Quick to market Bega block drives value growth

Quick to market Bega block drives value growth

Household budgets remain tight. It’s resulted in changing purchasing behaviour where consumers now seek value wherever possible. We’ve been proactive in addressing these challenges, developing solutions that address new consumer needs thanks to our deep understanding of shopper behaviour.
 

Backed by a dedicated insights team, we’ve been analysing data and trends that leverage our expertise to innovate and meet changing shopper needs, while maintaining our category share of the dairy shelf.
 

A recent example is the new 750g block of Bega cheese. This new product was in direct response to consumers motivated by unit cost (a price per standard unit of measurement), rather than absolute price – those looking to save money by buying larger bulk value size.
 

Realising that value means something different to everyone, our new Bega 750g block is an example of a quick to market innovation that adds value growth to our business by jumping on a trending shopper behaviour and capitalising on the strength of our brands – at pace.
 

Despite shifting behaviour to private label and cheaper products, Bega remains Australia’s #1 cheese brand, found in over one in two households.
 

By creating a larger block size for the value-conscious shopper, we’ve met the needs of a shopper looking for a trusted brand, a high-quality product, and good value. Not only that, but new shoppers are entering the block category for the first time to purchase this product, alongside shoppers switching from other competing products.
 

The results have contributed directly to our bottom line, with the new block generating 75 per cent of volume incremental to Bega’s block portfolio, attracting new customers to the category and growing Bega’s sales volume.
 

Product innovation helps to maintain Bega’s #1 position in the everyday block category, where it holds a 23 per cent share. To break it down further, that means a block of Bega is sold every 2.5 seconds in Australia.
 

Our ability to adapt and shift to changing market conditions is one of our business strengths. This was seen in our FY24 Interim Results, which saw value growth across our entire Consumer brands portfolio with new product ranging across Bega, Mainland and private label contracts.
 

If you’d like to know more about our brands and their performance, reach out to your Area Manager for more information. 
 

Our Bega product range includes blocks, grated packs, slices, and snacking. Fonterra has exclusive rights to the Bega brand in Australia for cheddar cheese products.  

Data source: Quantium Data to 27/2/24; Nielsen RMS data to 26/MAR/24