Christmas, when done well, can be the most lucrative period of the year for wholesalers and retailers.
Consumer spending habits change significantly when it comes to the festive season, with a 20% and 38% increase on spending on food and alcohol respectively in December 2021 compared to a typical month (Bank of England).
With consumer spending in December 2020 and 2021 eclipsing pre-pandemic levels (ONS) – and with Christmas this year set to be the first free of restrictions for three years – we can expect it to be a prime opportunity for the whole retail industry.
Adding sparkle to festive proceedings, Prosecco is a known big seller around Christmas.
Last year, sparkling wine sales grew 22% with Brits spending £15.5m on fizz during the festive season (Kantar).
This should come as no surprise to retailers – pre-pandemic one in every four bottles of Prosecco in the UK Off-Trade was sold during the eight-week run up to Christmas (Nielsen).
“As consumers look to make their celebrations stand out, wholesalers should encourage their customers to mark the occasion with premium sparkling drinks,” comments Sandra Brunet, Marketing Director, Campari Group UK. “This should not be limited to the traditional Prosecco or Champagne offerings, with guidance on how to elevate sparkling wines into sophisticated serves – such as adding Aperol, Campari, or other flavoured liqueurs – creating an excellent value add opportunity for Wholesalers by helping their customers to increase in-store spend.”
The Aperol Spritz is the perfect way to encourage consumers to enjoy Prosecco in an alternative way – combining three parts of Prosecco with two parts of Aperol, one part of soda water, and a slice of orange for garnish, to create a simple but iconic serve.
This classic ‘build-in-the-glass’ cocktail adds a touch of elegance and sophistication to any festive celebration.
It also presents a great opportunity for retailers to help shoppers premiumise their Prosecco moment this Christmas by enjoying the best-selling branded cocktail in the UK (CGA). Wholesalers can add further value by encouraging their customers to tap into the popularity of cocktails at home – a trend that has risen in prominence in recent years, especially during the COVID-19 lockdowns.
“The wholesale channel should look to leverage this growing trend towards cocktails to drive in-store spend during the festive season, encouraging customers to add new product lines in preparation for the spike in Christmas shopping, such as the Aperol Spritz Gift Pack,“ adds Brunet. “In fact, 60% of consumers said they gifted spirits in the last year, and 71% of those occasions were over the Christmas period, presenting a lucrative opportunity for wholesalers to encourage their customers to stock up on gift packs to ensure they capitalise on the occasion.”
“With 63% of shoppers looking for ideas and inspiration to make Christmas feel more special (SAVVY), retailers should consider eye-catching and impactful festive displays for core product lines. “For example, a Prosecco display in-store can be given a festive refresh by incorporating complementary products to elevate the Christmas Prosecco experience. By positioning Prosecco alongside Aperol and soda water, retailers can create a one-stop shop for a premium at-home cocktail, appealing to consumers looking to enhance their festive season and increasing basket spend. For example, offering retailers an Aperol Spritz Gift Pack, with the key ingredients available for a set price, invites them to opt for a more convenient package rather than individual product lines.”
Sunny Mirpuri, Director for Wholesale & Convenience, Budweiser Brewing Group, comments: “The rise in premium and super-premium brands we saw during lockdown isn’t going away. Now beer drinkers have the taste for premium, we’re seeing the popularity for beers, like Stella Artois and Corona, growing. We expect to see this trend continuing as consumers look to make their festive season more special, especially after the last few years of restrictions and self-isolation.”
Seltzers are another growing category wholesalers need to consider this Christmas. Although they aren’t traditionally thought of as a festive drink, their popularity has skyrocketed over the last few years. Seltzers are also a great low-calorie option, which is perfect for people who are worried about over-indulging over the Christmas season.
“The increased popularity of no-and-low alcohol beers is not just a flash-in-pan trend but evidence of a wider cultural shift,” adds Mirpuri. “Retailers must not ignore the growing customer base who are looking to moderate their intake whilst still wanting to drink something special. Last Christmas, we saw a 21% rise in sales of no-and-low alcohol beers (Nielsen).”
Data shows that no-and-low products gain a greater share of the category at times of the year where social gatherings are more prevalent, such as Christmas. We’ve also seen consumption increase at occasions where alcoholic drinks are consumed – demonstrating the opportunity for retailers catering for consumers looking for no-and-low products ahead of Christmas parties. A solid option is Stella Artois Alcohol-Free, which saw an 80% increase in volume increase during Christmas 2021 (Nielsen).
Mid-size packs have always been key for convenience and over the last few years, mid-size packs were the clear winners over larger packs (Nielsen), which is not surprising as many people celebrated in smaller groups during the pandemic.
“This year, we expect larger celebrations to come back in a big way so it makes sense for wholesalers to be prepared with stocking larger packs,” says Mirpuri.
Stella Artois is also a highly ‘sociable’ drink, which over indexes in planned and unplanned gatherings with family and friends. In fact, it is the most important brand in the ‘planned social’ occasions, accounting for 14.2% of beers consumed, making it the perfect Christmas stock.
In April, the launch of Stella Artois Unfiltered in the Off-Trade proved to be a roaring success, tapping into the growing popularity of unfiltered larger. Stella Artois Unfiltered is now available in 660ml, 12x330ml bottles and 6x330ml cans.
Over the 2021 Christmas period Stella Artois had the biggest volume share gain of 0.8%pts cementing position as number one beer brand (Nielsen).
Last year, it was clear that increased promotional support helped boost sales in Premium Lager, World and Craft/Speciality (Nielsen), which offers a clear opportunity for wholesalers to double down on promotional packs ahead of the Christmas rush.
“Christmas offers a clear opportunity for wholesalers to maximise sales, but the unfolding cost-of-living crisis adds an extra layer of complexity this year,” Mirpuri continues. “Since consumers may be more discerning about how they spend their hard-earned cash, they might not want to take a risk on trying new brands. Retailers will have to rely more heavily on brands and products that consumers already know and love, and wholesalers need to be prepared for this demand.”
Chris McLaughlin, Commercial Director at St Pierre Groupe, comments: “The Baker Street Christmas range launched in 2020 and despite the fact it was a Christmas season like no other, the branded offering surpassed sales of £1 million. For 2021, buoyed by the successful launch, we extended both the product range and its distribution and sales grew by more than 30 per cent.”
Initial research demonstrated a huge opportunity for Stollen products and traditional Christmas flavours in new, accessible formats.
“Our research showed that products that could cater simultaneously to impromptu snacking and festive sharing occasions would be well received and first year sales proved us right,” adds McLaughlin. “Despite lockdowns, Christmas is a time when consumers indulge and whilst many gatherings were smaller than they might have been, consumers were prepared to spend more on festive food to make up for months spent apart.”
For 2021, St Pierre Groupe added a new SKU of its innovative Stollen Bites and a Chocolate & Orange Cake Truffle. These snacking formats once again proved popular and contributed 55 per cent of the full range sales during Christmas 2021.
Last year, St Pierre Groupe extended the Christmas range by adding Stollen cookies and Chocolate Orange Cake Truffles. Chocolate orange is a perennially popular flavour combination, and one that consumers are accustomed to at Christmas. After sales in 2021 were so strong, the brand explored other flavours that would meet consumer expectations of an indulgent Christmas product.
Caramel was a flavour highlighted by the brand’s consumer research carried out as part of the product development process. It strikes the balance perfectly for the Baker Street consumer. Caramel was the preferred option during research and development and so new Caramel Cake Truffles is launching from September 2022. As a new-on-shelf product, it provides opportunities for retailers to tap into the gifting market and the snacking occasion thanks to its multi-pack format.
The multipack format also appeals for food service operators who are able to utilise the range to create festive sharing plates, in line with the growing restaurant trend for sharing dishes.
“The Baker Street range caters to consumers looking for convenient quality; the whole range ticks the boxes for quality and authenticity, so whether it’s picked up as a last-minute offering to take round to a friends, left out as festive nibbles for guests, or bought as an indulgent treat for solo-snacking, Baker Street is always there, ready to be enjoyed,” says McLaughlin.
As a result of expanded distribution, St Pierre Groupe is investing more in marketing support than in previous years during Q4, with consumer media advertising and dedicated social media and PR campaigns to drive brand awareness and trial.
Susan Nash, Communication Manager at Mondelez International, comments: “Once again, Mondelez International will bring the nation their festive favourites this year with a raft of delicious confectionery and biscuit treats for everyone to enjoy. Christmas can be the most magical time of year for retailers’ seasonal sales, and Mondelez International will be helping them to make the most of it with treats from iconic brands such as Cadbury, OREO, Maynards Bassetts and Green & Black’s. Get your sleigh ready – this year’s season is set to be the most special yet!”
Mondelez International is central to Christmas confectionery, leading the market with the #1 SKU in seven sub-categories – seasonal sharing, advent calendars, selection boxes and tree decorations, just to name a few (Nielsen). Total seasonal sales grew over 6% last year (Nielsen). In seasonal biscuits, Mondelez also has a strong presence, growing over 3% (Nielsen) last year with top-performing products from Cadbury Biscuits and OREO.
This year, Mondelez is bringing to market a brand-new design across the seasonal range. Products will have new and eye-catching designs that dial-up the ‘specialness’ and build on the seasonal and gifting cues on pack. This new look will help to drive further value for retailers and shoppers as their festive favourites will have a fresh touch of Christmas magic and are sure to create excitement in-store.
The season starts as early as September, with shoppers beginning to cosy up inside due to the darker nights and colder weather. As a result, retailers may see an increase in ‘Big Night In’ sharing occasions, which they can cater to with sharing packs, multipacks and block formats. Cadbury’s range of sharing pouches such as Cadbury Dairy Milk Classics and Cadbury Roses are shopper favourites in the category, with the Cadbury Heroes pouch achieving the #1 SKU in grocery.
In October, the upcoming seasonal occasions are prevalent in shoppers’ minds, and many will be looking out for self-treat and sharing novelties. Mondelez International are bringing a brand new innovation to the market with the launch of Cadbury Mini SnowBalls 110g Bar, which sees the ultimate combination of the nation’s #1 sharing novelty treat (Nielsen) together with Cadbury’s iconic heartland bar format. OREO will be bringing a playful twist to Christmas with seasonally coloured cremes through the classic Original flavour. OREO Festive Colours are perfect for sharing, with three 114g roll packs which include red, green, and white coloured-creme options. Cadbury Puds made a much-anticipated return last year, and were quickly a huge hit with shoppers becoming the season’s #1 NPD.
By November, the countdown to Christmas has truly begun. Shoppers will start to begin preparations for the festive season with the purchase of advent calendars and tree decorations. This year, Mondelez International is bringing consumers a Christmas challenge in the form of brand-new Cadbury Dairy Milk Advent Bar. This unique bar features 25 individually-numbered chunks of the nation’s favourite chocolate (Nielsen) to see shoppers through the lead up to Christmas, with an enticing, resealable wrap that is sure to stand out on shelf. Tapping into festive fun, this unique proposition will drive excitement in stores – the ‘One Chunk a Day Challenge’ is something everyone can take part in.
Emily Owen, Celebrations and Gifting Senior Brand Manager at Mars Wrigley, comments: “9 in 10 consumers buy confectionery around the Christmas period making the category hugely important for wholesalers looking to drive sales (Nielsen). Wholesalers should look to remain up to date with consumer trends to drive confectionery sales.”
Mars Wrigley’s extensive confectionery range is synonymous with the Christmas period, ranging from the No. 1 self-eat Maltesers Reindeer treat (Nielsen), to the iconic Celebrations sharing packs and Maltesers and Galaxy Truffles gift boxes for the all-important gifting rituals.
Christmas 2021 was focused around connecting with loved ones and celebrating together which heightened the festive rituals that we typically see each year.
“Gifting remains the biggest shopper ritual for the festive season, even as the cost of living continues to rise, with consumers looking for affordable but high value options,” adds Owen. “Mars Wrigley’s Christmas portfolio includes consumer favourite brands at a variety of price points to cater for all shopper missions.”
The boxed range offers a simple gifting solutions for shoppers, catering for all occasions and budgets Maltesers box, brings 1.2m unique households into the everyday boxed category (Nielsen), and is the second largest everyday boxed brand at Christmas, making it a must stock for wholesalers.
Selection boxes will remain a key product offering in 2022 to accommodate the gifting ritual, following the selection box category growing +15% in 2021 (Nielsen). Mars Wrigley offers a blockbuster collection filled with consumer favourite treats in a range of sizes and prices to cater for all. These include Galaxy Christmas Collection, Maltesers & Friends, Milkyway Universe and a Skittles & Friends fruity confectionery twist, all of which come in a sustainable carton and cardboard tray.
Flavour and variety remain key drivers for chocolate and confectionery, especially during the festive season. Consumers are looking for unique offerings from their favourite brands and flavours such as orange, mint and dark chocolate which are amongst the most popular.
Orange continues to be a popular flavour in chocolate, with the market seeing a +20% growth in orange chocolate (Nielsen).
“Stocking products such as the Galaxy Block Orange can help wholesalers meet this demand, driving core confectionery sales during the festive period,” says Owen.
The mint flavour has also been growing consistently YOY in all segments of confectionery but is growing fastest in traditional seasonal categories. Mars Wrigley will be bringing back the eagerly awaited Maltesers Mint Reindeer, an exciting flavour extension set to appeal to the growing consumer base demanding mint flavoured products. These will be available in the self-eat and Mini Reindeer packs to cater to the consumer growth trends of these formats.
The growing popularity of home baking has encouraged many consumers to get their bake on and prepare indulgent treats to share with family, friends and colleagues. As the biggest seasonal celebratory occasion, Christmas is the time to make home bakes extra special by incorporating additional treats, such as Maltesers and Maltesers Mini Reindeers. Stocking core bitesize formats, as well as singles, of the top-selling formats will be key for wholesalers to drive chocolate confectionery sales this festive season.
White flavoured chocolate has grown in popularity this year, growing by 73% (Nielsen). Mars Wrigley is responding to this consumer need, with Limited Edition Maltesers White. This limited-edition SKU is designed to bring in younger shoppers to the category, driving retail sales and wider category growth.
Alongside Maltesers White Limited-Edition Truffles, Galaxy, the UK’s No. 2 confectionery brand, is also launching a new Truffles Assortment for this year’s festive season. Featuring smooth chocolate and all new caramel and salted caramel truffles as part of the collection. The Truffles Assortment is bound to be a consumer favourite, with salted caramel being the 6th most popular flavour in chocolate (Nielsen). This indulgent premium product is set to provide consumers with a treat to gift to loved ones this festive season.
Mars Wrigley will be shaking up the category with the launch of M&M’s Santa. These magical chocolate hollow shaped M&M’s characters filled with mini shakeable M&M’s are expected to excite and engage consumers, bringing the fun of M&M’s to consumers this festive season.
Matt Collins, Trading Director at KP Snacks, comments: “Christmas represents a huge opportunity for retailers to drive sales and footfall, and the crisps, snacks and nuts (CSN) category is critical over this period. With in-home snacking rising over the festive season and shoppers more willing to trade up to premium products, retailers should be prepared to captialise on CSN this Christmas.”
Christmas sees an increase of social gatherings as people entertain friends and celebrate with family, creating a rise in snacking occasions, with 49% of consumers saying snacks are a must-have for an evening in (Mintel). Worth £1.4bn (Nielsen), sharing is the largest segment in CSN and is increasingly important over the festive period, with a 74% increase in packs bought versus the rest of the year (Nielsen).
Nuts are a perfect sharing choice for Christmas snacking, growing in popularity across the festive period, with a 60% increase in people purchasing nuts (Nielsen at Christmas.)
Recognised for their high protein content, natural credentials and nutritional benefits, nuts also appeal to shoppers looking for permissible snacks that don’t compromise on great taste. As the market leader in the nuts segment, worth £81.2m (Nielsen), KP Nuts is well placed to drive basket spend.
Available in a range of flavours, KP Nuts are a great accompaniment to a cold drink. Popular KP Nuts flavours, Original Salted, Dry Roasted and Honey Roast Peanuts will be available in KP Caddies and large sharing packs, ideal for sharing at Christmas events. Our Nut Caddies are also fully recyclable, including the lid, and contain 60% recycled content, saving the equivalent of 6.63 tonnes of plastic.
Consumers will be on the hunt for bold flavours and products this Christmas. Launched earlier this year, its KP Flavour Kravers range is available in three delicious flavours: Flame Grilled Steak, Smokin’ Paprika, and Fiery Caribbean Jerk Sauce. Well-placed to tempt festive shoppers, Flavour Kravers look to ignite interest from younger consumers to drive sales, with this demographic over-indexing in bold flavours (Kantar).
Butterkist is the nation’s favourite popcorn brand and provides the perfect accompaniment to a Christmas movie. Bringing a touch of indulgence, Butterkist Crunchy Orange Chocolate flavour toffee popcorn bridges the gap between popcorn and chocolate confectionary.
“As excitement builds for Christmas celebrations, shoppers will seek simple ways to make gatherings and evenings in feel more special,” adds Collins. “Snacks are perfect for adding extra fun to all festive occasions. Over the Christmas period, shoppers are willing to spend more on higher quality CSN products (Nielsen). “Retailers should be prepared to maximise on these trading up occasions by broadening their product range to include premium options over the festive season.”
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