United Kingdom spreads market: 3% CAGR growth between 2012 and 2017

Press Release   •   Feb 19, 2013 17:09 GMT

Premier Foods Group Ltd retained its leading position in the United Kingdom spreads market in 2012, recording a 19% value share. However, the company has lost four percentage points in terms of value share since 2007. Its main brands include Hartley's, Robertson's, Frank Cooper's, Rose's and Chivers in jams and preserves, which have a combined share of 32%, and Sun Pat, which recorded a 26% value share of the nut and seed based spreads category. The company's decline in share has been in part due to its focus on jams and preserves, a category that has not performed strongly during the review period.

Chocolate spreads continued to be the fastest growing spreads category, with value growth of 14% and volume growth of 11% in 2012. This strong performance, apparent during much of the review period, is a result of Ferrero UK Ltd's Nutella brand. The company has continued to operate a strong marketing campaign within the UK and, as a result, gained a percentage point within the spreads category as a whole in 2012.

Over the forecast period the spreads category is set to see a constant value CAGR of 3%, led by chocolate spreads and nut and seed based spreads, with a forecast period constant value CAGR of 6% and 8% respectively. Overall spreads are expected to see growth on the back of consumers spending more on choosing more indulgent flavours or provenance.

Key Headlines

- In 2012 spreads sales increase by 5% in value terms while experiencing a smaller increase in volume terms of 2%
- Rising commodity prices, particularly those of fruit and peanuts, continue to impact the spreads category
- Chocolate spreads sees the highest value and volume growth of 14% and 11% respectively in 2012
- Average unit price within the spreads category rises by 3% in current value terms in 2012
- Premier Foods Group Ltd maintains its leading position, recording a 19% value share in 2012
- A volume CAGR of 1%, alongside a constant value CAGR of 3% is expected for spreads over the forecast period

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