Spreadable cheese including processed cheese spread (primarily aimed at children) and soft cheese (a more 'adult' purchase) outperformed the total cheese market [TNS 52w/e 1 November 2009]. It grew 8.7% in value to over £190m with volume up 6%.
And that's despite price rises across the category, says Craig Brooks, marketing director of Primula parent company Kavli.
"In the past year there has been some trading down in pack size, but consumers have also switched back into cheese spread from other cheese categories, such as snacking, grated and sliced, because they see it as a value proposition. As a result, the category is up over the past two years after a few years of slow decline," he says.
However, the fortunes of the different players have been mixed. Cheese spreads are dominated by Dairylea and Laughing Cow, which have about 30% each, but while Dairylea saw a decline in value and volume of 7% and 13% respectively, Laughing Cow saw value rise 10% and volume fall 2%. Primula, which has 18% of the sub-category, saw value and volume grow 20% [Nielsen 52w/e 3 October 2009].
Innovation has been largely confined to soft cheese. In May Primula launched the Primula Deli range of soft cheese in a tube, tapping into what Brooks believes was a previously overlooked demographic in soft cheese people who demand convenience, variety and flavour in snacking. The launch was backed by TV ads, sampling and offers.
The new range gained full distribution in October, but while there was "a promising consumer response", says Brooks, Primula Deli faces strong competition from Philadelphia, which invested heavily in rebranding and relaunching in April. The new look includes an oval pack that provides a better seal, which helps to reduce waste. The brand has grown 13% since last year [Nielsen w/e 24 October 2009].
A more radical innovation is Tickler Cheddar That Spreads, an extension of Milk Link's popular Tickler extra-mature Cheddar range. On trial in Waitrose since autumn last year "it has a true Cheddar delivery perfected at our new Innovation Centre", says Heather Coates, senior brand manager.
Focus On Cheese
And that's despite price rises across the category, says Craig Brooks, marketing director of Primula parent company Kavli.
"In the past year there has been some trading down in pack size, but consumers have also switched back into cheese spread from other cheese categories, such as snacking, grated and sliced, because they see it as a value proposition. As a result, the category is up over the past two years after a few years of slow decline," he says.
However, the fortunes of the different players have been mixed. Cheese spreads are dominated by Dairylea and Laughing Cow, which have about 30% each, but while Dairylea saw a decline in value and volume of 7% and 13% respectively, Laughing Cow saw value rise 10% and volume fall 2%. Primula, which has 18% of the sub-category, saw value and volume grow 20% [Nielsen 52w/e 3 October 2009].
Innovation has been largely confined to soft cheese. In May Primula launched the Primula Deli range of soft cheese in a tube, tapping into what Brooks believes was a previously overlooked demographic in soft cheese people who demand convenience, variety and flavour in snacking. The launch was backed by TV ads, sampling and offers.
The new range gained full distribution in October, but while there was "a promising consumer response", says Brooks, Primula Deli faces strong competition from Philadelphia, which invested heavily in rebranding and relaunching in April. The new look includes an oval pack that provides a better seal, which helps to reduce waste. The brand has grown 13% since last year [Nielsen w/e 24 October 2009].
A more radical innovation is Tickler Cheddar That Spreads, an extension of Milk Link's popular Tickler extra-mature Cheddar range. On trial in Waitrose since autumn last year "it has a true Cheddar delivery perfected at our new Innovation Centre", says Heather Coates, senior brand manager.
Focus On Cheese
No comments yet