Crisp up your sales

Local retailers will know the importance of the crisps and snacks category in their stores, but the category is constantly diversifying, and so SLR gives the lowdown on the latest trends.

by Iain Hoey

Crisps and snacks remain a vital sales opportunity for retailers as 93% of people eat snacks, with 63% of those snacking at least once a day, 82% buying snacks on impulse and 18% snack on-the-go. The crisps, snacks and nuts category is a busy one, and with so many brands looking to drive visibility and compete at the fixture, NPD has become more important than ever before.

Crisp brand favourites such as McCoy’s and Hula Hoops are seeing continued innovation to reinforce brand loyalty. The ridged crisp favourite recently launched the McCoy’s Chips – a crinkle cut chip looking to recreate a full-on chip shop experience. The £1 PMP 70g packs come in two chip shop flavour favourites: Salt & Vinegar and Curry. Hula Hoops Big Hoops also recently extended it’s £1 PMP with its new Chilli flavour.

Healthy growth

For many consumers, however, health continues to be a key focus, and it is having a significant impact on shopper behaviours and eating habits. Research by Mondelez International suggests that the health and wellness food and beverages category is due to grow by 13% by 2020 from its current value of £20.6bn in the UK.

“This increased awareness of healthier eating is having a major impact in savoury snacks, as consumers look for more permissible options that provide a greater choice,” says Susan Nash, Trade Communications Manager at Mondelez International. “The trend is driving a shift away from snacks such as crisps – which may be considered unhealthy – and a growing appetite for products which are baked, not fried. As a result, the Crisps category is currently seeing a decline of -6.0% in value sales, while Popcorn and Savoury Snacks are growing at +1.6% and +13.9%, respectively.”

The sector is on consumer trend at the moment, as brands look to meet consumer demand for products that are both permissible and convenient, with bagged savoury biscuits among the star performers in the past year.

Following launch in May 2015, Ritz Crisp & Thin has proven itself highly incremental to the category with one of the highest repeat rates of all new product launches in the category in the last five years. Mondelez continues to invest in marketing campaigns for the product, as its Ritz brand returned to the small screen earlier this year, with a multi-million-pound campaign.

“The success of Ritz Crisp & Thin is an indication of the growing significance of savoury and the consumer demand for snacks that taste great but are more permissible than traditional crisps,” says Nash.

Also in the segment, Burton’s Fish ‘n’ Chips brand launched its biggest ever on-pack promotion for Fish ‘n’ Chips, with a 12-week Ticketmaster partnership. Running until the end of June, shoppers are being given the chance to win gift cards to purchase tickets to a host of events including theatre, music, sports and more, with £1 million worth of fan experiences up for grabs.

Protein and meat snacking is also becoming increasingly popular within the snacking category as consumers look for ways to stay fuller for longer as they fuel their busy active lifestyles. Earlier this year, Peperami launched a new Beef variant to sit alongside our iconic and much loved pork sausage snacks – the first time Peperami has introduced a new meat into the range for over 10 years.

Nuts and trail mixes

Fruit, nut and seed mixes are also on trend, with many category segments seeing triple digit growth over the last two years, according to Mars Chocolate Drinks and Treats. The fruit, nut and seed snacking category is now worth £2.8million, showing significant growth through predominantly own-label products as there are few, if any, premium brands in the category. Research also shows that globally, nuts and seeds are a top ten favourite snack for 41% of consumers.

Michelle Frost, general manager for Mars Chocolate Drinks and Treats says that established brands branching out into the segment can really drive sales. “We are always seeking out new opportunities to offer consumers more choice, and these new Trail Mixes give our customers even more ways to enjoy their favourite chocolate brands,” she says.

Taking full advantage of the recent popularity of nuts, KP Snacks is investing in its KP Nuts brand with planned NPD and advertising support. Catering specifically to the needs of the convenience channel, the brand offers a £1 PMP range – available across its Original Salted, Dry Roasted, Salt & Vinegar and Chilli variants.

Promote occasion snacking

Shopper behaviour has changed from regular weekly shops for the whole family to being almost solely driven by occasions. Matt Collins, Sales Director for Convenience, Wholesale, Discounters & Foodservice at KP Snacks, says that whilst 52.6% of spend within the convenience channel is for replenishment missions, but the fastest growing sector by far is ‘Meal For Tonight’. “Crisps and snacks represent a huge opportunity to grow basket size when shoppers are in-store, as they sit outside of this mission but will tempt hungry shoppers as they plan their evening meals,” he explains.

“Replenishment is the biggest mission and capitalising on this with off-shelf feature will help maximise the opportunity to grow sales,” Collins continues. “Placing crisps and snacks on promotion has become a great driver of incremental spend, with 31% of shoppers purchasing items on deal as opposed to just 18% when they’re not on offer.

“We’re seeing the demand for PMP formats remaining strong as they provide shoppers with much needed value.

“But,” Collins finishes, “whilst we continue to increase our range of PMPs, we also continue to offer a comprehensive range of non-PMP to give retailers choice.”