Exhibit 97 Consumption By Household Size Per Personweek

NUMBER OP

CONSUMPTION

EXPENDITURE

ADULTS

CHILDREN

<g)

(P)

1

0

2.32

27.24

]

1 +

1.18

14.82

2

0

2.32

25.34

2

1

1.68

17.97

2

2

1.34

14.55

2

3

1.26

14.63

2

4+

1.12

11.38

3

0

1.93

22.95

3+

1-2

1.43

15.51

3+

3+

0.92

12.22'

4+

0

2.07

25.42

SOURCE: National Food Survey.

SOURCE: National Food Survey.

Perceptually, the dried- or powdered-milk product is more prominent. The product's great versatility and its heritage ('milk') are responsible for this. Consumers regard dried milk as a substitute product, the alternative to turn to in an emergency when the real thing, milk, has run out or is running low. There was also an association with slimming, with brands such as Marvel adopting precisely this positioning. The advent of skimmed milk has, however, made the role in this respect redundant. A few older respondents who used powdered milk in cooking and baking nonetheless reported beneficial results, such as lighter cakes.

The prevailing image of powdered milk as a distress or convenience product means that the brand is bought, but the product is tolerated: 'You tend to buy powdered milk thinking that you will need it when you run out, and occasionally you do."Powdered milk is useful if you .run out of real milk. You can make it up and use it just like the real thing, but it doesn't taste too good. You have to be a bit desperate to want to use it.'

Other negatives are attached to dry milk. Respondents considered it to be an inconvenient product to prepare. Frequently the product's performance is perceived as disappointing. Consumers here spoke of the product's poor mixing qualities: it is 'lumpy', resulting in 'bits' floating on the top of their coffee. The product also tended to 'congeal' when spooned into tea or coffee. When made up and poured the product's poor taste qualities were also apparent: 'We have had it in our cornflakes when we've run out, hut quite honestly, it tastes so disgusting that in the future 1 don't think I'd bother.' 'It's all right for baking, but if you want to use it like real milk, it's not really advisable,'

A stigma is attached to dried milk because of its poor performance and taste delivery. The image of dried milk was consistent across both users and non-users. Negative perceptions of the product do, however, impact on consumers' perceptions of coffee creamers or whitcners, acting to constrain or to taint perceptions, especially among non-users.

Wliiteiiers/Cot"fee Creamers

Coffee creamers have a more polarized image across users and non-users. First, loyal or confirmed creamer users regard creamer as almost a treat. It is looked upon as an indulgence, solely for their pleasure. These hedonistic and indulgent properties are sometimes enhanced by the brand (e.g. Coffee-Mate) being perceived as having relaxing or comforting benefits; 'Creamers are a little bit of an indulgence. They make coffee taste so much better. They add something to it which improves the taste.' 'First thing in the morning I tend to have coffee with semi-skimmed milk, but towards 11 o'clock T want something which is more relaxing, more substantial, so I have coffee with Coffee-Mate. It seems to be comforting.'

Creamers' taste benefits are undoubtedly a motivating force behind usage. Loyal users enjoy and appreciate the thicker, creamier taste. Creamers are considered to supplement the taste of coffee, to complement and improve its flavour. Where Coffee-Mate is concerned, the perceptions are extremely positive. Users enjoy its sweet delivery, stating that they need not add sugar to it. Coffee-Mate fans feel that it does produce a creamy cup of coffee whether or not it is added to instant or freshly brewed 'real' coffee: 'Coffee without Coffee-Mate, just made with milk, tastes like it's got something missing.' 'Coffee-Mate kind of lifts the flavour. It makes a richer, better-tasting cup of coffee, whether it be an instant or a real one.'

Secondly, non-users' perceptions of coffee creamers are tainted by their generally negative attitudes towards dried milk. Creamers are something you have by for an emergency. You don't really want to use them — they're only there if there's no other choice: 'If someone gave me a cup of coffee with creamer in it, I would think they were doing it because they had run out of milk. I wouldn't have thought it was because they like the taste of it. Surely nobody could like the taste.'

Thus, in marked contrast to the users, where the creamy taste of Coffee-Mate is a totally apposite adjective, non-users criticized its sweetness. Non-users describe creamers as changing the taste of coffee, masking its pure taste rather than enhancing it. They also criticized its high sugar content, given that it is a glucose-based product. These consumers feel that Coffee-Mate delivers a flavour that is unacceptably sweet. They are not impressed with the product and perceive it to be a poor synthetic alternative to cream: 'You can always tell when someone's used creamers, it just tastes powdery. It doesn't taste like cream, it has a taste all of its own.' 'Whitcncrs taste nothing like cream. They taste powdery. You always know when they're there.'

The polarized perceptions of users and non-users are therefore summarized as follows:

Taste reactions of users: Creamy, rich, comforting, sweet and relaxing. 'Coffee without Coffee-Mate tastes as if it's lacking something.' Taste reactions of non-users.- Clawy, heavy and sweet. "You lose the flavour of the coffee.'

Thirdly, lapsed users still see creamers as a bit of an indulgence and a treat. However, they feel an element of guilt in using the product, and often it has been this anxiety that has caused them to drift away from it: 'I like coffee creamers - I like the taste. But I stopped using them because I felt I was putting on too much weight and I needed to cut down. I just think there is too much in there, it's just glucose syrup and vegetable fat.' 'My husband had to go on a low-cholesterol diet and I figured that there was just too much fat in the coffee creamers. We've become accustomed now to drinking it black, or with very little skimmed milk.'

Looking ahead, health concerns are having an impact upon milk consumption, particularly die use of skimmed milk and other low-fat varieties. This change has been prompted by consumers' concern over health in general, and their level of fat intake in particular. Some consumers found it difficult to wean themselves and their families off milk, initially, and then semi-skimmed milk, in favour of the fully skimmed variety. However, many are persistent in adopting an overall preventative health maintenance regime as well as controlling their weight. So, while a few respondents retained the notion that a cup of real coffee made with cream was still the ideal, many others considered their ideal to be coffee drunk with jusl a dash of milk or black. Unfortunately. Coffee-Mate is perceived to be too close to cream in its taste and textural delivery, and is in danger of being rendered redundant since its creamy association is increasingly deemed undesirable. Coffee-Mate Lite may, however, redeem the situation by offering the same benefits of creamy and rich taste without causing injury to bealth and weight.

Consumer Analyses

TGI User Surveys covering instant/ground coffee and powdered milk/coffee creamer markets yielded I'ive potential consumer groups for Coffee-Mate, some of which are potentially more attractive than others. These clusters warrant further evaluation.

Cluster I: 'Sharon and Tracy' - Experimentalists (Sample Proportion: 15.4 per cent)

They like to enjoy themselves and try new things. They enjoy spending money happily and seem to be very materialistic and status conscious. They go out frequently and are uninterested in political or environmental issues. They are products of the Thatcher years.

Although they are heavy users of instant coffee, they are low-level users of ground coffee. They claim to use Nescafe granules and Maxwell House powder most often. They are below-average users of the category and average users of Coffee-Mate, but heavy users of cream.

They are younger (15-44 years) with a mid- to down-market bias (C2D) and children. They are of middle income (£15,000 up to £30,000), but live in council property, in fading industrial areas and underprivileged areas. They tend to be found in the north of the country (e.g. Scotland, Yorkshire, the north-east).

They read many of the tabloids (e.g. The Sun, Daily Star, Today, News of the World) and the 'mums' magazines such as Bella, Chat and Woman. They are heavy users of ITV (not Channel 4), TV AM and satellite, and heavy listeners to independent radio. They cannot resist buying magazines, and read papers for entertainment rather than for news.

They spend average to high amounts on the main grocery shop, and shop at Asda and M & S (all those exciting new foods). They love shopping for anything, be it food, clothes, kitchen gadgets or whatever. They like to keep up with fashion and believe they are stylish, and feel it is important to try to keep looking young. They will try anything new. They will respond to seeing new things in advertising or in the store.

They are very gregarious and socialize often (heavy users of pubs, wine bars and restaurants). They like to enjoy life and not worry about the future. They holiday abroad (eat, lie and drink in the sun) and like to treat themselves. A fairly hedonistic bunch, they tend to spend money without thinking, spend more with their credit card, and are no good at saving their money. They feel that it is important for people to think they are doing well. They buy cars for their looks and believe that brands arc better than own labels.

At present they are not really using Coffee-Mate as much as one would have expected.

Cluster 2: 'Eileen and Mary' - Cost Constrained, Older, Conservative (Sample Proportion: 23.6 per cent)

Very price aware, they budget when shopping and look for lowest prices. They are very traditional in their habits (don't like foreign food or foreign holidays). They seem to worry about food (food is not safe nowadays), feel safe using products recommended by experts, think fast food is junk, and think it is worth paying more for organic fruit and vegetables and environmentally friendly products), but don't do much about it, perhaps because they can't afford to. They seem to be looking back.

They are light users of instant eoffee compared with the population as a whole, but when they do use instant coffee they claim to use Maxwell House granules and powder most often. They are average users of the category and buy Marvel and St Ivel. They are not really users of Coffee-Mate and never use cream. Older (55+) and down-market (C2DE). They are not working or are retired in 1 or 2-person households; hence fewer of this type have children at home. They live in multiethnic areas, council areas and underprivileged areas on a low household income (£5,000-11,000).

They read the tabloid press and Bella and Chat. They are also heavy users of I TV, Channel 4 and TV AM, and listen to independent radio.

Not surprisingly, their expenditure on the main grocery shop is low and they tend to shop daily at places such as Kwik Save and the Co-op. They enj oy shopping, but always look for the lowest prices, decide what they want before they go shopping and budget for every penny. They frequently enter competitions, find saving difficult, save for items they want, and like to pay cash.

They are by nature very conservative. They like routine, dislike untidiness, would buy British if they could, have a roast on Sundays and prefer brands to own label. They believe job security is more important than money, would rather have a boring job than no job, and prefer to do rather than take responsibility. Due to both their age and financial constraints, they socialize rarely. Most of this group never entertain friends to a meal, and never go to a pub, a wine bar or a restaurant.

Cluster 3: 'Sarah and Anna' - Affluent, Young Foodies (Sample Proportion: 24.4 per cent)

Unencumbered, by children and well off, they love both travelling and food (many claim to be vegetarian). They do not have to budget and can afford to treat themselves to perfume and foreign holidays, preferably more than once a year. They are not interested in additional channels on satellite TV and tend to be light users of all media.

They are heavy users of coffee and ground coffee. They buy decaffeinated, Gold Blend, Aha Kica, Cap Colombie, Sainsbury, M & S and Tesco. They are above average users of the category, claim to buy Coffee-Mate and Marvel most often, and also use cream.

Aged 35-54, predominantly ABC], they earn above-average incomes and tend to be working full time. They live in areas of affluent minorities, young married suburbs and metro singles, in 1 or 2-person households. They are more likely to be found in London, the south and the south-west.

They read the quality press including the Guardian, the Independent, The Times, the Financial Times and the Daily Telegraph. They also read the Mail and the Express and all the equivalent Sunday papers including the

Observer. They are light users of independent radio, but they do listen to the radio in the car.

They have a high expenditure on their main grocery shop (S71+) hut shop infrequently at, of course, Sainsbury, Tesco and Safeway. They really enjoy cooking and food, read reeipes in magazines and like to try out new foods. Their tastes will be varied as they also enjoy travelling abroad on holiday, where they avoid the package trips and like to do as much as possible.

They entertain frequently and invite friends for meals. They also use pubs and wine bars, though not as much as 'Sharon and Tracy', and they are heavy users of restaurants.

They are health eonscious (well, they can afford to be) and claim to include fibre in their diet, eat wholemeal bread, have less fat in their diet and eat fewer sweets and cakes. They are prepared to pay more for food without additives and for environmentally friendly products. They also claim to exercise.

They can afford to treat themselves and prefer to buy one good thing rather than many cheap ones. They also like to keep up with technology and want to stand out from die crowd. In their fortunate position they enjoy life and don't worry about the future.

They also claim never to buy any product tested on animals, buy unleaded petrol, use recycling banks and disapprove of aerosols more than the population at large. They make use of credit cards, especially for business, like to be well insured and consult professional advisers.

Cluster 4: 'Dawn and Lisa - Cost Constrained. Young Families (Sample Proportion: 13.9 per eent)

Rather like 'Eileen and Mary', this group is severely constrained by their low incomes. But unlike the previous group, they are often younger and often working part time or are unemployed or students, although they may have children. They are also not remotely concerned about health or the environment. Many left school before the age of 16.

They are heavy users of instant coffee, but do not use ground coffee. They buy Nescafe granules and Maxwell House powder. They are below average users of the category and never use cream.

This group is biased towards the 15-34 age group and is down-market (C2DE) with low incomes (£5,000-11,000). They are to be found in council estates, fading industrial areas and underprivileged areas in the east, northeast and London. They have young families and there is a slight bias to larger families than in other groups.

They read the tabloid press, Bella and Chat, and they are heavy viewers of 1TV, TV AM and satellite, and heavy listeners to independent radio.

Their expenditure on the main grocery shop is low and they shop daily or once a week at Kwik Save. They always look for the lowest price, watch what they spend, budget for every penny and look out for special offers. They want to save, but find it difficult.

As a result of their difficult financial circumstances, they rarely use wine bars, pubs or restaurants. They claim to enjoy going to the pub, but cannot afford to these days. Similarly, when they can afford a holiday, they prefer to holiday in the United Kingdom.

They have little time or money to worry about the environment or health issues, and claim that health food is bought by fanatics. They believe that frozen food is as nutritious as fresh foods. They tend to buy own label, presumably because it is cheaper rather than because they believe own-label goods are better than branded goods.

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