Australia   Growth Year for Can and Aerosol Staples

17/02/2010

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The Australian grocery industry showed strong growth in 2009 for many can and aerosol staples, according to data produced as part of Retail World's 2009 Annual Report.*

A 'back-to-basics' shopping mentality translated into strong growth in many canned food and aerosol market segments, while growth in canned vegetables pointed to more consumers saving their money by cooking simpler meals from scratch at home.

In the packaged vegetable category, sales of wet seed beans increased by an impressive 17.2 per cent to $45.3 million, growing six per cent in volume. Simplot's Edgell brand led the market with 47.8 per cent of the overall segment value and 39.7 per cent volume share.

Similarly, corn experienced growth of 11 per cent in value to $51.7 million and had 1.7 per cent volume growth. Edgell led the segment with 65.3 per cent value share.

The beetroot segment, where the product sells mostly in cans, recorded growth of 4.1 per cent in value to $46.4 million, but lost 2.4 per cent in volume.

Golden Circle still dominates that market with 56.3 per cent of overall segment value and just under half of the segment's volume.

The total canned fish category grew strongly by 7.2 per cent in value and is now worth more than $565.5 million, with the $386.9 million canned tuna segment making up the majority of the value.

Canned tuna grew 9.4 per cent in value and 4.4 per cent in volume, with Simplot and HJ Heinz the market leaders. Private label now enjoys a 19.1 per cent value and 31.6 per cent volume share in this market.

The baked beans and canned spaghetti category increased by 8.6 per cent to $175.5 million, with a decrease in volume of 1.4 per cent. Baked beans held 63 per cent value market share ahead of spaghetti. The baked beans segment increased by 11.7 per cent to $110.6 million, while spaghetti grew by 3.7 per cent in value to $64.8 million, with a volume decrease of 5.5 per cent. Heinz led the way from SPC Ardmona in both sub-segments.

The category "other canned meat" enjoyed growth of seven per cent in value to be worth $4.6 million.

The canned soup category grew in 2009, increasing in value by 1.3 per cent to $202.4 million and reducing in volume by 3.1 per cent.

Campbell's and HJ Heinz continue to hold almost half of the market.

In the health and beauty category, aerosols still led the way in the deodorant segment, which grew 11.5 per cent in value to $246.1 million. Aerosols comfortably lead the segment with 57.1 per cent value and 51.8 per cent volume. Unilever was the market leader, its Rexona and Dove brands filling the top two slots.

Consumers are now spending more of their grocery bill on private label products than ever before, according to Retail World.

Sales for private label now account for almost one quarter (22.5 per cent) of all grocery sales. The average Aussie household now spends around $178 on these products every quarter - an increase of 4.3 per cent compared to the same quarter last year. (Homescan: QTR to October 2009).

* CAN-News has listed data from categories and segments where can and aerosol products have either total or the majority of market share.

Source: Retail World - Annual Report, December 2009

(To read the rest of this edition, click here.)