5 February 2013

5 minute read

Europe

However while volume sales of lamb has increased by five per cent, volume sales of beef have declined by three per cent when compared to the corresponding period in 2011.

Lamb

The latest Kantar data has indicated strong lamb sales in the UK for the 4, 12 and 52 week periods ending the 23 December 2012. There has been a strong increase in the sales of lamb leg roasting joints in particular across all three time periods. Some of this increase was at the expense of lamb shoulder which has experienced a decline in sales.

Increased promotion has helped to boost sales with 44 per cent of all leg joints in the twelve weeks up to the 23 December 2012 being sold on promotion.

In the same period last year promotional sales accounted for less than 8 per cent of sales. Total expenditure on lamb for the 52 weeks ending the 23 December totalled £615 million, a four per cent increase in spending on the previous year. The average retail price during this period was back one per cent to £8.42/kg with total volume sales up five per cent on 2011 sales.

Much of this increase has been driven by an increase in the sales of lamb leg roasting joints with an additional £39.6 million worth of sales year on year.

However sales of all other cuts have seen volume declines during the 52 week period, with the exception of diced lamb which has experienced an increase in volume sales (+4.6 per cent). Sales of lamb stewing meat were back 2.8 per cent, sales of lamb mince back 5.6 per cent, sales of chop steaks back 7.5 per cent and sales of lamb shoulder roasting joints back 10 per cent year on year.

If we consider the four week period ending the 23 December 2012 total expenditure on lamb was nine per cent higher than in the corresponding period in 2011 with an increase in the average retail price by two per cent to £8.07. The volume sales of lamb increased by seven per cent when compared to the same period in 2011 with a six per cent increase in market penetration between the two periods.

This increase in volume sales has been reflected in an increase in sales volume for the majority of cuts of lamb. The exception to this is volume sales of lamb shoulder roasting joints which were back 19 per cent between the two periods. This increase in average price, expenditure and volume sales in the four weeks up to 23 December raises interesting questions about NI producer’s share of the retail price with deadweight prices for lambs under pressure during this period.

Beef

Kantar data for the 52 weeks ending the 23 December 2012 have shown that volume sales for the majority of beef cuts have declined when compared to the previous 52 week period but that the average retail price increased by nine per cent to £6.99/kg.

With volume sales back three per cent it is important to note that the five per cent increase in expenditure on beef year on year has come about due to average price increases and not due to an increase in volume sales.

However during the four week period ending the 23 December 2012 volume sales were three per cent higher than the same period in 2011 with an increase in expenditure by eleven per cent to £191 million. The average retail beef price during the four week period was £7.25, an eight per cent increase when compared to the corresponding period in 2011.

In the run up to Christmas beef frying/grilling steaks sold well with a 16.6 per cent increase in expenditure when compared to December 2011. A 10 per cent increase in sales of beef mince in the four week period leading up to Christmas has helped to increase volume sales of the beef category.

However sales of beef roasting joints struggled in the run up to Christmas with sales back on the corresponding period in 2011. Reduced promotional activity across the major retailers when compared to last year will have had a strong impact on this trend with fewer shoppers buying beef roasts and smaller volumes being purchased per trip.

Pork

When considering beef and lamb sales it is also important that we consider the performance of pork as it is a common alternative to beef and lamb in the shopping basket.

Expenditure on pork during the 52 week period ending the 23 December 2012 showed an increase of three per cent year on year. Over the same period however there has been a three per cent reduction in volume sales.

The reduction in volume sales over the year may be driven to some degree by the six per cent increase in retail price to £5.15 and this may have helped to boost beef and lamb sales. While there have been significant increases in the sales of loin roasting joints (+22.4 per cent), marinades (+23.6 per cent) and pork belly (+13.4 per cent) other cuts have not performed so well.

Volume sales of leg roasting joints were back 21.7 per cent, shoulder joints back 12.2 per cent and sales of pork chops down 9.4 per cent on 2011 figures.

During the four week period leading up to Christmas 2012 the average price of pork was eight per cent higher than the corresponding period in 2011 at £5.50per kg. This increase in price has resulted in a seven per cent increase in the total expenditure on pork when comparing the two four week periods. As with the 52 week period there has been mixed performance in the sales of individual cuts with reductions in sales of leg roasting joints (-17.4 per cent) and frying steaks (-10.5 per cent) while there have been increases in the sales of loin roasting joints (+25.7 per cent) and marinades (+61.3 per cent).

Convenience Foods

While the Kantar consumer data provides us with information on sales of the major meats the information also highlights the rising demand for convenience foods.

Total expenditure on chilled convenience foods in the UK during the 52 week period ending the 23 December 2012 totalled £1.8 billion, an eleven per cent increase on the previous year and represents an eight per cent growth in volume sales.

Total expenditure on chilled ready meals increased by seven per cent over the same period to £1.4 billion with a one per cent increase in total volume sales.

These figures serve to highlight the increasing importance of convenience foods in today’s retail trade. As volume sales of the major meats come under pressure it is important that the convenience food markets is fully capitalised on through product development, assuring quality of ingredients and effective marketing.

TheCattleSite News Desk