Loss of branded cheddar costs industry £16m

Published 7 December 18

Over the last three years, Kantar Worldpanel has shown a continual move away from promotions and towards everyday low prices across the entire grocery market. Branded cheddar has historically been highly promoted with around 80% of the volume sold on promotion in 2014. However, while total grocery and dairy categories saw some significant reductions in promotional activity in 2016 and 2017, it is only over the last year that branded cheddar has followed suit.

 Cumulative change in % sold on promotion since 2014

The reduction of promotions will be a contributing factor to the overall decline in sales of branded cheddar since 2015. With fewer branded cheddar promotions, consumers have bought private-label cheddar instead, with private-label cheddar sales showing year-on-year increases.

Volumes of cheddar sold 

On average, private-label cheddar has a lower price point than branded cheddar, despite the high promotional activity for the latter. The move from branded to private-label has therefore diluted the value of the category. If brands had remained at the level they were achieving in 2015, AHDB estimates that the cheddar category would have been worth an extra £16m in 2018, taking it from £1.394 bn to £1.410 bn for the year.