MÃ¼ller Dairies UK is making determined attempts to take on private-label rivals as it struggles to stem declining market share.
In 2003, the MÃ¼ller brand had 30.2 per cent of the market by value, but by last August it had slipped to 25.5 per cent. According to AC Nielsen, the adult yoghurt market grew by 5.6 per cent in the year to January 22. The MÃ¼ller Corner brand grew by four per cent over that period, but MÃ¼llerlight sales fell by 5.5 per cent.
Observers say MÃ¼ller lost share to own-label yoghurts last year and is preparing to fight back by slashing prices on key brands. It is understood that promotions will include deals such as three MÃ¼llerlight, MÃ¼llerice or MÃ¼ller Corners for 89p, down from £1.09.
An industry insider says MÃ¼ller appears to have lost its strategic focus over the past year, but adds that the promotions will “shake-up the category”. He says the company is not planning any new product development for the first half of the year so it can focus on core ranges.
MÃ¼ller UK marketing director Chris McDonough denies that the brand is focusing solely on price promotion and adds that its new advertising strategy is about re-establishing the brand.
MÃ¼ller has committed a significant amount of its £11m advertising spend to television.