The UK grocery landscape has always been competitive. However, it currently feels particularly compressed, with pressure from every direction: production costs are increasing, consumer spend is tightening and retailers are narrowing ranges.
As household budgets shrink, shoppers are understandably prioritising value. supermarkets are responding rationally. We’ve seen significant expansion of own-label lines – from entry-price tiers through to premium private label.
Retailers are creating sharper opening price points and promoting them aggressively. For an SME brand, with tighter production runs and less negotiating power, matching those price cuts is rarely sustainable.
At the same time, shelf space is shrinking. Category reviews are more frequent, and range rationalisation is real. Buyers are under pressure to deliver volume and simplicity. Winning a listing now requires proving true incrementality, not just a compelling brand story. Staying listed demands strong rates of sale, regular promotional participation and big marketing plans. Therefore, when SKUs are cut, it’s often smaller brands that disappear first.
None of this reflects a lack of appetite for innovation. Consumers still care about flavour, sustainability and purpose. But price sensitivity is shaping behaviour in the short term, and supermarkets are adapting accordingly.
Therefore, as an SME, having a diverse sales channel is essential. At Rubies in the Rubble, our out-of-home channel is in double-figure growth for branded ketchups and mayos – making up almost 70% of our business. The growth is driven by schools, pubs, workplace caterers and entertainment venues often looking for differentiation and a way of reflecting their brand values. A sustainable ketchup on the table at burger joint or a distinctive relish in a sandwich shop helps the customer elevate their offering and it helps us build brand awareness.
Therefore, as we develop exciting new condiments, we are doing so with the hospitality sector in mind. At a time where the retail market squeezes ever tighter, growth may not come solely from fighting for centimetres of shelf space. It may come from meeting consumers wherever they eat.
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