Sales of frozen burgers have plummeted 43% as the horse meat scandal damaged consumer confidence in the products, according to Kantar Worldpanel data.
Frozen ready meals declined by 13% in the four weeks to February 17 as lines were withdrawn and consumers shunned products.
Tesco’s market share stood at 29.7% in the 12 weeks to February 17 down from 30.1% last year and 30.4% in the 12 weeks to January 20 reported last month. Kantar attributed the drop to a money-off promotion run last year and not this year, rather than as a result of the horse meat scandal.
Tesco’s sales grew 2.4% in the latest 12-week period, behind the grocery market average at 3.7%.
Sainsbury’s, which has not been implicated in the horse meat crisis, was the strongest performer of the big four grocers as its sales grew 4.6% and it attained a 17% market share.
Asda sales grew 3.1% while Morrisons sales fell 1.3% in the 12 week period. Aldi continued to be the strongest performer in the market, recording a 30.1% surge in sales.
Kantar data leaked to Retail Week shows Tesco’s sales fell 0.4% in the four weeks to February 17 while Morrisons’ performance improved to a 0.7% fall. Asda grew 5% while Sainsbury’s grew 5.8% in the shorter period.
Kantar Worldpanel director Edward Garner said: “The issue has so far only affected the performance of individual markets rather than where consumers are choosing to shop.
“It might seem natural to attribute [Tesco’s market share] decline to the horsemeat contamination; however, Tesco undertook heavy promotions this time last year, where consumers received a £5 voucher when they spent £40, and not repeating this offer will have adversely affected its share.”
He added: “Waitrose and Aldi deliver all-time record shares this period of 4.8% and 3.3% respectively indicating that market polarisation and the ‘two nations’ consumer climate continues. Iceland records 10.1% growth confirming that the frozen food category as a whole remains robust.”
The total grocery market is growing at an annual rate of 3.7% behind grocery price inflation of 4.3%.
Full Kantar Worldpanel data below:
| Total Till Roll - GB Consumer Spend | |||||
|---|---|---|---|---|---|
| 12 weeks to 19 February 2012 | 12 Weeks to 17 February 2013 | % Change | |||
| £000s | % ** | £000s | % ** | % | |
| Total Till Roll | 34,356,190 | 35,165,930 | 2.4 | ||
| Total Grocers | 24,990,870 | 100.0% | 25,920,530 | 100.0% | 3.7 |
| Total Multiples | 24,486,770 | 98.0% | 25,397,100 | 98.0% | 3.7 |
| Tesco | 7,533,019 | 30.1% | 7,711,118 | 29.7% | 2.4 |
| Total Asda | 4,453,045 | 17.8% | 4,592,875 | 17.7% | 3.1 |
| Asda | 4,453,045 | 17.8% | 4,592,875 | 17.7% | 3.1 |
| Netto | - | 0.0% | - | 0.0% | n.a |
| Sainsbury’s | 4,212,086 | 16.9% | 4,406,149 | 17.0% | 4.6 |
| Morrisons | 3,107,402 | 12.4% | 3,066,324 | 11.8% | -1.3 |
| The Co-operative | 1,600,943 | 6.4% | 1,605,288 | 6.2% | 0.3 |
| Co-operative | 1,598,048 | 6.4% | 1,605,288 | 6.2% | 0.5 |
| Somerfield | 2,895 | 0.0% | - | 0.0% | -100.0 |
| Waitrose | 1,141,882 | 4.6% | 1,243,836 | 4.8% | 8.9 |
| Aldi | 647,762 | 2.6% | 842,761 | 3.3% | 30.1 |
| Lidl | 653,468 | 2.6% | 725,212 | 2.8% | 11.0 |
| Iceland | 526,184 | 2.1% | 579,259 | 2.2% | 10.1 |
| Farm Foods | 140,290 | 0.6% | 128,803 | 0.5% | -8.2 |
| Other Multiples | 470,693 | 1.9% | 495,473 | 1.9% | 5.3 |
| Symbols & Indies | 504,096 | 2.0% | 523,432 | 2.0% | 3.8 |
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