Price marked packs (PMPs) give shoppers the feeling of getting better value. They also offer a point of difference that consumers can’t get in larger stores.
As shoppers continue to navigate the cost-of-living crisis, they are looking to make their money stretch as far as possible and as part of this, smaller transactions and smaller pack sizes are expected to come into play.
At the same time, there is likely to be growth in at home family dining and at home socialising, both of which are important occasions for sharing formats of soft drinks.
Wholesalers can meet these shopper needs by stocking market leading brands in a variety of PMP formats – including on-the-go and multipacks – to cater to multiple soft drink occasions.
“Our best-loved brands, including Coca-ColaTM, Fanta, Sprite, Dr Pepper, Monster, Relentless and Reign are all available in PMPs and plain packs, so wholesalers should make sure to stock up on these,” comments Amy Burgess, Senior Trade Communications Manager at Coca-Cola Europacific Partners (CCEP).
Last year, CCEP expanded its PMP range by introducing price-marked Schweppes 1-litre PET bottles. This enabled more convenience customers to enjoy the advantages of PMPs with the best-selling mixers brand in retail (Nielsen).
And so far in 2024, to help drive incremental sales, CCEP has launched PMP versions of the Costa Coffee Latte and Caramel Latte RTD ranges, offering a unique selling point exclusive to convenience retailers to help enhance their competitive edge when it comes to the (RTD) chilled coffee segment. This has only added to the popularity of Costa Coffee RTD, now worth £24.4m, up 31.7% (Nielsen).
Ben Parker, GB Retail Commercial Director at Britvic, comments: “Price marked packs continue to play a strong role within soft drinks, offering the reassurance of value to shoppers which in turn creates confidence in local retailers and how they price their products. As shoppers navigate the cost-of-living crisis, shopping habits will continue to change. Consumers are looking to make their money stretch as far as possible for them and as part of this, we expect to see smaller transactions and smaller pack sizes come into play.”
This year, Britvic is looking to support retailers further with a number of measures, including with its price-marked range.
Across the range the profit on return percentage (POR%) will be maintained so that as the price-marked packs increase in price, the cash margin grows.
“On a selection of our core price-marked pack lines including our 500ml formats of Pepsi MAX and Lipton Ice Tea, as well as Fruit Shoot, we will look to increase the price-marked pack in line with inflationary pressures as well as the POR%, to create more shared margin and an even stronger translation to cash margin,” adds Parker.
“This is as a result of recognising the importance of listening to retailers, as part of our role as a responsible trade partner, ensuring we reflect the challenges in the market at that moment.”
Matt Gouldsmith, Channel Director, Wholesale, Suntory Beverage & Food GB&I, comments: “Lucozade Energy has recently moved its 380ml single SKUs to 500ml bottles only, including Lucozade Energy Orange and Original, the Lucozade Energy Apple, Cherry and Caribbean Crush flavours and Lucozade Zero Pink Lemonade. The move also sees the introduction of a price-marked variant, RRP £1,50, available for the first time in 500ml format, offering a bigger bottle and better value for Lucozade Energy drinkers.”
The move to 500ml single bottles from 380ml PMP and existing 380ml standard pack flavours across the range enhances the options for shoppers wanting to choose the right drink for their different consumption occasions by offering them their favourite drink, in a larger on-the-go format.
Lucozade Energy 380ml bottles will still be available in multipacks, while 250ml and 330ml cans offer a great entry option for those looking for an on-the-go drink, and 900ml bottles deliver a great “drink later” option. Standard non-PMP single 380ml packs of Orange and Original flavours will still be available across Northern Ireland.
The move comes as the brand is seeing recent value sales growth of over 4% (Nielsen) YOY in the convenience channel, and the energy segment as a whole continues to deliver significant value for retailers, with a 16% (Nielsen) YOY increase in sales.
Recently, Lucozade Energy Original and Orange flavours were enhanced following 18 months of extensive research and development and input from 6,500 consumers.
“The new recipes deliver a bolder taste for the unique Original flavour and more citrusy, orange notes for Orange, giving consumers more of what they love,” adds Gouldsmith. “By differentiating the Lucozade Energy range to focus on 500ml bottles and a 380ml multipack offer, the brand is tapping into an ongoing trend for larger pack formats within the energy segment.”
The change will be supported through wholesale and convenience through in-store POS, as well as a shopper-facing campaign highlighting the new bottle size.
“Brand remains one of the core drivers for shopping the Energy Drink category, however we know that price is also a key consideration, ranking #2 in importance (Lumina) and sitting front of mind when shopping the fixture,” comments a Red Bull spokesperson.
Price marked packs can help to drive rate of sale with 75% of convenience shoppers more inclined to buy if in a price-marked pack (Lumina).
Sports & Energy is a key sector for price marked packs, delivering £86.6m in value growth YOY (+13%, Nielsen). Within Soft Drinks, Sports & Energy contributed 82% of all price marked pack growth this year (Nielsen), with Red Bull delivering more than 1/3 of this growth, adding £31m in value, +15.0% vs YA (Nielsen).
Katie Chadd, Business Unit Controller at FrieslandCampina, comments: “In the face of the current economic uncertainty, consumers are savvier than ever before whilst also refusing to compromise on taste. In line with this sentiment, FrieslandCampina’s PMP formats offer value, taste and convenience by the bottle, and continue to perform extremely well at this time.”
Chocomel introduced an inaugural price marked pack (PMP) value offer for its 250ml Chocomel cans (£1.69) last year. The PMP format is designed to help retailers boost their on-the-go beverage sales, drive impulse purchases, and bring incremental shoppers into the category, whilst ensuring a positive price perception among shoppers.
“Additionally, YAZOO offers permanent PMP variants of all core flavours as well as across its limited-edition flavours, meaning the range can be tailored to whatever best suits the store,” Chadd says. “Retailers can stock the flavours and sizes they know sell well in their locale, whilst communicating great value to shoppers and maintaining that point of difference – especially as the weather heats up and consumers are looking for a milk drink fix to quench their thirst whilst getting the benefits of dairy goodness.”
Jonathan Dennys – Head of Trade & Brand Marketing, Jägermeister, comments: “When attempting to influence consumers to explore new options and trade up from their habitual purchases, it is crucial for them to be able to clearly see what they are buying. It’s good practice to ensure that premium bottles are positioned at eye level with the pricing points clear to dispel the assumption that premium brands are always more expensive than in larger stores. By stocking price-marked packs, retailers can provide consumers with reassurance that they are being charged a fair and competitive price and help eliminate price-related barriers to trading up. Also providing a pence per ml comparison can encourage trading up as consumers are looking for value for money rather than just the lowest priced item.”
Jägermeister’s price-marked pack range is currently performing very well, as consumers are looking for reassurance that they are paying a fair price for their alcohol. Retailers and brands that leverage these packs and transparently communicate their pricing are likely to continue seeing success with the cost-of-living pressures. Jägermeister offers price-marked packs in its 50cl, 35cl, and 20cl sizes.
“Another one of our standout offerings is the 2cl Jägermeister miniatures, which have consistently performed well within the convenience sector,” adds Dennys. “These miniatures are a hit because consumers are looking for a fun and convenient way to recreate their best on-trade nights at home. They also make for perfect countertop merchandising as they are regularly bought on impulse.”
Matt Collins, Trading Director at KP Snacks, comments: “The PMP format has seen significant growth in recent years and will stay increasingly relevant as the cost of living remains high and consumers continue to be more price conscious. Retailers report that 86% of shoppers are looking for value and deals (ACS) and PMPs cater to this trend, offering consumers great value for money and clear pricing which reassures them that they’re getting a good deal. 57% of impulse shoppers buy PMPs (Lumina) with this segment driving £325m in sales within CSN (Nielsen IQ).
KP Snacks is delivering the fastest growth in PMPs at +41.9% (Nielsen IQ). Worth £129m, the KP Snacks PMP portfolio features a range of SKUs ranging from 40p PMPs to £1.25 PMPs.
“KP Snacks’ extensive PMP range caters to all tastes, occasions and budgets, perfectly positioned to engage shoppers and drive impulse purchases for retailers,” adds Collins. “Our mission is always to deliver the right products at the right price points to meet consumer needs and bolster sales for our retailer partners.”
KP’s range of large format PMPs is worth £118.6m (Nielsen IQ). The KP Snacks portfolio includes four of the top five best-selling large PMP SKUs, Hula Hoops Big Hoops BBQ Beef, McCoy’s Flame Grilled Steak, Nik Naks Nice ‘N’ Spicy and Nik Naks Rib ‘N’ Saucy. Meanwhile, KP’s smaller format PMPs are ideal for a quick and affordable snack, including Space Raiders, the UK’s number one best value brand in 40p PMPs, classic heritage favourites such as Discos, Skips and Wheat Crunchies which are available in 50p PMPs and popular family choices including Hula Hoops core range and Pom-Bear in 65p PMPs.
Ross Davison, Head of Convenience at Kepak (Foods Division), home of Rustlers, comments: “While consumers generally accept a price difference in convenience, the current pressure on household budgets will undoubtedly be putting this under greater scrutiny. 1 in 6 (TWC) are already shopping less in convenience stores in the past six months, with the number of those prepared to pay more for products vs in a supermarket falling (TWC).”
Two thirds of the population believe it is important to make savings on their grocery bills (Nielsen), however, 69% of consumers plan to shop at many stores to take advantage of offers (Nielsen) with 60% actively looking out for and trying to buy products when on promotions (Nielsen), creating an opportunity for wholesalers to enable their retail customers to appeal to shoppers.
PMPs continue to provide a vital reassurance of value, with all of Rustlers’ bestsellers available in this format, however, value isn’t just confined to the price of a single product. Product promotions also highlight good value and drive impulse purchase, such as an on-pack promotion giving shoppers something extra.
“Savvy shopping is no longer just the domain of those on a tight budget,” adds Davison. “For many shoppers, the stigma once associated with finding a bargain is waning and they’re prepared to seek these savings, becoming common practice in FMCG today. PMPs at accessible price points help to attract new customers and encourage repeat purchase from both brand loyalists and impulse shoppers.”
In 2024 Cadbury, the nation’s favourite chocolate brand (Nielsen), is celebrating its 200th year. Throughout the year, the brand will be engaging in a multitude of activities, promotions, and celebrations to mark the landmark anniversary, and the festivities will kickstart this month with the return of some of its most iconic retro Cadbury Dairy Milk packaging, as well as an exciting new TV advert.”
Susan Nash, Trade Communications Manager at Mondelez International, comments: “The 180g Limited Edition Cadbury Dairy Milk Bars, RRP £2.00, as well as 95g PMP packs, RRP £1.35 will be available in seven different collectable designs, featuring packaging from across the ages, starting as far back as 1915 and running right up to the present day. The striking, nostalgic packs will add real theatre to retailers’ stores, and delight shoppers for whom the Cadbury brand has been an ever-present in their lives. Shoppers from every generation should be able to recognise the Cadbury Dairy Milk bar they saw on store shelves when growing up, with the inside of each pack illustrated with a special artwork documenting some of Cadbury’s milestone moments.”
Mark Roberts, Marketing & Trade Marketing Director at Perfetti Van Melle, comments: “More than just the UK’s number one lollipop brand, Chupa Chups (Circana), has introduced Fr-ooze Pop, a delicious new playful sweet treat with oozing candy gel. The addition to the iconic Chupa Chups portfolio is a fun twist on the classic lollipop and is designed to be enjoyed with friends. Remove the lid, lick the lollipop and squeeze to reveal the delicious tasting candy gel! Fr-ooze Pop comes in three popular flavours – strawberry, blueberry, and tropical – certain to be snatched up by loyal Chupa Chups customers.”
Chupa Chups, diversified further into the singles market with Chupa Chups Incredible Chew. Incredible Chews have a long-lasting soft chewy texture and are available in three fun and refreshing flavours – Green Apple, Orange, and Cola.
The Chupa Chups Incredible Chew launched into the UK market in August 2022 in a convenient 45g stick format. Each piece is individually wrapped for hygiene and freshness, making them the perfect on the go sweet treat.
The brand, which leads the market generating over £8million MAT, aims to diversify its lollipop and candy portfolio, bringing new and exciting products to the category. It is targeting existing consumers who know and trust the quality of its products but want to experiment with new candy formats.
Chupa Chups has diversified its Big Babol chewing gum portfolio with a colourful and mouth-watering new flavour, Green Apple.
Soft and chewy in texture, Big Babol Green Apple is available in six pieces per pack, with the chewing gum individually wrapped for hygiene and freshness. With long-lasting flavour, these extra-large, fruity parcels of joy can be shared amongst friends, or savoured alone.
Parfetts has announced a significant expansion of its own label range from 125 lines to around 150 by the end of 2024.
The range is developed to meet the specific needs of convenience retailers and consumers. Aiming to give consumers high-quality products at a low price while delivering impressive margins for retailers.
The wholesaler has extended the existing range of bagged sweets, launching three Stix and three gummies variants, all price marked at £1. The new products saw high demand on launch and sold out of the initial production in less than a month.
The launch of a new white bread SKU sold over 5,000 units in the first three weeks. January saw the launch of a new wine range, Darwin’s Fox, which comes in three variants. The range has been in depot for less than a week and sold 500 cases.
The wholesaler has also recently introduced tinned tomatoes, baked beans, baked goods and a number of other key products to the range.
Commenting on the own label range, Jamie Ferguson, head of marketing at Parfetts, said: “Consumers are still feeling the pinch, so it’s essential for retailers to provide value across key product lines. Parfetts is also working hard to optimise margins for retailers, and that’s why we are expanding our own label range in 2024.
“We are also continuing our strategy of helping retailers make more margin by continuing our programme and scale of promotions across the year.”
The Parfetts own-label range has proven successful and offers everything from impulse categories to household products, such as soft drinks, energy drinks, snacks and pet food. It has seen over 25% year-on-year growth to date.
The launch of Parfetts range of energy drinks, under the Xenergy Brand, consists of 10 products, generating over 20,000+case sales per week and outselling the leading brands in some cases by as much as 300% on certain SKUs. While monthly sales of own-label toilet rolls have grown by 411%, and some months outsell all the other brands put together
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