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Project Popeye 2.0 1 Project Popeye Extra Virgin Olive Oil U & A Wave 2 Quantitative Report Rigas Harbilas August 2017
Project Popeye 2.0 1
Project Popeye Extra Virgin
Olive Oil U & A Wave 2
Quantitative Report Rigas Harbilas
August 2017
Project Popeye 2.0 2
Sample profile..
FEMALE
MALE
51% 50% 49% 50%
In 2016 and 2017 we interviewed N=518 Extra Virgin Olive Oil P12M buyers using an online panel and a 10 min questionnaire
Household… 2016 2017 Single 18% 16% No kids 17% 16% Younger family
26% 27%
Older family 24% 25% Empty Nest 14% 15%
Age… 2016 2017 25-35 27% 27% 36-45 29% 26% 46-55 24% 24% 55+ 21% 24%
PURCHASE… 2016 2017 Heavy (every 2 weeks) 23% 25% Medium (monthly) 23% 27% Light (5-6 times a year) 24% 18% Occasional (1-3 times a year)
29% 29%
2016 2017
Project Popeye 2.0 3
Correlation between childhood experience & adult usage
Base: Total sample 2016 n=518, 2017 n=518 Q2.2 To what extent did your family use olive oil growing up
It appears that 45% of the sample did not grow up with much olive oil usage 36% stated it was the primary oil used in the household As with most food related matters, the imprint growing up matters
• 45% heavy buyers report frequent consumption growing up
• compared to 24% of light buyers
• 26% of light buyers don’t remember Olive oil being used much at all when growing up
12%
21%
12%
10%
10%
14%
21%
14%
22%
11%
10%
9%
16%
19%
The only type of oil we used
The main type of oil we used
Used frequently but not the main type
Used occasionally but quite regularly
Used every now & again / not much
Used very rarely
Don't remember it being used at all
2016
2017
The more we can get olive oil into households today, the more can be sold in the future
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33%
48%
11%
26%
51%
68%
35%
42%
36%
52%
21%
30%
38%
74%
21%
40%
Total
25-35 yrs
55+ yrs
Anglo
North Europe
South Europe
East Europe
Chinese
% of people who grew up solely or mainly with olive oil
2016
2017
Age and cultural background are important factors
Base: 2016 Total n=518; Age 25-35 n=139, 55+ n=109; Background Anglo n=333, Nth Europe n=40, Sth Europe n= 38, East Europe n=32, Chinese n=24 2017 Total n=518; Age 25-35 n=138, 55+ n=122; Background Anglo n=315, Nth Europe n=53, Sth Europe n= 50, East Europe n=24, Chinese n=30
The older the consumer, the less likely they were to have grown up with Olive Oil • However cultural background has a large effect
The largest cultural Australian group (Anglo) are the least likely to have grown up with it. Consequently they are also more likely to be lighter buyers of EVOO INFLUENCING COOKING CULTURE IS AN IMPORTANT ELEMENT OF INCREASING EVOO USAGE Younger OO consumers are slighter heavier buyers than older counterparts Those buying at least once a month • 59% of 25-35’s – UP from 54% in 2016 • 49% of 55+ - UP from 39%
Project Popeye 2.0 5
Not too many are sure they know the difference
11%
13%
9%
10%
16%
18%
14%
17%
10%
8%
10%
11%
9%
8%
2%
3%
46%
45%
32%
29%
34%
31%
32%
34%
31%
32%
25%
18%
25%
20%
12%
17%
37%
36%
48%
48%
40%
37%
42%
36%
47%
42%
49%
52%
49%
53%
56%
54%
6%
6%
11%
13%
10%
13%
13%
13%
12%
17%
16%
19%
17%
19%
29%
25%
All Extra Virgin Olive Oils are almost the same
I know the difference in health benefits between Olive Oil and Extra Virgin Olive Oil
I am aware that in Aust. there is a voluntary code & certification for meeting standards of Extra Virgin
OO
I know what to look for on a bottle of Extra Virgin Olive oil to ensure that it meets the Aust. standards
I can tell the difference between a better quality and lesser quality of Extra Virgin Olive Oil
I understand what the term 'Extra Virgin' means when referring to olive oil
I understand the difference between olive oil and extra virgin olive oil
It is healthier to cook with extra virgin olive oil
Strongly disagree Disagree somewhat Agree Somewhat Strongly agree
Base: Total sample 2016 n=518, 2017 n=518 Q4.2 – to what extent do you agree and disagree with the statements
• No major movements in terms of understanding EVOO from consumers
• If anything this sample shows slightly less understanding about what constitutes EVOO
• However they also feel it is healthier to cook with EVOO than the previous wave
2016
2017
2016
2017
2016
2017
2016
2017
2016
2017
2016
2017
2016
2017
2016
2017
Project Popeye 2.0 6
No increase in knowledge about EVOO
17%
15%
15%
19%
20%
19%
18%
14%
25%
21%
Total
25-25
36-45
46-55
56+
2016
2017
Base: Total sample 2016 n=518, 2017 n=518; Heavy Buyers 2016 n=121, 2017 n=130 (age group base sizes vary)
Those who strongly agree with these statements
10%
13%
29%
13%
13%
25%
I am aware that in Australia there is a voluntary code and certification for meeting the
standards of Extra Virgin Olive oil
I know what to look for on a bottle of Extra Virgin Olive oil to ensure that it meets the Australian standards
It is healthier to cook with extra virgin olive oil I understand the difference
between OO and EVOO…
18%
20%
42%
24%
25%
37%
2016
2017
Total Sample.. Heavy Buyers..
Health perceptions have increased somewhat
Awareness of certification is down slightly if any movement at all
Possibly • slight decrease in knowledge about EVOO
certification • Slight increase in health perceptions
Project Popeye 2.0 7
Purchase drivers are healthier & more natural
From what we can see the drivers of EVOO purchase ate that it is healthier, more natural and less processed Only 16% can identify it as first • only 5% of younger buyers identity it spontaneously
as first press Younger buyers are more likely to associate EVOO with flavour rather than • 12% says it is a stronger richer flavour
Almost as many people are unsure of what constitutes EVOO as they are about it being the first press of the olives
Base: Total sample 2016 n=518; 2017 n=518 Q4.1 – in your own words describe what you feel Extra Virgin Olive Oil is
20%
10%
9%
11%
8%
8%
7%
7%
5%
3%
7%
5%
4%
16%
13%
12%
9%
9%
8%
6%
6%
6%
4%
4%
3%
3%
0% 5% 10% 15% 20% 25%
First press of the olives
More pure/natural
Do not know/unsure
Healthier /better for you/ extra nutrients
Less processed
Stronger/ richer/ better flavour
Better quality
Cold pressed/not heat processed
More refined/filtered
Fewer additives
Uses younger/less ripe olives
It's about the way it has been made (NI)
Light/Lighter in taste
2016
2017
What is EVOO?
Project Popeye 2.0 8
Opportunity for more cooking using EVOO
Deep frying
Other frying (stir
frying)
Oven baked meals
Stove top cooking
Cold on salads or
veges etc.
Salad dressing
Baking cakes
Canola Oil 27% 20% 13% 12% 3% 4% 13%
Vegetable Oil 32% 20% 14% 12% 3% 5% 22%
Olive Oil 8% 28% 34% 30% 24% 25% 18%
Extra Virgin Olive Oil 11% 40% 46% 56% 59% 62% 25%
Sunflower Oil 10% 11% 6% 6% 6% 3% 9%
Coconut Oil 3% 9% 8% 5% 5% 6% 12%
Rice Bran Oil 8% 8% 4% 4% 2% 3% 7%
N/A 27% 20% 13% 12% 3% 4% 13%
Deep frying is a weaker area of use for Olive Oil However EVOO is used extensively for almost all other uses 36+ yr old demographic seem slightly more likely to use EVOO for more purposes mainly because they cook more frequently Only just over half the sample use EVOO for cooking
Base: Total sample n=518 Q2.3 – which of the types of oil do you commonly use for each purpose
Project Popeye 2.0 9
Price & usage relevance are barriers for EVOO
27%
27%
13%
16%
6%
31%
23%
13%
12%
10%
It's too expensive to use for cooking
I prefer other oils to cook with
Just never occurred to me
I didn't know you could use it for cooking
Don't like the taste of it when using it for cooking
2016
2017
Opportunity for a cheaper olive oil ‘cooking blend’ • Olive Oil Blend specifically designed
for cooking and deep frying – healthier way to cook perhaps?
Lack of awareness • There are still 1/3rd of the olive oil
buyers who didn’t know or think to cook with EVOO.
• So even amongst the current users – they can be prompted to use more olive oil
Base: Non-user of EVOO for cooking 2016 n=77; 2017 n=78 Q2.4 – reasons for not cooking with EVOO
Small differences since 2016 • Price continues to be a barrier …too expensive for
cooking • Still not seen as ‘relevant’ amongst 25% of those NOT
using it for cooking
Project Popeye 2.0 10
Aussie wins the day – similar to the Aussie wine story
11% 11% 22% 23%
4% 4% 8% 8%
23% 25%
35% 35%
14% 14%
23% 19%
34% 31%
32% 32%
36% 34%
40% 36%
31% 30%
10% 9%
43% 46%
28% 35%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2016 2017 2016 2017 2016 2017 2016 2017
Rarely/Never
Sometimes
Most of the time
All The time
Indicates that local Provenance is the most important driver for the local olive oil buying population Given that Olive Oil is European and not traditionally an Australian product, the embracing of local produce as better quality, healthier and better tasting is significant Of course it is all perception based on the idea that Australian EVOO is better
% ranked first
Best Quality
Healthiest
Best Tasting
Versatile
Australian EVOO 56% 48% 51% 36%
European EVOO 23% 19% 22% 12%
Base: Total sample 2016 n=518; 2017 n=518 Q3.1 – relative frequency of purchase & Q5.1 – rank each oil according to….
Australian OO
Australian EVOO
European OO
European EVOO
Project Popeye 2.0 11
Heavier & Medium buyers simply buy more……
37%
58%
17%
27%
42%
73%
25%
35%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Australian Olive Oil
Australian EVOO European Olive Oil
European EVOO
Total Sample Heavier buyers
HOW BRANDS GROW MAXIM (Byron Sharpe)
• Heavy buyers of a category will exist across all brands in proportion to the market share of that brand
• Hence one brand will have proportionately as many heavy buyers as another brand
• One product or brand doesn’t typically have any more proportion of heavy buyers than another
• (with the possible exception of ‘addictive’ products – my qualification)
Base: Heavy and medium buyers sample n=258 Q3.1 – relative frequency of purchase
THATMAXIMapplieshere…HeavierbuyersaremorelikelytobuyALLtypesofOliveOil,notlimitedtoEuropeanorAustralian
Project Popeye 2.0 12
Heavier & Medium buyers of EVOO probably just cook more
54%
45%
61%
27%
63%
55%
63%
38%
0%
10%
20%
30%
40%
50%
60%
70%
Use Vege oil Use Canola Oil Use Olive Oil Use Sunflower oil
Total Sample Heavier buyers Occasional buyers
HEAVY BUYERS OF EVOO ARE ALSO HEAVIER USES OF OTHER OILS AS WELL! • Occasional EVOO buyers don’t use more
Vegetable Oil or other oil…..They just use less oil…
SoinordertoincreaseAWOPamongstlighterEVOOusers,theyactuallyhavetousemoreoilintheirlivesandtheywilluseEVOOroughlyinproporGontothatproduct’scurrentmarketshareinthecategoryThekeyistoestablishEVOOaspartofthecookingculturesothatpenetraGonincreasesoverthelongerterm
Project Popeye 2.0 13
What constitutes good quality OO?
8%
16%
30%
33%
25%
37%
7%
16%
27%
28%
28%
38%
0% 10% 20% 30% 40%
You can only get in from a
deli
It's European
It's more expensive
It's Australian
It's a well known brand
It has a certification of
some kind
2016
2017
Brand seems to have waned slightly in importance in favour of local Aussie Naturally the brand itself can be the embodiment of this provenance Hence brand can be important as the carrier of provenance for the category
Local Aussie Provenance and Price markers have grown in importance as quality markers over the past year
Base: Total sample 2016 n=518, 2017 n=518 Q 4.3 – how can you tell good quality before you buy
Project Popeye 2.0 14
Size preference often based on practicality
10%
19%
21%
49%
10%
24%
17%
48%
No Preference
3-4 Litre Tin
2 Litre Bottle
1 Litre
2016
2017
Don't have the space for larger tins 36% The larger sizes cost too much in one go 33% Just don't use enough to buy larger sizes 27% If I buy too much it goes off/stays fresher 13%
I/We use and need a lot of olive oil 74% It’s better value 16%
I/We use and need a lot of olive oil 34% Don't have the space for larger tins 39% The larger sizes cost too much in one go 30%
Just don't use enough to buy larger sizes 19%
Base: Total sample 2016 n=518, 2017 n=518 Q.3.2 – do you have a size preference when buying EVOO?
Slight increase preference for smaller containers and less perceived value in larger tins!
Possibly due to increase in promotions on 1L/2L bottles?
Some evidence that the perceived value of large tins is waning
Project Popeye 2.0 15
Total diversity of perception
19%
23%
24%
8%
12%
14%
16%
25%
20%
8%
15%
16%
0% 5% 10% 15% 20% 25% 30%
More than a year
6-12 Months
3-6 months
Within a month
No idea how long
Was not aware it expired
2016
2017
Indicates a lot of guessing 26% of consumers don’t have any clue about spoilage Another 42% think it can be kept up to a year or longer It seems that oil is one of those products where very little spoilage is actually experienced (unlike dairy products) – it is consumed and bought too frequently Perhaps there are not obvious product markers to indicate spoilage to the consumer
Those who buy oil the least seem to know the least about spoilage (31% said had no idea)
Base: Total sample 2016 n=518, 2017 n=518 Q.3.4 – do you know how long after opening you should use EVOO?
Project Popeye 2.0 16
Price promo still reigning as a primary reason for purchase
7%
20%
34%
37%
52%
8%
18%
34%
36%
52%
0% 20% 40% 60%
Its the one that caught my eye
I like the taste of that one
It was an Australian olive
oil
I like the brand
It was on special/on sale
2016
2017
Heavier buyers • Price 48% • Brand 43% • Taste 29% Older buyers • Aussie 48%
Lighter buyers • Price 58%
The more they buy EVOO the more likely they are to be brand and taste discerning (perhaps not at the total expense of being on special)
54% of buyers said that the last time they bought it, it was on special (no change from 2016) 26% of heavy users said they used a catalogue last time they bought it (no real change from 2016)
Base: Total sample 2016 n=518, 2017 n=518 Q.3.6 – last time you bought EVOO what made you buy…..
No change whatsoever for purchase drivers in-store
Project Popeye 2.0 17
Nutritional awareness is slightly up on all levels
Base: Total sample 2016 n=518, 2017 n=2017 Q 4.4 – to what extent do you know the following about EVOO
53%
57%
24%
25%
10%
11%
16%
16%
11%
13%
28%
33%
34%
31%
46%
49%
43%
46%
43%
49%
45%
46%
47%
45%
13%
12%
31%
27%
48%
43%
41%
36%
45%
41%
25%
22%
Has Vitamin E
Rich in anti-oxidants
Good for heart health
Good for controlling & reducing cholesterol
Contains 'good' fats
Has active compounds and nutrients
Never heard Heard Something Definitely heard & know
Most definitely a move upwards on most of the health benefits of EVOO Difficult to predict this as a ‘trend’ at this stage but these seems to be drivers of increased usage
Older buyers are more likely to know about • Heart 66% • cholesterol 54%
Heavier users cite more knowledge of these benefits across the board which suggests all of these are potential drivers of increased usage
2016
2017
2016
2017
2016
2017
2016
2017
2016
2017
2016
2017
Project Popeye 2.0 18
Summary points Olive Oil usage is heavily influence by household habits growing up - heavy buyers much more likely grew up with olive oil
• It stands to reason that future OO consumption and penetration will increase
• Half of 25-35 year olds grew up with Olive Oil which suggest an upward trajectory for the category in terms of usage and penetration
• Indicates the importance of establishing EVOO as a part of cooking culture
Specific knowledge of the exact definition of Extra Virgin is patchy and quite low
• Younger consumer in particular are more likely to think it’s healthier and purer (more natural)
• It’s unclear whether more knowledge of the technical definition of EV leads to more consumption or changes impressions
The ‘holes’ in Olive Oil usage are to do with deep frying and cooking to a smaller extent there is still some lack of awareness that EVOO can be used for cooking (even though half the sample use it to cook)
• Continued Cooking associations are essential
• These are again due to cultural cooking issues but also might have a slight ‘taste’ association esp for older consumers (i.e. EVOO is too strong tasting for cooking)
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2
3
Project Popeye 2.0 19
Summary points Australian EVOO is perceived to be higher quality, healthier, better tasting that European.
• This demonstrates a PRIDE in the product. Just like Aussies are proud to buy Aussie wine (cause it’s so good)
• Given this is a European product originally, this demonstrates the tipping point that Aussie EVOO is part of the Australian culinary culture
Distinguishing on quality is difficult for most people and rely on brand to signify reliability and quality
• This is the opportunity for an Australian brand to gain the unassailable reputation of quality using the provenance as a central platform for communications and labelling
• Quality still needs to be tied up in the brand
There is general increased awareness of general positive nutritional benefits of EVOO but not of anything specifically.
• There is now a diminishing part of the EVOO buying population that don’t know much about any of the benefits
• However the reinforcement of these benefits is still very important for almost HALF of EVOO buyers as they know something about nutritional benefits but need to keep hearing the message
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5
6
Project Popeye 2.0 20
Project Popeye Extra Virgin
Olive Oil U & A Wave 2
Quantitative Report Rigas Harbilas
August 2017
