EXTERNAL SCIENTIFIC REPORT

Transcription

1 EXTERNAL SCIENTIFIC REPORT Report of data collection with respect to the availability and nutritional composition of different types of milk-based drinks and similar products for young children with the denomination of growing up milks or toddlers' milks or with similar terminology currently on the market in EU Member States 1 ABSTRACT Beatriz Pérez, Franco Segarra, Maria Frontera, Blanca Viadel AINIA, Centro Tecnológico In 2013, the European Food Safety Authority (EFSA) received a mandate from the European Commission to provide advice on milk-based drinks and similar products intended for infants and young children (M ). This request also includes advice to be provided on the importance and role of so-called growing up milks, toddlers' milks or similar products in the diet of children aged 1-3 years. In this regard, it is necessary to collect data on the availability and nutritional composition of these types of products currently available in EU Member States. For this purpose, the aim of this project was the collection of data related to the availability and nutritional composition of so-called growing up milks, toddlers' milks or similar products intended for children aged 1-3 years currently on the market in EU Member States. These type of products may include but are not limited to drinks (either in liquid form or powder form to be reconstituted) based on cow, goat or sheep milk or originating from soy, rice, oat or almonds with or without modification of the protein composition or content and supplementation of fatty acids, micronutrients or other substances with a potential nutritional effect, such as probiotics, prebiotics or symbiotics, and are specifically targeted at children aged 1-3 years, usually to replace intake of cow s milk. AINIA Centro Tecnológico, 2013 KEY WORDS growing up milks, toddlers milks, nutritional composition, market share DISCLAIMER The present document has been produced and adopted by the bodies identified above as author(s). This task has been carried out exclusively by the author(s) in the context of a contract between the European Food Safety Authority and the author(s), awarded following a tender procedure. The present document is published complying with the transparency principle to which the Authority is subject. It may not be considered as an output adopted by the Authority. The European Food Safety Authority reserves its rights, view and position as regards the issues addressed and the conclusions reached in the present document, without prejudice to the rights of the authors. 1 Question No EFSA-Q Any enquiries related to this output should be addressed to nda@efsa.europa.eu Suggested citation: AINIA, Centro Tecnológico, Report of data collection with respect to the availability and nutritional composition of different types of milk-based drinks and similar products for young children with the denomination of growing up milks or toddlers' milks or with similar terminology currently on the market in EU Member States. EFSA supporting publication 2013:EN-505, 35 pp. Available online: European Food Safety Authority, 2013

2 SUMMARY In 2013, the European Food Safety Authority (EFSA) received a mandate from the European Commission to provide advice on milk-based drinks and similar products intended for infants and young children (M ). This request also includes advice to be provided on the importance and role of so-called growing up milks, toddlers' milks or similar products in the diet of children aged 1-3 years. In this regard, it is necessary to collect data on the availability and nutritional composition of these types of products currently available in EU Member States. The main aim of this tender has been to conclude a direct contract for the collection of data related to the availability and nutritional composition of so-called growing up milks, toddlers' milks or similar products intended for children aged 1-3 years currently on the market in EU Member States. The specific objectives have been: To collect and collate data related to so-called growing up milks, toddlers' milks or similar products intended for children aged 1-3 years which are currently on the market in EU Member States. To collect and collate data on their nutritional composition, including information on whether products marketed under the same trade name in different Member States show differences in their composition. To provide an estimate of the market share of different brands in the individual markets. In this procurement procedure, information on a total of 244 growing up milks, toddlers' milks or similar products intended for children aged 1-3 years currently on the market in EU Member States were collected, and information on median, minimum and maximum content of nutrients in these products was collated. Also, the market share of the top players accounting for 80 % of the market was estimated and presented for the following 12 European countries: Austria, Belgium, Finland, France, Germany, Italy, Netherlands, Portugal, Spain, Sweden, Switzerland and the UK. The EU Members States included represent around 75 % of the total EU population (calculated from Eurostat data). 2

3 TABLE OF CONTENTS Abstract... 1 Summary... 2 Table of contents... 3 Background as provided by EFSA... 4 Terms of reference as provided by EFSA... 4 Introduction and Objectives... 5 Materials and Methods Information source for the collection of data Data collection Data dumping Market share estimation Results Result of Data collection Result of Market share estimation Market share estimation growing up milks - Spain Market share estimation growing up milks - Portugal Market share estimation growing up milks - the Netherlands Market share estimation growing up milks - Italy Market share estimation growing up milks - Germany Market share estimation growing up milks United Kingdom Market share estimation growing up milks France Market share estimation growing up milks Belgium Market share estimation growing up milks Austria Market share estimation growing up milks Switzerland Market share estimation growing up milks Finland Market share estimation growing up milks Sweden Combined Retail market value Abbreviations

4 BACKGROUND AS PROVIDED BY EFSA Data collection with respect to the availability and In 2013, the European Food Safety Authority (EFSA) received a mandate from the European Commission to provide advice on milk-based drinks and similar products intended for infants and young children (M ). This request also includes advice to be provided on the importance and role of so-called growing up milks, toddlers' milks or similar products in the diet of children aged 1-3 years. In this regard, it is necessary to collect data on the availability and nutritional composition of these types of products currently available in EU Member States. TERMS OF REFERENCE AS PROVIDED BY EFSA The objectives of the contract resulting from the present procurement procedure are as follows: To collect and collate data related to so-called growing up milks, toddlers' milks or similar products intended for children aged 1-3 years which are currently on the market in EU Member States. To collect and collate data on their nutritional composition, including information on whether products marketed under the same trade name in different Member States show differences in their composition. To provide an estimate of the market share of different brands in the individual markets. This contract was awarded by EFSA to: AINIA, Centro Tecnológico Contract title: Data collection with respect to the availability and nutritional composition of different types of milk-based drinks and similar products for young children with the denomination of growing up milks or toddlers' milks or with similar terminology currently on the market in EU Member States. Contract number: NP/EFSA/NUTRI/2013/01 CT 01 4

5 INTRODUCTION AND OBJECTIVES The main aim of this tender has been to conclude a direct contract for the collection of data related to the availability and nutritional composition of so-called growing up milks, toddlers' milks or similar products intended for children aged 1-3 years currently on the market in EU Member States. The specific objectives have been: - To collect and collate data related to so-called growing up milks, toddlers' milks or similar products intended for children aged 1-3 years which are currently on the market in EU Member States. - To collect and collate data on their nutritional composition, including information on whether products marketed under the same trade name in different Member States show differences in their composition. - To provide an estimate of the market share of different brands in the individual markets. AINIA is a Spanish Technological Centre that has more than 800 associated companies, and is focused on the agro-food sector, directly related with industries. AINIA has a wide expertise in the monitoring of commercial food products based on specific (technical and commercial) criteria. For this purpose, AINIA designed a Market Survey System MSS in food consumer packaged goods, on which is fed from food products databases FPD (MINTEL, Alimarket among others), with international coverage, and on our technical contact networking TCN (European networks and AINIA s staff with significant mobility around Europe for their wide participation in European projects), which can give us support to detect specific commercial products in different markets. Particularly in Europe, with this MSS, we cover 17 of the 27 EU Members States: Belgium, Czech Republic, Denmark, Germany, Ireland, Greece, Spain, France, Italy, Hungary, Netherlands, Austria, Poland, Portugal, Finland, Sweden and the United Kingdom. In these countries we carry out the market survey of consumer packaged goods in the different food industry sectors. This coverage represents 91 % of the total European population (calculated from Eurostat data), with significant geographic representation of the different areas of Europe: North, South, East and West. Furthermore, the New Products Department of AINIA has a wide experience in projects regarding the fortification and nutritional improvement of food products in order to obtain healthier products: selecting the best form in which these ingredients should be incorporated in the food matrix, formulating the products with the adjusted proportions of the ingredients, analysing their stability during processing and during storage, adapting the nutritional food product composition, and analysing their functional effect in the body by in vitro and in vivo studies. Also, this activity is supported by the Food Legislation Department, which provides the technical advice required for analysing the nutritional and health claims incorporated in the product labels from the legislative point of view. All this background provides AINIA s technical staff with a wide knowledge regarding food ingredients, their potential nutritional effect in the body and the nutritional improvements performed in food products; thereby allowing an analysis of the information collected from the different milk-based drinks and similar products (1-3 years). Taking into account the wide amount of items and information that has been generated with this tender, we also designed a software platform which clearly displays all the specific information of each item and allows data processing from the different fields of information entered to be performed. Finally our FPD (Food Product Database) has also provided us market share data which is continuously updated. Thereby, this FPD employs a Global Market Navigator (GMD) in order to get a trusted database (range of inputs plus trade interviews done by the FPD team) containing market size, market share and forecast data for thousands of consumer goods categories worldwide. Applying this FPD, AINIA provides an estimate of the market share of different brands in the individual markets in 12 of the Member States (Austria, Belgium, Finland, France, Germany, Italy, Netherlands, Portugal, 5

6 A. COLLECTING DATA Data collection with respect to the availability and Spain, Sweden, Switzerland and the UK), representing 75 % of the total EU population (calculated from Eurostat data). MATERIALS AND METHODS The following flow chart summarizes the methodology that has been applied: Food products databases (FPD) Technical Contact Networking (TCN) B. ESTIMATION OF THE MARKET SHARE AINIA MARKET SURVEY SYSTEM (MSS) DATA COLLECTION PROJECT QUALITY MANAGMENT ANALYSIS OF NUTRITIONAL INFORMATION DATA DUMPING IN SOFTWARE Figure 1: Methodology applied for the purpose of the tender 1. Information source for the collection of data In order to obtain the information required in the tender specification, we have applied the Market Survey System (MSS) in food consumer packaged goods which monitors commercial food products sold in the international markets. It allows us to collect product information based on specific criteria (technical and commercial). This MSS is fed by: - Food Products Databases (FPD): Among the different data sources that are used in AINIA s New Products Department, the GNPD (Global New Product Development) belonging to Mintel Group should be specified. It offers reliable data and robust reporting on product innovation with respect to more than 20,000 new food products that are added every month from 48 countries worldwide. GNPD have a wide internal staff network working in different countries around the world, who are continuously checking new products that are launched to the market with a significant geographic coverage. Every new product is registered with the technical and trade information. 6

7 - Technical Contact networking (TCN): It involves European Networks and AINIA s staff with significant mobility in Europe. Both of them have provided support to detect specific commercial products in different markets Data collection We identified, together with our contact from EFSA, the required specific information that had to be collected in order to fulfil the tender s main goals. The following chart shows one example of the variables that have been collected during the data collection from each product: Figure 2: Example of the variables collected from each product 1.2. Data dumping Taking into account the wide amount of items and information that has been generated during the course of this tender; a software platform was designed. This platform clearly displays all the specific information of each item and allows performing data processing from the different fields of information entered. This software platform has an efficient data base architecture to optimise all the information, together with a user friendly interface to simplify the data introduction and visualization. 7

8 2. Market share estimation Data collection with respect to the availability and To get the information required by the tender related to the market share estimation, AINIA staff has used the FPD (Food Product Database) explained above to provide us with market share data. This FPD employs a Global Market Navigator (GMN) in order to get a trusted database (range of inputs plus trade interviews done by the FPD team) containing market size, market share and forecast data for thousands of consumer good categories worldwide. As a result, AINIA technical staff has received this trade data in order to estimate the market share of specific consumer goods. Concretely, we have estimated market share of the top players accounting for 80 % of the market in the following 12 European countries: Austria, Belgium, Finland, France, Germany, Italy, Netherlands, Portugal, Spain, Sweden, Switzerland and the UK. The EU Members States included in this overview represent around 75% of the total EU population (calculated from Eurostat data). Our main FPD (Mintel Group) has forged a strong working relationship with the Economist Intelligence Unit (EIU). Both companies share a respected heritage in delivering market research, analysis and forecasts to business-leaders around the world. The EIU is the source of all socioeconomic data contained within GMN. With specialist economic and political insight for over 200 countries, EIU data perfectly complements GMN. 3. Results 3.1. Result of Data collection Applying the MSS (Market Survey System) we have succeeded in collecting a total of 244 growing up milks, toddlers' milks or similar products intended for children aged 1-3 years currently on the market in EU Member States. In figure 3, the number of growing up milk products retrieved per country is depicted. The countries with a greater number of products collected were France and Spain, followed by Italy and Germany. In contrast, the countries with a smaller number of products collected were Finland and Sweden. 8

9 Amount Amount Data collection with respect to the availability and Products per Country Austria Belgium Czech Republic Finland France Germany Greece Hungary Ireland Countries Italy Netherlands Poland Portugal Spain Sweden United Kingdom Figure 4: Total growing up milks collected by type of milk Also, the distribution of these products has been estimated by the type of milk: cow, goat and soy based products. Products per Type of Milk Cow Goat Soy Type of Milk Figure 5: Total growing up milks collected by type of milk The number of growing-up milks for children aged 1-3 years produced from milk other than cow's milk is not representative. Three products from goat milk and seven products from soy milk have been collected, in contrast to 234 products from cow s milk. Finally, the median, maximum and minimum values have been identified for each nutrient from the growing-up milks collected in this study. It has to be noted that these values of a specific nutrient have been calculated from the information collected from the product labels, taking into account only the products where this nutrient has been declared. That s why in some cases, the median, maximum and 9

10 minimum values are not the values of the total collected products but of the products where this nutrient has been declared. Table 1: Median, maximum and minimum value of the different macronutrients Nutrient Units Max (/100kcal) Min (/100 kcal) Median (/100 kcal) Protein g 6,735 2,000 2,615 Casein g 2,400 0,145 1,667 Whey Protein g 1,212 0,435 0,677 W/C ratio g 6,349 0,500 1,461 Carbohydrates g 15,422 7,262 12,583 Sugars g 13,731 3,077 9,851 Lactose g 13,509 0,109 8,955 Saccharose g 10,435 0,580 2,148 Glucose g 1,765 0,015 0,487 Maltose g 5,0000 0,0746 0,1964 Maltodextrin g 11,1940 1,3846 4,0896 Fat g 5,7231 3,0120 4,3141 Saturated Fat g 4,2857 0,2410 1,3636 Mono Unsaturated g 3,0000 0,6780 1,9403 Poly Unsaturated g 3,3846 0,3659 0,9091 Linoleic Acid Omega 6 g 2,3846 0,0582 0,7576 Arachidonic Acid ARA g 0,1670 0,0009 0,0064 Alpha Linolenic Acid Omega 3 mg 589,2308 0, ,9851 Eicosapentaenoic Acid EPA mg 81, , ,0378 Docosahexaenoic Acid DHA mg 42,6230 0,4412 6,4179 Fibers g 2,3913 0,0208 0,

11 Table 2: Median, maximum and minimum value of minerals Data collection with respect to the availability and Minerals Units Max (/100kcal) Min (/100 kcal) Median (/100 kcal) Sodium mg 85, , ,3952 Potassium mg 322, , ,7692 Chloride mg 166, , ,0000 Calcium mg 270, , ,8657 Phosphorous mg 185, , ,6119 Magnesium mg 48,9796 6, ,4478 Iron mg 2,8916 0,9639 1,7910 Zinc mg 3,0000 0,0746 1,1429 Copper mg 0,1386 0,0021 0,0615 Manganese mg 1,0448 0,0017 0,0142 Fluoride mg 0,1046 0,0020 0,0074 Selenium ug 6,7347 0,9836 2,3529 Iodine ug 54,0000 0, ,0000 Chromium ug 1,4545 1,4344 1,4445 Molybdenum ug 4,3636 4,0984 4,2310 Table 3: Median, maximum and minimum value of vitamins and some other nutrients Vitamins and others Units Max (/100kcal) Min (/100 kcal) Median (/100 kcal) Vitamin A ug 176,2500 9, ,5625 Vitamin D ug 6,0417 0,8696 2,1212 Vitamin E mg 7,0149 0,0013 1,6418 Vitamin K ug 16,3265 0,0065 7,5384 Vitamin C mg 34,7826 2, ,3968 Vitamin B1 - Thiamine mg 1,1940 0,0176 0,1167 Vitamin B2 - Riboflavine mg 1,2162 0,0030 0,1968 Vitamin B3 - Niacin mg 4,1429 0,0009 0,8955 Vitamin B6 mg 0,6791 0,0118 0,1012 Vitamin B9 - Folic Acid ug 42,2449 0, ,3881 Vitamin B12 ug 0,9111 0,0270 0,2769 Vitamin B8 - Biotin ug 7,5000 0,0030 3,1250 Vitamin B5 - Pantothenic Acid mg 6,7800 0,0007 0,7094 Choline mg 123,1884 0, ,9254 Inositol mg 14,9254 1,7391 6,3636 Taurine mg 19,4030 0,3279 8,0597 Carnitine mg 3,6765 1,0735 2,

12 3.2. Result of Market share estimation Market share estimation growing up milks - Spain Retail market volume - The retail market for growing up milk (Spain) increased in volume by 5.9 % in Market volume in 2012 was m tonnes. - The strongest retail growth in recent years for growing up milk (Spain) was in 2011, with a rate of 12.8 %. - Compound annual growth in retail of growing up milk (Spain) for the period was 9.8 %. *The 2013 values are a forecast from a range of inputs plus trade interviews Figure 6: Volume - Absolute size Figure 7: Volume - Volume Consumption per capita (population) Table 4: Volume - Spain Units Absolute size (000) Tonnes Volume Consumption per capita (population) Kg Sources: Economist Intelligence Unit - Trade Interviews, GMN Estimations 12

13 Market Shares Figure 8: Spain - Growing up milk: Company retail market share by volume (%) 2012 Table 5: Spain - Growing up milk: Company retail market share by volume (%) Market Player 2012 Nestlé S.A Groupe Lactalis 38.7 Hero Group GmbH 6.9 Groupe Danone S.A. 0.8 HiPP GmbH & Co. Vertrieb KG. 0.1 Others 16.7 Sources: Trade Interviews, GMN Estimations 13

14 Market share estimation growing up milks - Portugal Retail market volume - The retail market for growing up milk (Portugal) increased in volume by 4.6% in Market volume in 2012 was 0 m tonnes. - The strongest retail growth in recent years for growing up milk (Portugal) was in 2009, with a rate of 0.6%. - Compound annual growth in retail of Growing up milk (Portugal) for the period was -2.7%. *The 2013 values are a forecast from a range of inputs plus trade interviews Figure 9: Volume - Absolute size Figure 10: Volume - Volume Consumption per capita (population) Table 5: Volume - Portugal Units Absolute size Tonnes Volume Consumption per capita (population) Kg Sources: Economist Intelligence Unit - Trade Interviews, GMN Estimations 14

15 Market Shares Figure 11: Portugal - Growing up milk: Company retail market share by volume (%) Table 6: Portugal - Growing up milk: Company retail market share by volume (%) Market Player 2012 Nestlé S.A Groupe Danone S.A Lactogal Produtos Alimentares S.A 18.5 Pfizer, Inc Alter S.A. 5.8 Own Label 8.5 Others 6.4 Sources: Trade Interviews, GMN Estimations Notes: Nestlé S.A. acquired Pfizer, Inc. infant milk section, the deal was enforced as at first of December The shares stated are until the last week of November 2012; therefore, Pfizer, Inc. and Nestlé S.A. are stated separately. 15

16 Market share estimation growing up milks - the Netherlands Retail market volume - The retail market for growing up milk (Netherlands) increased in volume by 11.6% in Market volume in 2012 was m tonnes. - The strongest retail growth in recent years for growing up milk (Netherlands) was in 2010, with a rate of 11.6%. - Compound annual growth in retail of growing up milk (Netherlands) for the period was 8.8%. *The 2013 values are a forecast from a range of inputs plus trade interviews Figure 12: Volume - Absolute size Figure 13: Volume - Volume Consumption per capita (population) Table 7: Volume the Netherlands Units Absolute size (000) Tonnes Volume Consumption per capita (population) Kg Sources: Economist Intelligence Unit - Trade Interviews, GMN Estimations Notes: Toddler milk is the fastest growing segment in the baby food market. Innovation and promotions are dominating this market as the leaders are trying to extend the moment children are switching to regular milk. In 2011 the average age for starting drinking regular milk was 15.5 months, while in 2006 it was 11.5 months. 16

17 Market Shares Figure 14: Netherlands - Growing up milk: Company retail market share by volume (%) Table 8: Netherlands - Growing up milk: Company retail market share by volume (%) Market Player 2012 Groupe Danone S.A Hero Group 24.0 Nestlé S.A Own Label 15.8 Others 2.4 Sources: Trade Interviews, GMN Estimations 17

18 Market share estimation growing up milks - Italy Retail market volume - The retail market for growing up milk (Italy) increased in volume by 10.3% in Market volume in 2012 was m tonnes. - The strongest retail growth in recent years for growing up milk (Italy) was in 2011, with a rate of 21.8%. - Compound annual growth in retail of growing up milk (Italy) for the period was 9.7%. *The 2013 values are a forecast from a range of inputs plus trade interviews Figure 15: Volume - Absolute size Figure 16: Volume - Volume Consumption per capita (population) Table 9: Volume - Italy Units Absolute size (000) Tonnes Volume Consumption per capita (population) Kg Sources: Economist Intelligence Unit - Trade Interviews, GMN Estimations 18

19 Market Shares Figure 17: Italy - Growing up milk: Company retail market share by volume (%) Table 10: Italy - Growing up milk: Company retail market share by volume (%) Market Player 2012 H. J. Heinz Company 37.2 Groupe Danone S.A Nestlé S.A Humana Milchindustrie GmbH 6.1 Parmalat S.p.A. 5.1 Granarolo Group 0.2 Others 5.8 Sources: Trade Interviews, GMN Estimations 19

20 Market share estimation growing up milks - Germany Retail market volume Data collection with respect to the availability and - The retail market for growing up milk (Germany) increased in volume by 9.3% in Market volume in 2012 was m tonnes. - The strongest retail growth in recent years for growing up milk (Germany) was in 2008, with a rate of 79.7%. - Compound annual growth in retail of Growing up milk (Germany) for the period was 38.3%. *The 2013 values are a forecast from a range of inputs plus trade interviews Figure 18: Volume - Absolute size Figure 19: Volume - Volume Consumption per capita (population) Table 11: Volume - Germany Absolute size Volume Consumption per capita (population) Units (000) Tonnes 605 1,087 1,869 2,873 3,636 3,975 Kg Sources: Economist Intelligence Unit - Trade Interviews, GMN Estimations Notes: The market is relatively small in Germany as children above 1 year are usually fed with cow's milk. On the other hand it is considered a market with high potential: huge investments by the main companies and aggressive promotional activities resulted in double digit growth during the last few years with a considerable decrease in the average price per kilogram. 20

21 Market Shares Figure 20: Germany - Growing up milk: Company retail market share by volume (%) Table 12: Germany - Growing up milk: Company retail market share by volume (%) Market Player 2012 Nestlé S.A Groupe Danone S.A HiPP GmbH & Co. Vertrieb KG 13.9 Others 1.3 Sources: Trade Interviews, GMN Estimations Notes: Groupe Danone S.A. market share refer to the brands Aptamil (around 48% in value in 2012) and Milupa (around 14% in value). Nestle' S.A. market share refer to the brands Beba and Alete. 21

22 Market share estimation growing up milks United Kingdom Retail market volume - The retail market for growing up milk (UK) decreased in volume by 3.6% in Market volume in 2012 was m tonnes. - The strongest retail growth in recent years for growing up milk (UK) was in 2010, with a rate of 17.7%. - Compound annual growth in retail of growing up milk (UK) for the period was 8.5%. *The 2013 values are a forecast from a range of inputs plus trade interviews Figure 21: Volume - Absolute size Figure 22: Volume - Volume Consumption per capita (population) Table 13: Volume United Kingdom Units Absolute size (000) Tonnes Volume Consumption per capita (population) Kg Sources: Economist Intelligence Unit - Trade Interviews, GMN Estimations Notes: In 2011, the volume of growing up milk experienced strong growth due to a large number of promotions, in 2012 these promotions were reduced which has led to significant levels of inflation as the price per unit has increased, as well as a decline in volume sales. In the first quarter of 2013 there were concerns in the UK regarding unofficial exports of baby milk product to the Chinese market due to worries over food safety of locally produced baby milk products in China after a number of high profile scandals in recent years. This led to a steep increase of sales during this period, and supermarkets have responded by limiting consumers to 2 purchases per visit. The 1 4 year old baby milk market experienced 3.6% growth in the first 6 months of This growth rate is expected to fall in the 2nd half of the year as government policies limiting the amount consumers can buy take effect and the market is forecasted to grow 6.1% in the whole of

23 Market Shares Figure 23: UK - Growing up milk: Company retail market share by volume (%) Table 14: UK - Growing up milk : Company retail market share by volume (%) Market Player 2012 Groupe Danone S.A Pfizer, Inc. 0.0 Nestlé S.A Owm label 0.0 Others 3.5 Sources: Trade Interviews, GMN Estimations Notes: Prior to 2012, Nestlé S.A. did not have a presence in the baby milks market in the UK which stems from a major boycott of Nestlé S.A. products in the 1980's over aggressive marketing concerns. In December 2012, Nestlé S.A. completed the purchase of the SMA baby milk brand from Pfizer, Inc. and now have a presence in the market. In the future, more aggressive marketing practices are expected as Nestlé S.A. attempts to gain market share and Groupe Danone look to maintain their position as market leader. There are no own-label products currently available in the baby milks market in the UK. 23

24 Market share estimation growing up milks France Retail market volume - The retail market for growing up milk (France) increased in volume by 2.6% in Market volume in 2012 was m tonnes. - The strongest retail growth in recent years for growing up milk (France) was in 2010, with a rate of 12.3%. - Compound annual growth in retail of growing up milk (France) for the period was 6.7%. *The 2013 values are a forecast from a range of inputs plus trade interviews Figure 24: Volume - Absolute size Figure 25: Volume - Volume Consumption per capita (population) Table 15: Volume - France Units Absolute size (000) Tonnes Volume Consumption per capita (population) Kg Growth % Sources: Economist Intelligence Unit - Trade Interviews, GMN Estimations 24

25 Market Shares Others (1,6) Own label (13,5) HiPP GmbH & Co. Vertrieb KG. (2,1) Groupe Danone (33,2) Nestlé S.A. (10,1) Groupe Lactalis (17,7) Sodiaal (21,8) Figure 26: France - Growing up milk: Company retail market share by volume (%) Table 16: France - Growing up milk: Company retail market share by volume (%) Segment 2012 Groupe Danone S.A Sodiaal 21.8 Groupe Lactalis 17.7 Nestlé S.A HiPP GmbH & Co. Vertrieb KG. 2.1 Own label 13.5 Others

26 Market share estimation growing up milks Belgium Retail market volume Data collection with respect to the availability and - The retail market for growing up milk (Belgium) increased in volume by 2% in Market volume in 2012 was m tonnes. - The strongest retail growth in recent years for growing up milk (Belgium) was in , with a rate of 5.5%. - Compound annual growth in retail of growing up milk (Belgium) for the period was 2.8%. *The 2013 values are a forecast from a range of inputs plus trade interviews Figure 27: Volume - Absolute size Figure 28: Volume - Volume Consumption per capita (population) Table 17: Volume - Belgium Units Absolute size (000) Tonnes Volume Consumption per capita (population) Kg Sources: Economist Intelligence Unit - Trade Interviews, GMN Estimations 26

27 Market Shares Figure 29: Belgium - Growing up milk: Company retail market share by volume (%) 2012 Table 18: Belgium - Growing up milk: Company retail market share by volume (%) 2012 Market Player 2012 Groupe Danone S.A Nestlé S.A Others 14.9 Sources: Trade Interviews, GMN Estimations 27

28 Market share estimation growing up milks Austria Retail market volume - The retail market for growing up milk (Austria) increased in volume by 1.1% in Market volume in 2012 was m tonnes. - The strongest retail growth in recent years for growing up milk (Austria) was in 2008, with a rate of 13%. - Compound annual growth in retail of growing up milk (Austria) for the period was 1.4%. *The 2013 values are a forecast from a range of inputs plus trade interviews Figure 30: Volume - Absolute size Figure 31: Volume - Volume Consumption per capita (population) Table 19: Volume - Austria Units Absolute size (000) Tonnes Volume Consumption per capita (population) Kg Sources: Economist Intelligence Unit - Trade Interviews, GMN Estimations 28

29 Market Shares Figure 32: Austria - Growing up milk: Company retail market share by volume (%) 2012 Table 20: Austria - Growing up milk : Company retail market share by volume (%) Market Player 2012 Groupe Danone S.A HiPP GmbH & Co. Vertrieb KG 21.4 Nestlé S.A Sources: Trade Interviews, GMN Estimations Notes: Groupe Danone S.A. market share refer to the brands Aptamil (around 45% in value) and Milupa (around 20% in value). 29

30 Market share estimation growing up milks Switzerland Retail market volume - The retail market for growing up milk (Switzerland) decreased in volume by 0.6% in Market volume in 2012 was 0 m tonnes. - The strongest retail growth in recent years for growing up milk (Switzerland) was in 2010, with a rate of 7.8%. - Compound annual growth in retail of growing up milk (Switzerland) for the period was 0.7%. *The 2013 values are a forecast from a range of inputs plus trade interviews Figure 33: Volume - Absolute size Figure 34: Volume - Volume Consumption per capita (population) Table 21: Volume - Switzerland Units Absolute size (000) Tonnes Volume Consumption per capita (population) Kg Sources: Economist Intelligence Unit - Trade Interviews, GMN Estimations 30

31 Market Shares Figure 35: Switzerland - Growing up milk: Company retail market share by volume (%) Table 22: Switzerland - Growing up milk: Company retail market share by volume (%) Market Player 2012 Groupe Danone S.A Nestlé S.A Hipp GmbH & Co. Vertrieb KG 16.6 Bimbosan Ltd. 6.8 Hero Group GmbH 2.4 Others 11.9 Sources: Trade Interviews, GMN Estimations Market share estimation growing up milks Finland The Growing Up milk market is negligible according to the Dairy Nutrition Council and the main players in the Baby Food market. In the Finnish Nutritional Recommendations approved by the Nordic Council of Ministers it is recommended to feed children above 12 months with the same food as the rest of the family. Finland is the country with the highest per capita consumption of drinking milk in the world: the majority of Finns drink milk on a daily basis, which is relatively rare internationally; it is a fully recognised high quality local product which people trust. From a market environment perspective, it s quite interesting that the Trade and Industry Ministry's regulation 1216/2007 regulates the infant formulas and follow-on milk information policies and marketing: for example it is mandatory to show a message in the section of the company website dedicated to the infant formulas stating that breast milk is the best way to feed toddlers. The factors mentioned explain why the market is so small, and the companies haven t invested in this segment so far as a consequence of the cultural and legal obstacles. 31

32 m EUR Market share estimation growing up milks Sweden Data collection with respect to the availability and In Sweden we have a similar situation as in Finland, with Growing Up Milk representing a negligible part of the Baby Milk category that is quite small in itself. According to the OECD, Sweden, along with Norway and Denmark, has the highest breastfeeding rates in the world. Differently from the other Western countries, breastfeeding in public is fully accepted as part of a social attitude toward maternity that tries to make mothers feel more comfortable with feeding their child naturally, and not have the need to return home each time a child needs to be fed, or the hassle of finding a dedicated feeding area each time. For these reasons, the consumption of Infant Formula is very low if compared to the rest of Europe. When it comes to growing up milk, we can surely talk about a totally new category, as after breastfeeding the children are fed with normal food integrated by gruel and porridge as good iron sources, along with regular cow s milk that is given to the children as young as 10 months. The two companies operating in the segment are Semper and Nestlé: Semper launched its Growing Up Milk on May 2013, Nestle launched its Junior brand growing up milk during the first quarter of 2013 and has recently changed the target from over 12 months to over 10 months, a change of selling proposition which suggests the product hasn t had the success expected Combined Retail market value In the next figure, we can see the retail market value in the twelve European countries under study for growing-up milks or similar products for children aged 1-3 years in the last few years Austria Belgium Finland France Germany Italy Netherlands Portugal Spain Sweden Switzerland UK Figure 36: Growing up milk: Retail market value (m EUR) 32

33 m EUR Data collection with respect to the availability and Also the weighted average of the retail market value for the growing-up milks or similar products for children aged 1-3 years in the last few years has been evaluated (figure 37). In 2012, the weighted average of the retail market value for this market was 78,76m EUR, and for 2013 it is expected to reach 76m EUR Figure 37: Growing up milk: weighted average of the retail market value (m EUR) in twelve European countries On the other hand, figure 38 illustrates the retail market unit prices in Euros in the twelve European countries under study for growing-up milks or similar products for children aged 1-3 years in the last few years. 33

34 EUR per kg EUR per kg Data collection with respect to the availability and Austria Belgium Finland France Germany Italy Netherlands Portugal Spain Sweden Switzerland UK Figure 38: Growing up milk: Retail unit prices in EUR The weighted average of the retail market unit prices for growing-up milks or similar products for children aged 1-3 years, in the twelve European countries under study, has been evaluated (figure 38). In 2012, this value was 12,6 Euros per kg, and for 2013 it is expected to be 11,7 Euros per kg Figure 39: Growing up milk: Weighted average of the retail unit prices in EUR in twelve European countries 34

35 ABBREVIATIONS AINIA Asociación de Investigación de la Industria Agroalimentaria FPD GMN GNPD MSS TCN Food Product Database Global Market Navigator Global New Product Development Market Survey System Technical Contact Networking 35