Food and Beverage Business
Consumer

Increased Demand for Ice Cream, Soft Drinks, and Treats Drives Sales Surge

Increased Demand for Ice Cream, Soft Drinks, and Treats Drives Sales Surge "heat up", cream, demand, drinks, Drives, ice, ice cream, increased, sales, Soft, soft drinks, surge, Treats Food and Beverage Business

Despite the ongoing cost of living crisis, the warm weather experienced throughout June provided a welcome distraction for Brits. In fact, the week ending 17th June saw a significant improvement in weekly grocery sales, reaching £2.9bn, making it the second highest week so far this year, only surpassed by the Easter period.

One of the notable effects of the warm weather was the increased sales of seasonal drink items. Sports & energy drinks, flavoured non carbs, mineral water, and cider all experienced strong value sales uplifts of 31%, 23%, 25%, and 22% respectively, according to data from NIQ. Additionally, alfresco drink opportunities contributed to the growth of Pimms, with the week of 17th June being the second largest value and volume week for the brand this year, experiencing a 37.8% increase in sales as the nation celebrated summer.

As Brits had more opportunities to socialize and enjoy the outdoors, there was also a growing demand for other seasonal items. Suncare products saw a remarkable 74% increase in sales, while ice-cream and hayfever remedies experienced a 47% and 25% boost respectively.

The warm weather also encouraged Brits to visit physical stores, resulting in a 13.4% rise in in-store sales over a four-week period, as reported by NIQ. This led to a significant increase in brick and mortar grocery spend, which grew by £1.1bn compared to the same period last year. Notably, convenience stores experienced an 11.3% sales growth during this period, surpassing supermarkets that grew by 8.7%.

Conversely, online grocery sales experienced slower growth (+4.1%), and the online share of FMCG sales dipped to 10.4%. However, discount supermarket chains Aldi (+22.2%) and Lidl (+18.7%) maintained strong growth, while Marks and Spencer remained the fastest-growing retailer after the discounters, with a sales increase of 15.4%.

Shoppers were able to navigate the cost of living crisis with the help of extended Nectar prices which offered further discounts and promotional prices. Sainsbury’s took advantage of this and gained market share by experiencing an 11.7% sales increase over the last 12 weeks.

Mike Watkins, NIQ’s UK head of retailer and business insight, commented on the recent trends: “In the last four weeks, there were 34 million extra visits to stores compared to last year, with 30% more visits than what we recorded in early May. These visits predominantly included smaller baskets, drinks, snacks, and refreshments, as shoppers took the opportunity to enjoy the sun. Understandably, online grocery sales have taken a hit due to the decreased need for large grocery shops.”

Watkins also added, “We expect to see a gradual improvement in supermarket volumes as food inflation peaks. However, the continued squeeze on disposable incomes will strongly influence what shoppers buy and where they shop. While spending in the coming months will primarily focus on essential needs, the summer heat will drive an increase in impulse spending on cold drinks and treats, benefiting supermarkets in general.”

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