28 Feb 2008


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Lurpak Spreads

Lurpak

Butters and Spreads

Top 100 Grocery Brands

Source : Checkout Nielsen Top 100 Grocery Brands
Position: 16
A mix of rising food prices and an upmarket drift by consumers has helped Lurpak make a three place jump to 16th position in this year's Top 100 Grocery Brands listing.

Lurpak

Its overall value has risen sharply too, up 13.3% to £199.6m from £176.1m in the space of a year, and the company claims it is now Britain's most popular butter spreads and margarine (BSM) supplier, with a business now worth some £15.3m more than its nearest rival.

Some food industry watchers have suggested consumers have looked with increasing favour on products they consider butter rather than margarine-based, as these are perceived as being more natural. Also, having a familiar name as a butter, rather than straight margarine producer, has worked to Lurpak's advantage.

Last year the Arla Foods-owned company was able to capitalise on this as its 2006-launched Spreadable Unsalted established itself. This dovetailed neatly with consumer, media and political concerns about fat and salt levels in many staple foods.

This year the company is hoping to repeat the process with its just-launched Organic Spreadable product. Lurpak brand manager Jessica Hardcastle thinks this will sell predominantly against own label organic products in what is still a small sector, accounting for just 1.4 % of consumer spending on organic items.

“BSM's share of the total organic market is considerably lower than that of organic milk, and we believe this offers an opportunity for a product, such as Lurpak Organic Spreadable to take ownership of the category,” she says.

To back up these claims, Lurpak quotes Soil Association figures, which indicate demand for organic food and drink is increasing by some £7m a week, and it predicts organic BSM sales rising by 16 % annually, and they are set to be worth £13m.

This didn't stop the company from launching its organic spread with a third off price promotion, as a means of attracting new custom to what it perceives as a high end product.

If Lurpak's Hardcastle is right, her company's ability to anticipate trends and meet market needs is set to continue.

2007 £199.6m
2006 £176.1m
yoy change 13.3%

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