Find out how the right balance of price-marked packs, spicy flavours and healthier options can increase your snacks appeal.
Independent and symbol stores have a tasty bite of the total Salty Snacks category, 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% value sales of Total Savoury Snacks [ibid], meaning opportunities aplenty.
One of the biggest drivers in the category is price-marked packs (PMPs). “PMPs have been of high importance to the convenience channel and to the Savoury Snacks category, acting as the engine driver of growth,” says Nic Storey, Senior Sales Director, Impulse & Field Sales at PepsiCo.
“This year, the key to category growth remains with PMPs as shoppers continue to look for accessible price points, meaning the format will continue to be at the forefront of crisp and snack sales in 2024. Through this, PMPs reassure consumers of value and help independent retailers to offer an accessible price point that builds trust with shoppers.”
Within the Savoury Snacks category, sharing PMPs remain the number-one contributor to crisps and snacks growth in value [ibid], states the firm. “Retailers looking to grow their savoury snacking sales should look to prioritise the bestselling sharing PMP snack SKUs,” says Storey. “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. 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.”
PMP formats have seen significant growth in recent years and will stay increasingly relevant as the cost of living remains high, states KP Snacks. “PMPs offer consumers great value for money, with clear pricing reassuring shoppers that they’re getting a good deal,” highlights Sales Director Matt Collins. Worth over £350.3m [Nielsen IQ, Total Coverage, Total PMPs Value, MAT 25.10.23], the PMP format is popular within CSN, with 57% of impulse shoppers buying PMPs [Lumina Q1 Convenience Strategy Forum 2023].
KP Snacks is growing ahead of the PMP category at +16% [Nielsen IQ, Total Coverage, Bagged Snacks Value, MAT 18.05.24] with an extensive PMP portfolio.
A bold choice of flavour
A mix of punchy flavours and traditional variants will ensure a winning lineup, claims the firm. “Enjoyment is the number one driver of choice when buying crisps and snacks [PepsiCo Kantar Bolt Snacking Tracking Q2 2022 MAT, change vs Bolt Main Study 2020-2022], so retailers should ensure they are stocking popular brands and flavours, as well as offering the latest NPD in bold and exciting flavours to cater to this need for enjoyment,” says Storey. “Well-loved core brands such as Quavers, Wotsits and Monster Munch continue to drive sales in the channel and work alongside a wide range of taste-led NPD, which will help retailers to maximise sales.”
To cater to this demand, PepsiCo has come up with a host of inspiring NPD over the past year. In March, the company tapped into demand for spicy snacks with Extra Flamin’ Hot. The three-strong range adds an intense twist to favourite brands: Doritos, Walkers Max and Wotsits Crunchy. Available in sharing bags and PMPs, the flavours can help retailers to maximise sales in this growing segment.
KP Snacks is also livening up the sensory scene with flavoursome morsels. Earlier this year, the firm launched two new flavours in the McCoy’s Epic Eats sub-range: Grilled Cheese and Flamin’ Fajita. Available in the popular £1.25 PMP format, the two new flavours are inspired by the iconic diners and food stands associated with American road trips. The new SKUs also feature an on-pack promotion offering shoppers the chance to win an epic adventure, with five American road trips to be won.
Meanwhile, last year, KP launched popchips Hot & Spicy to tap into the growing trend of spicy flavours. “Shoppers are always looking for new and differentiated products and retailers can capitalise on this by stocking a strong core range with a complementary offering of NPD, creating variety and engaging shoppers,” says Matt Collins, Sales Director at KP Snacks.
“We can see that brands are pulling out all the stops on heat due to the increasing demand for spicy flavours among consumers,” acknowledges Sas Horscroft, Head of Marketing at Burts Snacks. “Recent launches show a diverse array of spicy flavours, catering to a wide range of taste preferences accommodating different levels of spice tolerance as well as flavour profiles. Some brands opt to focus solely on increasing the heat levels, while others take a more premium approach of combining heat with spices or adding complementary flavours, such as the tangy sourness of lime. This offers a more sophisticated and well-rounded delivery of heat, enhancing the overall snacking experience for consumers.”
Consumers are not just seeking heat but also nuanced flavours, with preferences including chilli and hints of lime, claims the firm. “Our Reaper Chilli and Lime Ridges are perfect for those seeking an exhilarating heat experience,” says Horscroft. “Using local ingredients, they bring the heat by using chillies from the South Devon Chilli Farm.” Burt’s Reaper Chilli & Lime Ridges experienced a significant rise in sales with a 58% increase compared to the previous year, an indication of the growing consumer demand for big flavours and ridge format.
The company’s new premium-flavoured Beef & Mustard Ridges also offer consumers a flavourful ridge proposition. “This variant stands out, with a 200% sales growth compared to the same period last year and demonstrates how customers are expressing admiration for its unique and enticing flavour combination,” says Horscroft. “This increase in popularity shows the appeal of this variant among consumers.”
Say Cheez
Kellanova is also experimenting with big flavours. From Wotsits and Cheetos to Quavers and Mini Cheddars, you might think the cheesy snack category is already pretty saturated.
Not so, states the firm, which has identified an opportunity to re-engage a younger audience looking for a “real” cheese snack that packs a punch. “Current products on the market lack a true cheese flavour, which is proving a barrier to purchase for this age group [Illumination research on Cheese Flavoured Snacks, 2020],” says Chris Silcock, Kellanova UK and Ireland Managing Director.
And so the company has introduced American brand Cheez-It to the UK, backed by an £18m media investment. Baked with 100% real cheese and a combination of wheat, corn and potatoes, the recipe has been tweaked for European taste buds. Its proprietary cooking method bakes the snacks extra thin and crispy with distinct curvy and crispy edges to deliver a balance of crispy texture and authentic cheesy taste.
The UK range includes two flavours – Cheese & Chilli and Double Cheese – targeting 22.8 million cheese-flavoured crisp buyers across the country [Circana Unify – UK Crisps MAT Sales Data up to 15 July 2023]. The product is available in a variety of sizes, including small individual packs (65g PMP and 40g) that are perfect for on-the-go snacking, and larger sharing bags.
Pav Kooner, Premier Kooners, Lochgelly
“Crisps and snacks is an important sales category for us and, in fact, we have just recently extended the amount of space that we allocate to them in-store from two metres to 3.5 metres. We’ve done this by switching to new higher racking with seven shelves. The extra space has allowed us to create double facings of big brand leaders such as Walkers, McCoys, Doritos and Hula Hoops. It’s also allowed us to make more of a statement with new products and limited editions which are a great way to add interest and drive impulse purchases. Own-label products also play a really key role these days and we also give a significant share of space to Jack’s branded crisps and snacks – many of which are available on an ‘Any 2 for £1.25’ deal. Offers like this give shoppers amazing value for money – a key consideration at the moment.”
Home in on health
Another huge trend impacting Crisps and Snacks is healthier options. PepsiCo has catered to demand for healthier eats with its non-HFSS Walkers Yummy With range. Flavours include Wotsits Cheese Toastie, Wotsits Crispy Bacon and Monster Munch BBQ Sauce.
Healthier snacking and protein have become mainstream with nearly one in three UK households buying ready-to-eat meat snacks, according to Jack Links.
“More shoppers are searching out high-protein, tasty meat snacks as healthier alternatives to traditional crisps and confectionery,” says Shaun Whelan, Jack Link’s Convenience/Wholesale and OOH Controller.
“Many shoppers see meat protein snacks as the best source of protein to give them energy for the whole day, which makes Jack Link’s a good alternative to traditional crisps.
“The opportunity to unlock additional sales is huge. The jerky and biltong meat category has nearly doubled in value over the last five years and has the headroom to double again as still less than one in 10 households buy it. High protein meat snacks is a high growth opportunity convenience retailers cannot afford to miss.”
The brand has recently undergone a packaging redesign to meet the key drivers for meat snacks, promoting the high-quality aspect of the product and reflecting category trends in craftmanship and functional nutrition benefits.
Merchandising with other bagged snacks, crisps and nuts is fundamental, as ambient protein meat snacks offer a healthier alternative snack for shoppers, encouraging them to trade up, suggests Whelan.
Merchandising advice from PepsiCo:
- Secondary sitings in store are vital to the category, 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].
- Retailers should put best sellers at eye line as this can drive up to 38% more sales vs being on the bottom shelf [PepsiCo Trax Analytics 2022].
- Retailers should stock products that cover the different shopper missions and occasions we’re seeing demand for in the channel. Retailers should block by key mission: for later (multipacks), for tonight (sharing), Singles and PMPs.
