It’s not how much you promote that really matters in butters and spreads. It’s how.
“Shoppers continue to buy into promotions but price is less of an issue,” says Arla Foods’ Stuart Ibberson. “They’re now looking for more for their money through added-value products and promotions.”
Indeed, while there’s been a 17.7% hike in featured space deals by the category’s 10 most promoted brands, the fastest growing butters - Lurpak and Anchor [IRI] - have actually cut the average depth of deal.
Instead, these brands have tried to appeal to home bakers and foodies through initiatives such as offering free recipes and baking related products. And it’s working, says Ibberson: “We’ve implemented a different strategy with x-for-£y deals, offering added value and driving growth into the category. This demonstrated that our brands are worth paying more for and has increased loyalty.”
Meanwhile amongst the retailers, Tesco increased its use of featured space deals for the category by a whopping 86.6%. It appears to have paid off too. Of the big five multiples, Tesco’s 1% fall in category sales over the past year is the lowest [Kantar].
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Arla shifts promo tactics to push value back into category