Crisps, snacks and nuts (CSN) is a fast growing, priority category with huge scale. Worth £3.7bn and growing at +6.6% YOY (Nielsen), CSN shoppers are spending an extra £100 in the category, +14% YOY (Kantar).
And with 67% more people choosing convenience for ‘main shop’ (HIM) and one in five baskets containing a bagged snack (Lumina), CSN represents an important opportunity for retailers to grow sales and footfall.
“We’re seeing dynamic change across the category, and retailers can bank on bagged snacks to drive sales and footfall by stocking the right range and formats,” comments Matt Collins, Trading Director at KP Snacks. “Using the strength of our brand portfolio, we continue to look to help our retail partners adjust to shifting category trends and retain shoppers.”
KP Snacks has the broadest portfolio across all segments, with something to suit everyone and all occasions.
Its snacks are consumed by over 20m households and its diverse portfolio has delivered 44% of the category’s growth in the last five years (Nielsen).
The No.1 CSN category driver is taste, and KP is in the business of making great tasting snacks, across all snacking segments (crisps, snacks, nuts, popcorn), delivered in all formats (singles, multipacks, sharing) and up and down the value spectrum.
“Our NPD strategy is always to develop sustainable new products, anchored in insight and delivered in a variety of formats to drive sales for our customers,” adds Collins. “Stocking the right core range, with a handful of the right NPD, will deliver both variety and excitement to entice shoppers.”
Launched this year, the new KP Nuts Flavour Kravers range is delivering bold flavours to evening sharing, the largest occasion within both nuts and sharing (Kantar). Available in three flavours: Flame Grilled Steak, Smokin’ Paprika, and Fiery Caribbean Jerk Sauce, Flavour Kravers look to ignite interest from younger consumers to drive sales, with this demographic over-indexing in bold flavours (Kantar).
“Over the course of the pandemic, we saw shifts in shopper behaviour and changing consumer demand, boosting Sharing formats which continue to perform strongly,” says Collins. “Customers gravitate towards well-known and trusted brands with 42% of CSN sales going through the top 5 brands (Nielsen), and many of our KP Snacks’ brands are excelling.”
£1 PMPs have also seen significant growth in the last few years and this format will stay increasingly relevant post pandemic.
KP’s £1 PMP portfolio is currently worth £74.7m RSV, and is growing at +22.1% (Nielsen). The company offers retailers 35 PMPs across the KP range and continuously looks to add value to retailers with both variety and promotion.
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). Last year, the brand expanded its PMP range with the addition of three of the most popular flavours of its premium snack brand Tyrrells, with 60g bags of Lightly Salted, Sea Salt & Cider Vinegar, and Mature Cheddar & Chive now available in £1PMP.
“Food to Go is a long-term, resilient growth trend,” Collins continues. “The category is showing strong recovery and we expect the market to rebound as footfall and frequency continue to rise.”
KP Snacks portfolio delivers the top three selling meal deal SKUs. Hula Hoops Big Hoops BBQ Beef is the top selling PMP in the convenience channel, worth £12.2m and takes the No.1 spot for best-selling Meal Deal choice (Nielsen). Worth £151.0m, the Hula Hoops brand is growing in value at +1% MAT (Nielsen). McCoy’s Salt & Vinegar and Flame Grilled Steak are the No.2 and No.3 best-selling meal deal choices, perfect for livening up lunchtimes.
Together Time is the largest category opportunity due to the size of the sharing occasion. Consumers continue to spend more time at home due to the lingering impacts of Covid-19 and trends towards more cautious spending, fuelling an increased desire to make at-home occasions feel more special. The sharing segment is the largest in Crisps, Snacks and Nuts (CSN), worth £1.4bn and growing strongly at +8.3% MAT (Nielsen). Snacks are a hugely important part of the sharing occasion. 49% say snacks are a must have for an evening in (Mintel).
Kirsten Reid, Impulse Category Management Channel Lead at PepsiCo, comments: “Snacking remains a huge part of day-to-day UK life, with the average consumer snacking 5 times per day. Within the convenience channel, crisps and snacks have continued to be a critical sales driver for retailers.”
Over the last five years, savoury snacks have delivered consistent value growth of +2.4% (Nielsen), with crisps & snacks being the 2nd biggest segment making up 44% of snacking occasions (PepsiCo).
The savoury snacking category also performed well throughout the pandemic, with 1 in 12 baskets (Kantar) containing some type of savoury snack. Trips to convenience stores for savoury snacks are in growth year on year at 6.4% (Kantar) and performing ahead of other Food & Beverages & Sweet Snacking (Kantar). Post pandemic, the convenience channel has also performed well +6.8% vs year ago +3.4% vs 2020 and +5.1% vs 2019 (Nielsen).
“For retailers, this means the category is well positioned for growth & continues to innovate and adapt to consumer needs,” adds Reid. “There is a real opportunity for retailers to capitalise on this and to see greater returns from savoury snacking, and our HERO 25 range of bestselling SKUs is perfectly positioned to help retailers maximise their crisps and snacks sales.”
“Shopper needs vary by time of day and throughout the week, but we know from our research that the late afternoon and evening is a key time of day where larger sharing savoury snacks play a big role,” says Reid. “As consumers come together to connect & socialise, there is a real opportunity for retailers to encourage consumers to increase their spend on sharing products within the impulse channel.”
There are 3 key afternoon/evening occasions that make up 42% of all Impulse snacking occasions (PepsiCo) – these are, fun moments with friends, family time together & evening unwind and treat. So whether it’s part of a BBQ with friends, Big Night In, watching a key sporting event or simply a routine evening in, sharing packs play an important role in all of these occasions.
Stocking the right sharing formats is key to unlocking growth in these social occasions. In the latest year both PMP and non PMP have seen good growth, with a value growth of +9% and unit growth of +7% (Nielsen). Within PepsiCo’s own portfolio, sharing packs across the core Doritos range (+3.8%), Sensations (+7.8%), and Pipers (+47%) have performed strongly since last year, as consumers seek larger formats that can be enjoyed with multiple people (Nielsen).
As we look at consumer behaviour since the pandemic, hybrid working now appears to be the new norm. With people out and about more often, lunchtime remains a key occasion for crisps & snacks, accounting for 13% of Impulse snacking occasions (PepsiCo).
Sales of singles crisps & snacks have grown by +11.3% this year (Nielsen), and this is expected to continue as more consumers combine working from home and the office.
“Lunchtime is therefore a prime opportunity for retailers to leverage particularly through the use of Meal Deals, which can offer value and convenience to shoppers,” Reid continues. “For those without a Meal Deal offering, we would recommend locating crisps and snacks next to soft drinks, which will help to drive cross-category purchases as well as higher sales.”
Price marked packs continue to play a strong role within savoury snacking, offering the reassurance of value to shoppers which in turn creates confidence in local retailers and how they price their products. RRP PMPs account for 41% of crisps & snacks value sales in the savoury snacks category and continue to grow at +22.1% vs 2 years ago and +10.3% vs previous year (Nielsen). RRP PMPs are the no.1 contributor to crisps and snacks growth in absolute value vs other segments (Nielsen).
“To maximise this growth opportunity, we recommend that retailers should stock a variety of RRP PMPs formats in-store to cater to multiple snacking occasions and sign post value to their shoppers,” suggests Reid. “Our new Wotsits Crunchy range of 60g RRP PMPs provide an excellent choice for stores looking for strong returns from well-loved brands that deliver taste and enjoyment in an exciting new product format in the most popular pack size.”
Enjoyment and taste is the biggest and most important consumer need accounting for 32% of Impulse snacking occasions (PepsiCo). Taste is the no.1 driver of choice when buying crisps and snacks (PepsiCo), so it’s important to meet this demand by stocking a combination of classic favourites alongside new bold flavours too.
“Shoppers love to experience new textures and strong flavours, which is more important in this channel than in others,” says Reid. “Shoppers continue to look for ways to add excitement to their snacking occasions, and this is particularly the case for Gen Z’s, who over-index in this channel vs other channels. We know retailers are always on the look-out to offer something completely different to their shoppers, and our NPD offers a variety of options.”
Cheese, Salted, and ‘Hot & Spicy’ are the top three flavours for savoury snacks (PepsiCo). To meet the demand for these flavour trends, PepsiCo expanded the Wotsits range with the launch of a brand-new addition, Wotsits Crunchy. Rolling out to the convenience channel in 60g £1 RRP PMPs and 140g Sharing bags, these crunchy snacks are available in Really Cheesy and Flamin’ Hot flavours, helping retailers to offer their shoppers the variety & bold flavours they love.
Due to huge public demand, last year PepsiCo brought back two popular retro flavours as part of the Quavers brand – Quavers Prawn Cocktail and Salt & Vinegar. These returning iconic flavours have proved a hit with shoppers in the channel and are definite must-stocks.
Matt Smith, Marketing Director for Tayto Group, comments: “Although HFSS restrictions have been in force since 1 Oct, most consumers are unaware of the changes, it will drive big changes in savoury snacks. Consumers looking for healthier snacks still expect them to taste great – snacks have to be worth the calories. Golden Wonder is a brand famous for its flavours and so we will not compromise on taste – our loyal consumers love us for who we are!
“Making HFSS-compliant snacks that don’t compromise on taste is a challenge but one we’ve overcome with Ringos Puffs – which deliver Golden Wonder’s legendary ‘more punch per crunch’ but with less salt and calories.”
Available in BBQ and Sweet Chilli flavours, early sales are ahead of expectations and, despite only being in the market for a matter of months, Ringos Puffs is the #1 HFSS-compliant snack in S&I (IRI). “Where advancements in flavourings and production enable us to produce a healthier product without compromising on taste, such as with Ringos Puffs, we will do so,” adds Smith. “As these capabilities grow, we continue to evolve our core range and develop exciting NPD – as long as it tastes great!”
Sales of sharing snacks continue to power ahead – making big bag formats a must-stock for retailers. £1 PMP packs are growing twice as fast as the market (+18.9% vs +9.6%, IRI) as consumers continue to enjoy a snack in front of Netflix or have friends round. It also shows just how important PMPs are in convenience retailers’ battle to showcase value in the face of the cost-of-living crisis. £1 PMPs have been a roaring success which is why Golden Wonder is committed to offering great branded value at this must-stock pricepoint – and why Golden Wonder’s £1 PMP Snacks range is outperforming the market (+35.5% vs +21.2%, IRI).
“There are many sporting occasions over the next few months, but they don’t come much bigger than The Football World Cup – and the backdrop of the cost-of-living crisis means that independent retailers can really win with a strong savoury snack offer,” says Smith. “As the impact of energy bills bite, consumers are looking to save by shopping more locally and avoiding expensive nights out. So many will be watching the match at home – with their obligatory drinks and snacks.”
Value for money is now at the top of consumers’ minds and in Snacks that means PMP – with 62% saying that PMPs are more important to them in light of the cost-of-living crisis (IRI). £1 PMP Snacks continue to be the category’s star performer making up 29% of all crisps and snacks sales and still growing faster than the market (+23.5% vs +8.7%). Golden Wonder’s £1 PMP range – including the classic brands of Transform-A-Snack, Ringos and Tangy Toms – are outperforming the market (+38.2%) by offering great branded value, legendary taste with ‘more punch per crunch’, and category-leading POR for retailers.
“Building on this success, as inflation piles pressure on PMPs, Golden Wonder is committed to maintain retailers’ margins and to stick to the all-important £1 pricepoint for its core range,” Smith continues.
Sharing is ‘coming home’ as Golden Wonder launches its new 120g BBQ Strikers in time for the Football World Cup. Kicking off in mid-October with big league margins and goal-scoring RRP, this footie-themed £1.50 PM pack promises plenty of fully-flavoured product for everyone to share – and top-flight sales for retailers.
“Crisps and snacks are – and will continue to be – enjoyed by virtually all households up and down the country, and form an important part of the nation’s routine,” says Asl? Özen Turhan, Chief Marketing Officer at pladis UK & Ireland.
“Whilst it’s becoming increasingly important to offer healthier snacking options – such as Jacob’s Mini Cheddars Nibblies – and give shoppers more choice, there’s still strong demand for bold, punchy snacks like our Jacob’s Mini Cheddars Sticks. What this means is that, whilst healthier propositions may gain share, we expect the overall category to remain in growth.
“For wholesalers, this simply means maintaining stock of the bestsellers and driving visibility of these key lines-in depot through clear signage in order to maximise sales.”
As groups of friends and family continue to embrace evenings in spent playing games, watching movies and catching up, we can expect sales of larger formats – such as sharing bags – to remain in growth, already up +16.1% (Nielsen). Jacob’s Mini Cheddars brand is a case in point, with sales which continue to outpace overall growth of larger formats, up +27.3% (Nielsen).
“Plus, given that larger formats often represent a lower cost per kg, we anticipate similar sales success throughout the year ahead as shoppers look to pinch the pennies where they can,” adds Turhan. “Therefore, it’s important that wholesalers stock up on larger formats from the bestselling household-name brands, such as Jacob’s Mini Cheddars.”
“Consumers are seeking out healthier snacking options and, as one of the top 10 savoury snacking brands, we understand that Jacob’s has an important role to play when it comes to offering consumers choice,” says Turhan. “This means ensuring those who want to incorporate healthier savoury snacks into their diets can do so. Given that over 27.5M (Kantar) people choose crisps and snacks for their afternoon pick me up or treat to enjoy with loved ones during evenings in, we knew that we needed to increase our range.”
To cater to the demand for lighter, lower-calories snacks, pladis launched Jacob’s Mini Cheddars Nibblies. With 30% less fat than other baked cheese snacks and biscuits – and at just 75kcals per individual portion – this launch offers savoury snacking shoppers even more choice. This nibbly new treat is available in both multipacks and sharing bags, so that shoppers can enjoy a moment of cheesy pleasure during even more eating occasions.
The recipe for Jacob’s Twiglets was updated to include 60% less salt. The packaging was given a fresh new look which emphasises the benefits of this household favourite snack – including its fibre content and high levels of wholegrain. Having these health messages on-pack will only serve to attract shopper attention, driving retailers’ sales in the process.
“That said, there’s still going to be a huge pool of shoppers who look to categories such as crisps and snacks for a treat, meaning we anticipate appetite for the core, bestselling snacks to remain strong,” Turhan continues. “These products still represent the majority of sales in the category, and our Jacob’s Mini Cheddars brand is a prime example of this, having reached record heights with sales worth £94.3M (Nielsen) – led by the core range (+10.3%, Nielsen).”
JP Del Carmen, Head of Snacks at General Mills, comments: “The Better For You Snacks category has definitely bounced back since Covid, totalling £667.3M value sales and a +5.4% uplift vs. last year.” Nature Valley is participating in this growth, growing at +3.1% vs. last year at £59.4m, while Fibre One is still leading at #1 position within the Diet management segment.
“Planning how to maintain visibility of better-for-you snacks once the HFSS ban is in place has become a number one priority for General Mills – not only for our brands but also on behalf of the sub-categories we exist in,” adds Del Carmen. “We want to make sure that products that are affected by the regulations can still be seen by consumers. This is crucial, as such a large part of the category’s sales come through impulse purchases.”
General Mills has been working with its retailer partners to ensure they are prepared for the upcoming changes. The company has been sharing advice around sectioning off certain parts of the category that are specific to health needs and making sure these ranges are placed more centrally in store, to both align with the legislation but also to maximise visibility with shoppers.
New HFSS-compliant proposition Nature Valley Fruit & Nut is designed to meet the needs of people who are looking for a simple yet delicious snack. The range is made with 100% whole grain oats, is high in fibre and contains no colours, artificial flavours, or preservatives. For the activation of Fruit & Nut, we’re investing £1million media value between ATL (VOD, social, OLV, influencers), shopper and sampling.
“Ensuring better-for-you products impacted by the HFSS legislation are still visible in store and displayed on a fixture easy to navigate by need state, will be key to driving purchase,” says Del Carmen. “However, it’s important to recognise that the ban and its effects won’t exist in isolation – people will also continue to be impacted by the cost-of-living crisis.”
In the cereal bar category, shoppers are expected to trade down to low price-tier products and to start seeking promotional offers more frequently (Shopper Intelligence). By offering larger packs to consumers, brands will be able to offer better value and in turn drive sales.
Last year, General Mills launched a price marked pack offer for its leading Nature Valley Crunchy range, designed to help convenience retailers boost their better-for-you snack sales. The promotion means shoppers can purchase two Nature Valley Crunchy singles for £1 instead of the previous price of 59p each. General Mills has also been reminding retailers of its existing family pack offering, which helps the shopper save.
Andy Brown, Sales Director and General Manager, Envis Foods, comments: “Sharing bags remain the main driver of sales for crisps and snacks with the PMP’s being core drivers in the wholesale and convenience channel. Things are changing a little now though as there are also a lot more non price marked packs that allow retailers to structure their margin around their overheads.”
Envis Foods has a range of smaller 75g Xcut Crunchips which retail between £1 and £1.25 and larger 150g Xcut Crunchips that sell for between £1.75 and £1.99 allowing a range of choice for retailers.
“The World Cup in November should be an even better sales driver for convenience / wholesale this year with the timing of the event and maybe more people staying at home so it’ll be a good time for sports lovers to surprise their friends with some new and exciting crisps and snacks like WOW Jalapeno and Cream cheese inferno,” adds Brown.
Kenton Burchell, Trading Director at Bestway Wholesale, comments: “Retailers will need to plan a strategy and review the layout of their store, the range of products they sell in their Crisps and Snacks range, and how they will merchandise the products. There is an opportunity for retailers to review their product stock and create a more healthier option line.
“At Bestway, we look at consumer trends and new product opportunities, to fit the evolving lifestyle of our consumers. We stock products that consumers will enjoy, and we also have healthier ranges and on-the-go snacks.”
The top performing sales are the sharing packs – 41% are made on impulse purchases (Lumina). Households buy sharing packs when they are having a big night in and watching a sporting event for example.
“At Bestway, we promote our Sharing Crisps and Snacks with Price Mark Packs,” adds Burchell. “Our category advice and marketing insights showed that taste and brand are important factors to customers when choosing purchasing. We advise our retailers to refine their range and focus on the best-selling brands.”
Six Nations Rugby Championships, FA Cup, and the World Cup were key sporting events that people stay to watch together and share crisps and snacks.
Bestway ensures that it has relevant marketing and promotional campaigns and works with suppliers to ensure that its depots will have the available stock for its retailers. Sporting events are the best time to stock crisps and snacks for a big night in.
More people are consuming snacks that are on the go (IRI).
Brands are now looking into reformulating their products to adhere to the HFSS regulations, so their products are compliant with the new legislation. This means that there will be healthier options for the health-conscious consumer.
There is a +4% growth in Crisps & Snacks in the last year due to the growth in Sharing (Nielsen).
With the inflation on the rise, there is a growth of +10% in the Singles pack. The growth is not based on non-PMPs and value snacks (IRI).
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