Page 10 - Australian Pork Newspaper
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Consumers stocking up on home supplies drives strong retail sales
Marketing Matters
IT is no surprise retail sales have seen incred- ible growth since March, driven by consumers stocking up on home supplies in line with COVID-19 restrictions around the country.
APL’s foodservice tracker, which gauges Australian consumer activity, shows the per- centage of people eating out of home – for either lunch or dinner on a given day – dropped from around 29 percent before March to as low as 16 percent in April.
changing environment they were operating in.
we expect the structure of the industry to be sig- nificantly changed in the months to come.
take-away or delivered. During lockdown this changed dramatically, and in the most recent quarter we’ve noticed the trend settle, with around two-thirds of meals being
Volume growth of fresh pork in retail on average for the six months since March has been 18 per- cent higher compared to the same period in 2019.
During that challenging time, the pork industry supported its ongoing relationship with food- service businesses, in- cluding through APL’s ‘Hospo4Hospo’ initiative, which provided free pork meals to out-of-work hos- pitality staff.
Unsurprisingly, Victoria experienced a decline in August as its citizens re- entered lockdown, and NSW also recorded a rela- tively weak month.
We have seen a return to support for restaurants in the most recent quarter, however it is typical for customers to trade-down in a recession, so we may see more of this in the coming year.
of delivery apps.
UberEats is the largest
The most recent monthly results showed fresh pork was maintaining strong growth at 14 percent above the previous year, which is almost double fresh meat growth of 8 percent, and despite re- strictions in most states easing considerably.
ents and smaller chains, with IGA and non-super- markets seeing growth in fresh meat, which is ahead of the results for Coles and Woolworths.
cent in the most recent reporting period.
There were strong re- coveries in the other states where COVID-19 restric- tions had eased consider- ably, with Western Aus- tralia and Queensland both recording over 30 percent of people eating out on any given day in August.
Consequently, our food- service team are actively engaging more with QSR chains and opportunities for Australian pork in this space.
player in this space having been used by 47 percent of our respondents, and Menulog a distant second, with 16 percent using the service as their most re- cent delivery method.
Surprisingly, the in- dustry has been relatively resilient, with meals eaten out of home rebounding to around 27 percent nation- ally in August.
The types of venues that have done well through this period are fast food and quick service restau- rants.
take-away or delivery. Delivery is taking an in- creasing share with the rise
The uptick in grocery sales has been particu- larly strong for independ-
We have also seen sig- nificant increases in Aldi, with 24 percent volume growth in pork in the past six months, and 36 per-
The hospitality in- dustry on the other hand has experienced consid- erable headwinds, with the reduction in tourism spending and would-be customers eating the ma- jority of their meals at home.
The APL foodservice team also engaged with Restaurant & Catering Australia, providing our market data to help res- taurants understand the
Though we’re seeing recoveries and support of the restaurant sector,
Prior to COVID-19, foodservice was evenly split between eating at a venue and getting a meal
For those with business interests in out-of-home seeking further informa- tion, contact Esther Volpe at Esther.Volpe@australi
VIC and NSW have both seen a dip in the OOHM rate this month. QLD has recorded a notable lift, while SA has continued to trend upwards. The OOHM rate in WA has also improved in August. * All figures are calculated based on most recent lunch or dinner – a representation of Australians’ meal activity on a day-to-day basis. Monthly periods shown.
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Page 10 – Australian Pork Newspaper, October 2020

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