Monday, 8 July 2013
Shoppers opt for butter over margarine !
Part of the reason for the surge is believed to be the new trend for home baking and a narrowing of the price gap with margarine.
Data from Kantar Worldpanel found sales of block butter increased by 4.3 per cent in the last year, while spreadable butter rose by 2.7 per cent – at a time when the overall value of butter and margarine fell.
Tim Eales, strategic insight director at market analysts IRI, told trade magazine the Grocer: “A narrowing price gap between butter and margarine, as well as evolving consumer habits, are key drivers behind the margarine decline.
"The declining sales of margarine must be a concern for the industry.”
Butter continues to buck the trend, after the overall value of the butter and spreads market fell by 1.5 per cent last year.
Flora has been one of the worst hit by the downward slide in sales, which is believed to be due to the new recipe it launched in 2012.
Statistics show Flora lost £24.2 million in sales last year as shoppers switched brands. Last month the makers of Flora were forced to stage an embarrassing U-turn on its new recipe after complaints about taste of the new formula of their favourite spread.
The new lower fat version was branded “disgusting” and there were many complaints about the smell.
After the mistake, brand owner Unilever announced that it was bringing back the old flavour 17 months after spending £29 million on a reformulation aimed at improving the taste and health benefits of the spread.
Stuart Ibberson, business unit director at Arla Foods, whose Anchor and Lurpak brands added: "Consumers are moving towards more natural products, away from products such as margarine that are often packed full of additives.”