Heatwave boosts sales of cold treats
Shoppers in the UK spent about £1.5bn on soft drinks, ice cream, and suncare in the past month, according to the latest industry data from NielsenIQ.
Total till sales at major mults increased 3.1% in the four weeks to 8 August.
Growth slowed from the 4.4% growth recorded in the previous four weeks, following the end of the football World Cup and the start of the summer holiday season.
Heatwave Drives Demand for Summer Categories
Across all supermarkets and convenience stores, sales increased 3.3%, with growth easing off throughout the month as shoppers went on holiday.
Promotional activity remained an important driver of sales, with deals accounting for a quarter of goods purchased.
Many Fifa World Cup-related promotions continued into August, helping retailers maintain shopper engagement even after the tournament had ended, NIQ said.
Despite the slowdown in August, shoppers continued to buy more, with volumes up 1% and shopping occasions up 2% on last year.
Related: German Doner Kebab hires former Greene King MD as CEO
Soft Drinks and Ice Cream Sales Soar
Soft drinks was a standout performer in the month, with shoppers spending £1.2bn over the four weeks.
Mineral water sales grew 26% in value, flavoured non-carbonates rose 22%, and ambient fruit juice by 19%.
Consumers focused on health and wellness drinks, with products featuring ‘hydration health’ stated on pack growing 24% in value compared to the same period last year.
Shoppers spent £268m on ice cream and £68m on suncare.
Together, soft drinks, ice cream, and suncare accounted for 45% of total fmcg value growth during the period as consumers made the most of the weather.
Convenience Channel and Online Grocery See Boost
The continued hot weather provided a boost to the convenience channel, with sales increasing 3.6%, marking the channel’s strongest performance in more than a year.
Online grocery continued to outperform the wider market, with ecommerce sales reaching £2.1bn, up 10% in value and 5% in units.
Related: Little Moons launch new sour mochi flavor
Mike Watkins, head of retailer and business insight at NielsenIQ, noted that growth has inevitably slowed following the peaks created by the World Cup, while the start of the summer holidays has given many shoppers a reason to delay some non-essential spending.
Watkins also noted that shoppers are more willing to treat themselves to affordable indulgences in food and drink, particularly when the weather creates an immediate occasion.
Over the latest 12 weeks, Ocado and M&S were the two strongest performers, with both retailers gaining market share, Ocado up 17.3% and M&S up 12.9%.
Lidl maintained strong sales momentum, up 8.2%, while Co-op benefited from more shoppers and more visits compared with last year, up 7%.
Sainsbury’s sales increased 3.6%, closely followed by Tesco, up 3.2%, and Morrisons, up 3.1%.
As the weather becomes more seasonal towards the end of summer and children return to school, shopping baskets will start to reset.
There is the possibility of a short-term return of money off vouchers to help shoppers save money as well as to encourage more visits.
