PMPs have been successful with convenience stores over the past decade due to the product’s value-for-money which is communicated clearly to shoppers.
They also encourage impulse purchases with customers, thanks to the price point.
In our current climate, and with the cost-of-living becoming more expensive, retailers are looking to stock PMPs as it gives their customers confidence that they are getting the best deal.
“With the trend in sharing bags growing, Squashies continues to be a huge success story for Swizzels and is now the number one sugar confectionery brand, continuing to grow 3.8% (IRI),” comments Mark Walker, Sales Director at Swizzels.
Including 4 different flavours, such as the latest Rhubarb & Custard flavour, Squashies is available across £1 PMP hanging bag formats and a 45g pocket sized treat size. According to research, price is the no.1 factor when purchasing singles confectionery (Lumina) so this 50p PMP is a must stock.
Following an agreed license with Universal, Swizzels recently produced a limited-edition Minions-themed range of confectionery to coincide with the UK release of Illumination’s Minions: The Rise of Gru.
The collection includes a brand-new Banana and Blueberry flavour of Squashies, presented in blue-and-yellow striped packaging to echo the Minions in their dungarees.
Wholesalers can purchase 120g PMP packs in cases of twelve. RSP £1 per hanging bag.
Swizzels also launched Minions Tropical Chew Bars – a brand-new product featuring two tropical flavours: Peach & Passionfruit and Mango & Pineapple. Vegan-friendly, the chew bars are presented in vibrant packaging that features a different Minion on each product.
Wholesalers can purchase in 120g packs in cases of 12. RSP £1 per hanging bag.
The final product in the range is Minions Tropical Fizz individual chew bars, which launched in June, RSP of 15p. The product features a surprise sherbet centre encased in a tropical flavoured chew.
The brand is launching into the mallows market with brand-new product Marvellous Mallows.
The mallows category is worth £24.7 million (IRI), so it’s the perfect time for Swizzels to branch out into a new market, launching with Drumstick raspberry and milk flavour.
Swizzels has continued to grow over the last year, especially in symbols and independents, where the brand has grown faster than the overall total market (IRI).
“Sugar confectionery has continued to grow 10.8% over the last year (IRI) and Swizzels have a broad range of products to fit customer needs including singles, sharing bags and seasonal lines,” adds Walker. “We work with our wholesale customer base to ensure they have the strongest range and offer strong marketing materials to maximise their sales.”
Perfect for all sharing occasions, Swizzels’ Variety bags have recently been rebranded to include everyone’s favourites in three different packs, such as Luscious Lollies 176g, Scrumptious Sweets 173g, and Curious Chews 171g. Available with a £1 RSP, the bags are free from artificial colours and the sweets are now all suitable for vegans.
“Our variety bags are especially popular during the Halloween and Christmas season, so we would encourage wholesalers to stock up in anticipation for high demand, says Walker.
Over the summer period, Swizzels has impactful POS displays for cash and carries, wholesalers and retailers, ensuring all key marketing activities and NPD are supported.
Moreover, the brand is supporting all its key campaigns and NPD with trade marketing adverts and key messages in all trade publications. Swizzels has also maintained visibility within customers’ own trade channels, such as brochure ads and digital banners.
The brand will be running more exclusive competitions for retailers, where they can win free stock for their stores. This has previously been successful for past campaigns, such as the Swizzels Big Night In.
Gabriella Egleton – Senior Brand Manager for Kervan Gida UK Ltd, comments: “We would recommend stocking Bebeto 150g Big Mix and Bebeto 150g Big Fizzy Mix gummy lines (available in £1 PMP) as they’re the perfect impulse confectionery item for AYR. We’d then suggest introducing our Bebeto 150g Strawberries and Bebeto 150g Fizzy Watermelons over the summer seasons. Consumers are much more likely to try these more-seasonal led lines if they’ve tried and tasted the core products throughout the year.”
Throughout 2022 Bebeto will be adding additional share bag size products to the 150g gummy range, and the family sized value-added packs.
“We will also continue to grow our product range with fruit snacks, high fruit juice products, and lower sugar options; however, confectionery will remain at the core of our range,” adds Egleton. “Our exciting and innovative NPD will remain packed full of fun flavours and tempting tastes.”
Kervan Gida is Turkey’s largest soft candy producer and exporter. It was established in the UK in 2015, and the UK office has achieved year-on-year growth for the past six years, with sales up +58% over the past year. Having doubled UK turnover every two years since the UK office launched, Kervan Gida’s vision is to drive the Bebeto brand to become one of the top five sugar confectionery brands worldwide by 2023.
“We are revamping our online presence by focusing on the Bebeto website and social media,” says Egleton. “We know consumer engagement and feedback are invaluable, and we have big plans to interact with our consumer base (affectionately known as the Bebeto Bunch) through competitions and engaging content.”
The brand provides regular category updates and keeps customers informed of planned NPD. Kervan Gida uses industry knowledge and insights to inform customers about what to stock and when. Its sales and marketing teams are always available to recommend and create impactful merchandising through planograms, POS, and displays where appropriate.
“To maximise sales, wholesalers should stock key products and brands but don’t go overboard. Many retailers can slip into the habit of stocking too many products that clutter shelves and confuse shoppers, rather than focusing on the core products that account for the majority of sales,” advises Egleton.
“Think about signposting, and utilising FSDUs and POS to draw attention to NPD. Don’t forget about key calendar dates / televised sporting events for add on sales.”
“Something to remember is that when people spend long periods at home, as millions of us did during the pandemic, buying confectionery for home consumption becomes a habit and a highlight,” continues Egleton. “People get much needed enjoyment from their favourite products, so it becomes more of a regular planned purchase than an impulse buy.”
Matt Collins, Trading Director at KP Snacks, comments: “PMPs have seen significant growth in the last number of years, with the format expected to continue increasing in both relevance and popularity. Not only do PMPs offer consumers great value for money, the clear pricing also gives them assurance that they are not being over charged.”
PMPs are a hugely versatile format that caters for multiple missions and occasions, whether that be hunger fill or sharing. 70% of bagged snacks shoppers purchase items on impulse and PMPs drive these sales through clear messaging and displays (Lumina).
Worth £264.9m (Nielsen) within the Crisps, Snacks & Nuts category, this format is popular with retailers and consumers alike, with 82% of retailers saying £1 PMPs are must stocks (HIM) and 40% of snack shoppers saying they are more likely to buy a product in PMP format (HIM). Across the CSN market, £1 PMP ranges are growing in value at +13.9% ahead of overall market growth (Nielsen). £1 PMP ranges are the main driver of growth in C&I (Kantar) and represent 58% of the Sharing segment (Nielsen). The PMP format is now the largest format within CSN across symbols and independents.
“At KP Snacks, we help retailers by ensuring we offer the right product range in the right formats, boosted with the right promotions and in-store merchandising,” adds Collins.
Worth £67.2m and growing in value at +10.9% (Nielsen), the KP Snacks £1 PMP range offers an extensive portfolio of products with 33 £1 PMP SKUs designed to excite shoppers and drive impulsive purchases for retailers.
“Taste is the No.1 CSN category driver, meaning PMPs should deliver on delicious flavours as well as excellent value,” says Collins.
The McCoy’s Core range is one of the top 5 best-selling £1 PMP ranges (Nielsen), providing value and a variety of tasty flavours. The McCoy’s PMP range is is growing at +33.1% ahead of the total £1 PMPs sharing segment, which is +13.9% (Nielsen).
Earlier this year, KP launched McCoy’s Sizzling King Prawn in a £1 PMP format. The new McCoy’s PMP capitalises on prawn being the fastest growing flavour within the category, growing at +10% vs the category at +2.7%, making it perfectly positioned to engage consumers and drive sales (Nielsen).
“Retailers should engage shoppers through stocking both NPD and classic favourites in PMP formats, capitalising on both consumer trust and excitement,” suggests Collins. “This shopper intrigue will see retailers drive greater sales.”
Last year, KP Snacks launched three Tyrrells core flavours in £1 PMP format. Available in Lightly Salted, Sea Salt & Cider Vinegar, and Mature Cheddar & Chive, the Tyrrells PMP range unites a well-loved and quintessentially British brand with the ever-growing, popular format. Worth £56.4m and growing in value at +3.8%, Tyrrells provides hand-cooked crisps, bringing a premium snacking experience to the KP PMP range (Nielsen).
KP extended its PMP portfolio last year with the launch of Discos £1 PMP in the brand’s most popular flavour, Salt & Vinegar. The Discos brand is worth £16.9m and is growing in value at +37.6% (Nielsen).
KP Nuts, the number one brand in nuts also launched its new Aromatic Thai Chilli Coated and coated nuts (Kantar), the £1 PMP format makes the new product an affordable and substantial snack suited for on the go occasions. KP Nuts is worth £81.2m and growing in value (Nielsen).
With 53% of consumers saying they try to eat healthily most of the time and only 1% stating they never try to eat healthily, popchips £1 PMPs are must-stocks for catering to shoppers’ needs (Mintel). Available in Barbeque and Sour Cream & Onion flavours, popchips £1 PMPs come in at under 100 calories per serving without compromising on great flavour. Worth £39.6m and growing at +24.3%, popchips are a delicious but permissible snack, perfect for sharing (Nielsen).
Beyond the £1 PMP portfolio, KP Snacks offers a range of classic consumer favourites as price-marked singles.
The KP Snacks singles portfolio includes the UK’s number 1 best value brand, Space Raiders, which are sold in 30p formats (Nielsen). Smaller format PMPs are perfect for consumers looking for a quick and affordable snack throughout the day. KP also offers other classic heritage brands in singles format, including Skips, Discos, and Wheat Crunchies, which are available as 39p PMPs.
A Red Bull spokesperson comments: “The Sports & Energy category has seen a steep upward trajectory in growth over the last year, now worth over £1.7bn and totalling more than £276.4m vs 2021 (Nielsen). This growth has been fuelled by the increased demand for Functional Energy amongst shoppers. These drinks have added over £197.7m in value vs YA and have exceeded the billion-pound mark, today worth over £1.2bn annually (Nielsen).”
Red Bull is the no. 1 brand in total Sports & Energy, growing by £85.6m vs YA and maintaining the second largest absolute gain on any other Sports & Energy brand (Nielsen).
“Red Bull’s dominance within the category is down to the increased consumer demand for a functional boost since the start of the pandemic,” adds the spokesperson. “Shoppers state that they desire more physical energy than ever since lockdowns have ended (Kantar), but they also want more from their purchase than ever before, seeking a balance between enjoyment and practicality as well as for health (Kantar).”
Price and value are the second biggest driver for consumers behind taste and flavour when selecting an energy drink from the shelf. In particular, 56% of all impulse shoppers indicated that they would be more likely to buy a price marked pack (Lumina), and 1 in 3 of under 24-year-old spend on sports and energy drinks comes through convenience and impulse channels (Kantar).
Red Bull recommends stocking price-marked packs across best-sellers at all times, to demonstrate range and offer students choice, whilst driving profit. PMPs are considered by many retailers as a promotional mechanism, therefore stocking PMPs will ultimately drive profit and add growth to the overall soft drink category, with 1 in 5 consumers driven to purchase a soft drink on impulse, if it is on promotion (Lumina).
Stocking PMPs helps to deliver added value to shoppers, encouraging more purchase by providing a sense of reassurance when it comes to price. Red Bull recommends stocking price-marked packs across best-sellers at all times, to demonstrate range and offer customers a transparent choice whilst driving sales and profit for operators.
The Red Bull core range includes Red Bull Energy Drink 250ml, 355ml, 473ml and Red Bull Sugarfree 250ml. From the rhombus of Energy Drink 250ml, to Sugarfree and Zero variants, all the way to Red Bull’s range of Editions flavours – the Red Bull core range has something for every functional shopper.
With the rhombus can making it stand out on shelf, Red Bull Energy Drink 250ml is the number one single-serve soft drink in the UK, making it the essential Sports & Energy product to stock. Red Bull Energy Drink 250ml alone is worth over £156m to the Total Sports & Energy category (Nielsen), delivering 10% of all Sports & Energy drink sales in the UK (Nielsen).
Since becoming a permanent Edition to the range, Red Bull Red Edition has remained Red Bull’s no.1 bestselling flavour format. Providing a refreshing watermelon taste, Red Bull Red Edition has sold 4.2m cans and seen 166.6% value growth vs YA (Nielsen).
But it is not the only Edition in the portfolio, with flavours such as the Tropical and Coconut Edition available in both PMP and Sugarfree formats alongside the Green Edition, the latest Summer Edition to find a permanent place within the Editions range. With the Summer fast approaching, it’s vital to stock as many flavoured formats as possible to appeal to a broad range of consumer taste profiles.
Matt Gouldsmith, Channel Director, Wholesale, Suntory Beverage & Food GB&I, comments: “Price-marked packs are incredibly important for retailers when it comes to demonstrating value to their shoppers, which means they’re important for wholesalers to stock too. They need to be balanced alongside shopper insight and store-specific requirements in order to meet the needs of consumers. We know that price-marked soft drinks are growing more quickly than non-price-marked packs, with price-marked packs seeing 9.7% growth versus an increase of 7.8% (IRI) from non-price-marked packs.”
To help retailers make the right choice on what to stock in their store, SBF offers the option of price-marked or non-price-marked packs across its range of soft drinks, including leading-brands Lucozade Energy, Lucozade Sport, Lucozade Alert, and Ribena.
Lucozade Alert has brought a brand-new flavour to shelves this year, with the launch of Lucozade Alert Original.
Building on the success of the launch of its Tropical Burst and Cherry Blast flavours, Original is the latest addition to the Lucozade Alert range, which generated £1M (IRI) in sales in under two months through wholesale and convenience stores.
“As stimulation drinks is the fastest-growing soft drinks segment in recent years (IRI), new flavours are important for wholesalers to stock so that their retail customers can continue to drive excitement and provide different options for shoppers in this growing category,” adds Gouldsmith. “Lucozade Energy Original remains a strong favourite with consumers, so bringing its unique taste to the Lucozade Alert range is set to grow sales even further for retailers.”
Lucozade Alert Original helps to meet the consumer demand for a stimulation drink which tastes great, is low calorie and more relevant to a wider audience as part of the Alert range.
Lucozade Alert Original is available in 500ml PMP and non-PMP cans, and just like the rest of the Lucozade range, the new flavour is non-HFSS.
Matt Smith, Marketing Director for Tayto Group, comments: “PMPs remain a key way for convenience retailers to show consumers that they are getting a good deal and continue to be vital in driving sales in impulse categories such as savoury snacks. PMPs account for more than half of snacks sales and are growing faster than the market. As a brand committed to offering great branded value, PMPs account for over 90% of Golden Wonder Snacks sales, an even higher proportion than the previous year.”
Sharing snacks are driving the market as we continue to enjoy a snack in front of Netflix or have friends round again, with £1 PMP Sharing Snacks growing at +17.0% (IRI). As Golden Wonder celebrates its 75th anniversary this year, the brand goes from strength to strength by delivering the brand promise of ‘more punch per crunch’ with Golden Wonder’s £1 PMP Snacks range outperforming the market, +26% vs +17% (IRI) and Transform-A-Snack being the star performer, +45% (IRI).
As we emerge from the pandemic, impulse snack sales are recovering with double digit growth in latest 12 weeks, +12.6% (IRI) with Golden Wonder’s 30p / 2 for 50p Fun Snacks range – that includes Tangy Toms, Spicy Bikers, Awesome Oinks and Quarterbacks – growing faster than the market, +17% (IRI).
£1 PMP Sharing Crisps have seen excellent growth, +41% (IRI) and Golden Wonder’s recently launched range of unique flavours – Mature Cheddar and Spring Onion; Chargrilled Steak and Crispy Smoked Bacon – are performing strongly, delivering over double the sales of the previous flavours.
Consumers are deeply worried about rising cost of living with a recent survey by Tayto Group showing 95% of consumers were concerned about the cost and availability of groceries, with almost 40% being very or extremely concerned. In savoury snacks, consumers intend to manage their spending by buying on promotion (33%) and looking for the best value for money (20%, Norstat. PMPs are – even more than ever – an important way of communicating value. Recent fuel increases mean that convenience retailers will benefit as people look to shop more locally, as they did in the early days of the pandemic, and PMPs are a key way to show that they are getting great value for money.
Given the importance of PMPs within savoury snacks, there is a broad choice of PMPs covering the key price points from entry level to the vital £1 offer.
Within savoury snacks there are 4 key PMP price points: £1, 50p, 39p and 30p – with £1 (sharing) and 30p (entry-point) performing particularly well.
Savoury snacks are a key driver of footfall for convenience delivering good rates of sale and strong margins with PORs in the category typically ranging between 30 and 45%.
Tayto recently launched a new range of £1 PMP sharing crisps that offer more premium flavours, more sales and more profits for retailers. Sales of sharing packs have sky-rocketed over the last 18 months making big bag formats a must-stock for independent retailers.
The three unique, premium flavours – Mature Cheddar & Spring Onion, Chargrilled Steak and Crispy Smoked Bacon – were selected as consumers’ preferred flavours. Specially crafted to deliver Golden Wonder’s legendary taste, these flavours are the perfect way to upgrade home entertaining, a day out or big night in.
2022 is Golden Wonder’s 75th anniversary as a much-loved British snacking icon. To celebrate, its £1 PMP sharing crisp range is offering consumers a chance to win one of 75 experience vouchers. This on-pack promotion is also running across Golden Wonder’s recently launched all-time favourite flavours – Beef & Onion and Chip Shop Curry – in classic 1970’s packs.
Smith explains: “On our 75th birthday, we wanted our devoted consumers to be part of the celebration by giving them just what they want – their favourite flavours in packs that bring back wonderful memories – as well as offering them the opportunity to create some new memories.”
The promotional packs are available now and the campaign is being promoted across social, digital and trade channels throughout 2022. Find out more at www.goldenwonder.com/75 ‘ ‘
Comments are closed.