Boosted in part by inflation, dollar sales in the dairy department climbed by double digits in June.
Dairy category sales totaled just under $5.1 billion for the month, up 16.3% year over year, the International Dairy Deli Bakery Association (IDDBA) reported in its June marketplace update, based on IRI Total U.S. Integrated Fresh data from the multi-outlet retail channel. Unit sales, however, declined 2.4% from a year ago.
“The four June weeks generated a little over $5 billion in dairy sales, an increase of 16.3% year on year,” Jessica Ives, professional development coordinator at IDDBA, stated in the report. “The consistency of the weekly sales levels, all at least $1.2 billion, is encouraging, as it means demand is holding strong — certainly when compared to pre-pandemic levels. The biggest week was the week leading up to Father’s Day, with weekly sales of $1.3 billion.”
By dollar sales, the top 10 gainers among dairy products in June were eggs (+49.9% year over year); butter/margarine (+20.9%); cream cheese (+18%); sour cream (+17.2%); milk (+14.3%); cream/creamers (+13.7%); whipped toppings (+12.6%); cottage cheese (+11.3%); and natural cheese, yogurt and processed cheese all at +11%. The only down segments by dollars were dairy alternative cheese (-6%) and cheese snack kits (-3.2%).
Price hikes hoisted dairy dollar sales in June. The average price per unit came in at $3.43 for the month, up 19.2% from a year earlier. That marked an uptick from price-per-unit increases of 12.7% in the 2022 first quarter and 17.1% in the second quarter — and remained well above the 2.7% average gain for 2021.
“On a per unit basis, deli inflation was right around the total average price increase seen across total food and beverages. Bakery — covering both in-aisle and perimeter baked goods — and dairy inflation were above average in June 2022 versus year ago,” Roerink observed.
The food-at-home Consumer Price Index (CPI) for June surged by 12.2% year over year, vaulting the 11.9% gain in May and marking the largest 12-month increase since the period through April 1979, according to the U.S. Bureau of Labor Statistics (BLS).
All six major grocery store food group indices rose over the 12-month span through June, with five of the six up more than 10%, BLS reported. The index for dairy and related products climbed 13.5% (unadjusted), exceeded only by other food-at-home (+14.4%) and cereals and bakery products (+13.8%).
Three of the four dairy subsegments saw double-digit inflation growth in the year through June, led by milk at 16.4% (17.1% for fresh whole milk), other dairy and related products at 15.9%, and ice cream and related products at 12.5%. Cheese and related product prices rose 9.7% year over year.
On a seasonally adjusted basis, dairy and related product pricing was up 1.7% month over month for June, reflecting upticks of 0.8% for milk (0.1% for fresh whole milk), 1% for cheese and related products, 4% for ice cream and related products, and 1.9% for other dairy and related products.
