BEANS REGULAR ANALYSISYEAR TO 04/10/2014

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1. Market Overview

2. Demographics

3. Retail Health Situation by State

Agenda

This analysis is part of a vegetable consumer purchase data project funded by HAL using the vegetable levy and matched funds from the Australian Government.

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Market OverviewBeans

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HIGHLIGHTS

RECOMMENDATIONSContracting buyer base is of a concern potentially due to reduced awareness for the crop and trend of rising recalled spend (Colmar Brunton June 2014 vs previous wave).

Arrest the loss in households across all other lifestages apart from Senior Couples. Understand barriers and reasons for lapsing. Are reasons related to value, preparation knowledge, or versatility of the crop?

Given Coles and Aldi performance is behind that of Woolworths and Non-Supermarkets, investigate which in-store levers are lagging in this retailer compared to the other banners.

Beans represent 2.1% of the total value and 1.3% of total volume market share. It’s buyer base has reduced this year, however, buyers are spending more in each trip.

Senior Couples are becoming more important to Beans. They account for 27% of volume share while comprising 19% of the buyers and have further increased their volume share this year. This is mainly driven by addition of buying households and an increase in their number of trips.

Smaller households (1-2 members) are the core buyers for Beans, accounting for 53% of the volume sales and gaining contribution.

Coles has witnessed growth in value sales of Beans however, declined in terms of volume. Woolworths accounting for almost one-third of both value and volume sales has grown in both the metrics.

Almost 55% of Woolworths shoppers who buy Beans, prefer to purchase it at Woolworths stores, whereas this conversion rate is 53% for Coles.

Eastern Sea Board accounts for more than three-fourth of Beans’ national sales however they have lost buying households this year. Victoria accounting for 26% of value sales of Beans, is affected by both dwindling buyer base and average consumption.

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Share of Market VolumeTotal VegetablesAustralia

Share of Market ValueTotal VegetablesAustralia

Beans represents 1.3% of volume and 2.1% of value market share, this year. Stable share position versus last year.

Source: Nielsen Homescan

Last year This year

22.8% 22.5%

23.0% 22.5%

10.5% 10.9%

11.0% 10.7%

10.4% 10.1%

5.5% 5.4%

5.6% 5.8%

4.6% 5.2%3.1% 3.2%2.1% 2.3%1.3% 1.3%

Last year This year

38.3% 38.8%

12.1% 11.2%

4.8% 4.5%

13.9% 14.6%

4.4% 3.9%3.8% 4.2%3.0% 3.1%2.3% 2.5%7.9% 7.6%7.5% 7.4%

2.1% 2.1%

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7T. Vegetables Beans Sweet Corn Carrots Sweet Potato Broccoli Asian Vegetables

357.9

13.1 13.7 18.0 13.0 19.5 10.4

380.9

14.5 13.7 18.2 14.9 21.9 11.2

T. Vegetables Beans Sweet Corn Carrots Sweet Potato Broccoli Asian Vegetables

99.6

55.8 55.2

94.4

64.277.2

34.0

99.7

54.5 53.6

94.3

64.976.4

33.1How many

Households buy annually?

How much (Kg) do they buy per year?

How much ($) do they spend per year?

This YearLast year

Source: Nielsen Homescan

Beans lost 108,180 buying households this year, however, the average spend has increased compared to last year. There has been no change in consumption.

T. Vegetables Beans Sweet Corn Carrots Sweet Potato Broccoli Asian Vegetables

89.4

2.1 3.39.9 6.4 5.3 1.6

88.2

2.1 3.210.2 7.1 5.1 1.7

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How much ($) do they spend per occasion?

How much (Kg) do they buy per occasion?

How often do they buy annually?

Source: Nielsen Homescan

The increase in average spend is mainly due to rise in the spend per trip on Beans compared to last year. Slight increase in frequency can also be seen.

This YearLast year

T. Vegetables Beans Sweet Corn Carrots Sweet Potato Broccoli Asian Vegetables

50.5

6.2 5.311.4

5.610.0

4.4

50.7

6.3 5.211.3

6.09.9

4.5

T. Vegetables Beans Sweet Corn Carrots Sweet Potato Broccoli Asian Vegetables

1.77

0.34

0.630.88

1.15

0.530.36

1.74

0.34

0.62

0.90

1.18

0.520.37

T. Vegetables Beans Sweet Corn Carrots Sweet Potato Broccoli Asian Vegetables

7.09

2.122.59

1.582.31 1.95

2.38

7.51

2.29 2.651.61

2.48 2.22 2.47

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9Source: Nielsen Homescan*http://www.fredsfruit.com/market-update/

4 W

/E 0

3/11

/201

2

4 W

/E 0

1/12

/201

2

4 W

/E 2

9/12

/201

2

4 W

/E 2

6/01

/201

3

4 W

/E 2

3/02

/201

3

4 W

/E 2

3/03

/201

3

4 W

/E 2

0/04

/201

3

4 W

/E 1

8/05

/201

3

4 W

/E 1

5/06

/201

3

4 W

/E 1

3/07

/201

3

4 W

/E 1

0/08

/201

3

4 W

/E 0

7/09

/201

3

4 W

/E 0

5/10

/201

3

4 W

/E 0

2/11

/201

3

4 W

/E 3

0/11

/201

3

4 W

/E 2

8/12

/201

3

4 W

/E 2

5/01

/201

4

4 W

/E 2

2/02

/201

4

4 W

/E 2

2/03

/201

4

4 W

/E 1

9/04

/201

4

4 W

/E 1

7/05

/201

4

4 W

/E 1

4/06

/201

4

4 W

/E 1

2/07

/201

4

4 W

/E 0

9/08

/201

4

4 W

/E 0

6/09

/201

4

4 W

/E 0

4/10

/201

4

20.6 20.7

16.1 15.1 15.0 15.7

18.7 18.020.0 19.2

16.918.7

17.416.0

17.1 16.2 16.4 16.1

18.617.6 17.6

19.5

16.217.6 16.8

20.0

0.5 0.5 0.5

0.5

0.4

0.5 0.5 0.5 0.5 0.5

0.50.5 0.5 0.5 0.5

0.50.5 0.5

0.5 0.5 0.5

0.6

0.50.5

0.5

0.6

Penetration of households Average volume per household every 4 weeks

The number of households buying Beans has increased in the last 4 weeks compared to last year, coupled with a slight increase in their consumption. This could be related to good quality *bean supply in Sept 2014. Kg

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10Source: Nielsen Homescan

4 W

/E 0

3/11

/201

2

4 W

/E 0

1/12

/201

2

4 W

/E 2

9/12

/201

2

4 W

/E 2

6/01

/201

3

4 W

/E 2

3/02

/201

3

4 W

/E 2

3/03

/201

3

4 W

/E 2

0/04

/201

3

4 W

/E 1

8/05

/201

3

4 W

/E 1

5/06

/201

3

4 W

/E 1

3/07

/201

3

4 W

/E 1

0/08

/201

3

4 W

/E 0

7/09

/201

3

4 W

/E 0

5/10

/201

3

4 W

/E 0

2/11

/201

3

4 W

/E 3

0/11

/201

3

4 W

/E 2

8/12

/201

3

4 W

/E 2

5/01

/201

4

4 W

/E 2

2/02

/201

4

4 W

/E 2

2/03

/201

4

4 W

/E 1

9/04

/201

4

4 W

/E 1

7/05

/201

4

4 W

/E 1

4/06

/201

4

4 W

/E 1

2/07

/201

4

4 W

/E 0

9/08

/201

4

4 W

/E 0

6/09

/201

4

4 W

/E 0

4/10

/201

4

20.6 20.7

16.1 15.1 15.0 15.7

18.7 18.020.0 19.2

16.918.7

17.416.0

17.1 16.2 16.4 16.1

18.617.6 17.6

19.5

16.217.6 16.8

20.0

2.9

2.52.6

3.0

3.5

2.93.1

3.5

3.0

3.43.6 3.5

3.2

3.63.5

3.22.9

3.23.0 3.0

3.5 3.4

3.8

4.2 4.1

3.2

Penetration of households Average $ spend per household every 4 weeks

The average $ spend on Beans has seen significant change in the last 8 weeks compared to last year. This potentially suggests a different supply trend versus same months year ago.

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11Source: Nielsen Homescan

4 W

/E 0

3/11

/201

2

4 W

/E 0

1/12

/201

2

4 W

/E 2

9/12

/201

2

4 W

/E 2

6/01

/201

3

4 W

/E 2

3/02

/201

3

4 W

/E 2

3/03

/201

3

4 W

/E 2

0/04

/201

3

4 W

/E 1

8/05

/201

3

4 W

/E 1

5/06

/201

3

4 W

/E 1

3/07

/201

3

4 W

/E 1

0/08

/201

3

4 W

/E 0

7/09

/201

3

4 W

/E 0

5/10

/201

3

4 W

/E 0

2/11

/201

3

4 W

/E 3

0/11

/201

3

4 W

/E 2

8/12

/201

3

4 W

/E 2

5/01

/201

4

4 W

/E 2

2/02

/201

4

4 W

/E 2

2/03

/201

4

4 W

/E 1

9/04

/201

4

4 W

/E 1

7/05

/201

4

4 W

/E 1

4/06

/201

4

4 W

/E 1

2/07

/201

4

4 W

/E 0

9/08

/201

4

4 W

/E 0

6/09

/201

4

4 W

/E 0

4/10

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4

2.92.5 2.6

3.0

3.5

2.9 3.13.5

3.03.4

3.6 3.53.2

3.6 3.53.2

2.93.2

3.0 3.0

3.5 3.43.8

4.2 4.1

3.2

1.951.68

1.912.10

2.37

2.00 2.092.34

2.042.25

2.47 2.352.19

2.44 2.432.29

2.05 2.18 2.07 2.042.37 2.23

2.53 2.65 2.74

2.11

1.5 1.5 1.4 1.4 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.4 1.5 1.4 1.4 1.4 1.5 1.5 1.5 1.5 1.5 1.5 1.6 1.5 1.5

Average $ spend per household every 4 weeks $ spend per purchase occasion Average purchase occasions every 4 weeks

Slight increase in frequency is offset by the decline in the spend per trip on Beans resulting in stable average spend for the latest 4-weeks.

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DemographicsBeans

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14Source: Nielsen Homescan

Distribution of BuyersAustralia

Distribution of VolumeAustralia

Last Year This Year

7% 7%

11% 10%

14% 14%

10% 9%

18% 17%

23% 23%

17% 19%

Last Year This Year

6% 6%

11% 10%

15% 14%

8% 8%

13% 12%

23% 23%

25% 27%

Senior Couples are important buyers of Beans. They comprise of 19% of the buyers but contribute disproportionately 27% of volume sales. They have increased their volume share this year.

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How many Households buy

annually?

Note: The difference in the bar heights for same data labels is due to the difference in decimal points. The data has been rounded up to one decimal point. Source: Nielsen Homescan

How often do they buy annually?

How much (Kg) do they buy per occasion?

ALL SHOPPERS START UP FAM-ILIES

SMALL SCALE FAMILIES

BUSTLING FAMILIES

YOUNG TRANSITION-

ALS

INDEPENDENT SINGLES

ESTABLISHED COUPLES

SENIOR COUPLES

55.8 62.5 60.4 57.5 60.545.4

57.8 57.554.5 57.0 59.7 56.3 54.143.7

56.7 59.4

ALL SHOPPERS START UP FAM-ILIES

SMALL SCALE FAMILIES

BUSTLING FAM-ILIES

YOUNG TRANSITION-

ALS

INDEPENDENT SINGLES

ESTABLISHED COUPLES

SENIOR COUPLES

6.2 5.7 6.1 5.85.1 5.4 6.0

8.3

6.3 5.7 5.7 5.9 5.7 5.4 6.0

8.6

ALL SHOPPERS START UP FAM-ILIES

SMALL SCALE FAMILIES

BUSTLING FAM-ILIES

YOUNG TRANSITION-

ALS

INDEPENDENT SINGLES

ESTABLISHED COUPLES

SENIOR COUPLES

0.34 0.32 0.35 0.38 0.350.29

0.35 0.360.34 0.320.35 0.36 0.35

0.290.34 0.35

Senior Couples group is the only demographic to add 25,762 households this year along with a slight rise in their shopping trips. Young Transitionals and Independent Singles post the greatest decline in households. This YearLast year

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16Source: Nielsen Homescan

Distribution of BuyersAustralia

Distribution of VolumeAustralia

Last Year This Year

56% 56%

16% 16%

17% 17%

10% 10%

Last Year This Year

51% 53%

20% 18%

19% 19%

10% 10%

Smaller households (1-2 members) are the core buyers for Beans, accounting for 53% of the volume sales and gaining contribution.

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How many Households buy

annually?

How often do they buy annually?

How much (Kg) do they buy per occasion?

ALL SHOPPERS HH SIZE 1-2 MEMBERS HH SIZE 3 MEMBERS HH SIZE 4 MEMBERS HH SIZE 5+ MEMBERS

55.8 53.3 57.262.4 58.154.5 51.7 56.1 61.0 57.6

ALL SHOPPERS HH SIZE 1-2 MEMBERS HH SIZE 3 MEMBERS HH SIZE 4 MEMBERS HH SIZE 5+ MEMBERS

6.2 6.07.0

6.35.5

6.3 6.36.9 6.6

5.2

ALL SHOPPERS HH SIZE 1-2 MEMBERS HH SIZE 3 MEMBERS HH SIZE 4 MEMBERS HH SIZE 5+ MEMBERS

0.34 0.320.37 0.37 0.39

0.34 0.32 0.34 0.36 0.38

All the households sizes have lost buyers this year. 1-2 member and 4-members households increased their number of trips compared to last year.

This YearLast year

Note: The difference in the bar heights for same data labels is due to the difference in decimal points. The data has been rounded up to one decimal point. Source: Nielsen Homescan

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Retail HealthSituation by StateBeans

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Share by RetailersThis Year Beans

Sales vs. Last YearThis year vs. Last yearBeans

Other Supermarkets

Non - Supermarkets

Volu

me

Valu

e

Overall Beans’ volume sales has been stable with huge drop in Aldi and IGA. Price gains result in an increase in value sales driven by Woolworths, Coles and Non-supermarkets.

Source: Nielsen Homescan

31%

4%3%

5%32%

25% 0%

11%

-38%

-14%

7%

-1%0%

7%

23%

-6%-4%

16%

10%9%

29%

3%

7%

6%34%

22%

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Source: Nielsen Homescan Total Market: AUS Shared to: T. Fresh Frt Veg Dried Frt Nut Condition: Defined Market: AUS Defined Product: T. Fresh Frt Veg Dried Frt Nut Defined Fact: Purchase Value Defined Period: MAT TO 04/10/2014

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Homescan isights v3.0 .Dictionary v1.5

Source: Nielsen Homescan

55% of Woolworths shoppers that buy Beans are purchasing the vegetable in their shopping trips to Woolworths. This conversion rate fairs well with other comparable vegetables.

Account Shopper ConversionYear to 04/10/2014 | Woolworths (WW)

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Source: Nielsen Homescan Total Market: AUS Shared to: T. Fresh Frt Veg Dried Frt Nut Condition: Defined Market: AUS Defined Product: T. Fresh Frt Veg Dried Frt Nut Defined Fact: Purchase Value Defined Period: MAT TO 04/10/2014

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Homescan isights v3.0 .Dictionary v1.5

Source: Nielsen Homescan

More than 53% of Coles shoppers that buy Beans, prefer to buy it from Coles.

Account Shopper ConversionYear to 04/10/2014 | Coles

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57.3 53.9

2.42.3

SA + NT (7%)

VIC (26%)

NSW (34%)

QLD (17%)

WA (13%)

Average KG per Buyer

Penetration this year vs. last year

( ) State share of Beans $ sales consumption

Is there a particular State driving the category performance?

Source: Nielsen Homescan

50.456.5

2.12.3

52.1 49.4

1.8 1.8

57.7 54.8

1.9 2.0

58.0 56.4

2.1 2.2

The number of households buying Beans have gone down across all states except WA.

Victoria accounting for 26% of value sales of Beans, is affected by both dwindling buyer base and average consumption.

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