FMCG News: Vertex Resourcing's Weekly FMCG Roundup.

September 17, 2021

In todays FMCG news roundup, we see what impact a no-deal Brexit could have on Tesco's stocks, how low alcohol alternatives are still looking good in terms of sales and how Tesco and Morrisons will not be shutting this Boxing Day. Enjoy!

No deal Brexit fears lead to Tesco stockpiling

The UK's Shoppers face temporary shortages of some fresh foods and higher prices if the UK fails to strike a Brexit deal with the EU, the chairman of Tesco has warned.

John Allan said a no-deal Brexit would trigger tariffs, ˜which can be quite substantial on some food items'. Doesn't sound good, does it?

The chairman of Britain's biggest supermarket warned that the end of the transition period could trigger temporary disruption of food imports and lead to gaps on supermarket shelves, although he urged shoppers not to panic-buy.

British ports have become congested and are struggling to cope with the simultaneous pressures of arrivals of Christmas goods, Brexit stockpiling, and coronavirus restrictions.

Price increases faced by British shoppers in the event of a no-deal Brexit would be determined by how much imported food they put in their baskets, Allan said, estimating an average cost increase of 3%-5%.

Low Alcohol alternatives are still on the rise during the pandemic

New research from Lumina Intelligence shows 38% of consumers have reduced their alcohol consumption since the pandemic began in March.

This rises to 42% for 18“24-year-olds and 46% for 25-34s, with health (31%) the main motivation for consumers choosing ˜Low 2 No' alcohol options.

Meanwhile, 25% said variety was behind they shift to Low 2 No (L2N) drinks with people wanting to try something new.

17% claimed it was because L2N is easy to consume at home, whilst 14% said such drinks were a cheaper option to alcohol.

When broken down by age group, 18-24s are 14% more likely to choose health as a key reason than the average consumer, followed by 35-44's (7% more likely).

The 18-24's are also 51% more likely to be put off by price and therefore consume L2N as it is a cheaper drink option.

Variety is a key motivation for shoppers under 44, with these shoppers more likely to consume Low 2 No because they want to ˜try something new'.

Tesco and Morrisons are not going to shut on Boxing Day

Tesco and Morrisons will open their shops on Boxing Day despite demands to give staff the day off.

Unions have stated that supermarket staff should not have to go in on the 26th of December as a thank you for their work during the pandemic

ASDA, Marks & Spencer, Pets at Home, and toy store The Entertainer have all said they will close.

But Tesco and Morrisons have joined Sainsbury's in saying they would open on Boxing Day for a limited number of hours.

Tesco said it would reward frontline staff with an extra 10% bonus over the Christmas and New Year period.

Morrisons said that working on the day would be voluntary with staff getting double pay.

Sainsbury's will open but has reduced the hours after requests from staff who said most workers would much prefer have Boxing Day off. Understandable.

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