After a challenging previous year for sauces & condiments, with price deflation resulting in a £16m (-2.4%) loss, the market bounced back with a £12.7m (1.9%) gain. 

In sauces, brands have pulled back from competing on price, with reduced promotions leading to a higher average price (+1.9% ). This has meant healthy growth for brands (+2.3%), ahead of own label (+1.7%). 

In condiments, the higher average price for brands didn’t succeed in driving value back, instead they lost further to own label. The increased average price resulted in a 0.7% value decline for brands, while 0wn label gained 2.2%. Own label has led the market since last year and continues to grow. 

Iceland has seen impressive growth with value up 12.5% compared with the big four’s 1.5% decline and discounters’ 6.8% growth. Iceland’s growth is due to increased promotional activity. 

While Iceland only stocks brands, Lidl and M&S’s growth has contributed to own label’s growth. 

Brands have the potential to charge a premium in sauces, but it will have to be justified, while in condiments own label will continue to take the lead.

Candy Lai, Kantar Worldpanel 

Ebiquity

Source: IRI