Mr Kipling stems decline in tough ambient market

03 March, 2006
Page 6 

Mr Kipling cakes: sales saw a slight increase

Manor Bakeries has stemmed the decline in sales of its Mr Kipling brand, but sales of its other main cake brands continue to fall, latest TNS data suggests.
The data highlights the increasing strength of supermarket own-label alternatives, with all the supermarkets growing market share on own-label cakes over the year. Overall, Manor Bakeries sales were down by 3.2% in value to £178.6 million, mainly due to shoppers buying less often, according to TNS. That meant it lost its position as the number one cake manufacturer in the UK in 2005, with Tesco private-label the dominant ambient brand.The TNS cake market overview, covering the 52 weeks to January 2006, shows sales of Mr Kipling branded cakes were up 0.1% to £107.6m. Performance of its two other main cake brands was less positive. Cadbury cake sales were down 9.2% in value to £46.9m and Lyons’ cakes sales were down 5.2% to £22.7m.Meanwhile, United Biscuits McVities’ cakes brand also suffered over the year, with sales down 4.7% to £50.6m.As the ambient cakes brands suffered, the big food retailers grew market share of private-label alternatives. Tesco’s market share of its private-label cakes went up 7% to 16.4% over the year, a share worth £188.5m. Sainsbury’s private-label sales went up 7.5% to 9.9%, a share worth £113.8m. Marks & Spencer’s ambient cake sales were up 3.9% to 7.1%. Asda’s share went up 3.7% to a 7.2% share, worth £83.3m. And Morrisons saw a 6.4% rise to 6.7% or £77m. By comparison, Cadbury’s cakes market share was down to 4.1%, Mr Kipling’s was 9.3%, and Lyons was 2%. McVities cakes had a 4.4% market share in 2005.The data also highlights growth in sales of slab cakes, cut cakes and small pies over the year. Small cakes, such as French fancies, had the biggest market share overall. Muffins saw the greatest sales decline over the year, with market share falling 5% to 4.7%.



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