Be it pandemic or the current inflation, there are very few aisles in a store that continue to remain more or less unaffected. The frozen and chilled food section is one such category that promises to be resilient, as it is well positioned to service the change in shopping and consumer behaviour as well as changing tastes, needs and nutritional requirements.
Figures show that over the last two years, frozen has attracted over 400,000 more shoppers. The retail frozen food market is now worth £7.1 billion and has added nearly £850 million worth of sales since 2019- that’s value growth of +13.5 percent and volume growth of +9.2 percent. With the total grocery market broadly flat, frozen sales have significantly outperformed the market, indicating that Britons have truly fallen back in love with their freezers.
A 19.8 percent growth rate has been recorded in sales of savoury frozen foods since 2019, with plant-based products up 16.8 percent. Ice cream is the largest single category in frozen, worth £1.3bn to retailers and accounting for 18.6 percent of their overall frozen food sales, which is up from 17.3 percent in 2019. Frozen fish broke through the £1bn barrier in 2020, and 2021’s sales represent a 16.4 percent (£141.2 million) gain in just two years.
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However, lifestyle changes are driving the sale of meat-free frozen ranges as well. Vegan and vegetarian frozen products have generated a 16.8 percent growth rate since 2019, contributing to a £237.4 million growth in sales of savory foods in the same period.
There has been incredible innovation in the frozen plant-based category, says a recent report by British Frozen Food Federations. It is no surprise that consumers with all kinds of dietary needs and preferences are adding these types of products to their baskets.
Another factor that is and will drive frozen sales is food waste. The majority of shoppers (62 percent) are now influenced in their food and drink purchases by sustainability issues and frozen food, with its proven ability to cut food waste, is perfectly positioned to help, says the report.
Ice Cream and Meals
Ice cream is the undisputed leader in frozen section- no arguments there. And with newer, healthier, vegan and flexible options available in the market, ice cream is no longer just a summer thing.
In convenience, ice cream sales are currently worth £416 million, with handheld multipacks proving to be the strongest category with sales worth £174 million.
Michelle Frost, General Manager at Mars Chocolate Drinks and Treats, recommends retailers to stay well stocked all year round to meet this demand in a mix of formats such as singles, multipacks, and tubs.
“Consumers are seeking a wider choice of vegan and dairy-free products. Nostalgic flavour is another current trend where consumers seek out familiar flavours that bring back good memories,” Frost tells Asian Trader, adding that Skittles Stix and Starburst Ice Lolly are prominent in this category.
Skittle Stix is a fruity flavoured ice cream with a secret pearl centre while Starburst Ice Lolly is available for the first time ever in the UK in delicious lime, orange, and strawberry flavoured lolly with jelly base.
Other top-most selling brands that should be available in stores are Magnum, Ben & Jerry’s, Cornetto, Haagen Dazs, Cadbury’s, Twister and Solero.
Apart from ice creams, chilled Ready Meals category too holds a major presence in the chiller of convenience stores, meeting demand for hot, tasty and easy meal solutions for every occasion.
“With 91 percent of shoppers buying Chilled Ready Meals and one in three regularly buying branded options, brands such as Rustlers are helping retailers cater to demand for convenient solutions that cater to Food to Go (eat now), Top-up and meal for tonight (eat later) missions,” Alex Pickering, Category & Shopper Marketing Controller at Kepak- the home of Rustlers, tells Asian Trader.
Rustlers’ Cook in Box range offers a compelling on-the-go hot eat solution which can sit within the FTG fixture as part of offering shoppers strong choice and value.
Stocking Rustlers’ Core4 range of best-selling products is an easy way to leverage the key consumption occasions of breakfast and lunch.
Launched in 1999, the Quarter Pounder is Rustlers’ another leading product worth over £7.2m within the Impulse Channel, and one of the brands ‘Core 4’ products – alongside the All-Day Breakfast Muffin, Southern Fried Chicken Sub and BBQ Rib. The latest product to join this range is Rustlers Hotdog.
Another staple in the freezer is pizza. Frozen pizza brand Dr. Oetker Ristorante recently announced the launch of five price marked pack (PMP) variants for retailers in the convenience and independents channel.
The pizzas, which comprise Pepp-Salame, Funghi, Pollo, Mozzarella and Speciale, will all feature the price flash of £3.50 each or two for £5, and launch this month. Dr. Oetker Ristorante already accounts for a third of the total branded thin and crispy pizza sales in the Symbols and Independents channel.
The frozen aisle is still incomplete if it does not have salads and greens. Martin Purdy, Commercial and Marketing Director at Florette UK, too feels that retailers who are overlooking salads are missing out on a major sales opportunity in the chiller.
“The leafy prepared salads market is worth over £600m annually and continues to see big sales uplift. More shoppers are purchasing the category year on year too, with half a million more shoppers than in 2021,” Purdy tells Asian Trader.
Florette is taken home in six million households as “shoppers recognise its quality and health credentials when seeking meal solutions”, says Purdy, reiterating that by stocking a beacon brand like Florette, retailers are making a statement about their commitment to driving a fresh produce presence into their stores.
Florette recently launched a major on-pack partnership with the world’s biggest animated franchise to coincide with the much-anticipated film release ‘Minions: The Rise of Gru’. The mischievous, iconic characters are embellishing over 13 million packs of Florette as part of an on-pack promotion until the end of September.
Apart from bestselling cold and fuzzy drinks, retailers should also make space in their chillers for new-age energy drinks as well. C4 Energy is one such product that might entice shoppers to as it is one of the fastest growing energy drink brand with a mission to maximise human potential through high quality science.
C4 Energy Drinks are available in four explosive flavours- Twisted Limeade, Orange Slice, Cosmic Rainbow and Frozen Bombsicle. It contains “BetaPower”, and other key ingredients that support explosive energy, alertness, and performance. C4's other offerings are C4 Ripped and C4 Ultimate, apart from popular C4 Original.
Daily Dairy
A focus on leading healthier lifestyles is a major factor that works in the favour of cheese snacks.
Within the cheese market, processed cheese is growing at 2.8 percent, and brands are playing a huge part in this. In fact, Mondelēz International’s contribution to the category is growing ahead of the market at four percent.
With an established heritage and a wide portfolio, both Dairylea and Philadelphia are household favourites. Philadelphia’s core range has a distinctive creamy taste, meeting the needs of shoppers for more than 100 years, with a whole range of flavours and fat levels, as well as a snacks range.
Dairylea has been an iconic staple since 1950 and is present on “one out of two” families’ shopping lists.
“Dairylea’s iconic triangles, made with milk and cheese, provide a good source of calcium with no artificial colours, flavours or preservatives. At 33kcals per triangle, this tasty snack is perfect for the shoppers looking for portion control for their families,” Susan Nash, Trade Communications Manager at Mondelēz International, told Asian Trader.
Many of the Dairylea snacking products, including the portable format of Dairylea Filled Crackers, moved to under 100kcal in line with its commitment to bring snacks that are typically bought for families under this threshold.
Other than Mondelez, another leader in cheese snacks is Lactalis whose brands- Seriously Spreadable, President, Galbani, and Leerdamer- have been seeing growth in the convenience channel.
Heloise Le Norcy-Trott, Group Marketing Director for Lactalis UK & Ireland, states that snacking is the pushing the value growth of cheese market and interestingly that too, mainly driven by kids snacking products!
“Grated is the second highest contributor to growth driven by Cheddar and Mixes,” Norcy-Trott tells Asian Trader, adding that slice comes third growing, mainly driven by sliced mature cheddar and mozzarella.
“There are also signs of premiumisation within Continental and Recipe cheese with Burrata being the second largest contributor to volume growth.”
With lives returning to normal, consumers are once again expected to gravitate towards quick and easy to use formats. Leerdammer, which joined the Lactalis Group portfolio in September 2021, is sold mainly in a sliced format. Leerdammer Light, with 52 calories a slice, offers options for those looking for healthier choices.
Apart from cheese, flavoured milks and drinkable yoghurt are other popular products which are sought by adults as well as children.
Ewa Moxham, Head of Marketing- Yoplait, states that as a result of the increase in at-home snacking occasions, the flavoured milk market grew over the course of the pandemic, particularly in terms of spend per shopper and frequency.
In fact, demand for convenient snacks and the increased focus on health have given a major push to yoghurt brand Yop.
“Well-placed to leverage the trend towards ‘better-for-you’ drinks, Yop is a source of calcium and vitamin D which are important for healthy bone development,” Moxham says.
Yoplait’s kid range is another interesting product to stock to induce impulse purchase. In fact, Kids’ yoghurt drinks are a particularly fast-growing sector since parents are increasingly drawn to the Vitamin D fortification.
Moxham recommends stocking Yoplait’s Petits Filous’ Mess Free drinkable format comes with a convenient sports cap, meaning kids can enjoy delicious and nutritious yogurt without any spillages.
Mess Free range has been extended with two ‘No Added Sugar’ options – Raspberry & Apple and Banana & Apricot.
Petits Filous is another offering by Yoplait in kids’ yogurts range. Its ‘No Added Sugar’ variant is made with naturally sourced ingredients and has 4.9g of sugar per 100g, often deemed as bestselling no added sugar product in the market.
Petits Filous recently launched its latest marketing campaign ‘Mischief Makes Us’, which champions the fact that the iconic French brand name “Petits Filous” translates to ‘Little Rascals’. The campaign aims to reframe mischief as a force for good that can help kids go further in life.
Plant-Based
Meat free eating is at an all-time high, with almost 50 percent of the UK population buying into the category - that’s more than 28 million households choosing meat free.
“Shoppers have never been more aware of their environmental impact and how their everyday choices can have a positive effect. This has created a sustained interest in meat free diets, whether that’s vegetarian, vegan or flexitarian,” Gill Riley, Marketing Director at Quorn Foods UK, tells Asian Trader.
Quorn’s chilled and frozen products are extremely versatile and provide delicious meat free meals for every mood, making them an accessible choice for the whole family. Quorn expanded its popular frozen vegan Takeaway range earlier this year, with the launch of Sticky BBQ Wings and Sticky Sriracha Wings.
The meat-free leader has also recently expanded its popular chilled deli range with four new premium products- Quorn Yorkshire Ham, Roast Beef, Finely Sliced Ham and Roast Chicken Style Slices, developed to bring even more meat reducers into the category and boost sales.
Stocking a wide range of meat-free products is an effective way of gaining long-term loyal vegan customers.
Quorn’s Deli range is already the most popular with loyal meat free shoppers, helping retailers drive chilled sales. These delicious new vegan additions have been developed to drive incremental category growth, appealing to a new flexitarian shopper.
“We’re confident that our products are a crucial penetration and frequency driver for retailers and wholesalers and would advise them to stock NPD alongside Quorn’s best-known products, such as Mince, Sausages and Pieces, to make the most of meat free sales,” adds Riley.
Additionally, one in three Britons now drink plant-based milk, so it becomes essential for a store owner to offer a vegan option as well.
“In recent years, we’ve seen an increase in families seeking dairy free alternatives, either due to intolerances or simply as a lifestyle choice,” Moxham says.
Last year, Yoplait introduced Petits Filous- the first ever plant-based SKU. The almond-based variant comes in the much-loved brand’s bestselling raspberry flavour while iconic Apricot core-brand flavour is the newest NPD.
Lactalis too is banking on the popularity of plant-based products through its new launches- Président Brie Bakes and Seriously Cheese Nuggets- which are designed to appeal to non-vegan consumers who are trying to reduce their meat intake.
Plant-based meat alternative brand This has also launched its frozen range that includes a range of hyper-realistic frozen products including Southern Fried Chicken Tenders, Chicken Nuggets and Sausages.
Frozen will flourish
As demand is increasing, especially among Generation Z consumers, frozen food aisle holds a promising avenue for convenience stores.
The rising preference for fresh and natural food products and constant temperature monitoring requirements for frozen food products threatened to hinder the growth of this market to a notable extent at one point in time. However, back-to-back events of the last two years have once again altered consumer buying behaviour in the favour of frozen section.
While Britons being confined to their homes for more than two years and at-home snacking becoming a necessity, frozen snacking items became sought after thing. And now that the world is resuming normalcy, inflation is once again sending shoppers rushing to the freezer cabinets in search of value and quality, continuing the boost of frozen products sale.
Sainsbury’s boss Simon Roberts too revealed recently how shoppers are turning to cheaper frozen foods as they watch “every penny and every pound”. Customers were changing their behaviour in response to the rising cost of living, making more shopping trips but buying less on each visit.
“There is some evidence of customers shopping [more] to own-brand and also areas like frozen are increasing,” Roberts said during a tour of a Sainsbury’s store in Richmond, south-west London. To further encourage the trend, the British Frozen Food Federation is launching a food waste-themed campaign to raise awareness among consumers struggling with rising living costs. The BFFF said it hoped the campaign would play an important role in educating younger shoppers about the “the very real benefits of buying frozen” amid hiking bills.
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However, higher energy bills now pose a threat to this aisle in terms of cost. Retailers across the country are trying to minimise the number of freezers used as they reel under higher bills and overall higher costs.
To ignite shopper interest and maximize revenues, retailers must find the right merchandising balance of ice-creams, dairy and meals in both plant-based and conventional forms. With the rise in popularity of vegan eating, it is crucial that a shopper who is interested in plant-based meat alternatives should not leave empty-handed.
The right promotional offers, marketing and informatory signages can work in this section. Signage is particularly critical — perhaps more so than in any other part of the store — because consumers can’t always see what’s behind the glass.
Keeping a well-stocked chiller with fuzzy and energy drinks is another effective way to drive impulse purchase.
There was a time when frozen foods were considered “not as healthy as fresh alternatives”. However, as Britons stockpiled for lockdown and days after, they apparently have fallen head over heels in love with this category, all over again. Innovations are running high in this segment. So is customers’ appetite for trying new products and tastes.
It is time retailers too make the best of this wave and cash in some revenue.
Aldi is set to open nine stores in the capital this year as part of a £55 million investment within the M25.
Building on its promise to bring unbeatable value to even more Londoners, the supermarket has revealed four of the locations set to welcome new Aldi stores in the next 12 months.
Shoppers in Wimbledon, Fulham Broadway, Caterham and Orpington are all set to benefit from a new Aldi store in 2025.
The openings form part of Aldi’s £650 million investment in Britain in 2025.
The investment also includes upgrades at some of its existing locations within the M25, including an extension to its Colindale store.
Aldi has a long-term ambition to open another 100 stores in London, creating around 3,500 new jobs.
Jonathan Neale, managing director of National Real Estate at Aldi UK, said: “We strongly believe that everyone in Britain should have access to high quality food at our unbeatable Aldi prices. But we know that there are still thousands of shoppers in the capital that don’t yet have access to an Aldi nearby.
“We don’t think it’s fair that so many people still have to make do with big prices at other supermarkets, which is why London continues to be a real focus for us as we work to bring even more Aldi stores to shoppers across the capital.”
Aldi has been named by Which? as officially the UK’s cheapest supermarket of the year for 2024, the fourth year in a row the supermarket has picked up the title.
Co-op on Friday (17) launched its first new store of 2025 in Salford Quays as the convenience retailer embarks on plans to accelerate convenience growth.
The new Co-op convenience store is located in commercial retail space on the ground floor of the Anchorage Gateway, Salford Quays - a 29-story residential development located close to the area’s media, education and cultural hubs.
The launch of the new Salford Quays store comes after the retailer revealed ambitions to open up to 75 new stores this year, consisting of both Co-op estate stores and Franchise stores.
In addition, Co-op has plans for around 80 further stores to undertake major refurbishments in 2025 - transforming the stores to serve and support their communities and to maximise the potential of Co-op’s existing portfolio of properties.
The Salford Quays store offers an extensive range of fresh, healthy produce; food-to-go and meal deals, Fairtrade products, an in store bakery, hot food and award winning wines. Supporting UK farmers all of Co-op’s fresh meat – including in its ready meals, pies and sandwiches - is 100 per cent British.
Member prices create additional value for Co-op’s member-owners, with lower prices on the products shoppers buy most.
Added services include Costa Coffee Express, payment services via PayPoint and parcel collection and returns through an InPost locker.
The store will act as a fulfilment hub for Co-op’s leading Quick Commerce operation, with the online delivery of groceries becoming available shortly after launch via Co-op’s partners Just Eat, Uber Eats and Deliveroo. Orders are picked fresh in the local store, and delivered quickly and conveniently to homes and offices locally.
Soft plastic recycling is also available in the store, enabling consumers to return harder to recycle materials such as crisp packets and bread bags, lids from ready meals, biscuit wrappers and, pet food pouches.
Rachel Hargreaves, Director of Property, Development and Estates, Co-op, said, “I am delighted to see Co-op’s first new store of 2025 launch. We are working to acquire new retail space, both freehold and leasehold, and to maximise the potential of our existing estate as part of our convenience growth ambitions.
"Our stores are designed to be a destination locally, a community hub combining great quality products, value, deals and ethical retailing with quick online delivery services, community participation and additional customer services – we have a clear focus on growing our convenience business, and enhancing the value we create and deliver for our member-owners and their communities.”
Simon Williams, Co-op’s Salford Quays Store Manager, said, “The whole team is excited to launch Co-op’s newest store, and Co-op’s first new store of the year.
"We pride ourselves on being able to deliver the quality, choice, added services and value which can be enjoyed by everyone, and we are really looking forward to welcoming residents, office workers and, those visiting Salford Quays and all that it has to offer into Co-op’s new store. We’re here to contribute to local life and conveniently serve and support our community.”
Co-op’s Anchorage store opens between 7am-10pm daily. With other Co-op stores in Salford Quays including those in Media City which launched in 2022, and in Clippers Quay.
A shop accused of selling vodka, vapes and tobacco to children has had its licence revoked by Buckinghamshire Council.
At least 65 complaints have been made about the Stoke Convenience Store at 59 Stoke Road, Aylesbury since 2022.
Most of these relate to underage sales, according to Trading Standards, which successfully obtained a closure order against the shop last month through High Wycombe Magistrates Court.
A review of the licence was then carried out by councillors on the council’s sub-licensing committee on 9 January.
During the meeting, shopkeeper Sivagnanam Pakeerathan ‘pleaded’ with members to let the business keep its licence, which was held by Mr Suthakaran Krishnapillai, the shop’s owner.
Speaking through a translator, he denied the shop had frequently made underage sales, but said it had ‘made mistakes’ and that his wife had sold a vape to an underage person on one occasion.
However, Cllr Phil Gomm told the meeting the shop had ignored warnings.
He said: “You asked us to treat you kindly, maybe not to revoke the licence. But you are asking us to trust you to not do what you have been doing.”
The meeting was presented with dozens of pages of complaints and witness statements about the shop serving minors and selling counterfeit goods, which were compiled by the council, Trading Standards and Thames Valley Police.
They include a police complaint that a bottle of vodka was sold to two boys in October 2024, as well as a mum’s harrowing account of seeing her daughter being stretchered into an ambulance in June last year after allegedly drinking vodka from the shop and collapsing outside McDonald’s.
Mr Pakeerathan ‘took over the shop’ in 2021 and said he was ‘deceived big time’ by the person who sold the store as he realised its daily takings were only around £300 – lower than he expected.
He told the meeting customers would request certain brands of illegal vapes and cigarettes.
Despite popular demand for the illicit goods, he claimed the Stoke Convenience Store ‘did not sell these items for the next year’.
However, he said this resulted in customers ‘deserting’ the business, resulting in ‘many problems’ and the Stoke Convenience Store being ‘unable to pay its bills’.
Mr Pakeerathan said the shop’s takings had since increased, but that the business had spent £100,000 on buying the shop and around £30,000 on refurbishing the premises.
He told meeting they therefore felt ‘trapped in the wrong place’.
Trust in UK-produced food has reached its highest level since 2021 following three years of falling confidence in standards.
Most (75 per cent) adults now say they trust food produced in the UK. This is a rise from 71 per cent in 2023, although still below the level of trust felt by shoppers in 2021 (81 per cent).
The figure rises to 91 per cent when consumers are asked whether they trust food "exclusively produced" within the UK.
Significantly, more people now say they trust UK food more than NHS care, water from the tap, or any other core service or utility.
A clear majority (85 per cent) of respondents to the survey say they trust the country's farmers, compared to just 9 per cent of whom express distrust.
Animal welfare remains the most important aspect of food production for consumers, and 72 per cent of adults say farmers follow good animal welfare standards.
And a majority of respondents (72 per cent) say that assurance labels were a reason to trust food, while 77 per cent say that labels showing where food comes from helps build trust.
The findings, which draw on research from over 3,000 UK consumers, form part of Red Tractor’s annual Trust in Food Index. First produced in 2021, it is designed to provide the most comprehensive assessment of consumer attitudes to food in the UK.
Jim Moseley, CEO of Red Tractor, said the past four years had been 'brutal' for the food and farming industry. Farmers have particularly faced a series of challenges, such as severe weather events, poor harvests, and the prospect of rising taxes on the horizon.
"Not since the foot-and-mouth crisis over 20 years ago has the food industry had so much to contend with," he said.
But this year’s findings will likely give a boost following years of rising costs and higher prices for consumers.
Meanwhile, the importance of the Red Tractor logo when choosing food has risen to its highest level in the four years since the Trust in Food Index began.
Moseley concluded, "It should be a source of huge pride to everyone involved in food production in the UK that food is now more trusted than water or any other basic service we rely on every day
"Despite the extremely challenging environment, farmers’ efforts to work to some of the highest standards in the world has played a significant role in driving a resurgence of consumer trust in UK food."