Boxed Chocolates Study RoI and UK

Transcription

1 Boxed Chocolates Study RoI and UK October 2015 Growing the success of Irish food & horticulture

2 Contents 1 Introduction and background 6 Summary & takeaways 2 Need states and key trends 7 Appendices 3 Brand awareness & country of origin 4 Purchasing behaviour 5 Packaging evaluation

3 Background

4 Introduction In 2011 Bord Bia commissioned research to aid its premium chocolate manufacturers to understand consumers usage and attitudes to the category in order to help shape future strategic direction. Four year later we want to see what has changed from the consumers point of view. The focus is primarily on the UK, with Republic of Ireland secondary. Our objective was to gain an in-depth understanding of consumer motivations, delving deep into their mind-set of how they purchase boxed chocolates. Research took place between July and September 2015, with both quantitative and qualitative methodology. Our research partner was IPSOS MRBI. In this deck, sections one to five are the summary of findings which were presented to the industry. In the appendices are all the graphs in more detail. For further information on this report please Bord Bia Conumer Insight 2015

5 Source: Passport Euromonitor International October 2014 Mintel: Chocolate Confectionery, UK, May 2015 Chocolate Facts Assortments is 18% of this market and expecting 2.7% growth to 2019 The UK chocolate market grew by 1.6% in 2014 to just over 4.1 billion Chocolate confectionery in Ireland 593 million in 2014 Chocolate confectionery is expected grow at 3% over the forecast period to 2019 Premiumisation is a key trend as negative sugar content media has predicted the market to only grow by.4% to 2019

6 Premium Chocolate has declined by 21% 15.9 Million 6

7 Take home performance- premium vs standard Standard Worth 2billion +2.8% growth worth 55.1M Buying more often Gaining some buyers Premium Worth 392million -0.6% decline ( 2.3M) Larger baskets Buying less often Gaining some buyers 52 w/e 13 May 2012 vs. Last Year 7

8 How the Irish consumer is changing Era of Indulgence Recession Consumer A New Realism Sensibility Exuberance Anxiety Vigilance Ambition Trading Up Economising Responsibility Mindset Bullish Sober Resourceful Passion Accumulation Frugality Prioritisation Orientation Self-expression Selfpreservation Connection

9 The Study Quantitative Ireland UK Qualitative Ireland 3 Groups UK 6 Groups

10 Who is a typical Boxed Chocolates shopper? Years Bought in Supermarket Purchased for family members and partners ( 10.70)

11 Consumer Need States and Key Trends

12 Chocolate need states Power Vitality Enjoyment Gifting and Boxed Chocolates Conviviality Belonging Recognition Control Security

13 We can divide chocolate trends into Me We

14 Me Trends fit the individual 1 in 5 boxes of chocolates

15 HEALTH raw

16 HEALTH - functional

17 HEALTH clean indulgence Dark Chocolate covered Edamame Purple Sweet Potato Chocolate, with white chocolate and purple potato paste. Vegetables use in Chocolate and Ice Cream

18 HEALTH through pleasure

19 TECHNOLOGY 3D Printing White Organic Yogurt Chocolate with Lemon Zest and Pepper

20 EXPERIMENTAL FLAVOURS Blood Chocolate

21 EXPERIMENTAL FLAVOURS Pink Pepper and Citrus Quinoa in milk chocolate White Organic Yogurt Chocolate with Lemon Zest and Pepper Citrus Organic dark chocolate with buttery crispy crépes

22 ALCOHOL INFUSIONS

23 ALCOHOL INFUSIONS

24 CUSTOMISATION

25 PREMIUM - through lack of packaging

26 ETHICALLY TRADED

27 ORIGIN being bold

28 MAXIMISE INDULGENCE

29 We Trends gifting for someone else 4 out of 5 Boxed Chocolates

30 PREMIUM through packaging

31 PREMIUM through lack of packaging

32 PACKAGING dedicated romance

33 OCCASIONS

34 OCCASION BASED Thank You Retro Party Happy Birthday It s cold outside!

35 NOSTALGIA Nostalgia - Storytelling - storytelling Through Chocolate

36 CONVIVIALTIY - a new Chocolate Fondant

37 EXPERIMENTAL FLAVOURS - savoury

38 ALCOHOL PAIRINGS - WINE

39 CHILLED CHOCOLATE

40 SINGLE ORIGIN

41 AFFORDABLE LUXURY Private Label

42 Key Trends - Two Parallel Worlds Chocolate where you are the primary recipient you might share it but it is yours to share Chocolate where others are the recipient you might have some but that s up to someone else 1 in 5 boxed chocolates 4 in 5 boxed chocolates

43 Mapping trends to need states opportunities in conviviality and belonging KitKat 200 Flavours! Individualism/ Self expression Vitality Maximise Indulgence New! Experimental flavours Hybrid Consumption Ease of Enjoyment Enjoyment Permission to indulge (Share Blocks) (Share bags) Conviviality Gifting and Boxed Chocolates Premiumness via lack of packaging Premiumness via packaging Power Ethical Claims on launch Specialist stores Sophisticated production Recognition Support a cause Authentic stories Selectionista Complimentary packaging Cultural Awareness Ethically traded Tried and Tested Ingredient Benefits Health benefits of chocolate? Control Healthy Indulgence Balancing uncertainty elsewhere Comfort with tradition Security Belonging

44 Focus on Conviviality & Belonging Occasional Based Gifts Conviviality Vitality Enjoyment Dipping Adventure Temiyage Pepero Day Power Valentine s vs. White Day Belonging Recognition Control Security Reminiscence Packs Comfort with tradition

45 Brand and Origin Awareness

46 According to the Irish consumer Irish chocolate is worth paying more for Irish and British are the best tasting chocolate Belgian chocolate is truly different from other countries Swiss & Belgian is the ulltimate for premium chocolate

47 Associations with Countries ROI Country of origin: associations Irish British Belgian Swiss Italian German Is worth paying more for The best tasting chocolate Are truly different from other countries for chocolate The ultimate for premium chocolates Produces 'single origin' chocolate Produces chocolate from cocoa beans sourced from the best growing regions High levels of don t know associated with single origin & sourcing from best growing regions (45% & 32%)

48 According to the British consumer Irish chocolate is worth paying more for British and Belgian are the best tasting chocolates Belgian chocolate is truly different from other countries Swiss and Belgian chocolate are the ultimate for premium chocolate

49 Associations with Countries UK Irish British Belgian Swiss Italian German Is worth paying more for The best tasting chocolate Are truly different from other countries for chocolate The ultimate for premium chocolates Produces 'single origin' chocolate Produces chocolate from cocoa beans sourced from the best growing regions High levels of don t know associated with single origin & sourcing from best growing regions (46% & 38%) Bord Bia Consumer Insight 2015

50 Spontaneous Brand Awareness (Top 10 Mentions) ROI Cadbury's - unspecified 39% Roses 30% Milk Tray 27% Butlers 26% Thorntons 25% Lindt 24% Lily O'Brien's 20% Ferrero 20% Black Magic 17% Quality Street 16% Thorntons UK 51% Cadbury's - unspecified 37% Milk Tray 32% Roses 24% Lindt (all except Lindor range) 20% Black Magic 18% Quality Street 17% Celebrations 16% Ferrero 14% Dairy Milk 13% Premium Brands have suffered most

51 Brand Awareness (Spontaneous and Prompted) Ferrero Butlers Milk Tray After Eight Lily O'Brien's Dairy Box Thorntons Lindt (all except Lindor) Black Magic Lir (NET) Lindt Lindor Terrys All Gold Marks & Spencer Luxury private label Green and Black Cadbury's -- unspecified Guylian Leonidas Discounter Private Label Roses 85% 83% 83% 81% 76% 75% 74% 72% 70% 70% 65% 55% 49% 46% 41% 39% 38% 38% 37% 30% Thorntons Milk Tray Ferrero After Eight Dairy Box Lindt (all except Lindor) Guylian Black Magic Terrys All Gold Lindt Lindor Green and Black Marks & Spencer Luxury private label Hotel Chocolat Bendicks Lir (NET) Cadbury's -- unspecified Elizabeth Shaw Lily O'Brien's Discounter Private Label Butlers 88% 85% 84% 81% 77% 74% 72% 69% 68% 65% 61% 59% 57% 53% 47% 47% 37% 36% 27% 26% 11%

52 Brand Attributes Is a low priced brand Good Value for Money A popular or well like brand Is a low priced brand Good Value for Money A popular or well like brand Is a low priced brand Good Value for Money A popular or well like brand A quality brand Have attractive packaging An innovative brand Have attractive packaging The best tasting chocolate Have attractive packaging

53 Brand Attributes A luxury brand A luxury brand A luxury brand An innovative brand An innovative brand An innovative brand Their chocolates are handmade Good value for money Have attractive packaging Their chocolates are handmade Good value for money Have attractive packaging Their chocolates are handmade Good value for money Have attractive packaging

54 Brand Associations with Luxury Premium / High End Expensive Cheap Private Label Mainstream

55 Brand Associations with Luxury Premium / High End Expensive Cheap Private Label Mainstream

56 Purchasing Behaviour

57 Shopper attitudes to purchasing behaviour SUPERMARKET IS DOMINANT CONVERSION IS A PROBLEM HIGH LEVEL OF SUBSTITUTION THE COMPETITIVE SET IS SOLELY IN-STORE IMPULSE DRIVEN LEAVE IT TO THE LAST MINUTE CHOCOLATES OFTEN A +1

58 Supermarket is dominant Supermarket 60% Supermarket 60% Discounter 11% Specialist chocolate stores 13% Specialist chocolate stores 9% Department store 6% Airport 4% Discounter 5% Convenience store 4% Convenience store 3% Newsagents 3% Retail village 3% Department store 3% Online 3% Petrol station 2% Newsagents 2% Retail village 2% Airport 2% Online 1% Petrol station 1% Other 1% Other 1%

59 Tesco the dominant retailer ROI UK Tesco Dunnes Stores SuperValu Dealz Aldi Lidl Butlers Chocolate Café Centra Thorntons Tesco Express Leonidas Marks & Spencer Spar/Eurospar 12% 7% 4% 4% 4% 4% 2% 2% 2% 2% 2% 2% 46% Tesco Asda Sainsburys Thorntons Morrisons Hotel Chocolat Waitrose Tesco Express Marks & Spencer Spar/Eurospar Poundland Aldi 28% 15% 14% 9% 6% 4% 3% 3% 2% 2% 2% 2%

60 Low levels of online shopping Ever bought online No 81% Never bought chocolate online Chocolate is available everywhere, so no need to buy it online 57% I need to physically see and/ or handle what I am buying The chocolate might be damaged (melt, get crushed, etc.) in transit Would have to wait too long to receive it Generally it is a last minute decision to purchase chocolate 38% 38% 27% 19% Yes 13% Can't recall 6% Other 2% Don t know 3%

61 Purchasing Chocolate Online Ever bought online Never bought chocolate online No 66% Chocolate is available everywhere, so no need to buy it online 51% The chocolate might be damaged (melt, get crushed, etc.) in transit I need to physically see and/ or handle what I am buying 37% 36% Would have to wait too long to receive it 23% Generally it is a last minute decision to purchase chocolate 21% Yes 26% Can't recall 8% Other 1% Top 3 Mentions of Brands Purchased Thorntons 36% Hotel Chocolat 27% Ferrero 13% Don t know 5%

62 Purchasing Chocolate Online Ever bought online Never bought chocolate online No 66% Chocolate is available everywhere, so no need to buy it online 51% The chocolate might be damaged (melt, get crushed, etc.) in transit I need to physically see and/ or handle what I am buying 37% 36% Would have to wait too long to receive it 23% Generally it is a last minute decision to purchase chocolate 21% Yes 26% Can't recall 8% Other 1% Top 3 Mentions of Brands Purchased Thorntons 36% Hotel Chocolat 27% Ferrero 13% Don t know 5%

63 Decision is made in-store

64 UK make more decisions at POP

65 Occasions for boxed chocolates ROI UK Seasonal 77% 76% Other Occasion e.g. Thank you / well done 69% 65% Special Moment 56% 46% Party Time 46% 33%

66 Breakdown of all occasions in the last 12 months Christmas Someone's birthday A "thank you" gift Mother's Day Visiting friends/family Easter Just to show someone I care Valentine's Day A special treat for myself Gift for a dinner party/other party Romantic gesture An anniversary Saw a special offer A gift to say "congratulations" A special evening in A "get well soon" gift Father's Day Specifically as a dessert Other seasonal occasion Other special moment An "I'm sorry" gift ROI 53% 46% 39% 37% 36% 34% 31% 31% 29% 27% 23% 22% 20% 20% 19% 17% 14% 11% 11% 10% 7% 2011 % n/a 41 n/a n/a 26 n/a n/a UK 35% 32% 24% 26% 22% 23% 30% 20% 19% 17% 17% 14% 18% 12% 14% 8% 6% 6% 6% 54% 49% 2011 % n/a 37 n/a n/a 21 n/a n/a

67 Ireland purchases more boxed chocolates No. of times past year ROI UK Party Time Other Occasion Special Moment Seasonal TOTAL

68 Ireland purchases more boxed chocolates No. of times past year ROI UK Party Time Other Occasion Special Moment Seasonal TOTAL

69 Box Size Purchase By Last Occasion Total % Seasonal Special Moment Party Time Other Occasion Small box (up to 200g) Medium box (up to 400g) Large box (over 400g) Total Seasonal Special Moment Party Time Other Occasion Small box (up to 200g) Medium box (up to 400g) Large box (over 400g)

70 Who do we buy for? Partner 26% / 26% Partner 26% Friends 18% / 15% Teacher / childminder 3% / 1%

71 Drivers for last purchase The person I am buying for The taste or quality of the chocolates It is good value for money The brand of chocolate The type of chocolate The size of the box of chocolates How it looks/is packaged The occasion I am buying for There is a special offer/deal available It is a low price It is pre-wrapped It is expensive or premium Any Important 7% 7% 15% 14% 12% 23% 23% 19% 31% 31% 42% 40% Most Important 25% 18% 13% 14% 4% 3% 3% 4% 6% 5% 1% 2%

72 Drivers for last purchase The person I am buying for The taste or quality of the chocolates It is good value for money The brand of chocolate The type of chocolate The size of the box of chocolates How it looks/is packaged The occasion I am buying for There is a special offer/deal available It is a low price It is pre-wrapped It is expensive or premium Any Important 7% 7% 15% 14% 12% 23% 23% 19% 31% 31% 42% 40% Most Important 25% 4% 3% 3% 4% 6% 5% 1% 2% 18% 13% 14%

73 Drivers for last purchase The person I am buying for It is good value for money The taste or quality of the chocolates The brand of chocolate The type of chocolate The size of the box of chocolates How it looks/is packaged There is a special offer/deal available It is a low price The occasion I am buying for It is expensive or premium It is pre-wrapped Any Important 8% 8% 17% 15% 13% 13% 21% 32% 28% 38% 36% 35% Most Important 23% 14% 16% 12% 7% 3% 2% 6% 6% 3% 2% 2%

74 Drivers for last purchase The person I am buying for It is good value for money The taste or quality of the chocolates The brand of chocolate The type of chocolate The size of the box of chocolates How it looks/is packaged There is a special offer/deal available It is a low price The occasion I am buying for It is expensive or premium It is pre-wrapped Any Important 8% 8% 17% 15% 13% 13% 21% 32% 28% 38% 36% 35% Most Important 23% 14% 16% 12% 7% 3% 2% 6% 6% 3% 2% 2%

75 UK is slightly more value conscious ROI % UK % Did you have a set budget in mind? Base: All Did you go over, under or stick to this budget? Base: Those who had a budget No Yes Over On Under Were the chocolates on a special deal? Base: All No Yes

76 Average spend on last occasion ROI UK Equivalent * Market Rates: 29/09/2015 Party Time (11.91) Special Moments (12.74) Seasonal (10.82) Other Occasion (11.33) Any Occasion (Total) (10.70)

77 Chocolate is the plus one Bought Anything Else? Bought Anything Else? No 43% Yes 51% No 51% Yes 43% Accompaniments to Chocolates On That Occasion Accompaniments to Chocolates On That Occasion Flowers 41% Flowers 35% Wine 37% Greeting card 30% Greeting card 30% Wine 27% Snacks 12% Champagne/Prosecco/Cava 13% hampagne/prosecco/cava Wrapping paper 11%

78 Chocolate is a plus one ROI UK % 40% Average Purchases 1.65 items 1.55 items

79 Packaging Evaluation

80 Box Designs Shown

81 Least Favourite Box Design Reasons Why 37% Plain/Bland/Boring/Uninteresting/Dull 54% Unattractive/Does not appeal to me 13% Cannot see the chocolates/contents/no picture 10% Not enough information given/label too small 6% Looks cheap 6%

82 Least Favourite Box Design Reasons Why 34% Plain/Bland/Boring/Uninteresting/Dull 56% Cannot see the chocolates/contents/no picture 18% Not enough information given/label too small 11% Unattractive/Does not appeal to me 7% Looks cheap 5%

83 aitrose Manchester

84 aitrose Manchester On shelf Standout You cannot do it in isolation. You have to keep your competitive set in mind. What is your brand communications strategy?

85 Packaging Approaches Competitors Ultra premium Brand Led Packaging Experiential Mainstream Brand Led Packaging Private Label Lack of Brand Recognition Needs Based Packaging

86 Criteria of Packaging Evaluation - Purchase

87 Summary and takeaways

88 Boxed chocolates in numbers 4 out of 5 boxes bought for another person Average spend / boxes bought per person p/yr in Ireland versus 2.88 in the UK

89 Recap SUPERMARKET IS DOMINANT IMPULSE DRIVEN OCCASION, OCCASION, OCCASION... THE COMPETITIVE SET IS SOLELY IN-STORE AVAILABILITY IS KEY PACKAGING CHOCOLATES OFTEN A +1 UK MORE VALUE FOCUSSED

90 Key Findings Low level of discernment in the boxed chocolates market. The path to purchase is largely through supermarkets, with a high proportion of brand selection done in store. This means shelf stand out appeal is critical. The UK market is more comfortable gifting private label or luxury private label boxed chocolates. UK is more value driven. Boxed chocolates to be given to friends centres around value in the UK but around packaging in Ireland. In ROI, Ireland and Britain are associated with the best tasting chocolate, while in the UK, it is Britain and Belgium that are associated. Boxed chocolates account for 40% of the total spend for the occasion. Flowers, wine and a greeting card are the most common accompaniments. There is a clear tension between luxury and everyday. This is particularly pronounced in the UK where large, mainstream brands dominate the marketplace. Bord Bia Consumer Insight 2015

91 Moving Forward Each brand needs to explore the extent to which their portfolio aligns with the key occasions for purchase and the individual they are being purchase for. In addition to this, there is limited evidence of brands leveraging the need states that underpin gifting. If customers can clearly recognise the product purpose they are more likely to consider it. More focus should be place on we innovation around conviviality and belonging. In the UK marketplace, luxurious cues appear to be more common in niche channels. When considering the approach in the UK, it is worth considering how specific packaging designs may alienate customers either through being overtly luxurious or have an absence of cues such as product information Buyers choose at the fixture. All designs need to considered in the context of the competitive market place, not just their performance within the brand portfolio. Minimising risk for those considering a purchase is paramount. Above all make me (the shopper) look good in front of the recipient by showing that I understand their needs and the occasion Bord Bia Consumer Insight 2015

92 Appendices

93 Research Methodology A qualitative and quantitative approach was undertaken. The qualitative phase consisted of six groups in the UK and 3 minigroups in Dublin. There was a mix of socio-economic backgrounds. Group No. Gender Location Socio- Economic Age 1 Mixed London ABC Female London ABC Mixed South-east ABC Male South-east C1C Group No. Gender Location Socio- Economic Age 1 Female Dublin (TBC) ABC Mixed Dublin (TBC) ABC Female Dublin (TBC) C1C Mixed Manchester C1C Female Manchester ABC Bord Bia Consumer Insight 2015

94 Research Methodology The quantitative element comprised of a CAWI (Computer Aided Web Interview) methodology. Sample consisted of 751 ROI respondents and 752 UK respondents, aged 18+, who had purchased boxed chocolates within the past 6 months. Fieldwork was conducted in September Bord Bia Consumer Insight 2015

95 Who is the Average Boxed Chocolate Purchaser? Gender: Female Female Age: years old years old Average Number of Boxed Chocolates Purchased in Past 12 Months: Average Price Paid: Brand Most Often Buy: Milk Tray Thorntons Where buy Most Often: Supermarket Supermarket Purchased For: Family Members and partner Family Members and partner Bord Bia Consumer Insight 2015

96 Sample Profile ROI A higher proportion of females purchase boxed chocolates, as do year olds. Gender Age Region 36% 64% (49%) (51%) (15%) 55+ 9% (30%) 11% % (17%) 26% (20%) 38% Conn/ Ulster 15% (18%) (19%) Munster 23% (27%) Dublin 34% (28%) Rest of Leinster 27% (27%) *Figures in brackets are demographic profile Base: All ROI Respondents: 751 Bord Bia Consumer Insight 2015

97 Sample Profile UK A similar dominance of females purchasers in UK but not quite as strong as ROI (60% UK vs. 64% ROI). Almost half of purchases are made by year olds. Gender Age Region 40% 60% (49%) (51%) 55+ (34%) (16%) 10% 14% North East 5% (4%) North West 12% (11%) Yorkshire & the Humber 10% (8%) East Midlands 6% (7%) West Midlands 10% (9%) (17%) 16% 15% (17%) 46% (16%) East of England 5% (9%) London 13% (13%) South East 15% (14%) South West 10% (8%) Wales 5% (8%) Scotland 6% (5%) Northern Ireland 2% (3%) *Figures in brackets are demographic profile Base: All UK Respondents: 752 Bord Bia Consumer Insight 2015

98 Key Trends in Chocolate And Luxury

99 Ever Tried ROI Have tried and would be interested in trying again Have tried but would not be interested in trying again Have not tried and would be interested in trying Have not tried and would not be interested in trying Chocolate with fruity flavours 53% 14% 18% 15% Chocolate that supports a cause 44% 36% 8% 13% Chocolate with salted caramel 41% 23% 13% 23% Chocolate that supports a specific group of farmers 36% 46% 5% 13% Chocolate with spice flavours 32% 21% 19% 27% Reduced sugar chocolate 28% 36% 13% 24% "Raw" chocolate 18% 47% 11% 24% Chocolate sweetened with stevia 16% 42% 11% 31% Irish respondents are interested in trying Raw chocolate and chocolate that supports a specific farming group. Respondents are least interested in tasting chocolate with stevia. Chocolate with fruity flavours or salted caramel performs better than chocolate flavoured Q.52 Again thinking about boxed chocolates, bars and share bags of chocolate, which of the following types of chocolate have you ever tried, or not tried? Base: All ROI Respondents: 751 Bord Bia Consumer Insight 2015 with spices.

100 Ever Tried UK Have tried and would be interested in trying again Have tried but would not be interested in trying again Have not tried and would be interested in trying Have not tried and would not be interested in trying Chocolate with fruity flavours 55% 16% 14% 15% Chocolate with salted caramel 44% 26% 13% 17% Chocolate with spice flavours 36% 24% 17% 23% Chocolate that supports a specific group of farmers 35% 42% 7% 16% Chocolate that supports a cause 35% 44% 6% 15% Reduced sugar chocolate 21% 38% 15% 26% "Raw" chocolate 18% 48% 9% 25% Chocolate sweetened with stevia 14% 47% 10% 29% British respondents are interested in trying Raw chocolate. Chocolate sweetened with stevia is polarising views with some interested in trying it but it also receives the highest mentions of disinterest in trialling. Similar to ROI, chocolate with fruity flavours or salted caramel Q.52 Again thinking about boxed chocolates, bars and share bags of chocolate, which of the following types of chocolate have you ever tried, or not tried? Base: All UK Respondents: 752 Bord Bia Consumer Insight 2015 performs better than chocolate flavoured with spices.

101 Consumer landscape

102 Spontaneous Brand Awareness ROI & UK Markets (Top 10 Mentions ex Irish Brands) ROI Cadbury's unspecified 39% Roses 30% Milk Tray 27% Thorntons 25% Lindt 24% Ferrero 20% Black Magic 17% Quality Street 16% Nestlé 13% Dairy Milk 11% UK Thorntons 51% Cadbury's - unspecified 37% Milk Tray 32% Roses 24% Lindt (all except Lindor range) 20% Black Magic 18% Quality Street 17% Celebrations 16% Ferrero 14% Dairy Milk 13% Cadbury s is the top of mind brand in Ireland. However, with Ferrero s acquisition of Thorntons this now makes them the dominant player in both markets. Q.2 When you think of boxes of chocolates (excluding tins and bags), which brand comes to mind first? Q.3 And which other boxes of chocolate can you think of? Base: All ROI Respondents: 751 / All UK Respondents: 752 In ROI, the number of mentions of Thorntons has grown (18% in 2011). Bord Bia Consumer Insight 2015

103 Awareness of Brands ex Irish Brands (Spontaneous & Prompted) ROI UK Ferrero 85% Thorntons 88% Milk Tray 83% Milk Tray 85% After Eight 81% Ferrero 84% Dairy Box 75% After Eight 81% Thorntons 74% Dairy Box 77% Lindt (all except Lindor) 72% Lindt (all except Lindor) 74% Black Magic 70% Guylian 72% Lindt Lindor 65% Black Magic 69% Terrys All Gold 55% Terrys All Gold 68% Marks & Spencer 49% Lindt Lindor 65% Luxury private label 46% Green and Black 61% Green and Black 41% Marks & Spencer 59% Cadbury's -- unspecified 39% Luxury private label 57% Guylian 38% Hotel Chocolat 53% Leonidas 38% Bendicks 47% Q.2 When you think of boxes of chocolates (excluding tins and bags), which brand comes to mind first? Q.3 And which other boxes of chocolate can you think of? Q.4 Which of the following brands of boxes of chocolate have you ever heard of? Base: All ROI Respondents: 751 / All UK Respondents: 752 It is the same 6 brands that are rated in the top 6 across both markets. Bord Bia Consumer Insight 2015

104 Past 6 Months Brand Purchase Top 10 Mentions (Ex Irish Mentions) ROI UK Milk Tray 35% Ferrero 33% After Eight 24% Lindt Lindor 17% Thorntons 15% Dairy Box 15% Lindt (all except Lindor range) 12% Discounter private label 10% Black Magic 7% Marks & Spencer 7% Thorntons 38% Milk Tray 33% Ferrero 26% After Eight 20% Dairy Box 18% Lindt Lindor 16% Guylian 14% Lindt (all except Lindor range) 11% Marks & Spencer 10% Hotel Chocolat 10% Milk Tray in ROI and Thorntons in UK are the top brand in each market. Q.2 When you think of boxes of chocolates (excluding tins and bags), which brand comes to mind first? Q.3 And which other boxes of chocolate can you think of? Q.4 Which of the following brands of boxes of chocolate have you ever heard of? Base: All ROI Respondents: 751 / All UK Respondents: 752 Bord Bia Consumer Insight 2015

105 Last Occasion Boxed Chocolates Purchased Store Type Tesco Dunnes Stores SuperValu Dealz Aldi Lidl Butlers Chocolate Café Centra Thorntons Tesco Express Leonidas Marks & Spencer Spar/Eurospar ROI 12% 7% 4% 4% 4% 4% 2% 2% 2% 2% 2% 2% UK 46% Tesco 28% Asda 15% Sainsburys 14% Thorntons 9% Morrisons 6% Hotel Chocolat 4% Waitrose 3% Tesco Express 3% Marks & Spencer 2% Spar/Eurospar 2% Poundland 2% Aldi 2% Supermarkets are dominant. Answers <2% not shown Q.25a Base: And from which <BRING IN CODE FROM Q.25> did you buy the <<Q.8 ANSWER>> chocolates on that last occasion? All ROI Respondents who bought from a supermarket/discounter/convenience store/specialist store on the last occasion: 626 / All UK Respondents who bought from a supermarket/discounter/convenience store/specialist store on the last occasion: 610 In both markets, Discounters as a channel has grown compared to Bord Bia Consumer Insight 2015

106 Last Occasion Boxed Chocolates Purchased Channel Type ROI UK Supermarket 60% Supermarket 60% Discounter 11% Specialist chocolate stores 13% Specialist chocolate stores 9% Department store 6% Airport 4% Discounter 5% Convenience store 4% Convenience store 3% Newsagents 3% Retail village 3% Department store 3% Online 3% Petrol station 2% Newsagents 2% Retail village 2% Airport 2% Online 1% Petrol station 1% Other 1% Other 1% Supermarkets are dominant. In both markets, Discounters as a channel has grown compared to Q.25 And where did you buy the <BRING IN CODE FROM Q.8> chocolates on that last occasion? Base: All ROI Respondents: 751 / All UK Respondents: 752 Bord Bia Consumer Insight 2015

107 Last 12 Months Penetration All Occasions Christmas Someone's birthday A "thank you" gift Mother's Day Visiting friends/family Easter Just to show someone I care Valentine's Day A special treat for myself Gift for a dinner party/other party Romantic gesture An anniversary Saw a special offer A gift to say "congratulations" A special evening in A "get well soon" gift Father's Day Specifically as a dessert Other seasonal occasion Other special moment An "I'm sorry" gift ROI 53% 46% 39% 37% 36% 34% 31% 31% 29% 27% 23% 22% 20% 20% 19% 17% 14% 11% 11% 10% 7% 2011 % n/a 41 n/a n/a 26 n/a n/a UK 35% 32% 24% 26% 22% 23% 30% 20% 19% 17% 17% 14% 18% 12% 14% 8% 6% 6% 6% 54% 49% 2011 % n/a 37 n/a n/a 21 n/a n/a Christmas and birthdays are the most popular occasions, similar to Q.18 Boxes of chocolates are commonly purchased for a specific occasion. Which of the following occasions (if any) do you recall buying a box of chocolates for in the last 12 months? Base: All ROI Respondents: 751 / All UK Respondents: 752 Bord Bia Consumer Insight 2015

108 Last 12 Months Penetration Total Occasions ROI UK Seasonal 77% 76% Other Occasion 69% 65% Special Moment 56% 46% Party Time 46% 33% Sales are most extensive for Seasonal occasions, followed by Other occasions, Special Moments and Party Time. Q.18 Boxes of chocolates are commonly purchased for a specific occasion. Which of the following occasions (if any) do you recall buying a box of chocolates for in the last 12 months? Base: All ROI Respondents: 751 / All UK Respondents: 752 Bord Bia Consumer Insight 2015

109 Incidence of Occasion Segments No. of times past year ROI UK Party Time Other Occasion Larger volume opportunities occur for Party Time and Other Occasion, followed by Special Moment and Seasonal. Special Moment Seasonal TOTAL Overall, ROI sees males buying a higher volume, those aged and C2s. While in the UK, it is females who buy more boxes, respondents aged and DEFs. Q.19 And approximately how many times, or on how many separate occasions did you buy a box of chocolates for <<INSERT ANSWER FROM Q.18>> in the last 12 months? Base: All ROI Respondents (751) / All UK Respondents (752) Bord Bia Consumer Insight 2015

110 Box Size Purchase By Last Occasion- ROI Total Seasonal Special Moment Party Time Other Occasion % Small box (up to 200g) Medium box (up to 400g) Large box (over 400g) In ROI, large boxes of chocolates have a higher association with Seasonal gifting, medium boxes with Party Time and smaller boxes with Other occasions. Q.24 And approximately what size of box was the <<INSERT FROM Q.8>> chocolates you bought on that occasion? Q.22 Earlier in this survey, you said you bought <<INSERT ANSWER FROM Q.8>> on the last occasion you bought a box of chocolates. Thinking back to this time, which occasion or occasions did you feel best represented this? Base: All ROI Respondents: 751 Bord Bia Consumer Insight 2015

111 Box Size Purchase By Last Occasion - UK Total Seasonal Special Moment Party Time Other Occasion % % % % % Small box (up to 200g) Medium box (up to 400g) Large box (over 400g) In UK, medium boxes have more of an association with Seasonal occasions, and similar to ROI smaller boxes are linked with Other gifting. Q.24 And approximately what size of box was the <<INSERT FROM Q.8>> chocolates you bought on that occasion? Q.22 Earlier in this survey, you said you bought <<INSERT ANSWER FROM Q.8>> on the last occasion you bought a box of chocolates. Thinking back to this time, which occasion or occasions did you feel best represented this? Base: All UK Respondents: 752 Bord Bia Consumer Insight 2015

112 Person Buying for On Last Occasion Nobody specifically in Teacher/ mind Childminder 1% (3%) 3% (n/a) Work colleague(s) 7% Myself 17% (14%) (5%) ROI Other 1% (3%) Other family member(s) 27% (28%) Teacher/ Childminder 1% (n/a) Work colleague(s) 7% (5%) Myself 21% (15%) Nobody specifically in UK mind 2% (2%) Other 1% (2%) Other family member(s) 27% (30%) Friends 18% (18%) 2011 Figures in ( ) Spouse/ partner 26% (30%) Friends 15% (17%) Partners and other family members are the most likely recipients. Myself is high with around 1 in 5 stating the purchases were for them. Recipient profile is similar to Interestingly more purchases for self are recorded in Q.23 And who was the person you were buying the <<INSERT ANSWER FROM Q.8>> chocolates for on that occasion? Base: All ROI Respondents: 751 / All UK Respondents: 752 Spouse/ partner 26% (30%) Bord Bia Consumer Insight 2015

113 Last Occasion Boxed Chocolate Budgeting ROI % UK % Did you have a set budget in mind? Base: All Did you go over, under or stick to this budget? Base: Those who had a budget No Yes Over On Under Were the chocolates on a special deal? Base: All No Yes Interestingly about 1 in 2 did not have a budget in mind. Of those who had a budget, the majority stuck to it. 1 in 3 purchases are on offer. Q.28 Thinking again about the last occasion where you bought <<Q.8 ANSWER>> chocolates, did you have a set budget in mind as to what you were willing to pay? Q.29 And do you recall did you Go Over, Go Under or Stick to this budget when you bought these <<Q.8 ANSWER>> chocolates? Q.30 Was the <<Q.8 ANSWER>> chocolates on a special deal or promotion on that last occasion? Less special offer purchases compared to 2011 when ROI stood at 39% and UK at 45&. Base: All ROI Respondents: 751/ All ROI Respondents who set a budget: 296/ All UK Respondents :752/ All UK Respondents who set a budget : 285 Bord Bia Consumer Insight 2015

114 Last Occasion Boxed Chocolate Budgeting ROI Total Seasonal Special Moment Party Time Other Did you have a set budget in mind? Base: All No Yes Did you go over, under or stick to this budget? Base: Those who had a budget Over On Under Were the chocolates on a special deal? Base: All No Yes In ROI, Special Moments are less likely to have a budget associated with them and purchasers Q.28 Thinking again about the last occasion where you bought <<Q.8 ANSWER>> chocolates, did you have a set budget in mind as to what you were willing to pay? Q.29 And do you recall did you Go Over, Go Under or Stick to this budget when you bought these <<Q.8 ANSWER>> chocolates? Q.30 are Was the more <<Q.8 ANSWER>> likely to chocolates spend on more a special deal than or promotion they anticipated on that last occasion? and less likely to buy on promotion. Base: All ROI Respondents: 751/ All ROI Respondents who set a budget: 296 Bord Bia Consumer Insight 2015

115 Last Occasion Boxed Chocolate Budgeting UK Total Seasonal Special Moment Party Time Other Did you have a set budget in mind? Base: All No Yes Did you go over, under or stick to this budget? Base: Those who had a budget Over On Under Were the chocolates on a special deal? Base: All No Yes In UK, Seasonal and Special Moments are the occasions where a purchaser is less likely to Q.28 Thinking again about the last occasion where you bought <<Q.8 ANSWER>> chocolates, did you have a set budget in mind as to what you were willing to pay? Q.29 And do you recall did you Go Over, Go Under or Stick to this budget when you bought these <<Q.8 ANSWER>> chocolates? Q.30 have Was a the budget. <<Q.8 ANSWER>> In ROI chocolates and on UK, a special purchases deal or promotion for on that Other last occasion? occasions are more influenced by offers. Base: All UK Respondents :752/ All UK Respondents who set a budget : 285 Bord Bia Consumer Insight 2015

116 Approximate Spend on Last Occasion ROI UK Equivalent * Market Rates: 29/09/2015 Party Time (11.91) Special Moments (12.74) Seasonal (10.82) Other Occasion (11.33) Any Occasion (Total) (10.70) Across both markets, Special Moments and Party Time have the higher spend. Compared to 2011, in ROI and UK, spend increased by 21% and 17% respectively. Q.31 And approximately how much did you spend on the <<Q.8 ANSWER>> chocolates on that last occasion? Base: All ROI Respondents: 751/ All UK Respondents: 752 Bord Bia Consumer Insight 2015

117 Other Purchase With Chocolate Bought on Last Occasion Bought Anything Else? (751) Don't know 6% Yes 51% (50%) Bought Anything Else? (752) Don't know 7% Yes 43% (45%) No 43% 2011 Figures in ( ) No 51% Accompaniments to Chocolates On That Occasion Accompaniments to Chocolates On That Occasion Flowers Wine Greeting card Snacks Champagne/Prosecco/Cava Wrapping paper Other alcohol Other treats Item(s) of clothing Answers <3% not shown Q.32 On this last occasion (<<INSERT ANSWER FROM Q.22>>) when you bought <<Q.8 ANSWER>> chocolates, did you buy anything else to go with the chocolates? Q.33 And which of the following (if any) accompanied the <<Q.8 ANSWER>> chocolates on that occasion? Base: All ROI Respondents : 751/ All ROI Respondents who purchased another item to go with the chocolates: 381/ All UK Respondents: 752/ All UK Respondents who purchased another item to go with the chocolates: 322 Bord Bia Consumer Insight % 10% 9% 7% 7% 3% 41% 37% 30% Flowers Greeting card Wine Champagne/Prosecco/Cava Wrapping paper Snacks Other alcohol Other treats Other 13% 11% 11% 9% 7% 3% 35% 30% 27% 5 in 10 in ROI and 4 in 10 UK purchasers also bought something in addition to the chocolates, with flowers, cards and wine being the most popular accompaniments.

118 Proportion of Spend On Chocolates Vs. Accompanying Gift ROI UK % 40% Average Purchases 1.65 items 1.55 items Across both markets, chocolates account for about 40% of the entire spend. Bord Bia Consumer Insight 2015

119 Brand Attribute Association - Explanation Why do image profiling? And what does it reveal? Some brands/companies get high scores for all attributes because they are better known brands/companies. Some attributes score high for all brands/companies because they are generic to all brands/companies. Image profiling strips away the noise to reveal the underlying image contours. Bord Bia Consumer Insight 2015

120 Associations with Countries ROI Irish British Belgian Swiss Italian German Is worth paying more for The best tasting chocolate Are truly different from other countries for chocolate The ultimate for premium chocolates Produces 'single origin' chocolate Produces chocolate from cocoa beans sourced from the best growing regions High levels of don t know associated with single origin & sourcing from best growing regions (45% & 32%) Bord Bia Consumer Insight 2015

121 Associations with Countries ROI IS WORTH PAYING MORE FOR THE BEST TASTING CHOCOLATE TRULY DIFFERENT FROM OTHER COUNTRIES ULTIMATE FOR PREMIUM CHOCOLATE Irish Irish British Belgian Swiss Belgian High levels of don t know associated with single origin & sourcing from best growing regions (45% & 32%) respondents are unsure / less familiar Each market believes they have the best tasting chocolate. For ROI, English chocolate is also rated favourably. Similar to 2011, the best tasting chocolate is perceived to be Irish, with Belgium and Switzerland epitomising premium chocolate. Bord Bia Consumer Insight 2015

122 Associations with Countries UK Irish British Belgian Swiss Italian German Is worth paying more for The best tasting chocolate Are truly different from other countries for chocolate The ultimate for premium chocolates Produces 'single origin' chocolate Produces chocolate from cocoa beans sourced from the best growing regions High levels of don t know associated with single origin & sourcing from best growing regions (46% & 38%) Bord Bia Consumer Insight 2015

123 Associations with Countries UK IS WORTH PAYING MORE FOR THE BEST TASTING CHOCOLATE TRULY DIFFERENT FROM OTHER COUNTRIES ULTIMATE FOR PREMIUM CHOCOLATE Irish British Belgian Belgian Swiss Belgian Bord Bia Consumer Insight 2015 High levels of don t know associated with single origin & sourcing from best growing regions (46% & 38%) respondents are unsure / less familiar Each market believes they have the best tasting chocolate. For UK, it is Belgian rather than Irish chocolate that is rated favourably. Similar to 2011, the best tasting chocolate is perceived to be British, with Belgium and Switzerland characterising premium chocolate.

124 Growth of Private Label The incidence of respondents shopping in Discounter stores, on the last occasion they bought boxed chocolates, in ROI is up from 4% in 2011 to 11% in The UK currently stands at 5% incidence. On the last occasion, 4% of Irish respondents purchased Discounter Private Label boxed chocolates and 2% bought Luxury Private Label. This stands at 1% and 3% respectively for the UK. Private Label boxed chocolates are viewed as mainstream and value led by both markets, with this view being more prevalent in ROI. In UK, Luxury Private Label is deemed to be most substitutable with Marks & Spencer boxed chocolates. In the UK they are more comfortable gifting Private Label boxed chocolates. Across both markets, although Private Label boxed chocolate are bought for others it is predominately for self. In contrast, Luxury Private Label boxed chocolates are mainly purchased for others. Bord Bia Consumer Insight 2015

125 Key Strengths

126 Evaluating the Last Purchase Drivers for Boxed Chocolates ROI The person I am buying for The taste or quality of the chocolates It is good value for money The brand of chocolate The type of chocolate The size of the box of chocolates How it looks/is packaged The occasion I am buying for There is a special offer/deal available It is a low price It is pre-wrapped It is expensive or premium Any Important 7% 7% 15% 14% 12% 23% 23% 19% 31% 31% 42% 40% Most Important 4% 3% 3% 4% 6% 5% 1% 2% 18% 13% 14% 25% In ROI, the recipient is the key driver, followed by the taste/quality of the chocolates, brand and value for money. Bord Bia Consumer Insight 2015 Key drivers are similar to 2011.

127 Evaluating the Last Purchase Drivers for Boxed Chocolates UK The person I am buying for It is good value for money The taste or quality of the chocolates The brand of chocolate The type of chocolate The size of the box of chocolates How it looks/is packaged There is a special offer/deal available It is a low price The occasion I am buying for It is expensive or premium It is pre-wrapped Any Important 8% 8% 15% 13% 13% 21% 17% 28% 38% 36% 35% 32% Most Important 7% 3% 2% 6% 6% 3% 2% 2% 14% 16% 12% 23% In UK, the top four drivers are consistent with the Irish market the recipient followed by the taste/quality of the chocolates, value for money and brand. UK respondents appear to be slightly more concerned with Value compared to quality/taste. Bord Bia Consumer Insight 2015 Key drivers are similar to 2011.

128 Drivers Last Occasion By Recipient - ROI Total Myself Spouse/ Partner Other Family Member(s) Work Colleague(s) Friend(s) (751) (124) (198) (205) (52) (133) The person I am buying for 42% 11% 51% 56% 29% 45% The taste or quality of the chocolates 40% 46% 38% 40% 37% 40% It is good value for money 31% 36% 29% 30% 35% 28% The brand of chocolate 31% 23% 38% 33% 21% 30% The type of chocolate 23% 20% 25% 28% 23% 19% The size of the box of chocolates 23% 18% 18% 26% 23% 26% How it looks/is packaged 19% 11% 17% 22% 27% 24% The occasion I am buying for 15% 11% 15% 15% 21% 15% There is a special offer/deal available 14% 20% 10% 12% 15% 13% It is a low price 12% 22% 8% 11% 13% 5% It is pre--wrapped 7% 5% 8% 8% 2% 10% It is expensive or premium 7% 7% 7% 6% 12% 5% It is fairly/ethically traded 4% 7% 4% 4% 2% 5% The country of origin of the chocolate 4% 5% 7% 2% 4% 3% It is organic 4% 9% 5% 0% 6% 2% In ROI, packaging matters for a work colleague. Q.26 And thinking back to this occasion when you bought the <<Q.8 ANSWER>> chocolates, which of the following factors were important to you in making the choice you did? Base: All ROI Respondents (751) Bord Bia Consumer Insight 2015

129 Drivers Last Occasion By Recipient - UK Total Myself Spouse/ Partner Other Family Member(s) Work Colleague(s) Friend(s) (752) (157) (194) (206) (53) (110) The person I am buying for 38% 12% 49% 53% 28% 43% It is good value for money 36% 28% 35% 39% 45% 39% The taste or quality of the chocolates 35% 32% 31% 38% 26% 45% The brand of chocolate 32% 31% 29% 37% 23% 35% The type of chocolate 28% 24% 29% 33% 17% 30% The size of the box of chocolates 21% 15% 22% 22% 21% 23% How it looks/is packaged 17% 8% 15% 22% 17% 24% There is a special offer/deal available 15% 20% 16% 13% 8% 15% It is a low price 13% 18% 9% 11% 11% 13% The occasion I am buying for 13% 8% 9% 16% 15% 19% It is expensive or premium 8% 8% 9% 8% 9% 5% It is pre--wrapped 8% 8% 8% 8% 8% 7% It is fairly/ethically traded 5% 7% 5% 4% 9% 1% The country of origin of the chocolate 4% 6% 5% 3% 8% 1% It is organic 3% 3% 5% 2% 8% 1% In UK, boxed chocolates for a work colleague centre more around value. Q.26 And thinking back to this occasion when you bought the <<Q.8 ANSWER>> chocolates, which of the following factors were important to you in making the choice you did? Base: All UK Respondents (752) Bord Bia Consumer Insight 2015

130 Purchase Drivers for Boxed Chocolates ROI The taste or quality of the chocolates 60% 26% 1% It is good value for money 56% 13% 2% The person I am buying for 56% 19% 2% The occasion I am buying for 45% 6% 2% The type of chocolate 43% 4% 2% The brand of chocolate or maker 41% 9% 4% The size of the box of chocolates 38% 3% 3% There is a special offer/deal available 33% 4% 3% Attractiveness of the packaging 30% 3% 4% It is a low price 21% 5% 7% It is pre-wrapped 13% 1% 13% The healthier choice 13% 2% 9% The chocolates are handmade 12% 1% 5% It is fairly/ethically traded 12% 2% 3% It is expensive or premium 9% 2% 5% The country of origin of the chocolate 9% 1% 11% It is organic 6% 1% 12% 'Single origin' chocolate 3% * 14% Quality of the chocolates, recipient and value are the key hygiene factors. Q.13 Which of the following factors are important to you when buying a box of chocolates? Q.14 And which of these is generally the most important to you when buying a box of chocolates? Q.15 And which of these is generally the least important to you when buying a box of chocolates? Base: All ROI Respondents (751) Any Important Most Important Least Important Bord Bia Consumer Insight 2015

131 Purchase Drivers for Boxed Chocolates UK Any Important Most Important The taste or quality of the chocolates 59% 27% 2% It is good value for money 57% 14% 2% The person I am buying for 55% 17% 2% The type of chocolate 51% 6% 2% The occasion I am buying for 39% 6% 2% The size of the box of chocolates 38% 3% 2% The brand of chocolate or maker 38% 6% 3% There is a special offer/deal available 32% 4% 3% Attractiveness of the packaging 29% 2% 2% It is a low price 20% 7% 9% It is fairly/ethically traded 12% 2% 3% It is pre-wrapped 9% 1% 10% The chocolates are handmade 8% 1% 6% It is expensive or premium 7% 1% 4% The healthier choice 7% 1% 15% It is organic 5% 1% 14% The country of origin of the chocolate 5% * 9% 'Single origin' chocolate 3% 1% 10% Least Important Q.13 Which of the following factors are important to you when buying a box of chocolates? Q.14 And which of these is generally the most important to you when buying a box of chocolates? Q.15 And which of these is generally the least important to you when buying a box of chocolates? Base: All UK Respondents: 752 Bord Bia Consumer Insight 2015

132 Brand Attribute Association ROI - I Thorntons Lindt Milk Tray Ferrero Black Magic Private Label Is a low priced brand Their chocolates are handmade A brand you often see on special offer Good value for money You tend to see this brand a lot of places An international brand A luxury brand A popular or well liked brand An expensive or premium brand A brand that has a range of sizes to suit my needs Q.16 Now looking at this list of brand of boxed chocolate, which of these brands do you think the following factors apply to? Q.21 Looking at this list below of boxed chocolate brands, which of these brands (if any) do you think the following statements apply to? Base: All ROI Respondents: 751 Bord Bia Consumer Insight 2015

133 Brand Attribute Association ROI - II Thorntons Lindt Milk Tray Ferrero Black Magic Private Label A sophisticated brand I know a lot about this brand The best tasting chocolates brands I would like to know more about this brand A quality brand Has a wide variety of flavours/types of chocolates A modern brand A brand that caters for all occasions Have attractive/premium packaging Q.16 Now looking at this list of brand of boxed chocolate, which of these brands do you think the following factors apply to? Q.21 Looking at this list below of boxed chocolate brands, which of these brands (if any) do you think the following statements apply to? Base: All ROI Respondents: 751 Bord Bia Consumer Insight 2015

134 Brand Attribute Association ROI - III Thorntons Lindt Milk Tray Ferrero Black Magic Private Label An innovative brand A brand I can relate to A brand that understands my needs A suitable product for every occasion I would always notice this brand on shelf Uses organic chocolate A brand I m proud to be associated with A brand with strong ethical sourcing credentials A brand I trust Q.16 Now looking at this list of brand of boxed chocolate, which of these brands do you think the following factors apply to? Q.21 Looking at this list below of boxed chocolate brands, which of these brands (if any) do you think the following statements apply to? Base: All ROI Respondents: 751 Bord Bia Consumer Insight 2015

135 Brand Attribute Association UK - I Thorntons Lindt Milk Tray Ferrero Guylian Hotel Chocolat Private Label A luxury brand An expensive or premium brand A sophisticated brand Is a low priced brand Good value for money Has a wide variety of flavours/types of chocolates A popular or well liked brand An international brand You tend to see this brand a lot of places A suitable product for every occasion Q.16 Now looking at this list of brand of boxed chocolate, which of these brands do you think the following factors apply to? Q.21 Looking at this list below of boxed chocolate brands, which of these brands (if any) do you think the following statements apply to? Base: All UK Respondents: 752 Bord Bia Consumer Insight 2015

136 Brand Attribute Association UK - II Thorntons Lindt Milk Tray Ferrero Guylian Hotel Chocolat Private Label A modern brand A brand you often see on special offer Their chocolates are handmade I would like to know more about this brand An innovative brand Uses organic chocolate The best tasting chocolates brands Have attractive/premium packaging A quality brand Q.16 Now looking at this list of brand of boxed chocolate, which of these brands do you think the following factors apply to? Q.21 Looking at this list below of boxed chocolate brands, which of these brands (if any) do you think the following statements apply to? Base: All UK Respondents: 752 Bord Bia Consumer Insight 2015

137 Brand Attribute Association UK - III A brand that has a range of sizes to suit my needs Thorntons Lindt Milk Tray Ferrero Guylian Hotel Chocolat Private Label I know a lot about this brand A brand that caters for all occasions I would always notice this brand on shelf A brand I trust A brand with strong ethical sourcing credentials A brand that understands my needs A brand I can relate to A brand I m proud to be associated with Q.16 Now looking at this list of brand of boxed chocolate, which of these brands do you think the following factors apply to? Q.21 Looking at this list below of boxed chocolate brands, which of these brands (if any) do you think the following statements apply to? Base: All UK Respondents: 752 Bord Bia Consumer Insight 2015

138 Brand Associations With Luxury (ex Irish Brands) ROI Premium 30 Premium High End Premium Good Value Lindt Expensive 0 Thorntons Ferrero Black Magic Cheap -10 Private Label -20 Milk Tray Mainstream More Upmarket Mainstream Low End Mainstream Bord Bia Consumer Insight 2015

139 Brand Associations With Luxury (ex Irish Brands) GB Premium 30 Premium High End Premium Good Value 20 Hotel Chocolat 10 Expensive 0 Lindt Guylian Cheap Thorntons Ferrero Private Label -10 Milk Tray -20 Mainstream More Upmarket Mainstream Low End Mainstream Bord Bia Consumer Insight 2015

140 Understanding Purchase Behaviour

141 Familiarity With Recipient s Preferences ROI UK Well (9-10) Not well (1-4) Q.39 And how well do you know this person s taste/preferences in terms of boxed chocolates? Please give your answer on a scale of 1 to 10 where 1 means not at all well and 10 means extremely well. Base: All ROI Respondents who purchased chocolates for another person: 612 / All UK Respondents who purchased chocolates for another person: 577 Bord Bia Consumer Insight 2015

142 Knowledge of Boxed Chocolates Know very little (1-4) % Know a lot (9-10) % ROI UK 15 9 Q.37 Please select the number which best describes your approach to buying a box of chocolates for someone else when you are deciding which box of chocolates to buy, would you say.? Base: All ROI Respondents: 751 / All UK Respondents: 752 Bord Bia Consumer Insight 2015

143 The Personal Appeal of Boxed Chocolates Not at all appealing (1-4) % Very appealing (9-10) % ROI UK Q.38a To what extent do you personally find boxed chocolates appealing, or not? Please give your answer on a scale of 1 to 10 where 1 means you do not find boxed chocolates at all appealing and 10 means you find boxed chocolates very appealing. Base: All ROI Respondents: 751 / All UK Respondents: 752 Bord Bia Consumer Insight 2015

144 Understanding Purchase Behaviour (ex Irish Brands) UK Category Comfort Comfortable with Category; not familiar with Recipient Comfortable with Category & Recipient 8.00 Less knowledgeable about the recipient Luxury PL After Eight Green & Black M&S Discounter PL Black Lindt Magic Thorn Other Hotel Chocolat -ton s Lindt Lindor More Guylian knowledgeable about the Milk Ferrero recipient Tray Dairy Box Uncomfortable with Category; not familiar with Recipient Category Discomfort Uncomfortable with Category; familiar with Recipient Bord Bia Consumer Insight 2015

145 Consideration of Various Channels for Boxed Chocolates Purchase ROI Total - ROI Consideration Visit most often ROI % % Supermarket Discounter Specialist Chocolate Stores 28 7 Convenience Store 27 3 Store Most Often Visited % Tesco 62 Aldi 42 Butlers Chocolate Café 33 Spar/Eurospar* 52 Newsagents/local corner shop 25 2 Airport 25 3 Department store 17 3 Petrol station 14 1 Retail village/designer outlet 9 1 Online 5 1 Q.11 Which of the following channels or store types would you consider visiting when buying a box of chocolates? Q.12 And which of these would you visit most often when buying a box of chocolates? Q.12a And which <BRING IN CODE FROM Q.12> would you visit most often when buying a box of chocolates? Base: All ROI Respondents: 751/ All ROI Respondents who visit a supermarket/discounter/convenience store/specialist store most often: 653 *Caution: Small Base Size Supermarkets (and Tesco) are the top choice, Discounters perform well in ROI, although this will challenge manufactures. Discounters have a different strategy and approach to mainstream retailers, and retailers such as Tesco look to influence and suppress the opportunities Aldi (& Lidl) can get Bord Bia Consumer Insight 2015

146 Consideration of Various Channels for Boxed Chocolates Purchase UK Total - UK Consideration Visit most often % % Supermarket Specialist Chocolate Stores 38 9 Discounter 32 5 Department store 24 3 Convenience Store 23 2 Newsagents/local corner shop 23 3 UK Store Most Often Visited % Tesco 38 Thorntons 61 Aldi 37 n/a Spar/Eurospar* 53 *Caution: Small Base Size Online 17 3 Retail village/designer outlet 14 1 Airport 14 1 Petrol station 12 1 Q.11 Which of the following channels or store types would you consider visiting when buying a box of chocolates? Q.12 And which of these would you visit most often when buying a box of chocolates? Q.12a And which <BRING IN CODE FROM Q.12> would you visit most often when buying a box of chocolates? Base: All UK Respondents: 752/ All UK Respondents who visit a supermarket/discounter/convenience store/specialist store most often Similarly, supermarket is the top choice. Specialist chocolate stores is second, followed by Discounter. Bord Bia Consumer Insight 2015

147 Decision on Last Occasion Planned Vs. Impulse I knew which box of chocolates to buy before I entered the store 35% Brand purchased on last occasion (n=262) Milk Tray 21% Ferrero 18% Lindt Lindor 9% Not sure 3% (751) (752) I decided which box of chocolates to buy when I looked at the products in store 62% Brand purchased on last occasion (n=465) Milk Tray 18% Ferrero 12% After Eight 8% I knew which box of chocolates to buy before I entered the store 25% Brand purchased on last occasion (n=187) Milk Tray 22% Ferrero 18% Thorntons 12% Not sure 7% I decided which box of chocolates to buy when I looked at the products in store 68% Brand purchased on last occasion (n=513) Thorntons 26% Milk Tray 15% Ferrero 8% Q.41 Again thinking about the last occasion when you have bought <<Q.8 ANSWER>> boxed chocolates, which of the following statements do you agree with the most? Base: All ROI Respondents: 751/ All UK Respondents:752 Bord Bia Consumer Insight 2015

148 Associations with Luxury Boxed Chocolates - Top 10 Mentions ROI UK Quality Great taste Quality is more important than quantity For very special occasions For gifting Handmade Expensive Mixture of flavours in the box Given to impress someone For my family 52% 47% 44% 44% 43% 39% 32% 32% 26% 23% 52% 48% 43% 43% 39% 35% 32% 29% 25% 21% Are the lines blurred between luxury and everyday? Q.38 In your view, which of the following terms / words best describe luxury boxed chocolate? Please choose all that apply Base: All ROI Respondents: 751 / All UK Respondents: 752 Bord Bia Consumer Insight 2015

149 Associations with Luxury Boxed Chocolates - Qualitative - ROI Bord Bia Consumer Insight 2015

150 Associations with Luxury Boxed Chocolates - Qualitative - UK Bord Bia Consumer Insight 2015

151 Brand & Packaging Evaluation

152 On shelf stand out (UK) Purchase Behaviour Packaging Stand Out UK Store Some of the packaging that didn t perform particularly well and the discussion groups was found to have much better stand out on shelf. Communicating clear benefits to the customers via boxed shape, packaging and visual cues. This stand out offers an opportunity for the brand to be considered. Waitrose Manchester

153 On shelf stand out (Ireland) Purchase Behaviour Packaging Stand Out Irish Store When looking at a shelf space in Ireland, the balance of colours and packaging types is somewhat different. Irish brands predominate with these commonly associated features gold, bows, tags, etc. These differences (along with other factors such as brand power) combined with the demands of UK consumers, are important when considering maximising the impact for UK sales. Supervalu Blackrock

154 On shelf stand out Private Label (Ireland) Purchase Behaviour Packaging Stand Out Marks & Spencer Irish Store If a bay has all the same products/ packing style, it will look very attractive. However, when competitors are also included on this bay (such as the Supervalu example), stand out will be tested. M& S Blackrock

155 The Positioning of the Brand Mainstream vs. Specialist Different brands may have different attitudes towards the mainstream grocery channel. Some may actively be pursuing it. Others may not want to be associated with that channel. Either approach has challenges: Mainstream These customers are likely to be looking for a convenient, safe purchase when arriving in store. Competing in the grocery aisle shelf stand out is critical it is very crowded. Customers are less likely to want to take a risk so packaging cues need to be mainstream. Overtly premium may alienate so an everyday approach may be more appropriate. Specialist These customers will have made an effort to reach this store. There is some greater scope for ultra premium cues such as alternative box sizes, minimalist packaging. There may be more potential to create an experience in the niche environment product layout, advice, tastings, experimental design are all most possible. There is potentially also more scope to stretch the customer in terms of selections, designs and limited edition products. Bord Bia Consumer Insight 2015

156 Packaging Approaches Competitors (UK) Ultra premium Brand Led Packaging Positioning only makes sense in the context of understand the brand positioning or the experience Premium / Mainstream Brand Led Packaging Product familiarity is such that consumer can engage immediately with the brand A key question for the Irish brands is to consider is which approach to packaging are they taking? Packaging Led Packaging In the absence of strong brand / needs based understanding, the packaging has to do the heavy lifting Needs Based Packaging Buyers can understand the purpose of the product (though assisted by brand values)

157 Criteria of Packaging Evaluation - Purchase Product Visualisation Risk Profile Opening Experience Pack Shape/ Size Packaging Accessories Shelf stand out The extent to which the packaging shape and size matches expected norms for their specific needs. The ability of the product to deliver appropriate cues either through pictures or the visibility of the actual product. The features of the packaging such as ribbons, tags etc. The comfort of the individual in making a decision based on the cues that the packaging provides. How well the product stands out on shelf when mixing with the competition. When the product is open, how do people feel? Bord Bia Consumer Insight 2015

158 Box Design

159 Box Designs Shown Bord Bia Consumer Insight 2015

160 Box Design Preference Not At All Familiar With Brand Vs. Very Familiar With Brand - ROI Preferred Box: Not at all familiar with brand Very familiar with brand Nice/Pretty/Attractive packaging/ Wrapping/Design 23% Elegant/Luxurious looking/ Quality Product 17% Like the tag/menu/ticket 11% Nice/Pretty/Attractive packaging/ Wrapping/Design 37% Elegant/Luxurious looking/ Quality Product 16% Like the tag/menu/ticket 16% Looks like a gift/present 10% You can clearly see what you are getting/ can see inside/clearly see contents 8% Familiarity/Know what to expect 9% Like the ribbon/bow 8% Attractive packaging is key cue. Needs to have on-shelf stand out appeal. Q.43 Now please look carefully at each of these designs for boxes of chocolates and think about the last occasion that you purchased boxed chocolates. Imagine that you are not at all familiar with the brand / name of the chocolate company. Which one design of box do you prefer the most? Q.43a Please look again at each of these designs for boxes of chocolates, but this time imagine that you are very familiar with the brand / name of the chocolate company, for example the <<Q.8 ANSWER>> chocolates you bought on that last occasion?. Which one design of box do you prefer the most? Q.46 And why was this your preferred design of box <bring in picture chosen> for a brand that you are very familiar with? Base: All ROI Respondents:751/ All ROI Respondents who only preferred Design 1 for a brand they were unfamiliar with: 100/ All ROI Respondents who only preferred Design 1 for a brand they were very familiar with: 101 Bord Bia Consumer Insight 2015

161 Box Design Preference Not At All Familiar With Brand Vs. Very Familiar With Brand - UK Preferred Box: Not at all familiar with brand Very familiar with brand Nice/Pretty/Attractive packaging/ Wrapping/Design 23% Elegant/Luxurious looking/ Quality Product 19% Like the tag/menu/ticket 12% Nice/Pretty/Attractive packaging/ Wrapping/Design 21% Elegant/Luxurious looking Quality Product 19% Looks like a gift/present 13% Looks like a gift/present 8% You can clearly see what you are getting/ can see inside/clearly see contents 6% Familiarity/Know what to expect 13% Like the tag/menu/ticket 10% Attractive packaging is key cue. Needs to have on-shelf stand out appeal. Q.43 Now please look carefully at each of these designs for boxes of chocolates and think about the last occasion that you purchased boxed chocolates. Imagine that you are not at all familiar with the brand / name of the chocolate company. Which one design of box do you prefer the most? Q.43a Please look again at each of these designs for boxes of chocolates, but this time imagine that you are very familiar with the brand / name of the chocolate company, for example the <<Q.8 ANSWER>> chocolates you bought on that last occasion?. Which one design of box do you prefer the most? Q.46 And why was this your preferred design of box <bring in picture chosen> for a brand that you are very familiar with? Base: All UK Respondents:752/ All UK Respondents who only preferred Design 1 for a brand they were unfamiliar with: 102/ All UK Respondents who only preferred Design 1 for a brand they were very familiar with: 100 Bord Bia Consumer Insight 2015

162 Least Favourite Box Design ROI Reasons Why 37% Plain/Bland/Boring/Uninteresting/Dull 54% Unattractive/Does not appeal to me 13% Cannot see the chocolates/contents/no picture 10% Not enough information given/label too small 6% Looks cheap 6% Q.45 And which of these design of boxes is your least favourite? Q.47 And why was this your least preferred box design of box <bring in picture chosen>? Base: All ROI Respondents: 751 / All ROI Respondents who identified design 6 as their least favourite design: 281 Bord Bia Consumer Insight 2015