Cakes: cakes worth the calories as sales rise

We all love a treat. So much so that Brits treated themselves to an extra 1.7 million (0.2%) packs of cake this year. That may not sound like much, but after two years of declining volumes it’s a welcome boost. “One of the key factors in cake’s growth has been bringing new shoppers into the category,” says Kantar Worldpanel analyst Aimee Benton.

As if that wasn’t enough good news value was also up, as shoppers forked out an extra 2% on average for their cakes, trading up to more premium treats.

But dig behind these headline figures and it’s more of a mixed picture. While own label drove category growth with a 1.8% increase in volumes despite bumping up average prices 2.6%, branded volumes failed to justify 0.6% price hikes, resulting in volumes dipping 1.1%. That own label has continued to attract shoppers despite costing 55p more per unit on average than its branded counterparts is ominous news for brands. The past year has seen three of the top five cake brands in decline, losing a combined £11.8m.

The supermarkets have certainly upped their game. High-end cakes include everything from a £35 gateau at Sainsbury’s Patisserie Valerie counters to a four-layer flower festival cake at M&S.

Brands are hardly sitting back, though. Market leader Mr Kipling, for example, tapped demand for healthier cakes with its 30% lower sugar Fruit Slices in January, which it reported had amassed £1.1m by October.

Soreen is similarly pushing its more virtuous take on cake. Although growth was price-led (volumes were down 1%), its under-95-calorie loaves were one of only two brands in the top five to increase value. Then there’s Graze, up 14.8% to £7.7m. In the past year, it claims to have doubled distribution of its flapjacks, which “tap into the positive health connotations of oats with indulgent flavours”.

Consumers aren’t focused exclusively on health, though. They still want to indulge - and when they do, they do it in style. McVitie’s responded to this trend in June when it launched its Moments range, billed by head of category Jeremy Horton as “a treat that’s worth it”. “Younger consumers in particular are experiencing indulgent cakes from cafés and coffee shops, which demonstrate value for calories,” adds Horton. The company will be hoping the launch, which includes Honeycomb Crunch and Salted Caramel Billionaire variants, will help reverse the £2.1m decline it suffered this year.

That the Mary Berry cake brand has broken into the top 10 this year (up from 45 last year, when it first launched) shows there is mileage in indulgence done well. It has racked up an extra £5.5m with SKUs such as Indulgent Chocolate Cake and Lemon Loaf Cake. Now that’s “value for calories”.

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Roald Dahl range, Premier Foods

Nobody could accuse Mr Kipling of lacking imagination. The brand introduced its limited edition, six-strong range of Roald Dahl treats in May including George’s Marvellous Lemon & Raspberry Whirls, Mr Fox’s Fantastic Forest Fruit Slices and The BFG’s Strawbunkle & Cream Fancies. The range, which has since amassed £3.8m, is supported through an in-store and digital campaign, and offers shoppers the chance to win Roald Dahl-themed holidays.