The world's biggest chocolate makers are failing on promises to improve pay for farmers in major cocoa producer Ghana despite strong profits, charity Oxfam said in a report on Thursday.
It said earnings for US companies Hershey, Mars and Mondelez in addition to Italy's Ferrero and Swiss peers Lindt & Spruengli and Nestle had increased since the onset of the pandemic in 2020, a period when inflation has soared.
At the same time, an Oxfam survey of more than 400 cocoa farmers in Ghana - the second-largest global producer of the commodity - found their net incomes had fallen by an average of 16 per cent since the same period.
For women, the average drop was 22 per cent, it added.
"There's big money in chocolate - but definitely not for farmers," said Oxfam International's interim executive director, Amitabh Behar.
"Cocoa farmers work extremely hard, under gruelling conditions, yet can't always feed their families."
The charity claimed that up to 90 per cent of Ghanaian cocoa farmers do not earn a living income, "meaning they cannot afford enough food or other basics such as clothing, housing and medical care.
"Many of the 800,000 farmers in the country survive on just $2 a day," it added.
'Everything to help'
Responding, Nestle said that while it "cannot influence the farm-gate prices due to the cocoa-trade structure in Ghana" the company does "everything we can to help cocoa-farming families close the living income gap".
It told AFP that it strives also to help improve incomes for farmers in Ivory Coast, the world's biggest producer of cocoa.
Ivory Coast and Ghana, both situated in West Africa, together produce about two-thirds of the world's cocoa.
Ferrero said farmers in the countries receive a cash premium on top of the commercial price for cocoa.
"We have been among the first companies to fully support the Living Income Differential (LID)," it said in a statement.
Ivory Coast and Ghana introduced the LID in 2019 to fight poverty among cocoa farmers in the global $130-billion chocolate market.
But their trade boards say the scheme is being undercut by buyers who depress the price of another premium based on bean quality.
Mars, which said it was the first major manufacturer to publicly support the LID, added that its direct financial support to cocoa farmers goes beyond the poverty-fighting initiative.
"We also work on diverse initiatives... with women and their families in cocoa growing communities to improve their livelihoods."
A Lindt & Spruengli spokesperson said its support also extended beyond LID to help improve farmers' earnings.
The group's own sustainability programme also offers extra cash or in-kind premiums as well as funds for local supply-chain actors and other measures to increase productivity.
Hershey meanwhile said it "has had a long-term commitment to supporting increased incomes for cocoa farming households".
The company said it was investing in education in cocoa growing communities, and wanted to "address the underlying factors that contribute to low farmer incomes.
Oxfam's Behar added on Thursday that chocolate giants needed "to put their money where their mouth is".
"They must rid themselves of their colonial legacy of extracting raw materials and keeping farmers in poverty while making astronomical profits for their rich shareholders," he added.
Mondelez was also approached for comment but have yet to respond.
Sugro UK, a member-owned buying and marketing group with over 90 members and a combined turnover of over £2.5 billion, has joined forces with its suppliers to support Dunelm’s “Delivering Joy” charity campaign.
Dunelm’s “Delivering Joy” initiative involves Christmas trees being placed within all UK Dunelm stores, decorated with tags containing gift requests from local schools, care homes, refuges and charities with which Dunelm has partnered.
Customers choose a tag from the tree and drop off the gift requested on their tag at their local Dunelm store, with Dunelm then distributing the gifts within the local community.
Sugro UK Head Office staff have enthusiastically embraced this fantastic Christmas campaign and supported its local Dunelm store, based in Wolstanton, Newcastle-under-Lyme, with a grand total of 38 gift bag donations making a difference to 38 local individuals at Christmas this year.
Many of Sugro’s supply partners also got involved in the campaign and generously donated various treats including chocolate, sweets, and selection boxes. The Team at Sugro are incredibly grateful for all support from its supply partners.
Any additional food donations which Sugro UK were fortunate to receive were taken to the Stoke-on-Trent Foodbank Warehouse based at Blurton Methodist Church.
Emma Senior, Managing Director at Sugro UK, commented: “This was a fantastic initiative that the whole team could get involved with. I particularly want to mention Kate Durose, our Trading Executive, who bought this to life for us. She saw this in a local store and recommended that Sugro get involved.
"Not only did she organise us all, but she also engaged with many of our suppliers, who subsequently joined with us to support the campaign.”
Looking ahead, with its continued focus on business excellence and charitable initiatives, Sugro UK will keep supporting its Members and Supply Partners whilst driving growth, innovation, and community impact in the wholesale sector.
Sales of fresh meat and poultry have soared as shoppers cut back on takeaways and eating out – but they are increasingly shunning so-called ‘meat-free’ options.
NIQ data released today (14) shows that over the last 12 months, British consumers did more scratch cooking, with sales of fresh meat (+£481.3m), fresh fruit (+£463.5m), fresh vegetables (+£374m), fresh salad (+£285.3m) and fresh poultry (+£247.6m) all among the top 10 fastest growing categories.
In a further sign that more meals are being freshly prepared, dried herbs and spices enjoyed the biggest volume percentage gains out of all the 127 categories in this year’s report.
Sales of beef (+£242.1m) and chicken (+£212m) were among the most popular and fastest growing products in British supermarket baskets in 2024, but lamb and duck also enjoyed strong growth.
But the meat-free category (-£37.1m) continues to decline, dipping below £500m in value. Market leader Quorn (-£16.5m) was the biggest casualty, although some brands are still in growth.
Inflation
The NIQ data also shows that UK shoppers have cut back on some dairy products, with milk (-£223.3m) and butter, spreads & margarine (-£63.7m) among the fastest falling categories, as the massive inflation in these categories over the past two years has taken its toll.
With inflation now largely under control in grocery retail, the reintroduction of branded promotions has helped stem the slump in overall branded volumes. But inflation is still having a material impact on the market.
A less obvious casualty is chocolate confectionery (+£532.6m), which actually recorded the biggest increase in value sales across the Top Products Survey. But volumes fell and most of the value gains reflect price hikes linked to soaring cocoa commodity prices, as cocoa beans futures reached an all-time high of $12,000/tonne earlier this year.
It was a similar story for Cadbury Dairy Milk (+£72.4m), where the leading chocolate brand’s strong value sales again masked lower volumes.
The cost of living crisis is likely also to blame for the decline in sales in many alcoholic drinks categories, although the government’s duty hikes have also played a part. Spirits (-£52.6m), sparkling wine (-£19.9m) and champagne (-£12.1m) all fared badly. And alcohol brands accounted for 50% of the top 10 fastest falling products, including lager brands Foster’s (-£34m) and Carling (-£22.2m) as well as the UK’s leading gin brand Gordon’s (-£21.4m).
Sales of wine (+£242.4m) performed better, although Hardys (-£41m), and Blossom Hill (-£22.7m) were some of the biggest losers overall in terms of value sales.
It was a different story in energy drinks.
Monster (+£103.6m) and Red Bull (+£84.7m) were the strongest performing brands in terms of value sales. But after enjoying stratospheric growth, following its social-media fuelled launch, sales of Prime (-£63.1m) came crashing down to earth.
The biggest overall casualty, however, was disposable vaping brand ElfBar (-£284m), amid signs that the vaping category may have passed its peak ahead of duty hikes and increased legislative restrictions. On the other hand the overall fastest growing product was SKE Crystal Bar (+£240.8m) which shows how prone to fast-moving fads the vaping category is.
The fortunes of the wrapped bread market were also highly variable. Hovis (-£37.7m) experienced the biggest downturn in sales of any food brand; while Warburtons (+£57.6m) was the biggest food brand to be in value and volume growth.
Fastest-growing grocery categories of 2024
Category
Actual growth (£ millions) in value sales
1
Chocolate
£532.6m
2
Fresh Meat
£481.3m
3
Fresh Fruit
£463.5m
4
Fresh Veg
£374m
5
Fresh Salad
£285.3m
6
Crisps & Snacks
£247.6m
7
Fresh Poultry
£247.6m
8
Eggs
£246m
9
Light Wine
£242.4m
10
Sweet Biscuits
£238.9m
Fastest-falling grocery categories of 2024
Category
Actual decline (£ millions) in value sales
1
Milk
-£223.3m
2
Toilet Tissue
-£106.2m
3
Butter, Spreads & Marge
-£63.7m
4
Spirits
-£52.6m
5
Meat-Free
-£37.1m
6
Frozen Fish
-£21.3m
7
Sparkling Wine
-£19.9m
8
Kitchen Roll
-£12.9m
9
Champagne
-£12.1m
10
Dry Pasta
-£6.8m
Rachel White, Managing Director UK & Ireland at NIQ, said, “Shopping habits have changed once again. What we are seeing in this year’s survey is a return to scratch cooking and the preparation of fresh meals.
"Perhaps this is a nod to trends in healthier living – with consumers taking the time to prepare meals together, sourcing fresh and healthy products and consuming less alcohol – but it’s also a product of the cost of living crisis, as shoppers cut back on takeaways and eating out to save money.”
National Lottery operator Allwyn is calling on retailers to make the most of its special festive draws and Scratchcards over Christmas to boost their National Lottery sales.
Allwyn’s new range of Christmas Scratchcards, which is bespoke for 2024, features two firsts for The National Lottery – a foldable £2 Christmas card with top prizes of £50,000, and a £1 gift tag Scratchcard with top prizes of £10,000.
With National Lottery Scratchcards exclusively sold in retail, Allwyn’s huge new festive Scratchcard TV advertising campaign – which sees a family at Christmas playing ‘Musical Scratchcards’ around the dinner table – is solely aimed at driving players into stores. Retailers can also tap into the campaign by suggesting a Scratchcard to customers as the perfect fun addition to festive social games and gatherings, or as a last-minute Secret Santa or Christmas gift.
Two special event draws will spread even more National Lottery festive cheer in stores in December, starting with a £15 million Lotto ‘Must Be Won’ draw on Christmas Day (25 December) – which will be supported with UK-wide advertising from 19 December. This will be followed by the EuroMillions 10 UK Millionaires special event draw on New Year’s Eve (31 December). This will guarantee 2025 starts with a bang for the 10 guaranteed lucky UK millionaires and will be supported with advertising from 26 December.
National Lottery retailers will be receiving special POS for both draws and should site this kit in prime positions to drive talkability and sales.
Earlier this year, Allwyn became a more advanced member of National Council on Problem Gambling’s (NCPG) 2024 Gift Responsibly Campaign. Founded in the early 2000s, the Gift Responsibly Campaign works to raise public awareness about the risks of youth gambling. Through partnerships with lotteries and other organisations, it educates communities about the risks of buying lottery tickets for children.
This enhanced partnership follows on from the recent introduction by Allwyn of a pioneering 10-Scratchcard limit per purchase, to help minimise any likelihood of excessive play.
“With retail being the only place customers can buy Scratchcards, National Lottery retailers will already be directly benefiting from our huge new festive advertising campaign – which shows the fun that can be had with Scratchcards at Christmas time," said Allwyn’s Director of Commercial Partnerships and Retail Sales, Alison Acquaye-Acford. "
Our special EuroMillions and Lotto draws will help further drive sales for retailers, and we suggest retailers talk to their customers about the draws to get them excited and buying tickets. This festive extravaganza will ultimately help to boost retailers’ bottom lines while at the same time helping to raise around £30 million every week for National Lottery Good Causes.”
SPAR Scotland celebrated the return of its national brand campaign, BIG Deals of Christmas, with a Christmas party which took place at SPAR Greenock on Friday 6th December.
Launched in SPAR Scotland stores in October, the campaign is supported by a national media plan, bringing the deals to life, including TV advertising on STV, in-store POS displays, digital screen promotion, social media support, and an E-Blast collaboration with the Scottish FA. A SPAR lorry specially wrapped to promote the campaign is travelling all over Scotland.
To support the launch, a special Christmas party took place at SPAR Greenock on Friday 6 December for the local community to enjoy. The well-known convenience store on South Street, Greenock has returned to SPAR following a recent modernising makeover. With a fresh perspective and exciting updates, SPAR Greenock is set to continue its legacy of providing a great range of products and excellent customer service, while introducing new offerings to better serve the needs of its local customers.
SPAR Scotland recognises the importance of supporting local communities and a £500 presentation was made to the Ardgowan Hospice and animal charity Underheugh Ark, organisations close to the hearts of the team at SPAR Greenock.
"We are incredibly grateful to SPAR for hosting their Christmas Party and support of Ardgowan Hospice," said Leonna from the Ardgowan Hospice. "Events like these not only bring moments of joy to the community but also provide vital funds that enable us to continue delivering compassionate care to those who need it most. Thank you to SPAR and everyone involved for making a meaningful difference this festive season!"
Since converting back to SPAR, the store has introduced new signage, categories and ranges, while maintaining the same high standards that SPAR store shoppers in the region will be accustomed to.
With new layouts and an expanded range introducing many new lines and the addition of a SPAR own label range, the store has also committed to supporting local suppliers, reinforcing its commitment to the community as it has been a fixture for many years.
In addition, new retail technology has been added with electronic shelf edge labels and digital screens, adding to the modern look and feel.
Paula Middleton, SPAR Scotland Head of Marketing, said: “We are delighted to have Greenock back in SPAR and to celebrate its return by providing local shoppers with a Christmas party on Friday 6th December.
“It is also a great opportunity to celebrate our BIG Deals of Christmas campaign which is all about giving our shoppers great offers and delivering value in the run-up to Christmas. Working with some of the biggest market-leading brands, ensures our stores have engaging promotions and tailored offers."
In addition to promoting the exciting deals available in SPAR stores like Greenock, SPAR Scotland is undertaking a range of community and charity-based activities to support local organisations during the holiday season.
Middleton added: “We are proud to support local communities. Over recent months, we have been involved in Christmas carol concerts in Dundee, Aberdeen, and Inverness. We have continued supporting the Bank On Us foodbank campaign with the Glasgow Times, donating SPAR mince pies and providing SPAR vouchers to Marie Curie hospices across Scotland. We have also been running a social media competition where care homes in Scotland can win a Christmas party on us. Supporting local charities at this time of year not only spreads joy to those in need but it also strengthens the bonds we are making within our community.”
Independent retailers have condemned Reach for using the festive period to try to sneak through cover price rises on its national, daily and weekly newspapers accompanied by a widespread cut in terms.
“Such penny pinching at a time that is usually associated with giving is despicable. Where is the Christmas and New Year cheer?" asked Mo Razzaq, the National President of the Federation of Independent Retailers (the Fed).
“Instead, Reach has decided to play Scrooge by taking money from the Tiny Tims of the industry who need pro rata terms to stand still.”
Mr Razzaq said: “Such actions are bang out of order. Reach and its shareholders need to understand that with their declining sales, their titles are no longer the cash cows they used to be. What’s more, news retailers are struggling. Many will be unable to survive in business, if publishers like Reach continue to accompany cover price rises with cuts to our terms.
“This must stop. Such actions are destroying the news industry.”
He added that the Fed would be seeking a meeting with Reach CEO Jim Mullen and would be writing to shareholders to express members’ fury.
Mr Razzaq said: “We need urgent talks because those at the top at Reach have to be aware that some members will be re-merchandising their shelves to put its titles at the bottom while others have already told me they will delist them completely.”
From January 4, cover prices will rise on all of Reach’s national titles – the Mirror, the Express, the Star, the Daily Record and Sunday World.
There will also be price rises for its stable of daily titles which include the Manchester Evening News, Hull Daily Mail, Newcastle Chronicle, South Wales Echo and the Birmingham Mail – as well as for its weekly titles.