Sugar confectionery is an impulse-led category. In fact, recent research reveals that 80% of confectionery purchases are influenced in store. Retailers should focus on the big brands, as well as promotions, in order to drive impulse sales.
by Émer O’Toole
The move to take sugar confectionery off the checkout has undoubtedly affected the market. This combined with a change in focus by leading brands to prioritise bags and pouches over the core singles has resulted in an increased average price per unit.
“Shoppers have always known that there is sugar in confectionery, unlike other products which may have surprising sugar content levels or masquerade as healthier options. Confectionery as an occasional treat is how many consumers enjoy this category and we support this”, says Mark Roberts, Trade Marketing Manager at Perfetti Van Melle (PVM).
IRI market research shows the sugar confectionery market is still growing at 0.5% per year, and the sugar free market has grown by 14% over the last two years. PVM offers sugar free Chupa Chups lollipops.
It is worth monitoring trends and consumer behaviour to determine what categories to focus on. For instance, IRI market research shows that sharing bags are in major growth and represents the longest portion of value sales in the market. Wrigley added a new flavour to the Skittles range with the launch of Skittles Tropical this year. The hanging bag format includes a £1 PMP. Skittles Tropical is expected to deliver +1.5% fruit confectionery category growth. A fast growing flavour trend, tropical has been mirrored in other categories and is performing exceptionally well with value growing year-on-year, reveals Wrigley research.
According to Wrigley, 47% of customers are spending less money on out-of-home entertainment, and 50% are eating out less. As a result, Big Night In remains a key sales opportunity within the sugar confectionery category, as consumers are more conscious of their spending. Sharing packs are a must stock, so shoppers can graze over a longer period or share with friends, instead of consuming them all in one go. Ideal for sharing as part of a Big Night In, the new Bertie’s Jelly Mix celebrates fun and Britishness. It features a quirky assortment of jelly sweets in fruity flavours and shapes, including bow ties and teapots. Wine Gums, Jelly Babies and Liquorice Allsorts are also ideal for the Big Night In shopping mission and all contain natural colours.
- Visibility is key and popular confectionery items should be located at eye level to take advantage of incremental sales.
- Availability is crucial. Remember to re-stock each morning and prior to peak traffic times. A fully stocked display will help maximise your profit potential and guarantee repeat visits from customers.
- In order to ensure shoppers are aware of the choice and range on offer, it is important to keep a clear and tidy confectionery display – this will also make restocking easier.
- Use cross category promotions to encourage additional purchases, such as ‘buy a sandwich, drink and confectionery for £3.’ Single price point ‘Big Night In’ promotions are growing in popularity, allowing shoppers to satisfy all of their needs in one go. This includes ‘dine in for two’ meal offers and in store deals which include a DVD, Confectionery Pouch, e.g. Skittles or Starburst, and drink for a reduced cost.
- Rotate stock regularly so that older stock is sold through first ensuring less wastage.
- In order to raise sales and capitalise on early consumer demand it’s vital that independent retailers champion new products in store.
- Make the most of your confectionery display by using eye-catching POS materials to encourage customers to buy on impulse.
Dan Newell, Confections Marketing Manager, says: “A complete night in solution is crucial. Remember to focus on products that are ideal for sharing such as Starburst ‘Tear and Share’ Pouches, which are great as they are individually wrapped and offer a variety of flavours for everyone to enjoy. Building a clear display that communicates the ‘Big Night In’ occasion will also draw shoppers into the fixture and cross category promotions will certainly encourage incremental purchases.”
Don’t forget about mints. Millar Pan Drops Mint Imperials and Dark Chocolate Creams are bestsellers in convenience stores. Millar has a limited number of display stands available for retailers who carry a number of lines from the range, and are looking to make an impact in store. Retailers who are using these at the end of an aisle, close to the checkout, are driving impulse purchases, and doing particularly well. PVM says the Smint brand holds a 31% share of the sugar free mints category. Mentos NOWMints are now available in two new flavours: menthol and sweet mint, and PVM says these are ideal for busy commuters seeking on-the-go refreshments. Trebor Softmints Lemon Mint was launched last year, and the new variant offers a unique flavour and aims to continue to drive incremental sales within the mints category.
According to recent research by PVM, sharing at home represents 56% of the occasion market. Stocking a fun and eye-catching range of sharing bags can increase shopper spend, and encourage them to buy into the occasion. Fruittella core sharing bags are growing at 4.8% in total market compared to an overall sector increase of 1.2%. PVM invested over £1.5m in the brand in 2015, and sees the sharing category as a major area for growth in 2016.
The trend for fruit flavoured sweets is still popular and this is expected to continue throughout 2016. The total fruit confectionery category is currently worth £619m, according to Nielsen market research. Tic Tac, currently growing at +7.5%, is set to create excitement in-store with the addition of special edition Tic Tac Popcorn. Following the successful launch of Tic Tac Mixers, which is now worth £1.9m, the product will be available for retailers to include alongside their core Tic Tac range, driving incremental sales and offering a new flavour experience for shoppers.
As a category that is largely led by impulse purchases, offering consumers’ value for money is a key sales driver within sugar confectionery. Wrigley extended its popular range of PMPs last year for its best-selling sugar confectionery brands Skittles and Starburst, with the introduction of four additional hanging bags with a £1 price flash. The £1 price point is a key sales driver for the convenience channel, as it provides consumers with the assurance that their purchase is good value. Wrigley has seen an increase in sales of 49% in its PMP hanging bags since their launch.
Sugar confectionery is a top-selling category in convenience. It is worth focusing on bestselling lines, ensuring shelves are fully stocked, and making the most of brand investment to keep customer satisfaction high.
