Covid-19 raises meat sales and food-service sector rebounds
© Tim Scrivener Premium private label red meat has been the main pick for shoppers over the past year, benefiting alongside an overall uplift in retail meat sales since the Covid-19 outbreak began.
The premium group has seen a 15% lift in spend and a 12% growth in volume overall, according to the latest Kantar data.
In comparison, both standard private label and branded red meat products have also seen volume growth in the year to June 2021, but only by 5% and 2% respectively.
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However, premium private label still remains a small proportion of the total red meat market at 8.8%, with standard private label continuing to make up the majority of sales.
Proteins performance
Both beef (+14% in volume) and processed pork (+10% in volume) have been key contributors to premium private label’s performance.
For beef, an uplift in purchases of premium steaks and mince has driven this growth, while for pork, premium sliced ham has been the standout.
According to the AHDB/YouGov Consumer Tracker, 17% of meat shoppers said quality has become more important to them when buying meat compared to before the pandemic.
The survey also showed that, when buying premium beef and pork, shoppers said British origin is the most important factor, and higher welfare aspects are also important.
Bronwyn Magee, AHDB trainee analyst, said: “We know that premium private label products are often more expensive than standard. For example, premium beef steaks are 50% more expensive on average per kg than the standard equivalent. The factors mentioned above, relating to meat appearance, country of origin and higher welfare, are all key in getting shoppers to trade up.
“However, tactical support is also key – premium private label has performed particularly well when included as part of promotions, which could enable trade up when the prices are closer to the standard alternative.”
Foodservice sector rebounding after lockdown
With lockdown restrictions easing and more people returning to the eating-out market, the total foodservice sector (eating out, food to go, takeaways and deliveries) is seeing an increase in sales.
However, the market is not yet back to pre-pandemic levels and is unlikely to recover fully this year, said the AHDB.
According to Kantar Out of Home data, the foodservice market was worth £9.4bn in the last quarter, up 116% on last year, but still 23% down on 2019.
Pubs and bars saw the fastest recovery, with value reaching £748.4m in the 12 weeks to 13 June 2021, up more than 1,000% year-on-year, but still less than half the value seen in 2019.
AHDB estimates, using Kantar Out of Home, suggest that total red meat through foodservice has seen strong growth for the 12 weeks ending 13 June 2021, with volumes up 145% compared to 2020. However, this is still behind pre-pandemic levels, with volumes down 28% on the same period in 2019.
Volume sales of beef through foodservice have risen 179%, with growth coming from takeaways and eating out, but beef struggled to return to 2019 levels, down 28%.
Lamb volumes in foodservice were up 7% compared to 2020 and 9% versus 2019 – the only protein to see a return to pre-pandemic levels.
Pork is also enjoying strong growth, with volumes up 173% this quarter.