As the world faces even more uncertainty, I hope you are all doing well and your loved ones are all safe.
Here is your round up of the key stories from across the FMCG industry...
The storms kept us from shopping 💨
Kantar's latest grocery market share read tells us we're still spending more in the supermarket than we were pre-Pandemic. This continues to drop vs. last year as we annualise the final lockdown period.
We continue to return to old habits, with a drop in share for the online channel and many shoppers returning to Aldi and Lidl.
The major shift in February was the lost footfall to stores during storms Dudley and Eunice. There were 7 million fewer shopping trips during the week ending the 20th of February.
The price of inflation 💷
Price rises have been coming for a while, only accelerated by labour shortages and issues in the supply chain over the last year.
The impact on the general population is becoming more apparent.
'Inflation and price rises' are now the number 3 concern in the Ipsos Issues Index, moving up 5 places since the start of the year.
Grocery inflation currently stands at 4.3%. This is the fastest rate of inflation recorded since September 2013 (except for the first lockdown where retailers cut promotions).
77% of manufacturers expect price rises in the next three months, which is expected to result in a £180 increase in our annual grocery spend.
All this occurs while energy prices increase 54% and wages are predicted to fall throughout the year.
So What?
As people look for ways to save money in-store, it will be key to consider your price-pack architecture and price index vs. your key competitors. Ensure you remain competitive and in line with a shopper's willingness to pay.
We are also seeing footfall return to Aldi and Lidl, so it may also be time to consider your channel strategy.
There is no need for premium brands to despair, as you can benefit from the 'lipstick effect' by offering people an 'affordable treat'.
Get ready for Spring 🌷
Nothing changes the way we shop quite like the weather. A change in seasons is ripe for new items making their way onto the shopping list.
Warmer weather means less hearty comfort food and Spring brings the first BBQs and picnics of the year.
As the clocks go forward at the end of March, our evenings become lighter and we find the energy to do a little more!
Easter falls a little later this year, on the 17th of April. We've had two years with some level of restrictions, so this year is set to be full of family get-togethers.
We spent £373.6m on Easter-related confectionery last year, a rise of more than 25% on the previous year and a 10% growth vs. 2019.
Ahead of Easter, there are plenty of events to tap into with your brands including Mothers Day, International Women's Day and St Patrick's Day!
Which events are most relevant to your categories?
Almost two years on from the first lockdown, we continue to deal with more ambiguity each month. If there is anything we can do to help you or your business - get in touch! I hope that you and your loved ones continue to stay safe, well and positive. Ella. Check out the newsletter archives and sign up here to get the latest insight in your inbox.
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