FDBusiness.com

Premium Products and Value Prices a Hit With Irish Grocery Shoppers

 Breaking News
  • UK Restaurant Numbers Drop Again as Consumer Tastes Shift Britain’s restaurant numbers have fallen for the sixth quarter in a row, the new edition of the Market Growth Monitor from CGA and AlixPartners reveals. Independent operators have borne the brunt of the closures with group-owned restaurants proving more resilient despite some major brand failures. The quarterly survey of the country’s supply of licensed premises reports a 3.4% drop in [...]...
  • Molson Coors Commits to Reduce Plastics in Packaging Molson Coors in the UK and Ireland is removing the plastic packaging from its Carling and Coors Light brands, as part of new global packaging goals. The brewer will remove the plastic film wrap from large multipacks by the end of March 2020, replacing the plastic wrap with 100% recyclable fully enclosed carton board. By [...]...
  • Carlsberg Group Upgrades Full Year Operating Profit Outlook Carlsberg Group has delivered organic operating profit growth of 17.7% for the first half of 2019 with reported growth of 18.2% to DKr 5.17 billion (€693 million). Organic net revenue growth was 4.2% and on a reported basis net revenue rose by 6.5% to DKr32.99 (€4.42 billion). Operating margin improved by 160bp to 15.7%. Reported net [...]...
  • Diageo Forms New Rum Joint Venture Diageo and Corporación Cuba Ron, a leader in the production of premium Cuban rums, have created a joint venture – Ron Santiago. The joint venture will have exclusive global distribution rights to Santiago de Cuba, a premium Cuban heritage rum brand. Globally, premium and above rum segments are growing ahead of the category overall, with premiumisation [...]...
  • Stirring Times For US Yogurt – Innovation is Vital in a Changing Consumer Environment Over half of all U.S. consumers now buy yogurt as part of their typical grocery basket, according to a new report from Innova Market Insights, but their habits appear to be evolving. Convenience themes are becoming increasingly important, for example, with 17% of consumers naming this as a significant choice factor in 2018, which is [...]...

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

  • September 11, 2019Packaging Innovations & Luxury Packaging London 2019
  • October 1, 2019PPMA Total Show
  • October 17, 2019Future Food-Tech
  • November 18, 2019Plastics Caps and Closures Conference 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements