News and Trends

Alcohol prices in State just over double the EU average last year, CSO finds The price of all foods here, with the exception of fish, were higher than the EU average, according to the CSO. Photograph: Alan Betson The Republic is the second most expensive country in the euro zone for food and alcohol and the most expensive for tobacco, according to the Central Statistics Office (CSO). The agency looked at how the price levels of food, beverages and tobacco here compared with other European countries in 2021. It found that food prices in the Republic were 17 per cent above the EU27 average, making the State the second-most expensive jurisdiction in the euro zone for food behind Luxembourg, and third most expensive in the EU27. The price of all foods in the Republic, with the exception of fish, were higher than the EU average. Irish prices for milk, cheese and eggs were found to be on average 25 per cent higher, oils and fats were 22 per cent higher, while breads and cereals were typicall...

LONDON (Reuters) - Facing the toughest economic conditions in decades, Britain’s supermarkets are cutting product ranges, searching for cost savings and patrolling each other’s stores to check prices and products as they try to stay one step ahead. Like retailers across the world, UK grocers including market leader Tesco and No. 2 Sainsbury’s are struggling with the soaring cost of supplies, a shortage of key products and workers, and cash-strapped consumers. But they enter the downturn on the back of an already lengthy period of cost cutting due to fierce competition, forcing them to look for new ways to make savings while increasingly using data to predict customer reactions to change. “I spend a lot of time in our competitors’ (stores), all of the team do too, we’re constantly looking at what they’re doing,” Sainsbury’s CEO Simon Roberts told Reuters. While passing on some price rises to customers and taking a hit to profit margins themselves, supermarkets are fighting to limit the ...

Namnews, 30th June 2022 Recently filed accounts for Costco’s warehouses and e-commerce operation in the UK confirm the business benefited from the surge in demand for groceries during the pandemic. Figures covering the 52 weeks to 29 August 2021 show the US giant’s British subsidiary saw turnover climb 14.4% to £3.58bn, having risen 15.7% the year before. Operating profit jumped 149.7% to £84.4m after gross margin rose from 3.5% to 4.5%. Costco said that it had benefited from economies of scale as volumes rose, especially in e-commerce. The company stated that growth in its warehouses was strong across nearly all major categories, with footfall created by raised demand for groceries, fresh food and drink, driving sales performance in other departments. Costco noted that an increase in basket size more than offset a slight reduction in shopper frequency during the pandemic. It also said membership sign-ups had remained strong. However, it highlighted that the business had faced “signifi...

Namnews, 30th June 2022 Morrisons has revealed that its like-for-like sales slid 6.4% during its first-quarter period to 1 May, with the group blaming a “very challenging” trading environment as inflationary pressures grow and consumer confidence weakens. The UK’s fourth-largest grocer, which is now owned by private equity firm CD&R, stated that its performance had improved towards the end of the quarter, helped by good performance over Mother’s Day and Easter. However, the figures confirm analysts’ recent concerns that Morrisons is struggling to compete with the discounters and Tesco as cash-strapped consumers seek cheaper grocery options.  Earlier this week , it was suggested that Aldi could soon overtake Morrisons in market share terms. Morrisons’ total revenue, including fuel, rose 2.6% to £4.6bn over the 13-week period, primarily due to a recovery of fuel sales, which increased 54%. The group stated that this was partly offset by a decline in supermarket like-for-likes as ...

Summer has arrived and brought with it loads of delectable treats to be enjoyed while the sun is shining. And following jubilant Jubilee celebrations, the nation is ready to keep the good times rolling. Thankfully, bakers and retailers are happy to cater for summer picnics, barbecues and get togethers. So, which flavours and formats can we expect to see? And what trends do they represent? “This summer, we’ll be celebrating the best of British,” believes Kirsty Matthews, insights and marketing manager at ingredients supplier Macphie. “We’ll see classic British flavours and concepts take off and they’ll be at the heart of celebrations as we look forward to an unrestricted summer.” This can take many forms from championing local, seasonal produce to sprucing up classics such as Victoria sponge cakes, scones, and shortbread and taking beloved flavours such as cherry Bakewell and strawberries & cream into new formats. Source: Sainsbury’s Sainsbury’s Eton Mess Profiterole Stack “Classic ...

Source: Le Pain Quotidien Belgian bakery-restaurant group Le Pain Quotidien is preparing to launch a range of baked goods intended for supermarket retail. The chain – which has 15 sites in the UK – has commissioned food and drink retail consultancy Taste Shakers to help lay the ground for expansion. This will involve prioritising and streamlining supply for key product lines before managing growth on the grocery side of the business following launch. “We’ve already developed a loyal following in our UK bakery-restaurants and now we feel the time is right to capitalise on this, bringing our products to a wider audience,” said Frederic Lluch, managing director UK, Le Pain Quotidien. “We’re delighted to be taking this step with Taste Shakers. They have expert knowledge and established networks in the retail industry, which will be invaluable. They also bring with them a passion and enthusiasm for our products and our brand,” Lluch added. Taste Shakers – which is a joint venture between fo...

Namnews, 23rd June 2022 Global bank Citi is forecasting that food price inflation in the UK could accelerate even higher than current expectations. Official figures released yesterday showed that the rate of inflation rose to a fresh 40-year high of 9.1% in May. This was driven by rising food costs – especially for bread and meat – taking over from surging energy prices as the key factor in the increase in CPI. Food and non-alcoholic drinks prices paid by consumers in May were 8.7% higher than a year ago – their biggest increase since March 2009 – and manufacturers’ ingredient costs are rising even more rapidly. The prices manufacturers paid for domestic food materials was up 10.3%, while imported food costs were 20.5% higher, the largest rise since December 2008. In a note to clients, Citi economist Benjamin Nabarro said: “Food inflation overshot our forecasts. We now expect price growth here to peak at a little over 20% in Q1 2023, with producer price inflation here continuing to acc...

Namnews, 23rd June 2022 Asda looks to be planning to make a further push into the convenience channel with a new standalone store format. A listing on Asda’s careers website shows the group is looking for two ‘Property Acquisition Surveyors / Managers – one for London & the South and another based at its head office in Leeds. The job description states: “As an Acquisitions Manager with Asda, you will be integral to our significant growth plans and be at the forefront of our ambition to grow existing formats and spearhead our plans to develop a convenience chain, a new format for the business.” The closing date for the role is 30 June. In May , it was reported that Asda was looking for a Senior Director of Channel Operations (wholesale & convenience). That job description said: “Convenience and wholesale is a new channel within Asda set to significantly contribute to Asda’s growth ambitions. This role will own the convenience and wholesale operations, including the design and de...

Namnews, 15th June 2022 The UK eating out market is set to be worth £95.2bn in 2022, a 4% increase versus its 2019 value – meaning that inflation is outpacing market growth. This is according to the new  UK Eating Out Market Report 2022  by Lumina Intelligence. It forecasts that outlet growth is expected to be positive from 2022, at a compound annual growth rate (CAGR) of +0.5% from 2022-2025, up from the -0.5% from 2019-2022F. Low ticket channels, including coffee shops, sandwich & bakery and fast food are gaining outlet share of the market post-pandemic. Versus 2019, retail, travel and leisure is set to be the best performing segment of the UK eating out market, growing at 9.1% against its 2019 value. In comparison, hotels, pubs and restaurants are set for growth of 2.8% versus 2019 and contract catering will grow 3.4%. At a value of £68.7bn, hotels, pubs and restaurants is the largest segment of the UK eating out market, but is also set to see the slowest recovery, with...

  Namnews,  14th June 2022 IGD has released its annual channel forecasts for the UK grocery market which highlight the impact of inflation on the sector and the continued loss in share for traditional supermarkets and hypermarkets. The insight provider forecasts that the UK grocery market will grow by 11.3% – from £216.8bn to £241.3bn – between 2022 and 2027. While inflation will underpin the majority of growth in 2022, with a 3.5% value increase predicted, this is expected to moderate from 2023 onwards. With the war in Ukraine impacting the UK supply chain and food prices expected to increase by 8.9% in 2022, IGD anticipates that shoppers will respond to the spike in general inflation by making real terms cuts in food expenditure. “Our new forecast sees growth for all retail channels. Though discount will naturally benefit from shoppers’ desire to save money, growth will be held in check by increasing competitiveness from other channels,” said Caroline Myers, Director of Reta...

Namnews, 16th June 2022 Poundland plans to open two more of its ‘Local’ stores as it extends the pilot scheme to tap into the convenience channel. Smaller than a typical Poundland, the compact Local stores have been designed to bring its offer to areas not currently served by its main format. The next Poundland Local store to open will be its first in London. It opens on 2 July at the Junction Centre, St John’s Hill, Clapham Junction. The store will be its first at a high-traffic transport hub and will be designed so customers can check out quickly. That will be followed this summer by the first Poundland Local store in the West Midlands, in Sutton Coldfield. The new stores offer items from Poundland’s core range, including groceries, snacks, household products, health and beauty and batteries. Customers will also find items they would expect in a convenience store, including fresh fruit and vegetables, chilled and frozen food, bread and morning goods, hot pies and pastries, nappies an...

Namnews, 20th June 2022 Consumer consciousness around food waste has more than doubled in the past two years as rising food prices, supply chain challenges, the pandemic, and sustainability concerns are impacting consumer behaviour. Today, 72% of consumers are aware of their food wastage as compared to only 33% of consumers before 2020.  This is according to the Capgemini Research Institute’s latest report –  Reflect. Rethink. Reconsider. Why food waste is everybody’s problem  – which surveyed 10,000 consumers and executives from 1,000 large organisations in food manufacturing and retail. According to the new report, consumers are already looking into ways to reduce their food waste. There has been an 80% year-on-year growth in social media searches for methods to increase the life of food items. Cost savings (56%), concerns around world hunger (52%) and climate change (51%) are the primary reasons contributing to this. Although consumers admit their own culpability, with...