Riders of the storm

Crisps, snacks and nuts (CSN) is a mature market with nearly 100 per cent household penetration in the UK, a £3 billion-plus sector worth, according to Kantar, at least £500m to the Convenience channel, which therefore holds a disproportionately elevated position in the snack-selling hierarchy.

The public clearly loves its snacks, and also clearly buys much of them from independent retailers. Knowing what to stock and how to merchandise this healthy-margin category is therefore vital to turnover and profit.

One of the biggest impacts of the pandemic and lockdown has been the drop in on-the-go sales, which has impacted snacks sales disproportionately – although mostly in bars and foodservice outlets – and the continued excellent sales of snacks in grocery channels, especially Convenience.

Another impact has been the switch from individual to sharing packs as customers consume at home with their families and the Big Night Out transforms itself, in the absence of out-of-home opportunities, into the Big Night In.

Kenton Burchell, trading director at Bestway Wholesale, said: “Consumers have been increasing their snacking occasions and not limiting them to certain times of day, 42 per cent reporting they consume more than three per day. Additionally, 44 per cent of consumers said they often ate snacks instead of meals at home and at work.” (IRI, May 2020)

In short, sales within the snacking category have seen a huge but unsurprising trend throughout the year as people seek comfort in staying at home.

A healthier trend

Adapting to changing lifestyles and dietary needs means the “free from” market has risen by 6.4 per cent as the demand for gluten- and dairy-free options increases.

Seeing a decline in traditional snacking occasions, snack distributor Graze has created two new products that delivers on many levels, providing a great opportunity for retailers to stock up on.

The Salt & Vinegar Crunch Punnets and Sharing Bags (launched in February) tap into the consumer trend of wholesome snack alternatives while also stepping into the “snack smarter” movement.

Packed with veg, this latest savoury treat offers over double the fibre and protein compared to crisps, whilst also containing 30 per cent less saturated fat for both individual and sharing occasions.

Graze said: “For most, flavour is a key decision maker for shoppers and as we try and entice people away from the crisps category, we need to make sure we have the traditional flavours that they know and love, which is why our Crunch range comes in Salt & Vinegar, Lightly Sea Salted, Smoky Barbeque and Sweet Chilli.”

Additionally debuting is the Graze Super Snackers range, a sweeter flavoured snack option targeted specifically for kids to enjoy with 50 per cent less sugar than the average cereal bar.

Speaking of cereal bars, this category has recently reached a value of £120.6 million from breakfast biscuits to flapjacks and is continuing to grow and expand.

Adrienne Burke, marketing manager of snacking at General Mills, said: “With many people moving to five or six smaller meals a day, new players are continually entering the snacking space.

“As our lives get busier and traditional mealtimes become more fractured, the snacking market is growing at an impressive pace.”

In fact, 66 per cent of consumers snack more than twice a day and a staggering 37 per cent of 25 to 34-year-olds say they snack rather than sit down to a full meal on a weekly basis.

HIM research also shows that of the age 18 to 24 demographic, 23 per cent are more likely to be on a food-to-go mission and 12 per cent more likely to be on a treat mission.

Snack bars like Nature Valley, Fibre One and LÄRABAR – all in the General Mills Better For You portfolio – offer on-the-go tasty bites to eat. Nature Valley Protein cereal bars meet a variety of demand spaces for retailers, for example offering consumers 20 per cent of their daily protein needs and offering gluten-free – ticking two major trend boxes.

Retailers planning on making their snack range with more nutritional, Better For You options are recommended to ensure your range includes products that meet their customers lifestyle and wellness needs.

Animal spirits

Meat-based snacks are renowned for providing a complete protein source, and a healthier alternative, and chilled meat snacks sales have increased by 8 per cent over the past months (Neilsen).

Laura Trivulzio, marketing director of Peperami & Jack Link’s, said: “As a result of the current climate, consumers are out of their usual routines and have been stuck at home for prolonged periods of time.

“We’re seeing that the public is becoming increasingly health conscious and becoming more active to keep themselves busy.

“As a result, many are now looking for snacking options with evident nutritional benefits to keep them satisfied throughout the day at home.”

The manufacturer has made massive contributions to innovation and development by improving their range that appeals from young adults to families.

Following the successful launch of Peperami & Cheese Snack Box last year, Peperami is introducing two new variants to the range.

Offering a lower calorie, protein-rich treat, biltong is an ideal product for retailers to keep stocked up on that can be enjoyed anytime throughout the year.

Keeping on trend with popular savoury flavours, Jack Link’s launched two new beef bars flavours in May 2020; Original and Sweet & Hot (RRP: £3 per pack of three bars).

Each 65-calorie bar contains less than 6g of sugar and is made with 100 per cent beef, making it a go-to option for nutritionally aware consumers.

“With nutrition and functional benefits riding high on the consumer agenda, Jack Link’s identified a gap in the market for a savoury protein bar packed with benefits that appeals to young adults.” explained Ms Trivulzio.

Meat and dairy are a natural match and Scott Snell, Vice President of Customer at pladis UK & Ireland, said all retailers should consider stocking bestsellers and priories larger formats when reviewing their snack range.

“Independent retailers should always ensure they maintain stock of the bestsellers in the category,” he explained. “Some of our top-performing bagged snacks products are Jacob’s Mini Cheddars and Jacob’s Twiglets.”

Baked with real cheese, Jacob’s Mini Cheddars remains a very popular choice for shoppers, with 35 per cent branded penetration.

With a core range consisting of Original and BBQ flavours, this is the UK’s second-fastest growing major crisps & snacks brand valued at £68.4 million brand [Nielsen].

Spice it up!

As we will continuously (and passionately) mention, the snacking world is proving to be spicier place across several brands line-ups.

Launched April 2020, Jacob’s Mini Cheddars received a Mexican makeover with new Lime & Chilli, Nacho Cheese & Jalapeno and Chipotle Chicken Wings flavour variants (RRP £1.89).

“We know spicy flavours are important within the Crisps and Snacks category – and 41 per cent of consumers between 16-44 actively seek spicy foods (Mintel Meat Flavour Trends), said Mr Snell. “This tasty take on Jacob’s Mini Cheddars will appeal to a new generation of consumers, as well as existing Mini Cheddars fans seeking something a little bit different.”

Meanwhile, other top grossing snack, Jacob’s Twiglets’ is worth £11.3 million [Nielsen] mainly due its unique flavour, shape and texture profile has led to a fierce fan base.

Repeat purchase rates of this distinctive snack is currently up +5.6 per cent [Kantar] during the coronavirus, demonstrating classic bestsellers can still bring in sales to c-stores.

“In order for independent retailers to continue to thrive and to establish themselves as destination ‘one-stop shops’, it’s vital that they remain stocked up on the core, bestselling products which generate footfall and drive sales.” advised Mr Snell.

Lovers of cheese who enjoy a slice of dairy between mealtimes will be pleased to know that home snacking occasions on all things to do with this yellow category has become a staple snack for many households.

In recent months, working from home has driven the cheese adult snacking sector worth to £37.2m, a year on year value growth of 6 per cent.

Brits also declared in a recent survey that three of the top fifteen snacks during lockdown featured cheese, with around half of cheese snacking occasions taking place at lunch [Kantar].

In response to growing consumer demand, Saputo Dairy UK has placed considerable focus on its Cathedral City Adult Snacking portfolio, which leads the way in the sector.

Block sliced and grated cheeses are believed to have boomed in sales in 2020 partially due to shoppers’ hygiene concerns, preferring freshly-prepared options in store to prepacked.

Anca Lazar, senior brand manager of Cathedral City Snacking, said: “The Cathedral City Adult Snacking range, now worth £13.4m continues to lead the market in Adult Cheese Snacking, contributing 32 per cent of sector volume and 36 per cent of revenue.

“Sliced & Grated have delivered 11 per cent and 16 per cent value growth respectively in the latest 52wks in Total Convenience, seeing accelerated demand of over 15 per cent and 34 per cent respectively in the latest 12 weeks”

Kids and things

But it’s not all just about the grown-ups, c-stores should remember that children also play a crucial part in what new snacks are deemed a hit or miss the convenience sector.

Cheese has long been a popular food item amongst kids snacks, with nearly one in ten lunchboxes containing a cheese snack [Kantar Worldpanel].

Jon Wood, commercial director of Calbee UK, said that consumers are becoming more familiar with nutritionals and are starting to understand that some products aren’t as healthy as they appear, especially kids snacks.

He said: “Snacks tend to jump from the baby aisle with few products suitable for two to nine-year-olds. There is a growing trend towards healthier snacks aided by the government guidelines regarding childhood obesity.

“We identified an opportunity for children’s snacks which have all green and amber GDAs and are lower in salt, calories and fat which is often common in the category.”

To utilise this knowledge, the Japanese food maker has obtained the licensed of kids snack products with popular cartoon characters from Trolls (Universal) Paw Patrol (Viacom) and Minions.

The Paw Patrol oven-baked pea snaps is a gluten-free snack with lower calories, fat and saturates than standard potato crisps and are vegetarian friendly.

Available in 6x15g multipacks and 19g single bags at under 90 calories, they are an ideal bridge between stores’ baby and snacking aisles.

Named after the characters in the recently released Trolls World Tour film – ‘Barb BQ Beef Rock Strings’ and ‘Poppy’s Ketchup Pop Strings oven-baked crunchy chickpea sticks are targeted to five to nine-year-olds.

New Minions Crinkle Cut Multipacks contain 14 x 18g multipacks in three child-friendly flavours; Sea Salted (6 bags), Cheese & Onion (4 bags) and Sea Salt & Vinegar (four bags).

Aimed at families, the bold and colourful packaging displays loveable characters Bob, Kevin and Stuart from the Minions and Despicable Me films.

Meat wholesaler Kerry Foods is hoping to attract more stores to offer health-conscious snacks with their new range.

Victoria Southern, marketing & category director at Kerry Foods, said: “One of the key trends we are seeing throughout the FMCG sector is consumers becoming more health conscious, in fact, 88 per cent of shoppers are trying to eat healthily (IGD ShopperVista, 2020. Health, Nutrition and Ethics).

“Looking at snacking more closely, 44 per cent of adults view snacks as a good way to boost their nutritional intake, (Mintel Consumer Snacking – May 2019) demonstrating the need for retailers to invest in healthy snack options.”

With this in mind, the new Fridge Raiders’ Chicken Bites offer what consumers are searching out for in the isles, a high in protein, healthy snack alternative.

Since launching in April 2019, the Combos range has become a hit with consumers, becoming the most frequently bought chilled snack NPD last year.

Going nuts

With an estimated 10 million lunch occasions now involving Indian food, the booming demand for spicier nut flavours shows no sign of slowing down, which of course means some great opportunities for c-store operators.

Latest research from Cofresh, the UK’s no one Indian snack brand with more than 38 per cent of the Indian Snacks & Nuts category, shows 93 per cent of UK consumers snack on crisp and crisp-style products with 86 per cent of those enjoying them at home.

To help meet consumer demand, Cofresh has just launched its top selling skus in an innovative on-the-go ‘Shots’ range format, now containing 30 per cent less fat.

The spiced mixes and pulses includes the classic Cofresh Bombay and Balti mixes in handy 25g packs, plus Salted Corn Nuts, Sriracha Corn Nuts, Spiced Chickpeas and Chilli Lime Nut Mix in 40g bags.

Debbie King, director of commercial sales and marketing at Cofresh, said: “These new Shots deliver the perfect on-the-go portion and are an innovative addition to out of home and convenience food to go choices.

“Around 66 per cent of adults snack a least once a day, and with demand for taste adventure also on the rise, we’re confident these will be a hit with consumers and attract even more shoppers to the food-to-go fixture.”

Arguably the most recognisable nut snack brand, KP Nuts is six times bigger than the nearest branded competitor worth £69.6m.

In May 2019 KP Snacks relaunched KP Nuts, unveiling a brand-new pack design with a £1.3m promotion campaign to boot, highlighting more of the protein and fibre contents, appealing to health-conscious shoppers.

An instant must-stock for any retailer, 28 per cent of people are now interested in a high protein product (Kantar, On The Go Panel, 52w to November 2018) like nuts.

Nine of the hero sharing SKU’s have a new “doy” structure – a type of foil bag which stands up unaided, delivering a more practical product for both retailer and shopper.

Retailers who buy from KP Snacks are offered 21 PMPs across the company, who continuously look to add value to retailers with both variety and promotion.

Divine packets of snacks

Store owners who regularly stock pork scratchings will notice some new products and makeovers to the Mr Porky range, produced by Tayto, for 2020.

Making mouth-watering scratchings since 1960, Mr Porky is No. 1 brand, with a 44 per cent share and is going from strength to strength, growing at 5.1 per cent YoY [IRI].

Hitting the shelves for the first time is brand new ‘Mr Porky Hand Cooked Scratchings’ (RRP £1 for 65g pack).

Hand-cooked in small batches, this Great Taste Two Star award-winning recipe had the highest purchase intent of any pack in the consumer research and promises to become a top-seller.

Previously called ‘Crackles’, the newly named ‘Original Scratching’s’ (RRP £2 for 6×6.15g packs) hopes to continue being the nation’s best-selling scratching with its unchanged signature triple-cooked recipe in eye-catching gold updated look.

Finally, Mr Porky’s award-winning Crispy Strips (RRP: £1 for 35g pack) also received a makeover to entice younger customers to try out the range while still preserving the classic feel of the brand.

Matt Smith, marketing director for Tayto Group, said that pork-based snacks are seeing a huge comeback throughout 2020.

He said: “Whilst pork scratchings are inextricably linked to the pub in consumers’ minds, less than a third buy or consume pork snacks in licensed venues with over half buying in supermarkets and over 20 per cent in convenience stores (Norstat, January 2020).

“Interestingly, consumers talk about buying their pork scratchings ‘from the Offie’ (by which they mean their local convenience store).’”

This provides retailers a golden opportunity to utilise hanging clipstrips next to BWS to maximise incremental sales.

C-stores seeking to expand their Tayto range could also stock up on The Real Pork Co., Midland Snacks and Crunch, all providing excellent high-quality taste, texture and for consumers to widen their snacking repertoire.

Crispy

In crisps, the battle of the bags has been a long but by no means decisive one, with hundreds of flavours come and gone to win a place on snack shelves.

With shoppers increasingly staying at home as the pandemic continues, eating habits, especially towards the sharing format for the Big Night In have seen sales rapidly rise.  Year-on-year crisp sales have skyrocketed 21 per cent in the past months, while nuts and popcorn sales have shot up 16 per cent and 14 per cent respectively.

Following on from the success of KP Snacks’ largest NPD to date, the producer released McCoy’s Fiery Steak flavour, available in both grab and PMP formats.

For a more premium sharing experience, Tyrrells is the perfect brand, offering a range of premium hand cooked crisps, growing +3.7 per cent YoY in 2019.

Popchips, Hula Hoops and Pom Bears are also listed as major crisp names with less than 100 calories per bag to keep stocked as a lighter option within the KP Snacks range.

“Blocking similar type products together such as ridged crisps will make it easier for your shoppers to find what they need – 45 per cent of purchases are made in under 60 seconds.”  says Matt Collins, trading director at KP Snacks.

Fine food distributor Cotswold Fayre reported their sku count has increased by 7 per cent over the past 12 months, with their crisp sales remaining strong in the first four months of 2020.

“Compostable or recycled packaging is going to be huge for this category, and the first brands to market with a sustainable packaging innovation will have a huge advantage,” foresees Paul Hargreaves, chief executive at Cotswold Fayre. “I expect to see more in-store refill stations offering consumers the option to bring their own containers to stock up on snacks.”

Healthy snacks wholesaler Epicurium also identified the trend of Brits being drawn to more savoury flavoured treats at the beginning of lockdown and quickly took action in providing comfort foods at affordable deals.

Michael Ratheram of Epicurium, said: “People aren’t going out so it’s more likely people will be buying more premium crisps and popcorn for consumption at home to replicate that cinema or out the house experience, while they’re watching Netflix etc.”

This prompted Epicurium to also release sharing formats of both Proper Chips and Hippeas, along with NPD in new flavoured Peanuts from Snaffling Pig and The Curators Pork Puffs recently.

PespsiCo and Walkers Crisps have also seen a trend of not just shoppers wanting larger packs, but with flavour still a key factor when looking for a savoury snack.

With the company generating more than $67 billion in net revenue in 2019, along with the combination of these trends, this led to launch the of the Taste Icons in larger pack sizes.

Available in Impulse and Wholesale channels, the limited-edition flavours are inspired from signature dishes from popular chain restaurants including Gourmet Burger Kitchen, Las Iguanas, Nando’s, PizzaExpress and YO!

The launch proved so successful in March, Walkers has now expanded the range to £1PMPs, while also giving shoppers a free two-for-one meal voucher for the partner restaurant flavour.

Fernando Kahane, marketing director of Walkers snacks at PepsiCo, said: “Restrictions on Covid-19 are gradually being lifted and restaurants are being given permission to open under social distancing rules.

“It is our hope that with this promotion, it will not only boost snacking sales, but also drive much needed footfall back into the hard-hit hospitality sector.”

At Envis Foods, this summer will see two new flavours launch within the Crunchips WOW range; Terrifying Jalapeno & Cream Cheese and Incredible Paprika and Sour Cream (RRP: £1).

Like the others, this Portsmouth-based snacks supplier is also hoping for sales to continue soaring as consumers continue working and staying at home more.

The company reported June sales being almost doubled compared to last year and the snacking sector’s annual year on year growth has jumped by over 30 per cent over the last few years.

“We have continued to see massive growth in sharing bags, particularly those with £1 RSP across the country although having said that there is also a growing trend within London for even larger bags,” said an Envis Foods spokesperson. “We are also noticing that more and more stores are having a focused £1 area as opposed to simply a crisps and snacks area and we have found that this a real winner for extra sales.”

Also playing on the £1 crisp deal as the global pandemic continues, PepsiCo launched their largest ever summer campaign; YAYcation.

As a result of single-serve products sales till struggling to revive, the food franchise second August promotion focuses on the larger £1 PMP bags that are in demand.

“We believe PMPs are an important tool to help retailers build trust with their consumers, it encourages additional purchases and cash profile,” says Bestway’s Burchell.

Calibee’s Seabrook Crisps are continuing as the category exclusive partner with Alton Towers Resort in 2020 for the third year running giving shoppers two for one entry that can be redeemed until May 2021.

Continuing to be popular a product the gluten free, vegetarian friendly crisp brand are a great way for retailers to drive sales, with offerings including a £1 PMP 6 x 25g pack.

Worth up to £58 per pack, the on-pack promotion is running across Crinkle Cut Multipacks, 80g PMPs and the core flavours of 31.8g bags, – a great insensitive for store owners to build a consumer relationship with youngsters.

Doritos occupies the number 1,2 & 3 spots for the bestselling sharing tortilla SKU in Indies & Symbols.

Matt Goddard, wholesale trading director at PepsiCo, said: “Our offering of crisps and snacks play an important role in people’s food cupboards, and whilst times are tough, the last thing consumers want is a limited range of food to choose from.

“Shoppers are looking for more multi-pack and sharing bag options from smaller stores and, for that reason, our £1PMP sharing formats will be a big focus in our YAYcation campaign.”

For those wanting to add some nostalgia to their crisp section Walkers’ family favourite brand Wotsits, reintroduced two flavours to its line-up – Flamin’ Hot and Sizzling Steak.

Following a national plea to bring them back, the packets will sit alongside the famous cheese flavour at £1 RRP price-marked-pack for grab packs, £2 for sharing packs and (RRP: £1.25) six bag multipack formats to suit different occasions.

Fernando Kahane comments: “Shoppers are expanding their repertoire within the savoury snacks category and actively seeking out flavours that pack a punch.

“Meat and spicy flavours, in particular, have experienced double-digit growth over the past year, so it’s no surprise that consumers have been asking for the return of WotsitsFlamin’ Hot and Wotsits Sizzling Steak.”

Scottish and Welsh retailers this summer will see the introduction of natural nacho chip brand Cornitos arrive following a successful debut in London, followed by The Midlands.

The 70g sharing pack, price-marked at £1, is available in four flavours, from “mild to wild” – Lime and Mint, Barbeque, Thai Sweet Chilli, and Peri Peri.

Gluten free, vegan, non-GMO, cholesterol free, with no artificial colours, flavours, or preservatives – Cornitos is expected to continue its rising stardom as a global healthy crisp category option.

Fraser Heenan, chief executive and co-founder of Glasgow-based Blaze XK, the company that brought Cornitos to the UK from India, said: “Cornitos has been extremely well received by trade partners and customers alike with over 100,000 packs already in convenience channels in the two months since we launched.

“We’ve very much tailored the flavours to the local market and will launch a further exciting flavour before the end of the year.”

At Doritos, the tortilla brand unveiled their biggest ever product launch in April with their first product to hit the cannister snacks segment with the launch of Doritos STAX.

While retaining its distinctive shape, Doritos STAX have been optimised to reflect the unique packaging, aiming to attract a larger generation-z target market.

Clafoutie Sintive, marketing director on Sharing Snacks, comments: “This marks a landmark diversification for the Doritos brand. Historically, cannister snacks is a segment that is shopped by the over 45s, but we want to extend that by targeting a younger audience.”

So like the rest of the world, snacks are seeing a big change based on consumers changing outlook on their personal health.

C-stores will not pass up the chance of providing people on their favourite treats (healthy or unhealthy), but how and what shoppers and retailers view as a snack is evolving for what can only be seen as for the better.