Ice Cream in Japan. Industry Profile. Reference Code: Publication date: November 2008

Transcription

1 Ice Cream in Japan Industry Profile Reference Code: Publication date: November Datamonitor USA 245 Fifth Avenue 4th Floor New York, NY USA Datamonitor Europe Charles House Finchley Road London NW3 5JJ United Kingdom Datamonitor Germany Kastor & Pollux Platz der Einheit Frankfurt Deutschland Datamonitor Asia Pacific Level 46, 2 Park Street Sydney, NSW 2000 Australia t: f: e: usinfo@datamonitor.com t: f: e: eurinfo@datamonitor.com t: f: e: deinfo@datamonitor.com t: f: e: apinfo@datamonitor.com

2 ABOUT DATAMONITOR ABOUT DATAMONITOR Datamonitor is a leading business information company specializing in industry analysis. Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial Services. The company also advises clients on the impact that new technology and ecommerce will have on their businesses. Datamonitor maintains its headquarters in London, and regional offices in New York, Frankfurt, and Hong Kong. The company serves the world s largest 5000 companies. Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and pricing, competitors and products. Our experts then interpret this data to produce detailed forecasts and actionable recommendations, helping you create new business opportunities and ideas. Our series of company, industry and country profiles complements our premium products, providing top-level information on 10,000 companies, 2,500 industries and 50 countries. While they do not contain the highly detailed breakdowns found in premium reports, profiles give you the most important qualitative and quantitative summary information you need - including predictions and forecasts. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect. Datamonitor (Published November 2008) Page 2

3 EXECUTIVE SUMMARY EXECUTIVE SUMMARY Market Value The Japanese ice cream market remained at a value of $2.8 billion in Market Value Forecast In 2013, the market is forecast to have a value of $2.9 billion, an increase of 1.2% since Market Volume The market shrank by 0.2% in 2008 to reach a volume of million liters. Market Volume Forecast In 2013, the market is forecast to have a volume of million liters, an increase of 0.1% since Market Segmentation I Sales of impulse ice cream generated 57.8% of the market's value. Market Segmentation II Japan generates 25.9% of the Asia-Pacific ice cream market's revenues. Market Share General Mills dominates the market with a 39.7% share of the market's value. Distribution Supermarkets and hypermarkets distribute the largest share of the market, accounting for 35.8% of the market's value. Datamonitor (Published November 2008) Page 3

4 CONTENTS TABLE OF CONTENTS EXECUTIVE SUMMARY 3 CHAPTER 1 Market Overview Market Definition Research Highlights Market Analysis 8 CHAPTER 2 Market Value 9 CHAPTER 3 Market Volume 10 CHAPTER 4 Market Segmentation I 11 CHAPTER 5 Market Segmentation II 12 CHAPTER 6 Market Share 13 CHAPTER 7 Five Forces Analysis Summary Buyer Power Supplier Power New Entrants Substitutes Rivalry 21 CHAPTER 8 Leading Companies Ezaki Glico 22 Datamonitor (Published November 2008) Page 4

5 CONTENTS 8.2 General Mills, Inc Snow Brand Milk Products Co., Ltd. 28 CHAPTER 9 Distribution 30 CHAPTER 10 Market Forecasts Market Value Forecast Market Volume Forecast 32 CHAPTER 11 Macroeconomic Indicators 33 CHAPTER 12 Appendix Methodology Related Datamonitor Research 36 Datamonitor (Published November 2008) Page 5

6 CONTENTS LIST OF TABLES Table 1: Japan Ice Cream Market Value: $ billion, (e)...9 Table 2: Japan Ice Cream Market Volume: Liters million, (e)...10 Table 3: Japan Ice Cream Market Segmentation I: % Share, by Value, 2008(e)...11 Table 4: Japan Ice Cream Market Segmentation II: % Share, by Value, 2008(e)...12 Table 5: Table 6: Table 7: Japan Ice Cream Market Share: % Share, by Value, 2008(e)...13 Key Facts: Ezaki Glico...22 Key Financials: Ezaki Glico...23 Table 8: Key Facts: General Mills, Inc Table 9: Table 10: Key Financials: General Mills, Inc...27 Key Facts: Snow Brand Milk Products Co., Ltd...28 Table 11: Key Financials: Snow Brand Milk Products Co., Ltd Table 12: Japan Ice Cream Distribution: % Share, by Value, 2008(e)...30 Table 13: Japan Ice Cream Market Value Forecast: $ billion, Table 14: Japan Ice Cream Market Volume Forecast: Liters million, Table 15: Japan Size of Population (million), Table 16: Japan GDP (Constant 2000 Prices, $ billion), Table 17: Japan Inflation, Table 18: Japan Exchange Rate, Datamonitor (Published November 2008) Page 6

7 MARKET OVERVIEW CHAPTER 1 MARKET OVERVIEW 1.1 Market Definition The ice cream market consists of the total revenues generated through the sale of artisanal ice cream, frozen yoghurt, impulse ice cream and take-home ice cream. Any currency conversions used in the creation of this report have been calculated using constant 2007 annual average exchange rates. For the purpose of this report Asia-Pacific comprises Australia, China, Japan, India, Singapore, South Korea and Taiwan. 1.2 Research Highlights The Japanese ice cream market generated total revenues of $2.8 billion in 2008, representing a compound annual rate of change (CARC) of -0.2% for the period spanning Market consumption volumes decreased with a CARC of -0.7% between , to reach a total of million liters in The impulse ice cream segment was the market's most lucrative in 2008, generating total revenues of $1.6 billion, equivalent to 57.8% of the market's overall value. The performance of the market is forecast to recover, with an anticipated CAGR of 0.2% for the five-year period , which is expected to drive the market to a value of $2.9 billion by the end of Datamonitor (Published November 2008) Page 7

8 MARKET OVERVIEW 1.3 Market Analysis The Japanese ice cream market saw a slight decline during the period In the forecast period towards 2013, the market is expected to grow slowly but steadily, with the growth rate largely remaining at 0.3%. The Japanese ice cream market generated total revenues of $2.8 billion in 2008, representing a compound annual rate of change (CARC) of -0.2% for the period spanning In comparison, the Chinese and Indian markets grew with compound annual growth rates (CAGRs) of 8.6% and 7.1%, respectively, over the same period, to reach respective values of $4.4 billion and $13.8 billion in Market consumption volumes decreased with a CARC of -0.7% between , to reach a total of million liters in The market's volume is expected to rise to million liters by the end of 2013, representing a CAGR of 0% for the period. The impulse ice cream segment was the market's most lucrative in 2008, generating total revenues of $1.6 billion, equivalent to 57.8% of the market's overall value. The take-home ice cream segment contributed revenues of $1.2 billion in 2008, equating to 40.8% of the market's aggregate revenues. The performance of the market is forecast to recover, with an anticipated CAGR of 0.2% for the five-year period , which is expected to drive the market to a value of $2.9 billion by the end of Comparatively, the Chinese and Indian markets will grow with CAGRs of 8.8% and 8.9%, respectively, over the same period, to reach respective values of $6.8 billion and $21.1 billion in Datamonitor (Published November 2008) Page 8

9 MARKET VALUE CHAPTER 2 MARKET VALUE The Japanese ice cream market remained at a value of $2.8 billion in The compound annual rate of change of the market in the period was - 0.2%. Table 1: Japan Ice Cream Market Value: $ billion, (e) Year $ billion Ja billion % Growth % % % 2008(e) % CAGR, : -0.2% Figure 1: Japan Ice Cream Market Value: $ billion, (e) $ billion % Growth $ billion % 0.0% -0.1% -0.2% -0.3% -0.4% -0.5% -0.6% -0.7% % Growth Datamonitor (Published November 2008) Page 9

10 MARKET VOLUME CHAPTER 3 MARKET VOLUME The Japanese ice cream market shrank by 0.2% in 2008 to reach a volume of million liters. The compound annual rate of change of the market volume in the period was -0.7%. Table 2: Japan Ice Cream Market Volume: Liters million, (e) Year Liters million % Growth % % % 2008(e) % CAGR, : -0.7% Figure 2: Japan Ice Cream Market Volume: Liters million, (e) Liters million % Growth Liters million % -0.2% -0.4% -0.6% -0.8% -1.0% -1.2% -1.4% -1.6% -1.8% -2.0% % Growth Datamonitor (Published November 2008) Page 10

11 MARKET SEGMENTATION I CHAPTER 4 MARKET SEGMENTATION I Sales of impulse ice cream generated 57.8% of the Japanese ice cream market's value. In comparison, sales of take-home ice cream accounted for a further 40.8% of the market's revenues. Table 3: Category Japan Ice Cream Market Segmentation I: % Share, by Value, 2008(e) % Share Impulse ice cream 57.80% Take-home ice cream 40.80% Frozen yogurt 1.00% Artisanal ice cream 0.40% Total 100.0% Figure 3: Japan Ice Cream Market Segmentation I: % Share, by Value, 2008(e) Take-home ice cream 40.8% Frozen yogurt 1.0% Impulse ice cream 57.8% Artisanal ice cream 0.4% Datamonitor (Published November 2008) Page 11

12 MARKET SEGMENTATION II CHAPTER 5 MARKET SEGMENTATION II Japan generates 25.9% of the Asia-Pacific ice cream market's revenues. China is the largest ice cream market in the region accounting for 40.5% of the overall value. Table 4: Geography Japan Ice Cream Market Segmentation II: % Share, by Value, 2008(e) % Share China 40.50% Rest of Asia-Pacific 33.60% Japan 25.90% Total 100.0% Figure 4: Japan Ice Cream Market Segmentation II: % Share, by Value, 2008(e) Japan 25.9% China 40.5% Rest of Asia- Pac if ic 33.6% Datamonitor (Published November 2008) Page 12

13 MARKET SHARE CHAPTER 6 MARKET SHARE General Mills dominates the Japanese ice cream market with a 39.7% share of the market's value. Ezaki Glico accounts for a further 12.2% of the market's revenues. Table 5: Company Japan Ice Cream Market Share: % Share, by Value, 2008(e) % Share Other 41.60% General Mills, Inc % Ezaki Glico 12.20% Snow Brand Milk Products Co., Ltd. 6.50% Total 100.0% Figure 5: Japan Ice Cream Market Share: % Share, by Value, 2008(e) General Mills, Inc. 39.7% Ezaki Glico 12.2% Snow Brand Milk Products Co., Ltd. 6.5% Other 41.6% Datamonitor (Published November 2008) Page 13

14 FIVE FORCES ANALYSIS CHAPTER 7 FIVE FORCES ANALYSIS 7.1 Summary Figure 6: Forces Driving Competition in the Japanese Ice Cream Market Intensity of competition Weak Strong Degree of rivalry Buyer Pow er Supplier Pow er Substitutes New Entrants Score for each force is mean of scores for its drivers. Total area & color indicates intensity of competition overall. The Japanese ice cream market is generally high volume-low margin. Food retailers are the main buyers, and may exert strong buyer power, if they are large chains. Ice cream companies are able to source their raw material inputs from a relatively small number of suppliers, additionally the lack of suitable substitutes for major ingredients and price control for milk products mean that supplier power is moderate. It is possible to enter this market on a small-scale. However, the existence of some strong brands, market regulations and the scale economies associated with high-volume production facilities prevent the threat of new entrants from becoming a significant factor. High exit costs and a declining market in recent years contribute to the moderate degree of rivalry that characterizes this market. Datamonitor (Published November 2008) Page 14

15 FIVE FORCES ANALYSIS 7.2 Buyer Power Figure 7: Drivers of Buyer Power in the Japanese Ice Cream Market Strength of buyer power Weak Strong Product dispensability Buyer independence Buyer size Oligopsony threat Low -cost sw itching Backw ards integration Undifferentiated product Financial muscle Tendency to sw itch Price sensitivity Scores: 1= weak driver...5=strong driver The Japan ice cream market will be analyzed by taking ice cream manufacturers as players, and supermarkets and hypermarkets as the main buyers, since these distribute the largest single share of the market's value (around 36%). Some of the large supermarket chains have integrated backwards and successfully introduced a wide range of private label products. This is particularly the case in the top selling take-home sector. The likelihood of backward integration boosts the buyer power and puts the higher-margin branded products of the leading market players under pressure. Retailers themselves are unlikely to be swayed by brand loyalty, and price sensitivity will be high. However, this driver of buyer power will be mitigated where consumers are loyal to particular brands: retailers will need to stock these products in order to meet their own customers' demand. Ice cream is generally not a significant part of a food retailer's business, which reduces the reliance upon sales of these items, and increases buyer power, especially for the larger supermarkets and hypermarkets, with their diverse product ranges. Manufacturers of ice cream can differentiate their products quite strongly, (by brand, flavour and colour, calorie content and so on) and the fact that major buyers generally need to offer a wide range of products for their own customers, should also tend to weaken buyer power. Overall, buyer power within the Japanese ice cream market is assessed as moderate. Datamonitor (Published November 2008) Page 15

16 FIVE FORCES ANALYSIS 7.3 Supplier Power Figure 8: Drivers of Supplier Power in the Japanese Ice Cream Market Strength of supplier power Weak Strong Forw ard integration Differentiated input Supplier size Oligopoly threat Sw itching costs Importance of quality/cost Player independence No substitute inputs Player dispensability Scores: 1= weak driver...5=strong driver Ice cream, a flavored frozen food, is made up of milkfat or butterfat, milk solids, sweeteners, stabilizers, emulsifiers and water. As long-term supply contracts are uncommon, dairy products are usually purchased on the open market. In this case ice cream companies have little control over prices, and often use techniques such as hedging to mitigate the impact of price fluctuations. Large ice cream manufacturing firms may have a strong negotiating position and the widespread absence of fixed-term agreements means that the cost of switching suppliers is low. The Japanese dairy production sector is tightly controlled, however, in response to tight stocks, the government may choose to allow dairy imports above the established WTO Tariff Rate Quota (TRQ). Supplier power is boosted somewhat by the presence of larger dairies and companies, who sell milk fat and concentrates in bulk to the ice cream industry, as well as companies who supply trademarked ingredients. The substitution of milk protein concentrate for milk is possible but will result in lower quality. Leading players in the ice cream market must maintain product quality if they are to maintain their brand equity in the long term; their need to source raw materials of appropriate quality boosts the strength of the suppliers that can offer these. Datamonitor (Published November 2008) Page 16

17 FIVE FORCES ANALYSIS Packaging is an important input in this market and some market players may enter into long-term contracts with their suppliers, which also increases supplier power. It may be possible to find substitutes for some minor ingredients such as flavorings in the production of ice cream but there are no satisfactory substitutes for major ingredients like milk and sugar. This also tends to strengthen supplier power, which is moderate overall. Datamonitor (Published November 2008) Page 17

18 FIVE FORCES ANALYSIS 7.4 New Entrants Figure 9: Factors Influencing the Likelihood of New Entrants in the Japanese Ice Cream Market Likelihood of new entrants Weak Low -cost sw itching Strong 5 Market grow th 4 3 Undifferentiated product Weak brands 2 1 Scale unimportant 0 Little IP involved Low fixed costs Suppliers accessible Distribution accessible Little regulation Incumbents acquiescent Scores: 1= weak driver...5=strong driver Entry to the Japanese ice cream market may be achieved by starting up a new company, by diversifying an existing company's operations into the manufacture of ice cream products, acquiring an existing company, or, in the case of foreign producers, by beginning to export to the country. A joint venture with a local player may form a beneficial strategy, due to the market specifics and cultural differences. Individual makers of gourmet ice cream can appeal to customers by emphasizing their use of natural ingredients and the high quality of products on offer or special flavours. Such specialty or 'home-made' ice creams can be sold at higher prices and any initial investment in raw materials, production equipment, etc can be recouped by adding a good margin to the price of the end-product; this may suggest a good entry strategy for a small company. Larger companies, however, produce not only premium ice cream but also massmarketed products. Here, margins may be lower. The other limitation on entering this market concerns distribution channels. Fresh ice cream is by nature difficult to transport and the storage cost is rather high. Producers need to distribute their ice cream widely, which generally involves channels such as supermarkets. Also, the manufacturers need to persuade supermarkets, specialist stores, and other businesses to stock their products. Datamonitor (Published November 2008) Page 18

19 FIVE FORCES ANALYSIS Sales space is a vital but finite resource, and it may be difficult to persuade retailers to allocate it to a new player's ice cream, especially in highly competitive food retail markets. Higher storage and distribution costs motivate players to sell their stock and cut the storage costs down which increases rivalry and reduces market accessibility. The market has been in decline over the last few years, which also makes it less attractive to new companies. Manufacturers of ice cream can differentiate their products quite strongly. To hold on to their market shares, they must be willing to push out new flavors and replace them quickly. More demanding consumers want both to experiment with new taste and to pay a higher price for more sophisticated products. The strong differentiation of the ice cream market makes it harder for newcomers to attract buyers away from the existing companies and diminishes the likelihood of new entrants. The dairy sector in many Asia-Pacific countries is tightly controlled; already very sensitive to food safety, a large number of Asia-Pacific consumers have been inundated with press reporting about melamine-tainted dairy products from China. In Japan, the Ministry of Health, Labor and Welfare (MHLW) issued an import inspection order requiring companies to test for possible melamine contamination in foods that use Chinese dairy ingredients. This is leading to a greater emphasis on country of origin in consumer marketing campaigns and is influencing purchasing decisions by consumers and food ingredient buyers. More market regulations increase manufacturing costs, and make it harder for new companies to enter the market. Additionally, newcomers may be discouraged by the presence of large incumbents (General Mills) and local players such as: Ezaki Glico and Snow Brand Milk Products, benefiting from scale economies and brand recognition. On the other hand the low cost of switching between existing market players means that retailers are likely to change their preferences to new companies and moderate levels of proprietary products and knowledge in the market are convenient for new players. Overall, there is a moderate likelihood of new entrants within the Japanese ice cream market. Datamonitor (Published November 2008) Page 19

20 FIVE FORCES ANALYSIS 7.5 Substitutes Figure 10: Factors Influencing the Threat of Substitutes in the Japanese Ice Cream Market Threat of substitutes Weak Strong Low -cost sw itching Beneficial alternative Cheap alternative Scores: 1= weak driver...5=strong driver From the point of view of consumers, there are a number of substitutes for commercially-bought ice cream. These include frozen desserts such as sorbets and gelati, confectionery, and smoothies. Retailers, aiming to meet consumer demand, will tend to stock all these kinds of substitutes. From the retailers' point of view, they may offer benefits such as higher margins (e.g. premium-priced desserts), cheaper storage and longer shelf-life (e.g. confectionery does not need to be stored in a freezer). Switching costs are not very high. However, most food retailers are likely to continue selling ice cream as a small part of their product range, and the threat of substitutes is assessed as moderate. Datamonitor (Published November 2008) Page 20

21 FIVE FORCES ANALYSIS 7.6 Rivalry Figure 11: Drivers of Degree of Rivalry in the Japanese Ice Cream Market Degree of rivalry Weak Strong Zero-sum game? Storage costs Similarity of players Competitor size Number of players Low -cost sw itching Undifferentiated product Lack of diversity Low fixed costs Hard to exit Easy to expand Scores: 1= weak driver...5=strong driver The Japanese ice cream market is fragmented, dominated by three large local players, namely Ezaki Glico and Snow Brand Milk Products and international player General Mills. Together they claim market shares of about 59% of the total market s value. The sheer number of players and the presence of strong, international incumbents boost the competition within the market. Retailers can switch between different manufacturers' products quite easily, although the brand loyalty of consumers exerts a pull-through on retailers and makes it difficult for them to completely abandon a popular branded product for a brand with less consumer appeal, or private-label alternatives. It is notable that the largest players in this market own the majority of their factories. In consequence, exit barriers are high, since leaving the ice cream market would require divestment of substantial - and often quite specialized - assets. Fixed costs are also likely to be high, and automated processes mean that production can be ramped up when necessary. These factors, coupled with the declining market, tend to intensify rivalry. The degree of competition is assessed as moderate overall. Datamonitor (Published November 2008) Page 21

22 LEADING COMPANIES CHAPTER 8 LEADING COMPANIES 8.1 Ezaki Glico Table 6: Key Facts: Ezaki Glico Address: 6 5 Utajima, 4 chome, Nishiyodogawa ku, 0saka , JPN Telephone: Fax: Website: Financial Year-End: March Ticker: 2206 Stock Exchange: Tokyo Source: Company Website Ezaki Glico is a Japanese manufacturer of ice cream, confectionery, snack foods, processed foods and soft drinks. The company has its own retail operations to reach customers, as well as its wholesale division. The group operates through four key divisions: Milk products, Confectionery, Chilled Desserts and Food. Milk products and confectionery account for the majority of the company's revenues and are the products with which the company name is most associated. Ezaki offers over 30 products domestically as well as to surrounding markets such as Singapore, Indonesia, Malaysia, Hong Kong and Taiwan. Recently, the company has invested heavily in European marketing. The company has also been expanding its range of products, including the introduction of Alpha- Arbutin, a whitening cosmetics agent, Breo, a tongue- and breath-cleaning tablet, and weight-loss supplements. Datamonitor (Published November 2008) Page 22

23 LEADING COMPANIES Key Metrics Table 7: Key Financials: Ezaki Glico Metric Revenues 2, , , , ,289.8 Net Income Profit Margin 0.9% 0.9% 1.3% 1.9% 1.5% Total Assets 1, , , , ,796.7 Total Liabilities All in $ millions, except for margins Source: Company Filings Figure 12: Revenues & Profitability: Ezaki Glico Revenues Net Income Profit Margin US$ Millions 2,500 2,000 1,500 1, Year 2.0% 1.5% 1.0% 0.5% 0.0% Profit Margin (%) Source: Company Filings Datamonitor (Published November 2008) Page 23

24 LEADING COMPANIES 8.2 General Mills, Inc. Table 8: Key Facts: General Mills, Inc. Address: 1 General Mills Boulevard, Minneapolis, 55426, USA Telephone: Fax: Website: Financial Year-End: May Ticker: GIS Stock Exchange: New York Source: Company Website General Mills is a producer of packaged consumer foods operating exclusively in the consumer foods industry. The company distributes its products primarily in the US and in more than 100 countries outside the US. The company operates about 83 facilities for the production of a wide variety of food products, of which 51 are located in the US, 15 in the Asia/Pacific region, six in Canada, five in Europe, five in Latin America and Mexico, and one in South Africa. It owns flour mills at Vallejo, California; Swedesboro, New Jersey; Cincinnati, Ohio and Iowa City, Iowa. The company generates revenues through three business divisions: US retail, bakeries and food service, and international. The US retail division comprises cereals, meals, refrigerated and frozen dough products, baking products, snacks, yogurt and organic food products. The division produces and sells a number of ready-to-eat cereals, including brands such as Cheerios, Wheaties Energy Crunch, Total Corn Flakes, Whole Grain Total, Total Raisin Bran, Brown Sugar and Oat Total, Trix, Golden Grahams, and Wheat Chex. The US retail division manufactures and sells several lines of convenient dinner products, such as Betty Crocker dry packaged dinner mixes under the Hamburger Helper, Tuna Helper, Chicken Helper and Pork Helper trademarks; Old El Paso Mexican foods and dinner kits; Progresso soups and ingredients; Green Giant canned and frozen vegetables and meal starters; and a line of refrigerated barbeque products under the Lloyd's Barbeque name. The company also sells dry packaged specialty potatoes, Potato Buds instant mashed potatoes, Suddenly Salad and Bac*O's salad topping. It also manufactures and markets shelf stable microwave meals under the Betty Crocker Bowl Appetit brand and packaged meals under the Betty Crocker Complete Meals trademark. Datamonitor (Published November 2008) Page 24

25 LEADING COMPANIES The Pillsbury USA sub division manufactures and sells refrigerated and frozen dough products, frozen breakfast products, and frozen pizza and snack products. Refrigerated dough products marketed under the Pillsbury brand include Grands biscuits and sweet rolls; Golden Layers biscuits; Pillsbury Ready To Bake and Big Deluxe Classics cookies; and Pillsbury rolls, biscuits, cookies, breads and pie crust. Frozen dough product offerings include Home Baked Classics biscuits, rolls and other bakery goods. Breakfast products sold under the Pillsbury trademark include Toaster Strudel pastries, Toaster Scrambles pastries and Pillsbury frozen pancakes, waffles and waffle sticks. All breakfast, refrigerated and frozen dough products incorporate the Doughboy logo. Frozen pizza and snack products are marketed under the Totino's and Jeno's trademarks. Under the baking products sub division, General Mills makes and sells a line of dessert mixes under the Betty Crocker trademark, including SuperMoist cake mixes, Rich & Creamy and Soft Whipped ready-to-spread frostings, Supreme brownie and dessert bar mixes, muffin mixes and other mixes used to prepare dessert and baking items. The company markets a variety of baking mixes under the Bisquick trademark, sells pouch mixes under the Betty Crocker name, and produces family flour under the Gold Medal brand. In the snacks sub division, General Mills markets Pop Secret microwave popcorn; a line of grain snacks including Nature Valley granola bars and Milk n'cereal bars; a line of fruit snacks including Fruit Roll-Ups, Fruit By The Foot and Gushers; a line of snack mix products including Chex Mix and Gardetto's snack mix; and savory snacks marketed under the name Bugles. The organic foods sub division markets organic frozen fruits and vegetables, a variety of canned tomato products including tomatoes and spaghetti sauce, salsa, ketchup, soup, frozen juice concentrates, pickles, fruit spreads, granola bars, frozen desserts and cereal under Cascadian Farm and Muir Glen trademarks. The US retail division also manufactures and sells yogurt products, including Yoplait Original, Yoplait Light, Custard Style, Trix, Yumsters, Go-GURT, Yoplait Whips, Yoplait Nouriche, and Yoplait Ultra. The company also manufactures and sells a variety of refrigerated cup yogurt products under the Colombo brand name. General Mills' international business comprises operations and sales in Canada, Latin America, Europe and the Asia Pacific region. Outside the US, the company markets its products in more than 100 countries. Outside North America, the company offers numerous local brands, in addition to internationally recognized brands as Haagen- Dazs ice cream, Old El Paso Mexican foods, Green Giant vegetables, Pillsbury dough products and mixes, Betty Crocker mixes and Bugles snacks. The international businesses are managed through 34 sales and marketing offices. Datamonitor (Published November 2008) Page 25

26 LEADING COMPANIES The company's bakeries and foodservice division markets mixes, and unbaked and fully baked frozen dough products to retail, supermarket and wholesale bakeries under the Pillsbury and Gold Medal trademarks. In addition, it sells flour to bakery, foodservice and manufacturing customers. It also markets frozen dough products, branded baking mixes, cereals, snacks, dinner and side dish products, refrigerated and soft-serve frozen yogurt, and custom food items to quick serve chains, restaurants, business and school cafeterias, convenience stores and vending companies. Datamonitor (Published November 2008) Page 26

27 LEADING COMPANIES Key Metrics Table 9: Key Financials: General Mills, Inc. Metric Revenues 11, , , , ,652.1 Net Income 1, , , , ,294.7 Profit Margin 9.5% 11.0% 9.4% 9.2% 9.5% Total Assets 18, , , , ,041.6 Total Liabilities 12, , , , ,583.5 Employees 27,580 27,804 28,147 28,580 29,500 All in $ millions, except for employee numbers and margins Source: Company Filings Figure 13: Revenues & Profitability: General Mills, Inc. Revenues Net Income Profit Margin US$ Millions 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2, Year 11.5% 11.0% 10.5% 10.0% 9.5% 9.0% 8.5% 8.0% Profit Margin (%) Source: Company Filings Datamonitor (Published November 2008) Page 27

28 LEADING COMPANIES 8.3 Snow Brand Milk Products Co., Ltd. Table 10: Key Facts: Snow Brand Milk Products Co., Ltd. Address: 13 Honshio-cho, Shinjuku-ku, Tokyo, , JPN Telephone: Fax: Website: Financial Year-End: March Ticker: 2262 Stock Exchange: Tokyo Source: Company Website Snow Brand Milk Products is a Japan-based consumer product company. The company makes dairy products such as butter, cheese and margarine, as well as pharmaceuticals and soft drinks. However, dairy products account for most of the company's production. Snow Brand Milk Products is the nucleus of the Snow Brand Group, which contains three major companies: Snow Brand Labio Co., Ltd., a producer of fermented milk drinks; Snow Brand Seed Co., Ltd., which handles seeds and feed; and Yukijurushi Access, Inc., Japan's second-largest food wholesaler. The company has a flagship brand MBP which deals in bone-health related products. MBP is a milk basic protein naturally occurring in trace amounts, works directly and/or indirectly on bone cells to form healthy bones, and increase bone density. MBP is used widely in products such as lactic drink, yogurt, cheese, skim milk, and beverages. Datamonitor (Published November 2008) Page 28

29 LEADING COMPANIES Key Metrics Table 11: Key Financials: Snow Brand Milk Products Co., Ltd. Metric Revenues 6, , , , ,354.1 Net Income Profit Margin -3.7% 0.4% 2.5% 2.5% 2.7% Total Assets 2, , , , ,737.1 Total Liabilities 2, , , , ,119.8 All in $ millions, except for margins Source: Company Filings Figure 14: Revenues & Profitability: Snow Brand Milk Products Co., Ltd. Revenues Net Income Profit Margin US$ Millions 7,000 6,000 5,000 4,000 3,000 2,000 1, , Year 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% -4.0% -5.0% Profit Margin (%) Source: Company Filings Datamonitor (Published November 2008) Page 29

30 DISTRIBUTION CHAPTER 9 DISTRIBUTION Supermarkets and hypermarkets distribute the largest share of the Japanese ice cream market, accounting for 35.8% of the market's value. In comparison, independent retailers form the second largest distribution channel, generating 20.9% of the overall value. Table 12: Channel Japan Ice Cream Distribution: % Share, by Value, 2008(e) % Share Supermarkets / hypermarkets 35.80% Other 24.40% Independent Retailers 20.90% Convenience Stores 18.90% Total 100.0% Figure 15: Japan Ice Cream Distribution: % Share, by Value, 2008(e) Convenience Stores 18.9% Supermarkets / hypermarkets 35.8% Independent Retailers 20.9% Other 24.4% Datamonitor (Published November 2008) Page 30

31 MARKET FORECASTS CHAPTER 10 MARKET FORECASTS 10.1 Market Value Forecast In 2013, the Japanese ice cream market is forecast to have a value of $2.9 billion, an increase of 1.2% since The compound annual growth rate of the market in the period is predicted to be 0.2%. Table 13: Japan Ice Cream Market Value Forecast: $ billion, Year $ billion Ja billion % Growth % % % % % % CAGR, : 0.2% Figure 16: Japan Ice Cream Market Value Forecast: $ billion, $ billion % Growth $ billion % 0.25% 0.20% 0.15% 0.10% 0.05% % Growth % Datamonitor (Published November 2008) Page 31

32 MARKET FORECASTS 10.2 Market Volume Forecast In 2013, the Japanese ice cream market is forecast to have a volume of million liters, an increase of 0.1% since The market is therefore expected to be stagnant in the period Table 14: Japan Ice Cream Market Volume Forecast: Liters million, Year Liters million % Growth % % % % % % CAGR, : 0.0% Figure 17: Japan Ice Cream Market Volume Forecast: Liters million, Liters million % Growth Liters million % 0.10% 0.05% 0.00% -0.05% -0.10% -0.15% -0.20% -0.25% % Growth Datamonitor (Published November 2008) Page 32

33 MACROECONOMIC INDICATORS CHAPTER 11 MACROECONOMIC INDICATORS Table 15: Japan Size of Population (million), Year Population (million) % Growth % % % 2008(e) % Table 16: Japan GDP (Constant 2000 Prices, $ billion), Year Constant 2000 Prices, $ billion % Growth % % % 2008(e) % Table 17: Japan Inflation, Year Inflation Rate (%) % Growth % 2008(e) % Datamonitor (Published November 2008) Page 33

34 MACROECONOMIC INDICATORS Table 18: Japan Exchange Rate, Year Exchange Rate ($/Ja ) (e) Datamonitor (Published November 2008) Page 34

35 APPENDIX CHAPTER 12 APPENDIX 12.1 Methodology Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented in a consistent and accessible style. Review of in-house databases Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, Datamonitor s in-house databases provide the foundation for all related industry profiles Preparatory research We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview Definitions Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends Datamonitor aggregates and analyzes a number of secondary information sources, including: - National/Governmental statistics - International data (official international sources) - National and International trade associations - Broker and analyst reports - Company Annual Reports - Business information libraries and databases Modeling & forecasting tools Datamonitor has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date Datamonitor (Published November 2008) Page 35

36 APPENDIX Industry Associations Japan Dairy Council JA Bldg Ohtemachi, Chiyoda-Ku, Tokyo, , Japan Tel: Fax: Japan Dairy Industry Association Nyugyo Kaikan bldg. 4F, Kudan-Kita, Chiyoda-ku, Tokyo , Japan Tel: Fax: Related Datamonitor Research Datamonitor Industry Profiles Global Ice Cream Ice Cream in Europe Ice Cream in Asia-Pacific Ice Cream in Germany Ice Cream in France Ice Cream in the United Kingdom Ice Cream in the United States Datamonitor (Published November 2008) Page 36