Contents:

1. Introduction BACKGROUND REPORT COVERAGE DEFINITION Food Drink Non-Food 2. Strategic Overview EVOLUTION OF OWN LABELS KEY ISSUES Consolidation Among Grocery Retailers Tilts Market In Favour of Own Brands Technological Developments Product Reformulation Drive Upmarket and Growth of Sub-Brands Continues Own-Branded Goods Pose Increasing Threat To Brands Multiples Increase Focus On Non-Food Own Brands MARKET DYNAMICS Market Size Table 1: The Total UK Grocery and Own-Label Market by Value (£m at rsp and %), 2002-2006 Figure 1: The Total UK Grocery and Own-Label Market by Value (£m at rsp), 2002-2006 COMPETITIVE STRUCTURE Retailing Table 2: Sales Through `Predominantly Food Stores' at Current Prices (£m at rsp and index 2000=100), 2002-2006 Table 3: Sales Through `Predominantly Food Stores' by Type of Store at Current Prices (index 2000=100), 2002-2006 Table 4: Market Share of UK Grocery Sales by Major Grocery Outlet by Value (%), 2006 Figure 2: Market Share of UK Grocery Sales by Major Grocery Outlet by Value (%), 2006 Own-Label Suppliers PROMOTIONAL ACTIVITY Table 5: Main Media Advertising Expenditure on Food, Drink and Household Goods Brands (£000), Years Ending December 2005 and 2006 THE CONSUMER MARKET FORECASTS 3. Foods CHILLED READY MEALS Background Market Size Table 6: The Total UK Chilled Ready Meals Market by Value at Current Prices (£m at rsp), 2002-2006 Figure 3: The Total UK Chilled Ready Meals Market by Value at Current Prices (£m at rsp), 2002-2006 FROZEN FOODS Background Market Size Table 7: The Total UK Frozen Foods Market by Value at Current Prices (£m at rsp), 2002-2006 Market Sectors Table 8: The Total UK Frozen Foods Market by Sector by Value at Current Prices (£m at rsp and %), 2006 Meat and Meat Products Poultry and Poultry Products Fish and Fish Products Ice Cream Ready Meals (Excluding Pizza) Potato Products Cakes and Desserts Pizza Vegetables and Fruit (Excluding Potatoes) Vegetarian Foods Share of Frozen Food Taken by Own Labels Table 9: Market Share of Frozen Food Sales Taken by Own Labels by Value (%), 2006 DAIRY PRODUCTS Background Market Size Table 10: The Total UK Milk and Dairy Products Market by Value at Current Prices (£m at rsp), 2002-2006 Market Sectors Table 11: The Total UK Milk and Dairy Products Market by Sector by Value at Current Prices (£m at rsp), 2006 Liquid Milk Cheese Yoghurts and Chilled Desserts Yellow Fats Figure 4: The Total UK Milk and Dairy Products Market by Sector by Value at Current Prices (%), 2006 DRY GROCERIES Bread and Morning Goods Bread Biscuits Breakfast Cereals Confectionery Bagged Snacks DELICATESSEN PRODUCTS CANNED FOODS Background Market Size Table 12: The Total UK Market for Canned Foods by Value at Current Prices (£m at rsp), 2002-2006 Market Sectors Table 13: The UK Market for Canned Foods by Sector by Value at Current Prices (£m at rsp), 2002-2006 Figure 5: The UK Market for Canned Foods by Sector by Value at Current Prices (£m at rsp), 2002-2006 Vegetables Fish Soup Meat Fruit Pasta Share of Canned Foods Taken by Own Labels Table 14: Market Share of Selected Canned Foods Taken by Own Labels by Value (%), 2006 SAUCES Soups 4. Drinks SOFT DRINKS Table 15: Leading Brands in Carbonates and Concentrates/RTDs by Flavour or Type, 2006 ALCOHOLIC DRINKS Background Market Sectors Beer and Lager Wines and Champagne Spirits HOT BEVERAGES 5. Non-Foods HOUSEHOLD CLEANING PRODUCTS Laundry Aids TOILETRIES PAPER PRODUCTS PET FOOD 6. An International Perspective Introduction EUROPE THE US 7. PEST Analysis POLITICAL FACTORS ECONOMIC FACTORS Gross Domestic Product Table 16: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2002-2006 Household Disposable Income Table 17: UK Household Disposable Income Per Capita (£), 2002-2006 Inflation Table 18: UK Rate of Inflation (%), 2002-2006 Unemployment Table 19: Actual Number of Unemployed Persons in the UK (million), 2002-2006 SOCIAL FACTORS Population Table 20: UK Resident Population Estimates by Sex (000), Mid-Years 2002-2006 TECHNOLOGICAL FACTORS 8. Consumer Dynamics OVERVIEW Table 21: Summary of Responses (% of adults), 2006 THE QUALITY OF OWN LABELS "Shops' Own Brands Are Identical In Quality To Well-Known Brands" Table 22: Attitudes Towards the Quality of Own Labels (% of adults), 2006 "Shops' Own Brands Are Not As Good Quality As The Well-Known Brands" Table 23: Attitudes Towards the Quality of Own Labels (% of adults), 2006 "Shops' Own Brands Are Better Quality Than Well-Known Brands" Table 24: Attitudes Towards the Quality of Own Labels (% of adults), 2006 REASONS WHY SHOPS SELL OWN LABELS "Shops Sell Their Own Brands To Offer Lower Prices" Table 25: Perceptions of Why Retailers Offer Own Labels (% of adults), 2006 "Shops Offer Own Brands To Increase Their Margins" Table 26: Perceptions of Why Retailers Offer Own Labels (% of adults), 2006 "Shops Sell Own Brands To Increase Choice For The Consumer" Table 27: Perceptions of Why Retailers Offer Own Labels (% of adults), 2006 "Shops Sell Their Own Brands To Gain More Customer Loyalty" Table 28: Perceptions of Why Retailers Offer Own Labels (% of adults), 2006 "Shops Sell Their Own Brands To Be Different From Other Retailers" Table 29: Perceptions of Why Retailers Offer Own Labels (% of adults), 2006 OWN-LABEL PRICES "Shops' Own Brands Are Lower In Price Than Well-Known Brands" Table 30: Perceptions of Own-Label Prices (% of adults), 2006 "Shops' Own Brands Are Either Identical Or Higher In Price Than Well-Known Brands" Table 31: Perceptions of Own-Label Prices (% of adults), 2006 INVOLVEMENT OF RETAILERS IN CREATING OWN LABELS "Shops Tend To Think Up Ideas For Their Own Brands But Do Not Usually Manufacture Them" Table 32: Perceptions of Retailer Involvement in Creating Own Labels (% of adults), 2006 "Shops Tend To Manufacture Their Own Brands Themselves" Table 33: Perceptions of Retailer Involvement in Creating Own Labels (% of adults), 2006 CONSUMER PURCHASING PATTERNS "I Try To Buy Brands Instead Of Shops' Own Brands Where Possible" Table 34: Consumer Purchasing Patterns for Own Labels (% of adults), 2006 "I Buy More Shop Own-Brand Products Than I Did 2 Years Ago" Table 35: Consumer Purchasing Patterns for Own Labels (% of adults), 2006 "I Am More Likely To Opt For Shops' Own Brands For Items I Buy More Of" Table 36: Consumer Purchasing Patterns for Own Labels (% of adults), 2006 9. Company Profiles RETAILERS ASDA Group Ltd Corporate Strategy Strengths and Weaknesses Innovations Profitability Table 37: Key Company Data for Wal-Mart Stores Inc ($m), Years Ending 31st December 2002-2006 Future Company Developments The Co-operative Group Corporate Strategy Own Labels Profitability Table 38: Key Company Data for The Co-operative Group (£m), Years Ending 12th January 2003-2005 Future Company Developments Iceland Foods Corporate Strategy Own Labels Profitability Table 39: Key Company Data for Iceland (£000), Years Ending 31st March 2004-2006 Future Company Developments Marks and Spencer PLC Corporate Strategy Own labels Profitability Table 40: Key Company Data for Marks and Spencer PLC (£m), Years Ending 30th March 2005 and 2006 Future Company Developments Morrisons Corporate Strategy Own Labels Profitability Table 41: Key Company Data for Morrisons PLC (£000), Years Ending January 2004-2006 Future Company Developments J Sainsbury PLC Corporate Strategy Own Labels Profitability Table 42: Key Company Data for J Sainsbury PLC (£m), Years Ending 31st March 2003-2006 Future Company Developments Somerfield PLC Corporate Strategy Own Labels Profitability Table 43: Key Company Data for Somerfield PLC (£000), Years Ending 30th April 2003-2005 Future Company Developments Tesco PLC Corporate Strategy Own Labels Profitability Table 44: Key Company Data for Tesco PLC (£000), Years Ending 25th February 2004-2006 Future Company Developments Waitrose Ltd Corporate Strategy Own Labels Profitability Table 45: Key Company Data for John Lewis Partnership PLC (£000), Years Ending January 2003-2007 Future Company Developments SELECTED OWN-LABEL SUPPLIERS Ashbury Confectionery Ltd Corporate Strategy Profitability Future Company Developments Greencore Group PLC Corporate Strategy Profitability Future Company Developments Robert McBride Ltd Corporate Strategy Profitability Future Company Developments The Snack Factory Ltd Corporate Strategy Profitability Future Company Developments Uniq PLC Corporate Strategy Salads Ready Meals Sandwiches Fish Desserts Sauces, Dips and Dressings Profitability Future Company Developments 10. The Future MARKET FORECASTS Table 46: The Total Forecast UK Grocery and Own-Label Market by Value (£m at rsp and %), 2007-2011 Figure 6: The Total Forecast UK Grocery and Own-Label Market by Value (£m at rsp), 2007-2011 11. Consumer Confidence METHODOLOGY KEY FINDINGS THIS QUARTER THE WILLINGNESS TO BORROW Confidence Improves Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007 Willingness to Borrow Slips Slightly Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), February 2006-2007 SPENDING FROM SAVINGS Slight Increase in Spending from Savings Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007 Saving Grows in Relative Importance Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), February 2006-2007 12. Further Sources General Sources Publications Government Publications Other Sources Bisnode Sources

Companies Mentioned

ASDA Group Ltd Iceland Foods Marks and Spencer PLC J Sainsbury PLC Somerfield PLC Tesco PLC Waitrose Ltd Ashbury Confectionery Ltd Greencore Group PLC Robert McBride Ltd The Snack Factory Ltd Uniq PLC