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Cheese brings in the cheddar



Cheese brings in the cheddar

The dairy market continues to perform strongly in the 12 weeks to 13 August, with growth remaining at +4.4% YoY. The fresh and chilled sector is growing at the same rate, putting it ahead of the grocery market overall which is growing at +4.1%. Premiumisation remains a significant trend in dairy, although the market is still growing in volume terms (+2.5%) ahead of fresh and chilled and total grocery (up +1.7% and +0.9% respectively.)

Yoghurt continues to contribute to growth, along with milk and butter. But the biggest improvement in growth contribution on last period comes from cheese, which sees a £16.4 million uplift compared with the same 12 weeks last year. Nearly all of the growth is a result of rising prices (now at £6.29 per unit compared with £6.16 last year) and cheese is consequently not reflecting the volume gains seen in total dairy.

Although the discounters continue to drive growth across the market, the biggest up lift on last period comes in Tesco and Asda; with Morrisons and M&S helping to drive the growth of cheese.

Cheese is consistent with the overall dairy sector in that growth comes through non-promoted products, as every day low prices continue to gain significance. Both see the biggest improvement in growth contribution coming from middle and older families as well as those with older dependents. In terms of social class, C1 and Ds see the biggest improvement across both, with ABs contributing more to the growth of cheese.

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