Doritos Dinamita's recent in-store activation campaign has been a huge success for participating convenience stores as the campaign created quite a buzz among shoppers leading to rise in impulse sales, a leading independent retailer has revealed.
PepsiCo recently launched its latest NPD Doritos Dinamita exclusively into the convenience stores. The launch was accompanied by massive in-store activation in convenience stores across the country.
Bobby Singh from Pontefract, who also jazzed up his store BB Superstore earlier this week for the activation, told Asian Trader that the activation turned out to be a huge success.
He said, "The activation has been a huge success, thanks to the incredible Point of Sale displays, eye-catching merchandise, and engaging in-store experience that truly captured the attention of customers.
"The Spin-to-Win game was a real hit, adding an element of fun and excitement for customers."
Not only did his customers enjoy the thrill of playing, but many were also lucky enough to win exclusive merchandise, further boosting engagement, stated Singh.
"Customers were already making purchases while we were setting up, demonstrating the immediate impact of the vibrant POS presence," he said,
Expressing gratitude towards PepsiCo UK and Walkers Crisps UK for their "outstanding support during the Doritos Dinamita activation", Singh also applauded Cirkle for "bringing everything together and making it all happen"
"The passion from PepsiCo, Walkers Crisps, Cirkle, and retailers drove this campaign to success, with everyone’s dedication making a huge impact on the activation’s results.
"This fantastic execution led to excellent sales and remarkable incremental growth. The strong social media presence also amplified the campaign’s reach, keeping the buzz going well beyond the store," Singh shared with Asian Trader.
Calling it a "game-changing launch", One Stop retailer Priyesh Vekaria from Manchester stated on social media how the new launch is already making waves, "tapping into the growing demand for spicy flavours among Gen Z consumers".
Vekaria pointed out that the activation's big-ticket promotions, high-impact in-store theatre that disrupts the consumer shopping journey and marketing that keeps consumers engaged beyond the shelf are what set this activation apart.
Elsewhere in Northamptonshire village of Kislingbury, retailer Vidur Pandya is also basking in his "first in-store activation".
He stated on social media that he could not have pulled this off without great product and amazing POS materials that made Doritos Dinamita "stands out on the shelves".
As winter's grip finally loosens and the UK eagerly anticipates the arrival of spring, the nation's enduring love affair with beer, lager, and cider is set to flourish once again. Despite economic pressures and rising costs, these traditional favourites remain firmly entrenched as Britain's alcoholic beverages of choice, accounting for an impressive 65 per cent of total alcohol consumed nationwide.
The UK alcoholic beer market is projected to generate £8.8 billion in off-trade revenue in 2025, with steady growth anticipated at 0.62 per cent annually through 2029, according to Statista figures. With the average Briton expected to consume nearly 32 litres of beer at home this year, the opportunity for convenience retailers remains substantial – particularly as consumers continue their migration from on-trade to off-trade purchasing in search of better value.
However, the landscape is evolving rapidly, with several key trends and challenges reshaping the category. The "less but better" phenomenon continues to gain momentum as health-conscious consumers seek premium experiences over quantity. Last year's lighter summer and session brews made significant market inroads, while interest in premium continental lagers grows alongside innovative cider variations, including crispy apple styles and the welcome resurgence of perry.
For convenience retailers, staying abreast of these shifts is crucial, but equally important is navigating the regulatory and cost challenges now impacting the sector. February saw the implementation of the chancellor's 3.65 per cent RPI inflation-linked duty increase, adding approximately 2p to a 500ml bottle of 4 per cent ABV non-draught beer and 1p to a similar cider product. Meanwhile, the looming Extended Producer Responsibility (EPR) packaging levy threatens to introduce even more significant price hikes, particularly for glass-packaged products.
Looming Extended Producer Responsibility packaging levy threatens to introduce even more significant price hikes, particularly for glass-packaged products
The EPR scheme, which shifts recycling costs from councils to producers, could add as much as 5p per glass bottle for brewers – potentially transforming packaging strategies across the industry. British Beer & Pub Association chief executive Emma McClarkin has warned that some producers may be forced to “leave the glass bottle market” entirely.
“Given the incredibly narrow margins UK brewers operate to, as they make an average of 2p per bottle of beer, this means they will be forced to pass on extra painful costs to the consumer if they want to carry on making their product," McClarkin added.
Against this backdrop of change, traditional cider faces its own existential challenge. With nine out of ten traditional orchards lost since World War II due to neglect, development, and agricultural shifts, cider makers are urgently calling for protection of the ‘native wine of England’.
“The writing is on the wall unless something is done. You only have to drive along the roads around here to see the decline,” David Nash, founder of Redvers Cider & Perry, which makes the drink in Herefordshire, recently said. “You see them being felled or dying off because no one’s replacing them. There’s no commercial value.”
The growth of ‘fine cider’ – premium products made with 100 per cent apple juice and commanding prices up to £38 per bottle – offers a potential pathway to sustainability for traditional producers. However, industry figures acknowledge that without proactive industry reform or government intervention, the future remains uncertain.
For convenience retailers looking to maximise category performance in this dynamic environment, the key lies in strategic ranging, competitive pricing, and an understanding of the evolving consumer preference for premium, lighter, and more distinctive offerings – all while preparing for the potential impact of regulatory and cost pressures on their supplier base.
Shifting consumption
The UK beer category remains a cornerstone of convenience retail, worth a substantial £5.27bn across the total market [NIQ]. Within Grocery, the beer category is worth £3.96bn and in Impulse, including convenience and independent stores, this figure stands at £1.3bn.
The convenience channel is showing signs of strength in beer sales, with the market experiencing steady growth at 1.7 per cent in the Total Convenience Beer and Lager category compared to just 0.2 per cent for Major Multiples, according to North Star Polaris data.
James Wright, Chief Executive at Wrexham Lager Beer Co, attributes this to changing consumer behaviours and ongoing financial pressures.
“As major grocers have dominated the market in the past with bigger bulk-buy deals, consumer habits are changing with people preferring to shop little and often because of the cost-of-living crisis,” he explains.
“Culture is also changing the narrative, as people are opting to stay home more on weekends instead of going out, leading to increased impulse buys and creating more opportunity to be purchased from local convenience stores.”
Challenger brands have added a huge £15.8m to the beer category, creating opportunities for premium and heritage brands like Wrexham Lager
This represents a significant opportunity for convenience retailers to capitalise on the growing share of beer sales moving through their channel, particularly if they can differentiate their offering from the multiples.
Wright also points to significant market shifts, noting that the top six lager brands in the UK have collectively declined by £62 million, whilst challenger brands have added a huge £15.8m to the category [North Star Polaris].
This creates opportunities for premium and heritage brands like Wrexham Lager, particularly as consumers – especially younger demographics – seek authentic brand stories.
“With Gen Z having a huge influence on today's purchasing habits, there is even more interest in heritage and an impactful backstory as consumers look to connect with brands more deeply on an emotional level,” Wright explains.
Quality cues are becoming increasingly important differentiators in the premium lager segment. “This is where the big brewers potentially fall down with their sped-up conditioning rather than letting the product naturally mature for a premium taste,” Wright observes, suggesting that retailers should “look into the production processes of the brands they stock if customers are buying on quality and taste.”
He urges retailers to increase the number of premium brands, as against budget brands, to capitalise on the trend to quality.
“Brand design and stand out on shelf – what’s going to capture the eye and does the packaging offer enough of an easy to grasp brand story that will increase consideration to purchase,” he says.
Premium growth, innovation
While the overall category value has stabilised year-on-year, volumes are declining by 2.1 per cent. Against this backdrop, Heineken UK has bucked the trend, growing its market share within Grocery by 0.6 percentage points to reach 17.6 per cent by the end of 2024. The company delivered an impressive £39m worth of growth to the beer category last year, representing 5 per cent value growth and 3.8 per cent volume growth – making it the largest contributor to category growth among all brewers.
“When looking specifically at our beer brands our growth is led by Birra Moretti, Heineken and Cruzcampo. Pleasingly, this is through a mix of both core growth on our brands as well as innovation sales,” Alexander Wilson, Category & Commercial Strategy Director at Heineken UK, explains.
New product development has been a key driver of this success. Heineken UK launched three of the best-performing new product innovations in 2024, collectively accounting for 46 per cent of all beer NPD value. These included Birra Moretti Sale di Mare (worth £11.3m), Foster's Proper Shandy (worth £7.2m) and Cruzcampo (worth £50m).
Birra Moretti grew in value by 2.1 per cent last year
Wilson underscores beer's strategic importance to overall grocery sales: “Beers, Wines & Spirits is the biggest contributor to retailers' total sales, and beer commands the greatest volume sales within the category. This is particularly important considering that volume sales in beer are critical for retailers in helping to increase footfall and penetration at key moments in the year.”
The Heineken UK portfolio shows varying performance across its key brands. Both Heineken Original and Heineken 0.0 – the biggest non-alcohol lager in 2024 – remain in growth, demonstrating the appetite for premium lager alongside alcohol-free options from bestselling brands.
Birra Moretti, the world premium lager particularly suited to trading up occasions during summer and the festive period, grew in value by 2.1 per cent last year. This growth was boosted by the February 2024 launch of Birra Moretti Sale di Mare, which now commands a 0.3 per cent share of the beer category and targets drinkers seeking more flavourful and interesting taste profiles.
Cruzcampo has enjoyed a highly successful launch, generating £88m in retail sales across the market and claiming a 1.8 per cent share of beer sales in the Impulse channel. Wilson notes that the brand “taps into shoppers' growing demand for more premium continental lagers that still offer value for money.”
While Foster's maintains a 4.6 per cent market share in the lager category, the newly launched Foster's Proper Shandy claimed a 0.2 per cent market share despite only launching in February 2024.
World beer, nostalgia
Wilson identifies several key trends that convenience retailers should be aware of to maximise opportunities in the beer category.
“As tastes change and evolve, we have noticed more customers, across all demographics, are keen to explore new styles of beer, including a growing interest in world lagers,” he says, citing Birra Moretti's new Sale di Mare variant and Cruzcampo as examples.
He adds: “Its launch marks the first innovation within classic lager for decades, reigniting the category and encouraging exploration from consumers.”
John Price, Head of Marketing at Kingfisher Drinks, says premiumisation remains a dominant trend in the beer category despite ongoing economic pressures as consumers are increasingly seeking out authentic, high-quality options from around the world.
“The beer landscape has been on a continual journey of premiumisation for a while now, where we've seen consumers increasingly willing to spend more to treat themselves to better quality and authentic beer options, which in turn drives increased value in-store,” explains Price.
“Even the challenging financial times we've been in and are still going through, don't seem to have dissuaded consumers that this is the path they want to go on, as many still treat premium alcohol as an affordable luxury which they feel is worth paying for.”
There's considerable current interest in Japanese beers like Sapporo
This shift towards premium options has been accompanied by growing consumer interest in world beers, with shoppers looking beyond traditional favourites. While Mediterranean options remain popular, Price suggests retailers should expand their horizons.
“We also know consumers can often get tired of seeing the same lager brands, so are enjoying discovering premium world lagers from all sorts of different places,” he notes.
“Whilst there'll always be demand for Mediterranean beers which of course remain popular, I'd encourage retailers and wholesalers to think beyond that and look further afield. There's certainly considerable current interest in Japanese beers like Sapporo, but I'd also like to mention Indian beers like our very own Kingfisher, which has a crisp and easy-drinking taste that consumers love.”
The cost-of-living crisis appears to be driving another key opportunity for convenience retailers: increased at-home consumption. Price points out that financial constraints may lead to fewer pub visits and more drinking occasions at home, creating a prime opportunity for retailers to capitalise on.
Heineken UK is watching other emerging trends for 2025, including the growth of fruit beers over the past year and the continued expansion of the Stout segment.
Cruzcampo has enjoyed a highly successful launch, generating £88m in retail sales
Wilson believes key trends – including moderation, world beers, and premium offerings – will continue into 2025 and beyond. He observes ongoing competition among retailers on heavily advertised brands, alongside consumer demand for innovation and excitement.
"People enjoy discovering drinks with depth and 2025 will bring huge opportunity for retailers to boost spend by providing shoppers with the opportunity to discover new tastes," he notes.
He suggests retailers create dedicated store environments that encourage exploration, such as chilled beer caves or sampling stations.
“By stocking more premium options and sharing formats, retailers can make their beer range an in-store destination for shoppers who are looking to celebrate in 2025,” he says.
The rise of moderation
Perhaps the most significant trend shaping the category is the growing focus on moderation.
Following the duty changes implemented in August 2023, and aligned with ongoing consumer demand for moderation, sales are growing for beers with an ABV of 3.4 per cent or less. This is happening as brewers adjust the ABV of core products and invest in new innovations like Foster's Proper Shandy (ABV three per cent).
“We believe that this trend for moderation is here to stay, and brands who focus on this area in 2025 will be well-placed to help retailers cater to those consumers who are looking to moderate,” Wilson predicts, encouraging retailers to create excitement around moderation, wellness, and low and no options by stocking new, lower-ABV alternatives to premium favourites such as Birra Moretti Zero, Heineken 0.0 and Old Mout Alcohol Free.
Caitlin Brown, Off-Trade Category Development Executive, BrewDog PLC, highlights that “43 per cent are reducing the alcohol content of the drinks they consume, and this does not show signs of slowing.”
This shift is particularly pronounced among younger consumers, with “almost 40 per cent of 18-25s not drinking alcohol at all vs 22 per cent in 2019.”
This has driven substantial growth in alcohol-free beer, with alcohol-free sales over the latest 52 weeks showing a growth of 28 per cent value and 21 per cent volume, now worth 3.2 per cent of total beer [Circana].
BrewDog continues to evolve and improve its AF range
The trend is even more pronounced in convenience, with Brown noting that “this subsegment of beer is currently outperforming total beer in impulse.”
“Well-known, established brands such as BrewDog, which holds two of the top 10 sellers within alcohol-free beer and continues to evolve and improve its AF range, as well as product quality, will be key to this success,” she adds.
Kingfisher has responded to this trend with Kingfisher Zero, which Price says, “embodies the quality and flavour of Kingfisher Premium, but without alcohol and, most importantly, without compromising on taste.”
Recent research from the Portman Group in partnership with YouGov revealed that nearly half (44 per cent) of 18-24-year-olds surveyed consider themselves either occasional or regular drinkers of alcohol alternatives, up from 31 per cent in 2022.
“No and low alcohol beers are continuing to grow in popularity so retailers should grasp this opportunity,” Price advises. “It's also worth pointing out that those 18-24-year-old consumers who are purchasing more no and low now, are more likely to convert to lifelong fans of the brand they choose.”
BrewDog has responded to the moderation trend with several new products designed to meet the demand for lower-ABV options.
“With more shoppers looking to moderate their alcohol-consumption sessionable products has been a huge focus for BrewDog over the last 12 months,” says Brown, highlighting the launch of Wingman (ABV 4.3 per cent) and Cold Beer (ABV 3.4 per cent).
Wingman has been particularly successful, being “the fastest growing craft beer brand,” according to Brown, and helping to recruit new consumers into the craft beer category – “61 per cent of shoppers going on to by craft beer for the first time, following the first purchase of Wingman.”
Cold Beer, meanwhile, has delivered over £1.4m sales since launch after its nationwide rollout in September.
Cold Beer, ABV 3.4 per cent, has delivered over £1.4m sales since launch after its nationwide rollout in September.
Brown emphasises the importance of not compromising on taste when producing lower-ABV products: “Often by reducing the alcohol content, this means taste is compromised, but we believe in providing value for money. It is therefore the responsibility of suppliers to offer customers and consumers great quality products.”
SHS Drinks has in December announced the acquisition of Shandy Shack, a pioneering brand in the mid-strength ABV beer space.
SHS Drinks said the new partnership will step-change Shandy Shack’s already strong current growth, helping it to better reach the 40 per cent of adults seeking to moderate their alcohol consumption with balanced, enjoyable options.
Prior to the acquisition, SHS Drinks and Shandy Shack collaborated to create the popular Raspberry Lager using bottlegreen’s Raspberry Cordial. The product launched in June last year and featured integrated bottlegreen branding on Shandy Shack’s packaging, along with joint promotional efforts across social media.
“The mid-strength ABV market is seeing rapid growth as consumers seek options for low-tempo, relaxed socializing,” Andy Morris-Jinks, managing director of SHS Drinks, said.
“Shandy Shack’s innovative and award-winning product range aligns perfectly with our vision for broadening our consumer base and tapping into emerging market trends."
Looking ahead, Brown anticipates further evolution in the alcohol-free segment, predicting “the introduction of more specific beer styles – including stout and craft, as well as just lager.” She also suggests that “as shoppers become ever more focused on health and wellbeing ... we could start to see the role of functional AF products, with added benefits.”
Craft beer brands
Craft beer continues to be a strong performer within convenience, with IPA remaining the dominant style.
“From a craft beer perspective IPA is the most popular and best-performing style of beer all year round in Convenience, worth 65 per cent of the craft beer market,” says Brown, of BrewDog.
BrewDog itself commands a substantial 50 per cent of the craft beer category, with its flagship Punk IPA serving as a crucial entry point for many consumers.
“The heartland of craft is Punk IPA, which acts as a signpost for the category, so something that shoppers will look for when browsing the chiller,” says Brown. With Punk turning 18 in 2025, the brand will be celebrating this milestone with high-profile activity, making it an essential stock item for convenience retailers.
BrewDog's top two products are Punk IPA and Hazy Jane New England IPA four-can multipacks
For stores looking to develop their craft beer range, Brown recommends starting with BrewDog's top two products: “Punk IPA and Hazy Jane New England IPA four-can multipacks, which also continues to see a lot of love from shoppers. Punk IPA and Hazy Jane alone are worth 37 per cent of the category in Impulse.”
Multipack formats play a crucial role in category recruitment, with Brown noting that “42 per cent of first-time purchases come from multi-packs, with larger mixed formats significantly over indexing with first time buyers.”
The BrewDog 330ml 8 can Mixed Packs are highlighted as particularly effective for driving trial, with encouraging repeat purchase rates – “42 per cent of craft beer shoppers repeat their category purchase, following their first trial.”
Popular formats
Heineken UK’s Wilson emphasises the importance of offering a variety of pack sizes to meet different consumer needs. “The beauty of the beer category is the range of pack sizes on offer – from single bottles to small multi-packs, mid-size multi-packs and then large packs of up to 18 beers in one pack. This offers value and convenience at different price points for shoppers.”
All pack formats experience significant sales increases during peak seasons, including summer sporting events, festivals, and the Christmas/New Year period. Wilson recommends that stores stock a variety of single bottles and multipacks to cater for all occasions.
“In beer, we are seeing growth in smaller and medium pack sizes, especially of cans, being driven by people making smaller, but more frequent, visits to stores,” he notes. This trend is particularly relevant for stores in urban locations where consumers may be walking rather than driving.
In terms of ranging, Wrexham lager’s Wright notes that “growth in lager is coming from the premium brands, where the majority of volume sits in single bottles (330ml) and four-packs of 330ml bottles or 440ml cans,” with four-packs accounting for 55 per cent of sales.
Price-point remains critical, with Wright advising that “£5-£6 per four-pack for a premium lager will return a better rate of sale, than anything over £6. People are still buying with their pocket, not just their taste buds.”
To maximise sales potential, Price, of Kingfisher Drinks, emphasises the importance of a well-rounded offering: “When it comes to lager, beer and cider I think its important retailers stock a variety of standard and premium brands in a range of formats to ensure they don't miss out on any potential sales opportunities.”
He recommends a balanced mix of chilled products in various formats, from single serves to larger packs that appeal to the 'big night in' occasion. Equally important is stocking options at different price points, from standard lagers through to super-premium offerings like Japanese beer Sapporo, which Price describes as “the product of precision craftsmanship, taking the very best traditional approaches and adding an innovative twist.”
The company has also recently expanded its portfolio with Kingfisher Ultra, a super-premium five per cent ABV beer now available to UK retailers. “Ultra really hits the spot with its light crisp taste and smooth finish and is the perfect addition to our growing Kingfisher portfolio,” Price says.
“A year ago, we introduced Kingfisher Zero into the no and low category, so along with the original Kingfisher Premium, Kingfisher Ultra will complete our offer which now suits a wide range of consumer tastes.”
Tapping into cider
Cider continues to carve out an increasingly valuable position for convenience retailers. With the category worth an impressive £1.2bn nationally – £819m in grocery and £372m in convenience [NielsenIQ] – retailers have substantial opportunities to capitalise on this thriving segment in 2025.
The cider market is showing remarkable resilience and growth, particularly within the convenience channel. According to Darryl Hinksman, Head of Business Development at Westons, “Beer and cider's pivotal role in the UK convenience channel cannot be overstated, with half of all cider sales taking place in these stores. In fact, the cider category alone is now worth an impressive £575m in convenience [Circana], up 2.1 per cent over the last year, outperforming the total cider market growth of 0.1 per cent.”
This growth trajectory reflects the changing consumer landscape, with cider increasingly being viewed as a more natural and healthier alternative to traditional alcoholic beverages. Heineken UK’s Wilson notes that the company owns a 27.8 per cent share of the total cider category, positioning it as a significant player in the market.
The cider market is showing remarkable resilience and growth, particularly within the convenience channel
Natalie Marshall, trade marketing manager at Aston Manor Cider, suggests that growth has been fuelled by “increased availability of cider in bars, restaurants and retail stores,” making it “easier for consumers to access and purchase these products.”
As we move into the warmer months of 2025, the market is expected to benefit from packaging innovations, particularly single cans and single-serve bottles, driving further convenience for consumers.
Premiumisation, ‘less but better’
The crafted cider category has experienced remarkable growth, with Hinksman reporting a “14.6 per cent YOY increase and now valued at £116m in convenience thanks to the 'drink less but better' trend.”
This represents a significant opportunity for retailers, particularly as Hinksman highlights that “while nearly 100 per cent of multiple retailers stock crafted cider, its presence in the convenience sector remains limited, leading to a staggering £11.5m in missed sales for independents.”
Wilson from Heineken UK reinforces this trend, noting that “apple cider is growing ahead of flavoured cider, with premium options also doing exceptionally well, even in times of economic hardship, when people don't have as much disposable income to hand. This should signal to retailers that despite customers cutting corners in other categories, cider is potentially where they are willing to trade up.”
The rise of premium offerings doesn't necessarily mean consumers are looking for the most expensive options. Instead, as Hinksman explains, “As consumers navigate tighter budgets, their purchasing decisions increasingly favour products that balance exceptional quality with strong value. This doesn't necessarily mean reaching for the cheapest option but prioritising their spend on those products that are really worth it.”
Seasonal patterns, flavours
Seasonality plays a crucial role in the cider market. Marshall points out that “66 per cent of cider drinkers mainly drinking cider in the warmer months,” making it essential for retailers to “get ready for the warmer weather by ensuring a regular stock of chilled cider.”
As the temperature rises, consumer preferences shift towards convenience and on-the-go consumption. Marshall advises retailers to “meet the increased demand for convenience and drinking on the go by stocking canned cider in chillers where possible.” This aligns with Hinksman's observation that “with summer on the horizon and consumers gearing up for BBQs, picnics, and festivals, retailers have a prime opportunity to maximise revenue.”
Inch's Cider is the apple cider brand that grew the most share in the off trade in 2023
While innovation in the category continues to be driven largely by flavoured ciders, traditional apple ciders are experiencing a resurgence. Wilson notes that “Inch's Cider is the apple cider brand that grew the most share in the off trade in 2023,” showing that “shoppers are looking for quality as well as accessible pricing options.”
Hinksman supports this view, stating that “mainstream apple ciders remain popular, but the surge in crafted apple ciders - led by Henry Westons Vintage - has cemented them as must-stock items for retailers.”
He also highlights an emerging opportunity in “pear cider, a sub-category that currently represents just three per cent of the market with space to grow.”
Affordability and value
The cost-of-living crisis has influenced consumer behaviour significantly. Marshall reveals that “shopper behaviours are largely influenced by the cost-of-living crisis with shoppers trading down from spirits into cider.”
This creates an opportunity for retailers to stock stronger ciders as alternatives to spirits, with Marshall noting that “Knights Cider is currently the no.1 alcohol brand driving growth into the convenience channel.”
Knights Cider drives growth into the convenience channel
For budget-conscious consumers, value plays a crucial role. Marshall suggests stocking “a variety of value products which also offer a great taste, such as Crumpton Oaks, a much-loved iconic brand that offers customers a traditional cider taste, due to its bittersweet apple blend.”
Brand performance
Strongbow maintains its position as “the nation's favourite cider brand,” according to Wilson. The brand's latest innovation, Strongbow Strawberry, launched in 2024, has already captured 0.5 per cent of the cider market despite limited availability.
Wilson also highlights the performance of premium flavoured cider Old Mout, which saw “impressive growth of 38.4 per cent in the impulse channel last summer, driven by consumers enjoying summer socialising occasions.” Meanwhile, Inch's Cider has demonstrated recent growth of 1.3 per cent in share, with an overall 4.6 per cent value share.
Henry Westons Vintage continues to dominate, selling “more than one bottle every 0.75 seconds across the UK” and standing “an impressive £20.4m ahead of the second-place product in the channel,” according to Hinksman.
Henry Westons Vintage sells more than one bottle every 0.75 seconds across the UK
Stowford Press is also performing strongly, with Hinksman reporting that Stowford Press cans are “growing at 50.1 per cent YOY in convenience,” while the Stowford Press Apple Cider 10 Pack is experiencing “13.8 per cent growth YOY.”
As Westons celebrates its 145th anniversary in 2025, Hinksman teases “a new permanent addition to the bestselling Henry Westons range that pays tribute to the generations of brand heritage.”
Knights Cider is highlighted as “the fastest growing cider brand in the UK,” with Marshall reporting “a 54 per cent increase in shopper numbers year on year.” The brand's success led to the launch of Knights Vintage Cider in 500ml glass bottles in 2024, offering “a great tasting cider without breaking the bank” at an ABV of 8.4 per cent.
Marshall also points to Frosty Jack's as one of the UK's favourite cider brands, which “sold 1.1 million single 500ml cans last year,” making it a valuable offering for retailers targeting areas with high student populations.
Frosty Jack's sold 1.1 million single 500ml cans last year
Crumpton Oaks is identified as “the number one value cider brand in the impulse channel at £4.99 RRP for four-pint cans,” making it “a must have option for retailers” in the current economic climate.
Kopparberg, a partner of Budweiser Brewing Group, has recently launched its latest product, Crisp Apple, expanding its listing with the four per cent ABV beverage that taps into the evolving tastes of cider drinkers.
Kopparberg Crisp Apple offers drinkers the much-loved taste of a classic apple cider, balanced with a slightly sweeter profile that the brand is famous for.
Whilst apple cider is seeing a resurgence, particularly amongst younger drinkers, Kopparberg, the brand with more 18-34 year old drinkers than any other beer or cider brand [Savanta] is perfectly placed to bring its cider expertise to the evolving category, said Brian Perkins, president, Budweiser Brewing Group UK&I, who said the product will “not only attract existing fans, but also build new brand fans.”
Kopparberg Crisp Apple will be available in the off trade from March 2025.
Meanwhile, Thatchers Zero has made its TV debut in January, making it the first low/no alcohol cider to have its own national TV campaign!
The product has had a record year, more than doubling sales in 2024, and extended its top spot as the nation’s bestselling low/no apple cider in the on and off trade.
Merchandising and ranging
Wilson advises that “500ml glass bottles remain the number one pack format, followed by 4x400ml and 10x400ml can formats.” For retailers with limited space, he recommends focusing on “the 4x440ml and 10x440ml packs” or considering Old Mout Fruit Cider's 330ml can format, which “requires less fridge and shelf space.”
Marshall notes that “a third of UK shoppers only ever buy cider in cans,” making canned cider “a must stock product” for convenience retailers. She also points out that “the average customer spends £8.04 per visit at their local store,” suggesting retailers should “stock products in line with this budget, such as single cans” and potentially “run a multi-buy promotion across their single cans range.”
For range building, Wilson suggests starting “with apple and flavoured ciders – those from well-known brands that consumers know and trust.” For retailers with more space, he recommends venturing “into the premium segment, and consider offering a range of premium ciders, like Old Mout Fruit Cider, which will facilitate trade up and a bigger basket spend overall.”
Old Mout Fruit Cider's 330ml can format requires less fridge and shelf space
Hinksman acknowledges that “one key challenge for independents is limited fixture space compared to supermarkets.” To maximise sales, he advises “optimising fridge facings, as cold, single bottles are a summer staple” and “utilising ambient shelves and stack displays for larger packs.”
Marshall recommends “linking merchandising into a specific season or calendar event, especially as we approach spring and summer” to create “an eye-catching display” that helps “entice new customers and encourage them to spend.”
Hinksman emphasises the importance of “capitalising on this seasonal moment,” noting that “convenience remains a top priority for shoppers” and suggesting that retailers should focus on “increasing the availability of popular ciders” during the summer months.
Opportunities for growth
As we move through 2025, there are clear opportunities for convenience retailers to unlock the full potential of the cider category. By focusing on premium crafted ciders, meeting seasonal demand with chilled and convenient formats, and offering options across different price points, retailers can capture the growing consumer interest in this thriving market.
With significant untapped potential in the crafted cider segment and emerging opportunities in sub-categories like pear cider, the message from suppliers is clear: retailers who curate their cider range to match local preferences and meet the evolving demands of consumers will reap the rewards in this dynamic and profitable category.
Last year we were writing about the “Swiss Army knife c-store", a shop that could hold its own against the mults and discounters because it stood at the centre of its community. It would dispense not just groceries but many of the services that encourage people to visit, the everyday things they rely on – from post-office counters and banking to picking up parcels and even dry-cleaning – that could save them a trip into town and encourage them also to purchase some extra items while they were in-store.
The development has been ongoing for some time, and the digital revolution meant continually upgraded and affordable ePOS systems and digital stock-taking enterprises, until electronic shelf-edge labels, self-re-stocking systems and other space-age miracles started to come within reach of even the smallest retailer.
Now, shopper-side, smartphones can be used to make purchases if the store is connected through Snappy Shopper, Jisp or some other online programme, and it can be done remotely, with physical delivery attached – a system which, at a stroke, can vastly increase the sales catchment area of a store: food-to-go particularly benefits from it.
Covid was a double-edged sword in the end, because for all of its inconvenience and even tragedy, it had the effect of putting these changes on steroids, and catapulted the local store to a new peak of importance in the community, fundamentally changing the nature of the business in many instances, and providing a compelling use-case for a lot of the new tech that enabled fresh services to satisfy consumer demands.
During the development of all these innovations, which seemed to be overwhelmingly customer-focussed, as one would expect (since it was the obvious way to take advantage of tech to make more sales revenue), another thread or impetus for development began to appear. This one perhaps grew out of the first stage but seemed more to be aimed at making the lives and routines of retailers easier and more efficient, indirectly enriching the customer experience. Security systems such as Face Watch come to mind.
Gander app
Another example of a service for retailers that also helps customers might be the inventory management system pioneered internationally by Gander. Through its software-as-a-service (SaaS) technology platform, Gander lets retailer know when items are nearing their expiration date, reducing in-store food waste and promotes a circular economy. The heightened stock oversight enables more effective merchandising of products whose shelf-life is running out – perhaps placing skus on offer and at a discount – and which otherwise might go in the dumpster. The customer wins, but so too now does the business.
Ricardo Salazar, CEO of Gander Brazil (the company is also in Australia as well as the UK), highlighted the usefulness of Gander's platform: “The urgency of transforming our efforts to reduce food waste is clear. Gander’s technology enables retailers to reach more consumers, ensuring perfectly good food is sold and consumed rather than wasted. This benefits everyone – retailers maintain their margins, consumers access affordable food, and the resources used in food production are preserved.”
It is the eco-system of evolving, interrelated software and systems that can multiply revenue opportunities and business advantages – with the new recycling regulations coming in, retailers will be wise to take advantage of up-to-the-minute waste services. Again, this is a development that is store-side, although customers will benefit from it.
Gander was launched in 2019, not long before the pandemic swept the globe. It integrates directly with retailers’ POS, automatically, meaning nothing changes in-store at all and no additional staff training is required. The platform allows the customer ultimate control over what reduced priced goods they search for, whether by price reduction, food type or even dietary preferences. Since its launch, Gander has saved an impressive 38.9 million food items from the waste bin.
The point is that there is a bi-directional movement, a convergence, with services directed at shoppers and those directed at retailers coming together and integrating to really have a positive economic effect on businesses. If you read Pooja Shrivastava’s bombshell news feature, which reveals how demand is being stripped from the c-channel, chiefly by a loss of sales in tobacco and alcohol (which is soon to be made worse by even more regulations and taxes), you will see how the economic boosts from taking advantage of in-store services (and “out-of-store" ones such as delivery) cannot be ignored.
Delivery
It is vital for bricks-and-mortar retailers to fully integrate with online sales and their own physical delivery service, and this goes double for local independent retailers, who are in a fantastic position to really cement themselves, in terms of services allied to the internet, as the central pillars of all kinds of sales in their catchment areas. You can literally deliver – or with new parcel-locker options springing up, let customers collect from your store – almost anything from anywhere, meaning you can function as the new Selfridges of your street if you arrange it properly.
Apparently, Brits spend 8.8 per cent of their incomes online, according to analysis by a fashion retailer, double what consumers spend in some other countries (4.3 per cent in the USA and France, for example).
The ONS says that two decades ago, 2006, just 2.8 per cent of UK retail sales were via the internet. By last Christmas that had risen ten-fold to 29.3 per cent. Much of this is not on Amazon but through links on social media, which is overwhelmingly where people now spend their time online. You might click on Amazon once or twice a week, but people are on social media for hours daily, so the retailer who runs a well-updated Facebook page, for example, and is linked up to Snappy Shopper – and maybe can deliver – has opened a potential new world of sales.
So, while the internet has managed to gut the high street, it can also improve the lot of certain shops – namely local convenience stores – who can integrate customers’ online activities with their everyday needs and serve them speedily, whether that involves delivery or click-and-collect.
Rise of delivery lockers is revolutionising the way we send and receive parcels
Matthew Fearn, Head of Network Sales at locker-meisters InPost, says that consumer demand for out-of-home delivery has “skyrocketed” and that the rise of delivery lockers is revolutionising the way we send and receive parcels.
“Today’s shoppers crave convenience,” he says, “and having a parcel nicked from your doorstep or missing a delivery is anything but. As a result, we’re seeing huge demand for InPost Lockers – one of the quickest, cheapest and most convenient forms of out-of-home (OOH) delivery.”
Self-service convenience, with lockers sited outside the store, means that parcels can be collected by consumers 24/7.
“Over half of UK consumers have used them for online purchases, and that rises to 71% for Gen Zs and 68% for Millennials. There is nothing more convenient than being able to pick up a parcel when you’re already out and about on a shopping trip – so it’s no big surprise this is the top reason for choosing a locker. These convenience-loving locker users are more affluent, with 31% having an income over £50k and 39% shopping once a week or more, so they can spend more, and shop more, making them a valuable audience to attract,” says Fearn, adding that lockers also help the environment , since a central “depot” means fewer deliveries, fewer vans on the road – he cites a figure of 84 percent of shoppers who like to do their bit for the planet and think collection offers a greener solution and makes for a feel-good shopping excursion,.
Fearn adds that storing deliveries on-site, if not in-store, increases footfall and drives incremental sales, as customers using them often make additional purchases when visiting a store (based on a survey of over 2000 InPost users). In fact, 98 per cent said the main reason they visited a convenience store location was because an InPost Locker was present, with 74 per cent visiting the convenience store before or after using the locker, and a third spending up to £15 in store.
“The locker market remains extremely strong, and we have aggressive growth plans in place to help more retailers capitalise on this demand. Ultimately, we want to have every UK consumer using InPost Lockers as part of their journey,” he concludes. We remain focused on building density of network and improving user experience by adding new services and features for merchants and customers. As pioneers in the industry, we are revolutionising parcel delivery by making lockers an affordable, convenient and quick way to send, receive or return a parcel, with further innovation planned for 2025.
Meanwhile, parcel locker provider Yeep! – which calls itself a “community-based, eco-friendly parcel place” has partnered with Co-op and will have its facilities installed at 30 stores in locations in locations across the country, and it is likely that once the attractiveness of lockers becomes common knowledge, 2025 might prove to be the year of the locker.
"The parcel lockers form part of Co-op’s approach to develop added services and enhanced convenience - creating a compelling customer offer to ensure our stores are a convenient destination not only for groceries but for a range of services that meet the needs of local communities,” said George Hayworth, Head of Quick Commerce Development at Co-op
Shopping online in-store
Using your phone to buy goods instore, or from afar to collect or have delivered, is a revolution that has already happened and is now taking over the retail world – especially in grocery.
Snappy Shopper, for example, closed out 2024 with a record-breaking December, achieving rapid growth and recording an eight per cent increase in Q4 2024, with weekly trading volumes surging by 42 per cent YOY, marking the platform’s most significant growth since the surge in demand during the Covid-19 pandemic in 2020. Snappy now facilitates over £14m in monthly transactions, with an average delivery order value of £29 – nearly four times the typical in-store transaction value (ACS Local Shop Report, 2024).
This suggests that something like a secular change is taking place in the market, and that ordering by smartphone is fast becoming a default option. Retailers need to have the local delivery capability to benefit from it, however.
During December, for example, Hayat’s Premier Store in Dundee made more than £200,000 worth of grocery deliveries in a single month from a single store, at times making more deliveries per hour than a nearby supermarket – the responsiveness of a smaller store proving more practical.
“Our technology is empowering retailers to connect with their communities like never before,” said Mike Callachan, CEO of Snappy Shopper.
“This growth reflects a global shift in consumer behaviour, with q-commerce [q for “quick”] becoming an essential part of everyday life. It has never been more important to tap into the growth and profitability opportunity available online.”
Retailer Girish Jeeva is set to launch a 24-hour delivery service in partnership with Snappy Shopper.
He points out that unlike some larger retailers who have faced well-documented challenges with technology failures and delivery disruptions during peak times, Snappy Shopper’s tech has worked consistently and empowered independent retailers and store groups to thrive amid growing demand for delivery services.
Similarly, retail technology experts Jisp have recently launched Jisp Intelligence to capitalise on AI trends and provide actionable data and consumer insights reporting to help businesses meet the needs of the modern shopper.
Jisp believes shopper data is a goldmine for retailers and brands, allowing them to understand purchasing patterns, preferences, and trends, and has gathered valuable insights into customer shopping habits. This data has empowered brands to tailor their marketing strategies, optimise inventory, and ultimately increase sales.
The richness of the data and insights Jisp can access has been further enhanced through initiatives launched under Jisp’s new growth strategy. The introduction of point of purchase feedback, for example, represents a significant leap forward in Jisp's capabilities.
By capturing consumer reactions and feedback at the moment of purchase, Jisp can provide real-time insights that can inform immediate marketing and operational decisions. This initiative not only helps brands understand what drives consumer choices but also allows them to adapt quickly to emerging trends.
Again, this is a service that immediately helps retailers build their knowledge and plan their stock, but by taking note of customer habits, it also gives customers more of what they want in terms of convenience and savings through efficiency – without supplier and retailer losing all the savings advantage.
Marketing & Communications Director Alex Rimmer says that Jisp's new NPD reporting plays a crucial role in product development and marketing strategies. It analyses feedback on new products so brands can adjust their offerings and fine-tune marketing messages the better to resonate with consumers.
“Data is the new fuel for the retail world. It provides businesses with the insights they need to tailor their offerings, optimise their marketing strategies, and ultimately drive sales,” he says.
“The level of data and insights Jisp can extract means its findings will be valuable to the whole sector, whether retailer, wholesaler or brand – we can see who is buying a product, when, where, how often, and how the value of a promotion impacts purchase. And because we can get down to very micro-level shopper intelligence, there is the opportunity to collaborate with other data and research businesses to provide actionable data and insights of even greater value.”
Cash and credit
Despite what the government seems to think, cash is very much not on the way out despite parliament recently announcing that shops and hospitality would not be compelled to accept “green money” (meaning that in many places – most pubs, it feels like – you will only be able to pay by card and phone). In fact, people like cash and are using more of it, and they get very annoyed when they are not allowed to, especially locally, in their communities, when they are not spending a great amount.
Cash-counters Volumatic believe that the UK is witnessing a resurgence in cash, as revealed by a new report from Nationwide Building Society. For the third consecutive year, cash withdrawals have risen, with ATM withdrawals increasing by nearly five per cent over the past year. In 2024 alone, over 30 million withdrawals were made, totalling £4.34 billion. Since 2021, the number of cash withdrawals has surged by nearly 30 per cent, defying the narrative of digital payment dominance.
Cash has the great advantage of reminding you then and there that your bank balance is shrinking when you hand over notes and coins, meaning that in the current climate people are increasingly turning away from the credit card “never-never” when they can. And that means c-stores can benefit by going pro-cash with the services they provide, from ATMs to keeping a good float in the till for handing out change.
Volumatic’s CountEasy
It is undeniable that the ongoing cost-of-living crisis has prompted many consumers and businesses to re-evaluate their payment habits, agrees Mike Severs, Sales & Marketing Director at Volumatic. He says that for many, cash remains a trusted, resilient, and private method of payment. Businesses that have shifted to cashless models may be losing customers who prefer the option to pay with cash, underscoring the need for payment flexibility in a challenging economic climate.
Quasi- or para-banking services in-store, however, are an absolute no-brainer for c-stores. You might not have a post office, but you can have PayPoint and allow customers to settle bills and send money where they need to – and they’ll love you for it.
PayPoint Group is doing so well, in fact, that it thinks it will surpass its ambitious target of £100 million EBITDA by the end of next year.
“Our business has continued to deliver further progress in the third quarter building on our strong first half year performance, despite a more challenging overall trading environment and a stalled recovery in consumer confidence,” Nick Wiles, chief executive of PayPoint Plc, said.
“Recent figures show consecutive annual increases [in cash use] since the pandemic ... it’s evident that cash is no longer in decline,” said Mike Severs. “Businesses must adapt to this trend by maintaining the option to accept cash and promoting it to customers. Investing in cash handling technology can streamline operations, improve efficiency, and reduce costs.”
Severs also highlighted the risks businesses face when going cashless. He adds: “Those who have moved to card-only payments should reconsider, as they risk losing customers and revenue. We have seen many retailers and quick-service restaurants reintroducing cash payments with significant success, boosting profits and enhancing customer satisfaction.”
Recycling and waste services
With the government’s new Simpler Recycling reforms due to be implemented, most businesses remain unprepared for the changes, says Mark Hall, Director of Business Waste, a leading waste management business – another service that retailers can benefit from, and therefore so can their customers.
Additionally, with the waste and recycling environment looking to become ever-more regulated under the current government – with steep fines lurking everywhere if the innocent retailer should accidentally break some brand-new rule – it is worthwhile to invest in getting the rubbish problem professionally addressed.
Hall explains that although the UK's overall recycling rate has seen a significant rise, reaching 44 per cent in 2015 compared to just 17 per cent in 2008, progress has plateaued in recent years, with indications that the rate may now be declining.
But according to the Simpler Recycling reform mandate released by DEFRA, by 31 March 2025, businesses and relevant non-domestic premises in England will need to arrange for the collection of the core recyclable waste streams.
The Association of Convenience Stores (ACS) has launched new guidance for retailers in England detailing what they have to do to stay on the right side of the law when new rules on separating waste come into force at the end of March when businesses (meaning the entire business, not just one store) with more than 10 full-time equivalent employees will be required to separate their waste into four different streams. Those with fewer than 10 FTE employees will have until March 2027 to comply.
The four waste streams that will need to be segregated are:
Dry recycling (glass, metal and plastic)
Paper and card
Food waste
Black bin waste (to be sent to landfill)
Some waste collectors will take dry recycling and paper/card together, but retailers will need to confirm this with their collector.
Hall explains that businesses must arrange separate collections of food waste, paper and cardboard , and other dry recycling (glass, plastic, and metals, which can be combined). It means businesses can no longer throw any of these materials away with general waste. That’s a big change and needs in many cases to be planned for: Business Waste sent out communications to over 15,000 customers to make them aware of DEFRA's new Simpler Recycling reforms only for response data to reveal just one per cent (!) were aware of the new laws.
By 31 March 2025, businesses and relevant non-domestic premises in England will need to arrange for the collection of the core recyclable waste streams
Hall said that micro-firms (businesses with fewer than 10 full-time equivalent employees, so a decent proportion of C-stores are included here) will be temporarily exempt from this requirement. They still have until 31 March 2027 to arrange for recycling of core recyclable waste streams.
"A great place to start is to conduct a waste audit to understand how much waste your business produces, what types of waste you generate, and what bins and collections you need. Business Waste offers a free waste management audit that can help,” says Hall.
"Following on from this, you can then look to create a waste management plan that will help ensure your business manages its commercial waste safely, appropriately, and efficiently.
"All staff must understand the new laws and what changes are being made in the business to follow these. Educate staff about the waste you generate and its impact on the environment, so they understand the reasons behind the changes.
"Set clear guidance to follow and provide instructions or labelling that helps staff segregate and dispose of waste correctly.
"Reducing waste is cheaper and better for the environment than removing it. Look for ways your business could reduce its waste at the source. Rethink packaging, switch from single-use products to reusable options, or evaluate your inventory management.
"A waste broker can help you understand your waste needs, arrange any collection and disposal services, and work with their suppliers to find you the best price.
ACS chief executive James Lowman said, “Retailers need to take a practical approach to the bins that they provide and assess the risk of recyclable waste being contaminated or requiring further separation, especially in places like petrol forecourts where more retailers will have bins that they are responsible for outside of the store.
"This is a significant change to waste separation and collection that retailers need to prepare for sooner rather than later.”
Tech for the future shop
Speaking of fines for accidentally breaching the many new rules and laws being applied to the sector, it should be said that tech can help protect retailers in other areas, too.
With far more stringent tobacco and vape legislation incoming, and entire businesses at risk for unknowingly selling beer to a 17-year-old, it is vital for retailers to protect themselves.
It is excellent news, then, that this year retailers will be able to accept digital proof of age to sell alcohol, after the government recently announced that it will introduce digital driving licenses (previously a photo on a phone was not enough).
CEO James Lowman represents ACS on the board of PASS – a not-for-profit body formed in 2001 to set standards for proof of age, the security features of that proof of age and the process for accepting it – and has chaired working groups developing digital proof of age standards and acceptance systems for the past five years.
"With a physical proof-of-age card, all the security features are there to inspect, notably the PASS hologram and thermally-integrated picture (no edges or bumps),” he says.
"It’s more complex with digital proof of age because what you could be shown on the screen could have been doctored in any number of ways; there needs to be a digital 'handshake' between the retailer and the customer to verify its validity.
"Thankfully PASS now has a system ready to go to do exactly this job.
"Two quick scans and the proof of age can be verified with minimal data transfer – you only need to know if that person is old enough to buy the product they want, you don’t need to see their address much less get into the ramifications of holding customer information."
Lowman also pointed out how getting the use of digital proof of age right and combining it with effective use of age estimation technology would bring huge savings to retailers using self-service checkouts.
"Customers over 25 could breeze through without age checks, those under could prove their age to the till, with colleagues playing an oversight role," he wrote.
"Technology playing a greater role in determining customers’ age will reduce the number of times a colleague challenges a customer, something we know causes friction, conflict and even violence on a daily basis.
QR Squared helps brands move beyond stripy barcodes
Digital proof of age, including a digital driving licence, offers real benefits for local shops.
"We need to stay at the centre of discussions on how this is used in stores so that we can fully realise these", stated Lowman.
Another fine example of how smaller digital advances are going to help independent retailers comes courtesy of QR Squared, a recently launched new digital service designed to help brands of all sizes future-proof their packaging through certified QR codes.
QR Squared will introduce a fully compliant, approved, and secure platform to create and download Digital Link QR codes for the food and grocery sectors. In an industry first, this will provide a seamless transition from traditional barcodes to 2D barcodes, from enterprise businesses to challenger brands of all sizes.
Ahead of packaging change initiatives, including the discontinuation of barcodes and the introduction of Digital Product Passports, QR codes will become an essential tool for independent retailers. It enables brands to easily upgrade their current barcodes to QR codes, which will scan securely at point-of-sale at retailer checkouts. The same QR code is scanned by customers to access more information on the brand or product – intelligent, communicative bar-coding that links up with other apps, including social media for customers.
Brands can quickly create and manage customised landing page content for each product – at scale – through their QR Squared account. This content, accessible via a simple scan of the QR code, provides consumers with relevant and engaging information. The platform also allows brands to easily update and edit landing pages in real-time, even after products have been labelled, ensuring timely and relevant messaging for consumers.
“QR codes can operate at barcode level unlocking meaningful consumer communication opportunities to those businesses that want to get ahead of the curve,” said Alice Rackley, CEO of QR Squared and Polytag. “The team behind QR Squared are confident that the solution launching today - in partnership with GS1 - will transform many industries.”
With all these useful and often low-cost-to-free advances benefitting hard-pressed retailers, it is definitely time to think about upgrading expanding the services your store can offer to customers – especially delivery and collection, and in-store financial facilities – alongside taking advantage of the services being offered to retailers from many physical and digital companies, who profit by making your life easier. It’s a virtuous circle that helps to fight against ongoing economic conditions and onerous legislation.
The UK’s dairy sector is undergoing a period of transformation, shaped by shifting consumer habits, economic pressures, and evolving attitudes towards health and sustainability. The cost-of-living crisis, which has dominated retail trends in recent years, has led to significant cutbacks in dairy purchases, with milk and butter among the hardest-hit categories.
According to NIQ data, published in December, milk sales experienced a substantial drop of £223.3 million over the past 12 months, while butter, spreads, and margarine saw a decrease of £63.7m. These figures position milk as the fastest falling category and butter, spreads, and margarine as the third fastest declining in 2024.
The steep price increases seen across these categories in recent years have taken their toll on household budgets, prompting consumers to seek value-driven alternatives.
However, despite these setbacks, early 2025 has brought a more positive outlook. In the four weeks leading up to 27 January, dairy sales saw a 6.8 per cent increase, with food inflation easing to 1.6 per cent – an encouraging shift from the 6.4 per cent recorded last year. This suggests that while consumers have been forced to make difficult choices, demand for dairy remains strong when pricing pressures lessen.
Photo: iStock
The dairy alternatives market is also experiencing a complex period of change. While inflation led to cutbacks on plant-based dairy substitutes in 2023, slowing price rises and an improving economic landscape are expected to support a return to steady growth. By 2026 and beyond, the category could regain momentum, particularly if younger consumers maintain their purchasing habits as they age, Mintel notes.
The dairy alternatives market in the UK is forecast to grow at a CAGR of 17.57 per cent between 2025 and 2030 [Mordor Intelligence, 2024].
Innovation is playing a crucial role in shaping both dairy and its alternatives. Health-conscious consumers are driving demand for functional products such as high-protein yoghurts and natural dairy options, while convenience remains a key purchase driver, highlights a report from Euromonitor.
At the same time, private label is thriving, the August 2024 report from the market researcher adds, as shoppers continue to seek cost savings in the face of economic uncertainty. Discounters and value-driven retailers are benefiting from this shift, offering competitive pricing without significantly compromising quality.
“Both traditional dairy and plant-based dairy alternatives are set to experience a period of steady yet stabilised growth, with innovation and new developments maintaining a competitive edge in the local market,” the report states.
Milk and shake: strong momentum
The flavoured milk category continues to show strong momentum within the convenience channel, with total sales now reaching an impressive £324 million [IRI, 52 w/e 07.12.24].
Mars Chocolate, Drinks & Treats (MCD&T) has played a pivotal role in this success, achieving an outstanding 34 per cent growth in sales over the past year and surpassing 13.6 million units sold through convenience stores.
“Our growth in the convenience channel highlights the enduring appeal of our trusted brands and the increasing demand for flavoured milk as a convenient, on-the-go refreshment option,” comments Kerry Cavanaugh, general manager at Mars Chocolate, Drinks & Treats.
“With strong branding, quality consumers trust, and a variety of popular flavours, the MCD&T portfolio continues to help convenience retailers unlock the potential of this growing category.”
While many flavoured milk drinks are ambient and aid stock management, chilled presentation remains key to enticing customers looking for ready-to-drink options, Cavanaugh noted, adding that the MCD&T range, featuring favourites like Mars, Mars Caramel, Maltesers, Milky Way, Twix, Snickers, M&M’s Brownie, and Galaxy, offers broad consumer appeal.
“All products are suitable for vegetarians, with no added sugar, ensuring they cater to the evolving preferences of today’s shoppers,” he adds.
The demand for high-protein products is rapidly growing (see the dedicated feature in this issue), driven by a wider shift towards health-conscious consumption. Protein shakes, once seen as niche products for gym-goers and athletes, have now firmly entered the mainstream, appealing to a broad demographic of consumers focused on their health and fitness goals.
Matt Stanton, Head of Insight at DCS Group, highlights the significance of this trend: “It’s important to remember that many shoppers are looking to boost their protein intake, so retailers should include protein shakes alongside their usual flavoured milks range.”
The protein shakes category in the UK is now worth £103 million and growing at a rate of 13 per cent year-on-year. While it is a key segment across all retail formats, it holds particular importance in the Impulse channel, where it is worth £10.6 million – representing a 10 per cent share of total sales [Circana, MAT 24.11.24].
With more than 66 per cent of sports nutrition shoppers consuming these products at least once a week, and 22 per cent consuming them more than four times a week, according to Mintel research, protein shakes have become a staple for many. This demand isn’t confined to a single demographic – consumers range from 18 to 55+ and represent a balanced gender split [Glanbia Brand Health Tracker, March 2024], showing that protein consumption is a growing priority across different lifestyle groups.
Stanton points to Grenade as the No.1 protein shake brand in the Impulse channel, holding a 41 per cent share. The most in-demand SKUs include Grenade Carb Killa Protein Shake 330ml in Fudge Brownie, White Chocolate, and Cookies & Cream.
Additionally, Optimum Nutrition – widely recognised as the world’s No.1 protein powder brand – is making significant strides in the ready-to-drink segment. As the fastest-growing protein shake brand in grocery, its key SKUs include Optimum Nutrition High Protein Shake 330ml in Chocolate, Strawberry, and Vanilla.
“The protein shakes category is expected to grow at CAGR 16.7 per cent, reaching £277m in the total UK by 2026,” Stanton says. “Therefore, the category will continue to grow in importance throughout 2025 and beyond, and retailers should position themselves to capitalise by stocking a range of Optimum Nutrition and Grenade shakes.”
Future of cheese
Despite economic challenges in recent years, cheese remains a household staple in the UK, valued for its taste, versatility, and nutritional benefits. However, inflation, Brexit-related disruptions, and shifting consumer spending patterns have influenced how frequently and which types of cheese shoppers are buying. While private label continues to dominate, accounting for 60 per cent of total cheese sales (worth £1.8 billion and growing at four per cent year-on-year), branded cheese has shown stronger growth, increasing by 6.6 per cent in value to reach £1.2bn. With branded cheese volume sales now rising at 1.9 per cent YOY, outpacing private label at 0.4 per cent, the category is regaining momentum.
Even as consumers manage tighter grocery budgets, premiumisation remains a strong force in the cheese sector, says Heloise Le Norcy-Trott, Group Marketing Director for Lactalis UK & Ireland, as she highlights several key trends shaping the cheese market in 2025.
“Premiumisation still has the potential to drive market growth. This is likely to come from a combination of new and old consumer habits – exploring new ways of enjoying cheese, like enjoying hot and using it in different recipes, and rediscovering varieties they previously enjoyed,” she comments.
“With cheese being a household staple, it’s important that the industry and retailers continue to adapt, expand, and innovate their offering in the coming months, to cater to changing consumer demands as shoppers get back into cheese.”
“Hot eating is currently one of the highest grossing cheese categories, offering quick and tasty hot meal-time solutions, and another area where retailers can encourage premiumisation,” Le Norcy-Trott explains.
The consumer research preceding the Président Extra Creamy Brie launch found that brie shoppers are willing to pay extra for brie made in France (49 per cent) and extra creamy brie (48 per cent).
“This aligns with a broader consumer trend of seeking affordable indulgence, where quality cheese becomes an everyday treat rather than a luxury purchase,” she says.
With growing consumer awareness of nutrition, cheese is increasingly recognised as a valuable source of protein.
“There is a growing interest in how what we eat and drink affects our bodies – with more than half of consumers reading product labels more than last year. Therefore, one trend to look out for is consumers seeking out cheese for its nutritional benefits,” Le Norcy-Trott adds.
Cheese’s natural protein content – providing 15 per cent of the daily recommended intake – positions it as a nutritious choice. Unlike some plant-based alternatives, cheese contains all nine essential amino acids (the building blocks of protein), making it a complete protein source that supports muscle maintenance, bone health, and overall well-being.
The rise of flexitarian and vegetarian diets is further boosting cheese’s appeal. Hot-eating cheese products, such as melted brie, grilled halloumi, and baked camembert, provide a satisfying alternative to meat-based meals. As more consumers look for plant-forward dining options, cheese is playing a key role in meat-free cooking, both as a protein substitute and as an ingredient in popular dishes.
Platforms like TikTok and Instagram are influencing how consumers interact with cheese, inspiring creative ways to incorporate it into meals.
“With the demand for affordable indulgence driving the category, we can expect a blurring of the distinction between speciality, every day, and recipe cheese, and cheese lovers ‘mixing it up’ with treats like brie on toast,” Le Norcy-Trott predicts.
“While it’s unlikely British consumers will forsake cheddar as the nation’s favourite cheese, they will increasingly want to widen their cheese repertoire, and products like Lactalis’s Leerdammer slices, the number #1 cheese slices brand in the UK in value sales, will encourage them to think ‘beyond the block.’”
“Cheese products combined with naturally herbaceous flavours like chive, onion, garlic, truffle and dill are increasing in popularity, and more specific flavours like provolone, Gouda, and cheddar are satisfying consumer demand,” Le Norcy-Trott says,
“The implications for stores and suppliers too are that they should look across the dairy aisle for inspiration for tomorrow’s new products. They should think too about reducing additives and look for new consumer needs around seasonality or flavours.”
Las month, Leerdammer, the natural cheese slice brand from Lactalis, has launched its new ‘Incognito’ TV advertising campaign – aiming to drive memorability with consumers by tapping into the brand’s ‘Deliciously Different’ positioning and comedic tone of voice.
Reaching over 7.6m ABC1 25-45 consumers, the campaign promotes Leerdammer’s flagship slices range – Leerdammer Original Slices and Leerdammer Light Slices – across BVOD and YouTube advertising.
Yogurt: gut happy
Yogurt experts Yoplait have kicked off the new year with two new reformulated recipes on their leading kid’s brands, Petits Filous and Frubes, to ensure the products are even healthier, yet still retain the same delicious taste.
Since 2015, Yoplait has improved the health credentials of its kids’ portfolio by reducing sugars by 25 per cent. The kids’ yogurt company has been driving the sugar reduction progress within the yogurt category and was applauded by Public Health England by helping the category to reduce overall sugars by 13 per cent.
“Petits Filous and Frubes are well-established and much-loved brands so it’s critical we take a gradual approach to our sugar reduction, and we have done so without resorting to adding thickeners, sweeteners, processed fibres or flavours, but our mission is also to educate about the nutritional value of fortified kids’ yogurts and bring lost consumers back into the category,” said Antoine Hours, General Manager of Yoplait UK.
The yogurts and dairy desserts category contributes a small, 4.5 per cent of the daily free sugar intake of 4-10 year olds and in contrast, more than 50 per cent of free sugars in this age group comes from confectionary, cakes/biscuits and sugar-sweetened drinks, all of which are low in essential nutrients.
Yoplait will continue with its education and awareness campaign into 2025 and its kids’ brands will continue to drive relevance and excitement with consumers. Petits Filous has last month rolled out a fresh new-look which dials up the health credentials of the brand with a focus on bone health and Frubes is running an on-pack promotion offering a once in a lifetime family trip to Japan, a first for the kids’ yogurt category.
“If we are able to re-educate about the positive nutritional benefits, showcase our brands to consumers and encourage them to switch back, we have identified a potential £150m sales opportunity for retailers over the next five years,” added Hours.
Meanwhile, Yoplait has recently launched Yop 500g Strawberry into Booker Cash & Carry, ensuring the availability of the UK’s only drinking yogurt for independent and convenience retailers across the country for the first time.
The flavoured milk category is experiencing huge growth and is expected to be worth £671m by 2028. The total category is currently being driven by the convenience sector, accounting for 44 per cent of total category sales.
In a recent taste test, more consumers preferred the taste of Yop to its flavoured milk competitors.
“Yop is unique,” said Ewa Moxham, Head of Marketing at Yoplait UK. “It offers a delicious flavour and as it is a yogurt drink rather than just flavoured milk, it keeps consumers fuller for longer and our 500g format is perfect for on-the-go consumption”
Yop Strawberry 500g is suitable for adults and children, has a uniquely smooth texture and is a source of Protein, Calcium and Vitamin D, critical to help children and teenagers build healthy bones.
Dairy major Arla Foods has also signalled its ambition to invest and grow its yogurts portfolio by launching three new branded yogurt products in November.
The new products include Arla LactoFREE natural yogurt (400g), Arla Skyr Whipped (128g) – in three flavours – and Arla Protein yogurt, in a larger pot (450g).
Arla LactoFREE natural yogurt offers all the taste of dairy, but with none of the lactose. High in protein and containing added vitamin D, the larger format provides shoppers with the option to enjoy Arla LactoFREE natural yogurt at any time of the day, whether it’s to combine with cereal for the ultimate breakfast, snack on throughout the day, or to add a dollop to cooking for extra creaminess.
Arla Skyr Whipped is a new addition to the Arla Skyr family and comes in three flavours: Strawberries and Cream, Caramelised Orange, and Coconut and White Chocolate. It’s the perfect anytime snack, offering the ultimate blend of feel-good indulgence – protein rich and creamy Icelandic-style skyr, whipped to light and airy perfection, then layered over a fruit compote for a burst of flavour.
Leading dairy protein brand, Arla Protein, has also launched a 450g pot in Vanilla and Strawberry flavours. Containing 45g of protein, the bigger pot is an ideal base for breakfast and snacks.
“It’s been nearly 10 years since we brought our first Arla yogurt to the UK market, and as the UKs largest dairy cooperative, and one of the largest food & drink companies in the country, we are proud to be expanding our yogurts portfolio to offer increased choice for those looking for natural and nutritious food options,” Catriona Mantle, Associate Category Director at Arla Foods, said.
“Health and taste are the biggest reasons that shoppers are generally consuming yogurts, but we also know that shoppers aren’t shopping for ‘yogurts’, they’re shopping for specific occasions. We are therefore offering shoppers a choice; whether they’re looking for a yogurt to meet functional needs, big or small serving sizes, or for a particular level of indulgence. Our Arla yogurts portfolio is growing, but we’re not stopping there, as we have exciting plans to come in 2025!”
Müller Yogurt & Desserts, meanwhile, has stepped up its sustainability credentials, converting its iconic Corner yogurt pots from white to clear plastic, as the business works to halve the environmental impact of its packaging by 2030
The majority of Müller Corner and Müller Bliss Corner yogurt pots have already converted, with the remaining volume taking place by the end of 2024.
Müller said the introduction of fully recyclable clear pots will facilitate the retention of the material for reuse again within the food sector.
Müller UK & Ireland targets on average 30 per cent recycled content in its plastic packaging by 2025, and the business has also confirmed that it is aiming to add recycled content into its clear Corner yogurt pots by the end of 2025.
With Müller Corner seeing 11 per cent value growth year-on-year, and 78 per cent of shoppers preferring a clear Müller Corner pot to a white pot, the move is expected to drive further category growth.
The move follows the launch of Müller’s redesigned branded yogurt and desserts packaging, created to make it more distinctive, cohesive and easy to find and buy.
Cool coffee fix
The ready-to-drink (RTD) chilled coffee category has been one of the strongest performers in the beverages sector, experiencing sustained growth as consumers expand their purchasing habits. Now valued at £316m, RTD coffee continues to thrive, with Starbucks Chilled Coffee leading the market at £157m, holding an impressive 50 per cent category share [Nielsen, w/e 30/11/2024]. Over the past 12 months, the brand has seen an 8.8 per cent increase in value and a 9.2 per cent rise in volume sales, demonstrating the ongoing strength of the category.
“We anticipate that the category will continue to expand in scale for some time yet,” says Adam Hacking, Head of Beverages at Arla, attributing this growth to a shift in consumer preferences, particularly among younger demographics.
“Younger consumers, particularly those engaged with coffee house experiences, are increasingly choosing cold over hot formats. The opportunity exists to enhance this coffee house trend through fulfilling at home and on the go missions across different types of retail and foodservice environments.
While RTD chilled coffee has flourished, there remains untapped potential, he notes. “The hot beverages category is worth in excess of £2bn in retail, and so the cold coffee category has some headroom to go to unlock this opportunity.”
One of the key factors driving RTD coffee sales is taste. Consumers are primarily drawn to the category for flavour, and brands that continuously innovate in this space are seeing the most success. Hacking highlights that sweet flavours, particularly Chocolate and Caramel, are among the fastest-growing trends.
“Consumers are buying into the category primarily for taste and this is reflected in our ethos for flavour quality and innovation. Starbucks chilled coffee inspires consumers to enjoy new on the go beverage moments in a convenient and fresh way,” he says.
At-home consumption is also on the rise, with multiserve formats seeing the fastest growth in the RTD coffee segment. As consumers look for new ways to enjoy coffee beyond the traditional single-serve can or bottle, Starbucks has expanded its Multiserve range (750ml sharing size formats), now offering four core varieties: Skinny Latte, Caramel Macchiato, Caffè Latte, and Cappuccino.
The increasing popularity of larger formats led to Starbucks Chilled Classics Skinny Multiserve being named Product of the Year 2024, further solidifying the demand for take-home chilled coffee solutions.
“Consumers like variety when it comes to chilled coffee, so Starbucks recommends stocking a range of flavours to reach the broadest audience possible,” says Hacking. Must-have lines include Caffè Latte, Skinny Latte and Caramel Macchiato variants in the Starbucks Chilled Classics range, Starbucks Doubleshot Espresso, Caramel and Coffee variants of Starbucks Frappuccino and Starbucks Oat Based Vanilla Macchiato.
Continuous product innovation has played a crucial role in Starbucks Chilled Coffee’s success. Recent launches, including Starbucks Protein Drink with Coffee and Starbucks Frappuccino Caramel No Added Sugar, were named Products of the Year 2025, reflecting consumer demand for new and exciting offerings.
This year, Starbucks continues to push boundaries with new limited-edition releases such as the Blissful Retreat Chilled Classic and Frappuccino Sip On Sunshine, offering fresh seasonal flavours. Additionally, the brand has expanded its plant-based range with Starbucks Oat Based Cappuccino and Oat Based Caramel Macchiato, catering to the growing demand for dairy-free alternatives.
“These exciting additions to the Starbucks Chilled Classics range mean there are now more ways for coffee-lovers to enjoy their favourite Starbucks drinks than ever before, and with new plant-based recipes, deliver that same iconic Starbucks taste as our core dairy range,” Hacking comments.
Meanwhile, Nescafé has collaborated with the ultimate break-brand, KitKat, to create a delicious chocolate flavour latte. Available from mid-December, the Nescafé KitKat Latte combines the best of both worlds, bringing together the rich flavours of Nescafé coffee with the signature chocolatey-wafer taste of KitKat.
It joins a full line-up of other Nestlé confectionery collaborations, including Aero Peppermint and Quality Street Green Triangle. The brand said the line-up is proving to be popular with consumers as both the Nescafé Peppermint Aero Mocha and Nescafé Quality Street Mocha are the top two best-selling new products across in-home coffee [Circana & Kantar, Average 4w/e 02.11.24].
“We are thrilled to continue our collaborations with iconic Nestlé confectionery brands. The chocolatey-wafer flavour of KitKat perfectly complements the aromas of Nescafé coffee. We’re excited to be bringing more unique and indulgent experiences to coffee lovers in the UK,” Ingrid Hayes, Marketing Director for Nescafé at Nestlé UK & Ireland, has said.
“We’re also proud of the fact that real milk goes into the Nescafé frothy coffee range, produced here in the UK at our Dalston site, with milk sourced from dairy farms across Ayrshire and Cumbria.”
Through Nestlé’s partnership with First Milk, the business works with 85 farmers in a dairy operative across Cumbria and Ayrshire to provide high-quality fresh milk for brands made in the UK, such as KitKat and Nescafé Frothy Coffee.
Embracing change
The dairy and alternatives market is evolving rapidly, driven by shifting consumer preferences, economic pressures, and an increasing focus on health, sustainability, and indulgence. While traditional dairy staples like cheese remain household essentials, innovation in formats, flavours, and nutritional benefits is shaping the future of the category. At the same time, the growing demand for plant-based alternatives continues to reshape the market, offering consumers more choice than ever before.
Premiumisation, functional benefits, and sustainability are key themes influencing purchasing decisions. Consumers are seeking high-quality products that deliver both taste and health benefits, with cheese as a protein source and dairy alternatives offering variety for those looking to reduce their intake of animal-based products. Meanwhile, convenience and versatility remain critical factors, as shoppers look for products that fit seamlessly into their lifestyles, whether for quick meals, on-the-go snacks, or indulgent treats.
For retailers, the challenge – and opportunity – lies in balancing tradition with innovation. By responding to changing dietary habits, offering diverse product ranges, and embracing new trends such as hot-eating cheese, plant-based dairy, and globally-inspired flavours, they can drive growth and maintain consumer engagement.
As the market moves into 2025 and beyond, adaptability and responsiveness will be key. Those who can anticipate consumer needs, deliver on taste and functionality, and stay ahead of emerging trends will be best positioned to thrive in this dynamic and competitive landscape.
Milk ahoy!
SPAR Serwent shakes things up with new milk shed
SPAR Derwent in Keswick has become the latest store to introduce an Ann Forshaw’s Milk Shed, bringing fresh whole milk and delicious flavoured milkshakes to the local community.
The new Milk Shed follows successful launches at Ann Forshaw’s Alston Dairy and SPAR stores in Burnley and Milnthorpe.
The vending machine, open 24/7, dispenses gently pasteurised, non-homogenised milk, available in 500ml (£1) and one-litre (£1.60) servings. Milkshakes, priced at £1.80 for 500ml and £2.80 for one litre, come in Chocolate, Strawberry, Banana, Vanilla, and Salted Caramel, with a rotating Limited Edition flavour—starting with Red Velvet for Valentine’s Day.
To celebrate February half-term, a retro throwback range featuring Cream Soda, Parma Violet, Cola, Lime, Candy Floss, and Mixed Berry will also be available.
Eco-conscious customers can opt for reusable glass bottles for plastic-free refills. Plus, recyclable cups and paper straws are available for a greener experience.
“Wherever we launch an Ann Forshaw’s Milk Shed, our SPAR customers love the concept, and we have high hopes that our latest launch will be lapped up by the community in Keswick,” Fiona Drummond, Company Stores Director at James Hall & Co. Ltd, said.
“There is nothing not to like about the product. The milk is competitively priced, and the milkshakes are a delicious treat and suitable for all ages with the conscious decision to utilise natural flavourings.”
There is more to come for SPAR customers in Cumbria this Spring with rollouts of Milk Sheds taking place soon at SPAR Bowness, SPAR Maryport, and SPAR Whitehaven.
Cheese trends 2025
Lactalis cheese market predictions for 2025 and beyond
Premiumisation and innovation: Despite economic pressures, consumers continue to seek out premium cheese experiences. Whether rediscovering old favourites, exploring new varieties, or embracing hot-eating options, shoppers are willing to pay more for quality and versatility. Président Extra Creamy Brie, launched in 2024, highlights this trend, offering a melt-in-the-mouth indulgence perfect for hot dishes.
Protein-rich appeal: With growing awareness of nutrition, more consumers are recognising cheese as a high-quality protein source. Unlike some plant-based proteins, cheese contains all nine essential amino acids, making it a valuable dietary staple. As label-conscious shoppers look for natural, nutrient-rich foods, cheese’s role in a balanced diet is set to strengthen.
Meat-free meal solutions: As flexitarian and vegetarian diets gain traction, cheese is becoming a go-to alternative to meat protein. From recipe staples to hot-eating cheese options, products that cater to meat reducers are seeing rising demand, with convenience and indulgence remaining key purchase drivers.
Social media influence and personalisation: Platforms like TikTok are reshaping food trends, inspiring consumers to experiment with cheese in new and creative ways. From everyday cooking to viral recipe hacks, digital engagement is driving greater interest in speciality and international cheeses, encouraging shoppers to diversify their cheese choices.
Sustainability and provenance: Environmental concerns continue to shape purchasing decisions, with consumers looking for responsibly sourced and plastic-free options. Regionality is also a growing factor, particularly in Scotland, where local brands such as Orkney and Seriously are gaining traction.
Chilled & Charged
Adam Hacking, Head of Beverages at Arla, shares three top tips for retailers looking to maximise seasonal chilled coffee sales
Stock recognisable brands with demonstrably high cash rates of sales
Offer a range of flavours and pack formats to best meet varying consumer needs
Take advantage of opportunities to highlight the category (e.g. POS, promotions and off shelf features)
Typically, shoppers have an eye on wellness at the start of the year – and 2025 was no exception.
According to the latest Kantar grocery sales data, protein products pulled their weight at the tills in January as demand for bars, bites and drinks boosted spending on sports nutrition products. Sales for this category at stores were 47 per cent higher than last year, with over two million households buying these items during the month.
Once the preserve of bodybuilders and elite athletes, sports and protein products have since surged into the mainstream, with everyday consumers embracing these products as part of their health and wellness routines. The UK’s sports nutrition market has grown beyond all expectations, with protein bars, shakes, and functional foods becoming a staple for shoppers looking to boost their energy, manage their weight, or enhance their fitness regimes.
This shift is reflected in compelling market data. The sports nutrition category is worth £1.1 billion in the UK and has been growing at an impressive 19 per cent year-on-year (YoY). In the grocery retail market, protein bars and shakes are worth a combined total of £230 million, growing at 7.5 per cent YoY, and £29m in the Impulse channel [Circana, MAT 24.11.24].
“Protein bars and shakes over-index in the convenience channel,” Matt Stanton, Head of Insight at DCS Group notes, adding that independent convenience stores take 13 per cent share of the category (£29m vs. £230m in the total UK), significantly higher than in most other grocery categories.
“Protein is on-trend, with new products appearing regularly across the grocery market,” he adds. “Protein is an essential part of a healthy diet, and many people are not consuming enough. High protein snacks and shakes are a convenient way to increase protein intake.”
The evolving profile of sports nutrition consumers means that retailers need to stock a variety of products to cater to different needs. According to the Glanbia Brand Health Tracker [March 2024]. Sports nutrition shoppers are of all ages from 18 through to 55+, of all household incomes, and are split 52 per cent male, 48 per cent female.
“Whilst the stereotypical idea of a sports nutrition consumer is a regular gym-goer or fitness fanatic, the market is actually a lot broader than people assume,” Stanton says. “It’s important that retailers stock a range of products to suit the needs of different shoppers.”
Powering up
In the UK, 88 per cent of all adults have a health goal and 30 million people exercise regularly, with 20 million using sports nutrition products. Of shoppers who use sports nutrition products, 66 per cent consume them at least once a week, and more than one in five (22 per cent) consume them more than four times a week [Levercliff Consumer Tracking Research, May 2024].
Stanton says protein bars and protein shakes should be the key focus for convenience retailers, as these make up almost 100 per cent of the category in the Impulse channel.
“The sports nutrition market is worth £29m in the Impulse channel, of which £19m is protein bars and £10m is protein shakes,” he notes, citing Circana research. “The protein powder market is huge, but the majority of this is purchased online or through specialist retailers or supermarkets.”
Grenade is the leading protein bar brand in the UK, commanding a 57 per cent share of the total market and an impressive 73 per cent in the Impulse channel.
UFIT holds the top position in the UK protein shake market with a 31 per cent share, followed by For Goodness Shakes at 19 per cent and Grenade at 10 per cent. However, in the Impulse channel, Grenade outperforms its competitors, securing the number-one spot with a 41 per cent share [Circana].
In January, UFIT entered into the protein bar segment with the launch of UFIT Loaded Protein Bars.
Packed with 15g of protein and low sugar, UFIT Loaded intends to reenergise consumer interest in the category with popular flavours: Caramelised Biscuit and White Chocolate Cookie. Made with natural flavours and real chocolate, they offer a delicious option for health-conscious consumers looking for on-the-go snacking.
Protein bars are typically seen as expensive and still have negative taste connotations by consumers. This has made the category highly competitive, with value-based bars tending to be small and lacking in shelf presence. UFIT Loaded is designed to work against this trend, offering shoppers a tasty and HFSS-compliant choice with the attractive price point of only £1.29 per bar.
“Launching UFIT Loaded is an obvious next step for us, bringing a new and complementary dimension to our leading protein product range,” says Richard Northridge, Sales Director at UFIT.
“Our loyal shoppers expect quality and value, and that’s exactly what our new bars offer: a great-tasting snack with high protein and low sugar that are accessibly priced, reengaging with consumers who may have moved away from the category previously.”
New UFIT 'Loaded' bars set to reenergise protein category
The launch of UFIT Loaded Protein Bars is supported by a £10,000 marketing investment across influencer social media channels and digital advertising.
As the UK’s leading ready-to-drink protein brand, UFIT is at the forefront of the category. Its core range of protein shakes also boast the highest product loyalty among all other RTD protein brands, including retailer own-labels.
Last October, the brand launched a new range of price-marked-packs into key wholesale and convenience channels. Available across all core flavour shakes, the range entices new shoppers with an attractive £1.79 fixed price point, replacing its current duo impulse packs.
The updated packaging featured across all UFIT 22g Protein 310ml bottles with an initial launch in Spar, Nisa, and Filshill, and wider distribution from January 2025.
With the ready-to-drink protein category demonstrating strong growth potential in the impulse channel, the refreshed packs and price point are expected to serve as an excellent introduction for new shoppers who have not yet tried a protein milkshake.
“This is a big moment for UFIT. Competitively priced, our new packs create an attractive entry point for new consumers who have never tried a protein drink before – as well as a great deal for our fans,” Northridge commented.
“Tapping into the shift in consumer behaviour towards single-price options, this PMP launch not only meets the demand for attractive pricing but also gives us a great opportunity to expand our reach into convenience sector, which has so much potential for the category.”
UFIT unveiled a SPAR TV campaign last month to support the launch, alongside in-store retailer advertising and digital banners.
“Our goal is to help people get the most out of every day by bringing protein to the masses, with a range of convenient drinks that ‘fit around you’. Whether you’re on the move, busy at work or looking for something to keep you fuller for longer, UFIT makes it simple and enjoyable to stay on top,” Northridge added.
Meanwhile, Optimum Nutrition, one of leading global protein powder brands, is leveraging its strong reputation to expand into the protein bar and shake markets. Optimum Nutrition shakes have experienced remarkable growth of 400 per cent YoY, reaching £2.5m in sales, while its protein bars, now valued at £1.5m, are also gaining momentum.
“Convenience retailers should also consider stocking Optimum Nutrition pre-workout shots, especially stores located near to gyms and sports facilities,” Stanton suggests. “These are taken just before a work-out or other sports activity and are best located at till point in their shelf-ready packaging to maximise visibility and drive impulse purchases.”
The pre-workout shot category is expanding rapidly, with a 176 per cent growth rate in the UK. Optimum Nutrition leads this segment with a commanding 66 per cent market share (rising to 80 per cent in the Impulse channel) and an exceptional 530 per cent YoY growth rate [Circana].
Bearing in mind the wide range of different sports nutrition shoppers, Stanton advises retailers to cater to multiple different shopper missions including impulse, planned and food-to-go.
“Protein bars, protein shakes, and pre-workout shots are essential for stores located near gyms or other sports facilities, as shoppers will plan to visit either before or after their training session,” he says.
“High-protein foods are trending. Retailers with a food-to-go offering should include protein bars and shakes as part of their meal deals; to give options to the shoppers looking to ensure they eat enough protein.”
Kerry Cavanaugh, General Manager for Mars Chocolate Drinks and Treats (MCD&T), emphasises the brand’s commitment to making protein products more accessible.
“Our mission has always been to simplify a complex market, and bring new users to the category through the familiarity of our brands and trusted taste,” he comments.
“In terms of growth, protein supplements remain the fastest growing segment of the protein market with a projected CAGR of seven per cent between 2024-2029 in the UK [Mordor Intelligence], and this is where our focus remains for Mars-branded protein products.”
“As the market grows, the consumer is increasingly looking for increased quality and innovative flavours,” Cavanaugh says. “Snickers Low Sugar Dark and Snickers Low Sugar Hazelnut officially launched in at the end of 2024, appealing to both core Snickers fans and regular protein bar users attracted to range with a range of innovative flavours.”
Snickers Hi Protein Low Sugar Dark offers 20g of protein while retaining the classic combination of caramel, nougat, and peanut flavours, all wrapped in a rich dark chocolate coating. At just 215 calories per bar, it delivers indulgence without excess sugar. (RSP: £2.79)
For those looking for a nutty twist, Snickers Hi Protein Low Sugar Hazelnut provides the familiar caramel, nougat, and peanut flavours with a hazelnut infusion. Packed with 20g of protein and just 221 calories per bar, it offers a satisfying and nutritious snack. (RSP: £2.79)
Rise of protein snacks
The demand for high-protein and functional snacks is surging year-on-year as consumers seek healthier, convenient options to fuel their busy lifestyles. Protein-focused snacks have become a staple for health-conscious consumers looking for nutritious options that don’t compromise on taste. The trend shows no signs of slowing, with forecasts predicting steady expansion over the next five years.
Matt Hunt, founder of The Protein Ball Co., notes that consumers are “leaning toward clean-label, minimally processed options” that deliver both nutrition and taste.
“Plant-based proteins and sustainable packaging are gaining traction, alongside functional benefits like gut health and energy-boosting ingredients. Over the next year, we expect these trends to deepen, with continued emphasis on transparency, innovative formats, and products that cater to diverse dietary needs,” Hunt adds.
He credits all-natural recipes and accessible formats for their brand’s strong performance. “We’re proud to say that our sales continue to outpace category averages, driven by strong customer loyalty and our commitment to quality,” he says.
The Protein Ball Co multipacks
As more consumers start to look for protein snacks that don't contain unnecessary ingredients, Protein Ball Co looks to expand their presence in the convenience channel with tailored POS materials, exclusive product bundles, and flexible order quantities for independent retailers as well as strong relationships with wholesalers.
“Our goal is to make it easy for smaller outlets to showcase our products and drive repeat purchases,” Hunt says.
“Our advice: position high-protein snacks prominently near checkouts or in health-focused sections, and leverage our marketing materials to tell the brand story and highlight the nutritional benefits that resonate most with your customers.”
The brand is set to launch its new product lines later this year, including their highest protein packed snack to date along with a wellness range. These additions will be supported by a comprehensive marketing campaign, spanning social media, in-store promotions, and sampling programs.
TREK, the UK’s number two protein bar [Circana, 52w/e 07.09.24] and one of the fastest-growing brands in cereal and sports nutrition bars, is shaking up the snacking market once again with the TREK Biscoff Protein Flapjack – a bold and irresistible new launch that’s set to dominate shelves in 2025.
Launching hot on the heels of TREK Power Biscoff, which has so far achieved more than £3.9m in sales, TREK is turning proven momentum into further brand and category growth. TREK Power Biscoff became the number one launch in the Cereal and Sports Nutrition Bars category for 2024 [Circana, YTD 30.11.24]. Now, the brand has big ambitions to once again deliver the best-selling bar launch with TREK Biscoff Protein Flapjack.
The new launch brings the iconic taste of Biscoff to the Protein Flapjacks range that TREK is famous for, accounting for 77 per cent of its total brand sales.
TREK unveils new Biscoff Protein Flapjack
TREK Biscoff Protein Flapjack sees the classic TREK oat flapjack with 9g of plant-protein that shoppers know and love, smothered with a generous thick and creamy layer of unique Biscoff topping. All this is wrapped up in a convenient on-the-go bar for natural energy that keeps you going.
“This is THE launch that everyone’s been waiting for. TREK and Biscoff are an unstoppable combination that shoppers just can’t get enough of. With over 1.7 million TREK Power Biscoff bars already sold – that’s every minute – we knew extending Biscoff to our iconic Protein Flapjacks was the next big move,” Alice Boardman, Marketing Manager at TREK, says.
“Our Power range, which provides shoppers with 15g of protein per bar, is incredibly popular, but even more so are our Flapjacks – which remain our core sales driver, delivering strong growth of nearly +£1m YoY.”
To cater to at home and on-the-go occasions, the new launch will be available as a 50g single bar, as well as a 3x50g multipack. Plus, to maximise visibility, the launch will be supported by a high-impact multi-channel campaign across in-store, PR, digital, social, out of home, and influencer marketing, with hotly anticipated sampling stock drops in various locations.
TREK will also be amplifying the launch across key brand partners over the coming months to drum-up visibility even more, including its ongoing partnership with Saracens.
TREK Biscoff Protein Flapjack launches on the back of TREK achieving £30m in retail sales value for the first time – a milestone driven by double-digit growth of 12 per cent [Circana] and the success of TREK Power Biscoff. The brand is expecting an even better year of growth with its newest addition.
TREK Biscoff Protein Flapjack will roll out grocery-wide from April. The new product will also be available in the wholesale and convenience channels.
Meanwhile, meat-based protein snacks like jerky and biltong are among the fastest-growing snack categories in total grocery, now worth over £40 million in retail sales value. Shaun Whelan, Convenience/Wholesale and OOH Controller at Jack Link’s, highlights that this segment has doubled in value over the past five years, yet still holds significant growth potential as fewer than 10 per cent of households currently purchase these products.
Jack Link’s has positioned itself as the category leader, tripling its retail sales value over the last five years. Jack Link’s Beef Jerky Original 25g has the highest unit rate of sale in the category, offering a smaller, entry-level product to attract new buyers.
“In the last year Jack Link’s has grown its sales in value and volume making Jack Link’s a high growth opportunity retailers cannot afford to miss,” Whelan notes, adding that the brand’s growth is fuelled by increasing consumer awareness of high-protein snacking and a commitment to quality.
“More shoppers are searching out high protein, tasty meat snacks as healthier alternatives to traditional crisps and confectionery for their lunches and to enjoy across the afternoon. Many shoppers see meat protein snacks as the best source of protein to give them energy,” he explains.
Jack Link’s products, made from 100 per cent lean beef, offer a naturally lean, high-protein, low-fat and low-calorie snack, making them ideal for on-the-go snacking across various occasions, such as at home, at work, or post-gym.
“We believe the on-the-go market is increasingly important to time-poor shoppers,” Whelan says. “The nature of Jack Link’s makes it ideal to be consumed across the day, and is especially popular in the afternoon, as people enjoy the several pieces of meat in each pack that provide a tasty chew between meal times and give them energy.”
Retailer Paul Stone of SPAR Oxford Road in Manchester says Jack Link’s range has driven incremental sales and profit
Jack Link’s range includes classic options like Beef Jerky Original and innovative flavours like Sweet & Hot and Teriyaki, catering to diverse tastes. The former delivers an irresistible combination of sweet and spicy, while the latter has savoury soy sauce and a touch of ginger to give the meat a fruity Asian flavour. Other offerings include Biltong and Ham Snack, made with premium meats and no added sugar.
Their products cater to a predominantly male audience aged 16–45 with active lifestyles, making them a perfect fit for gym-goers, sports enthusiasts, and gamers.
“These shoppers value high protein snacks for energy and are willing to pay a premium for quality products,” Whelan notes.
Jack Link’s invests £1.5 million annually in media campaigns, including sampling at festivals, social media promotions, and esports sponsorships (e.g., Fnatic). The brand connects with influencers and targets millennials and Gen Z through platforms they frequently use, like social media.
Jack Link’s recently redesigned its packaging following extensive research and feedback from customers. The new design created for both the Beef Jerky and Biltong promotes the high-quality aspect of the product, reflecting category trends in craftmanship and functional nutrition benefits in a contemporary and appetising way.
“The redesign reflects our commitment to providing our customers with exceptional products, increasing standout on shelf so shoppers can find them easily in store, therefore driving sales for retailers,” Whelan says.
Hydration boom
The energy and sports drinks market in the UK is experiencing unprecedented growth, with brands capitalising on shifting consumer preferences and increased demand for functional beverages. From AG Barr’s Rubicon RAW and Boost’s expanding portfolio to the high-profile UK launch of Celsius, the category is more competitive and innovative than ever.
Energy drinks now constitute the second-largest and fastest-growing category in soft drinks, contributing nearly half of all drink-now soft drinks growth. Fruit-flavoured energy drinks, in particular, are outperforming non-fruit varieties, growing at twice the rate [Circana].
“Summer is a key period for the category, as we see an influx of energy switches come from fruit juices throughout the summer months,” notes Adrian Hipkiss, Head of Energy Brands at AG Barr.
Rubicon RAW has emerged as a standout performer in the category, growing five times faster than the total energy drinks market and three times faster than its nearest competitors. With 20 per cent fruit juice, natural caffeine, and B-vitamins, it caters to consumer demand for more natural and functional options.
In response to the ongoing trend of mixed flavours, Rubicon RAW recently launched a 12-month limited edition range of 500ml Big Can drinks, featuring two new variants: Berry & Grape and Peach & Apricot.
“Both new flavours performed exceptionally well in consumer research with 85 per cent of shoppers saying they would buy the range,” Hipkiss says.
The launch will be supported by the brand’s biggest ever marketing investment of £1.5 million throughout 2025. Influencer activity, mass sampling and heavyweight social media will see it reach two-thirds of Big Can energy drinkers.
Despite its remarkable performance, Hipkiss notes that the energy category still has significant untapped potential, as 60 per cent of shoppers have yet to engage with energy drinks and traditional energy drinks aren’t always seen as appealing for new shoppers.
“We’re proud to be one of the best-performing ranges in energy, recruiting more shoppers than competitor brands and delivering a 75 per cent repeat purchase rate,” he comments. “Our two new flavours, alongside our core five, offer something truly different as we appeal to a much broader base of consumers with different energy needs.”
Retailers can make use of the brand’s vibrant, eye-catching point of sale material to create in-store theatre and attract shoppers to the fixture and drive their sales.
One of the most significant recent developments in the UK energy drinks landscape is the arrival of Celsius, the fastest-growing energy drink brand in the US, with sales exceeding $2.7 billion. Celsius has now set its sights on the UK market, and this month marks the beginning of the brand’s wider launch across major grocers, independents, and convenience stores, taking the brand’s high-performance energy nationwide.
“We’re thrilled to see Celsius expanding across the UK. The response has been incredible, and we’re just getting warmed up. With over 50,000 points of distribution, this nationwide presence puts Celsius in front of even more customers. Watch this space as we continue to grow and redefine the energy drink market,” said Carlotta Cattelani, Head of Marketing, UK & Ireland at Celsius.
CELSIUS heats up energy drink market
Celsius positions itself as more than just an energy drink – it promotes a “Live Fit” lifestyle, aligning with the growing consumer focus on wellness. The brand’s success stems from its functional benefits, featuring key vitamins such as Vitamin C, B12, B6, and B5 to support immune health, reduce fatigue, and provide sustained energy. Importantly, Celsius contains zero sugar, making it an appealing choice for health-conscious shoppers.
The brand’s launch in the UK includes four vibrant, fruit-forward flavours: Peach Vibe – a sweet and refreshing peach flavour, Fantasy Vibe – a tangy and citrusy, orange-based drink, Cosmic Vibe – an out of this world flavour with exotic, sweet notes, and Sunset Vibe – a combination of tropical mango and passionfruit flavours.
“Celsius is already generating huge momentum in the health and fitness channel and we’re ready to take that momentum with this exciting brand to even more customers and consumers across the UK,” Alpesh Mistry, Sales Director at Suntory Beverage & Food GB&I, which distributes the brand in the UK, comments.
“Stimulation continues to grow rapidly and we have huge ambition to make the USA’s fastest growing energy brand the UK’s fastest too.”
Celsius’ entry into the UK market is backed by a strong marketing push, including collaborations with high-profile ambassadors, F1 partnerships, and immersive brand activations.
Sports drinks win
The sports drinks category has rebounded strongly post-pandemic, growing by an impressive 74 per cent over the last three years in the convenience channel [Circana], with a rapid rate of sales. Boost Sport has solidified its position as a leading player, achieving 36 per cent YoY value growth and ranking as the number two sports drink brand in volume sales.
Consumer purchasing decisions in this segment are driven primarily by taste and value, Hipkiss notes, making these critical considerations for retailers.
“Taste is the most important factor for consumers when choosing sports drinks. It’s essential that retailers stock a sports drink offering that takes the ‘taste’ and ‘value’ drivers into account to effectively maximise sales from impulse shoppers,” he says.
“This also offers retailers a chance to connect with their core audiences, thereby enhancing sales rates to their maximum potential.”
Hipkiss expects a continued surge in popularity for drinks that offer more than just hydration this year.
“Functional drinks, beverages that offer additional health benefits from gut-healthy kombucha to CBD-infused sodas, is a market trend that is rapidly expanding and diversifying. However, the claimed benefits of these drinks can be broad and varied, leading to a wide range of consumer preferences,” he notes.
While the variety of functional claims can be broad, the underlying trend is clear: consumers want drinks that support their active lifestyles.
Boost has been at the forefront of this evolution, continuously innovating within the category. In 2023, the brand launched a limited-edition Raspberry & Mango isotonic sports drink, which has since been permanently incorporated into its core range after outperforming expectations with 170 per cent above forecasted sales.
“With Mixed Fruits and Tropical flavour profiles accounting for over 60 per cent of category growth the combination provided a guaranteed way for Boost to shake up the Sports category in an exciting and unique way,” Hipkiss comments.
Building on this momentum, Boost recently introduced another limited-edition sport variant: Watermelon & Lime. The flavour fusion trend continues to gain traction, and limited-edition releases generate excitement among consumers while encouraging trial and repeat purchases.
Health-conscious consumers are increasingly opting for sugar-free alternatives, driving significant growth in this subcategory. Sugar-free energy drinks have seen a 23 per cent YoY increase in sales, with one in three shoppers now choosing these lower-calorie options [Circana; Cousins Davis U&A Research].
Recognising this shift, Boost expanded its Sugar-Free Energy range with two new flavours: Tropical Blitz and Apple & Raspberry. These additions complement Boost’s existing Original Sugar-Free Energy SKU and reinforce the brand’s commitment to offering innovative, great-tasting products with reduced sugar content.
The broader energy drink segment has also seen flavour-based innovation play a key role in growth. Flavoured energy drinks now account for 32 per cent of total energy stimulation sales, representing a 28 per cent year-on-year increase.
“Boost aims to fulfil this increasing consumer preference with the launch of these unique flavours that offer variety and innovation to its Sugar Free Energy range,” Hipkiss says.
“These ranges underscore Boost's continual dedication to offer retailers the opportunity to communicate great value on fixture vs. the major multiples, in line with its Honest Broker approach that underpins Boost’s commitment to being a transparent and collaborative partner to wholesalers and retailers.”
With the arrival of spring and a collective focus on fitness, the demand for protein-rich foods and drinks is set to spike even further. Retailers who strategically stock and position these products stand to gain significantly from this trend.
From mini-cab driver to award-winning retailer, Amarjit Singh Rakhra's journey epitomises the entrepreneurial spirit that defines Britain's independent retail sector. But what sets him apart isn't just his business acumen – it's his unwavering commitment to community service, deeply rooted in his Sikh faith and values.
Rakhra, who won the Spirit of the Community Award at the 2024 Asian Trader Awards, operates eight stores across London and surrounding areas through his family business. His latest venture, the Budgens Pomeroy Street store in Peckham, opened in November 2023, exemplifies his innovative approach to community engagement.
Serving more than customers
The store's unique feature is its upstairs space – approximately 900 to 1,000 square feet dedicated entirely to community use. The facility includes modern amenities such as air conditioning, free wi-fi, desks, and comfortable seating, along with a lift and a toilet.
“I felt the need that the Afro-Caribbean origin families do not have that much support from this community, and generally, and I wanted to keep some space for them to come and work here,” Rakhra explains, describing the cramped living conditions of many local families, who live in small flats.
“They have got five, six people living in those one-bedroom, two-bedroom flats. People don't have enough space to sit and study, to sit and do work. This is a space for them to come out and have a break from siblings or somebody else and do what they need to do in peace and quiet.”
Community space above the Budgens Pomeroy Street store in Peckham
Upstairs is open to all from 7am until 5pm, operating as a community workspace, and in the evening, it transforms into a well-being centre, hosting various community activities.
“Lots of young kids come to study there,” he says. “After five o'clock, we use upstairs area again for the community, for yoga, for music classes, tutorials. So, people come and use that space till nine, ten o'clock.”
Most remarkably, Rakhra offers this facility without seeking profit, despite the costs involved.
“If you're a yoga instructor, you bring in 10 of your clients, and you charge them £10 for one hour. As a business, I'm saying you keep all £100. We don't want you to share that £100 with us, because we have got almost 3000 square feet downstairs to do our business,” he says, explaining his philosophy of community support.
“The reason we are doing all of that for the local community is that my needs are financially a little less now, because my kids are educated. They are professionals, my daughter is a dentist, and my son is a pharmacist. So, we thought this will be the right time to do something for the community.”
Humble beginnings
Born and brought up in Delhi, Rakhra came to the UK in 1985, starting as a mini-cab driver before finding his feet in retail. Together with his wife, Pritpal, he opened his first store in Covent Garden on 4 August 1992, a date etched in his memory not only for business but for personal reasons too – his daughter was just seven days old!
Pritpal, born and raised in the UK, was a banker until she gave up her job after their son’s birth in 1990. The couple’s strong partnership in business has helped shape their success. “She is equal partner in the business,” Rakhra says.
Budgens Pomeroy Street store in Peckham, London
Their first store in Covent Garden was a stepping stone, and over the years, the portfolio expanded to ten stores at its peak. While some leases were not renewed, they now manage eight stores, six in London, and one each in Rickmansworth and Hemel Hempstead, employing over 60 people.
The decision to operate multiple stores was driven by Rakhra’s desire for growth and employment generation. “The best way to help the community is by promoting employment as well,” he says. His Sikh faith plays a central role in this ideology. “We believe in sharing. But if we are only sharing food, like we do from our Gurdwaras, after four hours, you're hungry again. The best thing is to provide employment, so people can buy their own food.”
Supporting local producers
A firm advocate for local businesses, Rakhra prioritises working with small, family-run suppliers. He sees this as a crucial alliance between independent retailers and local producers.
“If they go to the big supermarkets, they squeeze their margins to that limit, they can't survive,” he explains. “With us, they can supply us small quantities, and they don't need to store big, they don't need to have big storage.”
This mutually beneficial relationship is central to his business ethos: “We should tell all small retailers to support the small producers and small suppliers. I think this is a must have, because if we are looking for help, similarly, they need some help as well.”
This support for local producers is evident in his supplier selection process. “The first thing I look for is if it is a family business,” he says. “If it is a family business, a small husband and wife team, I'm 50 per cent inclined towards them anyway.”
His stores stock specialist products, ranging from juices to nuggets to chocolates, from small-scale suppliers.
Inside the Budgens Pomeroy Street store in Peckham
“The business is not as great as it used to be because of the competition from the big boys, Tesco, Sainsbury's, they are coming into the local community now, opening up small stores. They are making our life very difficult,” he admits, but remains optimistic about overcoming the challenge.
“We have to come up with different ideas,” he says. “And we have survived so far, and we will carry on fighting our grounds.”
He believes that initiatives like his could help generate customer loyalty across the sector. “If other retailers join in with the same mindset, we can create that. They should support small businesses in the local communities rather than big businesses.”
Navigating economic pressures
Financial struggles have also led to a rise in shoplifting, which blights stores across the country. “Shoplifting is a big deal right now. We are suffering in our stores with the shoplifting a lot,” he says
While some incidents may be examples of organised crime, he believes it often stems from financial hardship. “If you're in a housing estate, the social security money hasn't gone up as much as the prices have gone up. So, when you're short of cash, of course, that brings the worst out of us,” he notes. “People are feeling that.”
The economic pressure is also affecting consumer behaviour in unexpected ways. At his Organic Village Market store in Dulwich, south London, which houses a refill station, Rakhra has noticed a shift in customer priorities.
“When we started the refill station, it was doing very well. People are looking for cheaper options now. People are not really as much as bothered as they were bothered three, four years ago, about the plastic use,” he explains.
The demand for refill products has declined by 15-20 per cent, as customers prioritise value for money over environmental concerns. “Right now, people are looking for anything and everything cheaper, value for money, that's what they're looking for,” he notes.
Despite these challenges, Rakhra maintains his commitment to community service, drawing inspiration from his Sikh faith.
The Budgens Pomeroy Street store hosts various community activities
“It is in our religion, it is in our DNA, in a Sikh community that we have to help the community,” he explains. “This is what my son sees. This is what my grandson sees. My grandson is two and a half years old, and he goes to the local temple every Sunday, and he washes dishes there for one hour in the community kitchen. So, this is what we do.”
His commitment to community service extends beyond providing space. Rakhra has set himself an ambitious goal: “I will feel very happy if I can help five families to send their children to top universities, from the Budgens store in Lewisham area where the Afro Caribbean community is,” he shares.
“If I can achieve that, I will feel so much satisfied, because nobody in the history of their families has ever been to university.”
To achieve this, he and his children are helping students with university applications, personal statements, and interview skills.
“My kids have been to top universities in the country. They know the system, how it works, and they will support them with their personal statements and with their interview skills,” he explains.
Looking ahead
The immediate future for Rakhra is about resilience. “Next is just carry on doing what we are doing and just try to get through this difficult time.” He remains hopeful that an economic recovery will allow for future expansion.
“If this new government does something differently and the economy bounces back and people start feeling better, then we will look at the extension plans,” he says.
The workspace includes modern amenities such as air conditioning, free wi-fi, desks, and comfortable seating, along with a lift and a toilet
His highest achievement, he says, is not just business success, but what it has enabled him to do. “I was able to educate my two children, and they are not burden on the society now. They are self-sufficient. They can help the community. They can help society.”
For other independent retailers, his advice is simple yet profound: “Work with the community, not against the community.”