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 overcharged.
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 £293m (Nielsen) within the Crisps, Snacks & Nuts category, this format is popular with retailers and consumers alike, with 40% of snack shoppers saying they are more likely to buy a product in PMP format (HIM).
The PMP format is now the largest format within CSN across symbols and independents.
Matt Collins, Trading Director at KP Snacks, comments: “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. Worth £83.5m and growing in value at +26.8% (Nielsen), KP Snacks’ portfolio of large format PMPs is extensive, designed to excite shoppers and drive impulsive purchases for retailers.”
KP also offers a wide and exciting range of smaller format PMPs, including Space Raiders, which are sold in 40p 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 50p PMPs.
“Taste is the No.1 CSN category driver, meaning PMPs should deliver on delicious flavours as well as excellent value,” adds Collins. “The McCoy’s Core range is one of the top 5 best-selling large PMP ranges (Nielsen), providing value and a variety of tasty flavours. The McCoy’s PMP range is is growing at +45.1% (Nielsen).”
] Last year, KP Snacks launched McCoy’s Sizzling King Prawn in a large 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,” says Collins. “This shopper intrigue will see retailers drive greater sales.”
KP Snacks is continuing to expand its diverse PMP portfolio, driving sales for retailers by engaging consumers with products they love in this appealing and increasingly popular format. Last year, Nik Naks Scampi ‘N’ Lemon was launched as a large PMP, generating excitement with the return of a shopper favourite which had been absent across singles formats since 2008 and multipacks since 2019.
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 PMPs are must-stocks for catering to shoppers’ needs (Mintel). Available in Barbeque and Sour Cream & Onion flavours, popchips PMPs come in at under 100 calories per serving without compromising on great flavour. Worth £43.5m and growing at +14.5%, popchips are a delicious but permissible snack, perfect for sharing (Nielsen).
Beyond its large PMP portfolio, KP Snacks offers an excellent range of classic consumer favourites as price-marked singles. Retailers should ensure to stock up on single PMPs to drive impulse sales.
Haydn Parker, Coffee Customer Category Manager at Nestle Beverages, comments: “PMPs offer shoppers a guaranteed and consistent price that is not likely to fluctuate every time they go into a retailer to purchase the products they like. PMP has become even more relevant in recent times given the Cost of Living Crisis and high levels of price inflation in the market. In times of uncertainty and rising costs, shoppers are more likely to plan ahead and budget, and having a guaranteed PMP can help not only to plan, but also an influencing factor on which convenience retailer to purchase from.”
Since we entered a period of high inflation, PMP has driven value and outperforms non-PMP, as shoppers can plan ahead and know that they are going to be offered a fair and guaranteed price from convenience retailers.
Wholesale and Convenience has grown 0.4% versus last year with Nestle being the fundamental driver of this growth with Nestle growth in Wholesale and Convenience at 3.3% (IRI).
“Over 54p of every £1 spent in Wholesale and Convenience is Nestle, with Nestle being the largest manufacturer in the market,” adds Parker. “The key for retailers to win in the market is to be winning in Nestle. Nestle growth in Wholesale and Convenience has been driven by Volume per Trip, with Nestle Wholesale and Convenience shoppers putting 21% more volume in their basket than they were last year (Kantar).”
Adrian Hipkiss, Marketing and International Business Director at Boost Drinks, comments: “Energy is the largest soft drink category in the independent channel (IRI) and with £1 in every £3 spent on soft drinks being spent on an energy drink (IRI), making it an incredibly exciting space to operate in. When taking a closer look into the energy sub-categories, it’s the Energy Stimulation drinks which play a significant role in contributing to the growth of the soft drinks category, growing +14% YoY (IRI), and accounting for 26% of all Soft Drink value sales (IRI).”
The past two years of restrictions has seen a shift in energy drink shopping habits. As the nation travelled less and stayed home more, on-the-go consumption became ever so prominent, resulting in a growing consumer demand for 1litre and multi-pack take home formats.
Despite restrictions now easing and footfall rising, take home products continue to be a huge growth opportunity for retailers as shoppers continuously seek ready-to-drink, on-the-go energy quality options at everyday value prices (Cousins Davis).
“Boost is the only brand operating in 4 functional drink categories – Energy Stimulation, Sports Drinks, RTD Iced Coffee and Protein Shakes (IRI) and within the energy stimulation category, it’s the third largest brand (IRI), something we’re incredibly proud of,” adds Hipkiss. “Boost Original is available in 1litre, 500ml and Boost’s leading SKU, the 250ml Original Energy. This range of options and pack sizes allows consumers to rely on us as a brand and purchase a Boost that suits every occasion, whether on the move or stocking up to enjoy at home.”
To boost this growth even further, flavours in energy now account for 38% of Stimulation sales (IRI) and have increased 48% vs. 2020 (IRI), showing that there’s a significant thirst for a range of flavour variants to suit all tastes. Boost Red Berry is the largest selling 250ml Stimulation Flavour SKU (IRI), however considering the fact that 39% of Stimulation shoppers actually make their purchase based on flavour (Cousins Davis) alone, it’s important to stock a variety of flavours rather than relying on one or two.
“Overall, to maximise on profits retailers should prioritise stocking Boost as a leading brand within the soft drink growth category, especially as a brand that provides a diverse range of pack formats, flavours and take-home offerings, ensuring retailers can meet the needs of their core consumer groups,” says Hipkiss.
Taking into consideration the fact that the Fruit Punch flavour is the largest stimulation flavour on unit sales, with a significant 28% share and 28% YoY growth (IRI), Boost Drinks has recently expanded its popular Energy Stimulation range with the re-formulation of its Fruit Punch flavoured 250ml SKU. Made up of punchy flavours including peach, passionfruit and banana, Boost’s fruit punch medley of flavours offers a point-of-difference against current single-flavour SKUs in the category. Available now in 65p price-marked packs (PMPs), the new offering continues to enable retailers to communicate great value amidst increased consumer price-consciousness, whilst still delivering excellent margins to sellers.
Ben Parker, 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.”
Currently, 66.9% of sales in the convenience channel now go through as PMP, an increase from 66.0% in 2021 (IRI).
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,” adds Parker. “However, we also expect to see growth in at home family dining and at home socialising, both of which are important occasions for soft drinks.”
Retailers can meet these shopper needs by stocking market leading brands in a variety of price-marked pack formats to cater to multiple soft drink occasions and signpost value to their shoppers.
Pepsi MAX six-pack price-marked packs for example, will give these shoppers an easier way to buy into the soft drinks category in a multipack format. The squash category also provides a great value offering for families. For example, Robinsons, the squash brand leader in the convenience channel (IRI), offers a 900ml price-marked bottle at £1.49, creating a cost-effective solution to family shoppers at just 6p per serve. For shoppers looking for on-the-go solutions, Robinsons ready to drink is available in a 500ml bottle at a £1 price-marked pack, helping to drive impulse sales.
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 core price-marked pack lines including 500ml formats of Pepsi MAX and Lipton Ice Tea, as well as Fruit Shoot, Britvic 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.
“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,” says Parker. “Retailers shall also have non-price marked packs available and of course, are free to set retail price at their own discretion.”
During 2022, Britvic launched Rockstar Juiced El-Mango and Tropical Punch, in a price-marked-pack format. Designed to further drive impulse purchases and bring new shoppers into the category, the £1.29 price-marked cans are available in wholesale and convenience. Rockstar Energy already offers great value to shoppers with its extensive range of flavours in a price-marked format and Juiced El-Mango and Tropical Punch are set to drive excitement and interest by adding to the range.
Research from Budweiser Brewing Group shows that PMPs are popular among both retailers and shoppers. More than two-thirds (68%) of independents are in favour of PMPs, citing how they give shoppers confidence as the key reason (Lumina). Consumers echoed this view, with more than two-thirds agreeing that PMPs provide a guarantee that they are not paying more than they should (Lumina).
Sunny Mirpuri, Director for Wholesale & Convenience, Budweiser Brewing Group, comments: “The current economic climate is having huge impacts on the way people are spending money. As consumers look to cut back on their spending and reduce trips to pubs and restaurants, we are expecting to see consumers treat themselves at home instead – presenting an opportunity for retailers to encourage shoppers to trade up. Retailers will have to rely more heavily on brands and products that consumers already know and need to be prepared for this demand.”
Consumer impression is that PMPs offer great value; 60% of consumers believe that the price-marked products they see on shelves are a special promotion (Lumina), something that will become even more essential as the cost-of-living places pressure on consumers.
Promotions also play a key role in maximising the PMP opportunity. Beer and cider shoppers are not only more impulsive than the average shopper but are also more likely to be on a mission to cater to at-home occasions such as the Big Night In (Lumina). Eye-catching displays with beer PMPs at their heart, especially cross-category opportunities with snacks, like crisps and cheese, will help retailers capture this spend. Ross Davison, Head of Convenience at Kepak (Foods Division), comments: “Whilst 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 last 6 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 convenience retailers to appeal to shoppers.
“PMPs continue to provide a vital reassurance of value, with all of Rustlers’ best sellers available in this format, however, value isn’t just confined to the price of a single product,” adds Davison. “Product promotions also highlight good value and drive impulse purchase, such as an on-pack promotion giving shoppers something extra.”
The PMP range from Rustlers already includes the brand’s Core range of bestselling products, the Quarter Pounder, BBQ Rib, All Day Breakfast Sausage Muffin, Southern Fried Chicken Sub and the Twin Cheeseburger, with products being added to meet consumer and retailer demand.
Sarah Fordy, Head of Marketing – Cereal Partners UK, comments: “At Nestlé® Cereals, we have expanded our range of Price Marked Packs – PMPs show a clear value message to consumers which is essential in the current climate.”
Nestlé’s biggest selling PMPs are Cheerios® Multigrain, however currently the fastest growing of its PMPs is Nesquik® cereal – a much-loved brand with a long-standing consumer following and offering a tasty and fun breakfast option, while also containing whole grain as the number one ingredient.
“In recent years, especially post-pandemic, we’ve seen evolving consumption trends – one of which is the growing focus on consumers prioritising health and wellbeing; retailers and wholesalers must take this into consideration in terms of their offering,” adds Fordy.
Nestlé Cereals has been on a reformulation journey to improve the nutritional value of its cereals while maintaining the same great taste – using a little and often ‘salami-slice’ style approach to reducing salt and sugar within its products while simultaneously increasing the amount of whole grain; all cereals that feature the signature Nestlé green banner on-pack contain whole grain as the number one ingredient.
“Wholesalers are incredibly important for us as a business, and we are always looking to build on the existing relationships we have,” says Fordy. “Our sales team work to foster and grow these partnerships, in order to find new, and innovative ways to work together and build effective business plans to benefit us all, including our consumers. Wholesalers can maximise their sales by ensuring they have a good, well-stocked, clearly priced fixture and range, offering great value POR. Stocking NPD will also bring excitement and invigorate any category. At Nestlé Cereals we offer a great range of PMP!”
The UK’s no. 1 coconut rum brand (Nielsen) is adding a new £2.19 price-mark to its Malibu Pineapple ready-to-drink (RTD) format amidst rapid growth of the pre-mix can category (+22% in convenience, Nielsen). Launching exclusively in the impulse channel, the sparkling mixed drink is expertly made with white rum, coconut and pineapple flavours and offers consumers a convenient on-the-go solution, perfect for great tasting drinks outdoors or at home cocktails.
Pineapple is the 4th most popular flavour in cocktails and is growing YOY, with 30% of consumers choosing pineapple flavoured drinks when out in the On-Trade (CGA). In the convenience channel, Malibu Pineapple is the fastest growing spirit mixer can (Nielsen), growing at +120% vs. the pre-mixed drink category at +7.6% (Nielsen), and the launch of the price-mark-pack (PMP) proposition is set to offer shoppers better value for money as well as add value to convenience retailers.
Chris Shead, Off-Trade Channel Director at Pernod Ricard UK, commented: “The cocktail trend continues and the popularity of RTDs has accelerated as consumers seek out convenient formats. Our new Malibu Pineapple PMP pre-mix can will drive presence in impulse, ensuring further visibility in the ‘grab and go’ moment. Two thirds of independent retailers are already stocking PMPs as it gives consumers confidence they are being offered good value, and with Malibu seeing +11.1% value growth (Nielsen) we’re confident that our new PMP will accelerate that even further.”
Malibu Pineapple PMP RTD (5% ABV) is available in 12 x 250ml cases at an RRP of £2.19 per can, and throughout February will be rolling into national wholesalers including Dhamecha, HT Drinks, Imperial and Parfetts. It joins the wider Malibu RTD range which includes Malibu Piña Colada and Malibu Cola.
Mark Roberts, Marketing & Trade Marketing Director at Perfetti Van Melle, comments: “Price-marked-packs (PMPs) have always been an important part of our offering across our leading brands – they’re a tried-and-tested mechanic that provides shoppers with confidence that they are getting great value for money. This is even more pertinent now, as purse strings tighten, and is clear when looking at our recent sales data – sales of our Fruittella £1 PMP Juicy Chews have grown +15.1%, whilst our Fruittella £1 PMP Duo Stix have also grown +15.4% (IRI).”
PMPs can make the shopping experience easier in-store – they look bolder on-shelf, which in turn drives quicker purchase decisions. Eliminating confusion with straightforward on-pack pricing is especially helpful in a highly competitive category like sugar confectionery.
Whilst there is sometimes concern about the impact of PMPs on profit margins, the allure of a PMP will help to increase impulse purchases, encourage repeat custom and ultimately drive stock through more quickly. “Our range of household brand names have been trusted and loved for generations and have a reputation for offering great value, making our price-marked products an attractive proposition to retailers,” adds Roberts. “Retailers should ensure they and their staff know about these brands, and check that there is always a good selection on offer across core and sugar free ranges.”
Perfetti Van Melle has launched Mentos Sour Gum, gaining new ground in the playful gum category. The time is ripe for this expansion, given the recent successes of the Mentos Pure Fresh Gum range after a summer of ATL activity that represented an investment of £1.5m in the category.
The sour gum category is growing 45% MAT, showing consumers’ appetite for this flavour profile. Mentos Sour Gum is available to purchase in Coop in two popular flavours: Sour Apple and Strawberry, with 15pcs in a pocketable bottle, making it the ideal on-the-go size.
The launch is supported by a social media campaign, with in-store activity planned in 2023. Mentos Sour Gum is HFSS-compliant, meaning there are no geographical limitations on where it can be merchandised and making it a must-stock.
Research shows that tangy sour flavours hold more appeal for younger demographics than traditional mint flavours. Delicious tangy Mentos Sour Gum will introduce younger consumers to the Mentos Gum brand and improve category consideration for the rest of the range.
“Fruittella is expanding into the jellies market with an innovative and interactive NPD: Fruittella Curiosities,” says Roberts. “The themed packs allow shoppers to explore one of two far-flung and fantastic worlds. In ‘By the Sea’ the marine life is totally tropical, and the Antarctic creatures of ‘In the Snow’ are berry delicious!”
Now available to buy in store for £1.50 per pack, the HFSS-compliant jellies are made with 30% reduced sugar, real fruit juice, and natural colourings and flavours – all the attributes that make the core Fruittella range a family favourite. ‘By the Sea’ features soft fish, starfish and crab shapes in perennially popular flavours lemon, orange, and strawberry. ‘In the Snow’ contains a mixture of penguins, polar bears and walruses that taste of blackberry, raspberry, and strawberry.
Fruittella Curiosities’ cast of characters are not only charming, but educational too. The back of the pack boasts a host of fun animal facts, along with a scannable QR code taking the user through to a microsite where they can learn even more about the theme – and even create their own AR creature. The launch will be supported by BAU social, influencer campaigns and sampling.
Clare Newton, Trade Marketing Executive at Swizzels, said: “It’s no surprise that consumers are often much more willing to make an impulse purchase if they’re aware of the price point before getting to the checkout, especially during the current economic challenges. Having clear visibility of the value for money that our products offer with a PMP, means that consumers can still treat themselves to their favourites from our range, without having to worry about exceeding their budget.”
Despite 53% of consumers reducing their spending to pay their bills (TWC), sales of confectionery remain largely unaffected; however, stocking PMPs helps to give customers an enhanced feeling of control over their spending and the knowledge that the price that they see on pack will be the price that they pay at the checkout.
As consumers start to reduce the amount of activities that they would participate in outside of the home, like trips to the cinema, they often switch to in-home entertainment, such as inviting friends and family round for movie nights – social events like this are perfect for the inclusion of a PMP range.
“Swizzels has continued to grow 12.2% over the last year (IRI), with PMP hanging bags continuing to grow +13% in Symbols and Indies (IRI) and so we’re extremely confident that despite the economic challenges being faced, there’s still a really healthy appetite for our PMP products as we move forward into 2023,” adds Newton.
Alongside campaigns aimed at supporting wholesalers and retailers, such as Swizzels’ successful Big Night In event where retailers can be in with a chance of winning £1000, the brand also has a number of exciting campaigns throughout the year which will drive both consumer and retailer awareness of its products.
Darryl Burgess, Head of Sales for Weetabix, comments: “We continue to offer great value to customers in the convenience channel with our £1.29 PMP pack. In the spring, we brought back our £1.29 PMP offer by popular demand across the 250ml core range. We know that once trialled, we generate strong repeat sales with shoppers loving the great taste and smoothness of the drink – we therefore wanted to ensure people could pick-up an easy breakfast option at an affordable price.”
Cost pressures will be seen throughout the industry in the next few months, meaning shoppers will be focussing on value for money more than ever.
“This is where cereal has a huge advantage compared to other breakfast options, it is by far the cheapest solution – offering affordability, convenience, and great taste in a bowl from big brands that consumers love,” adds Burgess.
Price Marked Packs is king in wholesale and convenience, so the importance is crucial, even more so now as we hit the cost-of-living crisis.
Weetabix worked closely with its wholesale and convenience partners to ensure product availability over the past year, as well as offering advice to retailers so that they stock the top-selling cereal brands to cater for the rise in at-home breakfasts. The company continues to invest in the category as well, with popular NPD such as Weetabix Melts, available as a £2.99 PMP, and award-winning Weetabix On The Go Caffé Latte, which was launched exclusively in the impulse channel to tap into the significant on-the-go opportunity retailers have.
“Retailers should ensure they’re stocking a variety of products, focused on a core range of best-sellers, including Weetabix Original, Alpen, Weetabix Minis, Weetos and Ready brek,” says Burgess.
Stocking cereal NPD can introduce new shoppers to category and encourage increased basket spend.
“We’ve seen multipacks increase in popularity during lockdown, especially for our cereal bars and drinks, and we expect this to continue with more people working from home,” Burgess continues.
Weetabix always works closely with retailers to ensure that its product range works for them – this includes different pack sizes and price marked packs. PMPs are a major growth area for convenience stores, as consumers are increasingly looking for reassurance on value.
The Weetabix PMP range covers a range of SKUs across its cereal and drinks portfolio, at a range of price points. Weetabix works hard to ensure that its price marked packs offer competitive shared margins. Convenience is still the number one need state at breakfast – throughout all the turmoil of the last 18 months, this has been consistent.
Weetabix On The Go remains the UK’s No. 1 breakfast drink, a £10m brand with a 60% share of the breakfast drinks sector (Nielsen) – it has plans to grow even bigger in 2023. Within the impulse channel, the brand is worth £2.1m and accounts for 85% of breakfast drink sales (Nielsen).
Last year, Weetabix launched a new limited-edition Weetabix On The Go Caffé Latte flavour. A perfect fit for busy mornings, the Caffé Latte breakfast drink contains similar caffeine content to a cup of coffee, meaning it’s a convenient two-for-one combination of breakfast and coffee.
The Caffé Latte breakfast drink has introduced new shoppers to the dairy coffee drinks category, offering a two for one coffee and breakfast whilst travelling.
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