21 Apr 2020
Posted in Consumer
Premier Foods increased sales reflects changing shape of UK consumers
Following today’s news that Premier Foods has reported increased sales amid high demand for household staples in the UK;
Carmen Bryan, Consumer Analyst at GlobalData, a leading data and analytics company, offers her view:
“It is too simple to say that Premier Foods’ recent surge in its March sales is all down to stockpiling trends. While this certainly has played a leading role in the company’s performance, with 41% of UK consumers either buying more of certain products or more products than they intend to consume, according to GlobalData’s COVID-19 tracker – week 3*, uncertainty of when the lockdown will be lifted has also reignited home cooking and anchoring trends.
“It is common that in times of stress and restricted freedom, people seek out what is familiar and safe. In fact, GlobalData’s survey also reveals that 49% of UK consumers admitted that they are currently trying to only buy from their favorite brands* – Mr Kippling or Shawoods sauces being staples for many British households. However, as the market remains volatile, it is uncertain how long these new behaviors will last.
“This surge in demand is not necessarily a good thing for companies in the long term. The strain on production, and inevitable fall in demand when consumer behavior normalizes again, could have a backlash on the company’s future sales. It is hard to judge when these trends will cease, and therefore hard for manufacturers to accurately estimate how much of a product they need. The risk is that over supplying might lead to immense waste of resources.”