The various national lockdowns undoubtedly slowed the food to go category’s growth, but consumers are out and about again, enjoying hot drinks and bakery items in convenience stores as part of these outlets’ food to go offerings.
As the cost-of-living crisis continues, people will take comfort in more indulgent products, which will see an uplift in sales, just as they did during the pandemic.
Shoppers are looking for ways to treat themselves well when on the move. The trend we’ve seen recently for upgrading everyday meals extends to food eaten on the go, and is not only here to stay, but has added new occasions, particularly benefiting the morning goods category. As a result, products that might previously have dominated the ‘grab and go’ sector are now being bought by consumers to enjoy alongside a hot beverage on the go or at home by a huge number of people who are now hybrid working and heading to local coffee shops or retailers for pick-me-ups during the working day.
“Wholesalers should support their retailer customers and help them convey value by addressing consumers’ growing concern about controlling their spending, while offering them foods that deliver on taste, convenience, and versatility, comments Josh Corrigan, Senior National Account Manager at St Pierre Groupe. “For wholesalers’ retailer customers who offer food to go, there is also the need to minimise unsold food waste in-store. There is a clear opportunity here for bakery brands with long-life multi-pack formats, like those from St Pierre.”
Consumers are out and about again, enjoying hot drinks in convenience stores, as part of these outlets’ food to go offerings. The way shoppers work is normalising too. People are returning to their offices full time or flexi working, presenting growing opportunities for retailers to sell food and hot drinks to go. Morning goods complement hot drinks perfectly and are a great opportunity for retailers to increase basket spend.
“The morning run presents a clear opportunity for retailers to merchandise a range of morning goods near the hot drinks dispenser and use the strength of the St Pierre brand to draw shoppers back to the store on repeat visits, and also increase their linked food to go sales in other product categories during these occasions,” adds Corrigan.
St Pierre launched individually-wrapped ranges in SRP (shelf-ready packaging) formats in April 2020, which catered to retailers looking to capitalise on the ‘on the go’ crowd then enjoying coffee experiences at home. Now consumers are back ‘on the go,’ St Pierre’s food to go range, along with St Pierre’s multipack offering, is in growth year on year, presenting a major opportunity for retailers, and in turn wholesalers, to engage shoppers and prompt regular additional purchasing any time of day.
“Wholesalers should capitalise on consumers’ enjoyment of hot drinks and bakery items in convenience stores by helping their retailer customers make bakery items part of their food to go offerings,” says Corrigan. “Wholesalers can do this by including a wide selection of best-selling bakery goods in their depots and displaying them prominently, particularly extended shelf-life products like those from St Pierre, which mean wholesalers and their retailer customers can also reduce the risk of wastage. Wholesalers should also work with suppliers to optimise delivery of bakery products to their depots at optimum freshness.”
The St Pierre food to go range comprises Caramel Waffles, Millionaires Waffle and Brioche Waffles, whilst its multipack offerings include Brioche Swirls, Chocolate Chip Brioche Swirls, Brioche Rolls, Chocolate Chip Brioche Rolls, Chocolate Filled Crepes, Vegan Croissants and Vegan Pains au Chocolat. The range is ambient, meaning retailers and operators alike have no need to wait for products to thaw before serving and with extended shelf-life, they can also reduce the risk of wastage.
“We’ve reformulated our multi-pack Croissants and Pains au Chocolat. We’re continuously reviewing our products to ensure we offer the best quality,” continues Corrigan. “As part of that process, we have updated these products, and a by-product of doing so is that they are now suitable for vegans. This is another key selling point for the wholesale market, as vegetarian and vegan options continue to be popular.”
Total morning goods value sales for the last 12 weeks are 12 per cent ahead on the previous quarter (Nielsen Value Sales – L12 Weeks October 22nd, 2022). St Pierre is outgrowing the category, with 55 per cent value growth in the last 12 weeks (Nielsen Value Sales – L52 Weeks Oct 22nd, 2022). New distribution points of St Pierre Croissants and Pain Au Chocolat in Asda have raised awareness of St Pierre’s morning goods with consumers, resulting in increased likelihood to buy them in the convenience channel.
“Consumers are increasingly looking for food to go products that deliver simple indulgence,” advises Corrigan. “Wholesalers can easily cater for this with St Pierre’s food to go range of sweet bakery treats, which help their retailer customers ‘upgrade’ their bakery offerings from traditional staples to something more premium.”
Consistent brand building in consumer and trade spaces plays a key role as wholesalers and retailers want to offer trusted brands. St Pierre is actively building awareness and loyalty, with increased marketing spend in 2023, with a raft of campaigns in planning. These are designed to highlight the versatility of the products across all meal occasions.
“Wholesalers should look at where growth is coming from and dedicate additional product facings where possible,” suggests Corrigan. “The growth in croissants, for example – especially from St Pierre, which also offers extended shelf life and helps to reduce wastage with these time-sensitive products – means that wholesalers can be ready for unpredictable uplifts. Another important sales driver for wholesalers is the resurgence of food to go. With consumers out and about again, out of home footfall is returning to pre-pandemic levels, bringing food-to-go opportunities back to the fore. However, in the current economic climate, people are cutting back on their spending habits and watching their spending, so extended life products like those from St Pierre will continue to support wholesalers navigating unpredictable sales patterns.”
Kenton Burchell, Trading Director at Bestway Wholesale comments: “According to Lumina’s report, convenience stores are moving forward with a new concept of ‘innovative store models’ and ‘on the go’ that includes hot food, drinks, and other services as key drivers.
“With the continued trend in hybrid working, consumers will rely on their convenience store for new concepts in hot food to go. Convenience stores need to ensure they have these in store to meet consumers’ lunch missions.
“Hot food to go will benefit passing commuters – those who are travelling and on the road for work. This will increase footfall for convenience stores.”
With the cost-of-living crisis and continued hybrid working, consumers are looking for value for money on what they spend on food. Meal deal promotions make it more cost effective for consumers than buying individual products.
“Shoppers are looking for a variety of lunch meal deals depending on the benefits they are looking for, this will be a sandwich/hot food to go, with drink and a snack/dessert as part of the package of the meal deal,” adds Kenton Burchell.
“Shoppers are also looking for healthier varieties to meet their dietary needs, e.g., gluten free or dairy free food to go.”
According to Lumina’s report, the food to go market is set to have a turnover to the value of £23.0 billion in 2025.
Based on Lumina’s report it also showed the data from WE 20.01.22 with % change vs 12 WE an increase of +3% in Food to go for lunch in comparison to +1% in the Eating Out market category. The report also includes a report showing a +1% in Drinks eating out and +10% on to Drinks to go.
The biggest trends driving the food to go sector are vegan food at 48% and healthy eating at 46%, followed by gluten free, high protein at 8% and Indian cuisine (Lumina Intelligence, March 2022).
According to a report by Uren on UK Food Trends, consumers are becoming more interested in where their food comes from, where it is grown and how it is produced. This gives a lot of pressure from manufacturers to ensure that this information is traceable.
“Wholesalers should stock key products such as pizzas, sausages, chips, and burgers,” says Kenton.
“At Bestway, we ensure that we stock different types of sandwiches and ready to heat food to go items for retailers to stock in their store.”
Bestway stocks food to go items such as Gazebo Grab & Go Chicken Tikka Samosa, Rustlers The Southern Fried Chicken Sub Sandwich with Creamy Mayonnaise and Snax on the Go Peppered Steak Slice.
“Wholesalers will need to be aware of Lunch & Food to Go trends and what retailers should have in stock,” suggests Kenton. “Review the data on best selling items, what promotions retailers are including for their Food to Go and widen the range of this category.”
“Following the impact of Covid restrictions, the UK food-to-go market has made a strong recovery and is predicted to be worth £23.4 billion by 2027, 26% more than pre-pandemic levels, according to a forecast from insight provider IGD,” comments a Nestle Confectionery spokesperson.
25% of all out-of-home shopping missions include a sweet snack (Kantar). And during 2022 we saw confectionery purchased on-the-go reinforce its importance to the mission, as it grew by +15.4% as shoppers returned to more typical out-of-home shopping behaviours (Kantar). What’s more, confectionery is an integral part of the lunch occasion with KITKAT being the most popular brand eaten with sandwiches (Kantar).
“For wholesalers looking to capitalise on this lucrative category, stocking a well-considered food-to-go range which caters for break occasions across the day, will help retailers provide a strong offering for their shoppers,” adds the spokesperson. “The singles confectionery format plays a key role in on-the-go shopping missions. In 2022 the format grew +5.6% in Symbols & Independents, with Nestlé confectionery singles driving this growth (+11.6%); the fastest growing manufacturer last year (IRI). Be sure to stock best-sellers across a range of need states to cater for a breadth of shoppers, as well as new product launches which generate excitement and interest in the category.”
A great example of a recent new product launch which has caught shoppers’ attention is KITKAT Vegan. Originally launched as a limited edition in 2021 it is now back for good. The single 4-Finger bar provides a plant-based break, made with a rice-based milk alternative to create an indulgent-tasting vegan chocolate and crispy wafer combo. What’s more, it’s not the only KITKAT innovation catching the eye of shoppers this year; a new KITKAT 4 Finger Caramel launched into the market in February, alongside a revamped KITKAT 4 Finger Dark complete with a new recipe and refreshed packaging, making it an even tastier option for dark chocolate fans.
Finally, within the singles confectionery format Duos are growing ahead of standard singles (+5% vs +2%.)
“Nestlé’s Duos are the fastest growing in the market, and wholesalers should be sure to offer best-selling brands such as KITKAT Chunky, LION and YORKIE which are proving popular with shoppers in this product format,” advises the spokesperson.
Ben Knop, food to go innovation marketing manager for Premier Foods, comments: “When it comes to breakfast occasions, shoppers are looking for products that are convenient and quick to consume. In February 2023 it was reported that 40% of workers in Great Britain had worked from home in the last seven days – with 71% saying that they had travelled to work (Statista). This hybrid lifestyle means that there is a significant need for breakfast options that can be consumed on the go or at home.”
For convenient breakfast choices, Ambrosia’s ready-to-eat (RTE) porridge pots provide the perfect solution. Whilst most products in this category require preparation, this product can be enjoyed ambient or hot, with no need to add hot water, making it ideal for shoppers seeking a convenient breakfast option. They are available in Original, Raspberry, and Golden Syrup flavours at a MRSP of £1.29.
Many consumers see breakfast as the most important meal of the day, resulting in demand for healthier options. Recognising this, Ambrosia has ensured its HFSS-compliant porridge pots contain British wholegrain oats, real fruit and no artificial colours, flavours, or preservatives. They also provide a source of protein, fibre and calcium and contain less than 3% fat.
“Flavour is also a key driver at breakfast occasions, with consumers looking for products that deliver great taste, as well as the added benefits of health and convenience,” adds Knop. “Ambrosia Porridge Pots offer the iconic creamy taste of the Ambrosia products that consumers know and love. Consumer trials found that 88% of shoppers who tried the product intended to repurchase, with flavour identified as shoppers’ standout quality of the pots.”
Andrew Bradshaw, UK Sales Director at Dole Sunshine Company, comments: “There’s no doubt that consumers have become even more health aware since the start of the pandemic and unsurprisingly this has translated into being more heath conscious with their food choices and the idea of adopting a flexitarian diet has gained momentum. For many, this has meant moving towards more of a plant-based diet which is free of animal ingredients and is thought to improve your health and boost energy levels. Some consumers are looking to give up meat altogether as a life-choice, while others are just looking to upweight their consumption of fruit and vegetables for the associated health reasons, such as looking for fibre and other nutrients that naturally come with plants. In fact, a recent Mintel report revealed that over 20% of UK consumers feel they don’t eat enough fruit and vegetables.”
One of the main food groups in a plant-based diet is fruit, which is where Dole’s fruit in juice range comes into play, with all the variants having zero added sugar, artificial sweeteners, or flavourings, are less than 100 calories per serving. The brand’s best-selling products are the Pineapple, Mandarin, Mixed Fruit and Peach variants of the fruit in juice range and come in convenient and recyclable packs which can be eaten at home or on the go.
Dole has just announced the arrival of its new Fruit and Cream (plant-based cream) dessert range which combines sun-ripened fruit with a tasty and smooth plant-based cream. It’s available in two flavours that consumers love, apple and cinnamon along with peach and vanilla, with an RRP of just £2.49 for a pack of four. Although the pandemic has encouraged consumers to want to eat more healthily, this is being impacted by the cost-of-living crisis, which is forcing many consumers to change behaviours and make difficult decisions. Shoppers want indulgent, healthier desserts, but price is a key factor for many when considering which ones to buy, with an increasing number recognising that ambient products have a longer shelf life and therefore offer better value for money and less waste, and the new Fruit and Cream dessert range meets this need perfectly.
Dole also recently launched two larger variants of its Fruit in Juice range which are perfect for consumers looking for a healthy plant-based snack on the go. These new 198g packs of Pineapple in Juice as well as Tropical Fruit in Juice are just right for the chiller and even come with a toothpick for ease of consumption on the move.
Dole Sunshine Company is the UK category leader in packaged fruit snacks, its entire product range containing 100% real fruit, with no added sugar in any of its fruit in juice range. Its latest data shows Dole has a 58% value share of the fruit in juice cups category.
“Our products are enjoyed by consumers not only because of their taste and health benefits, but also due to their versatility as they can be consumed at breakfast, as a mid-morning snack, as a dessert, at home, in the office, at the gym, on the train or literally anywhere and whenever you like,” adds Bradshaw.
“It feels like there is real headroom for growth in plant-based sales if wholesalers and convenience retailers give this area the focus it deserves and appropriate space in-depot and in-store, as well as signposting it appropriately to their customers,” says Bradshaw. “The big takeout should be that plant-based no longer needs to be boring or niche, and can, in fact, be a great, convenient healthy snack. Dole fruit pots in the 4 x 113g and 198g formats as well as our new Fruit and Cream range offer fantastic value, are part of your five-a-day and should be part of your ambient and food to go fixtures, giving consumers great choice and retailers great margins with low or no waste.”
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