billboard, The Hollywood Reporter, Adweek). consumers Sweden, Norway and Denmark, the main reasonThe privately held company is active in more than 100 countries, with buy organics is because its better for the environment while headquarters in Haarlem, the Netherlands, and New York, USA. one in four (19%) Dutch consumers buy organic because its For more information, please visit, www.nielsen.com. kinder to animals. In the Nordics where demand for organics exceeds supply, About ShopperTrends Nielsens Health and Organics report released in Sweden ShopperTrends, a service of cant increase in awareness for earlier this year cited a signiThe Nielsen Company offers indepth and complete analysis of the changing behaviour the environment by Swedish consumers, yet the selection of of shoppers in over 50 markets globally. It provides information organic products is limited in many categories. Consumers on where, when and how often people visit different outlet tell us that if these products were readily available and types, how they perceive the key retailers, and provides insights easily found duringshopping behaviour. - they would into key aspects of their shopping trip denitely choose organic products, said Patrick Dodd, President, ACNielsen Europe, e Nielsen Company.

In Denmark, organic sales have grown 16% in the last year. As in other countries, organic choices are gaining greater being introduced into new categories that previously had no organic oering. shares in the categories where they are oered, but are also

2 9

About the Global Online Consumer Survey

The Nielsen Global Online Consumer Survey is conducted twice a year to gauge consumer attitudes and organic a variety By focussing functional and opinions to food of topics and current affairs. The April 2007 survey was conducted at Anuga we are responding to actual and in 47 Markets: Argentina, Australia, Austria, Belgium, Brazil, importantChina, Czechof current demands. aspects Republic, Denmark, Egypt, Estonia, Canada, Chile, The international scope of Anuga will Hungary, Finland, France, Germany, Greece, Hong Kong, India, Indonesia, Ireland, Italy, Japan, Korea, drive the development of both Latvia, Lithuania, Malaysia, Mexico, Netherlands, New Zealand, Norway, sectors immensely. Philippines, Poland, Portugal, Russia, Thailand, Singapore, South Wolfgang Kranz, Executive Vice President Africa, Spain, Sweden, Switzerland, Taiwan, Turkey, UAE, United Koelnmesse GmbH Kingdom, US and Vietnam. The margin of error of the survey is +/- 4% for n=500 and +/- 3% for n=1000.

Among those who say they never purchase organic products, the main reason for not purchasing is because they dont percent cite too expensive. believe they oer additional health benets (53%) and 35

In the UK, demand for organic produce has increased around for fresh fruit and vegetables where demand is currently outstripping supply. Per capita, the UK is the worlds in the past year.

twenty percent year-on-year for the past two years, particularly

biggest market for organics, with 1.4 billion organic sales

www.nielsen.com
Copyright 2007 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are trademarks of The Nielsen Company.