The recession has created new opportunities within the spreads and condiments category, as consumers are increasingly opting to make their own sandwiches for lunch and subsequently demand a varied choice. 

 

Not surprisingly, one of the biggest increases in consumer spending in recent years has occurred within the in-home food sector. Reflecting trends in the Republic of Ireland, research by market analyst Mintel shows that 38% of UK consumers claim to have spent more or started spending on this category over the past year. Of consumers who have eaten out, 33% say the number of times they eat out in a typical month has decreased. The good news is that three in ten adults (29%) are using more butter and spreads, because they are baking and cooking more at home, while just over one in four (26%) say they eat out less often, so are eating more meals at home.

 

According to the analyst, peanut butter, a long-standing American favourite, has also fared well in recent years. Valued at £28 million in 2008, sales of peanut butter has grown a by 43% in just two years to reach £40 million in 2010. After several years of stagnant growth – sales declined from £28 million in 2002 to a low of £25 million in 2006 – sales of peanut butter began to increase gradually from 2007 onwards. Today over a third (36%) of all consumers tuck into peanut butter. Of those, 69% eat it as part of breakfast, 58% as a snack and 25% as part of lunch.

However it is not only nuts which are proving popular with consumers. Mintel reports things are looking pretty sweet for chocolate spreads, which have seen an increase in sales of 41% over the same two year period to stand at £31 million in 2010. Indeed, the percentage increase between 2008 and 2010 for peanut butter and chocolate spread dwarfs that of the nearest sweet spread competition – fruit and cheese curds (+25%) and honey (+16%) – however all sectors of the sweet spreads market have seen stability or increase during this period.

 

In 2010, the total sweet and savoury spreads market was estimated to be valued at £664 million according to Mintel, a rise of 30% since 2005. The spreads market is split almost evenly between sweet (£328 million) and savoury (£336 million). Although sweet spreads are more popular than savoury (only 13% do not eat sweet spreads while 30% do not eat savoury spreads), the higher value of chilled spreadables such as sandwich filler and pâté and their shorter shelf-life has enabled savoury spreads to capture a slightly larger share of the market.

 

Within the sweet spreads market, the top five best selling spreads are: jam, with a 2010 market value of £106 million, honey (£88 million), marmalade (£56 million), peanut butter (£40 million) and chocolate spreads (£31 million). Fruit and cheese curds at £5 million and syrup and treacle at £2 million make up the remainder of the sweet spreads market segmentation.

Finally when it comes to savoury spreads, love it or loathe it, sales of yeast spreads have risen by 11% over the past two years. Last year sales of this spread reached just under £50 million (£49 million). The remainder of the savoury spread market is made up of chilled pate, paste and sandwich fillers (£196 million) and cheese spreads (£91 million).

Furthermore, Mintel’s research shows almost two thirds of consumers see savoury spreads as a cupboard/fridge staple. Indeed, three fifths (61%) of consumers use spreads such as pâté and sandwich fillers as an alternative to meat/cheese in their sandwiches.

 

With squeezy bottles appealing most to the 16-24 age group, packaging innovation by well-known brands has helped to attract younger consumers to the spreads and condiments category. Brands have also fared well in the face of growing competition from private label variants, as over a third of consumers believe that branded spreads actually taste better. 

 

Another Mintel report entitled ‘Sweet and Savoury Spreads – Europe – July 2011 highlights the fact that NPD continues to be driven by health and wellness trends, with a growing presence of organic spreads and products suitable for vegetarians and vegans. Ethical and environmental claims are also gaining ground as a way of differentiating products and brands.

Philadelphia and Cadbury, Ireland’s number one brands in soft white cheese and chocolate*, have teamed up to create a unique new chilled chocolate spread. Philadelphia with Cadbury blends Philadelphia Light with the taste of Cadbury chocolate for a fresh-tasting, light-textured chocolate spread to enjoy on bread, croissants, biscuits, fruit or even pancakes. At just 86 calories per serving, Philadelphia with Cadbury contains half the fat and less sugar than many other chocolate spreads. It represents one of Kraft Foods’ biggest cross-category innovations, adding yet another aspect to Philadelphia’s versatility as a spread and recipe ingredient and offering the brand new growth opportunities outside its traditional soft white cheese category. 

 

Brian O’Sullivan, managing director, Kraft Foods Ireland, said: “We are really proud to announce the launch of Philadelphia with Cadbury. It represents a bold cross-category innovation which brings together two iconic brands to create a new sub-category in the Chilled aisle and a great tasting product for Philly and Cadbury lovers everywhere.”

 

The launch of Philadelphia with Cadbury will be supported by a full through the line campaign featuring; PR, TV, outdoor, press, digital and in-store activations. For more information log on to www.philadelphia.ie. 

*Source: Nielsen Scantrack MAT 27/11/11

*Cadbury is the number one chocolate manufacturer with 42.5% value share of Irish grocery market (Source: Nielsen Market Track MAT 25/12/11)

The Chef brand has been helping Irish consumers to enhance their meals since the 1920s with its vast portfolio of sauces and condiments. Chef is a firm Irish favourite, being the second biggest brand in the table sauces market and brand leader in many of the segments of this market. 

 

The Chef range of sauces are a must have for any time of the year with its range of high quality and much loved products. They are the perfect accompaniment for many foods and are sure to enhance cusomers’ taste experience. The brand continues to meet the needs of the market with a wide range of sizes and varieties to suit all households, with new variants of XXX Hot Ketchup and Seriously Smokey BBQ Sauce being the latest additions to the portfolio.

 

The brand believes the well known and much loved Chef Tomato Ketchup and sauces are a must have at mealtimes with their tangy and spicy taste. 

 

Chef is now also the healthy option, with its ketchup, sauce, and BBQ sauce being gluten and fat free, and suitable for anyone following a vegetarian diet.

 

The Chef brand is owned and distributed by Valeo Foods. For more information, visit www.valeofoods.ie. 

 

Fruitfield is the number one brand in the marmalade market with approx 53% market share and has led the way in the preserves category since 1853. 

 

Fruitfield Old Time Irish Marmalade consists of a range of marmalades with a distinct Seville orange flavour. Old Time Irish Coarse Cut was the single biggest-selling marmalade in Ireland in 2011; in addition to this traditional favourite, there are also Fine Cut and No Peel varieties available. 

 

The Little Chip Marmalade range tends to have bittersweet citrus flavours and finely cut fruit pieces for a smooth, spreadable marmalade. Little Chip Orange Fine Cut is the second best-selling product in the market and is another must-stock item for retailers. There are also Lemon, Lemon & Lime and Orange No Peel varieties available.

 

Fruitfield also has a tasty range of 50% real fruit jams which were launched in 2011 and are available in Strawberry, Raspberry and Blackcurrant.

 

The Fruitfield brand is owned and distributed by Valeo Foods. For more information, visit www.valeofoods.ie.