The total cheese market is worth around £1.28bn with static growth. The major multiples account for the vast majority of sales. Prepacked dominates with around 83% of volume and value, and its 3% growth is offsetting the continuing decline in deli cheese value (-12% year on year). Value is still approximately £224m.
Cheddar is dominant around 68% value and 70% volume but performance is markedly down year on year, as is the next largest sector which is "territorials" (British regional cheeses).
Other hard cheese is the only sector to rise in both value and volume, although from a very small base. Soft cheeses are also showing some volume growth.
Sliced cooked meats and pâté
The total market is approaching £1bn in value with a growth rate below total packaged groceries. It's becoming dominated by prepacked, with 60% of value and 3.5% growth.
Own label dominates prepacked, but impetus for growth is coming from brands. The value sector is also growing.
Ham products dominate, with more than 55% of sales. Beef, coming from a very low base, has been growing consistently, particularly within the loose sector.
Retailer performance
Except for Sainsbury's, most major retailers overtrade on the deli compared to their share of the total cheese market. Sainsbury's and Morrisons are the only major retailers to show positive growth in both volume and value in deli cheeses, with Morrisons the star performer. In sliced cooked meats and pâté, retailer performance mirrors total packaged groceries. Asda and Morrisons deliver most strongly.
The future
Will the arrival of Wal-Mart mean less investment in the deli counter and more emphasis on value products in the prepacked sector?
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