Meat and poultry hit by food deflation

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Food deflation continues to have an impact on meat and poultry sales according to the latest data from Kantar Worldpanel.

Kantar said basket size and frequency of purchase remained flat as food deflation was making the same basket cheaper.

“Fresh primary meat and poultry continues to be hit by deflationary pressures, with the average price per kg down significantly. While this helps to drive more shoppers into the category, we are seeing basket sizes and frequency flat, as deflation makes the same basket cheaper,” Kantar Worldpanel reported.

The Office for National Statistics reported in February that food inflation had reached an all-time low at 0%, which remained unchanged in March.

Meanwhile a survey carried out by mySupermarket.com found that the average weekly grocery shop had fallen from £88.59, for a basket of 35 items to £87.70. The survey also found that the average weekly shop of grocery products from the main UK supermarkets had fallen 7% in the last year, with the same basket costing £93.95 in March 2014.

For the 12 weeks ending 29 March 2015, turkey and pork experienced the biggest decline in volume sales, at -5.2% and -4.8% year-on-year respectively. However, average volume sales were up, according to figures from Kantar.

Meanwhile, lamb has benefited from increased Easter sales – up 14.3% on the same period last year.

Kantar said price cuts and strong promotions were driving strong uplifts in sales before Easter.

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