Cheese - Ireland - January 2004

SUMMARY

In response to increasing demand for data concerning the dynamic economy andgrowth markets of Northern Ireland and The Republic of Ireland, Mintel hasdeveloped a series of reports covering a wide variety of sectors within both ofthese dynamic regions. Each one provides detailed coverage of key drivers aswell as providing the very latest volume and value data. Also included areassessments of emerging trends, the activities of existing market players, brandownership details, supply structures, future scenarios and statisticalforecasts.

The Irish Series is segmented in the same manner as Mintels UK reports, namelyFinance, Leisure, Market, Retail and Specials. This provides unparalleledcoverage and will be a must for all companies who are either already active inthis region, or will be looking to enter these distinct marketplaces in thefuture.

This report has been produced as part of Mintels Irish Series and is sold inIreland exclusively through our sales agency, OCO Consulting, based in Belfast.

TABLE OF CONTENTS

Introduction and Abbreviations

• Definitions
• Geographical, national and regional definitions
• Conversion factors
• Exchange rates
• Consumer research
• BMRB Target Group Index sample sizes
• Abbreviations
• User group definitions

Executive Summary

All-Ireland cheese market valued at €208.7 million in 2003

Product innovation boosts growth

Popularity of cheddar

Versatility

Trading up towards premium brands

Demand for convenience

Consumers becoming more adventurous

Health

Growth driven by families and larger households

Adult consumers in NI and RoI are more likely to be either heavy or light users

The future

Market Drivers

Northern Ireland economy

• Figure 1: Economic performance, NI, 2002-04

Republic of Ireland economy

• Figure 2: Economic performance, RoI, 2002-04

Population trends in NI

• Figure 3: NI demographics, by age group, 1998-2007

Population trends in RoI

• Figure 4: RoI demographics, by age group, 1998-2007

Aggressive advertising strategies

• Figure 5: Per capita consumption of cheese, by country, 2002

More young adults demanding snacks and mini-meals

Increased consumer expenditure

Opportunity for premium and indulgence

Travel helps to widen consumer tastes

Health

Convenience

Portion size developments

Growth driven by increase in number of households

Cheese benefits from growth of speciality food market

Market Size and Trends

Ireland

• Figure 6: Retail sales of cheese, all-Ireland, 1998-2003

Republic of Ireland

• Figure 7: Retail sales of cheese, RoI, 1998-2003

Northern Ireland

• Figure 8: Retail sales of cheese, RoI, 1998-2003

Market Segmentation

Republic of Ireland

• Figure 9: Retail sales of cheese, by sector, RoI, 2003

Northern Ireland

• Figure 10: Retail sales of cheese, by sector, NI, 2003

Cheddar

Processed

Territorial

Natural soft cheese

Continental

Pick n mix

The Supply Structure

Companies and brands

• Golden Vale Plc
• Dairygold Co-operative Society
• Glanbia Plc
• Glanbia
• Kerrygold
• The Carbery Group
• Kraft Foods Inc
• Horgans
• SHS Sales & Marketing
• Kavli
• Dale Farm Ltd
• Dunman Factory
• Fivemiletown
• Other players

Distribution

• Figure 11: Grocery and convenience retailers in NI, 1998-2003
• Figure 12: Grocery and convenience retailers in RoI, 1998-2003

Supermarket multiples

• Figure 13: Grocery supermarket multiples, by number of outlets, RoI and NI, 2002

Petrol station forecourts

• Figure 14: Number of forecourts, by main operators, all-Ireland, 2000

The Consumer

Cheese in blocks in RoI

• Figure 15: Usage of cheese in blocks, by demographic sub-group, RoI, 2002 and 2003

Cheese in blocks in NI

• Figure 16: Usage of cheese in blocks, by demographic sub-group, NI, 2002 and 2003

Usage of cheese in blocks in RoI

• Figure 17: Weight of usage of cheese in blocks, by demographic sub-group, RoI, 2003

Usage of cheese in blocks in NI

• Figure 18: Weight of usage of cheese in blocks, by demographic sub-group, NI, 2003

Families dominate usage in RoI

• Figure 19: Weight of usage of cheese in blocks, by lifestage and presence of children , RoI, 2003

Retired adults dominate usage in NI

• Figure 20: Penetration of cheese in blocks, by lifestage and presence of children , NI, 2003

Packet, spread and speciality cheese in RoI

• Figure 21: Usage of packet, spread and speciality cheese, by demographic sub-group, RoI, 2002 and 2003

Packet, spread and speciality cheese in NI

• Figure 22: Usage of packet, spread and speciality cheese, by demographic sub-group, NI, 2003 and 2003

Weight of usage of packet, spread and speciality cheese in RoI

• Figure 23: Weight of usage of packet, spread and speciality cheese, by demographic sub-group, RoI, 2003

Weight of usage of packet, spread and speciality cheese in NI

• Figure 24: Weight of usage of packet, spread and speciality cheese, by demographic sub-group, NI, 2003

Families with young children important in RoI

• Figure 25: Weight of usage of packet, spread and speciality cheese, by lifestage and presence of children, RoI, 2003

Presence of children aged 5-15 important in NI

• Figure 26: Weight of usage of packet/spread/speciality cheese, by lifestage and presence of children, NI, 2003

Greater penetration among larger households in RoI

• Figure 27: Penetration of packet/spread/speciality cheese, by working status and household size, RoI, 2003

Greater penetration among larger households in NI

• Figure 28: Weight of usage of packet, spread and speciality cheese, by working status and household size and region, NI, 2003

Cheese slices remain main purchases in RoI and NI

• Figure 29: Packet/spread/speciality cheese purchased, RoI, 2002 and 2003
• Figure 30: Packet/spread/speciality cheese types, NI, 2002 and 2003

Irish cheddar dominates uptake in block cheese category

• Figure 31: Cheese in blocks/types of cheese, ever use, RoI, 2003 and 2003
• Figure 32: Cheese in blocks/types of cheese, ever use, NI, 2002 and 2003

The Future

Innovation

Population

Changing lifestyles and taste

Snacking benefits processed cheese

Marketing support required

Forecast

All Ireland

• Figure 33: Forecast retail sales of cheese, all-Ireland, 2003-08

Northern Ireland

• Figure 34: Forecast retail sales of cheese, NI, 2003-08

Republic of Ireland

• Figure 35: Forecast retail sales of cheese, RoI, 2003-08

Appendix: Research Methodology