Festive food and fizz top Europeans' Christmas shopping list

Jeronimo Martins SGPS SA

18/12/2023 06:00

By James Davey and Helen Reid
       LONDON, Dec 18 (Reuters) - Supermarkets in the UK and
Europe are offering more own-brand festive food from roast duck
to truffle crackers as cash-strapped families spend on Christmas
meals at home while cutting down on gifts and eating out.
    Festive meals are being prioritised as inflation forces
households to adjust their budgets, executives and market
analysts say. For some grocers, it's a chance to upsell to
consumers that can afford to splash out during the holidays.
    "The trend on groceries is strong," Simon Roberts, CEO of
Sainsbury's  SBRY.L , Britain's second biggest grocer, told
Reuters last month. "We're set for a strong food Christmas."
    Sainsbury's has broadened its own-brand "Taste the
Difference" premium food range, adding 170 new Christmas food
products including a ready meal for four of duck, potatoes and
cranberry sauce for 28 pounds ($36), and canapés like mini
smoked salmon terrine slices for 3.75 pounds. 
    Britons expect to spend around 105 pounds more on Christmas
this year than in 2022, according to Barclays research, with
festive food and drink expected to be the largest contributor -
rising by an average of almost 26 pounds.
    UK market leader Tesco  TSCO.L  has bought more turkeys than
last year, CEO Ken Murphy said, as it expects people will go out
less and spend more time at home with friends and family. 
    "I am doing a lot of hosting in the next couple of weeks,
and we do prefer to do stuff at home - it's just more relaxing,"
said Robyn Asher, 55, as she shopped in a Sainsbury's
supermarket in East Dulwich, London. 
    "You can drink much nicer wine at home, because the mark-up
is way too much in restaurants," she added. In her trolley were
five bottles of wine and one of champagne for her family's
Christmas celebrations, to take advantage of the supermarket's
offer of 25% off for six bottles.  
    James Simpson, managing director of champagne producer Pol
Roger, said although champagne sales growth will likely slow
overall in 2023, he anticipated strong sales over Christmas when
even thrifty consumers tend to splash out and treat themselves.
    Britons have bought 3.9 million litres of champagne this
year, down 9% from last year, according to Kantar data on the 52
weeks ending Nov 26. 
    In France, shoppers aim to cut their overall Christmas
spending this year, with the average budget down by 19 euros
compared to 2022 according to a survey by Cofidis and CSA
Research. They aim to cut their spending the most on gifts.
    Supermarket chain Carrefour  CARR.PA  is trying to attract
shoppers with low prices like a 0.99 euro ($1.09) chocolate
advent calendar, among 60 new own-brand Christmas food products
the retailer has introduced this year.
    Supermarkets have increased their range of alternatives to
branded foods as a large majority (78%) of consumers in France,
Germany, Italy, Spain and the UK, across income groups, say they
are switching to cheaper products or shopping at lower-priced
retailers, according to McKinsey research.  
    Polish supermarket chain Biedronka  JMT.LS  said its range
of own-brand chocolates and sweets including gingerbread
biscuits is at least 20% cheaper than big-brand alternatives.
    Dutch supermarket Albert Heijn  AD.AS  said its premium "AH
Excellent" range has 200 holiday products this year, more than
in 2022.
    In Portugal, supermarket Pingo Doce has launched new items
in its "Iguarias" (delicacies) range including a meat, chestnut
and vegetable puff pastry starter for 5.49 euros and truffle
crackers for 1.99 euros. 
    
($1 = 0.7846 pounds)
($1 = 0.9106 euros)

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Fizzling out: UK champagne sales down 20% from 2019    https://tmsnrt.rs/3uY7JXA
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 (Reporting by James Davey and Helen Reid; Additional reporting
by Emma Rumney; Editing by Kirsten Donovan)
 ((Helen.Reid@thomsonreuters.com; +44 7584 155 200 ;))