LMCNI Review: Consumer Confidence in Lamb Holds

UK - Data on consumer buying patterns throughout Great Britain indicates that despite the difficult current financial situation, lamb shows an increase in the quantity of product purchased, the average weight per purchase and the average price per kilogramme.

2 February 2009

3 minute read

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This combination has resulted in a ten percent increase in the amount of money spent on lamb in the retail sector in Great Britain when comparing sales over the four week perid ending 28 December 2008 with the same period in 2007.

Four Week Analysis

When comparing the four week period total expenditure on lamb was £46 million, up £4 million on the same period in 2007. The quantity of lamb purchased increased by seven per cent to 7,600 tonnes from 7,100 tonnes and the average price per kilogramme increased to £6.05 from £5.87 (up three per cent). The number of consumers purchasing lamb has remained the same at 22 per cent of shoppers on average and that they are buying larger quantities of lamb. The average weight per purchase has increased by six per cent to 1.3kg from 1.2kg.

Within the red meat sector the largest growth recorded in terms of sales by cuts for the four week period ending 28 December 2008 was ‘lamb mince’ closely followed by ‘lamb leg roasting’, showing an increase of 21 per cent and 17 per cent respectively when compared to the same period in 2007. The other areas showing growth were ‘beef stewing’ (11 per cent), ‘lamb’ (seven per cent) and ‘beef mince’ (two per cent).

Categories showing a decline were the more expensive cuts with ‘beef frying/grilling’ recording a fall of 20 per cent, ‘beef roasting’, ‘lamb chop steaks’ and ‘lamb shoulder roasting’ with reductions of 12 per cent, 10 per cent and five per cent respectively.

Beef

Beef also recorded an increase in the total value of product purchased in the four week period up to 28 December 2008 as compared to the same period in 2007. There was a 12 per cent increase to £149 million from £133 million. However, this was primarily driven by an 18 per cent increase in the average price to £5.88 per kilogramme from £4.98 per kilogramme in 2007.

The percentage of shoppers purchasing beef product showed a small reduction (two per cent) and this, coupled with a four per cent reduction in the average weight per purchase (down to 1.8kg), resulted in 1,500 less tonnes of beef being purchased.

Twelve Week Comparison

When comparing the 12 week period up to 28 December 2008 with the same period in 2007, a similar pattern emerges for beef with the total value of beef product purchased up 15 per cent to almost £450 million and an increase in the average price per kilogramme by 86p to £5.91 from £5.05.

Lamb showed an increase in the value of product purchased, however, volume showed a reduction when compared to 2007 (an eight per cent decrease to 23,000 tonnes from 25,000 tonnes) and a five per cent reduction in the average weight per purchase to 1.2kg . There could be a number of reasons to explain this, not least a ‘lamb burger’ promotional campaign from one of the major retailers. and pricing promotions during the December period.

Fifty-Two Week Comparison

When comparing volume sales in weight of the various cuts over the 52 weeks ending 28 December 2008 to the same period in 2007 the two largest growth categories in red meat are ‘lamb mince’ and ‘lamb stewing’ at 20 per cent and five per cent respectively. The main areas showing a decline are ‘lamb shoulder roasting’ with an 18 per cent fall and ‘beef roasting’ with a 13 per cent fall.