Breakfast Cereals - France - February 2004

SUMMARY

France- Breakfast is not traditionally a large meal in France, however themarket has remained relatively buoyant. Indulgent adult products such as thosecontaining chocolate chunks or flakes are being launched. How can supplierstarget the teenagers and young adults who are vital to the future growth of thissector?

Spain- a declining birth rate and ageing population is giving suppliers manyopportunities in Spain. Healthy eating and snacking trends combined with thegrowth in popularity of organic foods has changed the face of this sector. Wheredo most Spanish consumers buy their cereal from? Have discounters had a similarimpact in Spain as they have across Germany?

UK- the declining number of children has a major impact on this market and thetraditional breakfast cereal market will diminish. But where are the areas ofgrowth for your business? Single person households and an increased number ofover 55s are favourable emerging trends. What impact will the functional healthtrends have upon the market? How have the major suppliers fared against thegrowing popularity of own-brand cereals?

Germany- time spent at the breakfast table is diminishing in Germany, however aninteresting phenomenon has been developing - in large households individuals aretending to choose their own meals and eat alone. The opportunity is for a broadrange of products and shift towards smaller packs or single-portions. How hadtraditional suppliers fared against the strong discount chains such as Aldioffering their own-brand alternatives? How can you capitalise upon the trendsfor adult lines, cross boundary extensions and luxury muesli?

Italy- a very dynamic market with ready-to-eat cereals accounting for nearly 98%of the total market value. Why are Italian women the prime target for cerealmanufacturers? How can your business benefit from the trend for lighterbreakfasts and eating quickly? There has been a change in breakfast eatinghabits as a result of the trend towards healthy eating and demand foradded-value goods. Where are the main threats to this sector of the foodindustry?

Mintels latest pan-European report has been designed to offer you an actionableguide to the European market for breakfast cereals.

Written by local industry experts for industry professionals, it provides thelevel of information you need to focus your marketing activity towards the mostprofitable sectors of the market. As it maps out the industry trends that shapethe sector in each of the five key European markets, it also uses consumerresearch to identify key target groups whose custom you must capture. Mintelsresearch answers the crucial industry questions, offering you new analysis ofmarket drivers, market size and trends, market segmentation, distribution,supply structures, NPD, consumers and market forecasts in each report.

A unique level of coverage ensures that your R&D, category management andmarketing teams will have both an holistic understanding of the entire sectorand a valuable insight into local sector trends and consumer habits. Which meansthat Mintels research is highly relevant at any level of the decision makingprocess, whether it be the initial developmental stages or the later brandbuilding exercises.

Please note that Breakfast Cereals in France is published as part of theBreakfast Cereals in Europe title. Should you wish to order more than one marketreport from within the Breakfast Cereals in Europe title, please feel free tocontact our Information Team to discuss potential multiple-purchase discounts.

TABLE OF CONTENTS

Introduction

• Definitions

Abbreviations

Executive Summary

• Not big breakfast eaters
• Rate of growth starting to slow
• Hot cereals have only 1% of the market
• French have a particular fondness for chocolate cereals
• But fitness also appeals
• Supermarkets and hypermarkets dominate sales
• Kelloggs and Cereal Partners lead the market
• Indulgence and health
• More growth, but not without effort

Market Drivers

• The French are not traditionally big breakfast eaters
• Lots of competition from alternative products
• Targeting adults
• Figure 1: Trends in French population, by gender and age, 1998-2002
• Figure 2: Trends in number of households in France, by size, 1998-2002
• Potential for premium products
• Figure 3: Trends in French personal disposable income and consumer expenditure, at current and constant prices, 1998-2003
• Healthy eating appeals
• Figure 4: Attitudes towards food quality issues, by country, 2002

Market Size and Trends

• Figure 5: French retail value sales of breakfast cereals, at current and constant prices, 1998-2003
• Figure 6: Per capita consumption of breakfast cereals, by country, 1998 and 2003
• Figure 7: French retail value sales of breakfast cereals, by type, 1999-2003
• Figure 8: French retail value sales of ready-to-eat breakfast cereals, at current and constant prices, 1998-2003
• Figure 9: French retail value sales of hot breakfast cereals, at current and constant prices, 1998-2003
• Figure 10: French retail volume sales of breakfast cereal, by sector, 1998-2003
• Figure 11: Average price paid for breakfast cereals, by sector, 1999-2003
• Figure 12: Indexed retail value sales of breakfast cereals, by country, 1998-2003

Market Segmentation

• Figure 13: French retail value sales of RTE breakfast cereals, by type, 2001-03
• Basic products decline in favour of added-value
• Adolescent cereals is the fastest growing category
• Figure 14: French retail value sales of RTE breakfast cereals, by target group, 2001-03
• Figure 15: Importance of childrens products to the RTE cereals sector, by country, 2003
• Older adults are also a key target group

Distribution

• Figure 16: French retail value sales of breakfast cereals, by outlet, 2001-03
• Trading base
• Figure 17: Number of supermarkets, hypermarkets and discounters in France, 1998-2002
• Figure 18: Major French retailers of daily goods, by number of outlets, 2002/03

The Supply Structure

Manufacturer and brand shares

• Figure 19: Manufacturers shares of the breakfast cereals market, 2001 and 2003
• Figure 20: Leading brand shares in the breakfast cereals market, top two suppliers, 2001 and 2003

Companies and brands

• Kelloggs
• Cereal Partners France
• Jordans
• Quaker
• Weetabix

New Product Development

• New product launches, 2003

The Consumer

• Pan-European comparison
• Figure 21: Consumption of breakfast cereals, by country, 2003
• Penetration of cereals in France around half of that in GB
• Figure 22: Frequency of eating cereals, by country, 2003
• Consumption of cereals in France
• Figure 23: Penetration and frequency of eating breakfast cereals in France, by gender and age, 2003
• Consumer base extending away from core younger age groups
• Figure 24: Consumption of breakfast cereals in France, by age, 2003
• Figure 25: Penetration and frequency of eating breakfast cereals in France, by income and working status, 2003
• Premium lines may fail to strike a cord with core consumer base
• Figure 26: Penetration and frequency of eating breakfast cereals in France, by region, 2003
• West of France lags behind in take up of cereals
• Figure 27: Penetration and frequency of eating breakfast cereals in France, by presence of children and household size, 2003
• Children are of great importance to the market
• Diet and shopping attitudes among cereals consumers
• Figure 28: Attitudes towards diet, all adults vs. breakfast cereal consumers, 2003
• Cereals are good for fibre intake
• Figure 29: Attitudes towards shopping, all adults vs. breakfast cereal consumers, 2003
• Cereals consumers are brand loyal, but price-motivated
• Mintels European Target Groups
• Figure 30: Mintels European Food Target Groups, by country, 2003
• Figure 31: Penetration and frequency of eating breakfast cereals, by target groups, 2003

Prospects

• Breakfast becoming more important
• Attracting mature consumers
• More specific product segmentation
• Competition to cereals, or increasing eating opportunities?
• Indulgence products a particular trend
• Wellness also taking off

Forecast

• A level of maturity
• Figure 32: Forecast of French retail sales of breakfast cereals, volume and value, 2003-07
• Volume sales to peak in 2006...
• Figure 33: Forecast of French retail value sales of breakfast cereals, by type, 2003-07
• ...but value sales to maintain momentum
• Declining numbers of children

Appendix: Research Methodology