Sweet Spreads in Belgium

PROSPECTS

Weak performance overall as consumers lose interest in traditional sweet spreads

Sweet spreads continued to experience stagnating demand in 2019, due to the weak performances of the two largest categories, chocolate spreads, and jams and preserves, although current value sales were supported by growing premiumisation. Many Belgians who would traditionally consume jams and preserves with bread for breakfast are increasingly turning to muesli or granola as healthier options.

Honey continues to benefit from healthy image but farmer’s markets are barrier to greater potential

Honey continued to record stable demand in 2019, benefiting from a healthy image. Honey is also gaining in popularity as a natural alternative to sugar and as a cooking ingredient.

Strongest performance for niche of nut and seed based spreads

The niche of nut and seed based spreads continued to record the fastest current value growth in Belgium in 2019, due to the popularity of products such as peanut butter. The latter benefits from the exotic food trend and is increasingly used to cook more adventurous dishes.

COMPETITIVE LANDSCAPE

Declining share for main brands due to growing pressure from private label

Ferrero Ardennes retained its lead of sweet spreads in 2019 in Belgium offering its chocolate spreads brand Nutella. However, in line with stagnating demand for chocolate spreads due to the link to palm oil usage (regardless of sustainability), Nutella recorded a decline in value share and sales.

Smaller niche players offer premium products but struggle to gain mainstream distribution

The rising health trend in Belgium along with premiumisation offers smaller players the chance to attract consumers through differentiation and value share. With interest in chocolate spreads beginning to stagnate, players such as local specialist Damhert with its Tagatesse chocolate spread or the premium Belgian biscuit brand Jules Destrooper with its Speculoos spread are gaining attention.

Discounters attempt to offer differentiation within premium private label ranges

Private label retailers are progressively expanding their ranges of sweet spreads with discounters Lidl and Aldi becoming increasingly active in jams and spreads in an attempt to add a degree of premiumisation through higher fruit content such as Maribel Extra by Lidl (60% fruit content), and Aldi’s Tamara (55% fruit content), while the latter retailer also offers an organic jam range through Maribel called Bon et Bio, which is placing further pressure on leading brands such as Materne. Honey also includes a high share of private label lines such as Carrefour which offers an organic range, while leading brand Meli focuses on offering sustainable French-produced honey, ground in traditional beekeeping techniques; it therefore has one of the highest price points in the category.

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