Back with a thud?
I hope you've had a great bank holiday weekend and are bringing some positive energy into May!
Here is your round up of the key stories from across the FMCG industry...
Price Inflation hits a new high
As we pass the second anniversary of the first lockdown, grocery sales have declined vs. two years ago for the first time since the pandemic began.
Kantar have reported that like for like grocery price inflation is at 5.9% this month. They believe the average household will spend £271 more on groceries per year as a result of this.
Supermarkets are keen to be positioning themselves as the "best value" as they know it's going to be a tough time for many Brits.
ASDA Dropping and Locking
Over the last few years, we've seen countless iterations of Everyday Low Price (EDLP) communications. As Tesco and Sainsbury's continue to focus their efforts on "Aldi Price Match", promotions now account for only 27.3% of our grocery shopping (vs. 29.6% last Spring).
Aldi have capitalised on their competitors' communications and it hasn't hurt their sales as they have outperformed all other supermarkets so far this year.
In their bid to take on the discounters, ASDA have launched their new EDLP communications "Dropped & Locked".
At first I thought their claim to lower prices on "over 100 family favourites" sounded like they aren't focussing on that many products.
Once I spotted that they are communicating WAS/NOW prices, making the saving clear, it changed my perspective a little and I think it has the potential to be pretty compelling.
ASDA aren't the only ones cutting prices. Morrisons claim they will be reducing the prices of more than 500 products by an average of 13%.
What do you think? Can our brands thrive in an EDLP landscape or do we love promotions too much?
Speaking of promos, check out my blog post:
Countdown to Summer ☀️
Nothing impacts how we shop like a change in the weather!
Out with the Winter comfort food and in with the barbeques, Pimm's and ice cream!
Despite enjoying the Olympics and the Euros last year, we had 26.8% fewer barbeques across the UK compared with 2020. Whether we see an improvement this year will depend on the sun coming out at the right time.
When we are blessed with barbeque weather, we won't make do with cheap burgers. Over the last few years, we have been more experimental with our flavours and many of us are keen to try new recipes and sauces!
Although the World Cup is going to be in December this year, there are still plenty of events for Brits to enjoy this Spring and Summer.
Organisers are expecting at least 12 million people to celebrate the jubilee with street parties and community events. Even those who aren't keen to celebrate the monarch's milestone will be enjoying an extra bank holiday.
The UK is also hosting some pretty epic sporting events this year including the Women's Euros, the Commonwealth Games and of course Wimbledon!
What events can you tap into with your brands?
The people who buy and use our products are balancing excitement for the Summer with worries about money and their future. There is plenty we can do to make their lives easier.
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.
Comments