Higher retail prices give summer dairy sales a boost

Published 14 August 18

Rising prices on supermarket shelves have given a boost to the dairy retail market in recent months, according to Kantar Worldpanel data. For the 12 weeks ending mid-July, sales volumes were down a marginal 0.4% on a year ago – but sales value was up 4.1% at £2.3bn. For most dairy products this increased spend was driven by rising average prices.

Retail graph 16aug

Butter and fresh cream have performed particularly well in these 12 weeks off the back of price increases, up 16% and 12% respectively. This is likely because wholesale prices for fats have been high for some time now, and the market pressure has gradually worked its way to the consumer. Higher prices may have contributed to consumers buying a bit less than a year ago, particularly for butter, but overall it has resulted in an increased retail spend of 7% for butter and 11% for fresh cream.