• Look at the notes about the key trends in the milk drinks market. • Some information is missing. • You will hear part of a pre

We all know that there have been some major changes in our market over the last len years, and we can expect further changes over the next ten years. I’d like to present the trends over the last ten years and also anticipate the trends we predict over the next ten years.
     I’m not going to take long -- just long enough to give you an overview of developments so that we can discuss the implications. Do interrupt me if you’ve got any questions or comments. So, let’s start by looking at trends over the last ten years. On this first transparency you’ll see two pie charts -- the first represents the milk product market ten years ago, the second, how it looks now. There are two outstanding features: firstly, the total market has grown substantially from 280 million litres to 440 million litres; secondly, the actual sector share of the. tour main milk products has changed radically; the full milk sector has fallen dramatically from 74% to just 53% -- here on the pie chart; the skimmed milk sector has rocketed from only 12% to 40% , reflecting the weight of publicity directed towards low fat diets. The other two sectors are long life milk and milk drinks. It’s interesting to see that the long life sector has risen from 5% to 13% -- a significant rise considering initial consumer resistance to this type of milk. And finally, the milk drinks have remained pretty stable, just increasing by 1%. So the two big winners of the decade are skimmed milk and long life milk.
     Now, what’s really important is the likely trends over the next ten years in these four sectors. If you look at this graph you will see the same trends I just outlined for the four sectors. Beyond this line we’ve plotted the anticipated trends over the next ten years. We forecast that the full milk sector will decline more gradually over the next five years to around 40% and then fall a further 2’% by the end of the 10-year period.