Lower prices help retailers regain market share

Published 28 October 10

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.

For more market stories visit the Datum Market Update here: /library/market-information/dairy-market-update/28-october-2010-market-update.aspx

More detailed information on the liquid milk market can be found here: /datum/consumer/liquid-milk-market/liquid-milk-market.aspx