Convenience shoppers are looking for value at a fair price with shoppers’ perception of “good value” being more important than price. The average shopper spends less than 4 minutes in store (the coffee shopper closer to 6 minutes)*. Price Marked Packs on the lead category SKU’s will give the perception of value through pricing transparency for those on a grab and go mission. Additionally, PMPs will help shoppers navigate the category better, encouraging trade up considerations for those browsing longer. In the convenience channel, shoppers expect to pay a little more for the convenience element and will spend in the region of +11% more vs the same item at a supermarket*. PMPs appeal to almost two thirds of convenience store shoppers, those with children and those shopping in convenience stores 2+ times a week***.
Nescafé is the #1 brand, with the most loyal shoppers in the segment and 7.9m cups drunk every day. Core Coffee makes up 66% of Hot Coffee Value Sales in the Wholesale and Convenience channel**. 31% of Regular and Premium coffee sales come from PMPs in the Wholesale and Convenience channel**. In independents, Core is driven by Regular and Premium (92% combined value share of core coffee)**. It is important that the key sellers in these segments are stocked, merchandised in the best locations and always available so shoppers can find what they are looking for.
In the Wholesale and Convenience channel, Nescafé Gold Blend and Nescafé Original are the best-selling brands in the Regular and Premium coffee segments. In March 2020, supported by £3m of ATL Media Investment, Nestlé will be relaunching Nescafé Original 100g PMP at the lower price of £2.99, Nescafe Original Decaf 100g PMP also at £2.99 and Nescafe Gold 100g PMP at the new lower price of £3.49. Nestlé are also relaunching Nescafé Original In1’s at £1 PMP in a recyclable carton that will ensure great visibility on shelf, whilst also being better for the environment.
Ensuring you stock the right range of core products, including PMPs, is essential for continuing to drive your sales of core coffee alongside the rest of your coffee range.
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