>>Dairy leads better for you growth

The retailer own label sector of the ‘better for you’ market is worth £1,366m for the 52 w/e December 4, 2005, an increase of 0.6% on the previous year.
The categories in which better for you branding is most prominent is dairy (excluding yoghurts and desserts), accounting for 35% of spend in the sector. Both this category and cereals are the drivers behind growth in the category as they are high in value (in the top ten categories by this measure) and in strong growth year-on-year.
Better for you chilled ready meals have reached saturation with their current offer, with growth remaining static year-on-year. Extending better for you ranges in the innovative new area of ‘fresh to cook’ may well encourage growth in the ready meals category.
Smaller categories (included in the ‘all others’ group) in rapid growth include juice, fish and cakes that are growing in value by more than 20% year-on-year, yet are still only small contributors to the sector as a whole.
Categories within frozen foods (pizza, chips and potato products, ice cream) are all seeing a decline in value compared with last year. Playing to the drive towards healthy eating in Britain, these categories could benefit from better for you ranges through encouraging consumers who want to buy into frozen foods but also develop a healthy diet.
Tesco’s performance in better for you can be in part attributed to the high visibility of the healthy sub-brand across many categories in the retailer's mix.
Better for you retailer own label has grown since 2004, and January is a key month. In 2005, the January peak facilitated growth as sales remained at higher levels than 2004.
Shona McDonald, TNS Worldpanel
Produced for The Grocer by TNS Worldpanel. TNS Worldpanel monitors the grocery retailer take-home purchasing habits of 20,000 demographically representative British households. Call 020 8967 4521