Bagged confectionery is safe, solid and relied upon by both consumers and retailers. However, with manufacturers already addressing issues of sugar content, tax and health perception, bagged confectionery is becoming harder to sell.
by Émer O’Toole
Over the past year, the total Confectionery category has continued to show its strength, with the overall market seeing an increase in value sales of 1.1%, year-on-year. Driven both by old favourites and new product development, Bagged Confectionery ticks all the boxes for marketing and desirability.
A rise in consumption trends like sharing, which has seen consumers favour treat bags and pouches, has contributed to category sales — with an increase in sales of 6.3%, according to Mars. Retailers looking to raise awareness of the bagged confectionery section, and boost sales in store should ensure their core confectionery display is always merchandised in line with how a shopper navigates the fixture. Jon Eatly, Wrigley customer excellence director says “a fully stocked display will help maximise your profit potential and guarantee repeat visits from customers.”
In-store theatre and a tactical use of POS materials can drive additional sales, especially in high-footfall areas, and as more and more consumers are buying chocolate confectionery on impulse, retailers should maximise on this opportunity. Bep Dhaliwal, trade communications manager at Mars says: “With so many price-conscious shoppers today, price-marked packs reassure them that they are getting the best value for money. Our £1 Maltesers, Galaxy Minstrels and M&M’s treat bags are some of our most popular price-marked packs and they offer an affordable way to share a treat.”
PMPs reassure shoppers they are getting the best value for money, and provide the perfect chocolate treat for night in with friends and family. They’re also a great way for retailers to grow sales in store and attract the attention of customers. The rise in popularity of the Big Night In occasion has resulted in sharing pack PMPs playing an increasingly key role in the confectionery market. According to Cloetta, last year 63% of retailers claimed they would stock more PMPs this year, and 76% said they’d be more likely to stock products that displayed the price on pack.
According to Wrigley, the total fruit confectionery category is currently worth £608 million. Chupa Chups is extending its Airheads range, with the introduction of a £1 pricemarked hanging bag. Each pack contains bite-sized sweets in five sour flavours: Apple, Blueberry, Cherry, Lime and Orange. Visibility is key and popular confectionery items should be located at eye level to take advantage of incremental sales. Skittles Tropical single bags (55g), hanging bags (125g), and sharing pouch (174g) contain flavours including Orange, Passion Fruit, Tropical Punch, Watermelon, and Pineapple. The hanging bags include a Price Marked Pack of £1 RRP. Wrigley says tropical is a fast growing flavour trend, has been mirrored in other categories and is performing exceptionally well with value growing year-on-year.
Using cross-category merchandising will increase impulse purchases. Encourage additional purchases using cross category promotions, such as ‘buy a sandwich, drink and confectionery for £3’. Single price point Big Night In promotions are also growing in popularity, allowing shoppers to satisfy all of their needs in one go. This covers deals which include a DVD, confectionery pouch, and drink for a reduced cost.
In order to raise sales and capitalise on early consumer demand it’s vital that independent retailers champion new products in store. Cadbury’s new Dinky Deckers bitesize bag taps into the ‘little and often’ trend. It follows the likes of Cadbury Boost, Wispa and Twirl, which have been extended into the bitesize category in recent years.
For retailers putting in the effort, the reward is increased sales and profits. Pay attention to trends and NPD as they are potential profit drivers in the bagged confectionery section of the c-store.
- Put bagged confectionery alongside savoury snacks and drinks, to promote additional basket spend in store for customers looking to fulfil their big night in shopping mission.
- When merchandising pouch lines, core favourites such as M&M’S and Maltesers should be displayed in a prime location, for example, at eye level on a wall display.
- Ensure you use all POS available to you, such as dumpbins & counter units – these are guaranteed to raise awareness and generate impulse sales.
- Focus on getting the main confectionery display merchandised well, with strong availability of core lines.
- Multi-face key lines – this helps to ensure strong availability and attracts shoppers to make those all-important impulse purchases.
