Cheese Market

Published 8 September 14

GB retail cheese sales for the 52 weeks ending 17 August 2014, when compared with the previous year:

  • Total cheese expenditure has increased by 3.3% to just over £2.8 billion, primarily due to an increase in the average price of cheese.
  • The average price of a kilo of cheese has increased by 3.8% to £6.75/kg.
  • Volume sales have decreased by 0.5% year on year (YOY) to 415,649 tonnes
  • Branded Cheddar volumes have decreased by 13.3% YOY, while private label Cheddar volumes are up 8.1% over the same period.
  • The average price of branded Cheddar has increased by 6.8% YOY to £7.41/kg, while private label cheddar has increased by 2.2% YOY to £6.19/kg. On average, branded cheddar is £1.22 dearer per kg than private label Cheddar.
  • Volume sales for Mature Cheddar, which accounts for just over half of Cheddar volume sales, grew by 6.9% YOY. Extra mature is still the second most popular type of Cheddar, although volumes are down 9.1% YOY.

The latest figures from Kantar Worldpanel show that cheese volume sales have decreased by 0.5% to 415,649 tonnes in the 52 weeks ending 17 August 2014. Although the number of people purchasing cheese has increased, the average volume purchased per trip has fallen, driving this overall decline in total volumes sold. Despite this, total cheese expenditure rose as a result of an increase in the average price of cheese, which was up by 3.8% over the year.

Total Cheese Market - Loose and Pre-packed

Pre-packed cheese has recorded value growth of 3.1% YOY, while volumes declined by 0.8%. Around 10% of pre-packed cheese is sold at the hard discounters, but sales growth at these outlets has outperformed the market. Here, volumes are up 31.5% to just over 40,000 tonnes, which has driver a 31.0% increase in expenditure despite a slight fall in average price.

Loose cheese, which accounts for 4.5% of total cheese volumes, has seen a 6.7% increase in volumes sold, triggered by a rise in volumes bought per trip as well as increased purchase frequency.

52-Week data ending 17 Aug 2014

 

Total

Yr/Yr %

Loose

Yr/Yr %

Pre-packed

Yr/Yr %

Spend (£000s)

2,805,434

3.3%

131,479

6.9%

2,673,955

3.1%

Volume (Tonnes)

415,649

-0.5%

18,718

6.7%

396,931

-0.8%

Average Price (£/Kg)

6.75

3.8%

7.02

0.1%

6.74

3.9%

 

Cheddar Market - By Type

Volume sales of Cheddar cheese are 1.0% lower than a year earlier, at 226,175 tonnes. The impact on total expenditure has been mitigated by a 3.3% increase in average price. Overall, expenditure is up by 2.3% to £1.5 billion.

However, behind this there has been differing performances across the category. Mature Cheddar (which makes up just over half of Cheddar volumes) has performed strongly over the year. Volumes have grown by 6.9%, while expenditure is up by 10.3%, boosted by these higher volumes and higher average prices.

The volumes of extra mature Cheddar sold have been in decline over the past year. The 9.1% fall in volumes YOY has driven a 6.1% fall in overall expenditure, despite average prices rising by 3.2%. In contrast, mild Cheddar is experiencing both volume and value growth, of 3.9% and 5.8% respectively.

52-Week data ending 17 Aug 2014

Type

Performance

Spend (£000s)

Volume (Tonnes)

Average Price (£/Kg)

Total Cheddar*

Actual

1,501,321

226,175

6.64

Yr/Yr%change

2.3%

-1.0%

3.3%

Extra Mature

Actual

282,630

39,897

7.08

Yr/Yr%change

-6.1%

-9.1%

3.2%

Mature

Actual

757,063

113,821

6.65

Yr/Yr%change

10.3%

6.9%

3.2%

Medium

Actual

108,583

16,552

6.56

Yr/Yr%change

-1.8%

-5.1%

3.5%

Mild

Actual

216,180

37,012

5.84

Yr/Yr%change

5.8%

3.9%

1.8%

* 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

In line with the wider grocery trend, private label cheese continues to outperform branded varieties. For Cheddar specifically, the volumes of branded varieties are down by 13.3% YOY, although within this there is a mixed picture, with some brands growing, against this overall downward trend.  Fewer households are purchasing branded Cheddar, with household penetration down 2.5% over the year, to 75.0%.

In contrast, the number of households purchasing private label Cheddar has increased to 87.9%. In addition, consumers are purchasing private label Cheddar more frequently and as a result, volumes are up 8.1%. Combined with a 2.2% increase in average price, expenditure on private label has risen by 10.4%.

52-Week data ending 17 Aug 2014

Type

Performance

Spend (£000s)

Volume (Tonnes)

Average Price (£/Kg)

Branded Cheddar

Actual

620,740

83,806

7.41

Year on year% change

-7.4%

-13.3%

6.8%

Total supermarket own label cheddar

Actual

880,582

142,369

6.19

Year on year% change

10.4%

8.1%

2.2%

Standard supermarket own label cheddar

Actual

592,016

90,146

6.57

Year on year% change

7.1%

3.2%

3.8%

Value/Budget supermarket own label cheddar

Actual

288,566

52,223

5.53

Year on year% change

17.8%

17.6%

0.1%

Other Cheese – Soft continental, Territorial and Processed Cheese

Territorial* cheeses have posted a decline in sales volume of 7.6% compared to a year earlier, as fewer household purchase these varieties. Soft continental cheeses have continued to show good volume (10.6%) and value (15.0%) growth over the year, due to an increase in both volumes bought per trip in the number of shoppers. Volume sales of processed cheese are down 2.8% YOY, although a 4.1% increase in average price has helped keep expenditure in growth.

52-Week data ending 17 Aug 2014

Other Cheese Types

Soft Continental Cheeses**

Yr /Yr %

Territorial* (Excl. Blue)

Yr /Yr %

Processed

Yr/Yr %

Spend (£000s)

201,351

15.0%

210,400

-2.3%

270,680

1.2%

Volume (Tonnes)

30,632

10.6%

29,883

-7.6%

38,917

-2.8%

Average Price (£/Kg)

6.57

4.0%

7.04

5.8%

6.96

4.1%

 * Please note, Kantar Worldpanel definition of territorial cheese includes 'other' British hard cheese which includes reduced-fat varieties of cheddar-type cheeses.

**This column has been re-labelled (previously ‘soft cheeses’) in line with Kantar Worldpanel’s labelling. The category includes cheeses such as brie and camembert.

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

Source: Kantar Worldpanel