Organic Produce. Data Ending 28 th February 16

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1 Organic Produce Data Ending 28 th February 16

2 SUMMARY In the latest quarter Organic Produce has reached its highest level in both Value and Volume, following an overall strong During 2015 Organic Produce has consistently overperformed vs. Non-Organic, although both have returned to growth after a poor Organic Produce is worth 213m and has grown 15.6% over the past year driven by shoppers buying more per trip & buying more often. Repeat shoppers are driving the market, and existing shoppers have spent more this year on Organic Produce than last year. Organic Produce Shoppers are more likely to be older & affluent. They try to lead a healthy lifestyle & are valuable shoppers spending 302 a year on Produce. Bananas are the best selling Organic Produce item worth 29m, whilst Kale is the best performing over the past year. 2

3 How has Organic Produce changed in value and volume over time? In the latest 12 weeks Organic Produce has reached its highest Value & Volume level over the past 5 years, following strong growth throughout Value ( 000s) Volume (000kgs) M J J A S O N D J F MA AM J J A S O N D J F MMAM J J A S O N D J F MMAM J J A S O N D J F MMAM J J A S O N D J J F w/e 28 th February 2016

4 How has Organic Produce performed vs. Non-Organic over time? Following a struggling performance for Total Produce in 2014, both Organic & Non-Organic returned to growth in Organic Produce far outperforms its counterpart throughout 2015 into 2016 in both value and volume. 25.0% YoY % 20.0% Organic Value YoY% 15.0% 10.0% 5.0% Organic Volume YoY% 0.0% -5.0% Non-Organic Volume YoY% -10.0% -15.0% Non-Organic Value YoY% -20.0% M J J A S O N D J F M M A M J J A S O N D J F M M A M J J A S O N D J F M M A M J J A S O N D J J F w/e 28 th February 2016

5 What has driven Organic Produce over the past year? A combination of an increased shopper base, with shoppers buying more per trip and returning to the fixture more often has contributed to 15.6% growth in Organic Produce. Measure 52 w/e w/e 28 Change Change Mar 15 Feb 16 (Actual) (%) Spend ( 000) 184, , , % Volume (000 kg) 75,705 88, , % Penetration (%) % Frequency % Spend per Buyer ( ) % Volume per Buyer (kg) % Spend per Trip ( ) % Volume per Trip (kg) % Price per kg ( ) % Value up 15.6% worth 28.8m -5, ,000 10,000 15,000 20,000 25,000 30,000 35,000 Spend ( 000) 213m (+15.6%) m Volume (000 kg) 88.4m (+16.8%) m Price per kg ( ) 2.41 (-1%) - 1,722k Volume per Buyer (kg) 5.8 kg (+13.1%) m Penetration (%) 57.1% (+2.2%) + 6,127k Frequency 6.4 trips (+5.5%) m Volume per Trip (kg) 0.9 kg (+7.2%) m * Penetration contribution includes population growth of 1%

6 How has the contribution to growth changed over time in Organic Produce The growth in Organic Produce over the past year has been predominantly driven by existing shoppers spending more on the category, whilst there have also been some gains from shopper switching their spend from Non-Organic to Organic Produce. This follows a period of time where shoppers were dropping Organic from their Produce buying repertoire Organic, Rolling Source of Change in Spend ( 000s) Total Switching Category Level Changes Shoppers Held Shoppers Won Category Departures

7 03 Mar Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Jan Feb 16 Actual Contribution (000,000s) What type of Shoppers have driven Organic Produce growth? The Organic Produce market benefits from repeat shoppers who are engaged with the category. Very little growth in the latest 52 weeks has come from new shoppers entering the market Organic - Net New/Lost & Repeat Buyers - Contribution to Change Net New/Lost Repeat Total

8 So, who are the Organic Produce shoppers? Organic Produce shoppers are from medium sized, more affluent households and overtrade strongly in London. OVER INDEX ON SOCIAL CLASS AB (113) C1 (103) Aged 55+ OVER INDEX ON 1-2 CHILDREN AT HOME (101) 2-4 Member Households OVER INDEX ON 2-4 MEMBER HOUSEHOLDS (110, 104 & 104) OVER INDEX ON YOUNG FAMILY 0-4 YEARS (102) OLDER DEPENDENTS (109) RETIRED (106) More Affluent OVER INDEX IN LONDON (112) SOUTH (104) E.ENGLAND (101) WALES+W (104) OVER INDEX HW AGED (101) 65+ (107) Total Organic Produce Shopper Buyer % *Benchmarked vs. Total Produce Shoppers

9 What is important to Organic Produce Shoppers? 76.7% agree that they try to lead a healthy lifestyle Almost 40% tend not to work to a strict budget 41.7% disagreed with the statement I have little time to myself 62% consider themselves a good cook 9 1 year continuous panel

10 Organic Produce shoppers spend 302 per year on fresh produce that s 122 more than a non-organic produce shopper! 10

11 What are the best selling Organic Produce items? All of the top 10 best selling items are in growth, apart from mushrooms. 1 29m m +28.8% m +11.8% m +6.2% m +11.0% +30.3% 11

12 What are the best performing Organic Produce items? Year on Year Value Growth. 1 million minimum. 1)KALE Up 262.5% 2)AVOCADO Up 104% 3)LEMON Up 62.4% 4)ORANGE Up 52.3% 5)DATES Up 49.5% 12

13 Thank you For further information please contact: Lauren Webb Telephone: +44 (0)