The German discounters are leaving the traditional supermarkets behind in the hot desserts market.
Aldi and Lidl both overtrade in the category, when compared against their performance in the overall grocery market, according to data from Kantar Worldpanel [52 w/e 24 May 2015]. Of the big four, Sainsbury’s is the only one to also overtrade in the sector, according to The Grocer.
The discounters’ success is down to Brits developing a taste for sponge puddings, with value sales up 10.1% in a market that is more or less static overall.
Chris Longbottom, Kantar Worldpanel director, said the hot desserts category was a good example of how middle ground retailers are being squeezed.
He said: “The discounters are very smart and will be up there with the latest trends, such as the demand for sponge puds through interesting ambient ranges at good prices.
“At the other end, Waitrose and Sainsbury’s are likely to be performing well in chilled and that will be holding back Asda, Tesco and Morrisons.
Experts suggested Aldi and Lidl’s success is down to targeting both the lower-income shopper and the middle class, as well as getting the marketing right for the audience.
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