Latest Global Study Shows Healthy Beverages among Top Growing Global Categories Health, Freshness, Convenience and Value Drive Consumer Purchasing

SCHAUMBURG, Ill., Jan 24, 2007 (BUSINESS WIRE) -- Beverages that support healthy diets are among the world's fastest-growing food and beverage categories, according to the latest study released by ACNielsen Global Services, an operating unit of The Nielsen Company. The Executive News Report, titled What's Hot Around the Globe - Insights on Growth in Food & Beverage Products noted that Drinkable Yogurts in particular was the fastest-growing food and beverage category purchased by consumers worldwide.

"Around the world, consumers are balancing health and nutrition concerns with a desire for convenience and value," said Jane Perrin, senior vice president, managing director for ACNielsen Global Services. "Drinkable Yogurt is not only healthy and good tasting, but in many cases, the packaging offers the convenience and portability that consumers crave."

In total, nine product categories grew by double digits compared to 2005, with Drinkable Yogurts topping the list. In six of the nine categories, value sales totaled more than US $1 billion globally:

Top Category Growth (categories over US $ 1 billion globally)

                                                     Mid '05 - mid '06 Top Categories                                         Growth Rate----------------------------------------------------------------------  Drinkable Yogurt (40/45)                                  18%----------------------------------------------------------------------  Fresh Fish and Seafood (10/10)                            12%----------------------------------------------------------------------  Alcoholic Cider (9/18)                                    11%----------------------------------------------------------------------  Fresh Ready-to-Eat Salad (14/14)                          10%----------------------------------------------------------------------  Baby Formula (48/55)                                      10%----------------------------------------------------------------------  Dairy-Based Drinks (32/42)                                10%----------------------------------------------------------------------(Markets Growing/Markets Measured in parentheses)

Three categories between $100 million to $1 billion also showed double-digit growth. Overall, the global growth across all of the food and beverage categories included in the study was four percent.

Top Category Growth (categories between US $100 million and US $1 billion globally)

                                                     Mid '05 - mid '06 Top Categories                                         Growth Rate----------------------------------------------------------------------  Fresh/Refrigerated Soup / Bouillon / Stock (11/13)        18%----------------------------------------------------------------------  Fresh Herbs / Spices / Seasoning (6/7)                    17%----------------------------------------------------------------------  Frozen Meal Starters (3/4)                                10%----------------------------------------------------------------------(Markets Growing/Markets Measured in parentheses)

Drinkable Yogurts, number one on the list, exhibited year-over-year growth in 40 of the 45 markets measured, with 29 of these markets scattered around the world growing at more than 10%. China topped the list with a year-over-year growth rate of 49%. In markets as diverse as Greece, Romania, Finland, and Italy, Drinkable Yogurt grew by more than 40% Interestingly, in the United States, drinkable yogurt showed growth of only five percent.

Other Dairy-Based drinks (which included items such as fruit flavored milk and kefir-based drinks) also had strong growth across the board, with 32 markets (of the 42 measured) exhibiting growth. In most of these 32 markets, the growth was in double digits.

Marketing has helped the growth of these beverage categories. In some cases, Drinkable Yogurt and Dairy Based Drinks have use licensed characters to appeal to children, while the health benefits (and in the case of yogurt, the active cultures) appeal to parents. In markets such as Spain, Israel and Great Britain, for example, drinkable yogurt and pro-biotic yogurt were positioned in the marketplace as "heart healthy" with the results being strong category growth.

Freshness Was a Key Element for Consumers

Of the nine top categories listed, four categories were in the fresh arena - Fish and Seafood, Ready-to-Eat Salads, Soup, and Herbs/Spices. Many of these categories grew due to new product availability as well as more space being allocated in fresh/refrigerated sections of the store. In comparison, the frozen and shelf-stable varieties of the above items showed slower growth than their fresh counterparts did, and in the case of soup, actually showed a decline.

It is interesting to note that retailer private label products have a strong presence in fresh categories. In fact, when looking at the top 10 private label food and beverage categories in terms of share, nine are fresh items, with five growing at a rate faster than manufacturer brands within the same category.

                                Private Label Private Label Mfr                                Category      Category      Category    CATEGORY                    Share         Growth        Growth---------------------------------------------------------------------- 1. Fresh Cakes/ Gateaux             63%            5%          4%---------------------------------------------------------------------- 2. Frozen Fruit                     62%            8%          9%---------------------------------------------------------------------- 3. Fresh Ready to Eat Salads(a)     60%           12%         10%---------------------------------------------------------------------- 4. Fresh Pizza                      55%            7%          3%---------------------------------------------------------------------- 5. Fresh Eggs                       53%           -1%          1%---------------------------------------------------------------------- 6. Fresh Complete Ready Meals       49%            7%          8%---------------------------------------------------------------------- 7. Fresh Soup/ Bouillon/     Stock(a)                        48%           24%         18%---------------------------------------------------------------------- 8. Fresh Savory Fillings/     Pastes                          46%            4%          8%---------------------------------------------------------------------- 9. Fresh Dairy/ Milk/ Cream         40%            0%          1%----------------------------------------------------------------------10. Fresh Fish/ Shellfish/     Seafood                         40%           16%         12%----------------------------------------------------------------------

(a) Fastest Growing Category Overall

"It is clear that private label dominates many of the fresh categories in retail stores," said Perrin. "Retailers are focused on their consumers' needs, and some have even created specially designed in-store areas for fresh and prepared foods. Consumers can quickly and conveniently shop for the meal components they need for their families."

Convenience Also Helped Drive Growth

Other product categories that showed fast growth were those that made consumers' lives more convenient. Ready-to-Eat Salad, Baby Formula and Frozen Meal Starters all were among the fastest growth categories and had an element of convenience to them. Similar performance was seen within markets.

In China for example, Baby Food and Formula were fast growing because of focused marketing efforts on promoting these products as more 'convenient' for younger families. In Hungary, meat-based baby food products drove the growth while 'wet' baby food in jars were key drivers in Czech Republic and Slovakia.

Finally, the Frozen Meal Starters category was driven primarily by the large year-over-year growth of these products in North America, particularly with new "breakfast starter" products. A relatively new category in many markets, this category again addresses the consumers' need for quickly prepared meals for their families.

About the Study

This ACNielsen survey What's Hot around the Globe - Insights on Growth in Food & Beverage Products measured 66 markets around the world across more than 100 categories, comparing mid-year 2006 with mid-year 2005. These 66 markets account for more than 90% of the world's real GDP and over 75% of the world's population. The markets were grouped regionally into five areas (in order of market size): Europe, North America, Asia Pacific, Latin America, and Emerging Markets. Previous studies have focused on Household Products, Private Label and Personal Care products.

The report was based on purchase information from retailers in grocery, drug and mass merchandise outlets and generally excludes kiosks or vending machines. In a few markets, sales from convenience stores may be included. Both total category and private label information was collected for the report.

About The Nielsen Company

The Nielsen Company is a global information and media company with leading market positions and recognized brands in marketing information (ACNielsen), media information (Nielsen Media Research), business publications (Billboard, The Hollywood Reporter, Adweek) and trade shows. The privately held company has more than 42,000 employees and is active in more than 100 countries, with headquarters in Haarlem, the Netherlands, and New York, USA.

ACNielsen is the world's leading marketing information provider. Offering services in more than 100 countries, the unit provides measurement and analysis of marketplace dynamics and consumer attitudes and behavior. Clients rely on ACNielsen's market research, proprietary products, analytical tools and professional service to understand competitive performance, to uncover new opportunities and to raise the profitability of their marketing and sales campaigns. ACNielsen's Global Services provides clients with multi-country information and insight in a consistent, harmonized approach around the world.