Mintel’s 2022 marketing report for savoury snacks and nuts showed that 65% would choose the healthier options with 55% of consumers examining the product’s nutritional contents.
The revenue for processing potatoes has grown by a compound annual rate of 1.3% to £2.6 billion over the past five years, with a drop of 0.6% in 2022-23, while the average profit margin will reach 13.8% (Mintel). Mintel’s recent data for the 2023 Savoury Snack Market showed that affordable multipacks were purchased more than single packs.
62% of consumers would like to see their favourite brands offer more healthier options, while 63% of consumers purchased savoury snacks as treat (Mintel).
Mintel’s 2022 UK snacking market report showed 86% of adults eat snacks at home, 63% of adults purchase snacks on impulse, 62% have an affordable evening snack as a treat and 82% buy snacks as part of their food shopping.
There is now a strong interest in healthier snacking with YouGov insight reports showing that snackers are more likely young females with middle or low incomes. The report showed that snacking was done out of boredom and as a treat.
A report from the Association of Convenience Stores showed that there were about 18,832 stores affected by the HFSS legislation. This means that independents will need to keep an eye on marketing insights and trends with brands reformulating and innovating their product range to focus on taste and promoting a healthier range.
Smaller stores below 2,000 sq feet are not impacted by HFSS legislation, but still have the opportunity to review and have a range of healthier products.
“Wholesalers should be aware of marketing performance and trends to advise retailers on their product merchandising on their planograms to maximise sales,” comments Kenton Burchell, Trading Director at Bestway Wholesale.
Mintel’s 2022 UK Crisps, Savoury Snacks and Nuts report stated: potato-based and other snacks have strong performance; consumers have a strong interest in healthy eating; consumers are looking for exciting flavours with brands being able to mix flavours and textures in the creation of their products; there has been an increase in eating baked and hand cooked snacks; and there is an increase growth in popcorn sales.
“Wholesalers will need to keep up to date with marketing insights, consumer trends, including the state of the economy and consumer behaviour when it comes to consumer purchasing trends,” adds Burchell. “Review customer footfall, stock bestselling products, and assess the success and impact of marketing campaigns. Invest in innovation and technology to have a seamless process in product ordering, billing, and a smooth distribution channel to reach retailers and get their orders processed on time.”
Matt Collins, Trading Director at KP Snacks, comments: “CSN is a fast growing, priority category with huge scale.”
Worth £4bn and growing at +11.4% 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,” adds Collins. “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. Our snacks are consumed by over 20m households, and our diverse portfolio has delivered 44% of the category’s growth in the last five years (Nielsen).”
Launched last year, the 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 Sour Cream & Chive, Flavour Kravers look to ignite interest from younger consumers to drive sales, with this demographic over-indexing in bold flavours (Kantar).
“PMPs have also seen significant growth in the last few years and this format will stay increasingly relevant post pandemic,” adds Collins. “Our portfolio of large PMPs is currently worth £100.5m RSV and is growing at +49.6% (Nielsen). We are continuously expanding our PMP portfolio to add value to retailers with both variety and promotion.”
Last year, KP Snacks launched Nik Naks Scampi ‘N’ Lemon as a large format PMP, generating excitement with the return of a shopper favourite which had been absent across singles formats since 2008 and multipacks since 2019. The Nik Naks brand is worth £40.2m and growing strongly at +64.3% (Nielsen).
Andy Brown, Director, Envis Snacks, comments: “We are finding that the four things that are driving growth of existing ranges are consistently good availability; good every day value through size and price for example Crunchips X-cut 75g or PMP’s like Wanted Tortilla Chips with 125g for £1.25; differentiated lines to add incremental growth such as Pomsticks and Curlys; and hot flavours to capture developing tastes such as WOW Jalapeno. The icing on the cake though for growth is new product development and we are extremely excited to be bringing Chipoys ‘rolled tortilla chips; to the UK from America and have already seen some awesome sales.
“Two things that we are seeing in terms of consumer trends are willingness to try new, particularly hot, flavours such as Chilli and Lime X-cut and then interest in goods from other countries and in particular the US so we are pleased to meet this demand with Chipoys imported from America that not only have a great crunch but nail the hot flavour portfolio as well, particularly the Fire Red Hot version.”
Envis Snacks has a relatively small range, focusing on availability and good everyday value to ensure consistent supply for wholesalers and in turn retailers as well as a great shelf life of around 6 months across the entire range to reduce the element of risk from stock rotation for wholesalers and retailers alike.
“Crisps and snacks are enjoyed by virtually all households up and down the country and form an important part of the nation’s routine. As a result, this category is now worth £308.5M in convenience alone (Kantar) and is continuing to grow (+6.4%, Nielsen – even against the current background of rising costs,” comments Asl? Özen Turhan, Chief Marketing Officer at pladis UK&I. “This is because, although good value is becoming an increasingly important purchase motivator, value isn’t only about the price tag.”
Although some shoppers are trading down as they pinch the pennies, there’s still a huge pool of shoppers who are turning towards established, heritage brands for treats they trust to deliver on taste and quality. In general, the core savoury snacking brands continue to lead the way in the category. In total retail, the top 10 crisps and snacks brands represent 52% of category growth (Nielsen) – and pladis’ Jacob’s Mini Cheddars brand is paving the way, having reached record heights with sales worth £90M (Nielsen).
“As groups of friends and family look to reduce spend out of home, they’re continuing to embrace evenings in spent playing games, watching movies and catching up. And, when doing so, they’re stocking up on sharing formats of core snacking lines from heritage brands, such as Jacob’s Mini Cheddars, which they can trust to deliver on taste and quality,” adds Turhan.
This means that larger formats are driving growth in crisps and snacks, and these are expected to remain buoyant, already up +16.1% (Nielsen) – particularly as they often represent a lower cost per kg. Jacob’s Mini Cheddars brand is case in point, outpacing the overall growth of larger formats (up +27.3%, Nielsen) thanks to its range of accessibly-priced multipacks and sharing bags.
“In general, now more than ever, Brits are also seeking good deals on groceries – and PMPs play a key role in driving volume sales for wholesalers and independent retailers alike, as products in this format are perceived to represent good value,” says Turhan.
“Our range of Jacob’s Mini Cheddars £1 PMPs are a great choice here – as these products are worth £4.8M (Kantar) in the channel.”
In general, the core savoury snacking brands continue to lead the way in the category. In total retail, the top 10 crisps and snacks brands represent 52% of category growth (Nielsen) – and Jacob’s Mini Cheddars brand is paving the way, having reached record heights with sales worth £90M (Nielsen).
Much of this current growth is driven by core, bestselling products from shopper favourites like Jacob’s Mini Cheddars (worth £12M in convenience) and Jacob’s Twiglets (worth £1.3M in convenience, Kantar).
“We’re always looking to deliver trend-led NPD which helps our wholesale customers make the most of the huge sales opportunity the crisps and snacks category presents,” Turhan continues. “We’ve been working hard to launch NPD which gives snacking shoppers even more choice, such as our Jacob’s Mini Cheddars 30% Less Fat – a lighter, crunchier version of our bestselling Jacob’s Mini Cheddars.”
Earlier this year, pladis brought its Jacob’s Mini Cheddars brand back to the nation’s screens as it continues to keep up strong momentum for the brand and tempt even more younger adults to enjoy a moment of cheeky, cheesy pleasure.
Building on the fun, lighthearted Welcome to Cheddar Town platform, the new creatives showcase the breadth of products pladis now has on offer, spotlighting a trio of bestselling SKUs to help drive a new generation of snackers in-store.
“It’s essential to nail your range so that you can deliver a fulfilled shopping trip for your retail customers,” suggests Turhan. “This means maintaining stock of the bestsellers in-depot and using themed space and clear signage, such as beacon branding with Jacob’s, to make the most popular products unmissable.”
Doritos, the number one tortilla chip brand in the UK (Nielsen), and Burger King®, home of the Whopper®, are pulling a whopper out of the bag with the launch of a new NPD.
The Whopper® is famous for the tasty, smoky flavours of flame-grilled beef, fresh tomatoes, onions and pickles. The new Doritos tortilla chips taste close to the real deal and are even certified suitable for vegetarians. The launch will be supported by an on-pack promotion, which will offer consumers a chance to get their hands on a free Whopper® meal when they buy a selected meal at Burger King®. The promotion runs across Doritos Sharing formats (180g, 230g and 70g) and is open until the 30th October 2023.
Lee-Teng Houston, UK Marketing Director at Doritos, said: “It’s not every day that two iconic brands like Doritos and Burger King® come together. So, when the idea of launching the infamous flavour of the Whopper® in an even more accessible format arose, we couldn’t resist!
“Our shoppers are continually looking for bolder flavours and taste experiences – and this is exactly what we are giving them. The new flavour adds excitement and innovation to the category, and we expect it will fly off the shelves – consumers simply won’t be able to resist.”
Quavers, Walkers’ light and curly snack brand, is launching a new BBQ Sauce flavour as part of its core line-up. The launch comes after an investment of £24 million from PepsiCo to increase production capacity at Quavers’ Lincoln factory, supporting the launch of Quavers BBQ Sauce and further innovations to come. The investment also contributes to the PepsiCo Positive strategy, by improving the capacity to create more snacks in packs of 100 calories or less.
Having brought back nostalgic, retro flavours such as Quavers Prawn Cocktail and Salt and Vinegar in 2021, Quavers has seen the additional flavours re-engage shoppers and re-invigorate the brand. The newest addition to the Quavers portfolio will help the brand appeal to a wider range of consumers, especially as over half of Brits revealed that they view BBQ as the most family-friendly Quavers flavour.
Alongside the new flavour, the brand is also unveiling an eye-catching new look across its range, in keeping with its iconic fun persona. The packaging refresh aims to remind consumers that Quavers are a tasty, light and curly potato snack, suitable for the whole family.
Quavers has long been associated with a sense of light-hearted fun, and this relaunch aims to highlight that Quavers multipack products are a smart snacking choice for lunchtime consumption, especially as they are 100 calories or less per portion.
Katherine Cook, Walkers Snacks Marketing Manager at PepsiCo said: “We are pleased to reveal our refreshed packaging design for our Quavers brand, which aims to showcase how uniquely tasty, curly and light in texture our crisps are. What’s more, the launch of our new Quavers BBQ Sauce flavour taps into the nations’ love of novelty, meaty flavours (Kantar), while remaining low in calories. The £24 million investment will help us to future-proof brand growth and help deliver more exciting innovations to our customers.”
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