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14 December 2020

Dropped in Food Industry


Despite the pandemic causing uncertainty and chaos for some sectors, the food industry, however, has seen new records for November as consumers hope for a better end to the year.

According to the BBC news, the lockdown has encouraged people to complete their Christmas shopping extra early this year, which includes everything from a sharing box of chocolates to the pigs in blankets.

Because the national lockdown rules meant wining and dining was out of bounds, a massive £10.9bn was spent on food shopping instead. Kantar, a market research firm, also found sales of traditional Christmas food (such as turkeys) significantly increased as people said they were determined to make this the “best Christmas ever after a tough 2020”.

In fact, “sales of turkeys, both whole birds and ready-to-roast joints are up by 36% on last year, while more than £11m was spent on Christmas puddings” says Fraser McKevitt, Head of Retail and Consumer Insight and Kantar.

From small food manufacturers to giant online grocers, businesses are seeing a climb in their sales, with Ocado increasing by 38% and Iceland by 21% compared to 2019.

However, because shoppers aren’t able to share sweet treats with friends and family this year, mince pie sales have dropped by 8%.

Mike Watkins, Head of Retailer and Business Insight for Nielsen UK adds: “With the peak Christmas period fast approaching, there are limited opportunities for shoppers to entertain this year and any gatherings that do take place will be smaller.

We can see that shoppers are preparing for this where they can – buying packaged groceries, alcohol and frozen food – and many have planned their online orders early.”

Because consumers are getting ahead on the festive treats to make this Christmas one to remember, will December sales continue to rise or see a steady drop?

And more importantly, with such rapid changes in consumer demands, how do you know when to respond and how?

To help you better understand, adapt and keep up with the ever-evolving wants and needs of your customers, you will need an integrated ERP software that automatically delivers these insights. With Dynamics Food, you can easily monitor and adapt to consumer demands to ensure you are always one step ahead of your competitors.

Why not join Tecman in the upcoming 2021 Workshop: ‘Does your business system make Christmas in the Food industry a nightmare?’ to explore a new, more effective, and up-to-date way of running your operations – both for Christmas and all year round.

Click here to book your place today.