Data Monitor UK Organic Food

INDUSTRY PROFILE
Organic Food in the United Kingdom

Reference Code: 0183-0853 Publication Date: November 2010
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United Kingdom - Organic Food

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EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Market value
The United Kingdom organic food market grew by 3.5% in 2010 to reach a value of $2,968.3 million.
Market value forecast

In 2015, the United Kingdom organic food market is forecast to have a value of $4,180.8 million, an increase of 40.8% since 2010.
Market segmentation I
Dairy is the largest segment of the organic food market in the United Kingdom, accounting for 33% of the market's total value.
Market segmentation II
The United Kingdom accounts for 11.9% of the European organic food market value.
Market rivalry
Rivalry is heightened by limited product differentiation and negligible switching costs for buyers.

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CONTENTS
TABLE OF CONTENTS
EXECUTIVE SUMMARY MARKET OVERVIEW Market definition Research highlights Market analysis MARKET VALUE MARKET SEGMENTATION I MARKET SEGMENTATION II COMPETITIVE LANDSCAPE LEADING COMPANIES ASDA Group J Sainsburys John Lewis Stores Tesco PLC MARKET FORECASTS Market value forecast MACROECONOMIC INDICATORS APPENDIX Methodology Industry associations Related Datamonitor research Disclaimer ABOUT DATAMONITOR Premium Reports Summary Reports Datamonitor consulting 2 6 6 7 8 9 10 11 12 14 14 16 20 23 27 27 28 30 30 31 31 32 33 33 33 33

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CONTENTS
LIST OF TABLES
Table 1: Table 2: Table 3: Table 4: Table 5: Table 6: Table 7: Table 8: Table 9: Table 10: Table 11: Table 12: Table 13: Table 14: Table 15: Table 16: Table 17: Table 18: Table 19: Table 20: Table 21: Table 22: Table 23: United Kingdom organic food market value: $ million, 200610(e) United Kingdom organic food market segmentation I:% share, by value, 2010(e) United Kingdom organic food market segmentation II: % share, by value, 2010(e) ASDA Group: key facts J Sainsburys: key facts J Sainsburys: key financials ($) J Sainsburys: key financials () J Sainsburys: key financial ratios John Lewis Stores: key facts John Lewis Stores: key financials ($) John Lewis Stores: key financials () John Lewis Stores: key financial ratios Tesco PLC: key facts Tesco PLC: key financials ($) Tesco PLC: key financials () Tesco PLC: key financial ratios United Kingdom organic food market value forecast: $ million, 201015 United Kingdom size of population (million), 200610 United Kingdom gdp (constant 2000 prices, $ billion), 200610 United Kingdom gdp (current prices, $ billion), 200610 United Kingdom inflation, 200610 United Kingdom consumer price index (absolute), 200610 United Kingdom exchange rate, 200610 9 10 11 14 16 17 17 18 20 21 21 21 23 24 24 25 27 28 28 28 29 29 29

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CONTENTS
LIST OF FIGURES
Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7: Figure 8: Figure 9: Figure 10: United Kingdom organic food market value: $ million, 200610(e) United Kingdom organic food market segmentation I:% share, by value, 2010(e) United Kingdom organic food market segmentation II: % share, by value, 2010(e) J Sainsburys: revenues & profitability J Sainsburys: assets & liabilities John Lewis Stores: revenues & profitability John Lewis Stores: assets & liabilities Tesco PLC: revenues & profitability Tesco PLC: assets & liabilities United Kingdom organic food market value forecast: $ million, 201015 9 10 11 18 19 22 22 25 26 27

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MARKET OVERVIEW
MARKET OVERVIEW
Market definition
Organic food is produce that has been independently certified to have been grown free of chemicals. Market values are taken at retail selling price (RSP). Any currency conversions used in the creation of this report have been calculated using 2009 constant annual average exchange rates. For the purposes of this report, Europe consists of Western Europe and Eastern Europe. Western Europe comprises Belgium, Denmark, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, and the United Kingdom. Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.

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MARKET OVERVIEW
Research highlights
The UK organic food market is expected to have a total revenue of $2,968.3 million in 2010, representing a compound annual growth rate (CAGR) of 0.1% for the period spanning 2006-2010. Dairy sales should prove the most lucrative for the UK organic food market in 2009, with total revenues of $979.5 million, equivalent to 33% of the market's overall value. The performance of the market is forecast to accelerate, with an anticipated CAGR of 7.1% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $4,180.8 million by the end of 2015.

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MARKET OVERVIEW
Market analysis
The United Kingdom organic food market is expected to demonstrate very strong growth in 2010, recovering from a decline that occurred in 2009. In the forecast period, the market is expected to accelerate significantly and post gradually increasing rates of annual growth towards 2015. The UK organic food market is expected to have a total revenue of $2,968.3 million in 2010, representing a compound annual growth rate (CAGR) of 0.1% for the period spanning 2006-2010. In comparison, the French and German markets are forecast to grow with CAGRs of 15% and 9.4% respectively, over the same period, to reach respective values of $4,575.2 million and $9,161.1 million in 2010. Dairy sales should prove the most lucrative for the UK organic food market in 2009, with total revenues of $979.5 million, equivalent to 33% of the market's overall value. In comparison, sales of fruit & vegetables are expected to generate revenues of $771.7 million in 2010, equating to 26% of the market's aggregate revenues. The performance of the market is forecast to accelerate, with an anticipated CAGR of 7.1% for the fiveyear period 2010-2015, which is expected to drive the market to a value of $4,180.8 million by the end of 2015. Comparatively, the French and German markets will grow with CAGRs of 9.3% and 6.7% respectively, over the same period, to reach respective values of $7,148 million and $12,646.1 million in 2015.

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MARKET VALUE
MARKET VALUE
The United Kingdom organic food market grew by 3.5% in 2010 to reach a value of $2,968.3 million. The compound annual growth rate of the market in the period 200610 was 0.1%. Table 1: Year 2006 2007 2008 2009 2010(e) CAGR: 200610 Source: Datamonitor United Kingdom organic food market value: $ million, 200610(e) $ million 2,961.4 3,238.8 3,293.4 2,867.9 2,968.3 million 1,900.0 2,078.0 2,113.0 1,840.0 1,904.4 million 2,129.7 2,329.3 2,368.5 2,062.5 2,134.7 % Growth 9.4 1.7 -12.9 3.5 0.1% DATAMONITOR
Figure 1:
United Kingdom organic food market value: $ million, 200610(e)
Source: Datamonitor
DATAMONITOR

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MARKET SEGMENTATION I
MARKET SEGMENTATION I
Dairy is the largest segment of the organic food market in the United Kingdom, accounting for 33% of the market's total value. The fruit & vegetables segment accounts for a further 26% of the market. Table 2: Category Dairy Fruit & Vegetables Prepared food and others Bread and Grains Meat, fish and poultry Beverages Total Source: Datamonitor United Kingdom organic food market segmentation I:% share, by value, 2010(e) % Share 33.0% 26.0% 21.0% 7.0% 7.0% 6.0% 100% DATAMONITOR
Figure 2:
United Kingdom organic food market segmentation I:% share, by value, 2010(e)
Source: Datamonitor
DATAMONITOR

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MARKET SEGMENTATION II
MARKET SEGMENTATION II
The United Kingdom accounts for 11.9% of the European organic food market value. Germany accounts for a further 36.6% of the European market. Table 3: Category Germany France Italy United Kingdom Spain Rest of Europe Total Source: Datamonitor United Kingdom organic food market segmentation II: % share, by value, 2010(e) % Share 36.6% 18.3% 12.6% 11.9% 2.5% 18.2% 100% DATAMONITOR
Figure 3:
United Kingdom organic food market segmentation II: % share, by value, 2010(e)
Source: Datamonitor
DATAMONITOR

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COMPETITIVE LANDSCAPE
The organic food market will be analyzed taking retailers of organic food as players. The key buyers will be taken as end-consumers, and organic farmers as the key suppliers. As individual consumers, buyers have limited power. However, consumer demand for organic food drives growth and will likely increase choice, as retailers stock a greater variety of organic products. Suppliers are relatively small-scale farmers whose influence on the market is essentially limited. However, many have integrated forward and sell directly to end-consumers; this strengthens their position somewhat. There is a strong threat from non-organic substitutes, which are cheaper to buy and are sold in greater volumes; although most retailers stock these alongside their organic food products. The recent severe decline in 2009 acts as a deterrent to new entrants and increases rivalry among existing players. Buyer power is weakened by the range of buyers, who are individual consumers. Larger retailers are gradually becoming more reliant upon the sale of organic foods, as consumers increasingly buy into the trend of healthy eating. Consumer demand is likely to act as a pull-through, which weakens the power of retailers somewhat. However, the diversity of other products sold by most retailers strengthens their power. While switching costs for end-consumers tends to be negligible, a number of retailers operate incentive schemes for frequent shoppers and this can help secure customer retention. Price sensitivity is lowered as consumers generally accept that organic foods cost more to produce. Although the key segments of this market (fruit & vegetables, prepared foods and others, dairy, beverages, bread and grains, and meat, fish and poultry) are quite diverse, there is essentially limited product differentiation within each category, which enables buyers to shop elsewhere. Overall, buyer power is moderate. Organic food has a close association with direct sales to the public. Large quantities of organic food are sold through farmers markets. This is a form of forward integration, which enhances supplier power. However, these suppliers are relatively small-scale, so their influence on the market is not great. The nature of the organic food business means that the quality of the product, and often its geographical location is of great importance to the retailer. Retailers and suppliers often have long term contracts, which increase supplier power. Some retailers also put emphasis on offering local produce which severely limits their choice of supplier. Under the EUs Organic Farming Regulation, only products composed of 95% or more organic ingredients can be labeled organic. The raw material is therefore very important as it allows players to market their products with the organic label and command a higher price. A few of the significant players dedicated to organic produce are also committed to certain standards when dealing with their suppliers, particularly in developing countries, with the result that even smaller suppliers have significant power. However, the entrance of large retailers into the market could lead to increasing pressure on smaller suppliers. As there are still many smaller organic farmers who supply the bulk of the market, large retailers will be at a distinct advantage in this market, as they command far more power than their weaker suppliers. Overall, supplier power is weak.

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As suppliers generally depend on retailers to sell their products, growing consumer demand for organic food products is likely to drive the growth of retail outlets. The International Federation of Organic Agricultural Movement (IFOAM) represents the worldwide body of organic agriculture and provides a platform for global exchange and co-operation, although regulation differs regionally. The EU has set basic standards for organic production and it is up to the individual member states to translate this into their own law. Since July 1, 2010, the EU introduced a compulsory organic logo and labeling system for pre-packaged food to indicate that it met EU Organic Farming Regulation. It is voluntary for imported goods. As part of the regulation, the product must bear the name of the last operator who handled the product (e.g. the producer, processor or distributor) and the name or code number of their inspection body. In the UK, the Department for Environment, Food and Rural Affairs (DEFRA) is responsible for setting basic standards for organic production. Any organic product sold in the UK must by law display a certification symbol or number. When an organic symbol is displayed, it ensures that the product complies with minimum government standards. Compliance with legislation regarding organic labeling can be costly and may deter new entrants. Furthermore, in the UK, the Soil Association is a leading organic organization which has standards that meet or are higher than the governments minimum; particularly with regards to animal welfare. It also has standards for areas not covered by the government or EU, such as fish farming. The Soil Association has its own widely-recognized symbol of certification. Certification by them would therefore be more costly for new entrants who seek greater recognition. The UK organic food market has decelerated severely in recent years, with a double-digit decline in 2009. This will likely deter new entrants, although moderate to strong growth is expected in coming years. Overall, there is a strong threat of new entrants. The main substitutes to the organic food market include non-organic versions of the products, which are notably cheaper. For sole organic retailers, organic products are marketed for their environmental benefits and nutritional quality, which limits the threat of cheaper non-organic products. However, most retailers stock these non-organic substitutes, and thus their threat on such retailers revenues is limited. Overall, there is a strong threat from substitutes. layers range from large chains of supermarket stores to small specialized organic shops. Thus the importance of organic food revenues differs depending on their level of specialization. Limited product differentiation within each organic food category and negligible switching costs for buyers heightens rivalry. This is mitigated in instances where players offer a wider selection of organic food products. The recent severe decline in 2009 likely increases rivalry, as players compete for limited share of the market. Overall, there is a strong degree of rivalry between players.

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LEADING COMPANIES
LEADING COMPANIES
ASDA Group
Table 4: Head office: Telephone: Fax: Website: Financial year-end: Source: company website ASDA Group: key facts ASDA House, Southbank Great Wilson Street, Leeds LS11 5AD, GBR 44 500 100 055 44 113 241 7732 www.asda.co.uk January DATAMONITOR
Asda Group (Asda) is one of the largest grocery and general merchandise retailers in the UK. Asda operates 29 supercenters (Asda), 298 supermarkets (Asda, Asda Small Town), 13 general merchandise stores (Asda Living) and 12 apparel stores (George). The company operates as the UK subsidiary of WalMart's international division. Asda specializes in supermarket retail, selling a range of both food and non-food products. With an emphasis on fresh food, the company has a number of bakers, butchers and greengrocers in its stores. Asda's non-food offerings cover apparel, entertainment products, electrical goods, home ware, toiletries and photo processing. Asda operates through various store formats: Superstore, Supercentre, Asda Living and Asda Essentials. Asda's supercenter is the company's largest store format with an average selling space of about 85,000 sq ft while its superstore format has an average selling space of 42,000 sq ft. Asda Living stores are the company's general merchandise stores offering non-food products including clothing, home electronics, toys, home wares and health and beauty products. Asda also operates Asda Essentials, a food discount store format, predominantly stocked with own label products. In addition, Asda sells its own range of apparel, under the private label, George. The George label includes women's wear, menswear, children's wear, footwear, school-wear, lingerie, hosiery, swimwear and accessories. The George label apparel is sold in standalone George stores and also in other store formats.

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LEADING COMPANIES
Asda maintains an online shopping and home delivery through its website, asda.com. Asda's website offers a range of groceries, financial services, contact lenses, gifts, photo processing, travel information, CDs, DVDs and games. The company also has an information website, which allows customers to find their nearest store and information about new products. Key Metrics As a division of Wal-Mart, the company recorded revenues of $31.2 billion during the financial year ended January 2010 (FY2010), a decrease of 8.2% over 2009. Currency exchange rate fluctuations during 2010 compared to 2009 negatively impacted Asda's sales.

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LEADING COMPANIES
J Sainsburys
Table 5: J Sainsburys: key facts 33 Holborn, London EC1N 2HT, GBR 020 7695 6000 020 7695 7610 www.j-sainsbury.co.uk March SBRY London DATAMONITOR
Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website
Sainsbury is engaged in grocery and related retailing throughout the UK. Its businesses comprise of supermarkets, convenience stores, internet-based home delivery shopping services and Sainsbury's Bank. The company's range of products besides food and groceries includes clothing, alcohol and beverages, books and gift items, computer paraphernalia, kitchen appliances, petrol and fuel, pharmaceutical drugs and home ware. The company operates through two segments: food retailing (supermarkets, convenience and online) and financial services (Sainsbury's Bank joint venture). Sainsbury's food retail segment serves over 18 million customers a week through a network of 792 stores including 290 convenience stores and 502 supermarkets. Sainsbury's supermarkets offer about 30,000 products. In addition, many stores offer bread baked on the premises, delicatessen, meat and fish counters, pharmacies, coffee shops, restaurants and petrol stations. Sainsbury's online is an Internetbased home delivery shopping service which currently operates from 169 stores. In addition to food and grocery products, the service also offers flowers, wine, gifts and electrical goods. The group's convenience stores include: Bells Stores, Jackson's Stores, and JB Beaumont stores. Sainsbury's Bank is jointly owned by J Sainsbury and Lloyds Banking Group. The products offered by Sainsbury Bank include: savings and loan products, credit cards and a number of insurance products. After the sale of 5% of Sainsbury's Bank's shareholding in 2007, revenue from financial services has been accounted as a joint venture. The company also has two property joint ventures with Land Securities Group and The British Land Company.

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LEADING COMPANIES
Key Metrics The company recorded revenues of $29,475 million in the fiscal year ending March 2009, an increase of 6% compared to fiscal 2008. Its net income was $450 million in fiscal 2009, compared to a net income of $513 million in the preceding year.
Table 6: $ million
J Sainsburys: key financials ($) 2005 24,016.9 95.1 18,108.1 11,158.2 2006 25,033.1 90.4 19,867.8 7,694.9 2007 26,732.0 505.0 14,925.4 5,123.2 2008 27,801.2 512.8 15,765.5 8,073.7 2009 29,475.2 450.4 15,637.7 8,817.2
Revenues Net income (loss) Total assets Total liabilities Source: company filings
DATAMONITOR
Table 7: million
J Sainsburys: key financials () 2005 15,409.0 61.0 11,618.0 7,159.0 2006 16,061.0 58.0 12,747.0 4,937.0 2007 17,151.0 324.0 9,576.0 3,287.0 2008 17,837.0 329.0 10,115.0 5,180.0 2009 18,911.0 289.0 10,033.0 5,657.0
DATAMONITOR

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LEADING COMPANIES
Table 8: Ratio
J Sainsburys: key financial ratios 2005 0.4% (10.1%) (7.1%) (3.4%) 61.6% 0.5% 2006 0.4% 4.2% 9.7% (31.0%) 38.7% 0.5% 2007 1.9% 6.8% (24.9%) (33.4%) 34.3% 2.9% 2008 1.8% 4.0% 5.6% 57.6% 51.2% 3.3% 2009 1.5% 6.0% (0.8%) 9.2% 56.4% 2.9%
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Source: company filings
DATAMONITOR
Figure 4:
J Sainsburys: revenues & profitability
Source: company filings
DATAMONITOR

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LEADING COMPANIES
Figure 5:
J Sainsburys: assets & liabilities
DATAMONITOR

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LEADING COMPANIES
John Lewis Stores

Table 9: John Lewis Stores: key facts 171 Victoria Street, London SW1E 5NN, GBR 44 0207 828 1000 www.johnlewispartnership.co.uk January DATAMONITOR
Head office: Telephone: Website: Financial year-end: Source: company website
John Lewis Partnership (JLP) is a leading retailer in the UK, operating supermarkets and department stores. JLP operates 27 John Lewis department stores, 213 Waitrose supermarkets, an online shopping network, a website and a catalogues business, and Greenbee.com. The company operates in the UK. John Lewis typically stocks more than 350,000 separate lines of products such as furniture, kitchenware and clothing items. The website, www.johnlewis.com, stocks more than 45,000 product lines focused on household products and giftware. JLP has an online shopping service, John Lewis Direct, which owns about 25% of Internet grocer Ocado. Waitrose combines the convenience of a supermarket with the expertise and service of a specialist shop. It offers fresh vegetables, meat and frozen foods, wines and groceries as well as delicatessen, patisserie and hot-food counters. WaitroseDeliver, the company's internet grocery service, operates 53 branches which provide home delivery services across the UK. Greenbee provides travel, leisure and financial services in partnership with a panel of insurers including AXA, Fortis and Friends Provident and also with Expedia, Cox & Kings and See Tickets. These services include holidays, flights, theatre and concert tickets as well as home insurance, car insurance, travel insurance, life cover, pet insurance and special events insurance. Greenbee also provides home services such as Telecoms, a broadband and phone service and Specialist Home Insurance. Key Metrics The company recorded revenues of $10,497 million in the fiscal year ending January 2010, a decrease of 3.3% compared to fiscal 2009. Its net income was $166 million in fiscal 2010, compared to a net income of $364 million in the preceding year.

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LEADING COMPANIES
Table 10: $ million
John Lewis Stores: key financials ($) 2006 8,025.8 326.2 5,435.9 3,078.9 63,700 2007 8,862.7 410.2 5,742.0 3,170.4 66,800 2008 9,433.1 499.4 5,941.5 3,316.9 68,200 2009 10,859.7 363.9 6,297.5 3,612.3 68,700 2010 10,496.7 166.0 7,338.2 4,681.5 70,000
Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings
DATAMONITOR
Table 11: million
John Lewis Stores: key financials () 2006 5,149.3 209.3 3,487.6 1,975.4 2007 5,686.2 263.2 3,684.0 2,034.1 2008 6,052.2 320.4 3,812.0 2,128.1 2009 6,967.5 233.5 4,040.4 2,317.6 2010 6,734.6 106.5 4,708.1 3,003.6
DATAMONITOR
Table 12: Ratio
John Lewis Stores: key financial ratios 2006 4.1% 8.2% 6.2% 0.2% 56.6% 6.2% $125,994 $5,121 2007 4.6% 10.4% 5.6% 3.0% 55.2% 7.3% $132,675 $6,141 2008 5.3% 6.4% 3.5% 4.6% 55.8% 8.5% $138,316 $7,322 2009 3.4% 15.1% 6.0% 8.9% 57.4% 5.9% $158,075 $5,298 2010 1.6% (3.3%) 16.5% 29.6% 63.8% 2.4% $149,953 $2,371
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings
DATAMONITOR

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LEADING COMPANIES
Figure 6:
John Lewis Stores: revenues & profitability
DATAMONITOR
Figure 7:
John Lewis Stores: assets & liabilities
DATAMONITOR

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LEADING COMPANIES
Tesco PLC
Table 13: Head office: Telephone: Website: Financial year-end: Ticker: Stock exchange: Source: company website Tesco PLC: key facts New Tesco House, Delamare Road, Cheshunt, Hertfordshire, England EN8 9SL, GBR 44 1992 632 222 www.tescoplc.com February TSCO London DATAMONITOR
Tesco is a leading food and grocery retailer. The company operates 4,811 stores in 14 countries worldwide. It operates in the UK, other European countries, the US and Asia. The company operates in a single segment: retail. However, Tesco's operations can be examined by the store formats it operates: Express, Metro, Superstore, Extra and Homeplus. The company has over 961 Express stores (up to 3,000 sq ft) offering fresh food at convenient locations. These stores sell a range of up to 7,000 products including fresh produce, wines and spirits and bakery products. The company has over 174 Metro stores (approximately 7,000-15,000 sq ft) in town and city centre locations. It offers a tailored range of food products including ready-meals and sandwiches. Tesco operates about 448 superstores (approximately 20,000-50,000 sq ft) at which it offers food as well non-food products such as DVDs and books. Tesco's Homeplus stores (approx. 35,000-50,000 sq ft) are dedicated to non-food including clothing. Tesco has more than 177 Extra stores (approximately 60,000 sq ft and above) which offer a variety of food and non-food product lines ranging from electrical equipment to homewares, clothing, health and beauty, and seasonal items such as garden furniture. In addition to stores, Tesco offers retailing services through its online shopping channels, tesco.com and Tesco Direct. The company also provides broadband internet connections (Tesco broadband) and telecommunications services (Tesco Mobile and Home Phone) through a 50-50 joint venture with O2, a mobile phone company. Tesco also provides financial services through Tesco Bank which offers a choice of products ranging from savings accounts and credit cards to car and travel insurance. All its financial products are also available for online purchase. The company also operates Dunnhumby which offers consumer insights, market related research and also supports the Tesco Clubcard. Dunnhumby also provides these services to external clients.

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LEADING COMPANIES
Key Metrics The company recorded revenues of $84,676 million in the fiscal year ending February 2009, an increase of 14.9% compared to fiscal 2008. Its net income was $3,376 million in fiscal 2009, compared to a net income of $3,320 million in the preceding year.
Table 14: $ million
Tesco PLC: key financials ($) 2005 57,602.2 3,042.4 31,811.6 17,695.1 242,980 2006 67,234.5 3,553.7 35,167.3 20,447.6 273,024 2007 66,461.4 2,959.8 38,664.9 22,188.6 318,283 2008 73,720.0 3,319.9 47,014.4 28,463.7 345,737 2009 84,675.6 3,376.0 71,779.5 52,460.3 364,015
Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings
DATAMONITOR
Table 15: million
Tesco PLC: key financials () 2005 36,957.0 1,952.0 20,410.0 11,353.0 2006 43,137.0 2,280.0 22,563.0 13,119.0 2007 42,641.0 1,899.0 24,807.0 14,236.0 2008 47,298.0 2,130.0 30,164.0 18,262.0 2009 54,327.0 2,166.0 46,053.0 33,658.0
DATAMONITOR

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LEADING COMPANIES
Table 16: Ratio
Tesco PLC: key financial ratios 2005 5.3% 10.1% 10.9% 6.4% 55.6% 10.1% $237,066 $12,521 2006 5.3% 16.7% 10.5% 15.6% 58.1% 10.6% $246,259 $13,016 2007 4.5% (1.1%) 9.9% 8.5% 57.4% 8.0% $208,812 $9,299 2008 4.5% 10.9% 21.6% 28.3% 60.5% 7.7% $213,226 $9,602 2009 4.0% 14.9% 52.7% 84.3% 73.1% 5.7% $232,616 $9,274
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings
DATAMONITOR
Figure 8:
Tesco PLC: revenues & profitability
DATAMONITOR

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LEADING COMPANIES
Figure 9:
Tesco PLC: assets & liabilities
DATAMONITOR

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MARKET FORECASTS
MARKET FORECASTS
Market value forecast
In 2015, the United Kingdom organic food market is forecast to have a value of $4,180.8 million, an increase of 40.8% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 7.1%. Table 17: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor United Kingdom organic food market value forecast: $ million, 201015 $ million 2,968.3 3,125.3 3,296.2 3,525.2 3,817.4 4,180.8 million 1,904.4 2,005.1 2,114.8 2,261.7 2,449.2 2,682.4 million 2,134.7 2,247.6 2,370.5 2,535.2 2,745.3 3,006.7 % Growth 3.5% 5.3% 5.5% 6.9% 8.3% 9.5% 7.1% DATAMONITOR
Figure 10: United Kingdom organic food market value forecast: $ million, 201015
Source: Datamonitor
DATAMONITOR

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MACROECONOMIC INDICATORS
Table 18: Year 2006 2007 2008 2009 2010(e) Source: Datamonitor United Kingdom size of population (million), 200610 Population (million) 60.6 60.8 60.9 61.1 61.3 % Growth 0.3% 0.3% 0.3% 0.3% 0.3% DATAMONITOR
Table 19: Year 2006 2007 2008 2009 2010(e)
United Kingdom gdp (constant 2000 prices, $ billion), 200610 Constant 2000 Prices, $ billion 1,719.6 1,767.6 1,777.2 1,689.8 1,711.1 % Growth 2.8% 2.8% 0.5% (4.9%) 1.3% DATAMONITOR
Source: Datamonitor
Table 20: Year 2006 2007 2008 2009 2010(e)
United Kingdom gdp (current prices, $ billion), 200610 Current Prices, $ billion 2,430.7 2,830.7 2,737.4 2,252.0 2,341.3 % Growth 7.4% 16.5% (3.3%) (17.7%) 4.0% DATAMONITOR
Source: Datamonitor

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Table 21: Year 2006 2007 2008 2009 2010(e)
United Kingdom inflation, 200610 Inflation Rate (%) 3.2% 4.3% 3.7% 2.2% 2.7% DATAMONITOR
Source: Datamonitor
Table 22: Year 2006 2007 2008 2009 2010(e)
United Kingdom consumer price index (absolute), 200610 Consumer Price Index (2000 = 100) 116.3 121.3 125.8 128.6 132.0 % Growth 3.2% 4.3% 3.7% 2.2% 2.7% DATAMONITOR
Source: Datamonitor
Table 23: Year 2006 2007 2008 2009 2010
United Kingdom exchange rate, 200610 Exchange rate ($/) 0.5435 0.4999 0.5449 0.6416 0.6416 Exchange rate (/) 0.6820 0.6840 0.7973 0.8921 0.8921 DATAMONITOR
Source: Datamonitor

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APPENDIX
APPENDIX
Methodology
Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented in a consistent and accessible style. Review of in-house databases Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, Datamonitors in-house databases provide the foundation for all related industry profiles Preparatory research We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview Definitions Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends Datamonitor aggregates and analyzes a number of secondary information sources, including: National/Governmental statistics International data (official international sources) National and International trade associations Broker and analyst reports Company Annual Reports Business information libraries and databases
Modeling & forecasting tools Datamonitor has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

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APPENDIX
Industry associations
Soil Association Bristol House, 40-56 Victoria Street, Bristol, BS1 6BY, United Kingdom Tel.: 44 117 314 5000 Fax: 44 117 314 5001 www.soilassociation.org Organic Europe Stiftung kologie & Landbau, Weinstrae Sd 51, D-67098 Bad Drkheim, Germany Tel.: 49 6322 98 97 00 Fax: 49 63 2298 9701 www.organic-europe.net
Related Datamonitor research

Industry Profile Organic Food in Europe Organic Food in Japan Organic Food in Asia-Pacific Global Organic Food

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APPENDIX
Disclaimer
All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

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ABOUT DATAMONITOR
ABOUT DATAMONITOR
The Datamonitor Group is a world-leading provider of premium global business information, delivering independent data, analysis and opinion across the Automotive, Consumer Markets, Energy & Utilities, Financial Services, Logistics & Express, Pharmaceutical & Healthcare, Retail, Technology and Telecoms industries. Combining our industry knowledge and experience, we assist over 6,000 of the worlds leading companies in making better strategic and operational decisions. Delivered online via our user-friendly web platforms, our market intelligence products and services ensure that you will achieve your desired commercial goals by giving you the insight you need to best respond to your competitive environment.
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Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and pricing, competitors and products. Our experts then interpret this data to produce detailed forecasts and actionable recommendations, helping you create new business opportunities and ideas.
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Our series of company, industry and country profiles complements our premium products, providing top-level information on 30,000 companies, 3,000 industries and 100 countries. While they do not contain the highly detailed breakdowns found in premium reports, profiles give you the most important qualitative and quantitative summary information you need - including predictions and forecasts.
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INDUSTRY PROFILE

Organic Food in the United Kingdom

t: +61 2 8705 6900 f: +61 2 8705 6901 e: apinfo@datamonitor.com

United Kingdom - Organic Food

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Market value forecast

United Kingdom - Organic Food

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United Kingdom - Organic Food

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United Kingdom - Organic Food

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United Kingdom organic food market value: $ million, 200610(e)

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J Sainsburys: revenues & profitability

Source: company filings

United Kingdom - Organic Food

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J Sainsburys: assets & liabilities

Source: company filings

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John Lewis Stores

Head office: Telephone: Website: Financial year-end: Source: company website

United Kingdom - Organic Food

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Table 10: $ million

Table 11: million

Table 12: Ratio

United Kingdom - Organic Food

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John Lewis Stores: revenues & profitability

Source: company filings

John Lewis Stores: assets & liabilities

Source: company filings

United Kingdom - Organic Food

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United Kingdom - Organic Food