How important is the crisps segment to a typical local retailing outlet?
The crisps segment is a really exciting and innovative area within retailing and we only expect the growth to continue. It is extremely versatile and important staple for any retailing outlet; it can allow retailers to offer their shoppers a number of options.
We know that consumers are increasingly reporting a heightened interest in their health and wellness1, therefore product innovation has followed suit. With ‘Better For You’ (BFY) options becoming increasingly popular with health conscious shoppers, this is a key focus area for us at PepsiCo and it is important that retailers remember that ‘healthier’ can mean different things to shoppers. It’s vital to have a well signposted range that highlights each product’s unique positioning, especially in a fast-growing segment performing at +38%2. Our popular Walkers Oven Baked range contains 50% less fat and is the biggest BFY brand in the savoury snacks category, whilst still delivering the same great taste of Walkers that consumers love.
How is the category performing in Scotland?
The savoury snacks category is growing at +5.7% in Scotland3 and we expect it to continue to grow, particularly as our data tells us that 99% of the population are buying into the category every year. Both the number of trips people are making to store and the amount of items they are buying are in growth4 meaning that retailers constantly need to stock up on their crisps and snacks offering.
At PepsiCo, we analyse latest consumer trends to develop the best innovation which will appeal to ever-changing shopper demands in the crisps segment, as it is insight led-innovation which helps the segment to perform well. Last year, 16% of sales within the segment were new products5, showcasing the importance of getting this right, but also getting the right core range as the importance of this is also significant.
What is Walkers share of the convenience market?
Walkers is the nation’s favourite crisp brand6 and this year celebrates its 70th anniversary of supplying retailers with our trusted and much loved core range, with Walkers selling more than double its nearest competitor7. Almost 90% of UK households buy PepsiCo snacking brands8, meaning that retailers can rely on Walkers to drive their snacking sales9. The top 25 single SKUs account for 50% of all single sales10. Stocking the right core range is essential to driving retailer’s sales and meeting consumer demand, along with staying well informed of emerging trends. Shoppers want to see products they are familiar with alongside innovation, giving them a wide variety of choice.
Sharing is now the biggest segment in the savoury snacks category11, within this segment Walkers owns three of the top four snacking brands in the impulse market12.
What are the top selling flavours in the core range, in order?
50% of Walkers single sales in Scotland come from just 17 products and 13 of the top single SKUs are PepsiCo.
At PepsiCo we have a strong insights-led approach. Understanding the savoury snacking category and the shopper as we work closely with retailers and data providers to advise on the right core range to meet their needs. The breakdown of our recommended core range across single-serve formats in Scotland is below:
- Walkers Cheese and Onion 32.5gm
- Walkers Ready Salted 32.5gm
- Walkers Prawn Cocktail 32.5gm
- Walkers Salt and Vinegar 32.5gm
- Walkers Smoky Bacon 32.5gm
- Walkers Roast Chicken
- Walkers Pickled Onion 32.5gm
- Walkers Tomato Ketchup 32.5gm
The breakdown of our recommended best-selling core range across sharing formats in Scotland is13:
- Doritos Chilli Heatwave 80gm PMP
- Doritos Tangy Cheese 80gm PMP
- Cheetos Twisted Flamin’ Hot 72gm PMP
- Doritos Cool Original 80gm PMP
- Quavers Cheese 52gm PMP
- Sensations Thai Sweet Chilli 73gm PMP
- Wotsits Cheese 56gm PMP
- Walkers Cheese & Onion 80gm PMP
It’s often said that the Scots have different taste preferences to their southern neighbours when it comes to crisps. How true is this?
Actually, we think there is some truth to this. We recently celebrated our more unusual flavours and the areas in which they are most popular, and Pickled Onion sells above the national average in Scotland.
The six flavours underwent a pack design makeover to elevate their popular credentials, as well as carrying an on-pack promotion, which gave shoppers the chance to win £5,000 every week. Further excitement was also generated through the accompanying TV campaign that showcased the eccentric ways that consumers display their love for their ‘favourite’, with Scotland being highlighted by a Scot getting a Pickled Onion heart tattooed on his arm.
The flavours and their respective areas are: Pickled Onion (Scotland), Tomato Ketchup (The North), Smoky Bacon (The Midlands), Worcester Sauce (South East), Marmite (South West) and Beef & Onion (Wales).
What ranging advice would you give to local retailers in Scotland?
Depending on where stores are located and the dominant shopper mission – top up shop or purchasing food to go – different ranges and formats can work well.
Food-to-go
In a high commuter area, in a town centre or at a forecourt, food-to-go works really well as shoppers typically pop in to the local shop looking for a quick snack or lunch option. Shoppers on a food to go mission are spending just three minutes in-store and therefore eye-catching merchandising and product offering to secure that quick sale is really important.
Retailers should consider where they locate common food to go items such as sandwiches, crisps, soft drinks and snack bars, making sure these are accessible and towards the front of store. Over 70% of food-to-go shoppers say they like assurance of knowing the total cost of their meal. They are therefore on the look-out for offers when buying food to go and clear sign-posting and a broad offering is key when catering for this occasion.
Top-up shop
Having both a top-up shop and on-the-go offering is imperative to driving savoury snacks category sales and meeting shopper needs. With 32% of visits to convenience stores being for a top up shop, there is value in retailers competing with the multiples and offering multipacks and sharing formats. The more that shoppers can purchase from their local store as and when they need it, the more often they’ll be inclined to visit. Our sharing portfolio, such as Doritos, Poppables and Sensations are ideal for people looking for snacks to enjoy with friends or family.
What merchandising advice would you offer?
We offer retailers continued merchandising support via our field sales team and www.countsformore.co.uk, our online platform dedicated to rewarding retailers and offering advice. My top tips for how best to manage the savoury snacks category on the shop floor are:
- Shoppers are more likely to engage with gondola ends at the front of store, versus the rear, so retailers should refresh this space regularly with the latest new products in-store taking priority
- For the top up shopper who arrives with a list, ensure the main fixture is clearly signposted and that similar types of products and brands are blocked together to ensure they can find what they need
- Use social media to promote deals or seasonal products to your shoppers – only 28% of stores use Facebook14, but think about how many times a day your shoppers will be checking this app
- Consider secondary siting to make the most of the Walkers brand in your store. Branded PoS is available via the PepsiCo sales team of www.countsformore.co.uk.
- Site crisps and snacks in secondary positions so they can be easily spotted next to other popular big night in products like beer, wine, spirits, soft drinks or confectionery
- Seven top Health & Wellness concerns identified by 1,827 UK juice consumers aged 18-69
- Nielsen MAT to WE 01.09.18
- Nielsen, Scotland, WE 06.10.18
- Kantar Worldpanel
- Nielsen Total Coverage, 2017
- Based on total UK sales data, Walkers crisps were the best-selling crisps brand as recorded by Nielsen (52 week data to 18.11.17)
- The total RSV for Walkers Crisps vs nearest competitor (Nielsen Scantrack, value sales MAT WE 09.09.18)
- Kantar 2018
- Siop y Pentref Dodmaels Walkers Savoury Snacks Products EPOS Data 76.2% LFL 2016-2017
- Nielsen Scantrack, value sales WE 04.08.18
- Nielsen LT 12, Total Impulse WE 15.09.18
- Nielsen LT 12, Total Impulse WE 15.09.18
- Nielsen Scotland data L13wks, Value Sales, to we 13.10.18
- ACS Local Shop Report, 2017
