From PMPs to healthy options and flavour trends, find out how to get the best out of your crisps and snacks offer.
Snacking remains a central part of day-to-day life with the total Salty Snacks category in UK independent and symbol stores now worth £631.6m and growing at +18.0% [NielsenIQ, Independents & Symbols, MAT 20.01.24]. Within this, Crisps, Snacks and Nuts accounts for 94.1% of value sales of Total Savoury Snacks [ibid], creating a significant opportunity for independent retailers to grow their savoury snacking sales, claims PepsiCo.
“The market for crisps, snacks and nuts has remained particularly stable despite the obvious impact of inflation,” reports Carol Saunders, Head of Insight at the Knowledge Bank. “Other food markets have not proven as resilient to these challenges which is testament to the innovation shown by snacking brands to update and diversify their product offerings.”
Crisps and snacks are such a good performer for Glasgow-based Keystore retailer Jazz Lalli, that he has taken the opportunity to expand the category at his Temple store as part of a wider refurb. “We’ve allocated a lot more space to crisps and given popular lines double facings. Before, we had 3m and now we have just over 4m.”
With plenty of consumers still following a strict budget in order to pay the bills, price marked packs remain of vital importance, according to PepsiCo, which describes PMPs as “the key to category growth”.
Within the Savoury Snacks Category, the company claims that Sharing PMPs remain the number one contributor to crisps and snacks growth in value, compared with other segments [ibid]. “Within the Independent and Symbols channel, the top 15 Sharing PMP Snack SKUs include Doritos, Quavers, Cheetos, Wotsits and Monster Munch, which demonstrates just how important these SKUs are,” says Nic Storey, Senior Sales Director, Impulse & Field Sales at PepsiCo. “To maximise this growth opportunity, we recommend that retailers stock a variety of Walkers brands in PMP format in-store to cater to multiple snacking occasions.”
Jazz has seen the power of price marks with his own eyes. “Crisps and snacks are in the middle aisle of the store, not far from the counter area,” he explains. “Our best sellers are our price-marked £1.25 range.”
Single packs of Walkers crisps are displayed in basket stands, but he claims that sales of this pack size are slowing down. “They’re 80-90p a pack and McCoys are £1.15, and then it’s £1.25 for a bigger bag. Customers are still affected by the cost of living and a bigger bag is better value.”
Worth over £350.3m, the PMP format is popular within Crisps, Snacks and Nuts (CSN) [Nielsen IQ, Total Coverage, Total PMPs Value, MAT 25.10.23], with 57% of impulse shoppers buying PMPs [Lumina Q1 Convenience Strategy Forum 2023].
KP Snacks claims to be delivering the fastest growth in PMPs at +20% [Nielsen IQ, Total Coverage, Bagged Snacks Value, MAT 20.04.24]. The group’s £1.25 Hula Hoops Big Hoops BBQ Beef are the best-selling PMP on the market [Nielsen IQ, Total Coverage, MAT 24.07.23].
The trend towards value is also impacting demand for larger pack sizes, observes Burts. The snacking category is being largely influenced by the current cost-of-living crisis, and with 64% of consumers arranging big nights in rather than going out [Mintel, UK Food and Drink at Home Socialising Market Report, 2023], local stores can expect an increase in snack sharer packs being sold, suggests the firm. As more people host gatherings with friends at home, the demand for sharing packs has increased, with 47% of those who have hosted social gatherings being interested in food-sharing boards [ibid], observes Burts, which offers 150g packs of Lightly Sea Salted and Sea Salt & Malt Vinegar flavours.
Jazz agrees that Big Night In is a sales driver for crisps and snacks. “People buy four packs at a time – a lot of people don’t go out as much of a weekend, so they’d rather get some snacks and drinks and stay at home,” he says. “It’s expensive to go out.”
To celebrate its partnership with 100-ball cricket competition The Hundred, KP Snacks has unveiled a new on-pack promotion offering consumers a chance to win £10,000, plus daily cash and cricket prizes.
The Hundred-themed packs run across Multipack, Sharing and Single formats from the leading KP Snacks brands which feature on the team shirts of the eight men’s and women’s teams competing in The Hundred: popchips, Butterkist, Pom-Bear, Tyrrells, KP Nuts, Hula Hoops, McCoy’s and Skips.
Running until mid-August, a grand prize of £10,000 is up for grabs, as well as over a hundred £100 cash prizes. Eight New Balance cricket sets and two £65 vouchers for The Hundred shop will also be won each day, offering consumers simple ways to get involved in cricket.
The new on-pack promotion, spotlights KP’s ‘Everyone In’ campaign designed to encourage families to adopt healthier lifestyles by getting involved in cricket.
Spice up your life
Another consumer trend that is shaping demand and innovation is the increasing preference for elevated snacking experiences and intense flavours. In fact, UK consumers are hungry for spice, with 51% saying they love spicy food [Quantitative Usage and Attitude Study, Ipsos, 2022]. Additionally, recent research shows that the UK’s desire for spice also ranks as the second highest in Europe [ibid], with the hot and spicy space having grown by +8.9% in the Savoury Snacking category year on year [Take Home Purchase panel, 52we 17 Mar 2024 vs YA].
To tap into the demand for spicy snacks, PepsiCo unveiled its Extra Flamin’ Hot platform across Doritos, Walkers Max and Wotsits Crunchy earlier this year. Jumbo POS structures helped to create plenty of excitement in-store for independent retailers who worked with PepsiCo to ensure the launch was a hit.
“There’s definitely a trend for spicy crisps like Takis and Walkers and Doritos Extra Flamin’ Hot,” enthuses Jazz. “People want something different.”
Burts is also tapping into the trend for spicy snacks. Industry research shows there is a noticeable shift towards more adventurous and bold flavour combinations, particularly those featuring chilli and beef, which have seen growth rates of 16.7% and 22.4% [Circana 52 weeks 18/02/2024], states the firm.
Burts has added a limited-edition flavour of Spicy Barbecue hand-cooked potato chips to its range for summer 2024, combining warm, spicy barbecue flavours with honey.
Also ticking the spicy box is Burts’ new premium flavour of Beef and Mustard Ridges, which use real organic beef from Burts’ local ingredient partner, The Eversfield Organic Farm.
Pladis is getting in on the spicy action too with non-HFSS Jacob’s Crinklys Chilli Beef.
Tapping into the appeal of ‘Spicy’ and ‘Meaty’ flavours – a segment which is far-outpacing total category growth, up +26.8% [Nielsen IQ, WE 06.04.24, Total Coverage inc. Discs, Flavour Group YOY % Change LMAT], the new product features the familiar flavour-packed ridges coated in a chilli beef seasoning.
“Jacob’s has been baking some of the nation’s favourite savoury snacks for over 170 years, but we’re no strangers to deviating from tradition and experimenting with trend-led innovation,” says Asli Akman, Marketing Director – pladis UK&I. “In fact, we’ve got a track record of reeling in younger snackers with exciting flavours and new formats.
“Now, with Jacob’s Crinklys Chilli Beef, we’re encouraging snacking shoppers to branch out and discover a tasty take on our much-loved savoury ridges. And this latest launch is already set up for success thanks to both our reputation and the existing popularity of ‘Spicy’ or ‘Meaty’ Crisps & Snacks, with almost a fifth (18%) of the category’s shoppers already purchasing these flavours [ibid].” The company has launched a channel-exclusive 90g PMP format (£1.25) for the independent channel.
It follows hot on the heels of the successful non-HFSS recipe revision for Jacob’s Crinklys last summer, which saw the oven-baked snack slash fat content by 30% for its classic Cheese & Onion and Salt & Vinegar flavours. Both variants ranked within the top five non-HFSS launches of 2023 [Sales Value of 1 Products, All Trading Company, All Brand, All Flavour Of Savoury Product, All BB LI Estimated HFSS Status in Total Coverage including Discounters/GB during latest 52 wks w/e 25/11/23], having reeled in an additional +£3.7m in sales (+43.3%) [Nielsen Total Coverage LMAT Sales Values 22.02.24].
Three retailers have seen sales rocket after implementing KP’s ‘25 to Thrive’ advice. Retailers reported a marked uplift in their Bagged Snacks sales, with an average growth of +15.3%.
The trials ran for four weeks, with retailers Kenny Chupe and Koyes Miah, and Mohammed Qasim Khan receiving direct support from KP Snacks to optimise their Bagged Snacks fixtures, taking on board must-stock crisps, snacks, nuts and popcorn SKUs from multiple suppliers to drive category sales.
Kenny, who runs Our Local in Moston, Manchester, saw a 17% increase during the trial. He says: “Our store is based in a community with lots of families and a school nearby. Stocking a wide range of PMPs at different price points has led to an uplift in sales, with smaller price-marked packs appealing to family shoppers looking for lighter and more affordable snacks.”
At City Centre News in Salford, which saw a +13.6% increase in sales following the trial, KP Snacks supported Koyes Miah to give best sellers more space and prominence within his Bagged Snacks fixture, while adding variety with the introduction of popcorn SKUs.
Miah says: “We have been really happy with the changes. It has been good to understand what the bestselling SKUs in the market are and we have made sure that each of these has a couple of facings. Adding popcorn SKUs into the range and even putting them in a dump bin has definitely had an impact and we will keep them in the range.”
A healthy approach
Health is a priority for shoppers and retailers alike, with the focus on Healthier Snacking growing in response to the introduction of UK HFSS legislation in October 2022, states KP. In the past year, the Healthier Snacking segment has grown rapidly at +5.5% [Nielsen IQ, Total Coverage, Total Value, MAT 12 w/e 20.04.24].
KP claims that around 25% of its portfolio is non-HFSS, including Popchips and Hula Hoops Puft brands, and that these lines account for a 25.5% share of non-HFSS CSN products.
Better For You lines are in demand, according to the Knowledge Bank. “More than 50% of consumers are looking for healthier versions of their favourite snacks, while 61% claimed they proactively seek out savoury snacks with alternative ingredients such as chickpeas or lentils [Mintel – Crisps, Savoury Snacks, and Nuts – UK – 2024/Levercliff Consumer Tracker Survey 2024],” says Saunders. “In Scotland, Nudie Snacks jumped on this trend by launching cauliflower crisps. The company identified a gap in the market for ‘high fibre’ and ‘high protein’ snacks to target this audience [Nielsen Total Coverage incl. Discounters – 52 w/e 24 February 2024].”
Jazz ensures he stocks a few Better For You lines to cater for all tastes. “Snack A Jacks do OK and Popchips – you do get people who are more health conscious,” he says. “But your everyday sellers are Hula Hoops, Walkers, Doritos, McCoys, Sensations, popcorn and peanuts.”
- Secondary sitings in store are vital to the category and food-to-go mission, particularly as shoppers are four times more likely to buy crisps, nuts and snacks if they see them in a secondary location [PepsiCo and Shopper Intelligence August 2022], which is likely to be important for those who are rushing around a store when on the go.
- Retailers should put bestsellers at eye line as this can drive up to 38% more sales vs being on the bottom shelf [PepsiCo Trax Analytics 2022], particularly as those shoppers on-the-go are less likely to have time to browse an entire range, so will be looking for those easy to find bestselling snacks.
- Displays in store, especially nearer the till, play a key role for purchasing with 35% of purchases in the Savoury Snacks Category made from these displays [Lumina, Convenience Tracking Program, 19/09/22 – 05/03/23 (12we); Symbols profile].
