Cheese Market

Published 14 February 14

Cheese Expenditure and Volume

Cheese sales for the 52 weeks ending 5 January 2014, when compared with the previous year:

  • Total cheese expenditure has increased by 2.4% 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 1.2% to £6.57/kg.
  • Volume sales have increased by 1.2% year on year (YOY) to 419,877 tonnes
  • Branded Cheddar volumes have decreased by 5.2% YOY, while private label Cheddar volumes are up 6.1% over the same period.
  • The price of branded Cheddar has increased by 2.8% YOY to £7.25/kg while private label cheddar has increased by 0.7% YOY to £6.11/kg. On average, branded cheddar is £1.14 dearer per kg than private label Cheddar.
  • Volume sales for Mature Cheddar, which accounts for just under half (48%) of Cheddar volume sales, grew by 0.4% YOY, while mild volumes declined 3.3% year on year. Extra mature Cheddar, although only 20% of total Cheddar sales, saw volume growth of 1.0%.

The latest figures from Kantar Worldpanel show that cheese volume sales have increased by 1.2% to 419,877 tonnes in the 52 weeks ending 5 January 2014. Household penetration remains high, with 98.7% of all GB households purchasing cheese over the year. Volume growth, which represents an extra 4,970 tonnes, has come from people purchasing more cheese per trip, with the average consumer purchasing 0.46kg of cheese per trip. The total average price is currently £6.57 per kg, an increase of 1.2% on the year, which has helped to increase total expenditure by 2.4% YOY, to £2.76 billion.

Total Cheese Market - Loose and Pre-packed

Pre-packed cheese has recorded value growth (2.6%) and volume growth (1.1%) over the year, with volume growth being driven by a slight increase in volume per trip. Hard discounters have been key growth areas for pre-packed cheese, with both volume growth (20.3%) and value growth (18.3%) compared to last year. Loose cheese, which accounts for 4.6% of cheese volumes, has seen an increase in volume of 4.1%, triggered by a rise in volumes bought per trip (up 6.8%). However, with a 4.0% decline in average prices, the rise in volume sales has not yet been reflected in an increase in expenditure, with a decrease of 0.1% YOY.

52-Week data ending 5 January 2014

 

Total

Yr/Yr %

Loose

Yr/Yr %

Pre-packed

Yr/Yr %

Spend (£000s)

2,758,777

+2.4

130,839

-0.1

2,627,938

+2.6

Volume (Tonnes)

419,877

+1.2

19,185

4.1

400,692

+1.1

Average Price (£/Kg)

6.57

+1.2

6.82

-4.0

6.56

+1.5

Cheddar Market - By Type and Brand

Volume sales of Cheddar cheese are 0.6% higher than a year earlier, at 229,811 tonnes and average prices have grown by 0.4% to £6.46/Kg. As a result, expenditure has increased 1.0% YOY.

However, behind this there has been differing performances across the category. Mature Cheddar (which makes up around 48% of Cheddar volumes) has seen only a slight increase in its volume and expenditure (both up 0.4%). Extra mature Cheddar, (which makes up around 20% of total Cheddar volumes) has performed slightly better, reporting volume growth of 1.0% and expenditure up 3.0%. Medium Cheddar has shown significant volume and value gains YOY (10.1% and 8.5% respectively). Although it still makes up the minority share of volume sales of Cheddar (around 8%), more consumers are purchasing medium Cheddar, and household penetration is up 8.2%.

Mild Cheddar is the only Cheddar type to have seen volume and value declines YOY (3.3% and 3.7%, respectively). This has been mainly due to fewer households purchasing mild Cheddar, with a slight decline in purchasing frequency also having an impact. Most types of Cheddar have seen significant increase in sales of private label, although mild Cheddar has not shared this growth, with volumes down 2.9% and expenditure down 3.1%. The growth in private label continues to be particularly prominent at the hard discounters; despite a smaller market share, strong total grocery performance has had a positive impact on their cheese sales.

Type

Performance

Spend (£000s)

Volume (Tonnes)

Average Price (£/Kg)

Total Cheddar*

Actual

1,484,486

229,811

6.46

Yr/Yr%change

1.0

0.6

0.4

Extra Mature

Actual

297,158

42,627

6.97

Yr/Yr%change

3.0

1.0

2.1

Mature

Actual

711,795

110,823

6.42

Yr/Yr%change

0.4

0.4

0.0

Medium

Actual

112,933

17,772

6.35

Yr/Yr%change

8.5

10.1

-1.5

Mild

Actual

205,688

35,690

5.76

Yr/Yr%change

-3.7

-3.3

-0.4

* 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.

In the last 52 weeks, private label cheeses have grown ahead of branded cheese. This trend is the same within the Cheddar market. Private label Cheddar volumes and expenditure have increased by 9.4% and 8.6% YOY respectively, while branded Cheddar volume sales and expenditure have decreased by 9.8% and 7.1% 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, consumers are buying less frequently and also buying smaller volumes per trip. Private label Cheddar, on the other hand, has seen an increase in frequency and volumes per trip.

52-Week data ending 5 January 2014

Type

Performance

Spend (£000s)

Volume (Tonnes)

Average Price (£/Kg)

Branded Cheddar

Actual

659,082

94,258

6.99

Year on year% change

-7.1

-9.8

2.9

Total supermarket own label cheddar

Actual

825,405

135,553

6.09

Year on year% change

8.6

9.4

-0.7

Standard supermarket own label cheddar

Actual

568,114

88,673

6.41

Year on year% change

8.0

7.1

0.8

Value/Budget supermarket own label cheddar

Actual

257,298

46,882

5.49

Year on year% change

10.0

13.8

-3.4

Other Cheese – Soft continental, Territorial and Processed Cheese

Territorial* cheeses have posted a decline in sales volume of 2.4% compared to a year earlier, which has been driven by a 3.6% decrease in volumes purchased per trip. Soft continental cheese has continued to show good volume (13.5%) and value (14.9%) growth over the year and has seen an increase in both volumes bought per trip in the number of shoppers. Volume sales of processed cheese are down 3.8% YOY, although average price rises have softened the impact on total expenditure, which is 1.2% down on last year.

52-Week data ending 5 January 2014

Other Cheese Types

Soft Continental Cheeses**

Yr /Yr %

Territorial* (Excl. Blue)

Yr /Yr %

Processed

Yr/Yr %

Spend (£000s)

191,594

14.9

211,569

-2.6

266,176

-1.2

Volume (Tonnes)

29,826

13.5

31,254

-2.4

39,206

-3.8

Average Price (£/Kg)

6.42

1.3

6.77

-0.2

6.79

2.7

* 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.