10 reasons to invest

1. A DEFENSIVE MARKET

The UK grocery sector should see 3.1% growth in 2009, compared with a 0.6% decline in spending across the whole retail arena.

Source: Verdict

Despite the backdrop of economic uncertainty the overall food and drink sector has remained resilient. Consumers are tending to cut back on discretionary higher value items such as holidays, cars, and clothing before sacrificing the quality of foods they are used to buying. What has become important in the food and drink sector is the ability to offer good value for money at the ‘right’ price whilst still focusing on the key consumer drivers of convenience, health, pleasure and responsibility.

2. CONVENIENCE RULES

One in three UK shoppers considers convenience foods when choosing which food to buy.

Source: Mintel

People continue to look for short-cuts in all aspects of food preparation from how they buy, to how they prepare, cook and eat their meals. There is a generation of consumers who have been brought up with convenience-led solutions, including regular consumption of fresh prepared foods, which are part of their day-to-day lifestyles.

3. FOOD FOR EVERY NEED AND BUDGET

Within the next 20 years 40% of UK households will be single person households.

Source: Daily Mail March 2009

In larger households, family members may be sitting down to eat meals at different times and prefer something different to the rest of the family. For single person households, buying fresh prepared foods can often be a cheaper alternative than buying individual ingredients to create a meal. Fresh prepared foods therefore provide convenient, cost-effective solutions to fragmented eating patterns.

4. COOKING FROM SCRATCH?

In the UK, 10% of consumers are unable to cook and a further 18% have a very limited repertoire.

Source: IGD

Despite a growing emphasis on cooking from scratch, the reality is that many people are unable or unwilling to do this day in day out and fresh prepared foods remain a viable alternative. In fact today many people classify using fresh semi-prepared ingredients such as pasta sauces and prepared vegetables as cooking from scratch as people still feel they are involved in the cooking process.

5. EATING IN IS THE NEW EATING OUT

We produced an additional 1 million ready meals from July 2008 to December 2008 to meet the demand for Meal Deal/ Dine In promotions.

Source: Bakkavör

Eating habits are being affected by the recession as people manage tighter budgets. People are tending to cut back on eating out in upmarket restaurants instead treating themselves to restaurant quality foods they can easily prepare at home at a price they can afford. In the UK, for example, retailer ‘dine in’ meal promotions have become a popular choice.

6. CONSUMER DEMAND FOR A HEALTHY BALANCE

Demand for freshly prepared fruit in the UK has increased by 57% over the last two years.

Source: Bakkavör

Rising obesity levels remain a key concern around the world. Confused by the constant stream of ‘health’ messages people are tending to take a simpler approach to health looking for meal solutions made from naturally healthy ingredients. The fresh prepared foods sector has been one of the most successful in providing naturally healthy convenient meal options that contain a balance of innately beneficial ingredients such as nuts, fish and vegetables.

7. REAL ASSETS DELIVERING VALUE

We operate in a ‘just in time’ environment producing a portfolio of over 6,000 fresh prepared products in 18 categories. Adapting quickly comes as second nature to us.

Source: Bakkavör

Due to the nature of fresh prepared foods we operate in a demanding ‘just in time’ environment, requiring flexibility and efficiency to adapt quickly to changes in requirements on a day-to-day basis. We have over 19,000 employees based across 63 factories which produce an extensive portfolio of hot- and cold-eating products under our customers’ value, standard, healthy and premium ranges – these are the real assets of our business.

8. RETAIL GLOBALISATION

We trade with 7 of the ten largest global grocery retailers.

Source: Bakkavör

Although retailers are likely to take a more cautious and targeted approach to international expansion in the short term, in the long term global retailers such as Tesco, Wal-Mart, Carrefour and Metro are expected to focus increasingly on emerging market growth. Our expertise in and commitment to manufacturing fresh prepared foods under retailer brands is recognised by our customers. This means we are well placed to continue to expand with our customers overseas as well as in their domestic markets, helping them achieve their strategic goals.

9. TARGETING EXPANDING MARKETS

We have operations in 6 of the top ten largest grocery retail markets.

Source: Bakkavör

Our presence in Europe, Asia and the US reflects the Group’s targeted growth aspirations to capitalise on steadily increasing consumer demand in key markets around the globe. Our current sales growth in these regions is strong and our well invested facilities provide a favourable platform for future advancement.

10. RETAILER BRANDS ARE FLOURISHING

Retailer branded products account for more than $81bn in the US, with health and wellness claims among the strongest-growing categories.

Source: Foodnavigator-usa.com.

Increasingly grocery retailers are focusing on their retailer branded ranges in order to provide good value for money and grow loyalty towards their ‘brand’. More and more shoppers are turning to retailer brands as they are finding that these are just as good as, if not better than, manufacturer brands. Our experience as a retailer branded supplier with a wide product range and ability to adapt our portfolio rapidly means we can meet the demands of our customers and their consumers at any given time.

 

More Information

 

 

Reykjavik Head Office • Ármúli 3 • 4th Floor
IS-108 Reykjavík • Iceland • Tel: +354 550-9700

UK Office • West Marsh Road • Spalding • Lincolnshire
PE11 2BB • UK • Tel: +44 (0) 177 576 1111