Earlier this week, the owner of brands such as Mr Kipling, Bisto and Ambrosia, revealed that its UK sales had increased around 7.3% in the fourth quarter and 15.1% last month due to panic-buying at the start of the coronavirus outbreak. However, a consumer analyst from GlobalData believes it is too simple to say that Premier Foods’ recent surge in sales is all down to stockpiling trends.
Carmen Bryan said: “While this certainly has played a leading role in the company’s performance, with 41% of UK consumers either buying more of certain products or more products than they intend to consume, according to GlobalData’s COVID-19 tracker, uncertainty of when the lockdown will be lifted has also reignited home cooking and anchoring trends.
“It is common that in times of stress and restricted freedom, people seek out what is familiar and safe. In fact, GlobalData’s survey also reveals that 49% of UK consumers admitted that they are currently trying to only buy from their favourite brands – Mr Kippling or Shawoods sauces being staples for many British households. However, as the market remains volatile, it is uncertain how long these new behaviours will last.”
Bryan added: “This surge in demand is not necessarily a good thing for companies in the long term. The strain on production, and inevitable falls in demand when consumer behaviour normalises again, could have a backlash on the company’s future sales. It is hard to judge when these trends will cease, and therefore hard for manufacturers to accurately estimate how much of a product they need. The risk is that oversupplying might lead to an immense waste of resources.”
