Bagged Snacks is a crucial category that continues to thrive and prosper. For the first time, the CSN (Crisps, Snacks and Nuts) category is worth over £4.1bn and is growing at +13% YOY (NielsenIQ) – faster than any other Impulse category.

The growth of Bagged Snacks is being driven largely by Food to Go and Treat missions, as the segment experiences an increase in simple economical lunchtime meals and ‘pick me up’ occasions. Food to Go currently accounts for 17% of Convenience missions, and CSN products appear in 1 in 5 baskets in the channel (Lumina).

With CSN category penetration remaining at one of its highest levels, independent retailers have a huge opportunity to grow their sales by capitalising on the strength and resilience of the segment, while pivoting to meet shifting consumer needs and missions.

Brands are key in driving sales, with branded products making up 92% of sales in Impulse (NielsenIQ). KP Snacks is a key player in Impulse and overtrades in the segment, holding a 25.8% share and contributing +32% growth (NielsenIQ), with its iconic brands including KP Nuts, McCoy’s and Hula Hoops performing particularly well. As consumers remain cost-conscious, they turn to familiar brands they trust and recall, making popular heritage brands, such as Nik Naks and Space Raiders, must-stocks to appeal to shoppers and drive sales.

With the cost of living crisis, shoppers are searching for tasty and affordable treats. Value perception has become increasingly important to CSN shoppers. PMP formats are crucial in delivering great value for money to the Impulse category.

KP Snacks market-leading PMP portfolio and pricing structure delivers something for everyone, suiting all budgets (pockets) and occasions, from the UK’s number one best value brand, Space Raiders in 40p PMPs, to larger eats including Hula Hoops Big Hoops BBQ Beef, the best-selling PMP on the market (NielsenIQ), in a £1.25 PMP.

Wholesale Manager went to Lioncroft Aston Cross, Birmingham to speak to Andy Staley, Business Account Manager, KP Snacks, and Darren Pugh, Head of Trading at Lioncroft, to talk about KP Snacks’ in-depot activity which gave retailers the chance to play virtual reality cricket in celebration of its ongoing partnership with The Hundred cricket tournament.

To watch the video interviews, go to wholesalemanager.co.uk.

What are you doing here today?

AS: I’m delighted to be here at Lioncroft Aston Cross at the launch of our The Hundred partnership in-depot. As you can see, the depot is really vibrant. Lioncroft have done an excellent job in terms of helping us deliver best in class support and execution in the depot. But more than that, we have got our virtual reality cricket game here with us today which will help us not just engage but get the retailers to actively participate in The Hundred cricket game and help us to really drive that association with KP Snacks and cricket and our The Hundred partnership.

More importantly it’s about engaging with our retailers across our brand portfolio and also building that engagement and excitement for our upcoming partnership with The Hundred.

Tell us about The Hundred?

AS: We are very proud to be official team partner of The Hundred. But more importantly, we are immensely proud of the fact that through cricket and through our partnership with The Hundred, we will help get thousands of families more active this summer. That really fits with our CSR and our People and Planet agenda in terms of getting more people active through cricket, helping them enjoy a more healthy lifestyle and enjoying our snacks as part of a balanced diet. We have got an on-pack promotion which also runs across some of our key PMP brands. Every promotional pack purchased will go towards funding 35 permanent cricket pitches in urban areas. The great thing about our The Hundred partnership is it gives us another opportunity to give back to people, to their local communities and to help them get more active.

How are your brands supporting retailers and wholesalers?

AS: We engage with wholesalers and retailers to make sure we are optimising sales. But ultimately we are forever bringing new innovation across our brands and across our portfolio and our formats to help the retailer buy and sell more within their business.

We are supporting retailers and wholesalers in many ways, through many events, many initiatives. Today we have all this fantastic in-depot theatre, the virtual reality cricket game. That is all about bringing retailers into the depot to see the fantastic brands on offer and the fantastic promotions they can take advantage of. This all drives pull through for the depot and drives sales and value for both the retailer and the wholesaler.

How is the CSN category performing?

AS: The CSN category at the minute is really buoyant. We have got in excess of £4 billion sales, it is growing at 13.2% so it’s a really stunning performance. It’s the fastest growing impulse category, ahead of confectionery and soft drinks. KP Snacks within that is performing exceptionally well. We have a 25.8% share of trade and we are growing more than twice as fast as the category at +32%. When you remember that 1 in 5 baskets within our channel contains Crisps and Snacks, it really is important for the retailers to recognise the scale of Crisps and Snacks, to back it as a category, as the fastest growing impulse category and to back KP Snacks as the manufacturer who are driving that growth.

What are the key opportunities within the category?

AS: Price Marked Packs are a key opportunity within the category for wholesalers and retailers, particularly larger PMPs where KP Snacks are performing well. We have a 35% share of trade and we are growing at 31% so we are the manufacturer to back within large PMPs. We also have Big Hoops Beef £1.25 which is the best-selling SKU within impulse. When you look at how dynamics are changing, we have consumers who are staying in more to avoid the cost of an expensive night out, and so Crisps and Snacks are perfectly positioned to deliver on that need state and occasion as they are perceived as an affordable treat. We have great brands in KP Nuts and Tyrrells, where if you have friends over for drinks you can bring these out as nibbles. Or if you’re enjoying a Big Night In movie experience, you can sit there, watch a film and graze on your favourite Butterkist popcorn. I would urge retailers to stock up on the brands to maximise sales and value performance.

Is the category impacted by the cost of living crisis?

AS: Everybody wants an affordable treat, especially now, and Crisps and Snacks is a viable, affordable treat category that really lends itself to that occasion. That is where KP Snacks can really offer the right price point, format and brand to meet a variety of shopper needs.

How else do KP Snacks invest to support retailers and wholesalers to drive sales?

AS: We invest in depot demonstrators to go into our top selling depots to talk to retailers about our brands and drive incremental sales through the local deals of the day. They will share information on and educate retailers on what to range and how to merchandise the stock when they get it back to store. It’s far more than just a one hit transactional deal. This is about helping the retailer buy more, sell more and make more within Crisps and Snacks and with our KP Snacks portfolio.

Darren Pugh also gave his perspective as a wholesaler.

How important is CSN to your retail customers?

DP: CSN is very important to our customers, it is a big part of their daily purchases.

Why is KP Snacks an important partner?

DP: KP Snacks are an important partner to our business because they invest in all the different initiatives and activities that we are looking at within our wholesale business to develop through everything we do. They are a key partner within that.

Why did you choose to partner with KP Snacks on this particular activation?

DP: On The Hundred campaign we chose to partner with KP Snacks because Edgbaston is literally a mile down the road. It’s an ideal opportunity to amplify the importance of crisps and snacks.

What activity are you running here today for retailers?

DP: Today we are running our traditional barbecue event, which is well renowned in the sector. There is live music and we have activities from sampling to demos. It’s a fun day, even though we are here to do business and to trade very hard. It’s part of a fun day to let people enjoy some food that have been loyal customers through the previous years. We haven’t always been able to do it because of Covid and this is the second year that we are back to doing it post-Covid.

Why are brand promotions important to run in depots?

DP: Brand promotions are important for us and important for the retailer. It’s creating a reason for them to see a product in a leaflet. If it doesn’t get promoted, it’s like news not being in a newspaper. If it’s not there, it’s not read. It’s the same principle for us with promotions. We put the offers together to drive interest within the category and to highlight the products and the range that we have available.