Monday, August 4th, 2014

Start spreading the news: supermarket brands have made their mark in the margarine market, where they currently rank third (after traditional favourites Flora and Meadow Lea) among Australia’s grocery buyers. However, grocery buyers from higher-income households are not sold on it, the latest findings from Roy Morgan Research reveal.

In the year to March 2014, 52% of grocery buyers bought margarine in an average four-week period. Grocery buyers in households earning less than $60,000 were more likely to buy margarine (59%) than those in households earning $60,000 to $120,000 (51%) and $120,000 or more (48%).

Global giant Flora and Aussie institution Meadow Lea are the top brands, with 16% and 11% of grocery buyers respectively purchasing them in an average four weeks. Supermarket brands are third most popular, purchased by 9% of grocery shoppers. While Flora and Meadow Lea are popular across income groups, supermarket brands are markedly less popular among the highest household income group.

Twelve percent of grocery buyers in households earning under $60,000 per year bought supermarket brand margarine in an average four-week period, compared to 10% of those in households earning $60,000 to $120,000, and 6% of those in households earning $120,000 or more.

Margarine brands bought by household income groups


Source: Roy Morgan Single Source (Australia), April 2013 – March 2014, n=13,605

Angela Smith, Group Account Manager - Consumer Products, Roy Morgan Research, says:

“Supermarket brands have earned a place in the Australian shopper’s basket for a large number of food items, and margarine is no exception. Though our data doesn’t tell us the reason for the popularity of supermarket brand margarine, it could very well be due to their lower price — as indicated by their high penetration among low-income groups. Shoppers from higher-income households tend to prefer butter (which tends to be more expensive).

“However, income groups are broad categories and Roy Morgan’s ground-breaking new profiling tool, Helix Personas, can assist marketers to refine their search for a more targeted market.
"For instance, personas such as Rural TraditionalistsStrugglestreetReal Working Class and Fringe Dwellers are far more likely than the average Australian grocery-shopper to buy supermarket brand margarine in any given four-week period. Usually retired, unemployed or working in low-paying jobs, these personas live in blue-collar suburbs or regional areas, and do what they can to make their limited budget stretch further.
On the other hand, those in more affluent areas, such as confident BluechipsHumanitarians and Progressive Thinkers, are less likely to buy supermarket brand margarine. Whether they’re young or mature, these individuals enjoy the finer things in life, dine out often and tend not to deny themselves luxuries.”

Read this release in full on our website.

Contact Profile

Roy Morgan Research

Roy Morgan Research is Australia's best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
Samantha Wilson
P: (03) 9224 5268


FMCG, supermarkets, home brand, margarine, butter, flora, meadowlea




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