NPD Reports on the Economy's Effect on Consumers' Meal Strategies

Leftovers Again? Consumers make in-home meal adjustments to manage
expenses
ROSEMONT, Ill.--(Business Wire)--
With food prices increasing at the fastest pace in 17 years and
gas prices soaring, a new study from The NPD Group, a leading market
research company, finds consumers looking for value, making trade-offs
and counting on leftovers when planning their meals.

The NPD report, entitled, How Do Economically Challenging Times
Affect In-Home Meal Strategies?, found one-third of adults feeling
their financial situation is worse this year than last, and the most
concerned are those with larger families. Among these "financially
concerned" adults, more than half said they are trying to prepare
meals at home, to use up leftovers, and to stock up when items are on
sale, compared to what they were doing a year ago.

"American consumers now spend about 10 percent of their disposal
income on food and have not, historically, allowed food expenses to
rise faster than their disposable income," said Harry Balzer, vice
president, The NPD Group. "Consumers will likely shift behaviors to
find food solutions that meet a budget before spending more on the
same foods."

Another strategy consumers use to manage their spending on food is
to change where they get meals and snacks. In past economic downturns,
they have turned more to supermarkets and meals at home and pulled
back on going to restaurants. Last year 80% of meals and snacks were
consumed at-home versus 20% at restaurants, and according to another
recent NPD study on restaurants and the economy, the restaurant
industry posted no organic growth in 2007.

"Despite rising grocery prices, in-home meals still provide a
better value to consumers," said Arnie Schwartz, who heads up The NPD
Group's food and beverage unit. "One estimate shows that an in-home
meal costs about a third of a meal purchased away from home."

Price doesn't appear to be the only motivation for consumers to
eat more meals at home, according to the NPD study. Consumers still
say that eating healthy is another reason to prepare their own meals.

"Consumers say that price, health and convenience appear to be the
key drivers when it comes to food consumption," said Schwartz. "Health
and convenience are longer-term factors that aren't dictated by the
economy, and are consistently top-of-mind with people."

An added longer-term factor fueling the increase in in-home meals
is a leveling off of women entering the workforce.

"One of the pillars of change affecting the way people eat over
the last five decades has been the increase of women in the
workforce," said Balzer. "We haven't seen those increases in women
working recently and that too is influencing the choice of where
people eat."

These societal and attitudinal shifts combined with the current
economic issues, the NPD study notes, present both challenges and
opportunities for the food industry.

"For the food industry, it really comes down to the basics of
listening to and addressing the contemporary needs of the consumers,"
said Balzer.

About The NPD Group, Inc.

The NPD Group is the leading provider of reliable and
comprehensive consumer and retail information for a wide range of
industries. Today, more than 1,600 manufacturers, retailers, and
service companies rely on NPD to help them drive critical business
decisions at the global, national, and local market levels. NPD
helps our clients to identify new business opportunities and guide
product development, marketing, sales, merchandising, and other
functions. Information is available for the following industry
sectors: automotive, beauty, commercial technology, consumer
technology, entertainment, fashion, food and beverage, foodservice,
home, office supplies, software, sports, toys, and wireless. For more
information, contact us or visit http://www.npd.com/.

The NPD Group, Inc.
Kim McLynn, 847-692-1781
Kim_mclynn@npd.com

Copyright Business Wire 2008