Notes

How shopper behaviour is mitigating grocery inflation
I'm sure this a topic you're all familiar with. The recent inflated costs have led manufacturers, retailers and wholesalers to raise their prices. Crucially, however, significant numbers of shoppers are changing what they buy, rather than paying the increases. We’re also seeing a move to cheaper products in categories with much lower levels of price increase. This suggests shoppers are perhaps proactively choosing cheaper products as a way of managing their overall shop, meaning that increases in category A are impacting what is bought in category B, regardless of how prices are changing. Categories seeing the highest levels of downtrading aren’t always seeing high levels of inflation. This has a large impact long term. These choices aren’t just taking place within categories, but also at a wider level, which will likely result in unexpected and much broader changes to demand.

Russian food and drink imports to UK hit with 35% tariffs
The government has announced a 35% tariff on hundreds of Russian products including food, materials used in food and drink, beverages, cereals, spirits (including vodka), vinegar, oilseeds, white fish and fertilisers. However, some sources expressed fears that the moves could exert yet more inflationary pressure on food prices, despite a raft of retailers having taken action to delist Russian products since the war broke out.
The initial reaction from suppliers is that this tariff will not have a large impact nor will it minimise impact on British consumers.

Three-quarters of meal deal snacks ‘dangerously’ HFSS
As you may know, meal deals are hugely popular amongst the nation's workforce - but consumers may not know that they are extremely High in fat, sugar, and salt. Meaning an adult can consume their maximum daily recommended salt intake in just one meal. Asda provides the highest portion of HFSS snacks in their meal deal promotions at 82%, while more than three quarters of Co-op's meal deal snacks were deemed unhealthy. Morrisons offers a marginally healthier proportion of snacks at 63%, but that is still the majority.

Which brings us to - HFSS promotion Bans
Research published by GS1 UK based on responses from its 57,000 members shows 70% of businesses are unaware that volume promotions will be banned under the Department of Health clampdown, due to come into force in October. Under the ban, HFSS products will be banned from prime locations in stores and volume promotions such as buy one get one free outlawed. restrictions on digital marketing and advertising will also come into effect next year. The research shows that not many companies have assessed their products ahead of the deadline, and only 48% are reformulating their existing products.

Iceland - Swift Convenience stores
Iceland are Set to open 4 more Swift Convenience stores in London. Swift carries a full grocery range spanning ambient, chilled, fresh and frozen products, but with more focus on food for now or later today. The format gives the business an option for converting stores from its core Iceland supermarket estate, which is no longer a focus in its expansion plans, having taken a backseat to The Food Warehouse.
Additionally, Iceland reveals that The Food Warehouse’s “standardised” stores in retail parks were outperforming core Iceland stores, of which are unique as they are in old high street units. As a result, Food Warehouse has become the focus for growth ambitions, with plans for up to 30 new stores a year.