Indulgence brands see growth
For the food sector, the last year can be classed as one of recovery. However, restricted travel, new COVID-19 variants, and continued working from home meant it bore more resemblance to 2020 than 2019. Grocery sales of food brands were inevitably lower, due to a steady return to travel and the workplace. This coincided with the resurgence of the out-of-home sector which meant people no longer had to prepare all their meals at home. Trip sizes have fallen to their lowest levels since the pandemic began as lockdown restrictions eased and people could shop more often, overshadowing the ongoing recovery in frequency. The online channel's growth has slowed, while discounters have gained customers, with Lidl being the fastest growing physical retailer.
Indulgence brands such as the McVitie’s owned biscuits BN, Ben + Jerry's, Hershey's, and Revels have all seen significant growth year on year. The next challenge for these brands will be navigating store space and promotional strategy as elements of the high fat, salt, sugar (HFSS) restrictions come into effect. This is just part of the Government's wider obesity strategy, which includes a variety of measures aimed at encouraging adults to change their purchasing behaviour, diet and lifestyle.
With indulgence accounting for one area of growth, there have also been some strong launches catering to a healthier diet. Heinz, at number 2 in the ranking launched their Plant Proteinz soup range aimed at making “plant-based eating accessible for all consumers”. Dr Oetker in position 65 has sought to get ahead of the regulations with a new range of meat-free, HFSS compliant pizzas.
Households in Britain are facing a cost-of-living squeeze, with grocery inflation, at the time of writing, rising to 5.9 percent. This, combined with higher energy and fuel prices, will make 2022 a year in which brands need to work harder than ever to demonstrate their value to shoppers.
Click on the table to see the ranking in more detail
Snacking brand Fridge Raiders had a phenomenal year in 2021 with the brand moving up 42 places in our ranking to break into the top 100 for the first time at position 99.
Fridge Raiders is an example of a brand pulling our new needs lever for growth. The traditionally meat-based brand capitalised on the growing demand for plant-based products early in the year by launching a three-strong range of veggie bites in January.
