News and Trends

bakeryinfo.co.uk Amy North · 30 March, 2020 The nation’s love of hot cross buns shows no sign of slowing down. UK shoppers splashed out an extra £31.8m on them in 2019, taking total sales to £153.1m [Kantar 52 w/e 26 Jan 2020]. Four- and six-packs were the big drivers of this growth, contributing £15.6m and £14.9m, respectively, but growth was also seen in smaller packs as well. Here, we look at the trends playing out across the hot cross bun market. These aren’t just any hot cross buns… A standard fruited hot cross bun just won’t cut it anymore as shoppers seek posh and innovative flavours. And, they’re prepared to pay more for them, as average prices rose 6.5% in 2019 [Kantar]. “A key reason for hot cross buns’ success has been premiumisation,” says Kantar category analyst Charles McAlindin. “Premium products are outperforming standard tier and total hot cross buns, as they grow at 32.4%. Hot cross buns are generally growin

NPD Group / Crest - 2019 Total Market

London, March 30 th , 2020  – Global information company  The NPD Group  says results from its COVID-19 British Foodservice Sentiment Study shows nine out of 10 respondents agree that temporary closure of out-of-home or eat-out establishments is a sensible precaution. Carried out on 20 th  March 2020, before the nationwide lockdown was announced, the NPD survey indicates that there is scope for the delivery channel to extend its reach. Almost four in 10 (39%) of respondents are already using delivery services, and a further 42% told NPD that delivery services are either not available where they live, or that they do not use delivery services. However, one in 10 respondents (10%) said they will now try using delivery for the first time during the COVID-19 outbreak. A further 8% of those who regularly order from a delivery service will now do so more often. Looking ahead, more than half of all respondents (53%) say they will return to eating out once the COVID-19 pandemic subsid

31st March 2020 The panic buying that has caused so much disruption in the grocery industry over recent weeks appears to be easing. Data released by online bank Starling, which has 1.25 million UK account holders, shows transactions in supermarkets peaked two weekends ago and have been falling since. Meanwhile, the product rationing introduced by all the major supermarket chains to help keep shelves stocked is slowly being reduced. David Potts, the CEO of Morrisons, said yesterday his stores have already lifted buying restrictions on frozen fish, canned fruit, flour and wine, although essentials like milk, hand gel and toilet roll were still capped. “One or two items we have been able to increase the cap but still have a cap. So I think it’s working in the rhythm of our customers and making sure that no one gets left behind,” he told BBC Radio 4’s Today programme. Meanwhile, Aldi announced today that it was easing the temporary restrictions of four items per person that

31st March 2020 Data from Nielsen shows consumers in the UK made over 79 million extra grocery shopping trips in the last four weeks, with total till sales at supermarkets surging to 20.5%. The uptick in sales amid the coronavirus outbreak was particularly pronounced in the week ending 21 March, with growth of 43%. While stockpiling continued, Nielsen’s data shows that over the four week period ending 21 March, shoppers typically added just one extra item to their basket during each shopping trip. This meant the average shopping basket increased from 10 to 11 items, with average basket spend rising from £15 to £16. While these small increases may not sound like much, Nielsen highlighted that people made three additional shopping trips during the period, and in total that equates to 79 million more shopping trips than the same time last year, all of which added up to an extra £1.9bn spent on groceries. In terms of category performance, the data reveals that in the last week

31st March 2020 Latest grocery market share figures from Kantar show year-on-year supermarket sales grew by the fastest rate in over a decade during the 12 weeks to 22 March – increasing by 7.6%.  However, the rate of growth in the most recent four weeks was nearly three times higher at 20.6%, making March the biggest ever month of grocery sales as shoppers stocked up amid the coronavirus crisis. Grocery sales amounted to £10.8bn during the past four weeks – even higher than levels seen at Christmas, the busiest time of the year under normal circumstances. While week-on-week sales were growing strongly at the beginning of the month, Kantar highlighted that it was on Monday 16 March that the public headed to the shops in unusually high numbers.  Between Monday 16 and Thursday 19 March, 88% of households visited a grocer, making five trips on average – adding up to 42 million extra shopping trips across four days. Growth was found to be primarily driven by people making addit

www.kantarworldpanel.com Data to 22nd March 2020 The latest grocery market share figures from Kantar show year-on-year supermarket sales grew by the fastest rate in over a decade during the past 12 weeks – increasing by 7.6%. The rate of growth in the most recent four weeks was nearly three times higher at 20.6%, making March the biggest month of grocery sales ever recorded. Fraser McKevitt, head of retail and consumer insight at Kantar, comments: “It has been an extraordinary month and social distancing measures have had a profound impact on all our daily lives – from the way we work and socialise, to how we shop and care for our loved ones. Retailers and their staff have been on the frontline as households prepare for an extended stay at home, with grocery sales amounting to £10.8 billion during the past four weeks alone – that’s even higher than levels seen at Christmas, the busiest time of year under normal circumstances.” While week-on-week

www.mintel.com 23rd March 2020 updated 25th March 2020 Following the social distancing measures put in place by the prime minister last week (16th March), retailers are making changes in how they operate as they react to the new norm that COVID-19 is imposing.  The outbreak of the virus is unprecedented and its impact on the retail sector has been profound. As early as late February retailers were bracing themselves for a spike in demand and even ahead of the measures introduced last week regarding social isolation, some 10% of shoppers had stockpiled goods according to Mintel’s latest data (consumers questioned on 13th March). Whilst this is a minority of consumers, such a spike is enough to place significant strain on retailers’ stock and logistic networks and of course causes unavailability. Initially these were small, but pictures shared on social media and the news increased interest in the issue

www.igd.com As the Coronavirus (COVID-19) crisis deepens we’ve summarised the latest responses from food retailers in the UK, to help ensure stores function as efficiently as possible and food and groceries remain accessible to all. Managing demand from shoppers UK food retailers are taking action to try to keep shelves stocked with food, give time to clean stores properly, and ensure vulnerable shoppers are able to get their shopping quickly. Many stores are taking steps to stop customers from buying excessively by placing limits on the number of items that can be purchased. Stores are also reducing opening hours to ensure there is time for thorough cleaning. This includes Asda’s decision to close its 24-hour stores from midnight to 6 am, and Tesco’s decision to close all its stores from 10 pm. Retailers and suppliers are also deciding to cut back on ranges to improve the availability of key product lines. One example is Morrison’s decision

www.mca-insight.com 30th March 2020 Geoff Rowley and Phil Reynolds, partners at specialist business advisory firm FRP, have been appointed Joint Administrators of the 71-strong Italian restaurant and deli group. Its Ireland operation and its franchise business in the Middle East are unaffected by the administration. In a statement, the company said the directors made the decision to place the Company into administration after a “sustained period of challenging trading conditions, which have been exacerbated by COVID-19 and the broader issues currently facing the UK’s retail and hospitality sector. This meant the Company faced significant cashflow pressures and as a result was ultimately unable to meet its financial obligations as they were due.” The Joint Administrators are now “urgently addressing all options for the future of Carluccio’s, which includes exploring the opportunity to mothball the business utilising government support, as

IGD, 26th March 2020 The past week has been a time of unprecedented change for the UK’s foodservice operators as the government announced tighter social distancing guidelines that meant dine-in spaces had to close.  Takeaway and delivery are still allowed but the processes involved in providing these services raise concerns for the wellbeing of staff and customers. At the same time, however, the government also launched a substantial support package offering a safety net to affected businesses, including those in the hospitality sector.   In this article, we look at how these two developments have affected how foodservice operators are coping with the today’s unprecedented situation, and what this might mean for tomorrow’s hospitality sector. Initial response: pivot to takeaway and delivery Initially, most of major UK food-to-go and casual dining chains announced plans to stay open and offset some of the loss in dine-in revenues by offering takeaway and delivery.  Many pub