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Retail egg commentary - July 2020


How would you sum up the category’s performance in the last 12 weeks?

Over the last 12 weeks, eggs have grown by +28.4% versus last year. Organic eggs were the main driver behind this growing at +76.0%. At a total category level, more shoppers are purchasing eggs and they are doing so more often and in larger quantity. Free Range eggs continued to perform well, growing by +33.0%. Like organic, the category both successfully attracted new shoppers and these shoppers have bought larger quantities. No egg tier saw decline; however, Barn eggs did grow the slowest at +6%.


How have prices changed and which factors have influenced them?

Average egg prices saw an uplift YOY of +4.2%. This was primarily driven by Free Range where price per pack increased by +6.0%. Organic Eggs too saw an uplift in price, however this was behind Free-Range at +3.3% YOY. Prices of Barn Eggs remained flat YOY.

An explanation for this drop in average price could be linked to the fall in promotions at a total category level. Total sales on promotion have dropped -15.6% YOY. Free Range has driven this average drop seeing the most significant drop in promotions -24.0%. An explanation for slower price growth in Organic and prices remaining flat for Barn Eggs is that sales on and off promotion both grew YOY. For Organic sales On Promotion grew at +23.6% and for Barn they grew at +20.6%. Equally, sales Off Promotion in Organic Eggs grew by +83.1% and by +4.2% for Barn.

However, as Free Range make up such a large proportion of category value, their growth in price as a result of fewer promotions will have the greatest impact on the category.


How has the dynamic between brands and own label changed and which factors have influenced this?

Both Branded and OL eggs saw a YOY increase. However, Branded eggs did grow faster at +56.1% in comparison to OL which grew at +22.6%. OL Barn Eggs saw the slowest growth across all OL tiers. Whereas Organic OL eggs grew the fastest within OL at +71.3% YOY.

With regards to Brands, Organic were also the best performing tier, seeing +139.7% however it should be remembered that this is coming from a small basis and thus does not necessarily reflect a huge uplift in value. Branded Barn eggs were also the worst performer in branded eggs, however, they still performed well growing at +18.3% YOY.


Which factors will be most important in this coming category?

Given the current situation, eggs manufacturers are presented with a useful opportunity. On one hand, more people are home baking, given that lockdown has given people extra spare time at home, therefore this is something that the egg industry can benefit from. Equally, with many people working from home and not rushing to work in the morning anymore, a cooked breakfast could start becoming more of an every-day staple in UK households. Additionally, it is also important to take animal welfare and health into consideration, given that Organic Eggs have performed the best YOY.