UK and European supermarkets are increasingly providing a variety of own-brand holiday foods, ranging from roast duck to truffle crackers. This trend is driven by budget-conscious families who are opting to invest in Christmas meals at home while reducing expenses on gifts and dining out.
Due to inflationary pressures, households are reorganizing their budgets, giving priority to festive meals, according to executives and market analysts. Some grocery retailers see this as an opportunity to promote higher-priced offerings to consumers who are willing to indulge during the holiday season.
“The trend on groceries is strong,” Simon Roberts, CEO of Sainsbury’s, Britain’s second biggest grocer, told Reuters last month. “We’re set for a strong food Christmas.”
Sainsbury’s has expanded its premium food range, “Taste the Difference,” introducing 170 new Christmas food items. The additions include a ready meal for four featuring duck, potatoes, and cranberry sauce, priced at £28 ($36), as well as canapés like mini smoked salmon terrine slices for £3.75.
According to Barclays research, Britons anticipate spending approximately £105 more on Christmas this year compared to 2022. The primary contributing factor is expected to be festive food and drink, with an average increase of nearly £26.
Tesco, the leading market player in the UK, has increased its turkey purchases compared to the previous year, according to CEO Ken Murphy. The anticipation is that individuals will opt for staying in more and dedicating additional 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 enjoy far better-quality wine at home since the markup in restaurants is excessively high,” she remarked. In her shopping cart were five bottles of wine and one of champagne for her family’s Christmas celebrations, taking advantage of the supermarket’s promotion offering a 25% discount for the purchase of six bottles.
James Simpson, the managing director of the champagne producer Pol Roger, expressed the expectation that while overall growth in champagne sales might decelerate in 2023, there is anticipation for robust sales during the Christmas season. This period tends to see even budget-conscious consumers indulging and treating themselves.
According to Kantar data covering the 52 weeks ending on November 26, Britons have purchased 3.9 million liters of champagne this year, reflecting a 9% decrease from the previous year.
In France, consumers are looking to reduce their overall Christmas expenditures this year, with the average budget decreasing by 19 euros compared to 2022, as per a survey conducted by Cofidis and CSA Research. The area where they intend to make the most significant cut is in gift spending.
Carrefour, the supermarket chain, is aiming to lure in shoppers with affordable prices, such as a 0.99 euro ($1.09) chocolate advent calendar. This is part of the introduction of 60 new own-brand Christmas food products by the retailer this year.
In response to shifting consumer behavior, supermarkets have expanded their offerings of alternatives to branded foods. A significant majority (78%) of consumers in France, Germany, Italy, Spain, and the UK, spanning various income groups, report switching to more affordable products or opting for lower-priced retailers, as revealed by McKinsey research.
Biedronka, the Polish supermarket chain, has highlighted that its own-brand chocolates and sweets, including gingerbread biscuits, are priced at least 20% lower than comparable products from major brands.
The Dutch supermarket Albert Heijn announced that its premium “AH Excellent” range features 200 holiday products this year, surpassing the offerings from 2022.
In Portugal, the supermarket Pingo Doce has introduced new additions to its “Iguarias” (delicacies) range, featuring items like a meat, chestnut, and vegetable puff pastry starter priced at 5.49 euros and truffle crackers available for 1.99 euros.
