Lurpak is targeting £250m in sales by 2010 as it widened its lead over Flora in the butter and spreads aisle from £6m to £32m.
The Arla butter brand, which last year knocked Flora off the top spot for the first time in 20 years, plans to capitalise on the consumer trend towards natural products with its first Christmas TV campaign in three years and a new format launch in autumn.
In the year to 17 May, Lurpak's sales increased 20% to £218.6m, compared with Flora's increase of 0.7% to £186.5m [Nielsen].
The figures mask price increases within dairy, but volume figures reveal Lurpak's volumes are up 5.2%, with Flora down by 5.7%. Lurpak's household penetration has also increased 11% in the past year.
"Our repositioning with the 'Good Food Deserves Lurpak' campaign last year gave Lurpak a voice in a category filled with clichéd advertising and brand inertia," said senior brand manager Jessica Hardcastle. "It has driven reappraisal among younger consumers leading to increased sales."
Lurpak now plans to develop its ad strategy to move beyond obvious associations with potatoes and toast.
This year its ads will continue to "bed in" the new positioning as a kitchen essential, Hardcastle said, but in 2009 it hopes to broaden Lurpak's position."We don't see any reason why we can't talk about all foods like fruit and veg, for example. Once consumers are used to the new positioning we want to become part of a bigger debate around food."
The £2m Christmas TV ad would push Lurpak as an essential ingredient on the festive table, she said.
Although details of the new format for autumn are under wraps, she confirmed there would be a major packaging innovation around existing spreads.
Unilever said 2008 would focus on changing consumer perceptions. "The battle is to educate consumers about good and bad fats," said Unilever category director Phil Ellis.
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