During the pandemic we saw the growth of premiumisation in several categories including many foods and drinks. When stuck at home, unable to visit their favourite bars and restaurants, consumers were able to ‘treat’ themselves and boy did we need it!  In 2021 GlobalData reported that over 40% of consumers were buying premium or luxury alcoholic drinks at least occasionally.

But today a different picture is emerging. According to NielsenIQ wine, beer and spirits sales were down 21% compared to Easter last year.

And it’s a similar picture when we look at food. In 2012/13, The Trussell Trust’s figures indicated that there were 346,592 people in the UK in need of emergency food relief. Fast forward 10 years to 2022 and that figure is now over 2.1miliion people in need of 3 days of emergency food relief.

With energy prices skyrocketing from April in the UK, council tax increases and the highest inflation for 30 years there is a real challenge for brands as many households simply have less disposable income compared to this time last year. Indeed, Tesco Chairman, John Allen, has warned that the supermarket chain has seen customers asking checkout staff to stop when they reach a particular level of spend.

If this was not enough, brands are also being challenged by the rise of retailers’ own label ranges. Over the last 20 years the breadth of own label has increased dramatically covering both value and premium offerings; and frequently performing well in consumer taste tests.

So how do you protect your brand against the decrease in disposable income and the strengthening of retailers’ own label ranges?

Now, more than ever, your customers need to know and understand your brand’s value. What makes you relevant?  When should people choose you? Why are you superior to competitors?

At a time when it’s easy to look at cutting costs, it’s important to keep communicating with your consumers. Your brand needs to remain top of mind.

You need to be the brand that shoppers don’t want to comprise on and will continue to reach for over your competitors.