After a year of relatively stable retail milk prices, the four main supermarkets reduced the price of their own-label pasteurised milk from August. According to the latest Kantar Worldpanel data, the average price for a litre of milk in the four main retailers was 58ppl in the four week period ending 3 October, which is a reduction of 8ppl (12%) on the average price paid in July of 66ppl.
Total volumes sold in these retailers have increased by 5% since the lower prices were introduced. However, this has not compensated for the decline in price resulting in a 8% drop in total revenues from milk sales over the three month period. In terms of market share, the price reductions have increased volume shares from 55% to 59%, although there has been no impact in terms of expenditure share, with those multiples reducing their price only just maintaining their share of total expenditure on pasteurised milk.
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