Research from Budweiser Brewing Group shows that PMPs are popular among both retailers and shoppers.
More than two-thirds (68%) of independents are in favour of PMPs, citing how they give shoppers confidence as the key reason (Lumina).
Consumers echoed this view, with more than two-thirds agreeing that PMPs provide a guarantee that they are not paying more than they should (Lumina).
“The current economic climate is having huge impacts on the way people are spending money,” comments Sunny Mirpuri, Director for Wholesale & Convenience, Budweiser Brewing Group. “As consumers look to cut back on their spending and reduce trips to pubs and restaurants, we are expecting to see consumers treat themselves at home instead – presenting an opportunity for retailers to encourage shoppers to trade up.
Retailers will have to rely more heavily on brands and products that consumers already know and need to be prepared for this demand.”
Consumer impression is that PMPs offer great value; 60% of consumers believe that the price-marked products they see on shelves are a special promotion (Lumina), something that will become even more essential as the cost-of-living places pressure on consumers.
Promotions also play a key role in maximising the PMP opportunity. Beer and cider shoppers are not only more impulsive than the average shopper but are also more likely to be on a mission to cater to at-home occasions such as the Big Night In (Lumina). Eye- catching displays with beer PMPs at their heart, especially cross-category opportunities with snacks, like crisps and cheese, will help retailers capture this spend.
Clare Newton, Trade Marketing Executive at Swizzels, comments: “We’ve found that stocking on a full range of products within a specific ‘product family’ and ensuring PMPs are a core feature of any product range influences consumers’ willingness to make an impulse purchase within the category. By ensuring this, consumers are given an enhanced feeling of control over their spending and the full knowledge that the price they see on pack will be the price they pay at the checkout, which proves particularly valuable during tough economic times.”
“PMPs prove to be particularly valuable for consumers,” adds Newton. “Having clear visibility of the value for money that our products offer with a PMP, means that consumers can still treat themselves to their favourites from our range, without having to worry about exceeding their budget. We’ve found that in times of economic crises, these options are hugely preferred.”
Much loved by the nation, one of Swizzels’ best-selling products is squashies. Encouraged by this growing trend, the brand has recently launched the 60g Squashies packs as an “On The Go” option for consumers who are looking for their favourite sweet treats in a more portable format.
Some other best-selling Swizzels products include: Love Hearts, Refreshers, Drumstick Lollies, Rainbow Drops, Double Lollies and Fruity Pops.
Swizzels has launched the 60g Squashies as an ‘On The Go’ option for consumers who are looking for their favourite sweet treats in a more portable format.
It has also launched new Minions Sherbet Dips with three flavours: Fizzy Orange, Sour Apple and Tangy Berry.
The Swizzels brand has continued to grow 13.7% over the last year (Circana), this data is not only a testament to the fact that consumers are still opting to treat themselves with sugar confectionery regardless of economic challenges, but also to the fact that retailers are taking vital steps to make sure that consumers are presented with the product lines that they’re actively seeking.
“PMPs offer better value for money for customers during tough economic times,” adds Newton. “By ensuring retailers have stocked up on PMPs, consumers are given an enhanced feeling of control over their spending and the full knowledge that the price they see on pack will be the price they pay at the checkout, which proves valuable during the current economic climate and helps build trust.”
Andy Walvin, UK Sales Manager at Kervan Gida UK Ltd, comments: “PMPs continue to perform significantly well in retail and convenience, particularly in the confectionery category as they communicate a value deal to shoppers and encourage impulse buys. In fact, three in five consumers (60%) believe that the PMPs they see on-shelf are on a special promotion (Lumina).
It’s important to show value: Lumina Intelligence research confirms that price remains the second most important factor for shoppers. With the rising cost of living, this will remain a key factor in their purchasing decisions.
Up to 52% of confectionery occasions are shared with other people, and in the last year multipacks and sharing sweets’ sales value grew 3.9% (Nielsen). Wholesalers and independents should stock up on sharing bags such as Bebeto 150g Big Mix, 150g Big Fizzy Mix, 150g Strawberry, and 150g Fizzy Watermelons gummy lines (available in £1 PMP). Importantly, 82% of retailers say £1 PMPs are must stock items (HIM) and £1 PMP ranges are the main driver of growth in Convenience & Impulse (Kantar).
Kervan Gida recently launched two new vegan lines, Fizzy Vegan Peach Hearts and Fizzy Vegan Ring Mix, as welcome plant-based additions to the core 150g range.
The Peach Hearts are soft gummy, peach-blush and pink heart-shaped sweets with a fizzy, tangy coating, bursting with peach flavour, and the Ring Mix are chewy, gummy ring-shaped sweets in Strawberry, Apple and Raspberry flavours with a tangy, fizzy coating.
Both Fizzy Vegan Peach Hearts and Fizzy Vegan Ring Mix come in a 150g sharing size bag with euro-hook format. They are vegan approved with added real fruit juice and no artificial colours. They are also halal certified and are available as PMPs.
Nic Storey, Senior Impulse Sales Director at PepsiCo, comments: “RRP Price marked packs continue to play a strong role within savoury snacking. Sharing RRP PMPs account for 42% of salty snacks value sales in the segment and continue to grow at +20.1% vs. previous year (Nielsen), demonstrating just how important RRP PMPs remain. This is particularly the case when you consider that this format is the number one contributor to crisps and snacks growth in value vs other segments (Nielsen).”
In addition, three of the top five non-PMP sharing format SKUs come from the Walkers range (Nielsen). RRP PMPs drive confidence in a brand, so on top of this already being a firm familiar favourite for many, retailers are sure to drive sales by stocking Walkers RRP PMPs.
“To maximise this growth opportunity, we recommend that retailers stock a variety of RRP PMPs in-store to cater to multiple snacking occasions,” adds Storey. “We offer our core HERO 25 range of bestsellers in a number of RRP PMPs and our most popular “family” snacking brands, which include Doritos, Monster Munch, Quavers, Wotsits and Walkers Crisps, are all available in the sharing RRP PMP format. They provide an excellent choice for stores looking for strong returns from well-loved brands that deliver on taste and enjoyment.”
Ben Parker, Retail Commercial Director at Britvic, comments: “Price marked packs continue to play a strong role within soft drinks, offering the reassurance of value to shoppers which in turn creates confidence in local retailers and how they price their products. Currently, 66.9% of sales in the convivence channel now go through as PMP, an increase from 66.0% in 2021 (IRI).
“As shoppers navigate the cost-of-living crisis, shopping habits will continue to change. Consumers are looking to make their money stretch as far as possible for them and as part of this, we expect to see smaller transactions and smaller pack sizes come into play. However, we also expect to see growth in at home family dining and at home socialising, both of which are important occasions for soft drinks.”
Retailers can meet these shopper needs by stocking market leading brands in a variety of price-marked pack formats to cater to multiple soft drink occasions and signpost value to their shoppers. Pepsi MAX® six-pack price-marked packs for example, will give these shoppers an easier way to buy into the soft drinks category in a multipack format. The squash category also provides a great value offering for families. For example, Robinsons, the squash brand leader in the convenience channel (IRI), offers a 900ml price-marked bottle at £1.49, creating a cost-effective solution to family shoppers at just 6p per serve. For shoppers looking for on-the-go solutions, Robinsons ready to drink is available in a 500ml bottle at a £1 price-marked pack, helping to drive impulse sales.
This year, Britvic is looking to support retailers further with a number of measures, including with its price-marked range. Across the range the profit on return percentage (POR%) will be maintained so that as the price-marked packs increase in price, the cash margin grows. On a selection of core price-marked pack lines including 500ml formats of Pepsi MAX and Lipton Ice Tea, as well as Fruit Shoot, Britvic will look to increase the price-marked pack in line with inflationary pressures as well as the POR%, to create more shared margin and an even stronger translation to cash margin.
“This is as a result of recognising the importance of listening to retailers, as part of our role as a responsible trade partner, ensuring we reflect the challenges in the market at that moment,” adds Parker Matt Collins, Trading Director at KP Snacks, comments: “PMPs have seen significant growth in the last number of years, with the format expected to continue increasing in both relevance and popularity. Not only do PMPs offer consumers great value for money, the clear pricing also gives them assurance that they are not being over charged. PMPs are a hugely versatile format that caters for multiple missions and occasions, whether that be hunger fill or sharing. 70% of bagged snacks shoppers purchase items on impulse and PMPs drive these sales through clear messaging and displays (Lumina).”
Worth £325m (NielsenIQ in CSN, this format is popular with retailers and consumers alike, with 40% of snack shoppers saying they are more likely to buy a product in PMP format (HIM). The PMP format is now the largest format within CSN across symbols and independents.
“At KP Snacks, we help retailers by ensuring we offer the right product range in the right formats, boosted with the right promotions and in-store merchandising,” adds Collins. “Worth £105.1m and growing in value at +53.2% (NielsenIQ), KP Snacks’ portfolio of large format PMPs is extensive, designed to excite shoppers and drive impulsive purchases for retailers.”
KP also offers a wide and exciting range of smaller format PMPs, including the UK’s number 1 best value brand, Space Raiders, which are sold in 40p formats (Nielsen). Smaller format PMPs are perfect for consumers looking for a quick and affordable snack throughout the day. KP also offers other classic heritage brands in singles format, including Skips, Discos, and Wheat Crunchies, which are available as 50p PMPs. Kenton Burchell, Trading Director at Bestway Wholesale, comments: “TWC conducted research with over 200 independent retailers in August/ September 2022 showed that PMPs communicate value to shoppers. It was also noted that the price increase of suppliers will not deter shoppers from buying PMPs.”
The DCS group stated that with the current climate, one in three shoppers say that PMPs reassures customers that they are not overcharged on their purchases, with shoppers believing that PMPs are cheaper than the normal price.
“During campaigns wholesalers should create theatre and make the customer shopping journey enjoyable to the customer,” adds Burchell. “They should: collaborate with suppliers to bring the best value products and introduce NPDs; plan a tasting event and introductory product price to attract customers in purchasing and expand the category brand; invest in technology such as new apps to make it easier for retailers to get firsthand information on promotions, products, and services; and run media campaigns and attract customers that will give insights to product descriptions and engaging visual content.”
Elaine Rothballer, Head of Marketing Consumer Brands at Kepak, home of Rustlers, comments: “While consumers generally accept a price difference in convenience, the current pressure on household budgets will undoubtedly be putting this under greater scrutiny. 1 in 6 (TWC) are already shopping less in convenience stores in the past six months, with the number of those prepared to pay more for products vs in a supermarket falling (TWC).
Two thirds of the population believe it is important to make savings on their grocery bills (Nielsen), however, 69% of consumers plan to shop at many stores to take advantage of offers (Nielsen) with 60% actively looking out for and trying to buy products when on promotions (Nielsen), creating an opportunity for convenience retailers to appeal to shoppers.
PMPs continue to provide a vital reassurance of value, with all of Rustlers’ bestsellers available in this format, however, value isn’t just confined to the price of a single product. Product promotions also highlight good value and drive impulse purchase, such as an on-pack promotion giving shoppers something extra.
“Savvy shopping is no longer just the domain of those on a tight budget,” adds Rothballer. “For many shoppers, the stigma once associated with finding a bargain is waning and they’re prepared to seek these savings, becoming common practice in FMCG today. PMPs at accessible price points help to attract new customers and encourage repeat purchase from both brand loyalists and impulse shoppers.”
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