Forget new flavours or fresh formats, big ad campaigns or fancy marketing - where cheese is concerned, price is currently king. Retailers have bested brand owners by investing margin in keeping own-label prices well below the watershed £7/kg mark, at which point the price of cheese becomes too unpalatable for many consumers to swallow.
Nowhere is this more apparent than in Cheddar, where brands saw value sales slump by 6.9% [Kantar 52 w/e 14 September 2014] while own-label growth soared by 10.3% as retailers kept average prices per kg down to just £6.20 compared with £7.50 for branded Cheddars - a whopping £1.30 differential. Last year’s average price for branded Cheddar was £6.90/kg, compared with £6.10/kg for own label.
Evidence, says Nigel White, secretary of the British Cheese Board, that as retailers have invested aggressively in price points, brands have pushed through price increases and reined in promotions. “Some of the price differentials appearing now between brands and own label are quite significant, whereas in recent years the differentials haven’t been that big,” he says. “Some brands have taken their foot off the promotional ladder.”
Look no further for information, statistics and detailed analysis. Our report covers everything you need to know about cheese, from the effect on own-label on sales trends to groundbreaking cheesy innovations.
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