Why your bread now costs less bread
What's the best thing since sliced bread? Unfortunately for bread manufacturers, its not the traditional white sliced loaf anymore. A combination of changing consumer tastes and supermarket price wars have meant that traditional sliced loaves are no longer the best thing in a baker’s range.
Research shows a widespread switch away from sliced bread in recent times, with consumers instead turning to ‘healthier’ alternatives such as wholegrain and artisan loaves, or even shunning wheat or gluten-based products entirely. Add to that the fact that bread, as a staple product, has been heavily involved in supermarket price wars- Asda recently dropped a number of branded bread products, and Tesco has thrown them all out in favour of in-house ranges, and you can see why the top three UK bakers are all showing a massive decline in sales. And don’t even mention the introduction of free school meals for all infant school children- with the 14% decline in schoolchildren taking sandwiches also being blamed.
Data from analysts IRI shows that Warburtons, Hovis and Kingsmill , have lost a total of £121 million in bread sales in the past year. Warburtons has lost sales worth £35 million, while Hovis has suffered a £11 million slump in sales. Kingsmill reported that bread sales down £75 million on the preceding 12 months, price drops exacerbating a 14.3% drop in volume. Total UK bread sales were down 8.4% as average prices fell 4.7%, and these figures mean that Hovis, perhaps assisted by its ‘wholemeal’ and traditional image, has overtaken Kingsmill to become Britain's second biggest selling bread brand.
And therein lies the silver lining. As the bread market goes stale, this has spelled good news for consumers as prices in High Street stores have fallen by an average of 15p for a large (800g) loaf. Trade magazine The Grocer reported that shoppers are currently paying, on average, 13.3% less than they were a year ago for a large loaf with those selling at a typical promotional price of £1.14 in the last week of April now costing just 99p.
So are you still a tea and toast in the morning kind of consumer? Or are you almond bagel or fruit and yogurt material? Does your lunchbox include a ham sandwich, or are you quinoa and roasted vegetables these days…