Contents:

Issues in the Market Definition Abbreviations Market in Brief Italians and convenience foods Sales level, but consumers shift from frozen to chilled options The competitive scenario Distribution Future Internal Market Environment Key points Social trends that drive sales of convenience foods Alternatives to convenience foods Focus on quality hampers growth of convenience food Convenience vs quality The fast growing market of fresh pasta Italians spend more on fish, and less on sugar, coffee and vegetables Figure 1: Average family spending per month, by category, 2003-05 Figure 2: Average family spending per month, by category, by region, 2003-05 Figure 3: Sector spending as % of total, by occupation, 2005. Broader Market Environment Key Points The Italian population is ageing Figure 4: Trends in Italian population, by age, 2001-11 Italian households are smaller Figure 5: Trends in household size in Italy, 2000-02 Economy is improving but any benefit for sales of consumer goods? Figure 6: Trends in Italian PDI, consumer expenditure and GDP, at 2006 prices, 2001-11 Liberalisation laws favour supermarkets and hypermarkets Towards ethical, environmentally-friendly and safer packaging Who’s Innovating? Key points Low innovation as quality drives purchases Ready meals Frozen and fresh soups Pasta sauces Frozen pizza Market Size and Forecast – Convenience Foods Key Points Figure 7: Italian retail value sales of selected convenience foods, by type, through H-S-S, 2004-06 Convenience foods to Italians mostly means … Ethnic foods have to battle traditional attitudes Organic meals may do well Will chilled options overtake frozen ones? Figure 8: Italian retail value sales of selected convenience foods* frozen vs chilled, through H-S-S, 2004-06 Forecast Figure 9: Forecast of Italian retail value sales of selected convenience foods, at current prices, 2001-11 Figure 10: Forecast of Italian retail value sales of selected convenience foods, at 2006 prices, 2001-11 Factors used in the forecast Prospects Regional differences may level out Rising purchasing power of low-income population Men increasingly involved in household chores Expanding the target market Chilled ready meals will drive growth Segment Performance Key Points Ready meals Figure 11: Italian retail value sales of ready meals, chilled and frozen, through H-S-S, 2004-06 Frozen ready meals Figure 12: Italian retail value sales of frozen ready meals, by type, through H-S-S, 2004-06 Chilled ready meals Figure 13: Italian retail value sales of chilled ready meals, by type, through H-S-S, 2004-06 Fish-based dishes lead for second courses and starters Figure 14: Italian retail value sales of chilled second courses and starters by primary ingredient, through H-S-S, 2004-06 Figure 15: Italian retail value sales of chilled second courses and starters, % by primary ingredient, through H-S-S, 2005-06 Chilled first courses: pasta leads, but fresh soups are growing faster Figure 16: Italian retail value sales of chilled ready first courses, by type, through H-S-S, 2004-06 Frozen pizza Figure 17: Italian retail value sales of frozen pizza, by size, through H-S-S, 2004-06 Frozen soups and cooking mixes Ambient pasta sauces Figure 18: Italian retail value sales of ambient pasta sauces, by type, H-S-S, 2005-06 Market Share Key Points Ready meals Frozen and chilled first courses Figure 19: Manufacturers' value shares of frozen first courses, through H-S-S, 2004-06 Figure 20: Manufacturers’ value shares of chilled first courses, through H-S-S, 2004-06 Frozen and chilled second courses and side dishes Figure 21: Manufacturers’ value shares of frozen second courses and side dishes, through H-S-S, 2004-06 Figure 22: Brands’ value shares of chilled second courses, through H-S-S, 2004-06 Chilled side dishes Chilled ready-prepared starters Figure 23: Manufacturers’ value shares of chilled starters, through H-S-S, 2004-06 Frozen pizza Figure 24: Manufacturers’ value shares of frozen pizza, through H-S-S, 2004-06 Frozen soups and cooking mixes Figure 25: Manufacturers’ value shares of frozen soups and cooking mixes, through H-S-S, 2004-06 Pasta sauces Own-labels in the convenience foods market Figure 26: Italian retail value sales of selected frozen and chilled convenience foods, own-label vs brands, 2004-06 Figure 27: Italian retail value sales of frozen ready meals, own-label vs brands, 2004-06 Figure 28: Italian retail value sales of chilled ready meals, own-label vs brands, 2004-06 Companies and Products Arena Holding Barilla Fratelli Beretta La Linea Verde Nestlé Italiana Spa/Buitoni Unilever Italia Srl/Findus Own-label – Coop Italia Channels to Market Key Points Figure 29: Number of food retail outlets in Italy, by type, 2000-03 Supermarkets and hypermarkets for packaged and frozen food and traditional shops for bread and meat Coop Italia is the leader in grocery distribution Hard discounts are still synonymous with low quality Frozen food is bought on-line New distributors will probably enter the Italian market

Companies Mentioned

-Arena Holding -Barilla -Fratelli Beretta -La Linea Verde -Nestlé Italiana Spa/Buitoni -Unilever Italia Srl/Findus