Football’s World Cup, set to kick off on November 20, is the planet’s most watched event on television, even bigger than the Olympics.
Millions of consumers will be gathering in their homes with their friends to watch the games, sharing snacks as they do so.
This of course presents a huge opportunity for wholesalers to stock up on snacks, as retailers will want to profit from the Big Night In occasion.
Mike Chapman, Head of Wholesale at PepsiCo, tells Wholesale Manager how wholesalers can maximise sales.
What is your background? How long have you been at PepsiCo and where did you work before that?
I started my career in FMCG over 16 years ago and have worked for Britvic and Mars Wrigley prior to joining PepsiCo in January of this year. I’ve worked across the trade in various commercial roles in grocery, high street/travel retail and the wholesale sector, as well as leading large field teams.
Tell us about your role.
I lead the wholesale channel here at PepsiCo, a dedicated team who manage all the relationships with our key wholesale partners in the UK, across our snacks and grains categories. We’re supported by our in-house e-commerce, category and marketing experts who help us deliver exciting, branded campaigns with our customers.
What are the biggest trends in the crisps & snacks market? Is it in growth?
In the last year, savoury snacks have delivered value growth of +12.7%1, with crisps and snacks being the second biggest segment, making up 44% of snacking occasions2. Accounting for 32% of impulse snacking occasions3, we know that taste is the number one driver of choice when buying crisps and snacks4. We have also noticed a rising trend in shopper demands for bold and exciting flavours – to help wholesalers cater to this, we recently expanded our Doritos range with a Loaded Pepperoni Pizza flavour. As well as the new flavours from Doritos, we also expanded our Walkers MAX Strong range to include Fiery Prawn Cocktail and Hot Sauce Blaze. Both new flavours are non-HFSS and act as an extension of Walker’s ‘hot and spicy’ flavour options, which consumers rank in their top three favourite flavours5.
Is the Big Night In currently a major purchase driver?
Big Night In is a major opportunity for savoury snacking sales in this channel. 42% of all impulse snacking occasions come from fun moments with friends, family time together and the evening unwind and treat occasions – all of which form part of the Big Night In occasion6. With the World Cup just around the corner and football being the number one passion point for UK consumers7, we predict that the tournament will create an even greater opportunity for wholesalers to profit from Big Night In purchases, as retailers look to stock up ahead of the pre-match buzz. Wholesalers need to ensure that they are offering larger sharing formats in order to maximise sales for the snacking category and encourage shoppers to trade up to a pack size that can be enjoyed with multiple people.
Which pack formats are doing well at the moment?
Currently, we are seeing a trend in the growth of sharing formats. Sharing is the largest segment within Crisps, Snacks and Nuts and makes up 54% of the category. It is also the biggest driver of growth, with sales growing +13.8%8. PMP (price marked pack) sharing formats make up the largest part of the segment at 37% and are growing rapidly9. With shoppers set to enjoy more Big Night In occasions in the coming weeks, sharing formats represent a great sales opportunity for this channel.
What’s more, four out of the top five non-PMP sharing SKUs come from the Walkers range, which are Doritos (x2), Monster Munch and Quavers10. Our advice to wholesalers would be to encourage retailers to stock these brands in sharing formats to help them make the most out of this sales opportunity11. Our core Doritos range (+5.3%), Sensations (+27%), and Walkers Crisps (+30%) ranges have also performed strongly since last year, so wholesalers should consider this as they look at what products retailers will need to stock to meet consumer demand.
How important is it for wholesalers to stock price marked packs and what strategies do you have to help wholesalers grow the crisps and snacks category amid the cost-of-living crisis?
Stocking PMPs is key for retailers looking to maximise sales, meaning that wholesalers should ensure they are catering to this demand. In fact, PMPs account for 49% of crisps and snacks value sales12, making them the number one contributor to category growth in value vs other segments13. As value continues to play a strong role within the savoury snacking category, PMPs provide both accessibility and affordability to consumers. We recommend that wholesalers stock a variety of PMP formats and offer our core HERO 25 range of bestsellers in a number of PMPs. As shoppers continue to look for ways to add excitement to their snacking occasions, adding NPD to your core offering gives them a variety of options. This is particularly true of Gen-Z consumers, who over-index in this channel vs other channels.14 We recently expanded the Walkers MAX Strong range this year to PMP format, so that retailers can offer both value and innovation to those looking for exciting flavours.
What advice do you have for wholesalers on merchandising crisps in depot?
To summarise, our three top tips for wholesalers in depot are:
1. To help retailers maximise sales, wholesalers should stock our core HERO 25 range which includes a number of bestsellers such as: Walkers, Doritos, Monster Munch and Quavers15. This helps retailers deliver against consumer needs for exciting flavours and ranges they already know and love.
2. Wholesalers should stock products that cover the different shopper missions and occasions we’re seeing demand for in the channel. Wholesalers should block by key mission; for later (multipacks), for tonight (sharing), Singles and PMPs.
3. Certain products will be impacted in the upcoming HFSS regulations, and we have provided advice for retailers in our Guide to Getting Ready For HFSS, which advises retailers on navigating the legislation while maximising crisps sales. Using front-of-store, end-of-aisle displays and secondary sitings can also help to keep snacking products top of mind for consumers.
How do you help wholesalers and retailers to maximise the crisps & snacks category while remaining compliant with the new HFSS legislation?
Although wholesalers will not be directly affected by the HFSS legislation, we want to enable them to offer advice and guidance on what to stock so retailers can take the right action to grow their snacking sales in store. Our savoury snacking portfolio is perfectly positioned to help wholesalers navigate the recent HFSS legislation. We’ve introduced several taste-led non-HFSS lines which we believe will work best in this channel, including Walkers Oven Baked, Walkers MAX Strong, PopWorks, and Walkers 45% Less Salt.
We also want to help wholesalers to be knowledge leaders for retailers. Wholesalers can access our handy Digital HFSS Guide which focuses on snacking growth strategies and includes dos and don’ts, as well as handy visuals to help retailers navigate the HFSS restrictions. So, if asked about upcoming legislations, wholesalers can direct retailers to the digital guide as a source of support. Walkers has also applied clear labelling to product cases, offering guidance on where best to position in-store.
Do you have any NPD coming up?
We recently extended our Doritos range with a Loaded Pepperoni Pizza flavour option to attract Gen-Z shoppers looking for exciting flavours, helping the brand to continue leading in the Big Night In sharing occasion with this takeaway-themed NPD. This launch is in line with our goal that by 2025, half of our snacks sales will come from products that do not classify as high in fat, salt or sugar, or from products sold in portions of 100 calories or less. We have some exciting new launches planned across PepsiCo’s portfolio of brands in 2023 – watch this space!
What marketing support do you have for your products at the moment?
Our latest campaign will centre around our Walkers Baked range. The new campaign will reframe Walkers Baked in consumers’ minds from health-led to taste-led, while still being 100% non-HFSS and 50% less fat, demonstrating to consumers that Walker’s number one focus is delivering healthy snacking options that don’t compromise on flavour. It will also raise awareness of the brand’s packaging redesign with activation across TV and digital media.
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