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Key Factsfor Decision Makers

Key Global Trends: Economic,Demographic, FMCG, Retail, Media

Special Edi on

Edi on 2010

E u r o p a n e l G

I E 2 0 1 0 p o w e

r e d b y G f K P a

n e l S e r v i c

e s a n d K a n t a r

W o r ldp a n e l

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ContentsGlobal trends highlights 4

Key indicators:

Quick reference table 6

Country trends by region:

Western Europe 10

Eastern Europe/Middle East 23

The Americas 37Asia 48

Europanel service enhancements 56

Welcome to the 2010 Special Edi on of Europanel Key Facts!

In this edi on our annual summary of key global trends has been updatedfor the 54 countries across our network.

For each country, we highlight developments in key areas of interest forFMCG manufacturers and retailers: economic trends, key drivers, retail tradeissues and media.

All of this informa on is summarised in quick reference tables.

We hope that you nd this edi on of interest.

At the point of purchase, in the store of choice...Make the shoppers heart beat a li le faster.

Europanel monitors consumer and shopper behaviour tofully understand market movements, their implica ons andthe subsequent ac ons required. Our informa on sourcesare high quality, con nuous purchasing panels. From thesewe derive ac onable and crea ve insights...Insights on behaviour to make your key business decisions.

Consumers are at the heartof your business.

Helping you understand their behaviour is atthe hearts of ours.

Edi on 2010

About Europanel...

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More detailed informa on about more than 40 countries covered by thisspecial edi on is available in the Europanel Global Retailer Report.

This is a unique report measuring the performance of the majorinterna onal and local retailers, at total FMCG level, across Europe, Asia andthe Americas.

For further informa on, please email [email protected].

Global Trends Highlightby Richard Herbert, Global Business Insight and Development Director

Based on mul -category datasets from 13 key economies: France, Germany, Italy, Netherlands,Spain, UK, Poland, Russia, China, Japan, Brazil,Mexico and USA.

2009 showed that Food price in a on had reverted inmany cases to price de a on o en driven by speci cretailers such as the Discounters in Germany andMercadona in Spain. Although s ll fragile, ConsumerCon dence also improved as the economic outlook

became more posi ve, and unemployment did notrise as much as had been predicted. Hence therewas a far be er environment in which FMCG wasopera ng in 2009.

A er a slightly weaker performance in 2008 driven bythe signi cant Food in a on, FMCG returned to goodgrowth in 2009 and was not a ected by the globaleconomic problems. Despite de a on in Food pricesin several countries, FMCG value growth globallywas 7% in 2009. In volume the market was up 2.8%,compared with the 1.6% recorded in 2008, and thisrate of growth has been maintained into the rst half of 2010.

The market in Western Europe is, of course, muchmore stable but volumes were also up by 1.2% in2009 and again remain at this sort of level in the rsthalf of 2010.

Underlying these global pa erns in 2009 were strongtrends in the UK, Russia and Brazil backed by goodrecoveries for the market in France, Netherlands, Italyand USA as well as greater stability in Japan.

In Spain and Mexico, despite strength for most of 2009, trends were weaker at the end of the yearalbeit against very strong growth in 2008. WhilstGermany and Poland were less strong in 2009, themarket in Poland did recover to former growth levelsat the year end.

Some factors that supported the FMCG market in2008 remained important in 2009. The increase inea ng at home, rather than ea ng out, con nued.Naturally this also helped drive growth for meal andmeal ingredient categories. Unemployment did notgo up much and the impact of any increase remainsa very small in uence on the overall market.

A key driver of total FMCG has been the trend inshopping frequency. The more o en consumers shop,the more opportunity there is to buy and vice versaif shopping frequency drops. Hence the recoveriesin France and Netherlands have been supported bygreater shopping frequency whereas for Germany,consumers are shopping less o en and so, buyingfewer products.

In the period of high food in a on in 2008, consumer

coping strategies di ered by country but includeddown-trading to cheaper op ons such as PrivateLabels, Discounters and a greater use of promo ons.In addi on, some consumers, like in France, wentshopping less o en and reduced discre onary spend.

Therefore in 2008 down-trading led to a jump in theshare taken by Private Label in Europe and to a similarshare increase for Discounters. In 2009, though,down-trading in most countries was not an issue asin a on reduced and the growth in Private Label andespecially Discounters was much reduced.

Although this appears to be good news for Na onalBrands it is not! P rivate Label was in growth pre-2008.Down-trading in 2008 led to this jump in share to anew high and the longer term growth has now beenre-established from this higher level. This is much lessthe case, so far, for Discounters who have seemed tostabilize more.

This surge and con nued growth of Private Label isin line with the experience from previous mes of in a on and economic hardship. Again, as before,the ac ons of manufacturer brands and retailershave perpetuated the situa on with brands generallycu ng budgets and retailers increasing them.

Looking forward it is clear that FMCG remains strongand largely in a on and economy proof. Howeverthere are more subtle e ects caused by changes inconsumer circumstances. The more widespread these

are, the greater the e ect. Hence because in a onimpacts everyone, this had a much greater e ectthan unemployment which only a ects some. So theupcoming austerity measures driven by governmenta empts to reduce de cits could have morewidespread e ects on FMCG consumers.

The learnings from the past s ll emphasize con nuedstrong investment in brand support and innova on orface a con nued erosion of brand value.

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MACRO - ECONOMIC FMCG FMCG DEMOGRAPHIC

COUNTRIES

G D P c h a n g e

( % )

I n a o n

( % )

U n e m p

l o y m e n t

( % )

T o t a

l F M C G s -

% c h a n g e

( v a l u e )

F r e s h

f o o

d s -

% c h a n g e

( v a l u e )

P e r s o n a l c a r e -

% c h a n g e

( v a l u e )

S u p e r m a r

k e t /

h y p e r m a r

k e t s h a r e o

f a l

l

F M C G c a t e g o r i e s

( % )

H a r

d d i s c o u n t e r s h a r e o

f

a l l F M C G c a t e g o r i e s

( % )

P r i v a t e L a

b e

l s h a r e

( % )

A v e r a g e

b a s

k e t s i z e

( )

- t o t a

l g r o c e r y

( S p e n

d

p e r t r i p

)

F r e q u e n c y o

f p u r c

h a s e

p e r y e a r -

t o t a

l g r o c e r y

A v e r a g e

h o u s e

h o

l d s i z e

% 6 5 y e a r s o r o

l d e r

P o p u

l a o n

( 0 0 0 s )

N u m

b e r o

f h o u s e

h o

l d s

( 0 0 0 s ) i n t o t a

l c o u n t r y

COUNTRIES

EUROPE EUROPEAustria -3.4 0.5 5.0 0.2 -0.4 1.5 55.0 16.9 23.7 15.5 220.9 2.3 17.2 8,369 3,595 Austria

Belgium -1.6 0.0 7.9 1.7 -0.2 7.5 48.4 17.0 30.3 27.8 185.4 2.3 26.2 10,750 4,613 Belgium

Bosnia Herzegovina -2.9 -0.4 24.0 0.3 n/a -3.5 48.0 n/a 0.7 4.8 121.7 3.3 12.0 3,447 1,114 Bosnia Herzegovina

Bulgaria -5.1 0.6 7.6 1.9 n/a 2.3 31.6 8.1 5.4 2.3 182.3 2.6 17.5 7,564 2,844 Bulgaria

Croa a -6.2 2.5 15.1 3.3 n/a 11.0 49.0 5.0 13.6 6.3 101.4 3.0 17.0 4,442 1,477 Croa a

Czech Republic -4.2 1.0 7.3 2.0 8.3 8.0 52.0 17.2 18.2 4.8 196.4 2.3 14.9 10,507 4,480 Czech Republic

Denmark -4.5 1.3 6.0 -4.1 3.9 1.9 53.3 5.5 n/a 19.9 202.6 2.1 16.3 5,535 2,573 Denmark

France -2.2 0.1 9.8 0.6 -1.8 -1.4 72.2 11.3 32.7 28.7 98.3 2.3 25.0 60,860 26,365 France

Germany -4.8 0.3 8.2 -1.1 -1.8 -0.9 46.8 44.6 35.7 15.5 185.0 2.1 20.4 82,002 39,110 Germany

Great Britain -4.9 0.6 7.8 5.0 4.0 3.5 75.5 6.0 46.3 18.9 221.0 2.4 16.2 61,383 25,263 Great Britain

Greece -2.0 1.3 10.2 3.2 n/a n/a 81.2 11.8 n/a 29.4 89.3 2.7 18.7 11,237 4,162 Greece

Hungary -6.3 4.2 10.2 -0.2 n/a -8.2 43.1 15.5 26.0 7.1 367.3 2.5 16.4 10,031 4,000 Hungary

Ireland -7.1 -5.7 13.4 -3.6 -4.8 -8.6 76.7 8.3 32.6 22.6 252.0 2.8 9.7 4,500 1,579 Ireland

Italy -5.1 0.8 8.5 1.6 1.2 2.3 63.3 10.9 7.6 24.6 156.2 2.5 28.9 59,363 23,462 Italy

Kazakhstan 1.2 6.2 6.6 16.7 29.1 31.4 15.3 n/a n/a 1.5 143.3 3.4 7.5 15,925 4,153 Kazakhstan

Netherlands -4.0 1.2 4.9 1.8 0.4 5.2 68.3 13.5 34.1 18.1 195.3 2.2 15.0 16,486 7,313 Netherlands

Norway -1.5 2.1 3.3 1.4 n/a n/a 82.5 0.0 n/a 32.0 171.0 2.3 14.9 4,858 2,146 Norway

Poland 1.7 4.0 9.1 6.9 -2.4 3.4 36.0 19.0 16.0 4.1 304.0 2.8 18.6 38,136 13,350 Poland

Portugal -2.7 -0.9 9.6 -0.8 -3.8 2.2 65.5 15.8 32.8 29.7 65.8 2.7 17* 10,627* 3,906 PortugalRomania -7.1 5.6 6.9 13.7 n/a 12.8 32.2 9.0 3.6 1.9 86.1 2.9 14.0 21,680 7320 Romania

Russia -7.9 8.8 8.6 28.0 22.8 19.1 19.0 11.7 0.8 4.6 220.9 2.7 13.2 141,900 53,000 Russia

Serbia -2.9 6.6 16.6 -0.3 n/a -2.0 28.5 0.1 2.4 3.0 185.2 2.9 17.2 7,498 2,521 Serbia

Slovakia -4.7 1.6 12.1 -1.3 n/a -0.5 50.0 15.0 26.0 4.99 199.0 2.9 12.1 5,424 1,905 Slovakia

Spain -3.6 -0.3 18.0 -0.4 -0.1 -3.3 52.7 9.7 31.5 28.3 158.0 2.7 15.7 46,746 16,761 Spain

Sweden -1.5 1.2 9.3 3.0 0.6 3.4 69.6 5.4 17.0 23.9 135.0 2.1 19.0 9,300 4,430 Sweden

Turkey -4.7 6.5 14.0 9.0 n/a 10.9 47.2 10.6 7.7 4.1 233.3 4.1 7.6 73,431 17,910 Turkey

Ukraine -15.9 15.9 6.9 13.0 10.1 27.7 11.2 3.0 0.3 2.0 436.0 2.6 15.9 45,963 18,200 Ukraine

Key Indicators Table Year 2009

76

*2008

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MACRO - ECONOMIC FMCG FMCG DEMOGRAPHIC

COUNTRIES

G D P c h a n g e

( % )

I n a o n

( % )

U n e m p

l o y m e n t

( % )

T o t a

l F M C G s -

% c h a n g e

( v a l u e )

F r e s h

f o o

d s -

% c h a n g e

( v a l u e )

P e r s o n a l c a r e -

% c h a n g e

( v a l u e )

S u p e r m a r

k e t /

h y p e r m a r

k e t s h a r e o

f a l

l

F M C G c a t e g o r i e s

( % )

H a r

d d i s c o u n t e r s h a r e o

f

a l l F M C G c a t e g o r i e s

( % )

P r i v a t e L a

b e

l s h a r e

( % )

A v e r a g e

b a s

k e t s i z e

( )

- t o t a

l g r o c e r y

( S p e n

d

p e r t r i p

)

F r e q u e n c y o

f p u r c

h a s e p e r

y e a r -

t o t a

l g r o c e r y

A v e r a g e

h o u s e

h o

l d s i z e

% 6 5 y e a r s o r o

l d e r

P o p u

l a o n

( 0 0 0 s )

N u m

b e r o

f h o u s e

h o

l d s

( 0 0 0 s ) i n t o t a

l c o u n t r y

COUNTRIES

THE AMERICAS THE AMERICASArgen na 0.5 6.2 8.4 16.7 n/a 19.0 32.6 6.6 4.5 4.5 165.0 3.5 10.8 40,100 11,200 Argen na

Bolivia 3.4 0.3 7.8 18.0 n/a 28.0 8.0 n/a n/a 3.3 278.3 5.0 n/a 10,227 1,237 Bolivia

Brazil -0.2 4.3 8.1 17.3 n/a 18.3 60.0 1.0 0.9 4.5 180.1 3.3 10.1 192,918 57,656 Brazil

Chile -1.5 1.7 9.7 9.9 n/a 13.0 66.7 0.6 5.2 7.9 142.1 4.0 9.0 17,094 3,776 Chile

Colombia 0.3 2.0 12.0 13.0 n/a 11.0 17.1 n/a 3.3 3.8 250.7 3.9 6.3 45,438 10,571 Colombia

Costa Rica -2.7 2.3 4.9 9.3 n/a 3.7 18.2 37.8 4.0 9.9 47.5 3.6 38.5 4,163 1,128 Costa Rica

Ecuador 1.0 4.31 7.9 26.0 n/a 17.0 39.4 n/a n/a 4.0 263.5 4.2 n/a 14,178 1,011 Ecuador

El Salvador 0.0 0.5 6.3 -2.7 n/a -14.1 18.2 8.1 0.4 5.3 91.3 3.9 32.7 7,673 1,945 El Salvador

Guatemala -2.0 1.3 3.2 -16.6 n/a -13.8 3.6 17.7 0.2 5.8 55.1 5.1 25.8 13,678 2,679 Guatemala

Honduras -2.3 2.0 3.5 11.9 n/a 1.1 20.6 12.6 0.1 8.1 74.4 4.7 30.9 7,511 1,578 Honduras

Mexico -6.5 3.6 5.5 5.1 n/a 2.6 26.8 n/a 1.7 4.2 279.6 4.0 7.3 107,551 27,514 Mexico

Nicaragua 0.0 1.0 5.6 2.2 n/a -7.7 4.1 20.0 0.6 10.5 50.7 4.1 31.4 5,887 1,420 Nicaragua

Panama -7.5 3.7 5.6 -8.1 n/a -24.4 67.5 0.0 0.3 6.0 61.3 3.6 32.7 3,363 933 Panama

Peru 1.0 0.3 7.2 2.0 n/a 6.0 13.0 n/a 1.0 4.0 227.0 5.0 6.4 29,132 6,771 Peru

USA -2.4 -0.4 9.3 3.3 -3.6 -2.1 55.9 14.8 17.7 29.0 57.3 2.6 21.2 307,007 117,181 USA

Venezuela -3.3 25.1 6.6 24.0 n/a 23.0 44.1 n/a

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Western Europe

General economy Key drivers in FMCG categories

In 2009, GDP in Austria contracted by 3.4%.

As from the middle of the year, merchandiseexports and industrial output started heading up asa result of the expansionary policy stance adoptedworldwide. The recovery is set to con nue in themonths to come, allowing GDP to grow by 1.5%in 2010.

Capacity u liza on, which con nues to be low, willnot provide incen ve for higher investment. This isone of the reasons why unemployment will keeprising, to a forecasted rate of 8.1% in 2010.

The general government balance will deteriorateto a de cit of around 5.0% of GDP.

Volume trends throughout 2008 and into thebeginning of 2009 were fairly weak. However, theend of 2009 showed much more stability as foodin a on dropped below 0%.

A key issue for volume in 2009 has been thereduced shopping frequency leading to the loss of lighter discre onary buyers. This remains an issue.

Down-trading, to Private Labels and Discounters,disappeared towards the end of 2009 a er longperiods of consumers seeking lower priced goods.This is closely linked to the development of FMCG prices.

Retail trade Media

In 2009 Supermarkets and Hypermarkets wereable to win back some ground from Discounters.Their con nued focus on price promo ons andincreasing assortment of Private Labels helpedRewe and Spar secure the loyalty of the more pricesensi ve households. Overall, shopping frequencydecreased partly due to more shoppers wai ng forthe next price promo on day.

The stagna on in the rst half of 2009 led to anew wave of price wars among Discounters in thesecond half of the year. However, these price cutsdid not correspond with the buying intensity of households. Therefore, Discounters su ered froma decline in Q4 (-4%), with the excep on of Lidl.This was due to their focus on permanent pricereduc ons in contrast to the temporary limitedprice promo ons of compe tors.

The total adver sing expenditure decreased by-0.4% due to the economic crisis, totalling 2.7million in 2009.

Adver sing expenditure on Outdoor and Televisionshowed an increase of 4.1% and 0.8% respec vely,whereas both Radio and Print lost 3.3% and 3.8%respec vely.

Again the biggest winner was online adver singwith a growth rate of 32.8%. 70% of internet usersaged 14+ o en use at least one social network,

Facebook being the most prominent pla orm.


Belgium felt the consequences of the globaleconomic crisis with liquidity problems, layo s anda large impact on consumer con dence.

The unemployment rate increased signi cantlyin 2009.

The year also saw a decline in foreign investmentswhich had a nega ve e ect on GDP (-3% compared

to 2008). The year saw certain other notable changes, for

example a tendency for purchasers to buy secondhand cars over new ones. IT technical productsexperienced growth whilst electronic consumerproducts such as televisions saw decreased sales.

Annual turnover within FMCG con nued to growbut at a much slower pace than in previous years.

Nega ve in a on was experienced for the rstme in y years.

Households seemed to adopt the mo o of less ismore throughout 2009.

The economic situa on meant that Belgianstended to eat at home more o en than before.

Fresh Meat, Chicken, Vegetables, Spices and TasteMakers increased their volume of sales signi cantlywhilst sales of their frozen and canned equivalents

declined. Flour and Home Baking products alsosaw an increase in sales.

The year was marked by erce price reduc onsfrom many retailers.

Belgians invested more money in Beauty andPersonal Care products (e.g. Skin Care, Deodorants,Depila ng products) in 2009.

Washing Machine products, Chewing Gums andSyrups also experienced growth.

Retail trade Media

Hard Discounters su ered in 2009 as buyers weremore a racted to Classic Super/Hypermarketswhich o er a wide range of branded products inaddi on to Private Labels.

In addi on to their Premium Private Labels,Supermarkets and Hypermarkets developed

cheaper Private Label alterna ves whichunsurprisingly have led to an increase in the shareof the market held by Private Labels.

Na onal spend on adver sing reached almost 3.2billion a very similar gure to the previous year.

Internet Adver sing increased its share of themarket by 9% and generated 129 million.

Television Adver sing s ll dominates the marketwith a 40% share and managed to increase its

share by 3%.

Print and Radio media lost market sharethroughout the year.

The food industry represented 13% of totaladver sing investment in Belgium in 2009.

Austria Belgium

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GDP saw a drop of 4.5% whilst the in a on ratewas 1.3%.

Unemployment connued to rise to 6%, but at aslower rate than in previous years.

Private consump on of FMCG remained stablewhilst white and brown goods experienced adrama c plunge in turnover.

Real estate prices remained low compared to 2007however it appears that the decline has nished assmall increases were experienced.

The Krone remained strong throughout the yeardue to governmental monetary policies.

Compared to their Norwegian and Swedishneighbours, Danes enjoy cooking their own food this is demonstrated by the very small propor onof the Danish market that convenience productsoccupy. This considered, certain convenienceproducts (such as Ready to eat bags of Carrots andPrepared Salad) did experience growth in 2009.COOP introduced a new brand called C

for convenience.

Private Labels expanded throughout the year withmore retailers expanding their own ranges andintroducing discount lines.

A controversial report is intended to be publishedsoon commen ng on the price trends for FMCG inDenmark compared to other European countries. Itis expected to show that Danes pay more for theirFMCG products than most other Europeans do.

Retail trade Media

Discounters spurred growth in the FMCG marketthroughout the year.

KIWI entered the marketplace introducing anecologically aware discount alterna ve.

Growth in discount was primarily driven by spendper household due to an increase in number of shopping trips products were purchased on.

To bene t from the changing situa on, numeroussupermarkets introduced new Private Label brandsto expand their current range.

Na onal spend on Adversing fell by 25%comparing the rst half of 2009 to the rst half of 2008. A decline in Print Media spend led this trend,however Television Adver sing also su ered lossesof 20%.

The only growth in the market was experienced byCinema adver sing where Media spend increased

by 17%.

Despite the fact that Denmark is the number onecountry in the world for most Facebook users percapita, even this usage has failed to prevent the17% decline in Media spend.


Although the rst quarter of 2009 resembled thatof 2008, the French GDP declined in 2009 as aresult of the global nancial crisis and in a on.Despite this, slight recovery was seen in thesecond semester.

Experts now expect a 1.4% growth in 2010 amuch higher gure than was expected just sixmonths ago.

In a on stopped due to the falling pricesof commodi es.

Unemployment has risen to 9.8% and is expectedto con nue to rise.

Private consump on has remained constant inthe French economy whilst FMCG products areexperiencing a period of growth once again, havingdeclined in 2008.

In 2009 there were three key categories whichspurred on FMCG sales in France products whichare convenient and easy to use (such as Smokedor Canned Fish, Cooked Meats and Pre-packagedBread), Luxuries or Treats (for example Foie Gras,Chocolate Bars and Alcohol) and Fresh Produce.

Good weather in 2009 meant that sales of SoDrinks were high, although families with childrenwere less inclined to buy So Drinks.

Private Labels experienced the highest salesto date.

Despite the crisis, consumers did con nue to buysome of the more expensive products.

Organic produce and new products con nued toperform well.

Retail trade Media

Having had a very successful year in 2008, hard-discounters su ered in 2009 - their core clientelefalling slightly.

Other retailers have managed to claw back salesfrom such Discounters with the help of PrivateLabels which climbed to an all me high in 2009before levelling o towards the end of the year.

Leclerc, Carrefour and Systme U all increasedtheir market shares over the year. Shoppers wereless loyal to their main retailer, mixing more shopsto get best bargains.

Media investment slowed down throughout theyear with companies freezing their expenditureduring the nancial crisis.

FMCG companies were more con dent in theiradver sing, spending 12% more than they didin 2008.

Internet Adver sing was s ll the most ac ve

area in adver sing however even this methodexperienced a slow down in 2009.

Television remained crucial to Media Planning,increasing by 5%.

Radio Adver sing experienced a 9% increasewhilst the press and Outdoor Adver sing su ereddeclines in usage.

Denmark France

Western Europe

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In 2009 GDP fell by 5%.

The economic slump in 2010/2011 is expected toa ect the job market, although the decline will bea lot less serious than was originally expected.

The unemployment rate increased marginally from7.5% to 7.8%.

Indicators suggest economic recovery, an increase

in available incomes and rising prices for thecoming year.

The economic crisis has not fully hit consumers yet.

Apparently, declining prices had a much strongerin uence on shopping behavior than theeconomic situa on.

The tendency to eat at home due to the nancialcrises helped a that volume increased in 2009.

Declining prices had an e ect on price comparisons

as there was less shopping around (decreasedfrequency) and more one-stop shopping(increased trip size).

Retail trade

Retailers and manufacturers were caught up in avicious circle with the need to increase their priceswhilst being pressurised to provide promo ons.

Su rprising ly however, there was no trend favouringdiscounters or Private Label in 2009.

The year was marked by Discounter stagnaon andthe revival of middle brands.

It is predicted that Branded Products willexperience value growth over the coming month.


Price In a on decelerated in 2009 to end theyear at just 3%. Further fall in the value of thePound Sterling appeared to have li le impact onGrocery prices.

Overall the Recession was severe with 5% GDPdecline for the year. However 2010 is expected toshow (slight) recovery.

Unemployment rose to 8% but appeared tose le at this level, which is lower than forprevious recessions.

FMCG Consumer Spending grew by 5%, but thisrate decreased over the year. Fresh & Chilled Food& Drink grew by 4% while Ambient Food & Drinkgrew by 6%, with Frozen Foods up by just 3%.Toiletries and Healthcare Spending also grewby 3%.

Value for Money was a key driver in 2009, but wesaw a slowdown in Health as a driver given theeconomic pressures shoppers were under.

Alcohol enjoyed the strongest growth (7%) withthe Grocery Trade bene ng from drama cpromo onal ac vity all round.

Spending on Canned Foods was up 10% but this

was driven by 14% price increases due to nplateprice rises: Volumes were down.

Many of the Growth Categories were in ChilledPrepared Foods (e.g. Salads, Cakes, Prepared Fruit& Vegetables, Desserts, Pizzas)

Yogurts saw a further 9% Value Growth to reach1.35bn with 5% Volume Growth.

Retail trade Media

Top 4 Mul ples con nued to grow, reaching75.5% share of the Great Britain Grocery market.Morrisons was once again the strongest groweramong the Top 4.

Hard Discounters growth in Britain rapidlystagnated, holding at 6% market share, despiteopening more stores. Limited Range seems to limittheir appeal.

The trend to shopping around stabilized, withretailers focusing on Loyalty building.

Over 30% of all grocery purchases were boughton Promo on.

Budget Private Label peaked and fell back as therewas a small recovery for Premium Private Label.

Grocery Internet Shopping now has a 4% share andis currently growing at 20%.

Adver sing expenditure among the Top 100Adver sers fell by 940m in 2009 a reduc on of nearly 10% year-on-year as brands struggled tomanage the impact of the Economic Downturn.

TV & Outdoor su ered, with outdoor down by14%. Cinema Adver sing grew by 5%, whilstInternet Adver sing grew 10% to reach 560m

Early indica ons are that Adver sing will enjoy amodest recovery in 2010.

2010 will see the further development of HighDe ni on (HD) TV & the launch of 3D, both will behelped by the World Cup.

Germany Great Britain

Western Europe

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2009 has been described by some economistsas the toughest year for Irelands economy sinceindependence.

2009 saw the collapse of the banking and buildingsectors within Ireland which has severely damagedthe countrys economy. GDP fell by -7.1% for theyear 2009. Unemployment has risen to 13.4%, thehighest rate since the mid 1990s.

The situa on has been compounded by strikes inthe public sector over pay cuts introduced to tryand nego ate the countrys de cit.

The FMCG sector has su ered in the full year to2009 with overall value declining by 3.6%.

Of all the categories in FMCG, Ambient Grocerieswas the only one to record value growth in 2009,whereas Personal Care was driving the decline witha reduc on of -8.6%.

De a on took e ect throughout the year lowering

prices in FMCG and volume growth rates wereposi ve in 2009.

Shopping habits changed for households as theymade more frequent smaller trips to more retailersin an a empt to seek out the best deals.

Retail trade Media

Tesco con nue to have the majority share inthe market and a er a slow start to the year,a campaign aimed at lowering everyday priceshelped improve performance and drive annualshare growth.

Discounters con nued to see good growth in2009 picking up where they le o in 2008.Their overall shares of the market increased by 1percentage point to 8.3% of the total Take HomeGrocery market. However, much of this growth wasachieved through new store openings.

Stores across the border in Northern Ireland haveincreased their share of the market as consumerscross the border to take advantage of favourableexchange rates.

Adver sing spend for 2009 came to an es mated1.25 billion for Broadcast and Print Media andis down 25% compared to 2008. Online Mediaspend is expected to have reached between 80and 100 million for 2009, growth from the2008 levels.

IrelandGreece

Western Europe


2009 closed with nega ve GDP growth of -2.0% inGreece and even more nega ve expecta ons forthe future.

Last year was a cri cal year with high publicde cit, high debt, rising unemployment and anescala ng recession.

In a on was kept low due to price decreases last

year. However, by end of 2009 and beginning of 2010, Greece was faced with a rise in the price of fuel and an increase in VAT for all goods.

From the start of the recession at the end of 2008,buyers tried to lower their expenditure, resul ngin smaller basket sizes. P urchased frequencyincreased however, which was the growth driverfor most categories throughout the year, un lQ4 2009.

Private labels are growing year on year and theyhave accelerated their growth rate during 2009.

The growing staying in trend, which has becomethe new going out, has lead categories relatedto ea ng and cooking at home to grow in bothnumber of buyers as well as frequencyof purchase.

The one product for all family trend ledspecialized or func onal products to decline asbuyers are focusing on key main products for theen re household.

Retail trade Media

Increased shopping frequency has led to anextended repertoire of retailers visited which hada pressing e ect on store loyalty. As frequencyis returning to former levels the opposite e ectbecomes visible.

In 2009, Supermarkets have gained back fromTradi onal and Discounters.

Tradi onal bene ted from the purchase frequencyincrease, but this trend has changed near the endof 2009.

Discounters Dia and Lidl have su ered shareloss in 2009. Dia is expected to exit the Greekmarket by mid 2010. Outlets will be absorbedby the Group Carrefour. Lidl announced a newexpansion strategy which entails opening smallerneighborhood stores.

Aldi has entered the market, but is s ll asmall player.

In this rather gloomy economic environment,media adver sing spend has declined by -17.1%in 2009.

Radio su ers the biggest rela ve decrease(-22.6%), followed by magazines (-20.1%),Television (-17.1%) and lastly newspapers (-7.7%).

Magazines s ll absorb the biggest share of adver sing spend (40.2%), followed by TV (32.3%),newspapers (20.0%) and radio (7.5%).

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The GDP experienced -4.0% decline in 2009 (+2.0%in 2008). The forecast for 2010 is more posi ve,with expected GDP growth of 1.5%.

The in a on rate was 1.2% (2.5% in 2008). For theyears 2010 and 2011 an in a on rate of 1.3% to1.5% is forecasted.

The unemployment rate increased from 3.9%

in 2008 to 4.9% at the end of 2009. A drama cincrease to 6.5% is expected in 2010.

The Average Family Income was 32,500 a year,the average expenditure 28,903.

The FMCG market has been dominated bypromo ons. The promo on share increasedfrom 11.6% in 2008 to 14.5% in 2009 (withinSupermarkets including Discounters). Thedecrease in con dence in the economy has putthe Other Channels, also known as SpecialistShops under pressure.

Customers choose the Supermarket instead of theSpecialist Shop (trading down).

Fresh Foods and Chilled Food show less growth in2009. Packaged Groceries and Frozen Food onthe other hand increased growth. Also PersonalCare and Home Care categories con nued to growin 2009.

Retail trade Media

Total FMCG grew by 1.8% in comparison with 2008,but this was less towards the end of 2009.

C1000 lost customers due to selling stores toAlbert Heijn. Jumbo has taken over Super de Boerat the end of 2009, and have started conver ngthe outlets to Jumbo stores. This will con nuerapidly in 2010. Some of these stores were resoldto C1000. C1000, Jumbo/Super de Boer started aprocurement organiza on called Bijeen, whichwill start opera ng in 2010.

PL is s ll growing; retailers like Jumbo andDetailconsult are catching up with Albert Heijn.

Nearly all retailers except Albert Heijn show adecrease in loyalty. Due to high and increasingpromo onal pressure, consumers are making more(di erent) shopping trips.

Market share of Albert Heijn s ll increases in2009. Share of Aldi is stable, while share of Lidl isshowing a slight increase, due to more customers.

The net media expenditure declined drama cally(-15.1%) in the rst half of 2009, compared to thesame period in 2008 (+3.8%).

All media types showed a decline. The biggestdecline was by press, -21.4%. A er years of doubledigit growth even Internet showed a decline of -2.4%. Within Internet only Search showed agrowth of 2.4%.

Audiovisual Media declined with -12.5%. Radioshowed a somewhat bigger decline than TV.Cinema performed well to stabilise.

Netherlands

Western Europe


Last year, the nancial crisis had a par cularlymajor e ect on the Italian economy, more than thee ect on other developed countries.

Unemployment soared to 8.5%.

Private consump on decreased, led speci cally byElectronics and Durables. Future forecasts howeverseem posi ve - the worst should have passed.

The average annual expenditure of FMCG grew by1.6%, driven by Personal Care products.

The sharp decline of price in a on increasedconsumer con dence, which reached a higher levelthan in the last few years.

Purchasing behaviour is gradually movingto a mul -channel approach, showing a change

in consumer buying strategy. Consumers nowlook towards convenience in terms of both valueand quality.

Retail trade Media

Down-trading to cheaper op ons con nued in2009. Private Labels have grown across all modernstore formats and Discounters slightly expanded.

Proximity Channels gained loyalty within averagespending, as more consumers steer towardsconvenience.

Carrefour started the conversion process of allgroup banners; GS is now Carrefour Market, whileDperD became Carrefour Express.

Overall, adver sing spending decreased by -13.2%.

With the excep on of Internet, where spendingincreased by 5.1%, all media types had a nega vecontribu on to Adver sing. Television, Radio, Dailypress publica ons and Billboard pos ng decreasedby -10.2%, -7.7%, -16.8% and -25.4% respec vely.

Italy

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The impact of the world crisis has not been as badas expected in Portugal. According to the Na onalSta s c Ins tute (INE), the Portuguese economydecreased by -2.7% in 2009.

However 2009 was a good year for the Portuguesesavings indicators. The in a on rate was nega ve(-0.9%), average fuel prices dropped by 17.1% andthe interest rates for home loans also experiencedan important decrease.

The unemployment rate was at the highest ever(9.6%), but lower than in Spain or many othercountries in Europe.

Overall the FMCG market decreased by -0.8% invalue, but gained 3.7% in volume.

Households con nue to consume more andmore at home, restaurants and hairdressersbeing directly a ected. In 2009 Personal Care andHome Care categories grew, while in 2008 thesecategories had decreased.

The Fresh Foods category is also increasingwith price de a on helping to boost volumeconsump on.

Portuguese households are now visi ng fewerstores and buying larger baskets, comparedto 2008.

Retail trade Media

The Con nente and Modelo (Sonae Group)strategy paid o in 2009 and Con nente reinforcedtheir market leadership. Pingo Doce is now thesecond most important retailer in Portugal, dueto the conversion of Feira Nova stores into PingoDoce stores.

Private Labels reached 32.8% market share, buttheir growth is slowing down.

D iscounters had a bad year, mainly due to theincreasing o er of Private Labels by mainstream

retailers. To reverse this situa on, Lidl aired anadver sing campaign on television for the rstme at the end of the year, with good results.

Adver sing spend decreased by -15% in2009, down to 4.78 million Euros according toMediaMonitor. 73.6% was spent on Television,15.3% in press, 6.4% in Outdoor Media, 4% onRadio and 0.5%in Cinema.

LOreal was the largest adver ser in the Portuguesemarket, followed by Sonae (leader in FMCGretail) and Procter & Gamble in third posi on.Modern Distribu on is also one of the most ac veadver sers this year.

Around 48% of Portuguese households haveInternet access and about 87% of Internet usersvisited social networks sites in 2009.

Portugal

Western Europe


GDP decreased for the rst me in 20 years, by-1.5% vs. 2008.

However the economy started recovering fromQ2 2009.

Unemployment rate remains low at 3.3% inDecember 2009, slightly increasing vs.previous year.

The Norwegian Crown (NOK) stands atapproximately 8 NOK for 1 EUR.

FMCG value sales rose by 1.4% vs. 2008, mainlydriven by increased food prices.

Despite retailers development of Private Labels,consumers preference towards well-knownbrands remains, partly thanks to the strength of the Norwegian private economy having a posi veimpact on households purchasing power.

However retailers with a discount posi oningcon nue to grow market share, a rac ng moreand more shoppers.

Retail trade

So Discounter Rema 1000 had a good impact onbarbeque sales thanks to a major campaign overthe summer.

In the autumn, Rema 1000 launched a newcampaign communica ng low price Dinner forless than 100 NOK, followed by Ica with asimilar concept.

On the opposite side, Meny launched premiumPrivate Label products across various categories.

Ica Retail Group is rebuilding its por olio aroundthree store fascias: Rimi that will include most of the exis ng Ica Nr outlets, Ica Super and Maxi.

Norway

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Croa as economy contracted strongly in 2009,with GDP down by -6%. The drop in output wasmainly due to a signi cant decline in domes cdemand. Household consump on fell by -9% whichis a consequence of the con nuing decline inhousehold lending, par cularly on car purchases.

The worsening situa on has translated intoemployment losses. Based on registra on data theunemployment rate rose to over 16% by the endof 2009.

In a on slipped to 2.5% in 2009. Croa an Na onalBank (CNB) managed to keep exchange rates in aght range.

Grocery basket con nues to account for the keypor on of households expenditure. Due to growthof prices more consumers started to buy on specialo ers. They are being more ra onal than beforeand started to pay more a en on to lea ets.

Konzum the leading retailer adjusted quicklyto those changes and has decreased the prices of 1000 most sold ar cles within their stores. Thiswas accompanied by publishing of Dnevni list, alea et which lists special sales of products, but inform of a daily newspaper.

Emerging categories are: Toilet Soaps, Semi-dryCheese, Dishwashing Products and Instant Co ee.

Retail trade Media

Modern Trade Channels con nue to grow asa consequence of stronger consolida on andconcentra on; they hold 59% market share.

Lidl, the only discounter in Croa a, is growing andis now among the top 5 leading retailers.

The global crisis led to changes in basic trendswithin trade: Consumers are trying to ra onalisetheir purchases and are changing their habits.Households are looking for cheaper prices but thisdoes not exclude quality of product.

Growing share of Private Labels is anotherconsequence of newly established trends. PLsshare grew from 11.9% in 2008 to 13.6% in 2009.

Year 2009 globally classi ed as year of recessionle its mark in Media as well. Total drop of adver sing market value in Croa a is es matedat -16%.

Despite the crisis, TV s ll holds the highestpropor on in media distribu on in Croa a.This trend is a consequence of high level of TVConsump on which grew due to crisis. Croa anconsumers are going out less frequently andare spending more me at home. TV is closelyfollowed by Print Media, Radio and then Internet.

For 2010 it is predicted that most of the printmedia will switch to on-line edi ons which willfurther improve the importance of Internet.

Croa a

Eastern Europe/Middle East


GDP decreased by -5.1% in 2009, from -3.5% in Q1to -6.2% in Q4. A 1% growth is forecasted for 2010,however there are no posi ve indicators so far.

In a on is es mated at 0.6% for December 2009and should remain close to the EU zone averagein 2010. The exchange rate between the localcurrency (BGN) and the Euro are xed by thenancial board so the currency dynamics followthe Euro.

Unemployment in 2009 stood at 7.6% which is+1.3pp above 2008 level. A f urther increase up to9% - 10% is expected by the end of the year.

Household spend increased slightly by 1.9%,mainly driven by price in a on (especially in Dairyand Home and Personal care). There was a slightdecrease in volume impacted by the decliningbuying frequency and mostly driven by necessityproducts. A further decrease at total FMCG leveloccurred at the beginning of 2010.

Spend per trip in Home and Personal Careincreased thanks to higher prices but also to biggerbasket volume sizes.

Non-necessity categories increased signi cantly involume terms in 2009, bene ng from householdssaving on out-of-home consump on for moresophis cated products at home.

Retail trade Media

M odern Trade con nued to grow, mostly at theexpense of small grocery shops, although thistradi onal channel s ll accounted for 43.4% of sales in 2009. Supermarkets and Hypermarketscaptured a 31.6% share vs. 27.4% a year before,mainly driven by the expansion of big supermarketchains, like Billa.

Carrefour opened its rst store in Bourgas in 2009and will open the second hypermarket in thecapital city in April 2010.

Discounters also con nued to gain share, reaching8.1% vs. 6.6% in 2008, dominated by the SoDiscounter Kau and. Hard Discounters Penny andPlus also opened their rst stores.

In this context, Private Labels gained share,accoun ng for 5.4% of total FMCG volume.

Over 460 million Euros were spent on adver singin Bulgaria in 2009, a decrease of -14% vs. 2008mainly in TV and press the rst decrease in5 years.

Despite an -18% decline in TV Commercials, thismedia s ll dominates the market with around71% share.

In 2009 there was a signi cant increase of 32% inRadio adver sing and a slight increase in Outdoorof about 3%.

Internet Adver sing spend remained stable in2009, s ll accoun ng for a very small market share.

Bulgaria

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The rate of unemployment has increased to10.2%, while real income despite a lower rise inconsumer prices than a year before (4.2%) hasfallen by 2.4%.

The total turnover of fast moving consumergoods on the basis of households purchaseshas remained stable in value in 2009 comparedto 2008.

The annual Food In a on Rate is 4.4%, whichmeans the volume of the fast moving consumergoods market has fallen this year.

Cross use between chains has slightly increasedcompared to last year; the average household goesshopping to over eight retail chains during a year.

The propor on of Private Label products has beenincreasing within the purchases of longer term butthis has not con nued in 2009 and the share hasstabilised at 26%.

Retail trade Media

The supermarket channel has achieved the highestincrease in 2009, mostly resul ng from morestores (including the conversion of former PlusDiscounts into Spar Supermarkets).

D ue to the closedown of Interfruc t last year, theCash & Carry Channel lost some of its share thisyear to 2%.

Spar achieved the most dynamic increase inits market share this year (partly due to theconversion of Plus shops). The second fastestgrowing chain is Lidl, the winner last year.

Households now pay for 36% of the privatepurchases using cards.

Hungary



Czech GDP declined by 4.2% in 2009 comparedto 2008.

The rate of in a on decreased from 6.3% in 2008to 1.0% in 2009. This development was in uencedby many factors, such as by a drop in prices of Food and Non-alcoholic Beverages, Automo veFuel and Cars.

Czech unemployment rate has in last quarter 2009increased markedly in comparison to the fourthquarter of year 2008 and reached the level of 7.3%(up by 2.9pt compared to Q4 2008).

In almost all monitored categories the trendswere posi ve, except for Milk Products and FatProducts. This is due to decrease of the averageprices in almost all milk segments. In volumeTotal Cheese increased, Fresh Milk and UHTdecreased, Milk Cream, Milk Desserts and Yoghurtdeveloped posi vely.

The healthy living trends we can see in posi vetrends for Milk Products like Fresh Cheese,Fermented Milk Drinks and Yoghurts; for ColdDrinks like Fruit Juice, Ice Tea; for Hot Beverages

Herbal and Green Tea.

Retail trade

Former growing trend of Discounters decreased in2008 and in 2009 con nued to drop to 19% share(from 22% in 2007 and 21% in 2008).

Supermarket chains are strengthening theirposi on and reaching level of 14% and togetherwith Independent Supermarkets reaching the levelof more than 16%.

Private Label share declined slightly from 20% to18% of total FMCG. Branded Products increasedtheir share thanks to branded products purchaseson promo on. 34% of total FMCG expenditureswere purchases of Branded Product on promo on.This share increased markedly from 26% in 2008 to34% in 2009.

Czech Republic

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The Polish GDP grew by 1.7% as result of thesitua on in Polish nancial ins tu ons which arenanced mainly by deposits. This meant that badcredit and banks could be avoided.

The na onal in a on rate was 4%. The Zloty wasweaker than the Euro in 2008 but this helped thepro tability of Polish exports.

The unemployment rate in Poland remainedconstant at 9.1%.

Private consump on remained the same indica ngthat Polish households were not vic m to the samedebts as other crisis vulnerable countries.

FMCG expenditure grew by 7% compared to 2008.

Some of the fastest growing FMCG categories inPoland were: Mouthwash (+58%), DishwasherProducts (+33%), Lollipops (+30%), Car AirFresheners (+28%) and Insect Repellents (+28).

40% of all monitored categories were subject toprice increases which were higher than in a on.

Retail trade

The amount of Modern Trade increased, mainlyas a result of a growth in Discounters (+21%).Supermarkets and Hypermarkets also experiencedan increase in ac vity.

Down-trading was observed in Poland in 2009 asconsumers chose to buy cheaper products and thismeant that shares in Private Label grew.

Poland



O c ial state sta s cs indicate that Kazakhstanseconomy grew by 1.2%.

The in a on rate was lower than in 2008 at 6.2%compared to 9.5%.

The Kazakhstani Tenge weakened by 16.2% againstthe Euro.

The rate of unemployment in 2009 remained equal

to that of 2008 at 6.6%. Private consump on increased 7.3% compared to

2008 levels.

Compared to 2008 gures, all FMCG categoriesexperienced growth in 2009, most notablyPersonal Care (+31.4%), Fresh Food (+29.1%), PetFood (+28.1%) and So Drinks (28.0%).

The average increase in price of food productswas much lower in 2009 than it was in 2008 (+3%compared to the previous +10.8%). Conversely,prices of non-food products grew by 8.6% in 2009compared to +5.7% in 2008.

Retail trade Media

Modern Trade Channels retained their share of themarket as in 2008 (15.3%).

The number of consumer Outlets experiencedsmall reduc on.

45.5% of the total popula on of Kazakhstan hadaccess to the Internet in 2009.

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The impact of the global economic crisis onRussian GDP exceeded experts expecta ons falling6% compared to a predicted decline of 4%.

The rate of in a on was lower than expectedat 8.8%.

Unemployment rates in Russia were also lowerthan expected at 8.4%.

It has been forecast for next year that, despitethe impact of the economic crisis, the decline willdecelerate and gradually the Russian economy willbe restored.

C ompared to 2008, 2009 demonstrated a TotalFMCG growth in value of 23.8%. This growth canbe mainly a ributed to the Chilled Foods, Homecare and Packaged Grocery sectors. The lowest rateof growth was witness in the So Drinks sector.

The fastest growing food categories by value in2009 were Roasted Co ee, Frozen Fruits andVegetables, Sugar and Cereals.

The largest decline in value was experienced byEdible Oil and Fish Products.

Retail trade

Modern Trade share reached 36.1% in 2009 incomparison with 28.6% in 2008.

X5 remained the largest Russian retail chainthroughout the year.

Magnit remained the largest regional discounterand the program of opening new hypermarketscon nued.

The growth of Private Label Brands grew evenmore than in 2008 (0.8% compared to 0.6%).

Russia



In 2009, GDP contracted by 7.1% due to a steepdecline in private consump on and investment.

The in a on rate was 5.6%, less than the 7.9%level reached in 2008.

Romanian na onal currency was weaker: in 2009the annual rate reached by RON against EUR was4.2 whilst, compara vely, in 2008 it was 3.7.

The unemployment rate increased to 6.9%(compared to 6.2% in 2008) and is predicted tocon nue rising due to the expected layo s inpublic sector.

In 2009 FMCG in-home consump on increased by6% in value compared to 2008, due to an increaseof average price paid.

The Top ve categories that increased last yearare Kitchen Towels, Toilet Cleaners, Shower Gel,Mayonnaise and Bu er. For other categories, therewere smaller growth rates and even declines.

Retail trade Media

The Modern Trade formats play an increasinglyimportant role in the retail scene, accoun ng foralmost 43% of the total FMCG expenditures. InBucharest the Modern Trade dominates, coveringalmost 74%.

Discounters were the fastest growing channel -market share increased from 6% in 2008 to 9% in2009, especially due to Pennys higher numberof outlets.

P rivate Labels market share in value remainedthe same as in 2008, 4%. The categories in whichPrivate Label is the most important are Edible Oil,

Bu er, Toilet Cleaners and Paper Products (KitchenTowels, Napkins and Handkerchiefs).

In 2009, adver sing expenditure dropped strongly.The es mated level reached is 350 millionEUR, almost 40% smaller than 595 million EURregistered in 2008.

Even if only one third of all Romanian have internetaccess, they are some of the most intensive usersof social networking in Europe. Almost a quarterof urban internet users read on-line media and usedaily social networks such as Facebook, Twi er,Hi5, while 11% of all users read or write daily onblogs.

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At the beginning of the year Slovakia adopted theEuro without any problems.

The adop on of the Euro had a posi ve impact onin a on which dropped to a record low of 1.6%.

GDP declined signi cantly in 2009, althoughreports of Q4 show a 2% recovery. This recovery ispredicted to con nue throughout 2010.

The volume of exports and imports dropped by20% and 21% respec vely. The Slovak economyhas always been highly dependent on exports(speci cally automo ves) and so the country washit hard by the sharp decline in foreign demand.

Despite an -crisis e orts made by the government,the unemployment rate con nued to rise to 12.1%.

Overall FMCG consump on decreased by-1.3% (value).

Consumers bought the same volume of goodsbut at cheaper prices, taking advantage of outletpromo ons (both Branded Products as well asPrivate Labels).

The market share of Private Labels in Slovakia

is rela vely high (26%) in comparison toother countries.

Sweet Snacks, Hot Beverages, Hard Cheese andYoghurts all experienced growth in 2009.

Sales in Personal Care remained constant whilstHome Care Products su ered an 8.3% decline.

Retail trade Media

Hypermarkets remained dominant with the highestshare of household expenditure. Kau and andSupernova led the growth.

Tesco remained stable whilst opening 8 new storesover the course of the year. They also introducedsmaller outlets (Tesco Express).

Amongst Discounters Lidl experienced slightgrowth to 11.5% of the market.

Billa opened 7 new stores and refurbished another

12 of their exis ng outlets.

Several retailers in Slovakia introduced loyaltycards in 2009.

TETA, a drugstore, began trading in Slovakiain 2009, opening up small shops throughoutthe country.

Adver sing expenditure decreased enormouslycompared to 2008 (-35%) as a result of theeconomic crisis.

Television Media was the hardest hit sector as theprice of TV Adverts dropped drama cally.

Internet Adver sing expenditure saw a decline of 5.4% compared to 2008.

The press transformed their sector to provideOnline Adver sing opportuni es as well as in print

in an e ort to keep hold of clients.

Slovakia



GDP predic ons for 2009 had been op misc butwere proven wrong as the nancial crisis gatheredmomentum, falling by 3%.

Unemployment increased due to the economicturndown and is forecasted to con nue to risethroughout 2010.

Purchasing power dropped in 2009. This was

re ected in a reduced overall consump on. The number of late payments for loans in 2009

increased by 3%.

In a on was limited to 6.6% with the help of astrict monetary policy set by the Na onal Bank.

It is es mated that 66,000 companies arecurrently unable to pay o their debts but we arewarned that the worst is yet to come in this greatliquidity crisis.

The global crisis impacted heavily onconsumers shopping habits. Reduced incomesmeant that purchasers became very sensi veto price increases.

Shoppers visited large outlets less o en andpreferred to buy only what was necessary fromsmaller, more local shops. This change in habithas led to the revival of small outlets and bucksthe global trend of tradi onal trade becoming lessimportant.

Promo ons proved very popular with shoppersin 2009.

Private labels also saw increased success in 2009as they managed to more than double their marketshare compared to 2008.

Retail trade Media

2009 was a di cult year for all retailers, withoutexcep on. The economic crisis meant that therewas very li le growth in the Serbian retail marketover the year.

Tradi onal trade and supere es retained over 50%of retail turnover, whilst hypermarkets managed tokeep their 5% share.

Retail turnover in Serbia fell by 12% comparedto 2008 due to a reduc on in consumersdisposable incomes.

Some chains (e.g. Pevec, Bravo & Tu) and manyindependent stores disappeared from the marketaltogether due to bankruptcy and take-overs.Others managed to successfully ght the crisis andimprove their market share par cularly withinthe top 10 accounts.

Some large interna onal chains used the nancialsitua on to enter the Serbian market (speci callyMr Bricolage, IKEA and Kika).

The crippling nancial situa on led to increasedcompe on in the Serbian retail sector meaningthat large retailers invested in bold adver singcampaigns (with emphasis on promo ons) to gettheir names into households.

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In 2009 GDP decreased by -15.9% in Ukraine.

Many Ukrainians stopped spending, and startedsaving as the average household disposableincome decreased by -8.5%. Householdconsump on fell by -14.2%.

The average in a on rate in 2009 was 15.9%compared to 25.2% in the previous year.

Forecasts for 2010 predict key indicators such asGDP, Household Income and Consump on to riseslightly. Levels will not return to those of 2008.

The government is expected to priva se many of the larger state companies in 2010 to deal with thenancial de cit accrued to date.

The growth of FMCG slowed down throughout2009: +40% in 2008 compared to +14% in 2009.This can be explained by massive price increaseson all FMCG categories, for example Tea +47%,Co ee +41%, Water +22%, Bu er +40%, Pasta+18%, Detergent +45% and HHC +44%.

Despite these signi cant price increasesconsump on barely changed in 2009.

The propor on of tradi onal goods bought hasincreased whilst secondary group purchaseshave decreased.

The categories which experienced the most growthin 2009 include Creams, R&G Co ee, Curd, SaltySnacks, White Fat, Oil, Sauces, Milk and Biscuits.

Retail trade Media

Within Modern Trade channels, Hypermarkets andDiscounters con nued to show the most posi vedevelopment over the year despite only occupyingsmall shares of the market. The most successful of these include Auchan and Karavan.

OKEY (Estonia) le the Ukrainian market su eringhuge debts allowing Auchan to double its numberof stores in Ukraine (from 4 to 8 by the end of the year).

The local chain ATB have managed to keep poleposi on not only amongst Discounters but allchains. ATB opened more than 70 new storesin 2009.

In Tradi onal Trade, small grocery shops con nueto show excep onal growth.

The increase of purchases made in small shopsmarks a decrease in the propor on of impulse orspontaneous buys.

The Media Adver sing Industry su ered a declineof 25% in 2009 having previously returned to the2005 indices.

Although Internet Adver sing only occupies 2%of the market in the Ukraine, it has experienceda period of massive growth (+45%) quiteastonishing considering the global nancial crisis.

Turnover in TV Adver sing decreased by -26%in 2009 although the TV Adver sing sector is

predicted to increase by 25% in 2010. Indoor Adver sing su ered the biggest loss over

the year (-50%).

Outdoor Adver sing operators were hit twice ashard when legisla ve limita ons for the adver singof Tobacco and Alcohol coincided with the climaxof the nancial crisis.

Experts predict that the media market will grow by15% in 2010.

Ukraine



Hit by the global crisis, the Turkish GDP decreasedfor the rst me in many years (-4.7%). Growthwas nega ve for the rst three quarters of 2009however the nal quarter demonstrated a 6%increase on the previous quarter.

In a on remained constant at 6.5% due to adecline in demand in many sectors.

The unemployment rate in Turkey increaseddrama cally to 14%.

Despite the e ect of the crisis on the Turkisheconomy FMCG value grew by 9% in 2009 one of the only sectors to expand during the c risis.

The average households spend per shoppingtrip increased by 8% whilst purchase frequencyremained almost the same as in 2008.

Meat Products, Paper Products and Cleaning

Products all exceeded average performance.

Retail trade Media

M odern Trade generated 48% of total sales thusincreasing its share of the market at the expense of small markets and grocery shops.

Discounters and na onal and local chains alsoincreased their share of the market.

Bim (a Turkish discounter) remaine d the largestretail channel in Turkey, followed by Migros. Bimgrew by 27% and increased its share of the marketto 7.5%.

Real opened the most new stores in Turkey in 2009of any retail chain.

The media sector was badly a ected by the globalcrisis. The total amount spent on Adver singdecreased by -15%.

Television Adver sing retained the highest share of the media market with 52%. Printed Media lost outwhilst Internet Adver sing increased its share from3% to 6.5%.

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A er several years of strong GDP growth, theArgen ne economy cooled down during 2009.

The year ended with the same GDP as 2008, be erthan most predic ons.

This also allowed a slowdown in the in a on rate,calculated at 6.2% by the government, and 15% byprivate agencies.

Local currency lost power against both the Dollarand Euro, ending the year 9% lower than it started.

Probably the best indicator is that theunemployment rate remained the same as it wasin 2008, making it possible for most households tocon nue expanding their FMCG consump on.

Personal Care was the best performing category,mainly because consumers at the bo om of thepyramid are becoming more likely to buy BeautyProducts, but also because many housewiveschanged their preferences from visi nghairdressing salons to in-home beauty treatments.

P roducts like Hair Treatment and Beauty Creamshad a good year.

Home Care also performed very well, as hygienehabits became more important during the swineu pandemic.

Products like Bleach, Cleaners and Disinfec ngAir Fresheners developed strongly duringthose months.

Retail trade Media

In a on urged consumers to search for be erprices resul ng in a growth of the modern tradesmarket share.

Nevertheless, the Global Crisis scared investors andfewer stores were opened in 2009 than in 2008.

Private Labels did not pro t from the crisis or thesearch of be er prices their poten al is yet to bereached in Argen na.

Adver sing spend grew by 17% during 2009, lessthan in 2008 (24%).

As in 2008, TV (air + cable) represented 48% of thetotal media investment.

Cable TV grew stronger than open TV, andgained 2 points of share, accoun ng for 9% of total investment.

Print media remained important (32% of marketshare) and grew by 13%.

Even though internet only represents 3% of allmedia investment, it grew by 31%.

The Americas

Argen na



Saudi Arabias es mated real GDP growth for2009 was approximately 0.15% - this situa on ispredicted to recover and grow by around 3%in 2010.

The annual in a on is es mated to have averaged4.4% in 2009, less than half of the record high(9.9%) set in 2008. In a on is predicted tocon nue to fall during 2010, with a forecasted endof year rate of 3%.

The number of unemployed people in Saudi Arabiahas risen to 10.5% of the popula on.

Government expenditures grew by 15.9% in 2009.

Credit condi ons are expected to improve in 2010,but should remain well below averages seen inprevious years.

Home and Personal Care Products saw growthled by sales in Fabric Wash and Shampoos andSkin Cleansing respec vely. This growth coincidedwith Personal Care experiencing the largest priceincreases, speci cally for Hair Removal and SkinCleansing Products.

Food and beverages sales (the largest subcategories for FMCG) declined. This decline wasevident par cularly in Juices, Co ee, Milk Powderand Soups.

Shoppers purchased food and beverages morefrequently in Saudi Arabia in 2009 than in 2008however on average they spent less on each tripand bought less volume.

Retail trade Media

Consumer spending in Hypermarkets andPharmacies grew in 2009 compared withreduc ons in 2008.

Due to in a on consumers shopped more o en inwholesale stores than previously.

Consumers chose to visit Mini Markets and Baqalas(corner shops) more o en whilst shopping atSupermarkets less frequently.

Average spend per trip declined indica ng thatsmaller or fewer packs were purchased per trip this resulted in more frequent top-up shops atBaqalas by consumers.

Expenditure on adver sing was down by 6% to$1.46bn in 2009 since then however, gures haveshown that during Q1 2010 this gure has risen by22% on last year.

It has been predicted that internet Adver sing willdevelop quickly over the next ve years, increasingfrom a current $54m spent to $266m, althoughInternet Adver sing s ll only currently represents aminiscule 4% of the market.

The number of households with access to theinternet is constantly rising in Saudi Arabia (+27%in 2009). Addi onally, data from Facebook GlobalMonitor reveals that Saudi Arabia is the leading userof Facebook in the Middle East, the number of usersgrowing by 13.4% in March alone.

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Brazilian GDP increased to 6.5% in the year.

An excep onal result for Brazilian industry thisyear, with a growth of 10% to 12%.

In a on reached 5% in 2009.

The price of oil and metal commodi es increased.

The stock exchange is expected to uctuate overupcoming months 2010 growth is alreadyvery good.

Brazilian families spent more, increased volumesand adopted a larger consump on basket incomparison with 2008.

The biggest expansion in volume was food,increasing by 17%.

In household expenditure, Personal Hygiene wasthe Champion in 2009, increasing 21% with

6 out of 11 of the categories growing thoughPremium Brands.

The consump on expansion served to drive manycategories sales. Penetra on wise, Ice-cream, Soybased Beverages, Bo led Water, Fermented Milkand RTD Sauces were par cularly remarkable.

Retail trade

Due to last years recession, Brazilians were stayingat home more. For many families, this meantbuying food with more value such as Yogurts,Ready to eat Meals, and also more sophis catedPersonal Care products.

However, the recession also stressed to theBrazilian the need to save money. Therefore, storeformats such as Cash and Carry, Atacado, Assai,a mix of wholesaler and retailer known in Brazil asatacarejo saw success.

Brazil

The Americas


The economy grew by 3.7% and the forecast for2010 is that the GDP will grow by 4.5%.

The dollar held steady since October 2008 at Bs7.07 US Dollars per unit.

US suspended trade preferences for ATPDEAexports a ec ng the economy and employment.

The government implemented several social help

plans, helping lower income households growtheir consump on.

At the end of 2009 president Evo Morales wasre-elected, and in 2010 a new ve-yeargovernment administraon and a new StateCons tu on was inaugurated.

Household consump on grew by 15%.

The bo om of the pyramid, consumers made thegreatest contribu on to growth.

Personal Care basket grew by 22%, driven byMakeup, Deodorants, and Diapers.

So Drinks generated a 13% growth.

Retail trade Media

Proximity was a key factor in the developmentof stores.

Bolivian families supply themselves in Tradi onalChannels, by making everyday purchases at storesand mini markets.

Door to door was the fastest growing channel(22%) driven by Makeup and Fragrance Categories.

Modern Trade grew by 15%, thanks to an increasein the number of visits per shopper.

The distribu on of free magazines has increased,with both economic and social topics, giving newtools for businesss adver sing.

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GDP declined by 1.5%.

GDP growth for 2010 is projected to be between4.3% and 5.3%, despite the 27th Februaryearthquake.

The in a on rate was also nega ve in 2009at -1.4%.

Unemployment reached 9.7% compared to 7.8%

in 2008.

Consump on of FMCG categories recoveredand reached pre crisis levels. The second andthird quarter of the year showed the highestgrowth rates.

Households con nue to increase spend per trip,at the expense of shopping frequency.

Basic categories such as Milk, Rice and Oil su ered

high price decreases. Cosme cs and Dairy Products showed the highest

growth in 2009. Within Cosme cs, sub-categoriesMake Up, Facial Creams and Dying Products drovegrowth with more than 8% increase in units sold.Drivers for Dairy Products were Milk and Yoghurt.

Retail trade

Modern Trade represented 65% of themarket value.

Wholesalers and Street Markets showed veryposi ve development in 2009, penetra on beingtheir growth driver.

Private Labels value share grew from 4.3% in 2008to 5.2% in 2009. Market leaders D&S-Wal-Mart andJumbo are developing their Private Label lines.

Hard Discount is star ng to develop. Ekono (D&S-Wal-Mart group), the only Hard Discounter at

the moment with 100 stores in the MetropolitanRegion has expansion plans for 2010.

Chile

The Americas


The crisis caused GDP in the region to decrease by-4%. The most a ected countries were Panama,Costa Rica, Honduras and Guatemala, whilst ElSalvador and Nicaragua remained stable.

The region is expected to grow 2.7% in 2010 withan es mated average in a on of 3.5%.

The unemployment rate was 5.0%. Minimum wage

increases in Honduras forced several companies tomake a large number of layo s.

Panama is expected to have the largest growthfor 2010, followed by Guatemala. El Salvador isexpected to have the lowest growth for 2010.

Personal and Home Care su ered in 2009, boththrough decreased consump on as well asdowngrading. The biggest mul na onals s lldominate the markets with their global brands.

The Oil market con nues growing at the expenseof the Margarines market.

Health and Light are con nuing to gain

importance in the region (e.g. Yoghurt,Cereals, Milk, Olive Oil, Canola Oil, Juicesand Puri ed Water).

Retail trade Media

As in previous years, Tradi onal Trade Channels ledthe market on a consolidated basis.

Modern Trade is con nuing to grow , especially theHard Discounters.

Wal-Mart strengthened its posi on in 2009,becoming the main shareholder of one of the mostimportant local retailers in the area.

Wal-Ma rt con nues its aggressive expansion planfor the region. The introduc on of their regionalPrivate Label brands, Suli and Sabems, proved tobe successful.

Central American households spend an averageof 11 hours per day exposed to di erent typesof media.

Penetra on of cable television varies from 30%to 80% in urban areas. On weekdays, consumersspend over 3.6 hours watching cable television.

Radio remains an important medium with anaverage 3 hours per household, both weekdaysand weekends.

Outdoor Adver sing con nues growing. Muppiesand adver sing on buses had an important growth

as alterna ve media.

Central America

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Ecuador maintained economic growth (+1.0%).

At the beginning of 2009, Ecuadors in a on andunemployment increased, so the Governmentimposed tari barriers on some imports. Bythe end of year in a on was almost 50% of theprevious years level, whilst unemployment veryslightly increased (+0.1%)

The Government used a large amount of moneyreserves from petroleum incomes in 2008 tocounter the e ects of the global nancial crisis.

Minimum wage increased by approximately 9%and the main product basket value increased by4%. Household consump on increased in bothvalue and volume.

Consump on increased through higher volumesper purchase.

Young housewives and housewives with kids grewmost in terms of volume bought, especially inGuayaquil (largest city in Ecuador).

Home Care was the category which grew most:prices increased as well as purchase frequency.

Retail trade

Supermarkets had the biggest growth, due to priceincreases, and now hold a market share of 30%.Hypermarkets now have 10% of market share.

Tradi onal Retailers also increased prices, butas these were lower compared with the otherchannels, this channel managed to grow as aresult of increased buying frequency andvolume per purchase.

Direct sales grew as a result of increased volume

per purchase and the fact that this was the onlychannel to reduce average price.

Ecuador

The Americas


Colombias GDP grew by just +0.4% in 2009,due to the global economic crisis. Despite thelow GDP growth, the Columbian economy beganto recover in Q4 2009. Dynamism and the internaldemand helped to accelerate the growth. Theforecast for 2010 is to grow between +2.0%and +4.0%, dependent on the interna onaleconomic situa on.

In a on was +2.0% in 2009, one of lowest in thelast few years. The in a on target for 2010 isbetween 2.0% and 4.0%. In Q1 2010 in a on was1.8%, which was lower than expected.

Levels of unemployment remained stable at 11.8%for March 2010.

In 2009, the Columbian Peso was highly vola le.Throughout 2010, La n American currencies arege ng stronger against the US Dollar.

The consump on of FMCG and Personal Care grewby +13% and +11% respec vely in value in 2009.

A rise in prices increased expenditure withinhouseholds especially for Home Care (+13%).

Demand for beverages increased in 2009,the result of weather condi ons. CarbonatedBeverages, Ready to drink Juices and Powdered

Juices all grew by 29%, 33% and 19% respec vely.

Retail trade Media

Supermarkets and Hypermarkets represent 17% of the total trade, 23% lower than in 2008. Householdprefer to buy their groceries and personal careappliances in the Tradi onal Trade (29%) andMinisupers (23%).

Higher food prices resulted in down-trading toprivate labels, which now represents 3.3% of theFMCG basket.

Door to Door gains penetra on driven by PersonalCare categories, especially Skin Care, Make-Up andDeodorants. Households spend 15% more thanthey did the year before.

Penetra on for TV was 94% in 2009, while Radioreached 68% of the popula on. Newspaper,magazines and all the printed media, have thelowest household access: newspapers get to 35%and independent magazines to 44%.

Internet, which is s ll in a developing stage, nowreaches 33% of the total popula on. This is a 10%increase compared to 2008.

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The government implemented scal and monetaryprograms to lessen the impact of the GlobalFinancial Crisis.

Commodity prices were stable and householdconsump on saw growth.

The construc on sector was very dynamic andmany consumer goods companies launched

products focusing on value. Macro-economic indicators were posi ve.

GDP grew by 1%, with a 0.25% in a on rate.

Basket size saw growth throughout 2009 andclosed the year with a 3% increase in volumeagainst 2008.

This behaviour was driven by households in Limaand Provinces.

In addi on, middle and lower class householdsincreased their consump on over the year in non

essen al categories. Only in June there was a small rise in prices, but

these fell back to levels seen in January 2009.

Of the 67 categories tracked: 47 saw growth, 2remained sta c and 18 declined.

The Food Basket increased its volume by 3%.

The Personal Care Basket increased 5%.

Household Cleaning Products had the highestgrowth: 7%.

Retail trade Media

Modern Trade share for 2009 was 13%.

In 2009 there were constant Modern Tradeopenings, primarily in the Hypermarkets format.

Modern Trade ended 2009 with 79% householdpenetra on, with consumers visi ng the channelevery 14 days on average.

For 2010 compe on remains erce andModern Trade retailers aim to gain leadershipin the Provinces.

The country has three big chains in the ModernTrade channel: Cencosud, SupermercadosPeruanos and To us Falabella Group.

In 2009, Peruvian online adver sing investmentgrew by 18%, mainly in banners and searchengines (does not include Google, Yahoo and otherinterna onals).

But Internet s ll represents only 3% of theadver sing pie.

The sectors that invest the most in OnlineAdver sing are: Telecommunica ons (25.9%),Banking (15.5%), Educa on (14.1%), Technology(6.9%) and Consumer Products (6.8%).

Peru

The Americas


Mexican GDP saw its worst fall since 1995,reaching -6.5%, due to a number of di erenteconomic factors.

Exports and domes c demand were nega velyimpacted by the AH1N1 u virus, as was tourism.Mexico experienced lower oil prices.

For 2011, GDP recovery is predicted with a growth

forecast of 4.0%. In a on Rate returned to levels reached before

the crisis, closing at 3.6%.

Unemployment remained high (5.5%).

Household consump on of goods and servicesdecreased, mainly due to a fall in the purchaseof imported and na onal goods, but the trendimproved in Q4.

Looking at the Mexican market by price ers,Value for Money Brands and the Private Labelstook precedence throughout the crisis in 2009,and therefore mainstream brands were the mosta ected er.

Premium Brands in total baskets decreased,whilst Personal Care experienced growth dueto consumers allowing themselves certainindulgences. In Beverages Value for Moneyincreased, whilst in Household Cleanersmainstream and Private Label became important.

The frequency of shopping trips increased, mainlydriven by Food and Beverages in smaller channels.

In 2009, Mexicans purchased 10% more SKUs onpromo on than in 2008.

Retail trade Media

A third of FMCG spending in Mexico was donein the Modern Trade channel, but self-servicechannels lost importance during the year, mainlydue to lower prices. These lower prices howeverdrew in more buyers, more o en.

90% of households purchased Private Labels,however these brands only represented 1.7% of the market.

Households are showing less loyalty to the mainchains, and spend more in local channels likeConvenience stores, Pharmacies and Door toDoor sales. Proximity is an important driver in themarket performance.

Adver sing expenditures in 2009 went down by2.2% compared to 2008.

In crisis, manufacturers searched for assurancein their media investment, so the leader,OpenTV, increased its importance mainly dueto its wide target.

Internet gained share from Press Media, withlower costs being the main reason, but this

media is just reaching a quarter of Mexicoshouseholds and it only represents a 3.53% of the media investment.

In the second semester of 2010, a recovery inadver sing expenditure is expected.

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Despite high in a on, Venezuela remains acountry of opportuni es, where people arevery aspira onal.

At the end of 2009, Venezuela saw the highestin a on rate in the La n American region (25.1%).

The exchange rate control remains in place,making it di cult for mul -na onals to import raw

materials and nal products. The FMCG sector ended the year with a decline

in volume.

The Venezuelan consumer is a ra onal shopper,and they are priori zing essen al categories. Thisre ects a fall in purchasing power.

Personal Care and Household Care categories seethe highest decline, whilst Foods and Beveragesshow lower declines due to several categories withGovernment price regula on.

Retail trade Media

Due to general shortages in essen al foodproducts, Venezuelan people are gradually visi ngmore retailers in order to purchase all items theywish, therefore sacri cing purchase prac cality.

However, retailer Excelsior Gamma is driving aninteres ng ini a ve to counter this. It has openedsmall store formats where people can shop foressen als in a short amount of me.

Although focused in the capital, Caracas, theretailer is now widening this express format inhigh class areas of the city.

According the Na onal Associa on of Adver sers(ANDA), the quan ty of spots registered in 2009was down; while in 2008 were almost 1,200spots in 2009 this fell to 1,000. This caused theadver sing trends emphasizing the promo on toincrease the sales and not the crea vity to look atthe posi oning.

Venezuela

The Americas


The United States has o cially been in a recessionsince November of 2008. But, economic tremorsbegan many months before then.

Across a range of economic measures, 2009was a di cult year. Unemployment rose sharplyand retail sales plummeted. GDP fell 2.4%, andresiden al permits were down considerably.

On the posi ve side, though, the nancial marketsappear to have stabilized. And, consumer pricesentered a de a onary period. For the year,consumer prices fell 0.4%. For the rst me inmany months, the economy is showing some signsof recovery. Despite some posi ve indicators, theeconomy does remain very uncertain.

U.S. consumers remain steadfastly entrenched inconserva ve shopping and consump on pa erns.Priori zed and streamlined spending prac ces areevidenced in moderate-to-signi cant unit salesdeclines across nearly all FMCG areas.

Fresh/Perishable was the only category to see unitsales climb in 2009. Consumers back-to-basicsmantra is a key driver of this growth.

The Frozen Foods segment was also somewhatbu ered from recession-driven cutbacks. Savvymarketers found success in catering to consumerscalls for easy yet a ordable meal me solu ons andwere rewarded with solid sales gains.

The sharpest declines were seen in Beauty/Personal Care and general merchandise categories.

Retail trade Media

Grocers are locked in a price war with each lookingto lure budget-conscious shoppers from the othergrocers and from compe ng channels. The ranks of grocers announcing aggressive price ac onsare substan al.

At the all outlet level, Private Label represents just under 18% of FCMG dollar sales, and 23%of total units.

Unit share has climbed nearly one full pointversus year ago, evidence of consumerspercep on of store brands as a viable alterna veto branded solu ons.

Por olios are being increased in depth and breadthas retailers race to capitalize on consumersappe te for store brand op ons.

Across the media, there was an an cipated 4.3percent more TV Ad money and 12.9 percentmore online ad spending. But Newspapers andMagazines are each forecast to lose about 4% of their ad income this year.

59% of U.S. marketers plan to pull money fromTradi onal Media and move it to Digital.

eMarketer forecasts a 5.5% growth in online

spending in 2010. US online social network adspend is predicted to increase by 3.9% over 2009(Source: eMarketer 12/09).

Publicis Groupes ZenithOp media is revising up itsforecast of 2010 global adver sing growth from 0.9percent to 2.2 %.

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The economic recession from the second half of 2008 led to con nuing declines in economicindicators and consumer con dence in early 2009;but April saw an upturn in these indices.

Unemployment, however, remained high, andthere were no signs of improvement in the ra o.

The downward trend in consumer prices

con nued, and in November a state of de a onwas declared for the rst me in over 3 years.Despite this from August, overall consumerspending was up versus the previous year butspending on FMCG was basically at.

The Carbonated So Drink market, driven by Non-Calorie Cola and Cider, expanded.

In the Alcoholic Drink categories, the low price of new genre drinks led to growth in sales volume.

The market for Masks and Wet Tissues expandedas a result of the H1N1 u virus. The Mask market,in par cular, nearly trebled in size.

Overall 2009 FMCG gures remained on par with2008 gures; but the second half of 2009 saw arecovery in purchase quan ty, due in part to thecon nuing decline in unit price.

Retail trade Media

Drugstores and Home Centres, which have beengrowing in recent years, saw a slowdown ingrowth. However these channels con nue to be onan upward trend.

Seiyu Supermarket, whose marke ng campaigna racted a en on, saw increases in usage rateand purchase frequency versus the previous year.

There was a slowdown in Private Label growth,with categories such as Drinks and Paper Productsactually showing a decline.

Adver sing expenditure was 5,992.2 billion yenfor 2009, down 11.5% from last year, the secondconse

5571578583_Key_Facts_2010

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