The snacking category still remains strong with PMPs driving growth for the convenience sector.
By Elena Dimama
Snacking on-the-go while keeping tabs on the best value in this inflationary environment is still crucial for convenience, where shoppers turn to for a quick pick me up that doesn’t break the bank.
Trust the PMP
Price-marked packs (PMPs) remain incredibly popular with shoppers and brands alike, providing retailers with the opportunity to drive sales in the snacking and impulse categories. According to Lumina, 70% of shoppers purchase items on impulse and PMPs drive these sales through clear messaging and display.
“We’ve seen a recent increase in grab bag and large PMP sales as people are tempted by the bigger packs,” Matt Collins, Trading Director, KP Snacks, says. “Not only do PMPs offer consumers great value for money, but the clear pricing also gives them assurance that they are not being overcharged. PMPs are a hugely versatile format that caters for multiple missions and occasions, whether that be hunger fill or sharing.”
As the cost-of-living crisis is predicted to continue through 2023, PMPs have a big role to play in driving profits for the convenience sector.
“In convenience, £1 PMPs are a must-stock,” Matt Smith, Marketing Director for Tayto Group, explains. “They have been the main driver of category growth – growing more than twice as fast as the market. Inflation pressure is forcing many other brands to move above the all-important £1 price point, but Golden Wonder is committed to putting consumers and retailers first.”
Indeed, recent research by Tayto Group found that 95% of consumers were concerned about the cost of groceries, with almost 40% being very or extremely concerned.
“One way consumers are economising is to save petrol by shopping locally. This provides an opportunity for independent retailers to become the go-to place to purchase drinks and snacks for lunch or on the way home for a big night in,” Smith adds. “Whilst £1 PMPs have been the powerhouse of bagged snacks in recent years, independent retailers must also stock a strong range of impulse snacks to capture the resurgent FTG opportunity post-Covid. In impulse snacks, value for money is essential and having the right range of PMP snacks will drive sales.”
- Entry-point – where great value for money is essential
- Impulse – a core range for on-the-go occasions and lunchtime snacks
- £1 Sharing – demands a big focus as the largest and fastest-growing segment
- Pork Scratchings – with over 20% of shoppers unwilling to switch if scratchings aren’t available, you are missing out if you aren’t stocking scratchings.
The Fox’s Burton’s Companies is also highlighting the importance of PMPs, encouraging retailers to stock a range of products that offer value to shoppers – with the brand focusing on its Fish ‘n’ Chips snack offering.
“Price-marked packs offer retailers a competitive price point with a strong margin and – importantly – give shoppers confidence in their purchase decisions. With the average price per pack now at £1.26 for savoury snacks in the impulse channel, an increase of +15% over the last year, Fish ‘n’ Chips offers retailers and shoppers a more affordable price point,” Colin Taylor, Trade Marketing Director at Fox’s Burton’s Companies, says.
“Fish ‘n’ Chips has seen +25% value growth over MAT in the impulse channel as distribution grows through the two PMP formats, with the introduction of the £1 PMP at the end of 2021.”
Health
Health-conscious shoppers still look for tasty snacks to keep their energy up throughout the day, and there has been an uplift in healthy snacking sales, according to KP Snacks.
“Exempt from HFSS legislation, nuts, with their natural and functional benefits, are seeing huge growth. Packed with protein and fibre which is highlighted through its labelling, KP Nuts is the number one brand in nuts, more than four times bigger than the nearest branded competitor, worth £91.8m RSV and growing at +12.5%,” Collins explains.
Meaty snacks on the up
Another category that can get overlooked is meat snacks. Total sales for the jerky and biltong segment is growing at 41% value, according to Nielsen, while 26.7% units were sold in the year to date as a collective in the convenience sector.
“The category is growing in both value and in units, and has more than doubled in value over the last five years, with the headroom to double again as still less than one in ten households buy it,” Shaun Whelan, Jack Link’s Convenience/Wholesale and OOH Controller, notes.
“The jerky and biltong meat snacks category is becoming more popular in convenience sectors as we see more and more shoppers search out high protein, tasty convenient snacks that are seen to be healthier alternatives to traditional snacks. The opportunity to meet shopper demand and unlock additional sales is huge.”
The company is investing £1.5m on an annual basis into media, along with sampling at fitness and gaming events to raise category awareness. Sales of Jack Link’s Beef Jerky Original went up by 15.9% in value in the last 12 months, according to the company.
“We know shoppers looking to buy Jack Link’s Beef Jerky are predominately male, aged between 16-45 years old, with a keen interest in sports, healthy eating, and lead an active lifestyle. More importantly, these shoppers are willing to a premium for jerky and biltong meat snacks,” Whelan adds.
Meanwhile, sales of pork scratchings soared during lockdowns, as more people enjoyed the pub snack at home. “With over 20% of pork snackers unwilling to switch to another snack, the 42% of stores not stocking pork snacks are collectively missing out on £6.2m a year,” Smith says.
- We believe that making a permanent home for jerky and biltong meat snacks on the main fixture with other bagged snacks, especially next to crisps and nuts will drive sales.
- We know secondary merchandising of Jack Link’s Beef Jerky on clip strips drives high levels of incremental sales, building visibility across a store and prompt incremental purchases. Our clip strips are available in shelf-ready boxes for ease, which quickly aid merchandising.
