Lurpak butter prices: how much is Lurpak Spreadable in Tesco, Asda and Sainsbury’s - why has price gone up?

A 500g tub of Lurpark will set you back £5 in most UK supermarkets

Record levels of inflation have caused the worst cost of living crisis the UK has seen in decades.

Driven by the Russia-Ukraine war and a worsening energy crisis, food production and manufacturing costs have rocketed and forced up food prices.

Supermarkets have fought back against some of these costs being passed on to consumers, for example Heinz products have disappeared from Tesco shelves due to a price row.

However, retailers have also pushed up prices of 175 value products, according to NationalWorld analysis.

Lurpak has become the latest victim of food price inflation (image: Adobe)

The latest major brand to have hiked its shelf price is Lurpak.

But why has the butter brand done this - and how much more does Lurpak cost?

Here’s everything you need to know.

How much has Lurpak butter price risen?

Lurpak is the UK’s largest butter brand, worth nearly £400 million according to NielsenIQ data compiled for trade magazine The Grocer.

However, it has been unable to absorb its cost increases, if its shelf prices are anything to go by.

Here’s how much packs of its Spreadable Slightly Salted 500g butter currently cost at the UK’s ‘big four’ supermarkets:

  • Tesco - £4.49 (£8.98 per kilogram) through its Aldi Price Match offer
  • Sainsbury’s - £4 (£8 per kilogram) thanks to a price reduction from £5
  • Asda - £5 (£10 per kilogram)
  • Morrisons - £4.99 (£9.98 per kilogram)
Lurpak’s owner Arla suggested it has had to raise prices due to rising farming input costs, such as for feed (image: Getty Images)

Until very recently, the price for this kind of tub typically sat around £3.65, meaning that prices have gone up by as much as 27%.

Currently, the only supermarket keeping Lurpak close to its former price is Waitrose, where 500g packs cost £3.75 - although this price point is a reduction from a ‘usual’ shelf price of £4.20.

Larger tubs of Lurpak also appear to have risen in price, with Steve Dresser, CEO of retail advisory firm Grocery Insight, pointing out that 1kg tubs have been reduced to 750g in size in at least one major supermarket.

These tubs are now routinely costing consumers around £7 - something which has spawned surprise on social media.

Why has the Lurpak butter price risen?

As with almost every other brand across the food and drink spectrum, Lurpak has been hit by food price inflation.

Earlier in 2022, Arla - the cooperative that owns the Lurpak brand - said it was “calling time on cheap milk” as a result of increases in production costs for its farmer members.

Explaining Lurpak’s price hikes, a spokesperson for the dairy said: “Unfortunately, our farmers are facing a similar situation with prices for the feed, fertiliser and fuel they need to produce milk, all rising significantly in recent months.

“We understand that recent inflation in food prices is hitting many households really hard right now.

Lurpak owner Arla says it is struggling with the same cost increases other food and drink producers are reporting (image: AFP/Getty Images)

“While we don’t set the prices on the shelves, we do work closely with the retailers to ensure our farmers receive a fair price for the milk they produce.

“Prices on the shelves have had to rise in recent months to ensure our farmers can continue supplying the products that we all enjoy.”

Russia’s invasion of Ukraine has pushed up the price of key farm inputs because the two countries are major producers of many key ingredients.

Ukraine is one of the world’s biggest growers of the grain and oilseed crops that go into animal feed.

Given the war has threatened the planting, harvesting and export of these ingredients, global prices have soared as markets have had to look for alternative sources for them.

Meanwhile, Russia is one of the world’s largest oil and gas producers, as well as a key source for the main building blocks of fertiliser.

Sanctions packages against Vladimir Putin’s regime have halted, or threatened to halt, the supply of these commodities, which has driven prices up.