Released on = April 16, 2007, 4:42 am

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = Table sauces and spreads comprise a range of products used
as accompaniments to other foods. Table sauces cover products such as tomato
ketchup, brown sauce, pickles, chutneys and relishes, and salad accompaniments.
Spreads include sweet options such as jam, marmalade and honey, as well as savoury
products such as peanut butter, Marmite and sandwich pastes.

Press Release Body =
Sauces & Spreads - Market Report

Table sauces and spreads comprise a range of products used as accompaniments to
other foods. Table sauces cover products such as tomato ketchup, brown sauce,
pickles, chutneys and relishes, and salad accompaniments. Spreads include sweet
options such as jam, marmalade and honey, as well as savoury products such as peanut
butter, Marmite and sandwich pastes. Key Note estimates that, in 2004, the total UK
sauces and spreads market was worth £759m at retail selling prices (rsp), a rise of
3% on 2003. Between 2000 and 2004, the market grew by an estimated 12.3%.

The sauces and spreads market has been influenced by many of the trends affecting
the wider food market. The popularity of low-carbohydrate eating regimes, such as
Atkins and the South Beach diet, have led to the introduction of products tailored
for this type of eating, including low-carbohydrate sauces and fruit spreads. In
addition, growing interest in the product source has driven demand for the range of
Fairtrade and locally sourced products available in supermarkets.

The trend towards more barbecues in the UK has paid dividends for the sauces sector,
with a range of products - from tomato ketchup and barbecue sauces to salad
accompaniments - benefiting from a boost in sales during the summer season. In
addition, the growth of ethnic food products has presented seasonal sales
opportunities for the sector through promotional activity around occasions such as
Chinese New Year and Diwali. Packaging innovation has also been a feature of the
sector, as table sauces continue to be offered in more convenient squeezy bottle and
top-down formats. This has contributed to incremental sales increases for some
brands.

Although spreads continue to suffer from their image of being a breakfast food, the
tendency for the morning meal to be eaten on the go during the week has led to the
development of sweet spreads being perceived as indulgent products for weekend
occasions. Products such as honey have uses as a cooking ingredient, while peanut
butter, Marmite and chocolate spread are appealing for sandwiches and lunchboxes, as
well as for snacking occasions.

On the supply side, there are a number of large companies involved in the sauces and
spreads market, although this is only part of a much wider product portfolio. Food
majors that have an interest in the market include HJ Heinz Company Ltd, Kraft Foods
UK Ltd, Premier Foods PLC and Unilever Bestfoods UK Ltd. More specialist companies
include F Duerr & Sons Ltd and Rowse Honey Ltd. In addition, there are a number of
distributors operating on behalf of significant brands such as Bonne Maman and
Cardini.

The sauces and spreads market has a relatively high level of penetration across all
consumer groups, with around two-thirds or more of households buying products in a
number of categories. However, this figure is falling and, as a result, Key Note
anticipates that there will be only limited growth in the market to 2009, which will
be largely driven by price rather than volume rises. However, there remains scope
for product development to add value in some areas, and ongoing innovation and
investment by major brands is a positive indicator.

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