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Analysing the Changes in Dairy Prices

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Brand View Insights reviews price and promotional trends taking place in different categories. Our most recent report takes a closer look at these trends for the Dairy category as a whole, as well as the sub-categories that fall within it.

Price Index by Sub-category

The Brand View Core Index measures the shelf price of products in Tesco, ASDA, Sainsbury’s and Waitrose. The analysis includes all items that have been stocked since July 2008 and which remain in stock today, to ensure an accurate measure of inflation. Over the last 4 years, Brand View has seen the total Dairy category rise to an index of 107.7 – with the Milkshakes sub-category experiencing the most drastic increase, to 119.1.

However, following in line with trends from January, all of the Dairy sub-categories have seen a slight decrease in their shelf price, which is due to increased promotions – in particular due to an increase in the number of SKUs on promotion rather than an increase in the promotional discount.

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Promotional Activity by Sub-category

The Dairy sub-categories have been using similar promotional mechanics; however, the weighting of these mechanics is noticeably different for particular sub-categories. For example, it is evident that strategies for products within Ice Cream, Butters & Spreads and Cheese are more focused around Price Reduction promotions and products within Yogurts, Yogurt Drinks and Milk are more focused around Multibuy promotions.

Integrating Brand View’s promotional history data with sales data can give a greater understanding on whether these mechanics are resulting in higher uplifts.

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Promotional Intensity by Sub-category

Over the last 12 months, there has been a significant shift in promotional strategies used in each of the Dairy sub-categories. For example, Yogurt Drinks have seen significantly longer promotions with a deeper depth of cut on average than other Dairy sub-categories.

The depth of cut across the Yogurt Drinks category has risen to an average of 30% from 24% in the same period a year ago. Although Yogurt Drinks has a low number of promotions compared to larger sub-categories such as Cheese, Yogurts and Ice Cream, it has seen the greatest proportion of its range on promotion of all the sub-categories.

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