According to biscuits market leader United Biscuits, the category’s perception as an affordable treat puts it in the perfect position to boost impulse sales, and by knowing as much about the category as possible, you can put yourself at an advantage.
by Kevin Scott
Biscuits remain an affordable treat,” said United Biscuits Mark Sugden, Director Market Strategy & Planning at the company’s Face to Face presentation day in London last December. It’s a simple statement and one that retailers would do well to take note of. In a time of tightened belts and prudent pursestrings, knowing what your customers are willing to splash out in essential to making the most of your store.
United is well-placed to comment. Okay, it may have sold its KP Snacks division, but biscuits and cakes is where it has always excelled through brands like McVities, Jacob’s, go ahead! and Mr Kipling.
Biscuits is the leading snack food in the UK according to UB. Penetration stands at an incredible 99.1% (compared to chocolate and cake – in joint second place with 97.8%). It also has the highest frequency of purchase with an average of 42.8 per year. Biscuits are found in 12.1% of all shopping baskets – which again is more than chocolate. In fact, the average Brit munches their way through 8.5kg of biscuits per year – which is more than any other country.
Another aspect that makes biscuits attractive to retailers is the penetration of sales relative to promotions – i.e. the amount of incremental sales that come as a result of discounted pricing. Only promotion chocolate has a high conversation rate and that means that when you put biscuits on promotions more people are enticed to pick up a packet.
When it comes to market share, according to AC Neilsen United Biscuits leads the way with 25.2%, ahead of Burton’s Biscuit Company with 7.7% and Fox’s Biscuits with 6.9%.
It’s not just sweet and chocolate biscuits that perform either – UB has noted that savoury biscuits are up 16%.
The company is starting 2013 by encouraging retailers to identify with and react to a number of consumer needstates. These are: Keep Me Going, My Treat, Auto-snacking, Healthy Choices, My Indulgent Time, Meal Times, Connecting With Others, and Break Up The Day.
By ensuring the right range is displayed in the right way, UB is confident that retailers can increase sales. In fact, the company’s research suggests that the right range can boost sales by up to 27% while utalising the right space in store for the biscuits category can lead to an increase in sales of up to 14%.
