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Jamie Dunning Impulse Sales Director Cadbury UK

Jamie Dunning Impulse Sales Director Cadbury UK. A Sustainable Future. SOCIAL. Equitable. Bearable. Sustainable. ENVIRONMENT. ECONOMIC. Viable. … a business that “meets the needs of the present world without compromising the ability of the future generations to meet their own needs.”.

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Jamie Dunning Impulse Sales Director Cadbury UK

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  1. Jamie DunningImpulse Sales Director Cadbury UK

  2. A Sustainable Future SOCIAL Equitable Bearable Sustainable ENVIRONMENT ECONOMIC Viable … a business that “meets the needs of the present world without compromising the ability of the future generations to meet their own needs.” Sources: Brundtland Commission of the United Nations Johan Dreo

  3. A Sustainable Future in the Catering Industry? SOCIAL Equitable Bearable Sustainable ENVIRONMENT ECONOMIC Viable … a business that “meets the needs of the present world without compromising the ability of the future generations to meet their own needs.” Catering consumers’ needs are not being fully satisfied…today Sources: Brundtland Commission of the United Nations Johan Dreo

  4. Wholesalers have a big influenceon the Caterers offer • Caterers, not Retailers • Operational mindset • Obsessed with % margin Sources:Brundtland Commission of the United Nations Johan Dreo

  5. Traditionally competition very much rootedin price and service Important Factors to Caterers when choosing C&Cs HIM! data that shows primary consideration is about VFM and price Source: Him 2010 Caterer Average – Cash& Carry

  6. Competition focused on core staples

  7. The Consumer is now getting a much better offer • Better Range • Retail Execution • Category Management • Consumer-focused Marketing

  8. Consequently caterers are now lookingfor more support Source: Him 2010 Caterer Average – Cash& Carry

  9. On-the-go food/snacking consumption - more prevalent in consumers’ lives. -1 +5 Value Growth of Confectionery in FS vs. Food Service in 2009 Food Service Confectionery On Average People Consume 3 Snacks Across the Day £5.5bn £5bn SNACKING MARKET 10% growth in two years Source: Cadbury Research 4,500 respondents 15+ yrs Maude Roxby Associated 2009 report

  10. Many consumers are a captive audience 80% of workers eat lunch at desk or canteen 61 million people pass through Euston Station Annually Source: Cadbury & Simpson Carpenter Workplace Research 2010Network Rail Predictions for 2010

  11. We know where confectionery is stockedit is impulsive 13% of shoppers in c-storesbuy something on impulse 3 ½ times more likely to be confectionery than any other category 15% Intend to buy 19% actually buy Source : him! Convenience Tracking Programme 2010

  12. Low Category penetration of Caterers 18% of ALL caterers bought confectionery Source : him! cash and carry caterer 2010

  13. Long-standing Reasons Detracts from other purchases Too expensive Doesn’t fit into my business Barriers to StockingConfectionery I make more out of my muffins Lower % Margin Unprofitable

  14. Change of mindset Brands create more incremental transactions More incremental transactions = More incremental cash in cre·men tal(Latin: incr mentum : to increase) Def: Something added or gained

  15. A reluctance to fully embrace the opportunity especially of branded sweet snacking Source: Cadbury research 500 Retailers & Caterers 2010

  16. Case Study 1: Lack of Category focus Q1 Q2 Q3 Q4 Q5 Q6 Key Contributing Factors: • Omitting Brands • GP Driven • No influence at site • Ignore the Shopper • Short term decision making • Lack of category knowledge Category Performance Base Category Sales Growth Time Source: Customer Category Data 2008-2010

  17. Case Study 2: Retail behaviours & category focus Q1 Q2 Q3 Q4 Key Contributing Factors: • Power Brands • Display • Innovation • Range • Compliance Category Performance Base Category Sales Growth Time Source: Customer Category Data 2008-2010

  18. Brands need not be cannibalistic Confectionerydrives incremental purchase McD - Power of Brands Greggs & Cadbury Co-Branding Av. Number of items increases when chocolate is purchased; +23% McFlurry £60million brand Branded endorsement can create consumer permissibility for so many moresweet snacking transactions which will drive incremental cash. Source: Cadbury & Simpson Carpenter Workplace Research 2010

  19. What is Cadbury doing about the opportunity? • Category Management • Consumer Understanding in the Catering Environment • Innovation with the Caterer in Mind - Brands - Format - Price Points • In the future?

  20. A Sustainable Future • Think Consumer • Think Retail • Winners in core staple categories alone is not sustainable • Expandable, incremental consumption is untapped “Courage is letting go of the familiar” (Raymond Lindquist)

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