Tough cheddar: supermarket-labelled shredded cheese outperforms other brands

Thursday, 13 September, 2012

Supermarket-branded shredded cheese is becoming increasingly popular, especially among consumers with children aged 12 to 15, new research from Roy Morgan has shown. Parents of 12- to 15-year-olds buy more than three times the amount of supermarket-branded shredded cheese than any branded cheese.

For other consumers, purchasing of supermarket-branded grated cheese is more than double that of any of the branded cheeses. Of the 6.4 million grocery buyers who purchased grated or shredded cheese in a four-week period, Roy Morgan Research Single Source data shows that an estimated 2.7 million bought private label or a supermarket’s own brand.

Supermarket brands are preferred over other brands in the grated cheese segment. Image: Roy Morgan Research

Supermarket brands are preferred over other brands in the grated cheese segment. Image: Roy Morgan Research.

While supermarket brands are taking off, well-known cheese brands like Coon, Bega and Perfect Italiano are only capturing a small segment of the shredded cheese market, the research found. Despite this, Fonterra has recently launched a new shredded cheese product, Egmont, under the Mainland brand, which is being marketed as not only being tasty but also ideal for grilling.

“This may well be appealing for buyers with older children who love a cheese toastie, but will it be able to compete in an already saturated category filled with traditional brands and supermarket private label cheese?” asks Warren Reid, Group Account Manager Consumer Products, Roy Morgan Research.

“Having a strong understanding of your consumer is critical for FMCG companies engaged in an uphill battle against supermarket private label products,” Reid said. “The ability to gain any marketing edge may mean the difference in a new brand or even an existing brand succeeding or simply surviving in this market.”

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