The number of deals in the major multiples has fallen sharply in the past month, as Jubilee fare elbowed its way into space usually reserved for featured space promotions.

With bunting and other special-event items flying off the shelves at full price, total grocery sales soared by 12% in the week leading up to the celebrations [Nielsen]. And all the mults cut back significantly on their promotions. Tesco scaled back the most, offering 19.4% fewer deals in the four weeks to 10 June than in the preceding four-week period, followed by Asda, with 17.9% fewer deals, Waitrose (14.7% ), Sainsbury’s (9.5%) and Morrisons (8.1%) [Assosia, 4w/e 10 June 2012].

On the promotions that remained, Asda and Waitrose were the only two retailers to increase the overall percentage saving month-on-month, with Asda going from 30% to 32.2% and Waitrose from 32.8% to 33.6%. The others all reduced the depth of promotion month-on-month, though they still offered deeper cuts than Waitrose and Asda overall.

Cashew prices have risen 15% over the past month, following concerns about a poor crop in West Africa. This year’s cashew harvest in Ivory Coast - the region’s largest producer - is feared to be as much as 40% smaller than last year’s, with crops in Ghana and Nigeria also expected to fall short.

At present, cashews remain 8.5% cheaper than they were last year, but prices have increased 14.8% in the past month and now stand at £5,606/tonne.

Black pepper prices have also been creeping upwards and, at £4,994/tonne, are up 5.4% month-on-month and nearly 20% year-on-year. However, prices are expected to ease soon, with Indonesia and Sri Lanka forecast to produce bumper crops.

Meanwhile, raisin prices have stayed largely stable, with prices down just marginally over the past month. The Californian raisin crop is forecast to come in at a similar size to 2011’s harvest.

The proportion of branded deals against own label rose at all retailers year-on-year, apart from Tesco. Asda had the greatest swing - 90% of all its promos were on brands this month, compared with 73% a year ago.

“This is consistent with additional space being allocated to Jubilee and Union Jack products,” says Assosia MD Kay Staniland. “It’s less costly to move own-label promotions away than brands.”

The unsettled weather had an impact on the categories each retailer promoted. meat, fish and poultry deals were down slightly year-on-year at the big four, but up at Waitrose. Morrisons ramped up its proportion of ambient grocery deals but cut back on impulse. The others escalated the role of impulse deals in their mix.

Overall promotions on party food (crisps, snacks and confectionery) increased at all retailers year-on-year, but despite Euro 2012 kicking off last week, the expected increase in beer promotions has not yet arrived.

Beer, wine and spirits deals decreased everywhere but Asda, leaving beer and lager in seventh place over the period, accounting for 3.5% of all deals. Wine accounted for 9%, followed by ambient confectionery with 7.6% and cakes with 4.1%.

Topics