Snacks & Confectionery
Snacking is by its nature impulsive, so it’s no surprise that the sale of vended food options are in demand in a number of locations and settings. As part of a healthy balanced diet, they represent a quick and easy solution for consumers on the go. More often than not, a vending machine spend is neither budgeted, nor accounted for, so even when finances are strained purchases like these will always avoid the crunch.
Let’s give snacks a break T
he latest report from leading consumer analyst Key Note reveals that over the 5-year period spanning 2006 to 2010, sales of confectionery increased by approximately 14% to £5.03bn. Chocolate remains by far the largest sector of the confectionery
market, with sales rising by 17% over the 5 years, compared to the sugar confectionery market which grew by just 6.3% over the same period. This was principally down to the continued popularity of chocolate products and the rising retail price of confectionery, said the report. The report concludes that, “despite the recent economic downturn,
the confectionery market has maintained a strong position. The industry reacted quickly to the recession by introducing a number of value and budget items, and increasing the number of promotions and discounts in order to attract cash-strapped consumers. As a result, consumer demand has remained high and the confectionery market exited recession relatively unscathed.” This is all great news for the vending industry, which has profited significantly from this market segment in the past. To drive confectionery sales, operators should look to offer the
best selling brands, presented in glass fronted machines that function quickly and reliably, creating a more retail led customer experience. A focus on product development, machine ease of use and promotional activity is a must. Kraft Foods has made some exciting developments within chocolate
over the last year which has contributed to strong sales within the category, says Trade Communications Manager Susan Nash. “Some NPD highlights include the introduction of Guzzle Puzzle and Choccos. The chocolate singles category is also a popular choice with shoppers because products can be consumed as an everyday treat and Cadbury SKUs are performing very well. The core Wispa single has been a great success for Cadbury since its relaunch and it is now worth £52.6m. Twirl is the number one selling chocolate countline bar and the brand has a value of £69.2m and growth of +30.7%. Crunchie is also performing well for Cadbury with a value of £49.7m.” Susan advises that, “Double facing key products such as Twirl and
Wispa enhances visibility and attracts the attention of shoppers to the vending machine using brands that they instantly recognise.”
Burton’s Biscuit Company, the
UK’s second largest sweet biscuit supplier, offers high-profile brands which will help vending operators to maximise profits and tap in to out-of-home snacking occasions. The brands on offer have
significant levels of consumer awareness and the vending offering includes 40g Maryland cookies, 40g Cadbury Fingers and 125g pouches of Maryland, Fingers and Dodgers. Maryland and Dodgers are VAT free, so operators can benefit from maximum POR. Biscuits have a strong association with drinks (especially hot
drinks), so consumers are likely to link purchase when buying a tea, coffee or hot chocolate. Comparing the UK to Europe, a 2010 an article in The Guardian
asked what the “very British habit” of eating crisps was doing to our health. “When you consider we get through an estimated 6bn packets of crisps and 4.4bn bags of savoury snacks a year – around 150 packets a person – you do wonder what our love affair with crisps is doing to us. Looked at by tonnage, we consume more crisps, crackers and nuts than any other European country,” it said. Contributing to the article, food writer Matthew Fort, went some
way to explaining the nation’s obsession: “Crisps are our olives. The continentals once had plain olive oil. Now there’s extra virgin, single estate, first cold pressed, extra virgin single varietal first cold pressed – you name it. We used to have plain ready salted; now there’s any number of flavours, as well as traditionally cut, individually hand fried and the rest.” From Chargrilled Steak to Bang
Bang Spicy Thai; Cheese & Onion to Salt & Vinegar Rough Cuts and much, much more - Tayto is leading the way in transforming the humble potato chip into a taste explosion that consumers can’t do without. While the company has brought back some of the old favourites – Golden Wonder Ringos and BBQ Saucers to name just two, it spices it all up with new and exciting flavours in other categories. There is also the healthy option in the form of Real D’Lites, which are vat free and just as pleasant on the palate as any of the higher fat alternatives.
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