The British Sweet Biscuit market generated £2.5bn of retail sales last year (Nielsen). Biscuits and cakes remain one of the few categories where shoppers are willing to spend money on treats, especially during tougher economic times when shoppers often turn to the brands they know and love.
“At Fox’s Burton’s Companies (FBC UK) with 170 years of baking heritage, we know that Britain is a nation that loves a biscuit with 94% of those Sweet Biscuit occasions driven by enjoyment (Kantar), comments Colin Taylor, Trade Marketing Director at Fox’s Burton’s Companies UK. “Brands such as Fox’s and Burton’s biscuits are therefore at the forefront of consumers’ minds as trusted, well-known brands, offering consumers high quality treats that are relevant all year round (Nielsen).”
Smaller cookies like Maryland Choc Chip 200g rollwraps are in volume growth and seeing sales increase 13% year on year, as shoppers fill their biscuit tins with these family favourites (Nielsen). Large cookies like Fox’s Fabulous Cookies are also in volume growth (+6%) and growing even faster in value (Nielsen). This growth has been driven by shoppers looking for small, affordable indulgences in these challenging times, but also by Fox’s investment in TV advertising for Fabulous Cookies in 2022, which will be on screens again later this year.
As an affordable indulgence, ‘Special Treats’ have benefitted from the same “lipstick effect”, where consumers spend on more affordable, premium treats, such as large cookies. Increased product innovation in this market has fuelled this. ‘Children’s biscuits’ have been especially buoyant as the biggest brand in this category (Jammie Dodgers) grows value sales by 13%, shoppers are increasingly seeking out minis packs as they offer small portion sizes in a convenient on-the-go format (Nielsen). The FBC UK mini’s portfolio includes Jammie Dodger Minis, Choccie Dodger Minis, Maryland Minis and Party Ring Minis, these products grew in sales by almost £10m year on year in 2022 (Nielsen).
‘Healthier biscuits’ volume sales slowed slightly (Nielsen), although there are pockets of growth with some reformulated versions of ‘Everyday Biscuits’ growing sales and, ‘Cookies’ growing by 3% in value last year to £8.6m. The Skinny Cookie Co range launched in 2021 and has seen sales rapidly build to £3.2m over the last year.
Within ‘Sweet Biscuits’, there is a big opportunity to expand on the ‘seasonal’ and ‘treating’ aisle which are currently under-developed in many convenience stores. There are also more options to include additional smaller pack formats which could be added into meal-deal promotions and used to drive extra category growth to increase sales volumes.
“It’s essential wholesalers offer different pack formats, including smaller formats, to meet diverse needs and cater to varied treating occasions,” adds Taylor. “Offering variety and providing retailers with a broader range of pack options is key to allow retailers to present consumers with more choice.”
The iconic Maryland brand is worth £58m and the Maryland Choc Chip 200g rollwrap is the brand’s best seller in that range. Jammie Dodgers has now grown to sell over £30m of biscuits in the last year and the Raspberry 140g is the biggest product under the brand. Fox’s Fabulous Cookies are worth £21.5m last year and the Half Coated cookie is the best seller in that range (Nielsen).
FBC UK makes many of the UK’s favourite biscuit brands. All its major brands are in good growth year on year and over the last 52 weeks FBC is the second biggest branded manufacturer in the British Sweet Biscuit category (Nielsen). FBC UK is also the fastest growing major Sweet Biscuit manufacturer at +7.5% year on year, taking it to 11.4% market share.
“Seasonal packet lines and biscuit assortments can be an opportunity for all year-round gifting,” says Taylor. “We know that assortments such as Fox’s Classic 275g and Paterson’s 1Kg Assortment can sell at events all year round such as Mother’s Day and Easter. FBC UK’s diverse portfolio contains a wide range of gifting options and allows wholesalers to provide retailers with a variety of products to suit every need.”
“We’re seeing a so-called ‘lipstick effect’ surface for biscuits. With economic uncertainty manifesting itself once more, shoppers are opting for the bestselling, everyday biscuits which consumers perceive as a permissible treat or affordable indulgence,” comments Asl? Özen Turhan, Chief Marketing Officer at pladis UK&I. “And, when tucking into these little treats, they’ll turn to established, heritage brands – such as McVitie’s – for products which they trust will deliver on taste and quality.”
Although shoppers typically look to treat-led categories – such as biscuits and cakes – for a touch of indulgence, there’s still an important place for healthier propositions in these categories. In order to adapt to increasing consumer demand for these products, pladis has added a raft of lighter NPD to the mix across some of its biggest brands.
This includes the launch of McVitie’s Rich Tea Delights and McVitie’s Digestives Wholesense – two new iterations of these biscuit tin classics which includes 30% less sugar than the typical semi-sweet/digestive biscuit and only 38 calories per biscuit, all whilst retaining the same signature McVitie’s taste.
“Really, it’s all about offering snacking shoppers even more choice – whether they’re looking for an indulgent treat or something a little lighter,” adds Turhan. “By stocking up on McVitie’s Rich Tea Delights and McVitie’s Digestives Wholesense, wholesalers can showcase the breadth of products on offer – particularly across the McVitie’s portfolio – and continue to drive relevance for treats among a broader shopper base.”
“It’s all about nailing your range to deliver a fulfilled shopping trip for your retail customers,” says Turhan. “For example, stocking more premium lines to drive higher value sales is key, but wholesalers should also cater to shoppers with more limited budgets by stocking a range of Everyday Treats, such as McVitie’s Jaffa Cakes, along with classic chocolately propositions, like McVitie’s Chocolate Digestives.”
It would be remiss of wholesalers not to stock the core bestsellers, too. McVitie’s accounts for six of the top 10 bestselling biscuits in convenience, including McVitie’s Milk Chocolate Digestives, McVitie’s Milk Chocolate Hobnobs, McVitie’s Original Digestives, McVitie’s Rich Tea, McVitie’s Jaffa Cakes and McVitie’s Dark Chocolate Digestives (Nielsen).
“We know that these are the products convenience shoppers expect to see when they’re browsing the biscuit aisle, so ultimately, wholesalers who are not stocking these crucial lines are missing out on their share of an £251M sales opportunity (Nielsen),” Turhan continues.
Now worth £421M (Nielsen), McVitie’s is the number one biscuit brand in the UK, purchased by 81% of UK households (Kantar).
McVitie’s Chocolate Digestive is the nation’s favourite biscuit, while the McVitie’s brand dominates the top 10, with products like McVitie’s Chocolate Digestives, McVitie’s Jaffa Cakes and McVitie’s Rich Tea continuing to prove incredibly popular with the British public.
McVitie’s BN is now in the cake aisle, with a brand new, trend-led cake format – McVitie’s BN Mini Rolls. At just 100kcals per bar – and with a creamy flavoured filling, light sponge and chocolatey-coating – they’re perfect for family shoppers seeking something a little lighter, which still feels like a treat.
“Plus, we’ve made them available at an everyday low price point of just £1, so wholesalers and their retail customers can rest assured that they’ll have strong appeal among cash-conscious shoppers seeking great value snacks,” adds Turhan.
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.”
Many people have a hard time satisfying a broad range of sweet cravings without feeling guilt for indulging. Doughnuts in particular are seen as a tasty and often nostalgic treat, loved since childhood but now only to be enjoyed on rare occasions due to the level of indulgence.
“Shoppers should be able to give into cravings with delicious guilt-free treats. We therefore identified an opportunity to expand our consumers’ ‘better-for-you’ repertoire with the permissible version of the ultimate snacking treat: Fibre One 90 Calorie Doughnuts, which launched this summer,” adds Del Carmen.
Fibre One is the number one brand within the diet management category, with a range that not only tastes great but offers functional benefits thanks to a high fibre content. Each bar is individually wrapped in a box of four, making the treats perfect for on the go snacking and a midweek pick me up.
Frances Booth, Category Development & Marketing Manager, at Lotus Bakeries, comments: “There is nothing better than a hot drink and a biscuit to dunk when people are feeling low to cheer themselves up, especially in economic uncertainty. Lotus Biscoff is proud to be an affordable everyday treat that customers can enjoy whatever the occasion.”
As well as the original category leading complementary “with coffee” Lotus Biscoff biscuit, the new Lotus Biscoff Sandwich Biscuit is already a huge hit with UK shoppers. The Lotus Biscoff Sandwich Biscuit features the same unmatched flavour and satisfying crunch of the Lotus Biscoff biscuit but is circular in shape and packed with a delicious layer of Lotus Biscoff cream through the middle.
“Also available as Milk Chocolate or Vanilla cream variants, the new Lotus Biscoff Sandwich Biscuit provides just the right balance of familiarity and innovation,” adds Booth. “It combines the on-trend, much-loved Lotus Biscoff flavour but in an exciting new format and also has the benefit of being from a trusted brand which helps drive profits.”
Lotus Biscoff was named as Britain’s number one biscuit of choice. According to Yahoo Analytics, in 2022 the iconic Lotus Biscoff biscuit ranked higher than a bourbon biscuit or custard cream.
“There’s no denying that we are a nation of biscuit lovers and enjoy nothing more than dunking them in our hot beverage of choice, particularly in the comfort of our own home,” says Booth. “As such, wholesalers should make the make the most of this rapidly evolving category and have a well-stocked range.”
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