DairyCo

Cheese Market

Published 15 November 11

Cheese Expenditure and Volume

Cheese sales for the 52 weeks ending 02 October 2011, when compared with the previous year:

• Total cheese expenditure has increased by 5.2% to £2.56billion.
• The average price of a kilo of cheese has increased by 2.9% to £6.17/kg.
• Volume sales of Cheddar have increased by 2.4% year on year (YOY), with medium Cheddar sales growing at the expense of mild Cheddar.
• The average price of branded Cheddar has increased 5.7% YOY, while the Supermarkets standard label remained fairly static with a 0.3% increase YOY. Over the past year volume sales of branded Cheddar has remain static, while supermarket standard value cheese has increased 5.8% YOY.
• Volume sales of soft (+8.1% YOY) and processed cheeses (+2.6% YOY) have risen, while territorial cheese volume sales have declined (-1.8% YOY).

Total Cheese Market - Loose and Prepacked

Latest Kantar Worldpanel data shows that cheese volume sales have increased by 2.2% (9,023 tonnes) to 413,964 tonnes in the 52 weeks ending 02 October 2011, when compared with the same period in 2010. Spend has also increased compared with the previous year, up by 5.2% (£127m) to £2.55bn for the 52 weeks ending 02 October 2011. The total average price stood at £6.17/kg, 2.9% (£0.18/kg) higher than the same period last year.

Volume sales of loose cheese have fallen over the past 4 years, this trend has continued in the latest period recording a decline of 0.4% YOY to 22,679 tonnes. The average price of loose cheese was at £7.01/kg, which is higher than pre-packed and may be proving a barrier to household who are budgeting their average grocery shop. Pre-packed volume sales have increase 2.4% YOY to 391,284 tonnes and the average price was £6.12/kg over the past year.

 Cheddar Market - By Type and Brand

Total Cheddar* volume sales have increased by 2.4% in the 52 weeks ending 02 October 2011, when compared with the same period in 2010. Total Cheddar* volumes now stand at 228,974 tonnes. Volume sales of mild Cheddar have fallen by 2.7% YOY, while medium Cheddar volume sales have increased 16.4% YOY. Extra Mature Cheddar has also seen strong volume growth of 12.3% YOY. Mild Cheddar remains on average cheaper than Medium and Mature Cheddar. The average price for the Cheddar market was £6.09/kg and recorded a 2.7% increase YOY.

 * Please note - Total refers to all categories of Cheddar. In addition to Mild, Medium and Mature; the Cheddar category includes: Extra Mature, Farmhouse, Full Flavour, Vintage and Other Cheddar types.

Standard and value supermarket label Cheddar have seen volume sales increases of 5.8% and 2.2% respectively. While branded cheddar volume sales have remained fairly static over the past year. Branded cheddar has seen larger rises in average price than the standard and value cheddar with an increase of 5.7% YOY. Despite holding fairly static volume sales levels it remains the largest share of the Cheddar cheese market at 44.6% volume share of cheddar cheese sales over the past year.

* Note: Kantar Worldpanel re-weighted their data in March 2006, therefore a degree of caution should be taken when comparing figures reported after March 2006 with those reported prior to this re-weighting.

Other Cheese - Soft, Territorial and Processed Cheese

Over the past 52-week period soft cheeses and processed cheese both recorded positive volume sales growth compared to the previous year, while in the same time period territorial cheese reduced. Volume sales of soft cheeses increased 8.1% YOY and stood at 25,159 tonnes. Processed cheese sales increased by 2.6% to 42,377 tonnes. Territorial cheese sales stood at 35,771 tonnes, 1.8% less than the previous year.

 ** Please note, Kantar Worldpanel definition of Territorial cheese includes 'other' British hard cheese which includes reduced-fat varieties of cheddar-type cheeses.