CAPITALISE ON FRESH & CHILLED

Retailer View

A Fresh And Chilled Overview

FRESH and chilled should be a core focus for independent retailers, contributing a quarter of the channel’s grocery revenue.

It’s bought by more than six in 10 customers, says Allison Wallentin, Saputo Dairy UK’s convenience category manager, spending 22% more per trip than those only buying ambient. But in today’s conditions, how can retailers get it right?

Observers expected the convenience sector to grow in 2022, with Covid-19 restric- tions ending and people returning to workplaces. But the cost-of-living crisis has highlighted prices and margins.

Mintel’s 2022 Convenience Report confirms 26% of shoppers visit local stores once a week, with 42% buying food too go. C-store shoppers are younger, with almost a fifth buying from one category and driving footfall with daily visits. Fresh food purchasing skews to the more affluent, with more than one in three shoppers buying one or two food-for-home items per visit. On-the-go shoppers are more affluent and younger, with over half buying one or two items.

Lumina’s November 2022 research says 63% of shoppers look for brands and 44% seek healthier products.

Meanwhile, our appetite for free-from and plant-based products continues to grow, something else for retailers to stay on top of.

But the biggest challenge is the economy. “Shoppers’ price sensitivity will continue

The Trends Driving Demand

OVER a third of shoppers that IGD surveyed place importance on eating more fruit and vegetables for a healthier lifestyle, says Florette UK commercial and marketing director, Martin Purdy.

“Cheese prices are rising and consumers might choose to buy fewer units, but premiumisation can still drive sales growth,” says Heloise Le NorcyTrott, Lactalis UK & Ireland group’s marketing director. Seriously Cheddar, Galloway and Leerdammer come in easyto-use formats for out-of-home lunches. Their take-home cheeses include Président Brie, Seriously Spreadable, Galbani Mozzarella, and Galbani Parmiggiano and Président Camembert.

Fresh and chilled dairy supplier Saputo Dairy UK’s products include Cathedral City cheese, Clover and Utterly Butterly spreads and Country Life butter. With more cheese snacking taking place at home during the pandemic, healthier versions of favourite snacks are widely welcomed, says Bel UK’s spokesman, including portion controlled, plant-based and protein-rich formats. A 20g serving of Babybel Original, the numberone lunchbox cheese snack, in 2023,” says Ross Davison, Kepak Food’s head of convenience. “Retailers stand to benefit by highlighting value in the chiller, and stocking on-pack promotions.”

Meanwhile, in Mintel‘s 2022 Consumer Snacking report, 32% said money concerns made them eat less healthily. Researcher Piers Butel says there “needs to be renewed focus on making the experience convenient and revamping food to go, while pleasing price-sensitive shoppers”.

Kam Nijjer, Budgens Meriden, Coventry

“FOR us, fresh and chilled is essential, and we give it a lot of space. Our focus is on fresh fruit and veg and dairy, and we sell several thousands of pounds a week. We do a lot of ready meals and bagged salads. Our fresh and chilled sales are a little bit down with the cost-of-living crisis, but as a retailer you do the best you can. When food’s close to date, we reduce it by half. I’d rather take that than throw it away.

“The way to make people trade up is to have stock available and promotions. We stock more PMPs now, so shoppers see they’re getting value for money. The margins are rubbish, but you need to weigh it up. Wholesalers don’t give much support. We try to get the best deals, but they’re non-existent. You’ve got to make the store more eye catching. We all want customers to spend more, that’s what it’s all about.” contains 30% less fat than cheddar and 62 calories, which is within Public Health England’s recommended children’s snacks calorie cap.

For healthier fruit snacking, GoGo squeeZ, Bel UK’s kids’ fruit and yoghurt snacks, are HFSS-compliant. Dole’s fruit in juice range, including Pineapple, Mandarin and Peach, contain zero added sugar, and fewer than 100 calories per serving, appealing to the two-thirds of consumers wanting snacks under this level in Mintel’s Consumer Snacking UK 2022 report.

Chilled ready meals represent a third of total chilled convenience sales. Rustlers’ cost-of-living-friendly pricemarked packs (PMPs) include its bestselling Quarter Pounder, BBQ Rib, All Day Breakfast Sausage Muffin, Southern

Fried Chicken Sub and Twin Cheeseburger.

Don’t forget milkshakes. FrieslandCampina’s Yazoo is the traditional flavoured milk leader, with 36% volume share. Its premium offering Chocomel grew 39% in 2022, confirming premiumisation’s importance. Sharing packs represent a third of category sales, gaining share from single serves.