The chilled dairy and desserts super-category market is worth £8.7bn annually and is dominated by the major multiple grocer supermarkets with 85.5% value share.
The market is in good growth, with value sales up by 5.2% in the latest 12 months (L12M) versus (vs) last year (LY). Growth has been driven by both volume and average volume price in the L12M, accelerating in the latest month, with value sales up by 7.0% vs LY. Volume performance will have been boosted by the good weather and has bucked the wider food market trend growing by 1.3% vs LY, but average volume price is the primary growth driver, up by 5.7% vs LY, reflecting the wider food market inflation trends.
Symbols and independents under-trade in dairy and with growth of just 0.9% in the L12M vs LY have lost value share declining by 0.1PPs vs LY. Symbols and independents value sales growth over the last 12 months has been exclusively driven by price, but with the good weather the channel volumes have picked up, growing by 1.5% in the LM vs LY, even so the channel still lost value share to the grocer supermarkets with value sales growth of just 5.8%. Whilst chilled dairy and desserts is an attractive market for symbols and independents as a growing market where they typically under trade, it will always be a tougher nut to crack given the investment required to chill products.
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