Coronavirus: Surge in demand for wine and cooking sauces during lockdown

Wine merchant Naked Wines and cooking sauce maker Premier Foods have reported a surge in demand during the lockdown.

Naked said sales were up 81% in April and May compared to the same period last year as the pandemic drove "significantly accelerated trading patterns".

Meanwhile, Bisto and Mr Kipling maker Premier Foods said sales since the end of March were up by about 20%, driven by demand for cooking sauces, gravy and baking ingredients.

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The update from Naked Wines came as it disclosed its first annual results since spinning off bricks-and-mortar retailer Majestic - reporting a loss of £5.4m as it invested in attracting new customers.

The results covered the year to 30 March, a period when revenues rose by 14%. The first two months of the subsequent financial year saw sales climb by 81%.

However, the company said there was "considerable uncertainty" about how long the trend would last and a "high likelihood of a consumer downturn" in the latter part of the 2020-21 period.

Chief executive Nick Devlin said that in the longer term Naked was well positioned to benefit from a shift in consumer behaviour.

"I believe the enduring impact of COVID-19 will be to accelerate trends towards direct, online models in categories like wine," he said.

Shares were 3.5% higher in early trading.

Premier Foods reported a profit of £53.6m for the year to 28 March as revenues grew 2.8% to £847.1m - growth which accelerated towards the end of the period as customers stockpiled goods.

Sharwood's and Loyd Grossman branded cooking sauces as well as Ambrosia custard and rice pudding products were among those to benefit, the company said.

One of the group's smaller brands, McDougall's flour, saw "very marked increases in demand as more consumers turned to baking at home", it added.

Chief executive Alex Whitehouse said: "One of the most prevalent trends we have seen during the lockdown is that Britain has got cooking again, with particularly high levels of demand for items relating to meal preparation, including cooking sauces, gravy and baking ingredients."

Premier said the first quarter of the current financial year had seen "particularly strong trading, with group revenues set to increase approximately 20% compared to the prior year, as it continues to see elevated levels of demand for its grocery brands during the COVID-19 pandemic".

It said that while it remained unclear how consumer habits would change as lockdown measures ease, it now expects to beat previous revenue and profit expectations for the full year.

Shares were 5.7% higher in early trading.