Snack on

Even when the powers that be demand healthier eating habits, operators have to weigh up carefully the fact that when the going gets tough consumers won’t turn their back on treats and nibbles. Sheila Eggleston reports.

Some sectors have to tread warily when it comes to the sweet and savoury snacks it can offer but, as an affordable luxury, they have become irresistible to consumers looking for treats during tough times. At the same time, they provide operators with a welcome profit if their offer is the right one.

According to analyst Mintel, we're a nation of snack lovers fuelling the bagged snack market to reach a staggering value share of £2.47bn in 2010. It says on average the UK consumer spent £55 on crisps and nuts last year and this figure is expected to grow to more than £80 in 2014. Crisps accounted for 48% of sales, while other snacks including tortilla chips, popcorn and pork scratchings accounted for the rest.

Value for money and new flavours are the buzzwords in this sector and they have helped revitalise it. United Biscuits for instance recently launched two limited edition 50g curry packs – Mighty Madras and Rogan Oh-My–Josh. The company has also joined forces with the British Curry Club to offer consumers two main curry dishes in restaurants for the price of one with every pack of McCoy's purchased.

The promotion runs until November 2011. Helen Warren-Piper, marketing director for bagged snacks, says: "McCoy's has grown 8% in the last year, which is in no small part down to the success of the curry promotion we introduced in September last year. The promotion drove £1m in incremental sales, which demonstrates just how well consumers responded it."

Burts Chips has launched pesto chips as its latest seasonal limited edition, which will be available until September. Managing director Melvin Glynn says: "We take the opportunity to tap into seasonal sales seriously, as it allows us to constantly innovate and introduce new flavours to our consumers, who we know like to experiment and be one step ahead when it comes to discovering new products.

"We've always been regarded as a bit maverick in our approach and we aren't shy of shaking up the category with inventive seasonings – we believe, for example, we are the first to market with pesto crisps. Limited editions allow us to introduce new consumers to the brand, while creating excitement for our existing fans."

Another category in growth is confectionery and the UK's share is worth more than £4.5bn [Nielsen MAT to 30.4.11]. In foodservice, it has an estimated value of £670.5m.

Cadbury's share stands at 30%, experiencing growth of 5%. It's a category that operators can really benefit from if they get their offer right, says Susan Nash, trade communications manager at Kraft Foods, owner of the Cadbury brand.

"However tapping into this huge opportunity can seem like a bit of a minefield to operators given the sheer quantity of confectionery products around and the need to balance the space available with other important categories like crisps and soft drinks."

Nash says operators should first consider top selling lines such as its Cadbury Wispa and Twirl that their consumers will know and depend on for quality. Secondly, they should consider the range they offer and how confectionery can complement it and drive incremental sales.

"For example, if hot beverages are core to the offering, then biscuit based confectionery will complement perfectly. If the outlet is a destination for a 'consumer treat', then a more indulgent line will be a good fit. If customers are skipping dessert, then a 'take out' confectionery line, offered near or by the till, can help drive impulse sales," she explains.

"Operators should also consider their customer profile. Do they cater for business clients and workers who are going back to the office after a break or lunch? If so, they should consider offering mints and gums. If their customers are using the facility for meetings, a sharing formats bag can help drive incremental purchase. In essence, product should be selected on performance, fit with outlet offering and fit with customer profile."

Nash says that Cadbury's 'core seven' chocolate single lines represent more than £100m of confectionery sales in impulse. These are Wispa, Twirl, Cadbury Snack, Caramel, Boost, Double Decker and Crunchie.

Recent additions to its line up include limited edition Flake Allure, a dairy milk chocolate bar containing crumbly Flake chocolate and smooth truffle; Cadbury Dairy Milk Chocos, which are round shaped chocolate pieces; and its new limited edition Big Race wafer bar with cocoa crème and biscuit pieces covered in milk chocolate, which is part of its Cadbury Spots v Stripes Race Season campaign in association with the London 2012 Games Veronica Gartland, confectionery business unit lead at Nestlé Professional, says that whether we turn to our favourite choice for a midday boost at work, for a treat, or a sporting moment, there is a product for all occasions.

"Confectionery is a highly impulsive purchase and should therefore be situated in high traffic areas such as next to sandwich or drink chillers, and at the till. Research also shows that when confectionery is placed next to a hot beverage offering, not only are confectionery sales realised but hot beverage sales will increase by 12%."

She says caterers can benefit from this cross selling opportunity by serving hot beverages with the out of home market's top selling confectionery line – Nestlé's KitKat four finger.

"Different times of the day demand different types of confectionery, so it is essential to ensure all the necessary products are included in your range. In the out of home market, sugar confectionery records high levels of consumption as consumers look for that extra 'boost'."

Total sales of fairtrade products are worth £800m and rising because of consumer demand, according to the Fairtrade Foundation. The uptake of Rainforest Alliance certified products is also very good.

New products for foodservice include fairtrade specialist Peros' latest variants of Nero & Bianco chocolate. Available in 100g and 35g bars, orange and butterscotch flavours join the range that promises "indulgence with conscience" and are 100% fairtrade and organic.

Nestlé has also extended its range to include fairtrade products. "Alongside growing customer confectionery category sales, Nestlé takes its commitment to sustainability seriously. KitKat four finger milk and new 70% dark chocolate are both fairtrade certified," says Gartland.

"Furthermore, Nestlé's Cocoa Plan with a £65m investment over 10 years encapsulates numerous initiatives that help to ensure a sustainable future for the cocoa industry and the communities depending on it."