With a household penetration rate of 99%, biscuits are one of the most frequently purchased core items a store can stock, and suppliers are working hard with retailers to ensure fixtures are maximising the sales opportunity.
As SLR has recently found at Woodlands Local, concentrating a little time and effort on the biscuits section can reap rewards where it counts – in the till. We implemented United Biscuit’s Better Biscuits Better Business in-store and signs are good that the sales will increase; trials have seen uplifts of as much as 68% in some stores. To call biscuits a staple would be something of an understatement with a purchase rate that any category would crave: 99% of households buy biscuits an average of 37 times a year according to Kantar Worldpanel. Biscuits shoppers are also impulsive, with 33% of biscuits bought on impulse vs an average of 14% convenience average.
Yet increased competition in supermarkets and the growth in popularity of major discounters have led to a fight for share, with many retailers focusing on stocking cheaper biscuit barrel alternatives to well-known brands with the hope of attracting custom – something which Burton’s Biscuits advises against. “Biscuits is a complex category,” says David Costello, Burton’s Biscuit Company’s Head of Customer Category Management. “Unlike some other categories, which are eaten at certain times during the day, biscuits are eaten throughout the day on a number of different occasions, meaning that they need to cater for a wide range of shopper missions.” Costello says that convenience retailers should focus on leveraging advantages rather than trying to compete head on via price within the more functional biscuit barrel area. He adds: “With one third of all biscuits being bought on impulse, it’s important that retailers try not to focus too heavily on little known cheaper biscuit barrel alternatives at the expense of more impulsive treats from leading brands that are driving growth of the category.”
Burton’s Biscuit’s two recent product launches within the £420m savoury biscuit category – Cathedral City Baked Bites and Burton’s Fish ‘n’ Chips – have proven that it’s not just sweet biscuit that pique consumer demand. Back to United Biscuits and such is the definitive split between sweet and savoury, UB, as part of its overarching Masterbrand strategy, has moved all of its sweet brands (with the exception of go ahead!) to sit under the McVitie’s Masterbrand to help simplify the shopping experience.
At the same time, all of its Savoury brands, including Cheddars and Mini Cheddars, have been re-branded as Jacob’s. “There are a number of trends that over the last few years have dominated the category from consumers demanding value for money and convenient solutions, the increasing spotlight on healthier eating or the growth in savoury biscuits, all of which will continue to have a role in retaining consumer interest in biscuits and driving future excitement,” says Hena Chandarana, Trade Communications Controller at UBUK. “However, the most important thing local retailers should be paying close attention to is getting the basics right. Simple things such as adjusting core ranges or stocking the right promotional packs will increase sales, ultimately driving growth into the biscuit category.” Driving that growth is obviously key – and to help, UBUK launched a website to help retailers.
At the heart of the website is the afore-mentioned Better Bisucits, Better Business’ programme that has successfully been implemented at Woodlands Local. Chandarana comments: “With research showing that shoppers spend less than 60 seconds at a fixture, easy navigation and impactful layout are everything. Our five-step ‘Better Biscuits, Better Business’ programme on the new website offers independent retailers practical ways to grow their sales.
The new website is a powerful tool for independent retailers who are looking to grow sales of the nations’ favourite biscuits by offering insights and advice on how they can achieve this.” As well as ensuring they get the basics right, Chandarana says promotions are crucial to success. “Over the last few years consumers have become savvier to price promotions and are now experts at hunting out the best bargains,” she says. “They’re now taking a more considered approach to their purchases, working out which products offer the best value for money for their household. However, there is no one size fits all in terms of promotions. Instead it’s crucial that retailers offer the right mix of promotions and value formats for their customer base in order to maximise profits.”
Of course, Scotland too has biscuit brands to be proud of. And in this year of all years – with the Commonwealth Games sparking a whole new level of patriotism – provenance is set to play an even more important role than before. When it comes to biscuits that doesn’t just mean boxes of shortbread. In Border Biscuits, Scotland’s convenience stores have a huge range of popular products that continue to offer quality and value for shoppers. Jill Sutherland, National Account Manager, Border Biscuits said: “We are continuing to perform well in the premium biscuit market and have seen a 20% increase in sales compared to the same period last year. Product innovation and increased nationwide listings have boosted sales and our dedicated team are now working seven days a week to keep up with demand.”
Among the company’s recent innovations include the Deliciously Different range which showcases different flavour combinations. The seven strong range includes Strawberry and Cream Melts, Lemon Drizzle Day, Chunky Chocolate Cherry Trifle, Yankee Doodle Butterscotch, Chocolate and Pecan Crunch, Chocolate Fudgey Wudgies, Raspberry and White Chocolate Bliss and Danishly Caramel Apple. Sutherlands adds: “In addition, our social media channels continue to grow and our Big Baking Bonanza has also been a huge success.”