Biggest Brands: Top 20 Brand categories 2008

by Jane Simms, Marketing 23-Sep-08, 08:30

LONDON - Health, environmental and budget concerns have all driven shifts in consumer spending patterns.

Leaving aside the effect of price inflation, some interesting trends emerge in the performance of different grocery categories. The only sector to lose sales at a total grocery level was soft drinks, although it remained static at a branded level. While this was largely the result of the poor summer in 2007, Ed Garner, communications director at TNS Worldpanel, suggests that certain sectors within the category - notably squash and carbonated drinks - are in terminal decline. Pure juices and smoothies will keep an eye on this trend and a backlash against bottled-water brands, which are becoming more widely perceived as environmentally unfriendly.

Two sectors made a surprising comeback this year. Frozen food returned to growth after several years in the doldrums, largely as a result of rising awareness of the 'healthier' qualities of frozen vegetables and fish, in particular. Chilled convenience remains the fourth-biggest category, but its growth has slowed - partly because of the perceived health benefits of frozen over chilled, and partly due to the revival of 'real' cooking.

Canned goods' 7% growth, meanwhile, demonstrates that 'cans are still one of the most convenient forms of packaging', says Garner.

As the credit crunch and food price-rises grind on, own-label products are no longer being viewed with suspicion by consumers, and competition is hotting up among retailers for their share of own-label spend. This month Asda and Tesco have launched new value ranges in response to the growing popularity of Aldi.

The discount retailer has experienced impressive growth, with an increasing number of consumers trying it out. Both it and discount rival Lidl also benefited from the collapse of Kwik Save last summer.

Sainsbury's Basics rose 23% on the back of consumers' increased price sensitivity, while Iceland's 13% growth has stemmed from its discounted prices, strength in the frozen sector and high-street locations.

Even Waitrose, often perceived as the preserve of 'posh shoppers', will launch what is, in effect, a value range in the new year, tapping into the trend for shopping across the spectrum of price categories.

There are signs that consumers who are 'trading down' are driving sales of own-label products. Asda's Extra Special range is growing fast - up 46% to nearly £155m last year.

Top 20 Grocery categories by sales 2008
		Total grocery		Own-label		Branded
Rank	Category	Sales	Yr/yr %	Sales	Yr/yr %	Sales	Yr/yr %
		(£bn)	change	share	change	share	change
1	Alcohol	8.97	3	26	1	74	4
2	Fruit, vegetables and salads	8.67	4	100	4	0	47
3	Dairy products	8.47	11	53	13	47	8
4	Chilled convenience	6.67	2	82	2	18	2
5	Household and cleaning products	4.85	3	31	2	69	4
6	Fresh meat	4.63	6	89	7	11	-1
7	Ambient bakery products	4.34	10	51	9	49	11
8	Take-home soft drinks	2.81	-2	33	-5	67	0
9	Frozen prepared foods	2.65	4	47	9	53	1
10	Bathroom toiletries	2.51	4	25	15	75	2
11	Take-home confectionery	2.48	6	16	11	84	5
12	Biscuits	2	7	28	7	72	7
13	Fresh poultry and game	1.99	5	87	5	13	8
14	Canned goods	1.83	7	39	3	61	10
15	Pet care	1.75	5	23	17	77	2
16	Packet breakfast	1.7	4	24	3	76	4
17	Savoury home-cooking	1.6	9	29	8	71	10
18	Take-home savouries	1.48	7	30	4	70	8
19	Healthcare	1.46	1	35	7	65	-1
20	Hot beverages	1.42	5	17	2	83	6
TNS Worldpanel

Top 20 Take-home own-label ranges 2008
		Sales £m	Sales £m
Rank	Brand	Year to	Year to	% change
		20 Apr 08	22-Apr-07
1	Tesco	7590-7595	7280-7285	4
2	Sainsbury's	4470-4475	4325-4330	3
3	Asda	4360-4365	4115-4120	6
4	Morrisons	3300-3305	3155-3160	5
5	Marks & Spencer	2230-2235	2120-2125	5
6	Waitrose	1435-1440	1335-1340	8
7	Co-op	1095-1100	1110-1115	-1
8	Aldi	1090-1095	995-1000	10
9	Lidl	1000-1005	950-955	5
10	Tesco Value	950-955	920-925	3
11	Somerfield	805-810	860-865	-6
12	Tesco Finest	805-810	745-750	8
13	Tesco Healthy Living	805-810	780-785	3
14	Sainsbury's Taste The Difference	685-690	660-665	4
15	Iceland	635-640	565-570	13
16	Asda Smart Price	600-605	540-545	10
17	Boots	400-405	375-380	-6
18	Sainsbury's Basics	350-355	280-285	23
19	Asda Extra Special	220-225	150-155	46
20	Tesco Organic	215-220	200-205	7
Source: TNS Worldpanel