The Grocer – 13 January 2018

focus on... jams & spreads

46 | The Grocer | 13 January 2018 Get the full story at thegrocer.co.uk

says Whole Earth brand controller Kirstie

Hawkins. “As an ingredient in cakes and

bakes to smoothies, curries and soups, our

nut butters  t a variety of food types .”

Promoting spreads as products with gen-

uine culinary clout will be crucial as brands

seek to maintain their appeal in the face of

soaring prices and growing sales of own

label, which are up 14.3% to £206.6m on

volumes up 10.4% [Kantar]. Private label’s

rise is partly driven by huge growth for the

own-brand reliant Aldi and Lidl, up 38% and

13.4% in value respectively.

Brands, meanwhile, are up 1% in value

but volumes are down 8.2%. That equates to

4.8 million fewer kilos sold in the past year;

stark evidence of the need to invest in brands

to convince retailers and shoppers to swal-

low higher prices. In the wake of the 2016

‘Marmitegate’ dispute with Tesco, Unilever

has heavily promoted the spread’s versatil-

ity. It is performing better than others in the

category; value sales have inched up 0.3% on

volumes down 2% [Nielsen].

Classic spreads with a twist

“Breakfast is still key for Marmite,” says mar-

keting manager Vanni Cataldi. “However, it’s

an incredibly versatile product and we want

to encourage consumers to try new and excit-

ing ways to use it. Our social channels play

a huge role in this by providing a constant

stream of exciting food content. We have seen

an increase in consumers using Marmite as

part of brunch recipes, adding it to eggs, avo-

cado and cheese for an extra burst of  avour.”

Nutella is another brand going down this

route. “The spreads market bene ts from its

positioning of versatility,” says Levi Boorer,

customer development director at Nutella

owner Ferrero. “Being an adaptable spread,

Nutella can be incorporated into the majority

of breakfast options, making it a top choice

for customers.” Nut butter brand Pip & Nut

is thinking along the same lines with the

launch of its own cookbook last January.

All this could help mitigate the impact of

one undeniable threat: Brexit. Boorer cites

inflation as an “obvious challenge” but

insists Ferrero remains dedicated to invest-

ing in Nutella, pointing to the brand’s  rst

Christmas ad campaign last December pro-

moting it as a family breakfast option.

Smaller players are also feeling Brexit’s

bite. “Like many businesses, Brexit

“ The spreads market

bene ts from its

positioning of

versatility”

● Higher prices are driving
6% (£28.9m) growth for
jams & spreads but not
deterring shoppers from
buying more. Volume sales
have grown 1.7%.
● Prices are now 4.2%
higher than a year ago.
Purchase frequency has
grown by 1.1%, with the
category bought 10.5 times
a year on average.
● Higher prices have been

driven by a 6.4% fall in

promotions, with 18.7% of

sales on deal.

● Premium products

have grown 53.5% across

total spreads. Own label

premium is up 52.7%.

● Aldi and Lidl’s respective

growth of 38% and 13.4%

has helped own label’s

share of the category jump

from 37.4% to 40.3%, as has

the development of new

products by Asda.

Value sales for jams & spreads

Sam Jenner

Kantar Worldpanel

The take-home snapshot is produced by Kantar Worldpanel. Kantar Worldpanel monitors the grocery

retailer take-home purchasing habits of 30,000 demographically representative British households.

Call 020 8967 0007 or visit http://www.kantarworldpanel.com for details

Honey

.m (▲ 9.5%)

Jam

.m (▼ 1.5%)

Peanut butter

.m (▲ 17.1%)

Chocolate spread

.m (▲ 4.9%)

Branded

.m (▲ 1.0%)

Own label

.m (▲ 14.3%)

Marmalade

.m (▲ 2.9%)

Yeast spread

.m (▲ 3.0%)

Curd

.m (▼ 9.9%)

Other sweet spread

.m (▲ 3.0%)

Brands vs own label

Source: Kantar 52 w/e 8 October, 2017. For full data, visit thegrocer.co.uk