With confectionery remaining one of the most consistent performers in convenience, the trend for sharing is having a greater influence on range than ever before.
Consistent category growth is not an easy thing to come by, but in the confectionery category, sales only ever seem to grow one way, making it bankable for retailers – a rare asset in such times. The growth isn’t enormous, but +0.6% in a £5bn market makes its mark. Within this huge market, chocolate is worth £3.9bn and is growing ahead of the market at 0.9%.
Impulse opportunity remains crucial to grabbing your share of this growth. With as much as 70% of confectionery bought on impulse, it is the single most impulsive opportunity for retailers – which means it’s an unbeatable profit driver. To get in-step with consumers and increase your own sales in this area, ranging and merchandising is key – and not just in the main fixture, but throughout the store, as shoppers browse on different missions and in different fixtures.
Share and share alike
What began as the Big Night In opportunity has become one of the major missions in convenience, and part of this huge success is sharing bags of confectionery. Mars performs strongly here with four of the top five lines, including Maltesers, which is the UK’s leading bitesize brand.
A rise in consumption trends like sharing, which has seen consumers favour Treat Bags and Pouches, as well as boxed chocolates, has contributed to category sales – with increases in 6.3% and 1.9% respectively.
Mars Chocolate enjoyed encouraging growth in sharing formats in 2015, with its pouch and block formats performing strongly, generating a growth of 6.6%, while sales of boxed chocolates grew by 4.1%.
An increased investment in M&M’s also proved to be a masterstroke, with the brand being the fastest grower in the top 20. Mars has indicated that 2016 will see more of the same from M&M’s, with hints about Euro 2016 and the Rio Olympics being central to these plans.
The block sector is one that retailers have been able to drive sales with over the last couple of years. As prices on large blocks become more competitive, retailers have seen sales rocket. And suppliers, never slow to respond, have increased their offerings here. Cadbury in particular has a stronger range of blocks than ever, and this was strengthened last month with the addition of ‘small tablets’ of Cadbury Dairy Milk Medley. Available in two 93g tablets – the first with dark chocolate chips, biscuit and fudge pieces, and the second with dark chocolate chips, caramelised hazelnuts and raspberry pieces, Mondelez International is confident enough in the new range to throw £3m in marketing behind it. Available in cases of 15, the products have an rrp of £1.49 and are available as a £1 PMP.
Susan Nash, Trade Communications Manager at Mondeléz International, said: “Growth in the category is being driven by brands that are innovating, investing and delighting consumers. We believe that all our NPD offers something that is innovative and exciting whilst meeting specific consumer needs. We also continue to back these products with strong marketing campaigns, all of which helps to ensure that our new product launches have real longevity in the market.”
It’s not just chocolate that is a big winner on the Big Night In though. Tony Lorman, Wrigley European Confections Business Unit Director reminds retailers: “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.”
Promotions & PMPs
With over 70% of confectionery bought on impulse, chocolate is a valuable option for retailers to include in promotions. PMPs reassure shoppers they are getting the best value for money, and provide the perfect chocolate treat for night in with friends and family. They’re also a great way for retailers to grow sales in store and attract the attention of customers.
Mars Chocolate’s range of popular PMPs includes its £1 Treat Bags, with Maltesers, Galaxy, Minstrels and M&M’S all available at a set price, as well as the large Galaxy £1 block lines, all of which has seen impressive growth in recent months.
It’s not just sharing products that benefit from price marked packs. Mars Chocolate UK has also recently extended its PMP range to drive more sales in store. Mars, Snickers, Twix, Bounty and Maltesers singles are now permanently available in price marked packs with a new rrp of 50p. “PMPs reassure shoppers they are getting the best value for money, so is a great way to grow sales in store and attract customer attention,” says Bep Dhaliwal, Trade Communications Manager at Mars.
That £1 mark is far-reaching. Wrigley extended its range of PMPs last year on Skittles and Starburst, with the introduction of four additional hanging bags with a £1 rrp price flash. The company says it believes 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. “We have seen an increase in sales of 49% in our PMP hanging bags since the launch of our latest PMP lines,” says Lorman.
Jon Eatly, Wrigley Customer Excellence Director, gives his seven simple steps to help retailers successfully maximise confectionery sales:
- 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 and quicker
- Encourage additional purchases using cross category promotions, 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
- 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.
