Christmas season sales constitute a significant portion of the annual revenue for food and beverage businesses, with many Australian retailers beginning their preparations as early as July. ANZ's latest Food for Thought report highlights Christmas and New Year as critical periods for these companies.
Michael Whitehead, ANZ Executive Director for FBA Insights, stated: "Christmas isn’t just about unwrapping presents – it’s about peeling prawns, carving ham, and popping champagne, all of which make this the most deliciously chaotic time of year for food and beverage businesses."
In Australia, seafood sales increase by approximately 30%, with prawns being a popular choice for festive gatherings. Traditional meats such as ham and turkey experience even larger spikes in demand; 75% of turkey consumption occurs during the holiday season. December also marks the peak month for liquor sales, with alcohol purchases rising 60% compared to an average month.
Globally, unique traditions drive distinct demand surges. In Japan, KFC's "Christmas Chicken" is popular while in Italy more than 70% of Italians purchase panettone during this period.
For FBA businesses, the festive season involves not only ramping up production but also optimizing logistics to meet increased demand. January presents a post-holiday slowdown challenge where businesses must manage excess stock and prevent food waste. Retailers often use Boxing Day sales to clear remaining inventory through significant markdowns on holiday staples like hams and turkeys.
Whitehead further commented: “Behind every Christmas table lies months of planning and companies need to navigate inventory management, fine-tune supply chains, and ensure that every festive staple – from glazed hams to plum puddings – arrives in time for the big day. This seasonal shift presents businesses with both risks and opportunities. Companies that adapt quickly and learn from Christmas demand can better position themselves for the year ahead.”
Further insights are available in ANZ’s summer edition of the Food for Thought report.