Cheese Market

Published 9 May 14

GB retail cheese sales for the 52 weeks ending 30 March 2014, when compared with the previous year:

  • Total cheese expenditure has increased by 2.6% to just under £2.8 billion following an increase in both the volume sold and the average price of cheese.
  • The average price of a kilo of cheese has increased by 2.0% to £6.63/kg.
  • Volume sales have increased by 0.6% year on year (YOY) to 417,565 tonnes
  • Branded Cheddar volumes have decreased by 9.8% YOY, while private label Cheddar volumes are up 8.0% over the same period.
  • The average price of branded Cheddar has increased by 3.9% YOY to £7.13/kg, while private label cheddar has increased by 0.2% YOY to £6.12/kg. On average, branded cheddar is £1.01 dearer per kg than private label Cheddar.
  • Volume sales for Mature Cheddar, which accounts for just under half (49.4%) of Cheddar volume sales, grew by 5.6% YOY. Extra mature Cheddar, is no longer showing YOY volume growth, with volumes down 8.7%.

The latest figures from Kantar Worldpanel show that cheese volume sales have increased by 0.6% to 417,565 tonnes in the 52 weeks ending 30 March 2014. Household penetration remains high, with 98.7% of all GB households purchasing cheese over the year. Volume growth is driven by a slight increase in the number of people purchasing cheese, as volume per trip and frequency are both marginally down over the year. The average price across all cheese categories for the year ending 30 March 2014 was  £6.63 per kg, an increase of 2.0% from the previous year. This has been the key factor contributing to the increase in total expenditure, which roseby 2.6% YOY, to £2.77 billion.

Total Cheese Market - Loose and Pre-packed

Pre-packed cheese has recorded value growth (2.6%) and volume growth (0.5%) over the year, with volume growth being driven by a slight increase in number of households purchasing the product. Hard discounters have been a key growth area for pre-packed cheese, with both volume growth (23.2%) and value growth (21.9%) compared to last year.

Loose cheese, which accounts for 4.4% of total cheese volumes, has seen an increase in volume of 3.3%, triggered by a rise in volumes bought per trip (up 4.3%) as well as increased purchase freqeuncy. However, overall expenditure has not seen the same rate of growth due to a 1.3% fall in average price.

52-Week data ending 30 March 2014

 

Total

Yr/Yr %

Loose

Yr/Yr %

Pre-packed

Yr/Yr %

Spend (£000s)

2,767,531

2.6%

128,129

2.0%

2,639,403

2.6%

Volume (Tonnes)

417,565

0.6%

18,228

3.3%

399,337

0.5%

Average Price (£/Kg)

6.63

2.0%

7.03

-1.3%

6.61

2.1%

Cheddar Market - By Type and Brand

Volume sales of Cheddar cheese are 0.2% higher than a year earlier, at 228,161 tonnes and average prices have increased by 1.3% to £6.52/Kg. As a result, expenditure has increased 1.4% YOY.

However, behind this there has been differing performances across the category. Mature Cheddar (which makes up around 49% of Cheddar volumes) has seen the greatest increase YOY, with volumes up 5.6% and value up 6.2%. Extra mature Cheddar, (which makes up around 18% of total Cheddar volumes) had been performing well over recent years, with volumes sold on an upward trend. However, volumes have been falling since October and the 52 week sales of this Cheddar type are now back to around 40 thousand tonnes – volumes similar to Sept/Oct 2012. This has been mainly due to a reduction in volumes bought per trip, and fewer households purchasing extra mature Cheddar.

Type

Performance

Spend (£000s)

Volume (Tonnes)

Average Price (£/Kg)

Total Cheddar*

Actual

1,487,766

228,161

6.52

Yr/Yr%change

1.4%

0.2%

1.3%

Extra Mature

Actual

282,618

40,240

7.02

Yr/Yr%change

-5.8%

-8.7%

3.1%

Mature

Actual

733,591

112,769

6.51

Yr/Yr%change

6.2%

5.6%

0.6%

Medium

Actual

111,461

17,377

6.41

Yr/Yr%change

5.4%

4.6%

0.8%

Mild

Actual

209,234

36,201

5.78

Yr/Yr%change

0.3%

0.2%

0.1%

* 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.

Private label cheeses continue to grow ahead of branded cheese in line with the wider grocery trend. This trend is the same within the Cheddar market. Private label Cheddar volumes and expenditure have increased by 8.0% and 8.3% YOY respectively, while branded Cheddar volume sales and expenditure have decreased by 9.8% and 6.3% YOY respectively. Shopper habits within the private label and branded Cheddar markets have had contrasting effects on total spend during the last 52 weeks. For branded Cheddar, the fall is primarily driven by a 7.4% fall in frequency of purchase. Private label Cheddar, on the other hand, has seen a 4.6% increase in frequency, combined with a slight increase in volumes per trip.

52-Week data ending 30 March 2014

Type

Performance

Spend (£000s)

Volume (Tonnes)

Average Price (£/Kg)

Branded Cheddar

Actual

648,042

90,856

7.13

Year on year% change

-6.3%

-9.8%

3.8%

Total supermarket own label cheddar

Actual

839,737

137,307

6.12

Year on year% change

8.3%

8.0%

0.2%

Standard supermarket own label cheddar

Actual

571,128

88,218

6.47

Year on year% change

6.3%

4.0%

2.2%

Value/Budget supermarket own label cheddar

Actual

268,609

49,089

5.47

Year on year% change

12.9%

16.2%

-2.8%

Other Cheese – Soft continental, Territorial and Processed Cheese

Territorial* cheeses have posted a decline in sales volume of 6.4% compared to a year earlier, which has been driven by a 6.5% fall in the number of buyers. Soft continental cheeses have continued to show good volume (10.8%) and value (13.8%) 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 3.9% YOY, although average price rises have softened the impact on total expenditure, which is 0.7% down on last year.

52-Week data ending 30 March 2014

Other Cheese Types

Soft Continental Cheeses***

Yr /Yr %

Territorial** (Excl. Blue)

Yr /Yr %

Processed

Yr/Yr %

Spend (£000s)

193,245

13.8%

208,475

-4.2%

266,989

-0.7%

Volume (Tonnes)

29,828

10.8%

30,317

-6.4%

38,945

-3.9%

Average Price (£/Kg)

6.48

2.7%

6.88

2.3%

6.86

3.3%

* 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