PMPs offer wholesalers a unique opportunity to streamline operations and secure stable profits.
By focusing on established brands with PMPs, wholesalers can benefit from efficient ordering, reduced price fluctuations and, ultimately, happier customers who appreciate the clarity and affordability these products provide.
As inflation continues to impact the market, PMPs are likely to gain even greater importance. Consumers will prioritise familiar brands and value certainty in pricing.
Embracing PMPs as a cornerstone of convenience-channel strategy is a win for the entire supply chain. They provide stability, communicate value and contribute to long-term success in today’s ever-changing economic landscape, according to SmartView Convenience (I-TG International Services Ltd in partnership with TWC) 52 w/e 19 May 2024.
Matt Stanton, Head of Insight at DCS Group, comments: “Ultimately, PMPs make things easier for shoppers and for retailers because the price is obvious and clear on pack.
“Through the cost-of-living crisis, demonstrating value for money to shoppers is the most important factor for gaining share of their spend. Our key recommendation is that if a PMP is available, you will grow sales by ranging it in your store.
“PMPs are important because they give shoppers price confidence.”
PMPs will continue to be an important format to stock in Independent Convenience stores, as shoppers are managing the pressures from the cost-of-living crisis by sourcing and buying products that offer value for money.
Shoppers are responding to these pressures by shopping across more channels, buying on promotion and switching into private label. By offering PMPs in the Independent Convenience sector, shoppers are reassured that they are not being overcharged for the brands they know and love.
Brand and price remain the top product consideration factors when shoppers buy into products in the Independent Convenience channel, with 60% of shoppers reporting that brand is important, and 57% of shoppers reporting price is important when making a purchase decision (Lumina).
Focusing on value with PMPs and strong display space will be a key driver to success in this channel over the coming year.
“Ensure that your fixtures have a clear flow and follow merchandising principles that make your categories easy to navigate and shop,” advises Stanton.
“Where space allows, consider giving space to categories on display – as display gives on average a 75% uplift in sales vs. on-shelf (Circana).
“Whilst there has been a trend of shoppers switching into private label due to the cost of living crisis, shoppers remain brand loyal which is prevalent in some Household, Health & Beauty categories more than others (such as Oral Care, Laundry, Skin Care, Baby Care, Hair Care and Fabric Enhancers) – therefore offering PMP versions of best-selling products in these categories will reassure shoppers that they are able to purchase their favourite brands and products at a fair price point.”
Amy Burgess, Senior Trade Communications Manager at Coca-Cola Europacific Partners (CCEP), comments: “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.
“Wholesalers and retailers 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. Soft drinks PMPs are worth £1.3bn (Nielsen), presenting a significant opportunity for independent retailers, and in turn wholesalers.
“Our best-loved brands, including Coca-Cola™, 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.
“Last year, we expanded our PMP range by introducing price-marked Schweppes 1-litre PET bottles. This enabled more convenience customers to enjoy the advantages of PMPs with the biggest mixer by volume in GB (CGA & Nielsen).”
So far in 2024, CCEP has launched price-marked multipacks of Monster Juiced Mango Loco and Zero Sugar Lewis Hamilton varieties, working to continue to drive the popularity of energy drinks.
PMPs offer wholesalers a unique opportunity to streamline operations and secure stable profits.
By focusing on established brands with PMPs, wholesalers can benefit from efficient ordering, reduced price fluctuations and, ultimately, happier customers who appreciate the clarity and affordability these products provide.
As inflation continues to impact the market, PMPs are likely to gain even greater importance. Consumers will prioritise familiar brands and value certainty in pricing.
Embracing PMPs as a cornerstone of convenience-channel strategy is a win for the entire supply chain. They provide stability, communicate value and contribute to long-term success in today’s ever-changing economic landscape, according to SmartView Convenience (I-TG International Services Ltd in partnership with TWC) 52 w/e 19 May 2024.
Matt Stanton, Head of Insight at DCS Group, comments: “Ultimately, PMPs make things easier for shoppers and for retailers because the price is obvious and clear on pack.
“Through the cost-of-living crisis, demonstrating value for money to shoppers is the most important factor for gaining share of their spend. Our key recommendation is that if a PMP is available, you will grow sales by ranging it in your store.
“PMPs are important because they give shoppers price confidence.”
PMPs will continue to be an important format to stock in Independent Convenience stores, as shoppers are managing the pressures from the cost-of-living crisis by sourcing and buying products that offer value for money.
Shoppers are responding to these pressures by shopping across more channels, buying on promotion and switching into private label. By offering PMPs in the Independent Convenience sector, shoppers are reassured that they are not being overcharged for the brands they know and love.
Brand and price remain the top product consideration factors when shoppers buy into products in the Independent Convenience channel, with 60% of shoppers reporting that brand is important, and 57% of shoppers reporting price is important when making a purchase decision (Lumina).
Focusing on value with PMPs and strong display space will be a key driver to success in this channel over the coming year.
“Ensure that your fixtures have a clear flow and follow merchandising principles that make your categories easy to navigate and shop,” advises Stanton.
“Where space allows, consider giving space to categories on display – as display gives on average a 75% uplift in sales vs. on-shelf (Circana).
ent in some Household, Health & Beauty categories more than others (such as Oral Care, Laundry, Skin Care, Baby Care, Hair Care and Fabric Enhancers) – therefore offering PMP versions of best-selling products in these categories will reassure shoppers that they are able to purchase their favourite brands and products at a fair price point.”
Amy Burgess, Senior Trade Communications Manager at Coca-Cola Europacific Partners (CCEP), comments: “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.
“Wholesalers and retailers 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. Soft drinks PMPs are worth £1.3bn (Nielsen), presenting a significant opportunity for independent retailers, and in turn wholesalers.
“Our best-loved brands, including Coca-Cola™, 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.
“Last year, we expanded our PMP range by introducing price-marked Schweppes 1-litre PET bottles. This enabled more convenience customers to enjoy the advantages of PMPs with the biggest mixer by volume in GB (CGA & Nielsen).”
So far in 2024, CCEP has launched price-marked multipacks of Monster Juiced Mango Loco and Zero Sugar Lewis Hamilton varieties, working to continue to drive the popularity of energy drinks.
To further help drive incremental sales, this year CCEP has also launched PMP versions of the Costa Coffee Latte and Caramel Latte RTD ranges to help convenience retailers enhance their competitive edge when it comes to the (RTD) chilled coffee segment. This has only added to the popularity of Costa Coffee RTD, with its range up 10.4% in value in convenience over the past year and growing ahead of the wider segment in this channel (Nielsen).
A Red Bull spokesperson comments: “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.”
Price marked packs can help to drive rate of sale with 75% of convenience shoppers more inclined to buy if in a price-marked packs (Lumina). This is even more relevant in times of financial hardship, when shoppers are more careful about what they spend their money on. In this instance, price-marked packs can be a purchase driver, helping to deliver a perception of value to the shopper, therefore retailers can support customers and make their decisions in store easier by supplying price-marked pack options.
More than ever, price-marked packs are a key way of helping shoppers to navigate the Soft Drink aisle in Convenience where 35% of Soft Drinks are bought on impulse (Lumina) and shoppers are accustomed to seeing price-marked packs in stores. This is in part due to the confidence that price marked packs give consumers, with 54% of retailers buying price-marked packs to reassure customers that they are being charged correctly (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). In Scotland specifically, Sports and Energy price-marked packs are worth £91.4m, showing strong signs of growth +15.6% vs last year. Accounting for 80% of all Sports & Energy sales in Scottish Independent & Symbol stores, it’s essential to get these right (Nielsen).
Red Bull is the #1 energy drink selling more units than any other brand in the category (Nielsen), presenting a compelling proposition to help drive price-marked packs sales value. Red Bull Energy Drink 250ml is the best-selling price-marked packs sku in sports and energy, worth £71m (Nielsen) and drives the highest demand in the Red Bull portfolio (Nielsen). Red Bull Energy Drink 355ml is the fastest growing price-marked pack sku in sports and energy, +£10.4m (+21.0%) with 473ml also seeing fast growth +£8.5 (+18.0%, Nielsen).
Red Bull continues to drive flavour innovation and growth within the Sports and Energy category with the launch of its brand-new Summer Edition Curuba Elderflower.
Offered in 250ml, 250ml £1.55 PMP, 355ml Sugarfree and 250ml Sugarfree 4-pack, the launch of the new Red Bull Summer Edition Curuba Elderflower will be supported with a range of tailored POS to raise awareness in-store across all key touchpoints.
This summer, Red Bull aims to tap into the take-home occasion and drive trial with a brand-new mixed multipack offered in 4 x 250ml (£5.25), and 4 x 250ml PMC (£5.35) exclusive to the impulse channel through wholesale.
Ribena is launching a new price-marked pack across its 500ml ready-to-drink range to drive value for shoppers and encourage trial during the key summer months.
The new format will be available for a limited time from July until October at a price mark of £1 to help retailers drive sales within the juice drinks segment and offer value to price-conscious shoppers.
The £1 PMP will be available across Ribena’s Blackcurrant, Blackcurrant NAS, Pineapple & Passion Fruit, Strawberry, Very Berry, Mango & Lime variants.
The Ribena brand is currently worth £120m in retail sales and is the UK’s second most considered beverage, making it a must-stock in retailers’ soft drink ranges. The limited-time PMP with its unmissable price point is set to help the drinks stand out on shelf and keep Ribena front of mind for shoppers during the summer months.
Ribena’s no added sugar range is seeing incredible recent YOY growth of over 38% in the convenience channel.
Aurelie Patterson, Head of Ribena at Suntory Beverage & Food GB&I (SBF GB&I), said: “With Ribena’s strong brand performance, we’re delighted to be launching this new format across several of our flavour variants just in time for summer!
“At a time when shoppers are continuing to seek value from brands, Ribena’s new price-marked pack is set to meet this need and is a great proposition for retailers and shoppers alike.”
The limited-time format will be supported by eye-catching POS and in-store activation.
Retailers should be sure to stock up on the new PMP range to make the most of the brand’s growing success, and site them in the chiller next to standard Ribena RTD bottles.
Nic Storey, Senior Sales Director, Impulse & Field Sales at PepsiCo, comments: “PMPs reassure consumers of value and help independent retailers to offer an accessible price point that builds trust with shoppers. As a result, PMPs continue to offer wholesalers a strong opportunity to grow sales. For a long time, they have been of high importance to the convenience channel and to the Savoury Snacks Category, acting as the engine driver of growth. With the total Salty Snacks category in independent and symbol stores now being worth £631.6m and growing at +18.0% (Nielsen IQ), there is evidence to show that snacking remains a huge part of day-to-day UK life. This consists of various missions where shoppers look for savoury snacks in PMP formats, for which retailers will aim to stock up on through wholesalers. This ranges from on-the-go, big night in, treats, general top ups and more, with trends such as taste influencing their choice of selection.”
As the key to Savoury Snacks Category growth remains with PMPs, the format will continue to be at the forefront of crisp and snack sales in 2024 because shoppers are still looking for accessible price points. Within the Savoury Snacks Category, Sharing PMPs remain the number one contributor to crisps and snacks growth in value, compared with other segments (Nielsen IQ). Wholesalers looking to grow their savoury snacking sales should look to prioritise the bestselling products Sharing PMP Snack SKUs, which includes Doritos, Quavers, Cheetos, Wotsits and Monster Munch (Nielsen IQ).
Given the strength of PMPs in delivering growth for retailers, wholesalers and the Savoury Snacks Category over the last year, PepsiCo has continued to invest in the PMP format through NPD and line extensions across the nation’s most loved crisp brands. Launches like Walkers Prawn Cocktail PMP – the third bestselling Walkers single flavour (Nielsen IQ) – or Wotsits Giants PMPs continue to be popular with shoppers, as they look for their favourite flavours.
This March, PepsiCo heated up crisp aisles with the launch of an Extra Flamin’ Hot range, which is available in PMP format. The new three-strong range adds a deliciously intense twist to the nation’s much loved favourites Doritos, Walkers MAX and Wotsits Crunchy, answering the consumer demand for more varied spicy snacks.
Extra Flamin’ Hot is available now, in PMPs to help retailers tap into the demand for formats that are also suitable for on-the-go consumption, with an RRP of £1.25. The new Doritos and Walkers MAX Extra Flamin’ Hot varieties are both non-HFSS, and the existing Flamin’ Hot range across brands such as Monster Munch and Cheetos will continue to be available for shoppers, rebranded as Sweet & Spicy Flamin’ Hot. The launch was supported by a two-month multi-million marketing campaign from early April across TV, Social, Digital and consumer PR, with a second wave to follow later in the year.
Matt Collins, Sales 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).”
Worth £121.8m and growing at +16% (Nielsen IQ), 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.
£1.25 PMPs are a key format for Independent and Symbol stores to focus on, accounting for 50% of CSNP sales (Nielsen IQ). £1.25 PMPs are worth £321.8m within the CSN category and are growing in value +12.8% (Nielsen IQ). 18 of the top 20 best-selling SKUs are £1.25 PMPs (Nielsen IQ) and, of those, 6 are KP Snacks brands.
KP’s range of large format PMPs is worth £121.8m (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.
Takis, the cult brand heating up the snacking aisle, is broadening its distribution to include the independent and convenience sector from 1st August 2024. In a UK first for the brand, Takis’ three SKUs will be available in price-marked-pack (PMP) format, allowing retailers to capitalise on the market that is growing at +17.6% value & +6.8% units year-on-year.
Available to order via Booker Wholesale UK, the expansion follows hot on the heels of a six-month stint exclusive to grocery. Fuego, Volcano and Dragon Sweet Chilli will be available in a 55g pack, price marked at £1.25. The new PMPs will provide shoppers with clear, consistent pricing, in turn growing Takis’ value proposition and driving impulse sales.
Becky Allan, Marketing Manager, Takis, said: “Launching our spicy rolled tortilla chips into the independent and convenience channel is an exciting next step in Takis’ ambition to heat up the snacking category. What’s more, the addition of PMPs will allow retailers to further profit from the impulse snacking occasion, where intense flavours, such as chilli and paprika, have their moment to shine as spice is a key driver of impulse purchases. We know that 16-26 year olds are the age group most likely to purchase bagged snacks as a pick me up, reward, or to satisfy a craving, so this move ensures Takis is available to satisfy consumer demands whilst providing retailers with a revenue opportunity that will grow the category.”
Phil Hulme, Commercial Director, Kervan Gida UK, comments: “Our strategic aim is to maintain the £1 price point for sharing bags. It brings people into the brand and promotes trial into the brand, so we are investing for brand growth.”
The £1 price point offers consumer price confidence and value in an ever-inflating category. Confectionery is an impulse or unplanned purchase: the £1 PMP makes it a no-brainer to purchase, it churns quicker on shelf, and cash flow is important to small business owners, knowing something sells and turns.
It is important to offer PMP and non PMP to give retailers the choice. From a consumer’s perspective it ensures good value at point of purchase. For Kervan Gida, the £1 price point helps the company gain and hold distribution.
“Our £1 point of entry is fantastic. We’re still delivering a key price point that delivers commercially. Where people moved the price point to £1.25. we saw a sales reduction, but we’re holding our price point at £1. All Bebeto recipes have fruit juice and no artificial colours. We’re aligned to the market, and we offer the same, if not better quality and vegan options,” adds Hulme.
“We are a challenger brand that’s going mainstream. We’re gaining traction in the UK marketplace and growing market share due to our strategy. We offer an alternative to the big brands, we’re approachable, and we listen. We have all the major accreditations, BRC, Halal Certified, IFC, Vegan Approved and SEDEX, and our factories are approved by various major retailers.”
Allison Wallentin, Category Manager for Convenience at Saputo Dairy UK, comments: “78% of today’s consumers are value-led (Lumina) and 66% are actively seeking ways to reduce their weekly shopping costs, so PMPs are an effective way to easily communicate value for money to shoppers.”
The clear and consistent pricing on PMPs helps shoppers manage their budgets with ease. PMPs also help shoppers identify deals at a glance, driving impulse purchases, encouraging repeat custom and ultimately driving stock through more quickly.”
“For many consumers, price isn’t everything,” adds Wallentin. “They still want good quality products from brands they know and trust, so they are looking for value, rather than simply a low price point. Stocking PMPs from well known, popular brands such as Clover and Utterly Butterly serves to reassure consumers that they are getting the product they want at great value, with clear pricing an important factor in customer purchase.”
Dairy products are a vital category for PMPs because they are purchased frequently and are a staple in most households – nearly 92% of Brits consume dairy products in an average week. These products are a household essential and are central to the top-up shop, the predominant shopping mission in convenience.”
Müller Yogurt & Desserts is rolling out price marked packs across its new 250ml single serve Cadbury Milkshakes. Launched earlier this year, the two new variants, Cadbury Creamy Chocolate Milkshake and Cadbury Creamy Chocolate Caramel Flavour Milkshake, will now be available in £1.69 price marked packs, exclusively for the convenience and wholesale channel.
With the flavoured milk category worth a massive £700m annually (+11% YOY) and half of those sales going through convenience stores (Circana), the addition of Cadbury Milkshakes in both price marked packs and standard packs is expected to help further accelerate sales and growth in the channel.
Carol Hand, Head of Category and Shopper Based Design at Müller Yogurt & Desserts said: “We are committed to driving category growth by continually expanding and optimising our portfolio of products to meet the needs of both retailers and shoppers. The exciting introduction of our new Cadbury Milkshakes in price marked packs and standard packs is a perfect example of this and presents a fantastic opportunity for convenience retailers to maximise sales.”
Shaun Whelan, Link Snacks International (LSI) Convenience/ Wholesale and OOH Controller, comments: “It continues to be important for convenience retailers to demonstrate value across the store. One way to do this is to stock price marked packs (PMPs).
“PMPs offer shoppers price confidence and reassures them they are not being overcharged. This is important when shoppers are watching what they spend. PMPs make life easier for convenience retailers, reassuring them and their shoppers that they are charging the right price. PMP labels stand out on shelf and are a good way to draw the shopper’s eye to a particular product.”
PMPs offer shoppers price confidence, and it is good to have PMP available for budget-conscious shoppers. PMPs offer a point of difference for independent retailers. Many PMPs have been specifically designed to fit in with the shopper needs of the independent sector.
Peperami PMPs are very effective at generating sales. New PMP £1.25 flashed 2 for £2 on Peperami sticks offer good value compared to standard sticks, driving value and return on sales.
Convenience retailers can use PMPs to bolster their margins and increase footfall as it shows how a store is offering shoppers good value.
LSI ensures Peperami PMP products are affordable for convenience retailers by supporting them with promotions and case sizes to keep the price points at the recommended retail prices.
Kathryn Hague, Head of Marketing at Hancocks, comments: “45% of shoppers say the cost of living crisis had a negative high impact on their life (Nestle) but many that are feeling the pinch still want to treat themselves (Kantar). That’s why when it comes to PMPs, shoppers appreciate the value for money they offer. Their guaranteed and consistent prices is what will keep them coming back each time for that special treat.
“Make the most of PMPs by stocking a wide variety of products to suit the needs of all customers. Ensure PMPs are merchandised with clear signage and use displays and attractive POS to showcase their value in store. When creating an attractive POS display ensure it still serves a purpose in store.”
Impulse lines tend to perform the best when it comes to PMPs especially because cash strapped customers are still looking to treat themselves.
One of Hancocks’ most loved impulse lines are Bonds price-marked sweet bags. Their clearly marked and affordable prices are what makes them appealing to customers.
The bags are marked as £1.25 with flavours including Great British favourites like Fruit Pastilles, Jelly Beans, Giant Strawbs, Chocolate Peanuts, Midget Gems, Fruit Jellies and Chocolate Honeycomb.
The newest PMP product from Bonds are their Kids Sweet Bags which retail at 50p each. Younger customers love these tasty pick n mix sweets with pocket money prices.
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