How is the Irish Fish Market Performing? Data to 31 st December 2017

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Transcription:

How is the Irish Fish Market Performing? Data to 31 st December 2017

Today s Agenda Contents Definitions Total Fish Frozen Fish Fresh Fish Focus on How does fish s performance compare to other proteins and who is a typical fish shopper? Overview of the drivers of Frozen Fish s performance and a look at Branded vs PL and retailer performance Overview of the drivers of Fresh Fish s performance looking at Prepacked vs. Loose and Raw vs. RTE, species and retailers Coated Fish, Ready Meals, Prawns, Mussels

Definitions of the Category & Sub-Categories Total Fish Fresh Fish Frozen Fish Loose Prepacked RAW RTE RTC RAW RTE RTC RTE: Fish which can be unpackaged and consumed immediately RTC Fish which has been prepared to provide final product for the consumer and is ready to cook Raw Fish which needs heat applied to it before eating

Definitions of the Sectors Sector Definition Includes/Excludes Total Fish All Fish Fresh and Frozen excluding ambient fish All Fish Fresh and Frozen excluding ambient fish Coated Fish Cakes/ Burgers Fish Fingers/ Goujons Fish Bites/ Crunchies Flavouring/ Marinade Flavouring/ Marinade Smoked All Breaded Fillets, Battered Fillets, Dusted Fillets including all Breaded, Battered & Dusted Whole Shellfish including Tempura Prawns All breaded/battered/dusted/seeded fish cakes and fish burgers even those with sauce in the middle of them All breaded/battered/dusted/seeded fish fingers and fish goujons All breaded/battered/dusted/seeded fish bites, nuggets, shapes, croquettes, dippers and crunchies. Also popcorn prawns All fish and shellfish with flavouring/butter/marinade/topping/ glaze/dressing/ vinegarette that is not a complete ready meal All fish and shellfish with flavouring/butter/marinade/topping/ glaze/dressing/ vinegarette that is not a complete ready meal made with smoked fish Excludes Breaded & Battered with Sauce, breaded & battered fingers, bites, goujons, cakes etc, filo prawns and breaded/battered fish with chips/potato and smoked coated fish Excludes any options with other proteins/carbohydrates and smoked fish cakes/burgers Excludes any options with other proteins/carbohydrates and smoked fish fingers/goujons Excludes any options with other proteins/carbohydrates and smoked fish bites/crunchies Excludes fish and shellfish with sauce and smoked fish with flavouring/marinade Excludes fish and shellfish with sauce and products with flavouring/marinade that do not use smoked fish Source: Kantar Worldpanel

Sector Definition Includes/Excludes Natural All natural raw fillets of fish and shellfish without any sauce/butter/ marinades/ crumb/toppings/additions Other All value added fish and shellfish that is not a main meal or with sauce such as Kievs, Spring rolls, parcels, filo prawns, prawn toast, starters for fish, shellfish, tartlets, wellington, terrine, dressed crab/lobster, dinner food excl carbohydrate, fish with toppings, sausages, tartlets, appetisers, party food Ready Meals All complete fish and shellfish ready meals (with carbohydrate/vegetables) Excludes separate dinner components such as quiche, Kiev, mornays or any starter type products where smoked fish is not the main ingredient Smoked All natural smoked fish including BBQ fish Excludes any smoked fish with flavouring/marinade, smoked coated fish, smoked fish with sauce or smoked fish as the main ingredient in fish cakes/burgers, ready meals and other Scampi Surimi Sushi With Sauce All scampi products either wholetail langoustine or reformed scampi with whitefish All surimi products All sushi products All fish and shellfish with sauce including prawns cocktail with sauce, fish mornays, fish with sauce Fish and shellfish with marinades, toppings and other flavourings and complete ready meals and does not contain smoked fish as the main ingredient Source: Kantar Worldpanel

Lifestage Definitions Pre Family: 1 to 2 person households under 44 years without children Young Family: Younger households under 34 years with children Middle Family: Families where main shopper is between 34-44 years and they have children 45+ Family:-Families where main shopper is 45+ years and they have children 15 years and under Older Dependents: This is a 45+ year household with 3+ persons in the household (no children) Empty Nesters: Older 45+ year households with 1 to 2 people and no kids *Please note that Children are defined as being 16 years and under. Source: Kantar Worldpanel

TODAY S AGENDA Total Grocery Headlines Fresh Fish Review Loose Fish Prepacked Fish Focus on Fresh White Fish Salmon Mussels Source: Kantar Worldpanel. Data to 31st December 2017

Total Grocery Market Value and YoY Growth 52w/e 31 st Dec 2017 10.5bn +2.5% Frequency Packs per Trip Price per Pack -0.7% +2.5% -0.3% 12w/e 31 st Dec 2017 2.6bn +3.6% +0.4% +1.9% +0.2%

TOTAL GROCERY SECTORS VALUE SHARE & YOY % CHANGE 52 w/e 31 st December 2017 Frozen is driving the YoY growth of the Total Grocery market. Fresh & Chilled and Ambient are also growing ahead of the market. Share of total trolley Frozen Ambient 3.1 6.3 Fresh & Chilled 2.7 Ambient Food 28.2% Household 6.6% Frozen 4.8% Toiletries 3.7% Healthcare 1.1% Fresh & Chilled Produce 48.1% Alcohol 7.6% Total Grocery Household Alcohol Toiletries 0.1 0.7 1.2 2.5 Healthcare -1.8 YoY % Change in Value Sales

Retailer Share & YoY Growth 52 w/e 31 st December 2017 SuperValu has the greatest market share over the latest 52 weeks, however it has lost share since LY as it grows behind the total market. Lidl, Aldi & Dunne's all posting the strongest YoY growth. Lidl 3.6 22 22 22.6 22.3 21.9 22.2 Aldi 3.6 Dunnes 3.6 11.1 11.2 11.2 11.3 Tesco 2.7 Total Market 2.5 Tesco SuperValu Dunnes Aldi Lidl 52 w/e 01 Jan 17 52 w/e 31 Dec 17 Retailer % Share of Value Sales SuperValu 1 YoY % Change in Value Sales

Protein Drivers of Growth Total Fresh & Frozen 52 w/e 31 st Dec 2017 Penetration Frequency Volume per Trip Price per KG +4% Fish 95.9% 27.6 times +0.6ppt +1.5% 0.5 kgs +0.4% 11.71 +0.3% +0.5% Poultry 97.6% 31.5 times +0.6ppt -3.5% 1.1 kgs + 0.20-0.8% 5.88 +3.4% +3.9% Beef 96.3% +0.6ppt 41.3 times -0.4% 0.8 kgs +2.5% 9.13 +0.2% +0.6% Lamb 62.7% -0.5ppt 11.6 times -6.3% 0.8 kgs +12% 10.53-4.3% -3.6% Pork 79.5% -2.3ppt 15.6 times -4.6% 0.8 kgs +1.5% 6.72 +1.5%

Fish Drivers of Growth 52 w/e 31 st December vs LY Total Fish 249m +4% Fresh 178m +4.1% Frozen 72m +3.8% Penetration Frequency Volume per Trip Price per KG 95.9% 27.6 times 0.5 kg 11.71 +0.6ppt +1.5% +0.4% +0.3% 84.2% 21.2 times 0.4 kg 14.41 +1.3ppt +0.7% -0.9% +1.7% 83.9% 11.9 times 0.5 kg 8.00 +0.5ppt +2.5% +1.3% -1.6%

SuperValu is the number one retailer for Fresh Fish & is growing ahead of the total market. Aldi has had the strongest YoY growth, with sales increasing +34.5% since LY. Value % Value Growth YoY 24.7 25.1 Aldi 34.5 21 20.8 SuperValu 6 15.1 15.3 16.8 16 Tesco 4.9 11.6 Total Market 4.1 5.4 3.6 9 7.1 6.5 Dunnes Lidl -0.8 3.2 Tesco SuperValu Dunnes Marks & Spencer Aldi Lidl Other Outlets Other Outlets Marks & Spencer -5.3 52 w/e 01 Jan 17 52 w/e 31 Dec 17

SuperValu & Aldi are growing through larger and more frequent shopping trips. Aldi s YoY growth has also been driven by new shoppers and higher average price. Shopper losses are the primary driver of M&S and Other Outlets declines. Total Species Fresh Total Market 52 w/e Previous Year

Aldi s strong YoY growth is also due the retailer gaining switched spend from all its competitors. Source of Aldi Spend ( 000s) Change Total Switching SuperValu Tesco 330 449 Shoppers Held Dunnes 302 Other Outlets 237 Shoppers Won Marks & Spencer 133 Lidl 79 Category Arrivals All Others 1 0 500 1000 1500 2000 2500 3000 3500 0 100 200 300 400 500

Whereas Other Outlets decline is due in part to shoppers are switching their spend to SuperValu & Aldi. Source of Other Outlets Spend ( 000s) Change Total Switching Dunnes 59 Marks & Spencer 33 Shoppers Held Tesco -12 All Others -40 Shoppers Lost Lidl -62 Aldi -237 Category Departures SuperValu -434-800 -600-400 -200 0 200 400 600 800 1000-500 -400-300 -200-100 0 100

Movement of Spend: Which retailers are winning & losing Aldi gained switched spend from all others. 202k 228k 201k 302k 330k 237k 59k 112k 362k 62k 391k 449k 434k Other Outlets

52.7 51.0 +2.1% +21% +15.3% +4.9% +1.2% 82.9 17.1 11.0 12.0 10.6 10.9 3.6 5.3 4.3 2.6 Market Share Value Growth Volume Growth 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Prepacked Loose Salmon Cod Total Prawns 01-Jan-17 Hake 31-Dec-17 Coley Where do Tesco s Opportunities lie? Middle Family Leinster (excl. Dublin) Gaining switched spend from Dunnes & Lidl 1.4m 1.5m Losing spend to Aldi & SuperValu Based on their under-index on Fresh Fish vs Total Grocery in store

+15.2% -8% 49.4 43.7 25.1% +6% +6.8% Market Share Value Growth Volume Growth 65.7 34.3 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Prepacked Loose Where do SuperValu s Opportunities lie? 11.211.5 10.411.1 5.8 6.7 Salmon Cod Hake Total Prawns 01-Jan-17 31-Dec-17 3.6 4.1 Coley Pre Family Gaining switched spend from Dunnes, Tesco, Lidl & Other Outlets 2m Leinster (excl. Dublin) 1.6m Losing spend to Aldi 45+ Family 1.9m Based on their under-index on Fresh Fish vs Total Grocery in store 1.2M OPP IN Munster too

+8.9% -11% 61.5 58.4 20.8% +3.2% -3.3% Market Share Value Growth Volume Growth 75.3 24.7 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Prepacked Loose 12.5 10.6 6.8 7.5 Salmon Cod Hake Total Prawns 01-Jan-17 2.8 4.2 4.4 3.3 31-Dec-17 Coley Where do Dunne's Opportunities lie? Gaining switched spend from Lidl Middle Family 1.7m Leinster (excl. Dublin) 1.3m 45+ Family Losing spend to SuperValu, Tesco, Aldi & Other Outlets 1.5m Based on their under-index on Fresh Fish vs Total Grocery in store 1.1M OPP IN Munster too

56.7 52.1 11.6% +34.5% +29.8% 8.5 11.4 2.7 6.5 7.5 5.7 4.7 4.5 Market Share Value Growth Volume Growth Salmon Cod Haddock Total Prawns Coley 01-Jan-17 31-Dec-17 Where do Aldi s Opportunities lie? Gaining switched spend from all other retailers 45+ Family 700k Leinster (excl. Dublin) 1.2m Based on their under-index on Fresh Fish vs Total Grocery in store

47.5 49.2 16% -0.8% -0.6% 17.3 17.5 8.1 6.7 6.2 6.4 4.2 6.0 Market Share Value Growth Volume Growth Salmon Cod Mackerel Haddock Total Prawns 01-Jan-17 31-Dec-17 Where do Lidl s Opportunities lie? Gaining switched spend from Other Outlets Middle Family 1.4m Munster 800k Losing spend to SuperValu, Tesco, Dunnes & Aldi Based on their under-index on Fresh Fish vs Total Grocery in store

Tesco has the biggest under-trade in Fresh Fish vs its share of Total Fresh Protein. If Tesco were to achieve its far share of this category, it would be worth an additional 3m. Fair Share Size of Prize Tesco 3m SuperValu 2m Dunnes n/a Aldi 900k Lidl n/a 0 5 10 15 20 25 30 Fresh Fish Total Fresh Protein % Share of Value Sales

Loose Fresh Fish has seen value decline this year despite higher average prices, due to less shoppers as well as smaller and less frequent trips. Total Species Total Market Fresh Loose 52 w/e Previous Year

Loose fish has continued to decline over the latest 12weeks at -7.3%. Shopper numbers and trips decline, however there is some growth in volume per trip. vs. Previous Year Total Species Total Market Fresh Loose 12 w/e Previous Year

Almost 2m spend has been lost from Loose Fish as shoppers switch to Prepacked. Empty Nesters, Older Dependents & Shoppers living in Dublin & Munster are driving this trend. Source of Fresh Loose Spend ( 000s) Change - 52 weeks ending 31 Dec 2017 Loose Prepacked Total Switching Empty Nesters -8 5.9 Shoppers Held Older Dependents -6.7 15.7 Shoppers Lost Munster -6 14.4 Category Departures Dublin -4.8 6-2500 -2000-1500 -1000-500 0 500 1000 1500 2000 YoY % Change in Spend

Whole Fish is the only sector within the Loose category that is in growth YoY. Shoppers purchasing Whole fish more frequently has been the main contributor to its growth. Total Loose -4.5% (16.3%) Penetration % Purchase Frequency Trip Volume (kg) Price per kg Raw -4.8% (96.9%) RTC -2.4% (2.7%) Total Market Whole +4.5% (9.6%) Fillet -5.4% (89.5%) Fillet Natural -3.9% (91.8%) Smoked -15.3% (5.4%) Whole -5,000-4,000-3,000-2,000-1,000 0 1,000 2,000 3,000 YoY % Change & Value Share %

Dunnes & SuperValu are driving the decline of Loose Fish. Tesco is the only retailer to grow YoY, however it accounts for the smallest share of the market. 39.1 37.7 Tesco 21 24.1 22.4 26.5 26.4 Total Market -4.5 Other Outlets -4.9 9 11.4 SuperValu -8 Tesco SuperValu Dunnes Other Outlets Dunnes -11.1 52 w/e 01 Jan 17 52 w/e 31 Dec 17 Retailer % Share of Value Sales YoY % Change in Value Sales * Other Outlets includes Fish Mongers, Road Side Stalls, Butchers, Other Grocers

Shoppers have been lost across all of the retailers as price has risen. Declining frequency and volume per trip are also issues for Dunnes & SuperValu. Penetration % Purchase Frequency Trip Volume (kg) Price per kg Total Market Tesco SuperValu Dunnes Other Outlets -5,000-4,000-3,000-2,000-1,000 0 1,000 2,000 3,000 4,000

Fresh Prepacked value increased +6.9% YoY. More shoppers is the key metric driving growth. 31-Dec-17 vs. Previous Year Total Species Total Market Fresh Prepacked 52 w/e Previous Year

In latest 12w/e, growth was +6.5% was driven by larger, more frequent trips, while shopper numbers dipped for the first time all year. vs. Previous Year Total Species Total Market Fresh Prepacked 12 w/e Previous Year

SuperValu has overtaken Lidl as number one retailer for Fresh Prepacked Fish thanks to its strong YoY growth in sales. Aldi contributed +34.4% value growth YoY, while Lidl is the only retailer to have declined. 17.2 16.4 21.4 19.9 19.9 20.3 14.9 22.3 20.6 Aldi SuperValu 15.2 34.4 11.9 Dunnes 8.9 Total Market 6.9 Tesco 2.1 Lidl -1.3 52 w/e 01 Jan 17 52 w/e 31 Dec 17 Retailer % Share of Value Sales YoY % Change in Value Sales

Aldi s exceptional YoY growth has been driven by an increase across all shopper metrics. SuperValu has also seen strong YoY growth, due to both larger and more frequent trips.

Who is driving the growth of prepacked? 26.8 8.1 5.8 15.7 5.9 6 14.4 11.6 1.5-2.9-0.6-1.3-3.8 YoY % Change in Value Sales

Breaking Down the Prepacked Fish Category Performance YoY % Change & Value Share % Prepacked +6.9% (77.2%) Raw +8.8% (44.5%) RTC +10.3% (22.7%) RTE +2.2% (32.7%) No. 1 Retailer Retailer Driving Growth

All sectors are gaining new shoppers YoY. RTC saw the strongest value growth despite a decline in price & volume per trip, as shoppers made more frequent purchases. Penetration % Purchase Frequency Trip Volume (kg) Price per kg Fresh Prepacked Fresh Prepacked Raw Fresh Prepacked RTC Fresh Prepacked RTE -4,000-2,000 0 2,000 4,000 6,000 8,000 10,000

Breaking Down the Prepacked Fish Category Performance YoY % Change & Value Share % Prepacked +6.9% (77.2%) Whole -3.3% (1.5%) Meats +14.9% (9.6%) Fillets +6.3% (88.9%) No. 1 Retailer NR Retailer Driving Growth

Whole is the only prepacked sector in decline. Shopper trends for Whole go against the rest of the market price is rising and shopper numbers declining. Penetration % Purchase Frequency Trip Volume (kg) Price per kg Total Market Fillet Meats Whole -2,000 0 2,000 4,000 6,000 8,000 10,000

Breaking Down the Prepacked Fish Category Performance YoY % Change & Value Share % Prepacked +6.9% (77.2%) Natural +7.1% (44%) Smoked +1.6% (25.5%) Coated +10.9% (6.5%) With Sauce +22.2% (4%) Flavourings / Marinade +4.6% (12.6%) Surimi +26.6% (0.3%) Ready Meal +19.6% (2%) No. 1 Retailer NR NR Retailer Driving Growth NR NR

Natural is seeing strong growth through more shoppers and rising prices. Added Value sectors are attracting the greatest amount of new shoppers to the category. Penetration % Purchase Frequency Trip Volume (kg) Price per kg Total Market Coated Total Falvourings or Marinade Natural Ready Meal Smoked Surimi With Sauce -4,000-2,000 0 2,000 4,000 6,000 8,000 10,000

Branded sales of Prepacked Fish have seen an incredible turnaround since LY, growing just behind PL. PL still accounts for 89.8% of the market. 82.9 89.7 89.8 YoY 01 Jan 17 YoY 31 Dec 17 Branded -34.9 6.1 17.1 10.3 10.2 Branded PL Private Label 7.0 16.9 52 w/e 03 Jan 16 52 w/e 01 Jan 17 52 w/e 31 Dec 17 % Share of Value Sales YoY % Change in Value Sales

Brand have seen strong growth this year in Tesco, Dunnes and Aldi, only declining in SuperValu. In Tesco & Dunnes, brands are growing ahead of PL. Branded PL YoY % Change in Value Sales Total Market 7 6.1 89.8 75.6 86.6 88.8 96.1 99.3 Tesco -4.6 30.7 SuperValu -11 20.6 10.2 24.4 13.4 11.2 3.9 Dunnes 8.5 12.1 Total Market Tesco SuperValu Dunnes Aldi Lidl Aldi 24.5 34.8 % Share of Value Sales Lidl -0.8 NR

Salmon accounts for over 50% of Prepacked value sales, however it s growing behind the total market Prawn, Coley, Haddock & Cod are all driving market growth, while Trout & Mackerel have seen the most significant losses since LY. Value Share Volume Share 53.8 Total Prawns Coley 17.8 17.7 42.8 Haddock Cod Total Species Salmon 12.6 8.1 6.9 6.2 11.7 9.2 8.5 6.6 7.6 5.8 5.7 4 5.4 3.7 5 3.1 2.1 2.1 1.8 2.8 1.8 2.4 0.9 0.8 0.8 0.4 Sea Bass Fish and Shellfish Mix Crab -1.2-7.5 0.6 Fish Mix -7.9 Mackerel -12.7 Trout YoY % Change in Value Sales

New shoppers are key for growth All of the biggest growth species have gained more shoppers, while the species that saw the biggest declines have lost shoppers.

Fresh White Fish value sales have increased +9.1% YoY. Growth driven by more shoppers purchasing more frequently. Attribution of change in spend Spend ( 000) 53.3m (+9.1%) + 4,444k Volume (000 kg) 4632k (+9.5%) + 4,689k Price per kg ( ) 11.52 (-0.4%) - 245k Volume per Buyer (kg) 4.1 kg (+2.5%) + 2706k Penetration (%) 65.1% (+3.8%) + 1,984k Frequency 9.7 trips (+6.6%) + 2,706k Volume per Trip (kg) 0.4 kg (0%) + k

White fish is driving incremental value into the Fresh Fish market, as well as gaining switched spend from Salmon & other fish types. Source of Total White Fish Spend ( 000s) Change - 52 weeks ending 31 Dec 2017 Total Switching Total Salmon Shoppers Held Incremental Growth Shoppers Won All Others Category Arrivals All Others 0 500 1000 1500 2000 2500 0 200 400 600 800 1000 1200 1

Prepacked is driving the value growth of White Fish Increased frequency, more shoppers and lower average price all contributed to the growth of prepacked. 15.8 52 w/e 01 Jan 17 52 w/e 31 Dec 17-2.2 Prepacked Loose 0% 20% 40% 60% 80% 100% Fresh Prepacked Fresh Loose % Share Value Sales

All White Fish species are growing YoY with the exception of Whiting. Hake is contributing the most value growth to this sector YoY. Drivers of Growth 3.7 4.2 4.6 Hake 16.3 11 Plaice 13.5 12.5 % Value Share of Fresh White Fish 20.6 Haddock Coley 9 9.9 Sea Bass 5.9 40 Cod 2.5 Cod Hake Haddock Coley Sea Bass Whiting Plaice Whiting -1.8

SuperValu has the greatest value share of Fresh White Fish & is growing ahead of the market YoY Aldi has seen the strongest value growth since LY, increasing its share of the market by more than 50%. 27.8 30.9 Aldi 79.1 22.7 SuperValu 21.4 19 Lidl 9.5 12.4 12.1 11.5 15.2 15.3 Total Market 9.1 7 7.9 7 Tesco 6.1 Other Outlets -3.8 Tesco SuperValu Dunnes Aldi Lidl Other Outlets Dunnes -8.4 52 w/e 01 Jan 17 52 w/e 31 Dec 17

The strong growth of both SuperValu & Aldi is due to more shoppers and increased frequency. White Fish saw the biggest value declines in Dunne's and this was due to loss of shoppers and less trips. Penetration % Purchase Frequency Trip Volume (kg) Price per kg Total Market Tesco SuperValu Dunnes Aldi Lidl Other Outlets -2,000-1,000 0 1,000 2,000 3,000 4,000 5,000

SuperValu & Other Outlets are the only retailers to overtrade in White Fish The biggest opportunity exists for Tesco. If it were to achieve its fair share of White Fish, it would be worth an additional 1.7m. Fair Share Size of Prize Tesco SuperValu 1.7m n/a Dunnes 1m Aldi 100k Lidl Other Outlets 400k n/a 0 5 10 15 20 25 30 35 Fresh White Fish Total Fresh Fish

TODAY S AGENDA Total Grocery Headlines Fresh Fish Retailer Review Loose Fish Prepacked Fish Focus on Fresh White Fish Salmon Mussels

Fresh Salmon has seen value growth of +2.3% YoY. Despite shoppers picking up less volume and purchasing less often than LY, growth is driven by higher average prices. Salmon Total Market Fresh Total Market 52 w/e Previous Year

Existing shoppers are spending more on Salmon vs LY, however there has been some switched spend out of Salmon to Hake, Coley & Haddock. Total Switching Source of Salmon Spend ( 000s) Change - 52 weeks ending 31 Dec 2017 Trout Mackerel Cod Shoppers Held Total Prawns Haddock Shoppers Won All Others Coley Category Arrivals Hake -2000-1000 0 1000 2000 3000-500 -400-300 -200-100 0 100 200 300

Retailer % of Value-Actual Dunnes has the greatest share of Salmon & is growing ahead of the Total Market. Aldi is driving overall growth at +15.7% YoY, while SuperValu had the strongest decline. Retailer % of Value Actual Salmon Total Market Total Market 52 w/e 22.6 21.4 23.5 25.0 Aldi Dunnes 6.6 15.7 15.7 15.4 16.3 16.4 Lidl 1.2 10.5 12.1 Total Market 0.6 5.7 5.5 Tesco -1.6 Other Outlets -2.6 SuperValu -4.7 01-Jan-17 31-Dec-17

Frequency is the key contributor to Aldi s growth, while price is driving value growth of salmon in Dunnes. Salmon Fresh Total Market 52 w/e Previous Year

Smoked Salmon makes up 30% of value sales & is declining -1% YoY. The strongest growth is coming through Natural & Salmon With Sauce. % Change With Sauce 1.8 1.8 31.0 30.0 4.6 Smoked -1.0 Natural 49.7 50.5 4.0 Total Flavourings or Marinade 14.1 14.0 1.7 01-Jan-17 31-Dec-17

Smoked Salmon has gained new shoppers, but it is declining through all other shopper metrics. The strong growth of Natural Salmon is primarily due to higher price point, as a large amount of shoppers are lost. Salmon Total Market Fresh 52 w/e Previous Year

Over the shorter term, we see a decline in price during the second half of 2017 having a positive impact on the other shopper metrics. Value sales have continued to grow, driven by more shoppers & larger, more frequent trips. Salmon Total Market Fresh Total Market 12 w/e Previous Year

Prepacked vs Loose Salmon Prepacked accounts for over 80% of the fresh salmon market as Loose declines -12.8% YoY Spend ( 000) Salmon Total Market Fresh 52 w/e % Change Prepacke d 6.2 79.5 82.5 Loose -12.8 20.5 17.5 01-Jan-17 31-Dec-17

Shoppers dropping out of Loose is the key metric driving decline. Despite the fact that Loose has a lower average price point than Prepacked. Salmon Total Market Fresh 52 w/e Previous Year Price per KG 15.53 18.46

There is a clear correlation between Price per KG & Volume per Trip Total Fresh Salmon 20 19 0.38 0.36 Price per KG Volume per Trip 18 0.34 17 16 15 0.32 0.3 0.28 0.26 14 0.24 13 0.22 12 4 w/e 03 Jan 16 4 w/e 31 Jan 16 4 w/e 28 Feb 16 4 w/e 27 Mar 16 4 w/e 24 Apr 16 4 w/e 22 May 16 4 w/e 19 Jun 16 4 w/e 17 Jul 16 4 w/e 14 Aug 16 4 w/e 11 Sep 16 4 w/e 09 Oct 16 4 w/e 06 Nov 16 4 w/e 04 Dec 16 4 w/e 01 Jan 17 4 w/e 29 Jan 17 4 w/e 26 Feb 17 4 w/e 26 Mar 17 4 w/e 23 Apr 17 4 w/e 21 May 17 4 w/e 18 Jun 17 4 w/e 16 Jul 17 4 w/e 13 Aug 17 4 w/e 10 Sep 17 4 w/e 08 Oct 17 4 w/e 05 Nov 17 4 w/e 03 Dec 17 4 w/e 31 Dec 17 0.2

TODAY S AGENDA Total Grocery Headlines Fresh Fish Retailer Review Loose Fish Prepacked Fish Focus on Fresh White Fish Salmon Mussels Source: Kantar Worldpanel. Data to 31st December 2017

Value sales of Mussels have declined -2.9% YoY Despite gaining new shoppers & increasing frequency, shoppers purchasing less quantity per trip has driven the decline. Attribution of change in spend Spend ( 000) 999k (-2.9%) - 30k Volume (000 kg) 165k (-7%) - 73k Price per kg ( ) 6.05 (+4.3%) + 43k Volume per Buyer (kg) 1.4 kg (-12.5%) - 112k Penetration (%) 6.9% (+3%) + 38k Frequency 2.6 trips (+4%) + 40k Volume per Trip (kg) 0.5 kg (-14.3%) - 152k

With Children A typical Mussels shopper is more likely to have children in the household & is slightly less affluent. However, its shopper profile is changing as a wider range of shoppers join the category. 40.0 38.0 Mussels Last Year This Year 36.0 34.0 More Likely to have Children 32.0 30.0 28.0 26.0 Total Species 24.0 22.0 20.0 35.0 37.0 39.0 41.0 43.0 45.0 47.0 49.0 51.0 53.0 55.0 Class ABC1 More Affluent

Key Takeouts THE RETAILERS PREPACKED VS. LOOSE KEY SPECIES Aldi has seen the strongest YoY growth as it gains spend from all other retailers SuperValu has also had a strong year, maintaining its number one position thanks to new shoppers, & larger, more frequent trips. Leinster is a key opportunity for all the retailers to grow Fresh Fish sales. For Lidl, the biggest opportunity is in Munster. All retailers should also be looking at Families as a key demographic group to target, as they underindex on Fresh Fish spend vs Total Grocery. Prepacked is driving market growth as Loose declines. We see a clear movement in spend from Loose to Prepacked which is driving this trend. Added Value sectors within prepacked are driving market growth by attracting new shoppers to the category. The Discounters are doing particularly well in these sectors. Branded performance has turned around since LY, now growing just behind PL thanks to strong growth in Tesco, Dunnes & Aldi White Fish is seeing strong value growth YoY bringing in both incremental spend to the market and gaining switched spend from Salmon & other Fish Types Salmon s full year growth has been driven only by higher prices However over the shorter term, decline in price has had a positive impact on shopper behaviour & value growth has continued. Mussels are succeeding in attracting new shoppers and encouraging repurchasing, however value sales have declined due to smaller shopping baskets.

For further information contact Ian Mannix ian.mannix@bim.ie or Liam Hegarty liam.hegarty@bim.ie