The promotional activity of many top brands fell over Christmas as stores focused on festive and own-label products, reports Alex Beckett


Most brands took their annual festive holiday away from gondola ends during December, with all but two of the 10 most promoted grocery brands offering fewer deals over the past four weeks compared with the previous month [Assosia 4w/e 9 January 2011].

Despite December being a big month for selection boxes and sharing tins, Britain's confectionery giants recorded the biggest drops in number of deals as retailers prioritised other Christmas products, according to Assosia MD Kay Staniland. "Promotional space normally taken up by the usual branded suspects in ambient and frozen was filled with all manner of seasonal stuff, from crackers to batteries and turkeys.

"It is a yearly event but was particularly noticeable this Christmas," she said, adding that retailers had been determined to maximise visibility of their own-label lines this season. As a result, the total number of promotions on brands was down 3.7% on last month, while own-label offers had risen 1.7%.

The confectionery brands all offered stronger savings compared with last year, and Staniland noted that a range of mechanics had been trialled over the period. The 71.7% year-on-year increase in average saving for Mars, for example, stemmed from its move away from x-for-y and extra free, to basic price cuts and half-price deals. Cadbury has also focused on basic price cuts in the past four weeks.

"Similar to Mars' new strategy, the number of half-price deals offered by Cadbury has doubled compared with last year," said Staniland. "This is indicative of how the big brands are responding to consumer desire for cheaper prices rather than multibuys."

Birds Eye's decision to kick off 2011 by investing £1m in a promotional blitz helped it notch up the second biggest increase in deals on a year-on-year basis (after Cadbury). On New Year's day, the frozen giant launched a month-long campaign that halved the price of a number of its top sellers, including peas and fish fingers.

With 1 January bringing the start of the diet season, it is no surprise to see that Kellogg's which recorded the biggest monthly increase in the number of deals has focused its promotional activity on Special K. The cereal has been on an x-for-y offer across the major multiples.

Meanwhile, Carlsberg has crept back into the top 10 and is the only alcohol brand on the table. However, at 19%, it offered the lowest average saving.