Own-label juice share overtakes branded sales

Own-label fruit juice is booming as retailers cut branded ranges in response to soaring prices driven by squeezed fruit supplies and the weaker pound.

Shoppers have drunk an extra 30.2 million litres of own-label not from concentrate (NFC) juice at home in the past year. Sales grew 16.2% on volumes up 18.1% while brands lost 9% by value and 12.7% by volume [Kantar Worldpanel 52 w/e 5 November 2017].

Own-label juices, smoothies & juice drinks now account for more than half the overall sector’s take-home sales, with own-label share of value having risen from 49.8% to 51.8%.

The biggest branded casualty is PepsiCo’s Tropicana, down 12.2% on volumes down 15.2% [IRI 52 w/e 9 December 2017]. It has lost its position as category bestseller to Innocent, but owner PepsiCo says the relaunch of functional sub-brand Essentials will address the slump.

The shift comes as fruit juice has been hit by inflation “because of the weaker pound and poor crops” according to Jonathan Barr, marketing director at own-label and branded juice supplier Princes. Harsh frosts and hurricanes had affected fruit crops in Europe and Florida, he added.

Branded prices have soared as a result, with Tropicana selling for an average of 6.9% more per litre in the past year [IRI]. Brand prices had also been pushed up by a 7.7% cut in deals, with multibuys down by over a fifth, said Kantar analyst Helen Sale. “Several retailers have refreshed their own-label offerings”, she added, with Iceland, Lidl, Morrisons and Tesco key drivers.

But own label isn’t having it all its own way. Brands still dominate smoothie sales with a 78.3% share of take home, and the lion’s share of 6.8% growth on volumes up 6.3%.