CUCUMBER REGULAR ANALYSISYEAR TO 21/02/2015

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1. Market Overview

2. Demographics

3. Retail Health Situation by State

Agenda

This analysis is part of a vegetable consumer purchase data project funded by HIA using the vegetable levy and matched funds from the Australian Government. This report captures only Fresh Vegetables and excludes processed vegetables (e.g. Fresh Sweet Corn excluding Canned Sweet Corn; Fresh Beans excluding Canned Beans).

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HIGHLIGHTS

RECOMMENDATIONSAim to regain lost demographic buyers especially Senior Couples, Small Scale Families, and Bustling Families who have high propensity to consume. Raise the relevance of Cucumbers for healthy snacking, salads, and other fresh applications, especially in Spring/ Summer season.

Supermarkets are outperforming Non-supermarkets in value growth. Green Grocers need to adopt winning strategies employed by the majors such as pre-pack, pre-wash, or highlighting the quality of crop.

Investigate crop supply or quality in SA+NT and VIC, the only 2 states suffering from reduced Cucumber buyers.

Cucumber represents 5.3% of volume and 4.2% of value market share. Its buyer base has shrunk this year, however, there was a rise in average $ spend on Cucumber compared to last year.

Families contribute to 39% of Cucumber volume sales while representing 32% of buyer base. Bustling and Small Scale Families witnessed buyer leakage this year.

Larger households (3+ members) are the key buyers for Cucumber and account for more than half of its volume sales. Households with 3-4 members have added households to their buyer base this year.

All retailers except IGA contributed to the value sales growth of Cucumber this year. Aldi’s momentum is strongest while Woolworths and Coles which account for almost half of Cucumbers’ total volume sales declined.

Almost 64% of Woolworths shoppers who buy Cucumber, prefer to purchase it at Woolworths stores, whereas this conversion rate is 62% for Coles.

Consumption of Cucumber declined across Australia. VIC and SA+NT were the only states to have lost Cucumber buying households from the buyer base this year.

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Market OverviewCucumber

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Share of Market VolumeTotal VegetablesAustralia

Share of Market ValueTotal VegetablesAustralia

Cucumber increased its market share to represent 4.2% of total value sales of Vegetables while volume market share declined to 5.3% this year.

Source: Nielsen Homescan

Last year This year

17.0% 16.9%

11.4% 11.5%

4.7% 4.5%

14.2% 14.0%

4.2% 4.1%3.0% 3.0%2.4% 2.7%

7.8% 7.6%

7.5% 7.5%

3.9% 4.2%

Last year This year

23.9% 24.1%

22.8% 22.4%

10.8% 11.1%

11.0% 10.6%

10.1% 10.1%

5.6% 5.9%4.9% 5.1%3.1% 3.2%2.2% 2.3%

5.6% 5.3%

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T. Vegetables Cucumbers Tomatoes Carrots Zucchini Sweet Corn Asian Veg-etables

Fresh Salad

365.3

17.654.2

18.3 12.3 13.5 10.835.1

380.5

19.855.9

18.0 13.8 14.0 11.436.1

T. Vegetables Cucumbers Tomatoes Carrots Zucchini Sweet Corn Asian Veg-etables

Fresh Salad

88.9

6.2 10.2 10.13.4 3.2 1.6 2.5

87.4

5.7 9.6 10.23.2 3.3 1.7 2.5

T. Vegetables Cucumbers Tomatoes Carrots Zucchini Sweet Corn Asian Veg-etables

Fresh Salad

99.7

80.995.4 94.5

64.654.6

32.9

77.7

99.6

80.595.3 94.5

63.354.4

32.6

78.4

How many Households buy

annually?

How much (Kg) do they buy per year?

How much ($) do they spend per year?

This YearLast year

Source: Nielsen Homescan

Cucumber lost 36,770 buying households this year and their consumption has also dipped. However, their average spend has increased significantly compared to last year.

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How much ($) do they spend per occasion?

How much (Kg) do they buy per occasion?

How often do they buy annually?

Source: Nielsen Homescan

T. Vegetables Cucumbers Tomatoes Carrots Zucchini Sweet Corn Asian Veg-etables

Fresh Salad

50.4

10.116.8

11.46.8 5.2 4.4

8.0

50.7

9.816.4

11.26.6 5.2 4.5

8.2

T. Vegetables Cucumbers Tomatoes Carrots Zucchini Sweet Corn Asian Veg-etables

Fresh Salad

1.77

0.61 0.610.89

0.490.62

0.36 0.31

1.73

0.58 0.59

0.91

0.490.64

0.37 0.31

T. Vegetables Cucumbers Tomatoes Carrots Zucchini Sweet Corn Asian Veg-etables

Fresh Salad

7.25

1.75

3.23

1.61 1.802.58 2.46

4.42

7.51

2.01

3.41

1.602.09

2.67 2.53

4.43

Spend per trip on Cucumber has risen compared to last year. However, volume per trip is slightly down by 0.03Kg, indicating a possible shift to smaller Cucumber varieties.

This YearLast year

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9Source: Nielsen Homescan`

4 W

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3/03

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3

4 W

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0/04

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4 W

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8/05

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3

4 W

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5/06

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3

4 W

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3/07

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3

4 W

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0/08

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4 W

/E 0

7/09

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3

4 W

/E 0

5/10

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3

4 W

/E 0

2/11

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3

4 W

/E 3

0/11

/201

3

4 W

/E 2

8/12

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3

4 W

/E 2

5/01

/201

4

4 W

/E 2

2/02

/201

4

4 W

/E 2

2/03

/201

4

4 W

/E 1

9/04

/201

4

4 W

/E 1

7/05

/201

4

4 W

/E 1

4/06

/201

4

4 W

/E 1

2/07

/201

4

4 W

/E 0

9/08

/201

4

4 W

/E 0

6/09

/201

4

4 W

/E 0

4/10

/201

4

4 W

/E 0

1/11

/201

4

4 W

/E 2

9/11

/201

4

4 W

/E 2

7/12

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4

4 W

/E 2

4/01

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5

4 W

/E 2

1/02

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5

40.537.2

33.027.8

25.2 26.8

33.5

39.2

45.7 44.4 44.947.3

44.239.4 39.1

32.2 30.1

24.227.0 27.2

32.0

45.8 47.144.1 44.9 44.4

1.01.0 1.0 1.0

0.91.0 1.0 1.0

1.11.1

1.0 1.01.0

0.90.9 0.9 0.9 0.9 0.9 0.9 0.9

1.1 1.1

1.0 1.0 1.0

Penetration of households Average volume per household every 4 weeks

February data shows slightly more Cucumber buying households than the same period in 2014. Average Kg consumption has remained the same.

Kg

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10Source: Nielsen Homescan

4 W

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3/03

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3

4 W

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0/04

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3

4 W

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8/05

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3

4 W

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5/06

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3

4 W

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3/07

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3

4 W

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0/08

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3

4 W

/E 0

7/09

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3

4 W

/E 0

5/10

/201

3

4 W

/E 0

2/11

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3

4 W

/E 3

0/11

/201

3

4 W

/E 2

8/12

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3

4 W

/E 2

5/01

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4

4 W

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2/02

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4 W

/E 2

2/03

/201

4

4 W

/E 1

9/04

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4

4 W

/E 1

7/05

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4

4 W

/E 1

4/06

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4

4 W

/E 1

2/07

/201

4

4 W

/E 0

9/08

/201

4

4 W

/E 0

6/09

/201

4

4 W

/E 0

4/10

/201

4

4 W

/E 0

1/11

/201

4

4 W

/E 2

9/11

/201

4

4 W

/E 2

7/12

/201

4

4 W

/E 2

4/01

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5

4 W

/E 2

1/02

/201

5

40.537.2

33.027.8

25.2 26.8

33.5

39.2

45.7 44.4 44.947.3

44.239.4 39.1

32.2 30.1

24.227.0 27.2

32.0

45.8 47.144.1 44.9 44.4

2.8 2.82.5 2.5 2.5

3.1 3.2 3.0 2.9 2.8 2.9 3.03.3 3.4

2.9 2.9 3.03.5

3.7

4.55.0

3.6

2.9 2.9 2.93.2

Penetration of households Average $ spend per household every 4 weeks

Average monthly spend has dropped slightly as well compared to last year.

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11Source: Nielsen Homescan* https://www.sydneyfresh.com.au/4_fresh-fruit-and-veg-market-update.htm

4 W

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3

4 W

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0/04

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3

4 W

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8/05

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4 W

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4 W

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3/07

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4 W

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0/08

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4 W

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7/09

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4 W

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5/10

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3

4 W

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2/11

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4 W

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0/11

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4 W

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8/12

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4 W

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5/01

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2/03

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4 W

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9/04

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7/05

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4/06

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2/07

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4 W

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9/08

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4 W

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6/09

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4 W

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4/10

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4 W

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9/11

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5

2.8 2.8 2.5 2.5 2.53.1 3.2 3.0 2.9 2.8 2.9 3.0

3.3 3.42.9 2.9 3.0

3.5 3.7

4.55.0

3.62.9 2.9 2.9 3.2

1.68 1.741.59 1.63 1.63

1.94 1.951.84

1.69 1.671.78 1.72

1.942.06

1.79 1.82 1.88

2.202.30

2.88

3.11

2.09

1.681.79 1.72

1.87

1.71.6

1.6 1.61.5

1.6

1.6 1.6 1.7 1.7 1.61.7 1.7

1.71.6

1.61.6 1.6 1.6

1.6 1.61.7 1.7

1.6 1.7 1.7

Average $ spend per household every 4 weeks $ spend per purchase occasion Average purchase occasions every 4 weeks

The spend per household in the latest 4 weeks is less than the same time last year with the purchase frequency remaining the same. Good supply of Lebanese cucumbers may be driving down the prices*.

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DemographicsCucumber

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14Source: Nielsen Homescan

Distribution of BuyersAustralia

Distribution of VolumeAustralia

Last Year This Year

6% 7%

11% 10%

15% 15%

9% 8%

18% 18%

23% 23%

18% 19%

Last Year This Year

7% 7%

15% 15%

17% 17%

7% 7%

12% 13%

23% 22%

19% 19%

Families are the key buyers for Cucumber as they account for 39% of the volume sales while representing 32% of the buyers.

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How many Households buy

annually?

Note: The difference in the bar heights for same data labels is due to the difference in decimal points. The data has been rounded up to one decimal point. Source: Nielsen Homescan

How often do they buy annually?

How much (Kg) do they buy per occasion?

ALL SHOPPERS START UP FAM-ILIES

SMALL SCALE FAMILIES

BUSTLING FAMILIES

YOUNG TRANSITION-

ALS

INDEPENDENT SINGLES

ESTABLISHED COUPLES

SENIOR COUPLES

80.9 84.2 88.2 86.878.5

67.582.9 86.380.5 85.0 86.0 86.1

78.767.7

82.9 84.2

ALL SHOPPERS START UP FAM-ILIES

SMALL SCALE FAMILIES

BUSTLING FAMILIES

YOUNG TRANSITION-

ALS

INDEPENDENT SINGLES

ESTABLISHED COUPLES

SENIOR COUPLES

10.1 10.612.1 11.0

8.1 8.210.0 11.09.8 10.2

11.8 10.98.1 8.2

9.5 10.6

ALL SHOPPERS START UP FAM-ILIES

SMALL SCALE FAMILIES

BUSTLING FAMILIES

YOUNG TRANSITION-

ALS

INDEPENDENT SINGLES

ESTABLISHED COUPLES

SENIOR COUPLES

0.61 0.640.72

0.64 0.590.52

0.61 0.580.58 0.580.70

0.61 0.590.51 0.56 0.55

Rise in household reach in Start Up Families could not offset the buyer leakage amongst Bustling & Small Scale Families. All Families’ households reduced their consumption as well as shopping trips this year.

This YearLast year

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16Source: Nielsen Homescan

Distribution of BuyersAustralia

Distribution of VolumeAustralia

Last Year This Year

55% 56%

17% 17%

17% 17%

11% 10%

Last Year This Year

45% 46%

18% 18%

21% 21%

15% 14%

Larger households (3+ members) are the key buyers for Cucumber and account for 54% of the volume sales while comprising of 44% of buyer base.

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How many Households buy

annually?

How often do they buy annually?

How much (Kg) do they buy per occasion?

ALL SHOPPERS HH SIZE 1-2 MEMBERS HH SIZE 3 MEMBERS HH SIZE 4 MEMBERS HH SIZE 5+ MEMBERS

80.9 76.385.0 88.6 89.6

80.5 76.085.3 88.8 85.8

ALL SHOPPERS HH SIZE 1-2 MEMBERS HH SIZE 3 MEMBERS HH SIZE 4 MEMBERS HH SIZE 5+ MEMBERS

10.19.1

10.611.5 11.8

9.89.0

10.311.3 11.4

ALL SHOPPERS HH SIZE 1-2 MEMBERS HH SIZE 3 MEMBERS HH SIZE 4 MEMBERS HH SIZE 5+ MEMBERS

0.610.55

0.63 0.650.74

0.58 0.530.60 0.63

0.69

Households with 3-4 members added Cucumber buying households this year. Drop in consumption and buying frequency was consistent across all household sizes.

This YearLast year

Note: The difference in the bar heights for same data labels is due to the difference in decimal points. The data has been rounded up to one decimal point. Source: Nielsen Homescan

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Retail HealthSituation by StateCucumber

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Share by RetailersThis YearCucumber

Sales vs. Last YearThis year vs. Last yearCucumber

Other Supermarkets

Non Supermarkets

Volu

me

Valu

e

Coles and Woolworths posted significant growth in terms of value sales but declined in volume, driving the corresponding performance for the total Cucumber sales. ALDI showed growth in both volume & value sales.

Source: Nielsen Homescan

32%

5%

12%7%

25%

20%

0%

7%

13%

-12%-12%

-17%

-7%

8%

23%

33%

-3%

11%15%13%

20%

4%

13%

6%32%

24%

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Source: Nielsen Homescan Total Market: AUS Shared to: T. Fresh Frt Veg Dried Frt Nut Condition: Defined Market: AUS Defined Product: T. Fresh Frt Veg Dried Frt Nut Defined Fact: Purchase Value Defined Period: MAT TO 21/02/2015

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Homescan isights v3.0 .Dictionary v1.5

Source: Nielsen Homescan

Almost 64% of Woolworths shoppers are purchasing Cucumber on their trips to Woolworths. This conversion rate fares well with other comparable vegetables except Tomatoes, Carrots and Fresh Salad.

Account Shopper ConversionYear to 21/02/2015| Woolworths (WW)

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Source: Nielsen Homescan Total Market: AUS Shared to: T. Fresh Frt Veg Dried Frt Nut Condition: Defined Market: AUS Defined Product: T. Fresh Frt Veg Dried Frt Nut Defined Fact: Purchase Value Defined Period: MAT TO 21/02/2015

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Homescan isights v3.0 .Dictionary v1.5

Source: Nielsen Homescan

Coles conversion rate is similar to Woolworths’ with 62% of Coles buyers preferring to buy Cucumbers in this retailer.

Account Shopper ConversionYear to 21/02/2015 | Coles

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79.1 76.7

5.55.0

SA + NT (11%)

VIC (23%)

NSW (34%)

QLD (18%)

WA (11%)

Average KG per Buyer

Penetration this year vs. last year

( ) State share of Cucumber $ sales consumption

Is there a particular State driving the category performance?

Source: Nielsen Homescan

81.6 83.3

6.1

4.9

88.1 87.1

6.35.8

78.9 79.6

5.24.9

81.8 82.5

7.67.2

Consumption decreased across all states with WA witnessing the sharpest decline.

VIC and SA+NT together account for one-third of total spend on Cucumber and witnessed buyer leakage of 54,824 households.

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