In the current economic landscape, where shoppers scrutinise every penny, price-marked packs (PMPs) have emerged as a crucial tool for convenience retailers looking to demonstrate value and build consumer trust. With seven out of 10 impulse shoppers now choosing price-marked products over non-marked alternatives, PMPs have become an essential component of the independent retailer's armoury.
In a year that has already seen convenience store owners face a barrage of legislation, costs and tax increases, the strategic deployment of PMPs offers a ray of hope for independent retailers seeking to maintain competitiveness and shopper loyalty.
"As the cost of living continues to be a pressure point for shoppers, the desire for products deemed to be good value for money is ever-growing," says Lauren George, External Communications Manager at Mars Wrigley. "PMP formats respond to this need by clearly displaying price to shoppers, offering reassurance of a fair cost for high-quality product. This produces a positive price perception that in turn drives sales."
George emphasises the consistency that PMPs bring to the shopping experience: "PMPs offer consumers guaranteed and consistent pricing that doesn't fluctuate every time they shop, helping to manage shopping budgets. This breeds invaluable trust – in the product and the retailer – and drives repeat purchases."
The consumer data backs this up. According to Lumina Intelligence Convenience Tracking Programme, 48 per cent of shoppers say they tend to shop in places with lots of PMPs, while 43 per cent of shoppers say they are more likely to shop in a convenience store that sells PMPs. Perhaps most tellingly, 63 per cent of shoppers say a price marked pack reassures them they're not being overcharged.
While some retailers may be tempted to avoid PMPs to capitalise on distress purchases through higher margins, Matt Stanton, Head of Insight at DCS Group, cautions against this approach: "Only around one in 10 missions are distress, whereas one in 5 are planned top-up missions and these shoppers will be much less likely to over-pay. Charging a competitive price, and using PMPs to do so, is an excellent way to drive shopper loyalty."
The snacks category exemplifies the growing importance of PMPs. Stuart Graham, Head of Convenience and Impulse at KP Snacks, reports that "the PMP format has seen significant growth in recent years and will stay increasingly relevant as the cost of living remains high and consumers continue to be more price-conscious. Retailers report that 86 per cent of shoppers are looking for value and deals and PMPs cater to this trend, offering consumers great value for money and clear pricing which reassures them that they're getting a good deal."
Graham adds: "57 per cent of impulse shoppers buy PMPs with this segment driving £325m in sales within CSN." With KP Snacks' PMP portfolio alone worth £129m, featuring products from 40p to £1.25 price points, the commercial potential for retailers is clear.
£1.25 PMPs are a key format for independent and symbol stores to focus on, accounting for 50 per cent of CSNP sales [Nielsen IQ] and worth £324m within the CSN category. Graham notes that 18 of the top 20 best-selling SKUs are £1.25 PMPs and, of those, 6 are KP Snacks brands.
£1 price point resilience
While inflation pressures have pushed many PMP products beyond the psychological £1 threshold, consumer resistance to higher price points remains strong, creating both challenges and opportunities for manufacturers and retailers.
Matt Smith, Marketing Director for Tayto UK, points to this trend in the snacks category: "Sharing PMPs remain the core of the category, having been the main driver of growth [+50 per cent in last 4 years] but this has slowed [+1.6 per cent YoY] as many brands moved above £1. In contrast, having remained at £1, Golden Wonder continues to outperform total snacks [+13 per cent], showing how important 'value' is in a market where household budgets remain under pressure."
Golden Wonder expanded £1 PMP range with new Transform-A-Snack variant
The performance of Golden Wonder's Transform-A-Snack £1 PMPs, which have grown 17 per cent [Circana] following collaborations with the Transformers movie franchise, demonstrates the continuing appeal of the £1 price point when combined with strong brand activation.
“We know how important the £1 price-point is to both consumers and retailers. By sticking to this key price-point we have continued to deliver great tasting, great value snacks with strong retailer margins. A highlight is our Transform-A-Snack brand, which is outperforming the market with 22 per cent growth [Circana], helped by on-pack promotions featuring Transformers movies”.
Building on this momentum, a Beef £1 PMP flavour, which performs strongly in 50p PMP, is now available as a £1 PMP. “This means the full flavour range is now available in £1 PMP – Saucy BBQ, Spicy, Cheese & Onion and … Beef,” Smith notes.
Taste remains king
While value perception may be driving the structural preference for PMPs, product enjoyment continues to be the primary purchase motivator within the critical impulse categories.
"Taste is a key consideration for retailers looking to diversify and inject excitement into their snacking and food to go offering," says Nic Storey, Senior Sales Director, Impulse & Field Sales at PepsiCo. "With enjoyment being the number one driver of choice when buying crisps and snacks, retailers should stock popular brands and flavours in formats suited to lunch and on the go, as well as offering the latest NPD in bold and exciting flavours to cater to this need for enjoyment whilst diversifying their range with something for everyone."
PepsiCo has responded to this trend with several high-profile PMP launches, including its Walkers Smokin' BBQ Sauce available in a 70g PMP (£1.25) format, and the collaboration with Heinz, also available in a 70g PMP (£1.25), both designed to encourage consumers to trade up through familiar but exciting flavour propositions.
Price-marked snacks display driving impulse purchases
The company's Extra Flamin' Hot range reflects another key flavour trend, with Storey noting that "the launch taps into consumer demand for enjoyment by leveraging the UK's love for spice, with the nation's desire for this attribute in food ranking as the second highest in Europe."
The shift toward more adventurous flavour profiles is particularly evident in the confectionery and gum categories, where fruit variants are showing remarkable growth.
Lauren George, of Mars Wrigley, highlights this trend: "We are still seeing demand for fruity flavours within the gum category. Fruity flavours are at the heart of Mars Wrigley's gum NPDs, marrying up with industry trends where fruit is the fastest growing gum segment with 70 per cent volume incremental and is growing 23 per cent faster than mint."
Mars Wrigley launches new Extra Refreshers
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The success of fruit-flavoured innovations is reshaping category dynamics, with George noting, "Mars Wrigley's EXTRA Watermelon flavour gained five per cent market share of fruit gum in its first year, outstripping previous fruit gum launches."
This consumer shift is attracting a new demographic of shoppers, with George explaining that "fruit flavours are attracting younger shoppers and are seen as fresher and more exciting compared to traditional flavours like mint.” She says this trend highlights “a shift toward more vibrant, tropical, and innovative flavours, appealing to evolving consumer tastes."
Mars Wrigley's recent launch of EXTRA Refreshers Watermelon Raspberry flavour underscores the commercial opportunity in this space, with 73 per cent of shoppers agreeing it represents a unique proposition and 69 per cent expressing purchase intent.
Heritage brands’ new relevance
The current economic climate has sparked renewed interest in established heritage brands, particularly when presented in value-oriented PMP formats. Stuart Graham, of KP Snacks, notes how the company is capitalising on this trend through its PMP portfolio.
"In 2024, we expanded our market-leading PMP range with new SKUs including: Discos Prawn Cocktail £1.25 PMP and Space Raiders Saucy BBQ £1.25 PMP. Combining the increasingly popular PMP format and two of KP Snacks' classic Heritage brands, these launches tap into flavour trends to drive shopper engagement," says Graham.
The resurrection of discontinued favourites has proven especially effective, with Graham highlighting the launch of Nik Naks Scampi 'N' Lemon in a large PMP format in 2022, “generating excitement with the return of a shopper favourite which had been absent across singles formats since 2008 and multipacks since 2019."
Most recently, KP Snacks launched a brand new NikNaks variant, Tangy 'N' Cheesy, and McCoy’s Hot ‘n’ Spicy, catering to the growing popularity of spicy flavours, both available in the £1.25 PMP format.
As economic pressures persist, manufacturers are increasingly adopting multi-tiered PMP strategies to ensure they can meet varied shopper needs across different missions and budget constraints.
Graham explains KP Snacks' approach: "KP Snacks is delivering PMP SKUs to suit all budgets and occasions. KP Snacks' large PMPs hold a 38 per cent share of the segment."
He elaborates on the strategic targeting of specific consumption occasions: "Where large format PMPs are the ideal choice for a bigger eat and hunger-fill missions, smaller format PMPs offer great value and are an excellent option for daytime snacking and 'tide me over' occasions. Space Raiders offers the UK's number one best value brand with tasty Pickled Onion, Spicy, and Beef flavours available in 40p PMPs."
The implementation of HFSS legislation has accelerated demand for healthier snacking options, with PMPs playing a critical role in communicating value in this growing segment.
"The introduction of HFSS legislation in 2022 has led to more of a focus on healthy snacking," notes Graham. "popchips PMPs are must-stocks for catering to the growing health trend as a beacon Better for You brand. Available in Barbeque and Sour Cream & Onion flavours, popchips £1.25 PMPs come in at under 100 calories per serving without compromising on great flavour."
Similarly, Graham points to the opportunity in the nuts category: "With nuts exempt from HFSS restrictions due to their natural health benefits, KP Nuts £1.25 PMPs are an excellent product to capitalise on, available in classic and tasty flavours."
Premium PMPs
While value perception continues to drive shopper decisions in the current economic climate, convenience retailers are discovering that premium price-marked packs can play a crucial role in category development. Far from being confined to budget offerings, PMPs are increasingly being deployed by premium brands to communicate clear value without compromising on quality credentials.
Leading this trend is Mutti, which has announced the launch of its best-selling 400g Polpa Finely Chopped Tomatoes in a new £1.65 price-marked pack format, designed exclusively for the independent retail channel.
The move by the UK's fastest-growing ambient tomato brand represents a significant opportunity for convenience retailers to capitalise on the growing demand for premium in-home cooking ingredients, whilst offering shoppers transparent value perception.
"Independent retailers are the heart of their communities, and we're proud to offer them this exclusive PMP format of our top-selling Polpa," says Louise Jobson, Head of Category & Shopper Marketing, Mutti UK. "With more shoppers cooking at home and seeking quality ingredients at clear value, this launch gives retailers the perfect way to meet demand and drive basket spend. Let's grow the category together – with the brand that's transforming it. Make it Mutti."
Mutti's premium positioning, underpinned by its "100 per cent Italian sun-ripened tomatoes, harvested at peak ripeness and processed using its patented cold-crushing method," has helped it build impressive growth credentials. In just five years since its UK launch, Mutti has grown from challenger brand to the number two position in the ambient tomato category, with volume and value increasing by more than 50 per cent in the latest year alone.
The brand has added £12 million in category value over 12 months, supporting shopper trade-up and category premiumisation – demonstrating that even in challenging economic conditions, there remains significant headroom for retailers to drive category value through premium offerings.
Meanwhile, in the snacking category, brands are also finding success with premium-priced PMPs that tap into consumer trends. Tayto’s Matt Smith highlights the success of their licensed offering: "The response to Marmite snacks has been fantastic. We've seen strong Marmite Crisps sales across all channels, including the £1.25 PMP pack in the convenience sector."
Building on this momentum, Tayto launched Cheese & Marmite Puffs in £1.25 PMP in April. “Cheese and Marmite on toast is a go-to for Marmite fans and so this a very familiar flavour. It will also bring new consumers into the brand as those that are less sure about Marmite are more likely to try it when paired with cheese," Smith explains.
Value-driven refreshment
PMPs have become essential for convenience retailers looking to drive soft drinks sales, with the category seeing multiple brands launch PMPs in recent months, offering strong margins while reassuring shoppers on price.
According to Simon Knight, Managing Director of Radnor Hills, "the cost-of-living crisis continues to have a major influence on how shoppers spend, and they are increasingly value-driven." The company's Radnor Splash brand, which is experiencing remarkable growth at +41 per cent year-on-year value growth, has recently introduced an 85p PMP format for its flavoured water range in wholesale and convenience.
In the functional water segment, Rubicon Spring Vits has launched still flavoured waters with added vitamins at £1.29 PMP. Lisa McKenna, Head of Brand for Rubicon, explains: "We know consumers want to make smarter soft drink choices without compromising on taste so offering a great tasting product with added health benefits will bring more consumers into the functional water category."
For the price-conscious shopper, Grace Foods has reduced its Say Aloe drinks from £1.29 to £1.15 PMPs, which Brand Manager Dorota Dziedzic says "helps to boost sales but is also beneficial for independent retailers to show their customers that convenience stores really can add value."
The energy drinks segment continues to thrive, with brands like Relentless introducing £1 PMPs across its range, including the new Guava flavour. Helen Kerr, Associate Director of Portfolio Development at Coca-Cola Europacific Partners (CCEP), notes that "the energy drinks category continues to boom and is now worth more than £2.1bn in GB and growing, with innovation key to driving this momentum."
Boost Drinks is also capitalising on this trend with their limited edition Blue Raspberry Energy (75p PMP) and Cloudy Lemonade Sport (89p PMP). Adrian Hipkiss, Head of Energy Brands at AG Barr, states: "Limited editions create a buzz around the chiller, with shoppers keen to try before it's gone."
Scotland's PWR-BRU, from the house of IRN-BRU, has introduced its Dynamo Fruit Punch flavour at £1 PMP. Kenny Nicholson, Head of IRN-BRU Brand, points out that "Scotland's energy drinks market is the nation's fastest growing category, adding the most value for retailers."
Relentless Guava: New low-sugar summer energy drink for Gen Z
Lucozade Alert has launched a collaboration with boxer Anthony Joshua on their Mango Peachade Zero Sugar variant, available in 250ml PMP (75p). Aoife McGuigan, Head of Category Expansion at Suntory Beverage & Food GB&I, says: "This limited-edition energy drink is set to create a real buzz with boxing fans and shoppers alike, to help drive a knock-out season of sales."
Meanwhile, Grace Food UK's Nurishment has launched its nutritionally enriched milk drinks at £1.39, with Dziedzic noting: "Our convenience store partners tell us how popular Nurishment is, so we wanted to give their customers a little spring in their step with this PMP boost."
Pepsi is supporting the channel with exclusive price reductions on its two-litre PMPs, dropping Pepsi MAX from £2.29 to £1.99 and Pepsi Regular from £2.59 to £2.29. With 79 per cent of two-litre carbonates in impulse coming from PMPs, this highlights the importance of value reassurance to shoppers.
7UP is expanding its range with Pink Lemonade, available in 330ml (75p PMP) and 500ml (£1.30 PMP) formats. Ben Parker, VP Sales Off-Trade at Carlsberg Britvic, says: "We want to continue growing the category with exciting innovation, offering a drink that not only delivers on taste but also visually stands out on shelves."
IRN-BRU XTRA is introducing limited edition "Legends" variants – Nessie Nectar and Unicorn Tears – with a 79p PMP on 330ml cans. Nicholson comments: "We want to grab shoppers' attention, create fun in store and get shoppers, and retailers, talking about the category."
Robinsons is backing PMPs with its new 750ml plus 33 per cent extra free packs at £1.59. "We know that families are looking for great value options, and hydration is more important to our consumers than ever before," said Parker from Carlsberg Britvic. The brand has also expanded its Ready-to-Drink range with Orange & Mango in 500ml PMP (£1.15).
Another Caribbean offering comes from Grace Foods' Tropical Rhythms range, available in 475ml bottles at £1.79 PMP. Dziedzic explains: "As we head into spring and summer, demand for our thirst-quenching, Caribbean-inspired drinks soar, so we feel a PMP at the start of March is the perfect timing."
Research shows that soft drinks are dominating when it comes to pulling in shoppers at symbols and independents, driving a massive third of all foot traffic. Retailers should ensure these PMPs are prominently displayed, particularly in chillers for impulse purchases.
Many brands are offering point-of-sale materials to maximise visibility. As Helen Kerr from CCEP advises: "We're encouraging retailers to stock up and give it some space in the chiller, while amplifying visibility with impactful in-store activation to maximise sales at launch!"
Marketing support crucial
For retailers considering which premium PMPs to stock, manufacturer marketing support should be a key consideration. Mutti's commitment to invest a further £5 million in marketing in 2025 demonstrates how seriously the brand takes building awareness and driving footfall to stores.
Similarly, Tayto's significant marketing investment in its pork snacks category – sponsoring TV coverage of PDC darts tournaments on Sky Sports with the category’s biggest ever campaign featuring the leading brands – Mr. Porky and Midland Snacks. The campaign was viewed almost 500 million times, illustrating how PMPs backed by strong consumer activation can deliver superior results.
As shopping behaviours continue to evolve across physical and digital channels, manufacturers are adapting their approach to ensure PMPs remain relevant.
Mars Wrigley's George emphasises this strategic priority: "Our category-first approach defines new routes for shoppers in the omnichannel world. Displays and in-store media are critical for us to drive awareness and conversion at the point of purchase."
With consumers increasingly researching prices online before visiting physical stores, the transparent value proposition of PMPs has become even more critical in driving footfall and conversion in the convenience channel.
Maximising PMP impact
The strategic positioning and management of PMPs can significantly influence their effectiveness as sales drivers. Rather than rotating PMPs seasonally, Matt Stanton, of DCS Group, recommends maintaining a consistent PMP offering year-round. "On average, a convenience shopper visits their local Convenience store 2.8 times per week," he notes. "A consistent range is key for shoppers as they are looking for the brands and products they know and trust."
This consistency builds shopper confidence, particularly important as "value scrutiny remains the most important attitude from convenience shoppers and value importance has increased 5 percentage points over the past two years," Stanton adds.
When it comes to positioning PMPs within the store, Stanton offers practical advice: "PMPs can be merchandised alongside non PMPs on fixture." However, he cautions that clear communication remains essential: "Retailers should always ensure that their products on fixture have clear pricing displayed (e.g. via shelf edge labels) – particularly if they are merchandising PMPs alongside non PMPs."
This clarity is crucial because "without clear pricing shown, shoppers will not have price confidence in the range and may look to switch their spend elsewhere," he explains.
While PMPs work effectively across multiple categories, some show particularly strong performance. "The top five categories purchased on PMPs in the Convenience channel in Q4 2023 were Chilled Foods, Soft Drinks, Bakery, Newspapers & Magazines and Crisps & Snacks," according to Stanton.
Lauren George, of Mars Wrigley, highlights the particular effectiveness of PMPs in driving impulse purchases: "In the confectionery category, in which convenience is key, PMPs offer quick price comparison and are often positioned in easy-to-grab locations or display unit. This pushes impulse purchases (which in turn promotes repeat purchases) and as a result, half of convenience baskets include PMPs."
Beyond sales impact, PMPs offer significant operational advantages. George notes that "PMPs can make store operations easier. The clear display of price removes any margin for uncertainty among the shopper, reducing in-store queries and creating a happier shopping experience."
For retailers managing stock transitions, Stanton recommends a disciplined approach: "As PMP changes flow through, it is recommended that retailers operate a FIFO method (first in, first out) – and sell through old packs before stocking shelves with newer packs. This method minimises any confusion by shoppers at fixture and allows retailers to sell through old stock before switching to the latest variant."
The pandemic may have initially driven the PMP trend, but the current economic climate has cemented their place in the convenience channel. And, the data consistently shows that as economic uncertainty persists, the role of PMPs in communicating clear value to shoppers remains fundamental to convenience retail success.
For retailers focused on building shopper trust while maintaining healthy margins, PMPs represent not just a pricing strategy but a comprehensive approach to value communication in challenging times. As we navigate through 2025, PMPs continue to offer one of the most effective ways for independent retailers to demonstrate value transparency and compete effectively against the multiples.
