Savory and Sweet Spreads - US - September 2010

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising clips
Abbreviations and terms
Abbreviations
Terms

EXECUTIVE SUMMARY
Overview
Factors affecting usage include household size and race/ethnicity
Obesity, peanut allergies, and recalls create challenges
Market leaders and segment trends
Butter
Margarine and table spreads
Peanut butter and other nut butters
Jams, jellies, preserves, and fruit butters
Honey
Retail channel performance
Innovations ramp up even as risk is greater
Household and consumer use of savory and sweet spreads
Kids’ and teens’ usage of sweet spreads
Race/ethnicity distinguishes differences in usage

MARKET SIZE AND FORECAST
Key points
Market ebbing after 2008 sales jump
Sales and forecast of savory and sweet spreads
Figure 1: Total U.S. retail sales of savory and sweet spreads, at current prices, 2005-15
Figure 2: Total U.S. retail sales of savory and sweet spreads, at inflation-adjusted prices, 2005-15
Walmart sales

MARKET DRIVERS
Unemployment and household budgets
Figure 3: Unemployment rate, 16 years and over, January 2000-July 2010
Household size affects usage
Figure 4: Household usage of sweet and savory spreads, by size of household, February 2009-March 2010
Race/Hispanic origin and food preferences
Figure 5: Hispanic and Asian households, by size, 2009
Figure 6: Population, by race and Hispanic origin, 2005-15
Figure 7: Household type, by race and Hispanic origin of householder, 2009
Obesity and health
Figure 8: Age-adjusted prevalence of being overweight, obese, or extremely obese, among adults aged 20 or older, 1988-2008
Peanut allergies and peanut butter recalls deter usage

COMPETITIVE CONTEXT
Key points
Global food demand affects U.S. pricing for foods made with grain or milk
Figure 9: Consumer Price Index, food at home, U.S. city average, 2000-10
Closer to natural movement improves butter’s image
Value-added in everything from honey to peanut butter creates competition
Organic, natural, hormone-free create multiple price points
Figure 10: Impact of sustainable product claims on purchase decision, May/June 2010

SEGMENT PERFORMANCE
Key points
Sales of savory and sweet spreads in FDMx
Figure 11: FDMx sales of savory and sweet spreads, by segment, 2008-10

SEGMENT PERFORMANCE—BUTTER
Key points
Growing private label presence and butter as a commodity
Figure 12: FDMx sales in dollars/volume, 2005-2009
Making butter healthier and more natural
Sales and forecast of butter
FDMx sales and forecast of butter, 2005-15
Figure 13: FDMx sales and forecast of butter, 2005-15

SEGMENT PERFORMANCE—MARGARINE AND TABLE SPREADS
Key points
Private label has little effect on sales of margarine/table spreads
Making margarine more natural
Sales and forecast of margarine and table spreads
FDMx sales and forecast of margarine and table spreads, 2005-15
Figure 14: FDMx sales and forecast of margarine and table spreads, 2005-15

SEGMENT PERFORMANCE—PEANUT BUTTER AND OTHER NUT BUTTERS
Key points
Peanut butter volume sales decline through FDMx
Private label offering organics and brands offering alternatives to tree nuts
Sales and forecast of peanut butter and other nut butters
FDMx sales and forecast of peanut butter and other nut butters, 2005-15
Figure 15: FDMx sales and forecast of peanut butter and other nut butters, 2005-15

SEGMENT PERFORMANCE—JAMS, JELLIES, PRESERVES, AND FRUIT BUTTERS
Key points
FDMx volume sales decline, dollar sales grow slightly
Hot and spicy pepper jelly/jam aim to take sweet spreads beyond breakfast and sandwiches
Sales and forecast of jams, jellies, preserves, and fruit butters
FDMx sales and forecast of jams, jellies, preserves, and fruit butters, 2005-15
Figure 16: FDMx sales and forecast of jams, jellies, preserves, and fruit butters, 2005-15

SEGMENT PERFORMANCE—HONEY
Key points
Fits the demand for simple, natural products
Sales and forecast of honey
FDMx sales and forecast of honey, 2005-15
Figure 17: FDMx sales and forecast of honey, 2005-15

RETAIL CHANNELS
Key points
Supermarkets’ grip loosens, but the segment can regain its grasp
Sales of savory and sweet spreads, by channel
Figure 18: Total U.S. sales of savory and sweet spreads, by channel, 2008 and 2010

RETAIL CHANNELS—SUPERMARKETS
Key points
Sales growth and decline the story in recent years
Supermarket/food stores’ sales of savory and sweet spreads
Figure 19: Total U.S. supermarket/food stores’ sales of savory and sweet spreads, 2005-10

RETAIL CHANNELS—OTHER RETAILERS
Key points
Other retail outlets sweep up
Other retailers’ sales of savory and sweet spreads
Figure 20: Total U.S. other retailers’ sales of savory and sweet spreads, 2005-10

RETAIL CHANNELS—NATURAL FOODS SUPERMARKETS
Key points
Performance is strong despite trading down from organics
Figure 21: Natural supermarket sales of savory and sweet spreads, at current prices, 2008-10
Figure 22: Natural supermarket sales of savory and sweet spreads, at inflation-adjusted prices, 2008-10
Natural channel sales by segment
Figure 23: Natural supermarket sales of savory and sweet spreads, by segment, 2008-10
Leading brands dominate with many small brands growing too
Imports thrive in jams and preserves sector
Natural channel sales of savory and sweet spreads by organic content
Figure 24: Natural supermarket sales of savory and sweet spreads, by organic, 2008-10
Segment performance by organic content

LEADING COMPANIES
Key points
Big brands contend with private label
Unilever’s sweet spot
J.M. Smucker ups the ante
FDMx sales of savory and sweet spreads by manufacturer
Figure 25: Select manufacturer FDMx sales of savory and sweet spreads, 2009-10

BRAND SHARE—BUTTER
Key points
Brands play second fiddle to private label
Land O’Lakes dominates
Manufacturer and brand sales of butter
Figure 26: Leading FDMx brand sales and market share of butter, 2009-10

BRAND SHARE—MARGARINE AND TABLE SPREADS
Key points
Unilever controls more than half the segment, but slips
Smart Balance strengthened with omega-3s
Land O’Lakes gains
Manufacturer and brand sales of margarine and table spreads
Figure 27: Leading FDMx brand sales and market share of margarine and table spreads, 2009-10

BRAND SHARE—PEANUT BUTTER AND OTHER NUT BUTTERS
Key points
Can Peter Pan fully recover?
Convenience in packaging and usage
Skip(py) to natural
Manufacturer and brand sales of peanut butter and other nut butters
Figure 28: Leading FDMx brand sales and market share of peanut butter and other nut butters, 2009-10

BRAND SHARE—JAMS, JELLIES, PRESERVES AND FRUIT BUTTERS
Key points
Growing interest in specialty items
Private label contributes to segment growth
Manufacturer and brand sales of jams, jellies, preserves, and fruit butters
Figure 29: Leading FDMx brand sales and market share of jam, jelly, preserves, and fruit butter, 2009-10

BRAND SHARE—HONEY
Key points
Sweet opportunity for many players
Manufacturer and brand sales of honey
Figure 30: Leading FDMx brand sales and market share of honey, 2009-10

INNOVATIONS AND INNOVATORS
Key points
New product innovation trends in savory/sweet spreads sector
Total new innovations by category and subcategory
Figure 31: Total new innovations, by category and subcategory, 2005-10
A time for healthier options
Figure 32: Product and packaging claims, by category, 2005-10
Retailers pressing with innovation
Figure 33: Private label and name brand launches in savory and sweet spreads, 2005-10
Figure 34: Product launches across the top 20 companies in savory and sweet spreads, 2005-10
Innovations
Private label
Natural/organic
Convenience

BRAND AND MARKETING STRATEGIES
OPPORTUNITIES FOR INNOVATION AND DEVELOPMENT
MANUFACTURER DEVELOPMENTS

A natural fit for Skippy
A Smart Balancing Act
Sales supported with consistent web messaging
Three-tier spreads strategy

TELEVISION ADVERTISING

Savory spreads tap lifestyle choices
Figure 35: Smart Balance Buttery Spreads Women running, man at refrigerator television ad, 2009
Dancing with the groceries
Figure 36: I Can’t Believe It’s Not Butter Megan Mullally and male employee dance and sing television ad, 2009. 66
Smucker’s sweet spreads market with heart
Motherly love
Figure 37: Jif Mom sends college girl package with love. television ad, 2009
When I was a kid…
Figure 38: Smucker’s Tim practices his name. Richard does, too. television ad, 2009
The influence of social media

HOUSEHOLD CONSUMPTION OF SAVORY AND SWEET SPREADS
Key points
Usage of savory and sweet spreads
Figure 39: Household usage of sweet and savory spreads, by key demographics, February 2009-March 2010
Trends in spreads usage
Figure 40: Spreads usage, by type of spread, 2004-09
Personal usage of savory spreads
Figure 41: Usage of savory spreads, by household income, July 2010
Personal usage of sweet spreads
Figure 42: Personal usage of sweet spreads, by household income, July 2010

KIDS’ AND TEENS’ USAGE OF PEANUT BUTTER AND JELLY
Key points
Peanut butter and jam usage among kids and teens
Kids aged 6-11
Figure 43: Peanut butter usage, among kids 6-11, by gender, November 2008-December 2009
Figure 44: Jam usage, among kids 6-11, by gender, November 2008-December 2009
Teens aged 12-17
Figure 45: Peanut butter usage, among teens 12-17, by gender, November 2008-December 2009
Figure 46: Jam usage, among teens 12-17, by gender, November 2008-December 2009

HOW AND WHEN CONSUMERS USE SPREADS
Key points
Usage of spreads for baking and cooking
Figure 47: Usage of various spreads for baking, by age, July 2010
Figure 48: Usage of various spreads for cooking, by age, July 2010
Usage of savory spreads with bread/toast/sandwiches
Figure 49: Usage of various savory spreads with bread/toast/sandwiches, by age, July 2010
Usage occasions for sweet spreads
Figure 50: Usage occasions for various sweet spreads, July 2010

CONSUMER ATTITUDES TOWARD SPREADS
Key points
Attitudes towards butter and margarine
Figure 51: Attitudes toward butter and margarine, by age, July 2010
Health and positioning attributes that matter most to spreads consumers
Figure 52: Important health claims and product attributes, by age, July 2010

IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Race/ethnicity offer challenges and opportunities to the market
Peanut butter
Figure 53: Peanut butter usage, by race/Hispanic origin, February 2009-March 2010
Jams, jellies, and preserves
Figure 54: Jams, jellies, and preserves usage, by race/Hispanic origin, February 2009-March 2010
Figure 55: Jams, jellies, and preserves usage, by brands/frequency, and by race/Hispanic origin, February
2009-March 2010
Butter
Figure 56: Butter usage, by race/Hispanic origin, February 2009-March 2010
Margarine
Figure 57: Margarine usage, by race/Hispanic origin, February 2009-March 2010
Use of spreads for cooking
Figure 58: Usage of spreads for cooking, by race/Hispanic origin, July 2010
Attitudes towards butter and margarine
Figure 59: Attitudes towards butter and margarine, by race/Hispanic origin, July 2010

APPENDIX: OTHER USEFUL CONSUMER TABLES
Usage of savory spreads
Figure 60: Usage of various savory spreads, by age, July 2010
Usage of spreads for baking
Figure 61: Usage of various spreads for baking, by household income, July 2010
Usage of savory spreads with bread/toast/sandwiches
Figure 62: Usage of various savory spreads with bread/toast/sandwiches, by household income, July 2010
Attitudes towards butter and margarine
Figure 63: Attitudes towards butter and margarine, by household income, July 2010
Health and positioning attributes that matter most to spreads consumers
Figure 64: Important health claims and product attributes, by household income, July 2010
Important health claims and product attributes
Figure 65: Important health claims and product attributes, by race/Hispanic origin, July 2010

APPENDIX: TRADE ASSOCIATIONS

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