Better Plate- The Hidden Price of Food Promotions and How to Recalibrate the Aisle

The Food Foundation’s flagship Broken Plate report examines the key trends shaping the UK’s food system and outlines the policy changes needed to make healthy, sustainable food accessible and affordable. How do you recalibrate the aisle? If filling up on empty calories often feels like the smarter fiscal move, even if it’s the worst nutritional choice, here are the headline facts and why they matter:

Key Facts

• Household affordability: To eat the government-recommended “Eatwell Guide” diet costs £9 per person per day, for the lowest-income fifth of households this represents 45% of disposable income, and 70% if they have children.
• Promotional bias: 37% of supermarket promotions on food and soft drinks are for unhealthy items, whereas nutrient-dense foods rarely feature on “3-for-2” or “on-offer” end-caps
• Health inequalities: Children in the most deprived fifth of areas are nearly twice as likely to be obese by Year 6, and adults there are almost three times more likely to face type 2 diabetes complications than those in the least deprived areas

• Faster inflation on healthy food: Over the past two years, the price of healthier foods rose by 21%, compared to an 11% increase for less healthy products
• Price disparity per calorie: Products high in sugar, salt and fat cost on average £4.30 per 1,000 kcal, while healthier options run to £8.80 per 1,000 kcal, more than double the price
• Marketing imbalance: Over a third (36%) of food and drink advertising spend goes on confectionery, snacks and soft drinks, while just 2% promotes fruit and vegetables

The Real Cost of Eating Well and What Supermarket Shelves Say About Our Health

Every time you are reaching for that brightly wrapped snack at checkout, you are responding to a system built on habit, opportunity and baked-in business incentives. The Food Foundation’s latest analysis shows that 37% of supermarket promotions for food and non-alcoholic drinks push products high in sugar, salt and fat, and food-industry ad budgets mirror the same skew: 36% of spending goes to confectionery, snacks, desserts and soft drinks, while fruit and vegetables scrape just 2% of the pie. Baby and toddler foods aren’t immune: 74% of those front-of-pack “healthy” claims adorn products with medium or high sugar levels.

These figures are far from being a public-health footnote, they are an actual red flag. They signal misaligned incentives across retail, manufacturing and media that risk regulatory backlash, erode consumer trust and miss a growing market for nutritious alternatives. What needs to happen to recalibrate the playing field and why it matters for your bottom line?

Recalibrate Food Promotions

Deals like “three-for-two” and “buy-one-get-one” disproportionately feature less healthy items because their higher margins can absorb the discount. That drives volume in sugary or salty products, normalizing over-consumption while staple foods—whole grains, pulses, lean proteins—sit unheralded.

Retailers and brands can pilot dynamic pricing models that tie promotions to nutritional value. Smart-pricing platforms already optimize for inventory turnover; by layering in a “health index,” you can shift promotional weight toward nutrient-dense SKUs without sacrificing margin. Early adopters will see a halo effect—brand differentiation among health-conscious consumers, reduced regulatory scrutiny, and real-time data on how pricing incentives change buying behavior.

Redirect Advertising Budgets

The soft-drink and snack giants command massive ad spending to saturate every channel—from out-of-home digital screens to programmatic video—while produce marketing remains fragmented, under-funded and siloed. The result is a consumer perception that healthy eating is niche, rather than foundational.
CPG firms and retailers should form cross-category coalitions to pool marketing resources behind core healthy-food messaging.

Picture a “Better Plates” campaign designed to boost the in-basket share of healthy products while tapping into the fresh produce market , a segment still largely ignored by advertisers.

Tighten Infant-Food Regulations

Nearly three-quarters of baby and toddler snacks with front-of-pack health claims contain worrying sugar levels. This not only undermines public health goals but risks heavy-handed regulatory responses—think new “junk food” levies or stricter claim guidelines under the UK’s proposed Food Labelling Review.

Manufacturers can get ahead of regulation by reformulating products and voluntarily adopting stricter claim standards. A clear, third-party verified “low sugar” badge would serve as a competitive differentiator in a market that parents view through an increasingly critical lens. In parallel, brands can invest in R&D for age-appropriate, low-salt, high-fibre formulations—opening up a new segment of premium, better-for-you toddler foods.

Why Act Now

• Regulatory Momentum: Governments are tightening rules on promotions, advertising and labelling. Early alignment positions you as a partner, not an adversary, in policy dialogues—reducing compliance risk and potential fines.
• Market Differentiation: Demand for health-forward products is surging: McKinsey reports that 75% of consumers say they consider a product’s health credentials when buying. Brands and retailers that champion healthy promotions and advertising will capture that premium segment.
• ESG and Reputation: Purpose-led companies attract top talent, foster consumer loyalty and earn goodwill with investors increasingly scrutinizing environmental, social and governance metrics. Demonstrating leadership in responsible food marketing checks all three boxes.
• Long-Term Profitability: Sacrificing short-term promotions on ultra-processed lines can be offset by higher-margin, health-oriented alternatives that build stickier customer relationships and reduce churn in an age of subscription models for groceries and meal kits.

Reorienting the food-promotion landscape is no longer optional, it is smart business. By restricting discounts on less healthy items, reallocating ad spend toward nutritious foods and pre-empting regulatory changes in infant nutrition, companies can unlock new growth streams and safeguard their reputations. When executives treat the supermarket aisle as a battleground for both profit and public good, they don’t just influence what ends up on consumers’ plates—they define the trajectory of health, policy and commerce for years to come.

​In 2024, the UK food sector experienced a complex financial landscape, marked by significant profits for major retailers and challenges for manufacturers.​

Major Retailers’ Financial Performance:

In 2024, the UK food sector experienced significant profitability, with major players reporting substantial earnings:​

• Tesco PLC: Achieved an adjusted operating profit of £3.1 billion, with a projected range of £2.7–£3.0 billion for the upcoming year, despite engaging in aggressive price competition.
• Sainsbury’s: Invested £1 billion into pricing strategies to remain competitive, resulting in a 7.2% rise in annual profits to £1.03 billion. This strategic investment aimed to enhance customer value and market position. ​
• Associated British Foods (ABF): Reported a group revenue of £20.073 billion, with an adjusted operating profit of £1.998 billion, reflecting a 32% increase from the previous year. The company’s grocery division saw a 17% rise in adjusted operating profit, indicating strong performance across its food businesses.
• Aldi UK: Reported pre-tax profits of £536.7 million, maintaining profitability despite a challenging retail environment. ​
  

Collectively, these figures underscore the robust financial performance of leading UK food retailers and manufacturers in 2024. Despite revenue growth, small and mid-sized food and beverage manufacturers faced profitability declines. Food manufacturers experienced a 27% drop in profitability, even with a 4% increase in revenue. Similarly, beverage manufacturers saw a nearly 30% decrease in profitability, despite a 43% rise in revenue. These declines were attributed to increased production costs, supply chain disruptions, and inflationary pressures. ​

The Hidden Price for Profitability & Health-related costs to Consumers and Government

The profitability of major retailers, partly driven by promotions on high-margin, less healthy food products, contrasts with the public health challenges associated with poor diets. The economic burden of diet-related health issues, such as obesity and type 2 diabetes, places significant strain on the National Health Service (NHS) and the broader economy. This disparity underscores the need for policy interventions to align food industry practices with public health objectives.​

• Obesity now carries an estimated £98 billion annual social cost in the UK—£19.2 billion of which falls on the NHS (“frontline” treatment of diabetes, heart disease, cancers, joint replacements, etc.) and £63.1 billion in lost earnings, reduced quality of life and private healthcare spend
• Type 2 diabetes alone cost the UK nearly £14 billion in 2021–22, including over £10 billion of direct NHS expenditure
• Obesity treatment complications (stroke, myocardial infarction, liver disease, osteoarthritis) absorb roughly £6.5 billion of NHS resources each year
  

Why this imbalance matters

• Externalised risk
  Supermarkets and manufacturers lock in healthy margins on heavily promoted junk food, but pass the downstream costs, chronic disease treatment, lost productivity, social care, onto consumers, insurers and government budgets. That misalignment invites policy intervention.
• Regulatory pressure
  When the state is forced to spend four times the sector’s profits treating diet-related disease, public and political appetite for tighter controls—sugar levies, advertising bans, promotional restrictions intensifies. Being proactive can turn compliance into competitive advantage.
• Reputational capital
  Consumers and investors are waking up to ESG imperatives in food. Companies that recalibrate promotions toward nutrient-dense staples will burnish their brand, reduce backlash, and tap into the growing “healthy-value” market segment.
  

The 2024 financial outcomes in the UK food sector highlight a dichotomy between retailer profitability and manufacturing challenges, set against a backdrop of public health concerns. Addressing this imbalance requires collaborative efforts between industry stakeholders and policymakers to promote healthier food choices and sustainable economic practices.

Shifting just 10 percent of promotional spend from ultra-processed lines to core healthy foods could improve population diets, reduce the burden on the NHS by hundreds of millions, and sustain growth in higher-margin fresh and minimally processed categories. Imagine a “Better Plates” campaign to uplift in basket share of healthy items and capture a share of the £11 billion UK fresh produce market that’s currently under-advertised.

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