Bread makers this week hailed an increase in sandwich sales as an early sign of economic recovery as Hovis was revealed as the UK's fastest growing bread brand.
Although value sales of wrapped bread have jumped 7% to £1.9bn in the past year, volumes have dipped 1.2% [Nielsen, MAT 52w/e 11 July 2009], with commodity price hikes inflating sales value.
However, sales of packed sandwich sales have returned to pre-recession levels. Volumes have risen 4.6% and value 0.3% in the past 12 weeks [Nielsen 8 August 2009].
Suppliers attributed the revival to a greater emphasis on cheaper options and recession "fatigue".
"The sales recovery centres around value sandwiches," said a spokesman for Greencore, the UK's biggest sandwich packer.
Hovis boss Jon Goldstone, who declared the performance a "barometer for wider economic recovery", added: "We are seeing some recessional fatigue among consumers. There is only so long people can be bothered to avoid M&S for their lunch and old habits are creeping back. The challenge for wrapped bread is to maintain growth during economic recovery."
Kingsmill chief executive Mark Fairweather agreed that as Britain moved out of recession "there will be a move back to a more varied, indulgent diet" but said he expected the trend towards "reduced wastefulness" to continue.
The findings came as Hovis and Kingsmill both recorded strong market share growth for the past year. The relaunch of Premier Foods' Hovis last September had helped it "shake off years of neglect", Goldstone said, with its share leaping 14% to 22.7%. Kingsmill upped its share 6% to 16.9%.
Market leader Warburtons had the slowest year, upping its share 5% to 32.3%. Category strategy manager Martin Baptie blamed heavy promotional activity by its rivals.
"Unprecedented promotional activity has affected shoppers' decisions and impacted on SKU-level performance," he admitted.
Although value sales of wrapped bread have jumped 7% to £1.9bn in the past year, volumes have dipped 1.2% [Nielsen, MAT 52w/e 11 July 2009], with commodity price hikes inflating sales value.
However, sales of packed sandwich sales have returned to pre-recession levels. Volumes have risen 4.6% and value 0.3% in the past 12 weeks [Nielsen 8 August 2009].
Suppliers attributed the revival to a greater emphasis on cheaper options and recession "fatigue".
"The sales recovery centres around value sandwiches," said a spokesman for Greencore, the UK's biggest sandwich packer.
Hovis boss Jon Goldstone, who declared the performance a "barometer for wider economic recovery", added: "We are seeing some recessional fatigue among consumers. There is only so long people can be bothered to avoid M&S for their lunch and old habits are creeping back. The challenge for wrapped bread is to maintain growth during economic recovery."
Kingsmill chief executive Mark Fairweather agreed that as Britain moved out of recession "there will be a move back to a more varied, indulgent diet" but said he expected the trend towards "reduced wastefulness" to continue.
The findings came as Hovis and Kingsmill both recorded strong market share growth for the past year. The relaunch of Premier Foods' Hovis last September had helped it "shake off years of neglect", Goldstone said, with its share leaping 14% to 22.7%. Kingsmill upped its share 6% to 16.9%.
Market leader Warburtons had the slowest year, upping its share 5% to 32.3%. Category strategy manager Martin Baptie blamed heavy promotional activity by its rivals.
"Unprecedented promotional activity has affected shoppers' decisions and impacted on SKU-level performance," he admitted.
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