The Grocer – 13 January 2018

focus on... jams & spreads

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

has had a big impact on Pip & Nut,” says
founder Pip Murray. Although sales of her nut
butters through the supers have almost dou-
bled to just shy of £1m [Nielsen], it has been
through a steady stream of NPD, including a
chocolate coconut hazelnut butter launched
last May. The brand says it’s on course to turn
over £6m this  nancial year.
Nutella and nut butter brands such as
Whole Earth and Meridian, up 16.1% and
35.2% respectively [IRI 52 w/e 14 October
2017], have a distinct advantage over spreads
such as jam, marmalade and curds: they’re
fashionable. Chocolate spread, up 4.9% on
volumes up 4.1% [Kantar], is marketed as a
permissible indulgence, while nut butters are
cashing in on growing demand for high pro-
tein, more ‘natural’ (ie less processed) food.
This has helped make nut butters the fast-
est growing part of the market, with 17.1%
growth on volumes up 9.9%, equating to
an extra £13.7m through the tills [Kantar].
“Increasingly, people are looking to spreads
to form a healthier part of a daily routine,
at breakfast, lunch or dinner,” says Richard

“ Increasingly, people are

looking to spreads to

form a healthier part of

a daily routine”

Duerr, marketing & sales director at Duerr’s,

owner of the Hi-Pro peanut butter brand.

Duerr’s is treading a similar path to Whole

Earth – sponsor of the World Triathlon Series

and endurance race Man v Horse – in align-

ing Hi-Pro with sports nuts. “Hi-Pro is a high

protein, sugar-free peanut butter that con-

tains no whey,” adds Duerr. “This unique

combination has proved hugely successful

with health-conscious buyers who keep com-

ing back.”

Such consumers will pay a premium for

products they perceive as healthier. At cat-

egory level, the average price of nut butters

is up 6.8% [Kantar], thanks to a combination

of a cut in deals (a category-wide trend, says

Kantar’s Jenner; 18.7% of spreads were sold

on deal, down 6.4% on the previous year),

commodity cost rises being passed on, and

a shi to more premium brands.

“Faster value growth in peanut butter

re ects the fast growth of premium brands,”

adds IRI head of strategic insight Martin

Wood. “There is more trading up , as re ected

by the strong growth of Whole Earth and

Meridian and smaller brands like Pip & Nut.

Premium brands are also driving growth in

honey, and while jam is in decline, brands

like Bonne Maman are gaining share.”

Demand for Manuka honey, undaunted by

recent revelations over the authenticity and

e cacy of certain products on the market, is

playing a part in the growth of honey, which

is up 9.5% on volumes up 6.4% [Kantar]. But

market leader Rowse can also claim some

of the credit. Sales are up 4.5% on volumes

that have dipped slightly [IRI] as Rowse has

pushed its use as cooking ingredient.

Honey is also bene ting from the percep-

tion that it provides a more natural source

of sweetness than products containing

Top  ve jam and spread brands

Nutella

.m (▼ 1.1%)

Rowse

m (▲ 4.5%)

Bonne Maman

.m (▲ 0.6%)

Whole Earth

.m (▲ 16.1%)

Hartley’s

m (▼ 14.8%)

IRI is a leading prthat help FMCG manufacturovider of big data,ers and r pretailers to gredictive analytics and forwarow. d-looking insights

http://www.IRIworldwide.com

IRI is a leading provider of big data,

predictive analytics and forward-

looking insights that help FMCG

manufacturers and retailers to grow.

http://www.IRIworldwide.com

● Two brands

stand out as the

star performers in

spreads this past

year: Whole Earth

and Meridian,

which have enjoyed

respective growth

of £3.3m and £3.9m

as retailers have

increased space for

the booming nut

butter sector.

● Both have used

NPD and savvy

marketing for the

health bene ts

of nut butter to

their advantage,

while keeping a

lid on prices in a

market that’s seen

average prices rise

by 4.7% [IRI 52 w/e

14 October 2017] as

a result of soaring

ingredient costs.

● Meridian has

been particularly

active with

innovation ,

launching a duo of

cocoa-based nut

butters followed by

new macadamia,

pecan and brazil

nut butters.

● Rowse is the next

fastest growing

brand in spreads,

although its £2.1m

gain is price-

d r iven. Volu mes

have fallen by

1.2% in the face

of sti ening

competition from

own label as the

major mults look to

stem losses to the

discounters.

● In October Rowse

said it was looking

to kickstart growth

with the Three

Bears ad campaign

starring three

gay housemates

creating porridge

recipes with the

brand’s honey.