The UK butter and spreads market is showing 3.9% growth. The average household is now spending £1.30 more than the previous year. The multiple grocers are driving this increase with Somerfield, Tesco and Waitrose all achieving 10% growth year-on-year. The market is dominated by manufacturer brands with 79% of value, although own label is growing faster and gaining value share, especially in butters.
Within the taste segment, spreadable and special butter are recording growth of 13.5% and 11.3%, respectively. Within spreadable butter, Arla Foods retains its leading position with Lurpak.
The manufacturers gaining value share are mainly Dairy Crest (Country Life) and retailers such as Aldi, M&S and Tesco. Special butter is increasing its presence in the market, driven by Arla (Yorkshire Butter), Frico (Wheelbarrow Butter) and Lidl, gaining share on the leading brand of Lactalis Beurres (Président).
In contrast, dairy spreads and everyday butter show a decreasing trend. Within dairy spreads, the decline of 1.5% may have been driven by the value decrease of the number one supplier Dairy Crest with Clover and Utterly Buttery, and the number two Unilever with I Can’t Believe It’s Not Butter.
In everyday butter, the decrease in value of 1.8% is partially explained by the underperformance of Arla’s Anchor and Lurpak butters and the withdrawal of Avonlea, and Dairy Crest with Country Life and Willow, respectively
Growing health concerns among the British are reflected in the growing trend of specific health with a nearly 11% growth year-on-year driven by the market leader Unilever with Flora Pro-activ.
Silvia Martin-Artajo, TNS Superpanel
Produced for The Grocer by TNS Superpanel. For more information call 020 8967 4521