Own Label milk prices down - Branded lines up

Tesco’s recent milk price decreases have triggered price matching by Sainsbury’s. Whilst overall price drops have been seen on Standard Own Label milk, a number of branded milk products have experienced price increases.

The graph below details the price for Own Label 4 Pint variants when they are not on promotion – Whole, Semi Skimmed, Skimmed and 1% Fat. Sainsbury’s were quick to react to the price drop seen in Tesco, lowering their price the following day (5th March) to match the £1.00 point set in Tesco and Asda. Morrisons continue to maintain a base price of £1.39.


When taking a closer look at the effect of promotional activity on the price of milk, we can see that both Tesco and Morrisons ran Buy 3 for £3 promotions prior to Tesco’s price drop announcement, meaning that consumers could have previously purchased milk for £1 per unit if they had opted for the multibuy offer. Tesco implemented this multibuy from July 2013 onwards, briefly removing the promotion before making changes to the base price in March. Morrisons have run this promotion consistently for more than 52 weeks.

Whilst Own Label 4 Pint milk has experienced base price decreases across retailers, the following graph tells us that the base price across leading branded milk SKUs have seen price increases this year.
Alpro has increased in price throughout January and February this year. This has been driven by increases of up to 20p in Tesco and 21p in Sainsbury’s.
Cravendale’s average price increase is primarily driven by Asda’s changes to the Skimmed, Semi Skimmed and Whole Milk 2000ml variants, from £1.98 to £2.20.

Lactofree’s average price has decreased, driven by price drops in Morrisons, from £1.39 to £1.34. Price increases for Lactofree were, however, experienced in Sainsbury’s and Tesco in February, up by between 1p and 5p.
The price of Organic Own Label milk in Tesco increased the same day as the price drops for Standard Own Label 4 Pint SKUs. A total of eight organic milk lines increased on 04 March, up by between 2p and 14p.


Source: brandview.com, 11th May 2014

Barny gets his paws on the convenience and impulse markets

Barny, already the number two children’s biscuit brand after one year on the shelves, is coming to the convenience channel in a new 30g format for on-the-go snacking.

Barny is a bear-shaped sponge snack with a chocolate hidden centre. Carefully baked with ingredients including wheat flour, milk, chocolate and eggs, the product contains no artificial colours or preservatives.

The new pack is a convenient, individually wrapped 30g portion ideal for small stores, and  aims to attract shoppers looking for a little snack to pick up on the move.

Barny will be supported by a £4 million UK marketing investment in 2014, including TV advertising, showing how the brand can be a companion to discovery and inspire adventures.

It is already the number two brand in children’s biscuits, with 7 per cent penetration, putting it in the top five per cent of all new biscuit launches over the past four years.

Rick Lawrence, head of biscuits at Mondelēz International, said: “We’re excited to bring the Barny magic to new channels.

“The 30g format aims to drive new purchasing occasions, particularly within convenience and impulse, for mums looking to pick up a little snack on the go.

“We’ve been delighted with the success of Barny – it’s been one of the biggest biscuit launches in four years, and has already achieved more than £7 million sales in less than 12 months.

“This new format is the new stage on the Barny journey, and we hope it’s going to help even more consumers discover the brand.”

Source: Food & Drink Innovation Network, 8th May 2014

New Pop'n'Pour products from Butterkist

Tangerine Confectionery has unveiled a brand new innovation in the popcorn industry, with the launch of a range of Pop ‘n’ Pour products. The products invite consumers to enjoy microwave popcorn in a new and exciting way. The Pop ‘n’ Pour cartons consist of two bags of plain popcorn and two sachets of flavoured sauce.

Consumers warm a sachet of sauce in warm water, whilst the popcorn is popping in the microwave; once ready they drizzle the sauce over the popcorn, creating their own treat in minutes. Available from May, the 220g Pop ‘n’ Pour products launch in two flavours, Chocolate and Chocolate Orange.
The products have a MRRSP of £2.29. Helena Blincow, Butterkist Brand Manager, said:

“We’re very excited to announce the launch of this truly innovative product to the Butterkist portfolio.

Pop ‘n’ Pour has been developed based on the rising trend of consumer engagement and involvement with products. “In the last year alone the Butterkist microwave range has seen a sales growth of +32 per cent*.
“We predict the Pop ‘n’ Pour range to do extremely well, especially as the Chocolate flavour boasts only 64 calories per serving and the Chocolate Orange 67 calories.
“The new range adds to the variety of popcorn that can be enjoyed from the comfort of consumers’ homes.”

Source: Food & Drink Innovation Network, 9th May 2014

Cuckoo new Bircher muesli launching in the UK

Cuckoo offers consumers a revolutionary take on traditional Bircher muesli with new varieties designed to appeal to Britain’s adventurous palate.
Inspired by the century-old Swiss recipe for Bircher muesli and the Alpine lifestyle, Cuckoo combines tradition with pioneering flavour combinations and contrasting, complementary textures.

Every spoonful of Cuckoo Bircher muesli is varied with juicy berries, crunchy dark linseeds and flavourful swirls of fruity compote. The bold colours and layers of quality natural ingredients ensure Cuckoo Bircher muesli appeals to the eye and stands out on the shelf.

From a range of five, including Elderflower & Cranberry, Choco Sour Cherry and Mango & Coconut, the on-the-go pots are designed to be enjoyed at any time: not just for breakfast. With fewer than 300 calories per 190g single-serve pot, Cuckoo Bircher muesli is low-GI and a great source of fibre, making a healthy way to start the day, an afternoon pick-me-up or a dessert option.

Cuckoo is also offering smaller pots (90g or bespoke sizes as required) for the travel market. Cuckoo Bircher muesli is proud to be made in Britain with home-grown jumbo oats and creamy West Country yoghurt and provides consumers with a balance of health and deliciousness.

The Cuckoo Bircher muesli selection comprises five flavours, all RRP £2.49 for a 190g single-serve pot:

• Apple & Cinnamon Spice, with raisins
• Elderflower & Cranberry, with a blueberry and blackcurrant compote
• Choco Sour Cherry, with a layer of Madagascan vanilla
• Mango & Coconut, with a tropical twist of lime and ginger
• Apricot & Madagascan Vanilla, with a raspberry compote

Co-founders Lucy Wright and Anna Mackenzie are childhood friends with a passion for good food. They said: “We thought the on-the-go breakfast and snack sector needed a fresh new brand which was as much a treat for the taste-buds as it was for your body.

“Bircher muesli is a classic Swiss breakfast dish and we were keen to give it a fun, young and modern twist with recipes reflecting our taste for bold, interesting flavours, designed to be eaten at any time.”
Leah Anderson-O’Loughlin, Selfridges Bakery and Dairy Buyer said:

“I’m delighted to launch Cuckoo; the girls have worked hard to source the best ingredients and production methods, resulting in an exceptionally high-quality product.

“The packaging is fun and peppy, whilst communicating to customers that they’re buying a luxury muesli, that’s also very good for you.
“Selfridges are keener than ever to support young food producers and Anna and Lucy are a prime example of the kind of young food entrepreneurs we love to work with.”

Source: Food & Drink Innovation Network, 9th May 2014

Demand for healthy foods drives sales at Pret a Manger

Popular sandwich chain Pret A Manger has reported a 15% jump in sales to £510m, boosted by expansion and demand for healthy foods such as porridge, bananas and vegetable juices. Underlying profit was up 9% to £67m for the year to January 2014.

Chief Executive Clive Schlee said: “Sales are still pretty much at the same pace as last year and profits were affected by the expansion into new markets. Growth is still very strong.”

Schlee added: “The drive for healthier food has been a real growth area — we now sell more cold-pressed vegetable juices than super club sandwiches. People wanting the choice to sit down has also helped sales and we are closing our smaller takeaway outlets and opening larger shops with seating.”

After opening 40 outlets last year, the company now operates 352 stores and plans to continue its UK and global expansion with more shops in New York, Washington, Chicago, Boston, Paris and Hong Kong. Schlee said the group is also looking at Shanghai.

NamNews - Friday 9th May 2014

Coupon craze reaches new heights

UK shoppers’ appetite for coupons has reached new heights, increasing by over a third (35%) in 2013 compared to the previous year. According to coupon experts Valassis, coupons and vouchers worth £1.7bn were redeemed last year showing that the coupon craze is far from over even though the economy is strengthening. This means the average household redeems coupons and vouchers worth approximately £64 in a year.

Figures from Valassis retailer clients revealed that coupon and voucher redemptions increased by 35% with 603 million coupons redeemed in 2013, up from 448 million in 2012. Whilst retailer-issued coupons have driven growth, manufacturer-issued coupons are increasing.

The figures also show that coupon redemption is continuing its upward trend, with volumes increasing by 223% since 2010. Retailer-issued coupons are driving most of the growth and account for 71% of redemptions or 466 million coupons.

Charles D’Oyly, managing director of Valassis, commented: “The 35% increase in coupon redemptions in 2013 is exceptional. Bearing in mind that retail sales in 2013 grew by just 1.6% compared with 2012, such growth is remarkable.

“The recent increases in retailer-issued redemptions are primarily due to the popularity of coupon-at-till promotions and price matching promises which mean the consumer would not have been able to buy certain items as economically elsewhere.”

Compared to 2012, and indeed any of the last five years, redemption of manufacturer-issued coupons is rising once again and 2013 saw a 50% jump in the volume of such redemptions, compared the previous year.

D’Oyly added: “What’s behind this growth? Our recent research indicates that consumers’ use of coupons is widespread across all demographics, and supermarkets have responded accordingly by increasing their use of coupons as the promotion of choice for targeted consumer offers.

“We were also encouraged to see that part of the overall growth was driven by manufacturer coupons which have been largely flat for a number of years. We attribute this resurgence partly to increased awareness of couponing’s efficiency and effectiveness as a promotional tool, as well as the tendency for manufacturers to take their lead from retailers’ promotional activity. In 2013, average face value decreased from £1 to 85p, which suggests that manufacturers are refining their coupon tactics and trying to find optimal offer points that trigger behavioural change with consumers.”

NamNews - Thursday 8th May 2014

Warburton secures NewBurn Bakehouse listings with Starbucks and Costa

Warburtons is taking its ‘Newburn Bakehouse’ range of gluten-free products into coffee-shops across the UK, having secured listings for two of its wraps with Starbucks and Costa. The Gluten Free Chicken and Basil Salad Wrap (£3.75) is produced in partnership with Costa, and is the first savoury gluten free product to be offered by the coffee shop chain in the UK. The wrap is also the first gluten free product within a coffee shop to receive accreditation from Coeliac UK.

Additionally, Starbucks is rolling out the group’s Gluten Free Veggie Good Houmous Wrap (£2.99 takeaway/ £3.59 eat-in) across its outlets in the UK, following a successful pilot.

Warburtons noted: “It’s a known fact that eating out is one of the biggest challenges people with food intolerances face – our loyal customers tell us this everyday. So it’s great to see big brands taking the lead in the gluten free food to go sector. As mainstream demand for free from continues to increase, we expect to see more and more establishments recognising the market opportunity with this fast growing audience”.

NamNews - Thursday 8th May 2014

Tesco close to finishing staff restructure and to shut 100 in-store bakeries

Tesco is reportedly close to concluding a major staff restructure across its entire business as part of Chief Executive Philip Clarke’s plan to reshape the business in a bid to become a global multichannel leader.

According to Retail Week, the struggling has been reviewing its roles across all levels to see if it has the right positions for its multichannel growth. The trade magazine said that Tesco will redeploy around 100 staff from the roles they are in, and create several hundred vacancies across other functions. The roles are said to be focused around the middle and junior level, and run across all functions including IT, marketing and commercial.

Meanwhile, Tesco is planning to close more than 100 of it in-store bakeries across the South East. According to The Grocer, the move comes after Tesco revealed it is to open a new centralised kitchen in Surrey producing fresh bread and artisan bakery products for its stores as part of it expanding Euphorium project.

The trade magazine quotes a Tesco spokeswoman as saying: “We already offer Euphorium bakery products in several of our stores in and around London and feedback from customers has been really positive. As part of our programme of creating compelling and enjoyable retail destinations for our customers, we’re going to be introducing the Euphorium range of artisan breads and cakes to more of our stores in the coming months.”

NamNews - Wednesday 7th May 2014

Kantar May 2014: Price competition intensifying as big four continue to lose share to the discounters

Latest grocery share figures from Kantar Worldpanel for the 12 weeks ending 27 April 2014 show that grocery market is growing at just 1.9% – the lowest level for at least 11 years. This low growth has been caused by intensifying price competition among the supermarkets and a resulting drop in price inflation.

Edward Garner, director at Kantar Worldpanel, explained: “There are clear signs that the major supermarkets are reviewing their strategies in the face of increasing competition. We’re now seeing the big four moving away from ‘here today, gone tomorrow’ promotions and toward everyday low prices – with Tesco, Morrisons and Asda all announcing price cuts this month.

“The proportion of sales on promotion currently stands at 45% among the big four. By contrast, the figure at Aldi is just 3%. Tesco now states ‘Prices down and staying down’, Asda features ‘Price lock’, Morrisons introduced ‘I’m Cheaper – everyday low prices’ and the Co-operative has adopted ‘Fair and Square’ pricing in a move to give shoppers lower everyday prices with greater transparency. Lower prices across the board is great for shoppers, but has driven down market growth to its lowest level in 11 years.”

The figures show that Waitrose, Aldi and Lidl all continued their strong growth, achieving new record shares during the period with 5.1%, 4.7% and 3.5% respectively. Aldi’s sales growth rate of 36.1% is an all-time record for the retailer and Lidl’s 20.9% growth is its highest since August 2004.

Among the big four, Asda proved the most resilient, holding its 17.3% market share and narrowly beating the market with 2.0% year-on-year growth. Tesco, Sainsbury’s and Morrisons all suffered declines in their market share, whilst Tesco and Morrisons recorded a fall in actual sales.

Kantar Worldpanel said that by its measure, grocery inflation now stands at 1.5%. This is the seventh successive fall and lowest level since June 2010 – reflecting the intensifying price competition in the market.

These findings are based on Kantar Worldpanel data for the 12 weeks to 27 April 2014. Kantar Worldpanel monitors the household grocery purchasing habits of 30,000 demographically representative households in Great Britain. All data discussed in the above announcement is based on the value of items being bought by these consumers.

NamNews - Wednesday 7th May 2014

Burgers for breakfast trend is growing

Traditional bacon sandwich tops Britain’s breakfast top 10, with croissants coming in last

Foodservice industry figures from the NPD Group show that burgers are fast becoming a British breakfast staple out of home. In the year ending December 2013, we consumed more than 100 million burgers when we had breakfast away from home, up more than +6% on 2012. Around one in 12 out-of-home burger servings (8.6%) were gobbled up before 11am compared to one in 16 (6.2%) five years ago (to year ending December 2008).

Kids are keener than ever on breakfast burgers
Groups with kids up to 17 years of age are playing an important role in the growing popularity of burgers as a breakfast item. Five years ago, adults unaccompanied by kids consumed more than 67% of burger servings eaten away from home in the 6am to 10:59am breakfast time slot. Groups with kids up to 17 years of age ate the remaining 33%.
Fast forward five years to 2013 and the adult share of breakfast burgers is down eight percentage points (at just over 59%), while groups with kids now get through nearly 41% of Britain’s breakfast burger servings – more than 40 million each year.


But bacon sandwiches are still the nation’s favourite
The NPD Group data reveals there’s no beating the mighty bacon sandwich, which took first place in the league table of our favourite breakfast food items eaten out of home.

Britons happily munched through more than 268 million bacon sandwiches when they ate breakfast away from home in 2013. Taking second, third, fourth and fifth places, toast, eggs, sausage and baked beans accounted for a further 793 million servings combined in the ‘out of home’ British Breakfast Top 10.

Croissants came tenth – right at the bottom of the British Breakfast Top 10 – with little more than 91 million servings, indicating that our tastes at breakfast time are distinctly ‘uncontinental’.

Is there any chance of our breakfast preferences becoming more European? NPD Group’s figures suggest Britons would rather have a breakfast sandwich – meaning any sandwich with a breakfast-type filling – than a croissant. We ate close to 117 million breakfast sandwich servings in 2013, over 25% more than for croissant servings.

The NPD Group: British Breakfast Top 10 food items (breakfast eaten while out of home) Year ending December 2013	Servings (millions) 5am to 10:59am
Bacon sandwich	268.1
Toast	247.0
Eggs	198.0
Sausage	196.6
Baked beans	151.7
Hash browns	133.7
Breakfast sandwich	116.6
Burger	100.1
Cereal	99.6
Croissants	91.0

Jack MacIntyre, UK Foodservice Account Manager for The NPD Group, said: “When people eat breakfast – perhaps on the way to work, or in the office, or as a treat at weekends – burgers are clearly growing in popularity. But the breakfast classics – servings of good old-fashioned bacon sandwiches, toast, eggs, sausage and baked beans – are unlikely to be toppled anytime soon. And, despite Britain’s improving café culture, it doesn’t look like continental breakfast favourites such as the croissant are going to sidetrack the appeal of the Great British Breakfast.”

Note to Editors:

• All data is for breakfast eaten ‘out of home’ in Britain (England, Wales and Scotland) in the year ending December 2013.
• In this survey, breakfast is defined as food bought between 5am and 10:59am.
• Groups with kids: a group of diners containing at least one person under the age of 17.

Source: Crest NPD, March 2014