Cheese Market

Published 12 March 15

Discount retailers have comfortably outperformed the big four supermarkets in the Cheddar market, showing double digit growth throughout the last year. Volume growth of 36% for discounters was impressive in a market that contracted by 1.9%, in contrast the top 4 multiples saw a volume decline of almost 5%. In the year to February average price per kilo for Cheddar in the top 4 multiples increased ahead of the total market, while average price in the discount supermarkets, fell by 4.2% increasing attraction for price concious shoppers.

 

GB Cheddar Market - 52 w/e 1 Feb 2015

 

Yr on Yr %

Yr on Yr %

Volume Change 

Price Change

Total Market

-1.9

2.4

Total Hard Discounters

36.1

-4.2

Top 4 Multiples

-4.8

3.2

 

Cheddar growth within the discounters reflects to some extent their broader sales growth. There may be a further explanation for their exciting gains in Cheddar sales volume. According to The Grocer, discounters added new British Cheddar lines in 2014, placing more emphasis on new formats and flavours, to complement their already strong Continental offering.

The Guide to Cheese report published by the Grocer in January 2015 also referenced claims that the cheese category can be confusing to the average shopper. Highlighting that the number of offers and promotions available, combined with the mechanics of the deal can be off-putting. The strategy of discount retailers is to rely less on deals and emphasise a compact range of products at regular low prices, a strategy which has proven to be successful in the Cheddar market.

 

GB retail cheese sales for the 52 weeks ending 1 February 2015, when compared with the previous year:

  •  Total cheese expenditure has increased by 1.8% to £2.81 billion, driven by a 3.1% increase in the average price of cheese.
  • The average price of a kilo of cheese is £6.80/kg.
  • Volume sales have declined by 1.3% year on year (YOY) to 413,284 tonnes. The proportion of households that buy cheese is high at 98.6%, but average volume purchased per trip fell by 2.5%, also, the average buyer bought 2.3% less, contributing to the overall volume decline.
  • Branded Cheddar volumes have declined by 11.3% YOY, private label Cheddar volumes are up 4.5% over the same period.
  •  The average price of branded Cheddar has increased by 5.4% YOY to £7.44/kg, while private label cheddar has increased by 1.3% YOY to £6.18/kg. On average, branded cheddar is £1.26 more expensive per kg than private label Cheddar.
  • Volume sales for mature Cheddar, which accounts for just over half of Cheddar volume sales, grew by 2.9% YOY. Extra mature remains the second most popular type of Cheddar, although volumes are down 6.4% YOY.

 

Total Cheese Market

52 weeks ending 1 Feb 2015

 

Spend (£000s)

YOY diff

Volume (000kg)

YOY diff

Average price (£/kg)

YOY diff

TOTAL CHEESE

2,811,340

1.8%

413,284

-1.3%

6.80

3.1%

Total Cheddar

1,489,260

0.4%

224,223

-1.9%

6.64

2.4%

Soft continental cheeses**

205,111

6.4%

31,044

3.8%

6.61

3.9%

Territorials* (excl blue)

209,128

-1.0%

29,574

-4.6%

7.07

2.5%

 

 

Cheddar Market - By Type

Total Cheddar cheese volume is 1.9% lower than a year earlier at 224,223 tonnes. Total expenditure has increased though due to an average price increase of 2.4%. The most recent 52 week data shows total spend at just under £1.5 billion, an increase of 0.4%.

There has been some change in this category. Extra mature and medium Cheddar volume has declined by 6.4% and 11.5% respectively. Consumers may be switching into different Cheddar varieties as mature and mild Cheddar have both seen increases in volume sold.

            

52 w/e 1 Feb 15

Source: Kantar Worldpanel

Total value

£ 000s

Total volume tonnes

 

Average price

£ per kg

 Year on year

% Diff

Total Cheddar*

1,489,260

224,223

 

6.64

2.4%

Extra mature

274,684

39,057

 

7.03

0.6%

Mature

763,034

114,151

 

6.68

3.4%

Medium

102,739

15,626

 

6.57

2.7%

Mild

213,471

36,595

 

5.83

1.0%

 
Cheddar March 2015
 
 * Please note - Total refers to all categories of Cheddar. In addition to mild, medium, mature and extra mature; the Cheddar category includes: farmhouse, full flavour, vintage and other cheddar types.

 

Cheddar Market - By Brand

Branded Cheddar products have seen volumes decline by 11.3% in the 52 w/e 1 Feb 2015. Households that are purchasing branded Cheddar are doing so 4.8% less often and buying 5.5% less on average per shopping trip than in previous time periods.

Growth for private label Cheddar continues, volume has increased by 4.5%. Expenditure has risen by 5.8%. The value/budget lines have performed particularly well, increasing in volume by 15.4%.

It is possible that price increases have had some influence on this market change. The average price of branded Cheddar has increased by 5.4% and stands at £7.44/kg, which is £1.26/kg more than the average cost of private label Cheddar. Value lines have seen a price fall of 0.4% and have seen a large volume uplift.

  

52-Week data ending 1 Feb 2015

  
  

Type

  
  

Performance

  
  

Spend (£000s)

  
  

Volume (Tonnes)

  
  

Average Price (£/Kg)

  

Branded   Cheddar

Actual

610,193

82,071

7.44

Year on year% change

-6.4%

-11.3%

5.4%

Total   supermarket own label cheddar

Actual

879,067

142,152

6.18

Year on year% change

5.8%

4.5%

1.3%

Standard   supermarket own label cheddar

Actual

579,610

87,413

6.63

Year on year% change

1.6%

-1.5%

3.1%

Value/Budget   supermarket own label cheddar

Actual

299,457

54,740

5.47

Year on year% change

15.2%

15.7%

-0.4%

 

Data use: Periodically Kantar rework or reweight data which may mean correctly reported data does not match previously reported data.

Source: Kantar Worldpanel