Unilever has struggled to maintain its fourth-quarter grocery market share as shoppers opt to buy cheaper own brands
The FMCG giant’s European market share in food slumped by 160 basis points, while in household and personal goods dropped by 52 basis points, in the month to 3 December. In the ice cream category, share fell by 141 basis points, while mayonnaise declined by 374 basis points, reported Reuters.
The news follows price rises by Unilever, whose popular brands include Ben & Jerry’s, Hellmann’s and Dove, in the face of rising operating costs.
Unilever’s underlying price growth peaked at 13.3% in the fourth quarter of 2022, but has eased slightly over the last year, rising 5.3% in the third quarter of 2023.
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Data provided published by NeilsenIQ, showed private label food sales rose by 16% in the two years to March 2022.
Unilever CEO Hein Schumacher responded to questions about how the company could win back market share from private label brands and competitors.
“We’re not in the game of just simply stealing share. For us, priority number one is to make the market and, therefore, to develop the market and enlarge the categories.”
Earlier this week, Unilever’s big competitor P&G flagged that price increases at the group would slow over the next six months.
