Aussie Christmas: prawns, puddings and prosecco

It’s beginning to look a lot like Christmas.

Across most parts of the world, the Christmas decorations are up across city streets – almost as soon as the Halloween ones came down.

“In contrast, in Japan, fried chicken - especially KFC - has become a staple of the Christmas season, with millions ordering their “Christmas Chicken” weeks in advance.”

Jingle Bells is playing in shops and businesses are scouting for anywhere still available for Christmas parties. As Christmas gets closer, the world’s food, beverage and agribusiness (FBA) sector is bustling like Santa’s workshop.

The festive season is a major occasion for these businesses - a peak period where consumers fill their carts (and stomachs) with everything from prawns to pudding.

For FBA companies, Christmas and New Year is not just the season to be jolly - it’s the season to maximise sales, manage inventories and keep up with consumers’ holiday appetites.

Christmas crunch time

In Australia, seafood sales surge - particularly prawns, which see a 30 percent spike every December as Aussies prepare for a hot Christmas Day.

Traditional Christmas meats like turkey and ham also see an upswing – around 75 per cent of turkey consumption in Australia occurs at Christmas, with the average Australian only eating it once a year.

Ham is also a huge seller. In 2022 Woolworths forecast sales of around 1.8 million kilograms of half-leg hams at Christmas, or enough to stretch from Sydney to the Blue Mountains.

Unsurprisingly, Christmas is also a crucial time for Australia’s liquor retailers. On average, alcohol sales in December are roughly 60 percent higher than the typical month.

The warm weather often leads to a surge in sales of Australian sparkling wine. A reasonable proportion of alcohol sales in December aren’t for consumption, but as gifts for Christmas Day.

One survey found after gift cards and gadgets, beverages were the most popular gift for men, and in the top five for women.

Australian Alcohol Retail Turnover - % of Annual Total by Month

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In Europe, champagne sales also rise, especially in France, although inflation has seen consumption fall as consumers move to cheaper Prosecco, Cava and Crémant.

In the UK, mulled wine – a spiced, heated red wine – is a holiday favourite. While gin remains a popular purchase for Christmas in the UK and the US, its sales have fallen since the peak of the gin hype in the late 2010s.

In Italy, the traditional sweet bread panettone, sees massive demand. More than 70 percent of Italians purchased it at Christmas.

In Asia, holiday traditions are more varied across countries, but unique local delicacies feature prominently. In the Philippines, Noche Buena is a traditional Christmas Eve feast featuring lechon (roast pig), queso de bola (cheese balls) and a variety of sweets and pastries.

In Japan, fried chicken - especially KFC – has become a staple of the Christmas season, with millions ordering their “Christmas Chicken” weeks in advance.

The perfect timing

For the Christmas shoppers looking for the freshest produce, especially for non-cured meats and salads, the ideal time is typically the week before the big day. This is when FBA companies ramp up deliveries to meet last-minute demand.

However, for items like seafood, Christmas Eve is the prime time. Despite prawn prices spiking by up to 20 per cent as 24 December approaches, many people are happy to pay this to guarantee fresh product.

FBA companies start gearing up for Christmas as early as July, increasingly using data analytics to predict demand. It’s not just about producing enough to meet demand but about storing perishable goods strategically.

Logistics are vitally important to meet demand. Companies expand their warehousing and often need extra fleet vehicles to handle deliveries. Without careful planning, supply shortages can leave supermarkets shelves empty.

Overall, Christmas season sales make up a major part of annual revenue for FBA businesses, especially in beverage, retail and speciality product sector. For some, it can make or break their annual targets.

Preparations for holiday demand

Behind every Christmas ham and pudding lies a carefully planned effort months in the making.

FBA companies start gearing up for Christmas as early as July, increasingly using data analytics to predict demand. It’s not just about producing enough items to meet demand but also about storing perishable goods strategically, to ensure that the prawns stay chilled and champagne remains bubbly for Christmas Day.

Logistics are also vitally important to meet the demands of the period. Companies expand their warehousing and often need extra fleet vehicles to handle deliveries during peak times.

Without these careful plans, supply shortages could leave supermarkets with empty shelves and sparse Christmas tables.

Overall, Christmas season sales make up a major part of annual revenue for some FBA businesses, especially in the beverage, retail and speciality Christmas product sector, and for some of them, it can make or break their annual targets.

Navigating the January lull

Once Christmas has passed and the New Year fireworks have faded, the FBA industry faces a post-holiday slowdown.

With offices shut and many Australians heading for their regular summer holiday, sales drop sharply and companies are often left with leftover stock.

Retailers typically slash prices to clear excess inventory – with an increasing number starting their traditional Boxing Day sales early.

For example, retailers might mark down their unsold hams, turkeys and other Christmas foods, providing shoppers with some bargains for their January guests.

From pavlova in Perth to sparkling wine in Sydney and panettone in Parma, Christmas feasts will be a highlight of the year to many families around the world.

Michael Whitehead is Executive Director for Food, Beverage and Agribusiness Industry Insights with ANZ.

This article originally appeared as a part of the Summer 2024/25 edition of the “Food For Thought” report.