Range shaping for shifting preferences

Retail continues to report “elevated sales” of dairy, according to Dairy Australia’s ‘Dairy Situation and Outlook’ with Nielsen Homescan data revealing sales of milk and yellow spreads up 4.6% and 8.7%, respectively (as of 1/11/20), and cheese and yoghurts up 6.4% and 5.3%, respectively (as of 27/6/20).

Dairy Australia’s December-published report also notes that the reopening of foodservice operations in Victoria, and relaxed capacity limits in other states, have had a “positive impact” on dairy demand from non-grocery channels.

While ongoing strength in demand is encouraging, says Dairy Australia, consumers are also leaning towards larger pack sizes, usually priced at a discount, with some premium lines coming under pressure.

“As consumers start to come down from the ‘sugar high’ created by the easing of restrictions, and income pressures from the broader economic recession take hold, price-focused purchasing may become more dominant,” the national body said.

In terms of favourite brands, coming out on top at Finder’s 2020/2021 Retail Awards were Riverina Fresh (top-rated fresh milk brand), Bonsoy (top-rated nut milk/plant-based milk brand), Woolworths (top-rated long life milk brand), Bega (top-rated cheese brand), Western Star (top-rated butter brand), Gippsland (top-rated yoghurt brand), and Yumi’s (top-rated dips brand).

Read the latest issue of Retail World to find out how retailers can make the most of their dairy case offering.