Heck, originally a sausage maker, recently announced its intention to roll back its newly launched plant-based meat range from 15 products to only two, saying shoppers are “not there yet”. Beyond Meat reported its fifth consecutive quarter of declining year-over-year revenue.
Nestle said in March it was removing its Garden Gourmet plant-based vegan brand from the shelves of UK stores, less than two years after it was released. Meatless Farm is the latest victim here after the Leeds-based company made its 50-strong workforce redundant last month, almost collapsing into administration. It was saved at the last-minute by VFC Foods.
Clearly, Britain's vegan market seems to be in crisis with businesses going bust and products being pulled from shelves.
Vinnie Senthi, Category Manager at THIS, blames inflation for the current slump in this category.
“Inflation has been a major issue for most consumers this year and meat-free is no different. Prices have risen across chilled meat free by 8 per cent in the 4 weeks of January YoY but crucially, this is much lower than the 16 per cent reported by Kantar in the wider grocery market,” Senthi told Asian Trader.
Senthi, however, added that shoppers are not switching out of the category as a whole, but just reducing the amount they buy.
“Positively, we are seeing the price gap between meat and meat alternatives continue to narrow, as meat was up nearly 12 per cent (vs. meat-free at 8 per cent) with the difference now just £0.13 per kg,” pointed out Senthi.
The overall plant-based category was seeing a significant growth in recent years, with consumers seeking alternatives to traditional meat products for health, ethical, and environmental reasons. The reports on demand for plant-based meat alternatives led to major investments in the sector which in turn resulted in a flood of new products on the shelves.
However, as the rise in energy, fuel and grocery bills continue to squeeze average monthly spend, this gold rush now seems to be coming to a slowdown.
Andy Shovel, co-founder of THIS, however, feels the category is in correction phase.
"There’s undoubtedly been a consolidation of plant-based brands, with retailers correcting for the over-proliferation of products which flooded the market in ’19, ’20 and ’21. They’ve now cut brands and products which delivered poor quality and low sales, leaving fewer, higher quality brands.
"Fortunately, THIS is one of the latter, with sales being 45 per cent up YoY in 2023 so far, and the brand being named as the UK’s fastest growing food or drinks brand over the last two years," Shovel told Asian Trader.
Conflicting Reports
According to a forecast report by Straits Research, the UK vegan food market is growing considerably, at a predicted compound annual growth rate (CAGR) of 9.1 percent between 2023 and 2031. Sainsbury’s, on the other hand, predicts that a quarter of the UK population will be meat-free by 2025 in its Future of Food report.
According to an estimate from GlobalData, the meat-substitutes category in the UK was valued at £561m last year in retail and is expected to reach £795m by 2026.
While these reports indicate a lucrative market of plant-based meats, the reality seems otherwise.
At the start of this year, analysis by ADHB and Kantar found that one million fewer households bought meat-free products compared to last January as Veganuary, suggesting that perhaps the most important month in the plant-based calendar also could not lure Brits towards plant-based meats.
Market research firm NIQ also found sales of meat alternatives fell in January 2023 – by 16.8 per cent year-on-year.
iStock image
All these figures seem to resonate with feedback from retailer Mos Patel, who runs two stores in Greater Manchester. He has been stocking this line for over a year now but strongly feels that this line of products is not adding any value to his store.
“We keep plant-based mince and a couple of other similar lines just for the sake of it. Honestly, I can also do away with it as it does not add much value in my sales or in footfall. Only one in four goes and that also, occasionally,” Patel told Asian Trader.
Patel, who interestingly himself is a vegan, does not seem to be much of a fan of this category.
“I think it’s hyped a lot. Only the ultra-cautious vegan people go for it. This line might be doing just okay in supermarkets but in small stores, it is not of much use,” he said.
Several other retailers denied stocking plant-based meats- one of them says “not a single customer has asked about this product”. Clearly, there is not as much demand across the country as it seems from the market reports.
Rising Cost, Losing appetite
Blaming rising costs as the major factor, experts also point out here that it is the younger generations who have been hit hardest by the economic downturn, and it is they who had helped to fuel the initial craze for plant-based meat.
A recent survey report states that most shoppers want plant-based meat alternatives to be the same price as animal-based meat and to be similarly subsidised by government.
The survey carried out by food awareness organisation, ProVeg International, has found that the likelihood of people buying plant-based foods rather than the animal-meat equivalents increases dramatically when prices of the former are cheaper as most shoppers (70 per cent) think that plant-based food is more expensive and less affordable than animal-based foods.
Clearly, comparatively higher cost is definitely playing a spoilsport here.
Jamie Keeble, co-found and sales manager of Heck Food, stated in BBC Radio 4's Today Programme in the late June that shoppers are returning to eating cheaper meats and veggie products because the “cost of vegan products is quite expensive” and shoppers are not willing to risk spending their hard-earned money on plant-based products they may not like.
He said that although there has been “so much product development” in the vegan sector, “the market hasn't really grown with it”.
“There's been a bit too much, too soon,” he said. “With everything that's going on, it's just been a bit hard to handle.”
Costs for both suppliers and retailers have “risen dramatically” since the pandemic broke out in 2020, he explained.
Keeble also argued that there is no wiggle room for retailers or suppliers to decrease their prices.
"We don't know if there's more (price rises) to come. The raw material price of pork and chicken is still very, very high and we haven't got a crystal ball. We don't know when that's going to start to go the other way.”
In his words, the businesses invested large sums into meat-free brands because they didn't want to miss the “next Google”.
While makers claim shoppers are not there yet, it is also being said that the plant-based meat products, specially from own-label line of supermarkets, failed somewhere in terms of taste and texture in their rush to launch new product lines which in turn are ironically very similar to each other, almost like “same products in different packaging”.
Senthi from THIS seems to resonate a similar sentiment when he stated that customers haven’t been able to build up a level of trust due to lot of “rebranding and reformulation in own-label".
“Surprisingly, we haven’t seen shoppers move across to own label in meat-free.
“Shoppers are increasingly searching for products with more realistic taste and flavour, but own label offerings tend to be extremely inconsistent on these two metrics, with brands offering a more reliable proposition.
“There has also been a lot of rebranding and reformulation in own label (like Asda’s OMV), which has meant that customers haven’t been able to build up a level of trust but it will be interesting to see how that evolves,” he said.
Taste, maybe not more but seemingly equally important as inflation, is proving to be a major roadblock here.
According to a research from Pilgrim’s Food Masters, owner of leading FMCG brands Richmond and Fridge Raiders, fear of the taste of plant-based foods is a barrier to more than a quarter of the UK population.
The survey report stated that although over half (52 per cent) of Brits have sampled a meat-free product, some 26 per cent said they would buy more meat-free products if they could trust that they had good quality taste and texture.
“Dialing up taste in store is extremely important, meat-free has a history of being the bland younger brother of meat and this isn’t helped by in-store POS which doesn’t signal taste at all. In order to drive penetration in the category we really need to dial up taste at the fixture to show shoppers that there is no longer a compromise when eating meat-free,” Senthi said.
THIS, after its recent funding round of £15 million, is the ninth biggest meat-free brand in the U.K. This Isn’t Streaky Bacon, the latest product, is rising charts in popularity and is counted as one of best-selling plant-based bacons.
Senthi further added how retailers are removing non-performing SKUs.
“Too many shoppers have tried meat alternatives which don’t have a taste or texture that is anywhere near the real thing, and this puts shoppers off trying meat free again.
“Retailers are rightly removing these SKUs to allow more room for the more realistic SKUs so the big opportunity will be driving penetration again with meat reducers and flexitarians who have lapsed from the category,” he said.
Retailer Patel too stated on the same lines when he told Asian Trader how local convenience stores have two to three freezers and products that don’t move much occupies unnecessary space “which we can’t afford to give".
Additionally, some consumers are also apprehensive about making eating plant-based meats a regular part of their routine as they believe the vegetable content will provide fibre and protein but not necessarily the equivalent nutrients in vitamins and minerals.
What now?
In the current cost of living crisis, it is vital to not only keep up with competition on the pricing of products, but to also give customers value for their money. Consumers will naturally look for cheaper products that are the same or better. And they won’t compromise on taste for long.
On the other hand, both manufacturers and retailers need to know this segment and the shoppers’ requirements more closely to tap this market properly.
As Senthi from THIS puts it, this segment is “at a crossroads in terms of the best way to merchandise the category” to drive penetration and growth.
“Many retailers have trialed merchandising by need-state (ie moving all Chicken SKUs together), however we have seen that this is actually detrimental for the category with declines in ROS.
“We’ve heard firsthand from consumers that this makes the fixture too hard to shop and they find it easier to find products by brand, which has seen retailers like Morrisons revert to brand blocking, in a bid to make it easier for new shoppers.
Some retailers are also moving the fixture closer to the meat aisle so it would be interesting to see if that becomes the norm or if plant-based solidifies its position across all alternatives (milks, meats, cheeses) to warrant an aisle of its own,” Senthi told Asian Trader.
The UK plant-based meats market is seeing, if not a roadblock, then definitely a speed breaker. However, looking beyond current stagnation, experts are pinning hopes on “plant-based 2.0”- a second wave riding on the innovation in the likes of pea protein, and even lab-grown meats.
Shovel from THIS too is seemingly optimistic about this category's movement.
"So whilst we’ve loved to hate plant-based food this month, the transition isn’t looking like it’s going anywhere. The number of meat-reducers, flexitarians, vegetarians and vegans are significantly up in the UK vs 2019 (as is our brand penetration amongst all of these consumer groups), and we’re not seeing any reduction in total shelf-space for the category," he told Asian Trader, adding "down with porkies and long-live peas and prosperity".
In a nutshell, it might still be unfair to say that it is the end of a fad as this is a very nascent market which is bound to undergo corrections. However, with a string of high-profile closures and pull-outs, there definitely seems to be a deflection in this comparatively new and still-developing segment. Only time will tell whether it makes progress or regresses.
Snacking giant pladis has announced David Murray, currently leader of its UK and Ireland enterprise, will transition to the newly created position of global chief commercial officer.
After five years at the helm of pladis UK&I, Murray’s new role will see him take ownership of the company’s global platform and brand strategy along with its commercial transformation.
Mete Buyurgan will become the new managing director of pladis across Britain and Ireland effective 6 April.
Buyurgan, a pladis veteran of eight years, joins the Anglo-Irish division of the company from its Turkish, Eastern Europe and Central Asian operations which he ran since 2016.
Under his stewardship, pladis Türkiye, Eastern Europe and Central Asia grew revenue and profit despite significant headwinds and positioned itself at the forefront of the sustainability debate.
“While our brands like McVitie’s and Ülker have been part of peoples’ lives for decades, pladis is still a young business having started life nine years ago,” Geraldine Fraser, chief human resources officer, said.
“We have made tremendous progress together on our mission to build one of the world’s fastest growing snacks companies. Today, we take another step on that journey to evolve our business and position us for continued growth in an ever-changing retail and consumer landscape.”
Founded in 2016, pladis’ 16,000-strong team makes food across 27 bakeries and factories in 11 countries with its brands, like McVitie’s, Ülker and Flipz sold in more than 110 nations. pladis group revenue topped £2.7 billion in its most recent financial year ending 2023.
More than £20,000 worth of illicit tobacco and vapes were seized from multiple premises in an one-day operation in Meir by Trading Standards team along with officers from Stoke-on-Trent City Council and Staffordshire Police.
The operation is the latest across the city that resulted in 13 shops being closed in the last 12 months, and forms part of Operation Cece, which is a National Trading Standards initiative in Partnership with HMRC to tackle illegal tobacco.
Under the latest one day action, officers raided three shops in the area after reports of underage sales of illegal vapes and tobacco to children as young as 12.
The significant operation seized 1,084 packets of cigarettes, over 1,500 vapes and 165 large pouches of rolling tobacco.
The retail value was estimated at more than £20,000, plus more than £12,000 in evaded duty. Officers also seized 12 key rings that were either unsafe or had trademark issues.
Several people with no right to work in the UK, and other immigration issues, were found and their cases passed to the Home Office.
Councillor Amjid Wazir OBE, Stoke-on-Trent City Council’s cabinet member for city pride, enforcement and sustainability - said, “We will not tolerate the sale of illegal tobacco and vapes, which put residents at risk and cheat the taxpayer out of public money.
“Our Trading Standards teams are working round the clock to get illegal tobacco and vapes off the streets, and out of the hands of children. All forming part of corporate strategy and specifically helping to reclaim our streets.
Inspector Rebecca Price, from the Stoke South local policing team, said, “We’re working closely with the city council and wider partners in Stoke-on-Trent to tackle issues affecting local communities as part of our ongoing Making Great Places initiative.
“Retailers not complying with the law and putting local people at risk of harm are being targeted robustly on a proactive basis as part of this commitment, and I can assure local communities that similar enforcement alongside our colleagues will continue.”
The premises are now under investigation, and are facing possible criminal prosecutions including under the Licensing Act.
The Trading Standards work forms part of the city council mission to be a cleaner, greener and safer city for all who live, work and visit Stoke-on-Trent.
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Don Julio Tequila, owned by Diageo. The spirits giant sells billions of dollars worth of tequila and Canadian whisky in the US.
Photo by Anna Webber/Getty Images for Flipper's Boogie Palace
Spirits giant Diageo has suggested the US government consider tougher rules of origin requirements in trade agreements as an alternative to tariffs, a letter to the US Trade Representative showed.
In the March 11 letter, Diageo, the world's top spirits maker caught in the crossfire of US president Donald Trump's effort to remake global trade, argued that new rules of origin could support his aims and benefit the industry.
Such rules could give preference to goods, including alcoholic drinks, in which all ingredients and subcomponents are substantially sourced within the US or via its key trading partners, Alden Schacher, vice president of government relations at Diageo North America wrote.
This would deepen US supply chains, prevent "foreign adversaries" from using US trade partners to circumvent tariffs and support the administration's policy objectives such as growing the US economy, said the letter, one of hundreds published by the USTR from firms and trade associations about tariffs.
Diageo's proposed rules of origin would require that plants or grains used in the production of imported alcohol come from the US or the territory of a strategic trade partner - any country that has a trade agreement with the US, such as Mexico and Canada.
The company also suggested that the rules ensure the distillation also occurs in the US or the territory of the same partner, with any barrels used in ageing also sourced from one of those places.
Diageo sells billions of dollars worth of tequila and Canadian whisky in the United States. Executives have warned Trump's threatened 25 per cent tariffs on Mexico and Canada could deal a $200 million hit to operating profit in the company's second half alone, before mitigation measures.
In the letter, Schacher wrote that trade in distilled spirits is largely reciprocal and therefore actions to address imbalances are not necessary.
Schacher pointed out that Diageo employs thousands of US workers, has 11 US manufacturing sites, and spends $650 million every year on US inputs including barrels, glass and cans.
(Reuters)
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Asda Express stores offset sales dip at the supermarket
Asda on Friday reported a decline in its annual sales for the 2024 financial year, but the retailer has seen profits rising on margin gains.
The supermarket chain said its total revenue for the year to 31 December 2024 declined by 0.8 per cent to £21.7 billion, while like-for-like sales (excluding fuel) were lower by 3.4 per cent.
Asda grew adjusted EBITDA after rent by 5.8 per cent to £1.14bn during the year, driven by improved gross margins, particularly in non-food reflecting the strength and scale of its George business, as well as a full year of profit from the 356 Asda Express convenience stores and forecourt sites acquired from EG Group.
“Everyone is focused on making Asda the number one choice again for busy hard-working families who demand value. This is what’s driving all of our actions across pricing, ranging, merchandising and every part of the business,” Allan Leighton, Asda’s executive chairman, said.
Since the year end, Asda stepped up its investment in value by bringing back its Rollback to Asda Price proposition. Launched at the end of January, with an average reduction of 25 per cent across 4,000 popular products, Rollback has now been expanded to roughly a quarter of Asda’s entire range.
Asda said it will add thousands more products to Rollback at regular intervals during the year as part of its strategic shift to move its entire product range to a new low ‘Asda Price’ by the end of 2026.
Asda delivered £0.6bn in free cashflow during FY24, which helped reduce net leverage to 2.9x (FY23: 3.0x). The retailer said this enables it to invest in new value propositions like Rollback and Asda Price.
During the year Asda refinanced the vast majority of its 2025 and 2026 maturities of £3.2bn, including paying down £0.3bn from cash. This pushed out all the remaining maturities into the next decade.
“Looking ahead we still have plenty of work to get our business firing on all cylinders again,” Leighton said.
“While regaining customers’ trust will take time, we will undertake a substantive and well backed programme of investment in price, availability and the shopping experience to deliver this. This will materially reduce our profitability this year, which we expect to reverse as our market share recovers and improves over time.”
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Henry Westons Vintage 500ml is the number one cider SKU in the convenience channel
The unstoppable rise of crafted apple cider is setting the benchmark for success in the UK’s £1.1 billion off-trade cider market, according to the latest Westons Cider Report.
The leading cider producer advises that convenience retailers who prioritise premium products and strategic ranging will be best placed to drive sales in 2025.
Despite crafted cider thriving across the broader market, its share in convenience still lags slightly behind (20% vs. 24%). This gap presents an exciting opportunity for convenience retailers to tap into the premium crafted cider trend and unlock significant revenue.
Westons Cider’s milestone report reveals that, while total cider sales have edged up by just 0.1 per cent YOY, crafted cider is experiencing remarkable growth with a significant 14.6 per cent surge in convenience alone.
As consumers increasingly seek authenticity, quality, and heritage, premium crafted ciders are becoming essential for retailers eager to drive long-term success.
A decade of transformation in cider
Westons Cider predicted the rise of crafted cider in 2018 and, seven years on, the numbers prove just how transformative this shift has been. Back then, crafted cider made up just 9 per cent of apple cider sales — today, it accounts for nearly a quarter of the total cider market, adding an impressive £26.3 million to the category in the past year alone.
While the overall cider category has edged forward (+0.1%), crafted cider has surged ahead, growing at ten times (11.1%) the rate of the total market. This unwavering momentum cements crafted cider’s place as the fastest-growing segment in the industry.
This shift reflects a fundamental change in consumer preferences. A decade ago, cider was a broader, more fragmented category, featuring more brands and greater variety. Today, the focus has shifted — fewer brands, stronger premium offerings, and an emphasis on quality over quantity.
Crafted cider: A major untapped opportunity in convenience
Despite commanding a premium price of £4.32 per litre in convenience, compared to £2.76 for the total category, crafted cider remains underrepresented in this channel, with distribution at 95.4 per cent compared to 98.4 per cent across the total market. Bridging this gap could unlock an impressive £3.7m in value sales.
Even with limited shelf space, crafted cider continues to show a solid 5.8 per cent YOY growth, highlighting a strong and growing consumer appetite for high-quality options.
“Shoppers are looking for premium cider options in convenience, and retailers who give crafted cider the prominence it deserves will reap the rewards,” said Tim Williams, insight and innovation manager at Westons Cider.
“With crafted cider delivering strong margins and demonstrating double-digit growth, giving it prime position in chillers and on shelves will drive greater profits. The demand is already there – retailers just need to back the right brands.”
Key growth opportunities for 2025
The opportunity to recruit younger drinkers is ripe for the taking. While cider remains a household staple, penetration has slipped to 40.9 per cent, down from 43.9 per cent in 2022, showing that the category must evolve to stay relevant.
However, younger shoppers, particularly those under 45, are actively trading up to premium drinks, making crafted cider an aspirational yet accessible choice. Crafted cider is already gaining traction with affluent consumers, with ABC1 shoppers now accounting for 65.8 per cent of spend — up from 61 per cent last year.
Notably, crafted cider has the highest proportion of younger shoppers, with under-45s making up a larger share of spend compared to any other cider segment. This clear shift towards quality and authenticity presents a huge opportunity for convenience retailers to refresh their cider range and attract a new wave of consumers.
Apple cider remains the core of the category
Apple cider remains the core of the category. Accounting for nearly two-thirds (63.7%) of market value, apple cider continues to dominate. While pear cider’s overall share remains small at 4 per cent, premium crafted pear ciders are seeing renewed interest. Henry Westons Vintage Pear has added £550,000 in sales over the last year, alongside growth in other premium pear offerings. This suggests a clear opportunity for retailers to premiumise the pear cider segment, tapping into the same consumer demand that has propelled crafted apple ciders to success.
With limited chiller space in convenience, ensuring crafted apple cider has adequate facings is crucial to maximising sales. Stocking the right mix of single-serve formats for impulse purchases and larger multipacks for planned consumption will help capitalise on both shopper missions.
Shoppers are trading up across the drinks aisle, and cider is no exception. The crafted cider segment’s growth of over 10 per cent highlights the increasing willingness of consumers to pay more for quality, taste, and heritage. Convenience retailers who prioritise premium SKUs stand to gain the most from this trend.
Convenience category spotlights:
Crafted cider’s Southern stronghold: Crafted cider is particularly strong in the South, accounting for 73 per cent of volume in the five most southern TV regions. Convenience retailers in these areas should allocate more shelf space to premium crafted options to maximise sales.
British weather may be unpredictable, but cider sales don’t have to be: While summer remains cider’s peak season, unpredictable British weather has led to inconsistent sales patterns in recent years. June 2024 was unseasonably cool, leading to a 20.5 per cent drop in cider volume sales YOY, while August saw more rainfall than previous years, pushing volume down 12.5 per cent versus 2022. However, sales rebounded slightly compared to August 2023, which had particularly poor weather. Given this volatility, retailers should double down on major selling moments — like bank holidays and sporting events — where demand remains strong regardless of weather conditions.
No & low is pouring into the mainstream: The segment has grown 8.4 per cent YOY, highlighting increasing moderation trends. Stocking low/no alcohol apple and fruit ciders ensures a complete range to meet evolving consumer needs.
Independent retailers are outperforming the market: While total convenience cider value is up 2.1 per cent YOY, independent retailers are growing even faster, at 4.4 per cent YOY. This shows a particularly strong opportunity for crafted cider, which still holds only 17 per cent share in independents versus 20 per cent across total convenience. There is clear potential for independent retailers to expand their crafted cider offering and close this gap.
“As Westons celebrates 145 years of cider-making, it’s remarkable to reflect on how much the category has evolved,” Darryl Hinksman, head of business development at Westons Cider, said.
“What’s also clear is that authenticity and provenance matter more than ever. The past decade has seen major brewers attempt to capitalise on cider’s popularity with brand extensions, yet these failed to resonate with consumers in the long term. This reinforces a key lesson — shoppers are looking for genuine cider brands with real heritage, not just big names entering the category.
“Looking ahead to the next decade, we expect this refinement to continue, with cider becoming even more premium-driven. Shoppers are actively seeking authentic, high-quality options, and convenience retailers who align their ranges with these consumer trends and prioritise best-selling premium ciders, like Henry Westons and Stowford Press, will be the ones to unlock growth and maximise their cider sales.”
Top ten cider SKUs in the convenience channelWestons Cider Report
Henry Westons Vintage 500ml is the number one SKU in the convenience channel, more than twice the size of the second-placed product and in strong growth (+8.2%). Thatchers Gold 500mlx4 was ranked eighth last year and has risen to second. Inch’s is new to the top ten this year in eighth place.
Pack sizes are smaller in this channel with singles and four packs dominating the top ten. Larger packs have a role, however, as Strongbow Dark Fruit 10 pack is the third highest ranked pack.
The full report – including impartial stocking advice for retailers – is also available for digital download here.
All data Westons Cider Report 2025, Circana 52 w/e 28 December 2024 and Kantar, 24 December 2024.