The new study comes after Procter and Gamble (P&G), Unilever and Mondelez all admitted they are cutting down on promotional activity.
FMCG brands in the UK are increasingly shunning price promotions in favour of focusing on brand building through advertising, IRI data has suggested.
The study, which looks into the use of promotions by FMCG manufacturers and retailers across Europe, highlights a drop in the proportion of volume sales of FMCG products that were sold on promotion in the UK in the latest year.
The UK sells more FMCG products on promotion than anywhere else in Europe, with 49.8% of all food products and 58.6% of all non-food products sold on promotion. In the latest year, according to IRI, this has declined by 2.6 share points to an overall average of 51.5%. Across Europe, the proportion of all grocery volume sold on promotion is also down by 0.7 points in the last year to 28.1% of all sales.
Tim Eales, strategic insight director at IRI UK and author of the study, says this stands out as the “biggest” change it has seen and marks “a complete change in direction”.
The report also shows the number of brands using multi-buy promotions dropped from 15% to 12% of all products sold, driven by Sainsbury’s decision to stop running them in its stores this year. Multi-buys are most popular with non-alcoholic drinks brands and personal care brands, where 24.8% and 16.5% are sold with a multi-buy promotion respectively.
Bron en volledig bericht: MarketingWeek