Guide To Cheese
Guide To Cheese
Cheese
Consistently
Consistently GreatGreat Tasting
Tasting Cheddar
That’s
That’s whywhy we’re
we’re stillstill
the the UK’s
UK’s #1* *
#1 cheese
• Bigger than all other branded Cheddars combined*
• Bought by 45% of all UK households**
*IRI SIG Grocers + Kantar Discounters 52we 25 Dec 2021. **Kantar Worldpanel 52we 26 Dec 2021
The Grocer Guide to... Cheese
Saputo Dairy UK
Market-leading quality
DETAILS A perennial favourite, cheddar
Saputo Dairy UK* remains pivotal to pre-packed
5 The Heights
Brooklands cheese category health and has
Weybridge posted strong two-year growth at
Surrey KT13 0NY
t: 01372 472200
£120m+ incremental value vs
w: uk.saputo.com pre-pandemic sales1.
In an increasingly tough competitive
KEY CONTACTS
landscape, Cathedral City proudly
Tom Atherton
President & Chief
remains the UK’s No.1, valued at
Operating Officer £292.7m1. Voted top chilled/frozen food
Adam Braithwaite brand in YouGov’s Brand Index2 for the
Group Commercial Director
Andy Saitch
fourth consecutive year, it has grown
Cheese Business share in a contracting branded block
Unit Director sector and has outpaced sector growth
Neil Stewart
Cathedral City
in sliced, grated and snacking1.
Marketing Controller Andy Saitch, cheese business unit
Jonathan Westlake director, says: “We’ve worked hard
Davidstow Brand Controller
this year to deliver consistently great
KEY BRANDS quality at great value for our consumers,
Cathedral City Cheddar while also maintaining our focus on
Davidstow Cheddar renovation and innovation to meet their
Vitalite Dairy Free evolving needs.
Alternative to Cheese
“We’ve continued to back our
Lighter range, growing share within
reduced-fat cheese. As the pace of life
has re-escalated, we’ve expanded our
range of convenient formats, fortifying
our popular Extra Mature variant with a strong year, posting the highest growth
extensions into ‘Grated’ and ‘Minis’. We’ve of any branded cheddar block to reach
Most recently, we have collaborated £10.7m1, with household penetration
with Iceland on an exciting range
worked hard at an all-time high1, reveals Saitch.
of exclusive Cathedral City branded to deliver “Success has been achieved through
frozen food products. consistently distribution gains, underpinned by
“We’ve also maintained an emphasis great quality an intelligent promotional plan and
on environmental sustainability,” at great value always-on marketing.”
adds Saitch. “Through our ‘Cheese for our Beyond cheddar, Saputo has
Packaging Recycling Programme’ consumers, continued to develop its range of
we’ve collected over 590k units of dairy-free alternative to cheese
cheese packaging waste, while 2021
while also products under the Vitalite brand.
has seen the introduction of up to 80% maintaining In June 2021, Vitalite unveiled a
recycled content into Cathedral City our focus on new mozzarella-flavour product for
Slices trays, transition of our Snack renovation and foodservice, followed in October by
Pack trays to widely recycled PET and a innovation to a grated extension to its retail range.
relaunch of Cathedral City Nibbles in a meet their The company has ambitions to grow
new outer bag that can be recycled with evolving both reach and range in 2022 to
plastic bags at large supermarkets. further capitalise on the dynamic
“We’ll continue this focus into 2022, needs” growth of plant-based, dairy-free and
strengthening our proposition and vegan diets.
distinctiveness though an exciting Saitch concludes “As the UK’s leading
Source
calendar of marketing activity that branded cheese manufacturer, we
1 IRI SIG Grocers + Kantar reinforces our taste and sustainability remain committed to driving long term
Discounters, 52 w/e 25.12.21.
Two year growth stated vs
credentials.” category growth. With a range that
equivalent 52 w/e Dec 2019 addresses consumers’ varied needs for
YouGov, FMCG/CPG Ranking
Portfolio play
2
2021; Chilled & Frozen Food health, convenience and value we are
* Saputo Dairy UK is the trading
Saputo Dairy UK’s premium Cornish perfectly placed to lead the way as the
name of Dairy Crest Ltd cheddar brand, Davidstow, has also had market evolves in 2022.”
Contents
Saputo Dairy UK 2
Driving long-term category growth
with a varied range
Feature analysis 4
As the UK market returns to relative
normality, cheese suppliers are
stepping up efforts to meet varying
consumer demands on myriad
occasions, from snacking to meat
alternatives to indulgence
Butlers Farmhouse Cheeses 11
Shaking up the category with a
“rebellious” brand
Bel UK 12
Creating a broader focus on fruit
and plant-based snack options
Eat Lean 14
Empowering consumers to make
better food choices
Norseland 15
Growing the vegan cheeze category
with plant-based alternatives
Eurilait 16
Whipping up fresh sales with its
French sea salt cream cheese
Lactalis UK & Ireland 18
Tapping into key consumer trends to
spur brand category growth
Mondelēz International 20
Capturing shoppers’ attention with
brands they know and love
Primula 22
Introducing new flavours to its
squeezable tube cheese spread
Violife Foods 24
Campaigning for change to help
protect the planet
Wyke Farms 26
Building back better with a new
and improved cheese dairy
Analysis
Covering
all bases
Whether it’s for snacking or indulgence,
hot meals or meat alternatives, cheese
suppliers are covering myriad consumer
occasions. But the past year has seen
several challenges... and more lie ahead
As the UK market returns to a Trott. “As a result, the speciality cheese of uncertainty consumers seek out
near normal, with the promise of category has grown by 12% year on recognised brands they know and trust,
all Covid restrictions being lifted soon, year, way ahead of everyday cheese that deliver on familiarity and taste.”
cheese suppliers are finding they need up 1.6% and total cheese rising 6.3%1. Butlers Farmhouse Cheeses owner
to meet numerous consumer occasions, The top performers in this category Matthew Hall says products with a
with convenience and indulgence being include speciality cheddar, mozzarella, purpose and provenance are a trend
two of the key drivers. goat’s cheese, as well as British and the company expects to continue
Yet shopper focus on health and continental blue cheeses. In particular, this year. “The pandemic accelerated
wellbeing, as well as the ongoing brie is in 7.3% growth and camembert a heightened consumer awareness
trend to flexitarian and vegan diets +5% growth YOY1. Despite shoppers and desire for quality, British-made
are also having an impact on retailers’ beginning to go back to pre-lockdown products, as they realised that what
stocking decisions and, with increasing behaviours2, we expect speciality they needed could be provided by
inflation, value for money will also play cheeses to continue to fare well even home-grown and small producers – at
its part in the year ahead. after ‘normal life’ returns.” their local farm shop or fine food deli.
“Over the past 12 months, with the “Within the cheese market processed Consumers are continuing to support
pandemic still restricting everyday cheese is growing at 2.8%3, and brands local makers as we emerge from the
life, we have seen consumers continue are playing a huge part in this,” says harder Covid restrictions.
to upgrade everyday occasions with Mondelez trade communications “Consumers are also recognising
affordable luxuries, such as speciality manager Susan Nash. “In fact, the important part they have to play in
cheeses, in a bid to brighten up daily Mondelez International’s contribution dictating what is available to them when
life,” says Lactalis UK & Ireland group to the category is growing ahead they shop,” he adds. “We are seeing
marketing director Heloise Le Norcy- of the market at 4%3. During times it in the growth in speciality cheeses;
1KT
Volume switch from
cheddar into recipe
type cheeses7
Kantar, 52 w/e 16.12.21
14%
Volume growth of
dairy-free alternatives
to cheese9
IRI, 52 w/e 25.12.21
42.3%
Growth in hot eating
cheese category
52 w/e 09.10.21 vs previous 2 years
people have become more adventurous early Covid dynamic saw everyday marketing at Primula, which enjoyed
with their cheese choices as usage block cheese surge ahead, it made last 10% growth6 in 2021 as its squeezable
occasions have soared – they want to year a particularly challenging one for tube format stays relevant. This will
explore something different or a little bit the sector (-8% volume vs a year ago, be equally valid as the world returns
special which, in turn, is driving retailer compared to +6.5% volume versus two to the new normal and people face the
behaviour on what to stock.” years ago4). “The outlook has been pressures and time constraints of day-
Wyke Farms managing director brighter for convenient product sectors to-day life, she adds.
Rich Clothier notes the company has – sliced, grated and snacking – which Also, growing concern around
seen robust growth both in the UK have all posted positive growth, fuelled finances and inflation, leading to
and export markets over the past year. by greater mobility and the pace of life tighter spending mean that its new
“After an initial check post-Brexit, we creeping back to pre-pandemic norms.” formats, launching in 2022 – Burger
saw sales in the EU return to normal In fact, the company reveals that with Cheese, Cheese ‘n’ Jalapeño and Cheese
quite quickly. We have incurred extra consumers increasingly searching for ‘n’ Sriracha – can help create a great
labour costs, vet inspection costs and products that can help them save time out-of-home experience for shoppers
additional transport costs to service the in meal preparation, both the sliced by offering a simple way to add extra
market, but volumes have remained and grated sectors have seen year-on- flavour to their meals.
strong and loyalty from customers has year growth in excess of 6% (volume “As we continue to adapt to changes
been consistent.” and value) in the latest year5. in our daily routines, quick and easy-
The pre-packed cheese market has Quick and easy meal solutions to-use product formats are growing in
continued to post over 12% volume have formed an important part of the popularity,” agrees Violife UK & Ireland
growth versus pre-pandemic4, says consumer agenda over the past two head Victoria Slater. Whether it be
Saputo Dairy UK. However, as the years, says Lisa Thornton, head of Violife’s grated range for a quick and
Analysis
landscape, to win shoppers over, manufacturers, followed by a grated At Bel UK, Oliver Richmond, brand
dairy-alternative products have to meet SKU joining the line-up in October, manager for Babybel, says: “Off the
consumers’ expectations on taste and initially launched into Sainsbury’s. back of the launch of Babybel Plus,
product quality — areas where dairy Meanwhile, Violife’s Slater confirms which caters directly to the increased
alternatives have not always measured that the dairy-free cheese category has appetite for more functional foods,
up. Dairy-free alternative to cheese experienced strong growth over the we recently launched Babybel
products, in particular, have long had past year (+13%11) as the demand for Plant-Based... catering to the vegan,
a reputation of being inferior to their plant-based foods has increased, in vegetarian and flexitarian market and
dairy counterparts. We see tremendous combination with greater offerings in made using ingredients verified by the
opportunity for growth within the market. “Over the last 12 weeks, the Vegan Society.”
this sector by changing consumer category is still growing by 3.1% and In addition, he says, the company’s
perceptions of how great a dairy-free Violife is growing even faster at 4.2% first range of plant-based alternatives
alternative to cheese can be.” YoY11,” she notes. to cheese, Nurissh has reached the
The vibrancy and demand in the “Plant-based alternatives have top five in the sector12 just a year after
plant-based sector are reflected by the never been in higher demand,” agrees launch, with its Plant-Based Alternative
performance of established brands. Mondelez International’s Nash. “This to Camembert version being the star
First launched in 2019, Vitalite Dairy year Veganuary exceeded last year’s product in the indulgence segment with
Free Alternatives to Cheese have total sign-ups with more than 600,000 a 34% share13.
delivered 130% volume and revenue consumers having attempted to follow a With 14.2% of adults (7.2 million) in
growth in the latest 52 weeks and are plant-based diet. Driven by this ongoing the UK now following a meat-free diet14,
now valued at £1.4m10,” says Saputo and increasing trend, Philadelphia Primula Perfectly Plant, endorsed
Dairy UK. In June, the company added launched its first plant-based soft by the Vegan Society and due to be
a new mozzarella-flavour dairy-free cheese alternative this January… aiming launched this year will be the first
alternative product to the brand range, to reach younger audiences who follow vegan spreadable cheese alternative
available to foodservice operators and flexitarian lifestyles.” developed in a fully recyclable tube,
Analysis
Challenging marketplace
The past year has not been without its
challenges, however, as both Brexit red
tape and growing inflation have taken
their toll, with an ensuing impact on
costs and prices.
“Across the industry, many are
continuing to feel the impact of Brexit,
with increased producer costs and staff
shortages across the supply chain,”
says Primula’s Harrison
“The haulage and workforce crises
have certainly hit the wider Joseph
Heler business, requiring us to be agile complement the core range available worked through evolving government
and dynamic in the way we work,” says in Spanish supermarkets and fitness Brexit policy,” she says.
Eatlean founder George Heler. “Thanks stores. The same principle has been Norseland’s Harrison says the
to this resilience we have continued to applied in recently rolling out our EU company is fortunate in that it makes
navigate these challenges and maintain e-commerce site.” its dairy cheese in the south-west of
our upward trajectory.” The Brexit effect has caused England and uses milk from British Red
“Like everyone, the last 12 months consumers to increasingly seek out Tractor-approved suppliers, so Brexit
have been considerably impacted by British produce, including cheese, says wasn’t really an issue for the company.
the challenges of leaving the EU and Lactalis’ Le Norcy-Trott. The company However, it has seen some suppliers
the ongoing impact of Covid-19, but we has been soft cheeses in Somerset increase their prices. “But we are
have also seen this as an opportunity,” for 40 years, with its products from working closely with them to ensure
adds Eatlean’s Saxby.” Following the the Lubborn Creamery therefore that we continue to keep up our product
UK’s departure from the EU, it was positioned to meet the growing supply to the retailers,” she adds.
no longer viable to sell directly to demand for British products. Wyke Farms’ Clothier reveals that the
EU consumers due to the costs and In a wider sense, the company tackled company has also had to change some
processes applied at consignment the Brexit situation by creating a cross- of its working practices, with people
level. This meant all existing direct-to- functional Lactalis UK & Ireland/ based at home and working remotely to
consumer sales ended overnight. Up Lactalis Group comprising colleagues maintain the integrity of its production
to this point 20% of our D2C sales were from supply chain, marketing, quality, areas. “There have been labour
coming from the EU,” he reveals. IT, finance, sales, HR, sites and logistics, challenges, but we have managed to
“To overcome this, we launched our plus other Lactalis subsidiaries across supply what customers need and the
(already planned) Spanish e-commerce Europe. “To manage the implications whole team have stepped up to help.
platform in April 2021. By launching on labelling, flow of goods, border As we go forward, it is clear that the
eatlean.es, we can now deliver a controls and tariffs in a timely fashion, availability of labour will be an ongoing
broader range of Eatlean products to our team developed scenario plans and challenge. We continue to invest in our
sites with more automation to increase spend on food and entertaining and are marketing controller at Saputo notes:
productivity and upscale labour. We looking to be excited and delighted by “With inflation climbing to its highest
believe that this will be the key going new premium type offerings to enjoy rate in 30 years17 and the cost of living
forward in a post-Brexit world.” with their friends. – from buying groceries to heating our
Despite a minor impact around “Sadly, there will be people who homes – rising sharply, consumers
Brexit, Clothier says the only other have lost jobs and have changes in are once again becoming much more
challenge has been “quite serious circumstances that have led them to be conscious of managing their grocery
inflationary price increases”. significantly financially challenged. spend. Savvy shopping behaviours
“Managing this inflation and not This group will be looking for more adopted during previous periods
allowing it to get out of control will also affordable offerings and ways to feed of economic uncertainty have seen
be key going forward.” the family that are economically viable shoppers both increasing emphasis on
Meanwhile, the challenges around in an inflationary environment. value for money and working harder
Covid have increased the polarisation of Saputo Dairy UK agrees that the to make their groceries last longer,
wealth and the issue for retailers will be mounting cost of living is widely turning to versatile, staple foods to
how to navigate affordable offerings for expected to play the biggest influence fulfil more meal occasions.
people, at the same time as offering very on shopper behaviour in the coming “As food price inflation continues to
premium items for affluent shoppers, year and may see a polarisation in unfold, we anticipate that this focus on
he adds. “The retailers and brands that purchasing as shoppers adopt a variety ‘value through versatility’ will continue.
manage to navigate this puzzle well will of tactics to manage their spend – from Cheddar has a real opportunity to
definitely be the ones who succeed. trading into products they perceive to capitalise on this, helped by its breadth
“We are seeing groups of shoppers offer value for money, to spending on of formats (blocks, slices, grated and
who may be more cash-rich post-Covid, small indulgences and more premium pre-packed snacks).”
having not spent money on holidays products, while cutting down on big- Price pressures are coming to
and travel and remain secure in their ticket items and dining out. bear in the market, as Norseland’s
jobs. These groups have money to Neil Stewart, Cathedral City Harrison reports that the UK dairy
Analysis
tend to cope by trading down to Hall at Butlers Farmhouse Cheeses. -0.4%, vs everyday at -13% 18 IRI, Major Multiples, 52 w/e
buying more on promotion or simply of a hard, soft and a blue cheese, so 4 IRI SIG Grocers + Kantar
buying fewer items. a packaged farmhouse cheeseboard equivalent 52 w/e 2019 17.11.21
5 IRI SIG Grocers + Kantar 21 Stated by Ben Broadbent,
“Another observed effect of inflation fits all of these usage occasions and Discounters, 52 w/e 25.12.21 deputy governor for
is that health becomes less important in eliminates the need for the retailer to 6 Nielsen, units sold 52 w/e monetary policy, Bank of
02.01.22 England: theguardian.com/
consumers’ minds22. Ensuring mental stock three separate products.” 7 Kantar, 52 w/e 16.12.21 vs business/2021/dec/06/uk-
and physical availability of cheese 2022 is going to be heavily influenced previous year
8 Mintel, UK Cheese Market
inflation-likely-to-exceed-5-in-
2022-says-bank-of-england
staples, as well as premium favourites, by the arrival of HFSS and the Report 2021
9 IRI, Total Grocers, 52 w/e
22 Kantar, 52 w/e 31.10.21 and
The Cheese on
Everyone’s Lips
• 100% recyclable PACKAGING
• THE STAR OF BLUE CHEESE growth
• Continental in style.
Handmade in BritaiN
butlerscheeses.co.uk [email protected]
The Grocer Guide to... Cheese
Bel UK
Eatlean
#EATAWESOME
The Grocer Guide to... Cheese
Norseland
Eurilait
Brand performances
“As the No.1 Italian cheese brand
and No.1 mozzarella brand1, Galbani
benefited from consumers cooking
more at home in 2021, with total value
sales growing by 15%2, predominantly
driven by sales of Galbani Mozzarella
and Galbani Burrata, which are great
additions to pasta and pizza dishes,”
she reveals. “As well as being more
experimental in the kitchen, consumers
have increased their demand for
environmentally-friendly products. To
capitalise on these trends, in April 2021
we expanded the Galbani range with together represent the fastest-growing
the UK’s first mozzarella in a recyclable and top contributing brands6 to
carton. Made with 100% Italian buffalo
Across the absolute value and volume growth in
milk, Galbani Mozzarella di latte di year, we’ll hot eating cheese.
Bufala 200g offers a creamy texture and tap into a “To support Seriously Cheddar, we
delicious authentic taste. number of key launched a new national TV and video
“Despite ongoing market challenges, consumer on demand (VOD) media campaign
Président saw double-digit growth trends set to in 2021,” she adds. “The campaign,
across all its cheese types including impact the targeted consumers aged 45+ and
brie +38.7%, camembert +61.4% and helped to grow brand awareness and
emmental +29.7%3. As the No.1 French
category reinforce Seriously’s taste positioning.”
continental cheese brand4, Président – including Finally, Lactalis Group bolstered its
taps into consumers upgrading affordable dairy offering through the acquisition
everyday occasions with affordable luxuries, of Leerdammer in September 2021, she
luxuries, such as speciality cheeses.” cheese being notes. “We are delighted to have added
Consumers are increasingly seeking enjoyed as the UK’s leading brand in cheese slices7,
out cheese as a meat alternative, a cooking Leerdammer, to our collection.
says Le Norcy-Trott. “The hot eating “With a portfolio of household
cheese category, which rose 30% in
ingredient favourites across cheddar and
value and 20% in volume5, even faster and cheese as continental, we are committed to
than vegan cheese, is being driven a meat working collaboratively with our retail
Source
1-7 IRI, Major Multiples, 52 w/e
by innovators Président Brie Bakes alternative” partners to develop the category and
01.01.22 and Seriously Cheese Nuggets, which drive continued growth.”
Mondelēz International
Primula
Violife Foods
Wyke Farms