FDBusiness.com

Premium Products and Value Prices a Hit With Irish Grocery Shoppers

 Breaking News
  • First Milk Acquires Fonterra’s 51% Stake in Fast Forward Joint Venture First Milk, a wholly British farmer-owned dairy co-operative, has agreed to purchase Fonterra’s 51% share of its Fast Forward joint venture, established in 2011, and has entered a new strategic partnership with Havero Hoogwegt for global WPC80 sales and distribution. From July 2019, First Milk will be the sole owner of the whey protein concentrate [...]...
  • Leaders in Luxury Packaging Join London’s Most Exclusive Packaging Event Luxury Packaging London 2019 will celebrate its 10th anniversary when it returns to Olympia on 11 & 12 September, hosted alongside Packaging Innovations. As the UK’s leading luxury packaging event, it will bring together over 180 exhibitors and a dedicated audience of senior buyers, all looking to source the latest in luxury packaging solutions. With consumer concerns [...]...
  • The Lakes Distillery Announces £3.75 Million Investment The Lakes Distillery, based in Cumbria, England, has secured a £3.75 million investment from a group of investors led by Gresham House Asset Management, a specialist equity investment and asset management company. Joining existing investors and high-net-worth individuals, who recently made an additional £1.6 million investment, this is a milestone for the distillery and Gresham [...]...
  • Kerry Group Inaugurates New Production Facility in India Kerry Group has officially opened its new €20 million production facility in Tumkur, India. The new, state-of-the-art 40,585 square metre facility, located 120 km from Bangalore, will serve Kerry Taste & Nutrition’s global and regional customers in the South West Asia region, with Kerry Taste and Beverage systems for the fast-growing retail and foodservice markets. This is Kerry Group’s [...]...
  • Lamb Weston to Acquire Australian Frozen Potato Processor Lamb Weston has agreed to acquire Ready Meals, a frozen potato processor in Australia. Terms were not disclosed. Ready Meals sells frozen potato products under the Harvest Choice brand and operates frozen potato processing and storage facilities in Hallam, Victoria. Lamb Weston, along with its joint venture partners, is a leading supplier of frozen potato, sweet [...]...

Premium Products and Value Prices a Hit With Irish Grocery Shoppers

Premium Products and Value Prices a Hit With Irish Grocery Shoppers
June 06
17:22 2019

The latest figures from Kantar show that overall the Irish grocery market grew by 4.2% over the 12 weeks to 19 May 2019, with Dunnes Stores holding off the challenge of Tesco and retaining pole position. Respective growth of 12.6% and 5.9% for Aldi and Lidl means that the retailers’ combined grocery market share stands at 23.6% – higher than that of any individual retailer for the third consecutive period.

Douglas Faughnan, consumer insight director at Kantar, comments: “The strength of Dunnes, Aldi and Lidl – retailers at opposite ends of the price spectrum – is a surprising quirk of the Irish grocery market. Dunnes has showed little interest in going head-to-head with Aldi and Lidl on price, instead preferring to carve out its position as Ireland’s premium food retailer through smart acquisitions and partnerships with upmarket brands such as Sheridans Cheesemongers and James Whelan Butchers. At the same time, it is making a clear attempt to prevent losing price-conscious shoppers through its Everyday Savers range.”

Meanwhile, both Aldi and Lidl continue to capture market share through competitive price initiatives like Aldi’s Super 6 initiative and Lidl’s Super Savers. While value is still central to both retailers, the premium tier has become more of a focus. Douglas Faughnan continues: “As Aldi and Lidl have grown, they have placed an increased emphasis on their premium own label and branded ranges. This is a clear attempt to capture more spend from those shoppers who, while seeking value, are also prepared to splash out on certain occasions. While on the surface Dunnes, Aldi and Lidl have different appeals, they are all targeting the same shoppers and tailoring ranges to reflect that.”

Tesco grew sales by 3.6% in the past 12 weeks, narrowing the gap with Dunnes to just 0.2 percentage points. Meanwhile, SuperValu’s growth of 0.9% puts the Musgrave-owned retailer on a positive footing for the second consecutive period ahead of the summer, when it traditionally performs strongly.

Increased volume sales have been key to Tesco’s success, up by 4.8% over the past 12 weeks, and a shift in promotional strategy is also clear. While the overall quantity of goods sold on offer has fallen, multibuy deals which encourage shoppers to buy more items are up by a quarter, while Y for €X deals increased by 19%.

Following a dip in sales in March, SuperValu continued to move in the right direction. Douglas Faughnan elaborates: “A key feature of SuperValu’s performance has been the 7.1% uplift in the value of each trip – on average shoppers spend an additional €1.60 every time they visit compared with the same period last year.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 17, 2019Future Food-Tech
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements