Increased retail price drives UK consumer beef spend
The latest consumer data from Kantar has indicated a 3% growth in expenditure on beef in the UK during the 52-week period ending June 22, 2014. It brings the total spend during the 52-week period to £2.1 billion, according to the Livestock and Meat Commission (LMC).
This increase in the value of beef sales has occurred despite a 5% decline in UK volume sales of fresh and frozen beef to 274,581 tonnes during the same period, according to LMC. The increase in expenditure has been driven by an 8% increase in the average price per kg to £7.67 during the 52-week period ending June 22, 2014, it says.
The year-on-year declines in volume sales of beef has been driven by a 6.7% decline in sales of beef roasting joints and a 14.3% decline in volume sales of beef stewing steak, according to the analysts. Meanwhile, volume sales of grilling steaks and beef mince were back in the region of 2% year on year.
Market penetration for beef during the 52 weeks ending June 22, 2014 was similar to the previous 52-week period at 85.5% however, there was a 5% decline in the average weight purchased per household to 12.1kg. This indicates that while similar numbers of consumers continued to buy beef they were doing so in smaller volumes.
Volume sales during the 12 weeks ending 22 June 2014 sales of beef were 1% higher than year earlier levels. Roasting joints performed particularly well with volume sales up by 16.1% on year earlier levels while sales of grilling steaks and beef mince were on par with year earlier levels.
Consumer expenditure on beef in the UK during the twelve week period ending 22 June 2014 was 5% higher than year earlier levels at £460 million. The slight increase in volume sales year on year combined with a 4% increase in the average retail price to £7.62/kg will have been key factors in this increase in expenditure.