As one of the most widely purchased categories in your store there’s a lot of money to be made from your biscuit fixture, but like every section, this involves great category management and staying on top of trends and NPD.
by Kevin Scott
The biscuits category has a household penetration of 99.1%, a figure which highlights its popularity more than anything else. And it’s getting more popular. Up 4.4% in value growth, the category remains extremely valuable to Scottish retailers thanks to the annual 6.6 billion consumption occasions, which is higher than cakes & pastries (5.4bn), snacks (4.8bn) and confectionery (2.9bn).
Burton’s Biscuit Company will continue to drive investment and innovation across its brands throughout 2013, enabling Scotland’s independent retailers to capitalise on increased demand for its brands. And that demand is considerable. Burton’s was responsible for 36% of the market value growth in the UK’s £2.4bn biscuit market 2012. The company puts much of this growth down to strong investment in its four ‘Power Brands’: Cadbury (which it produces under licence), Maryland, Dodgers and Wagon Wheels; and NPD.
According to Burton’s, biscuits is one of the most expandable categories in ambient grocery and currently covers 30% of total snacking occasions, leaving lots of scope for growth. David Costello Category and Activation Controller, Burton’s Biscuit Company says: “The recent launch of Maryland Big & Chunky portion packs is a step towards maximising this opportunity by taking the adult out of home snacking occasion a step further from breakfast into lunchbox and permissible afternoon snacking.”
The company also says that c-stores thrive on impulse purchases, with 50% of value coming from market segments which focus on treats. This provides an opportunity and Burton’s is advising retailers to stock treat and everyday treat lines such as Maryland SnapJacks, rather than making cheaper biscuit barrel alternatives the main focus.
Costello says: “In these tough economic times, it’s easy for retailers to think that low cost biscuit barrel options will meet consumers’ needs, but that’s not the case. In c-stores, the vast majority of shoppers are buying biscuits on impulse, looking for everyday treats.”
Burton’s, meanwhile, remains committed to focussing on pack formats, sizes and prices that will drive consumer demand. “The key to unlocking this major growth potential lies in engaging consumers with a strong offer, retaining the core 17-45 age group via contemporary pack formats that fit with their lifestyles and snacking occasions. We’ll also continue to create excitement around biscuits through innovative NPD and investment in TV advertising,” adds Costello.
The biggest name in biscuits though is United Biscuits, which dominates the category with brands like McVities and go ahead.
Hena Chandarana, Shopper Marketing Controller, UB, says: “Price perception is key for shoppers and they need confidence that they are getting value for money from brands they can trust. PMPs enable Scottish retailers to deliver this visible value for money on shelf, allowing them to demonstrate that they’re listening to the needs of their customers and stocking their products accordingly. Scottish retailers that don’t stock a range of PMPs risk losing their customers as they seek the visible value they desire elsewhere.”
In line with this growing demand, UB has launched a new McVitie’s Medley Composite case containing both its 40g Digestives & Hazelnut and HobNob & Double Chocolate variants, all price marked at 55p per bar.
The company has also launched a 300g £1.85 PMP on McVitie’s Milk and Dark Chocolate Digestives, which launched in January with even more chocolate. The NPD doesn’s stop there either.
Savoury success
Up 12% in value and the fastest-growing snack food segment, savoury biscuits are booming and showing no signs of slowing. Savoury biscuits are now recognised as being extremely versatile across different meal and eating occasions. From including them as part of a lunchbox or enjoying with friends at a dinner party with cheese, the number of occasions has evolved even further to include daily snacking occasions. UB has launched a number of new products into this area, including Jacob’s Oddities which, after only a year of sales, is already worth £9m.
It also recently launched a raft of NPD including three new variants to the Oddities range; Salt & Vinegar, Sour Cream & Chive and Ready Salted. All the new variants are available to buy from this month in multipack (5 x 25g bags) and 125g sharing bag formats at rrps of £1.75 and £1.42 respectively.
Premium biscuit brand Carr’s will also be helping to drive further growth into the Savoury Biscuits category in 2013 with its new snacking range. Launched in January, Carr’s Melts Cheese & Seed Triangles are available in 65g cartons with an rrp of £1.75.
UB’s Category Tips
Range
Stock the best sellers but don’t forget to trial new products
On-the-go
Stock a range of products sold in counter display units to enable your customers to take advantage of the on-the-go snacking opportunity
Keep stocked up
Empty shelves will undoubtedly lead to customers looking elsewhere
Offer visible value for money
Offer your customers regular promotional offers and price marked packs like to allow them to deliver visible value for money to their customers
Talk to your customers
Regularly talk to your customers and adapt your ranges to meet their needs.
Borders continues to push NPD as sales grow
A favourite on the shelves of pretty much every c-store in the country is Scotland’s own Border Biscuits, and retailers who don’t stock at least some of the 31-strong range available are likely missing out on important sales. Among the favourites in the range are Dark Chocolate Gingers and Louise Creevy National Account Manager at Border Biscuits says: “Our sales of Dark Chocolate Gingers continue to exceed our expectations and at the start of the year we hit record production targets for the variety. They have increased year on year by 24.7%, which makes them the fastest growing product within the top ten Special Treat biscuits.”
Creevy also reveals that the company has a number of brand developments in the pipeline across the portfolio while it also recently launched a new website and social media platforms to enhance our brand personality. “We have also introduced new Sharing Packs which are perfect for bringing people together over a cup of tea to enjoy their favourite biscuit,” she says. “The larger 300g Sharing Packs include a biscuit variety for all occasions, including Strawberry and Cream Shortbread, Toffee Apple Crumbles, Butterscotch Crunch and Milk Chocolate Viennese. “
In addition to this a range of Fruit Shortbread has launched, offering a twist on traditional shortbread, blending real fruit pieces within shortbread fingers. The range includes Strawberry, Cherry and Cranberry & Orange varieties.
