Snacking remains a huge part of day-to-day UK life, with the average consumer snacking five times per day1. Within the convenience channel, Crisps & Snacks have continued to be a critical sales driver for retailers. Over the last five years, savoury snacks have delivered consistent value growth of +2.4 per cent2, with Crisps & Snacks being the second biggest segment at 44 per cent of snacking occasions3.
The savoury snacking category also performed well throughout the pandemic, with one in 12 baskets4 containing some type of savoury snack. Trips to convenience stores for savoury snacks are in growth year on year at 6.4 per cent5 and performing ahead of other Food & Beverages & Sweet Snacking6. Post pandemic, Convenience has also performed well: +6.8 per cent vs year ago, +3.4 per cent vs 2020 and +5.1 per cent vs 20197.
For retailers, this means the category is well positioned for growth. There is a real opportunity for retailers to capitalise on this and to see greater returns from savoury snacking, and our HERO 25 range of bestselling SKUs is perfectly positioned to help retailers maximise their Crisps & Snacks sales.
PepsiCo’s brands are iconic favourites for flavour and fun – but they were also in the crosshairs of HFSS. What has PepsiCo done to deal with the new rules and what advice does it offer?
There has been a lot of confusion concerning the upcoming HFSS rules, particularly regarding which regulations will be in force in 2022 and the impact upon retailers. Due to the legislation rules around number of employees and store size, our estimates show that the Convenience channel won’t be affected as much as Grocery. The majority of Convenience stores will likely be unaffected at this stage, especially since the government has delayed the promotional restrictions until Oct 2023.
There are a relatively small number of C-stores >2000sq ft and >50 employees (we estimate 20 per cent if looking at total convenience channel (excluding Tesco Express, Sainsbury’s Local, Little Waitrose & Coop) or 10 per cent if looking at Symbols & Indies, who will have to make changes to the location of Crisps & Snacks (outside of the main fixture) from October 2022. This represents a great opportunity for retailers to continue providing a balanced choice of savoury snacking options, catering to shopper demand for great-tasting products while also making gradual changes to meet rising needs for health.
The good news is that the Savoury Snacks Category is well positioned to adapt to the changing requirements through reformulation, and we are well prepared to support retailers through this transition. As part of our commitment to encourage shoppers towards healthier snacking choices, we will also be reformulating and innovating across our portfolio. The key to encouraging shoppers towards healthier choices will be providing a strong range of HFSS compliant savoury snacks that can complement existing core bestsellers, helping retailers to offer Taste and Health in order to deliver great returns for store owners.
What are your HFSS recommendations for retailers?
The key thing to remember for stores impacted by locations restrictions is that non-HFSS products can be placed anywhere in-store and can be merchandised where HFSS products were previously located.
For example, if you previously had a stand of Walkers Cheese & Onion this could be replaced with Walkers Oven Baked Cheese & Onion. The Walkers Oven Baked range is an ideal option for retailers, with the brand well-established and already popular amongst consumers, as proven by brand growth of +26.4 per cent vs year ago8. The range includes 2 of the top 3 SKUs within the ‘Better For You’ segment; Walker Walkers Oven Baked Cheese & Onion 37.5g, which is the number 1 SKU and Walkers Oven Baked Ready Salted 37.5g, the number 3 SKU.
It’s worth all retailers remembering that it is still permitted to stock core bestsellers and locate these in the main fixture. For affected stores, it is only the location of HFSS products in the restricted “off-shelf” location zones that is forbidden and instead would be replaced by non-HFSS alternatives. As a result, best-selling savoury snacks are still the priority for Main Fixture. In fact, 75 per cent of sales come from Main Fixture so this area remains a great sales driver for retailers looking to maximise category sales9.
How does HFSS address consumer health needs?
Our latest consumer research shows that enjoyment and health are both primary needs present across all occasions10. As we build towards HFSS regulations coming into force, we’re expecting there to be a growing demand from consumers and further requirements for healthier snacking choices. Retailers should therefore continue to stock their best-selling Crisps & Snacks, while starting to gradually introduce new products that offer health, flavour and enjoyment without any compromise. As part of our wider ambition to encourage consumers towards healthier choices, we’re set to add a number of reformulated products to our core range in this channel, with taste-led launches across some of the UK’s most loved brands.
We have a long track record of bringing lower-calorie, lower-fat and lower-salt options to our products. Having been leaders for such a long time in this space, we welcome the new HFSS regulations and the spirit in which they were created. With a portfolio that includes some of the biggest brands within the savoury snacks category, we are excited to embrace this opportunity and drive scale growth for the category.
As part of part of PepsiCo Positive (PEP), our strategic end-to-end transformation plan with health and sustainability at the centre, we have announced an ambitious 50 per cent sales target for healthier or lower-calorie products. With 30 per cent of sales coming from non-HFSS snacks and an additional 20 per cent for snacks that are 100 kcal or less, this will shift our portfolio in a way that gives consumers the chance to continue making smart snacking choices.
Can you explain the PEP Strategies for Growth?
We do expect the overall demand for snacking products that meet expectations of both enjoyment and health will only grow over the next five years and beyond. Coupled with brand as the number-three product choice driver11, we’re excited about the chance to work alongside the retailing community to drive sales of products that tick all of these boxes. Overall, though, the strategy for growth in Crisps & Snacks has to be by using a balance of HFSS (core range) and non-HFSS offerings. To balance this transition carefully, and avoid sacrificing sales of core best-sellers and overall sales, retailers should look to follow this advice:
Drive availability & space of best-sellers in the main fixture
Looking at value sales rankings over the year, 250 SKUs deliver 80 per cent of sales12, out of approx. 3000 live SKUs available, so it is important to list SKUs that will sell through quickly and deliver the biggest cash return (with a combination of high POR and high rate of Sale).
We know from our Convenience path to purchase research that 75 per cent of Crisps & Snacks Conversion13 (purchases) comes from main fixture so this is the most critical selling space to get right because it is the destination in-store.
Tip: The majority of space in main fixture should be dedicated to best-selling core range. Continue to rationalise low rate-of-sale products or duplicates, and replace with additional facings to core best-sellers or taste-led HFSS-compliant innovation.
Drive impulse purchases from the high traffic locations in-store e.g. Front of Store, Aisle Ends, Queue Systems, Till Points
Our path to purchase convenience research shows that 25 per cent of Crisps & Snacks conversions14 (purchases) come from other touchpoints in-store and shoppers are twice as likely to buy on impulse vs planned in Convenience vs total channel. In addition six out of 10 purchase decisions15 take place in-store and are influenced by seeing the product on display.
Top Up & Distress missions performed particularly well in this channel (+7 per cent 2021 vs 2019)16 during lockdown and there could be further opportunity for Impulse to take a greater share of these missions in the future by making sharing and multipacks more visible.
Tip: Existing core range can still be displayed in all parts of the store for the majority of retailers in this channel. It is only in a small number of stores where HFSS compliant Crisps & Snacks (those with an NPM score of less than four) need to be displayed.
Taste-led healthier innovation is critical for long-term growth
Products that do not deliver against taste are unlikely to last the distance in this channel and may not deliver a competitive rate of sale. This is because enjoyment and taste is the biggest consumer need in 32 per cent of Impulse snacking occasions17 and even more important in Convenience than large grocery stores. Taste is the #1 product choice driver18.
Tip: When HFSS legislation goes live, retailers should make considered choices about whether all HFSS compliant products deliver against taste needs and assess the rate of sale the same as they would any new product.
We recommend starting with brands that are well-known to shoppers with a proven track record of delivering great taste. New products should ideally supplement core best-sellers and we recommend retailers replace tail products that deliver the lowest returns.
How can independent retailers best prepare their ranges and merchandising for BNI sales and attract more customers? What would your ideal store look like?
With shopper missions continuing to evolve, it’s never been more important for retailers to follow the needs of their shoppers and merchandise their ranges accordingly. Our research finds that 20 per cent of retailers intend to re-merchandise their savoury snacks fixture19, with one third planning to maintain a wide range of multipacks and large sharing bags20 and another third planning to increase the number of single packs21.
We can clearly see that retailers are taking the lead in adapting their ranges based on the needs of their shoppers. Through our portfolio of leading brands, we offer retailers savoury snacking options in a range of formats to help cater to their shoppers’ needs. Our Walkers DRIVE 25 range was created with medium and larger stores in mind that have the capacity to offer their shoppers a broader range of savoury snacks, featuring a mix of formats which can be adapted to suit individual retailers’ requirements.
1 PepsiCo Consumer Landscape study 2021 (Bolt) – All macro Snacking UK
2 AC Nielsen Total Impulse 5 Year CAGR MAT 23/4/2022 – Total Savoury Snacks
3 PepsiCo Consumer Landscape study 2021 (Bolt) – All macro Snacking UK
4 Kantar – Aggregated On the Go and Take Home Panel – MAT to 22/3/2022
5 Kantar – Aggregated On the Go and Take Home Panel – MAT to 22/3/2022
6 Kantar – Aggregated On the Go and Take Home Panel – MAT to 22/3/2022
7 AC Nielsen Total Impulse Crisps, Snacks, Nuts MAT to 23/4/2022 – CSN
8 AC Nielsen Crisps, Snacks and Nuts – MAT 23/4/2022 Total Impulse Value Sales Walkers Oven Baked brand
Britvic, the soft drinks manufacturer set to be acquired by Carlsberg, has posted robust annual results after investment in marketing and product innovation helped it maintain demand for its brands.
Over the year to Sept 30, the company’s pre-tax profits climbed 10.5 per cent to £173.2 million despite a £21.3m hit related to the proposed Carlsberg deal. Britvic stated that its growth was driven by both volume and price-mix, with strong demand for brands such as Pepsi, Tango, Lipton, MiWadi and Ballygowan.
The group noted that scaling up new brands such as Plenish, Jimmy’s, Aqua Libra, and London Essence helped it build its presence in fast-growing categories. Meanwhile, it increased advertising and promotional (A&P) spend by 30.9 per cent to “support long-term brand growth”.
Volumes grew 3.1 per cent, driven by both organic growth and the acquisitions of the Extra Power and Jimmy’s brands.
Chief Executive Simon Litherland said, “We have delivered another excellent financial performance this year, with strong growth across our markets and portfolio of market-leading brands. We have also continued to ensure the business is fit for the future, adding more capacity, investing in our people, and significantly increasing investment in marketing and innovation.
“I am confident that the prospects for our brands and people are extremely positive, and I look forward to them going from strength to strength,” concluded Litherland.
Subject to approval by the regulatory authorities, the £3.3bn acquisition of Britvic by Carlsberg is expected to be completed in the first quarter of 2025.
The Metropolitan Police has identified two new suspects in its investigation into possible criminal offences as part of the Post Office Horizon scandal. This takes the total number of individuals to four as the force also revealed it believes more suspects will be identified as the inquiry progresses.
Scotland Yard said members of the investigation team met with Sir Alan Bates, the leading Post Office campaigner, and fellow victims to update them on the development.
A Met spokesman said: “On Sunday Nov 17, members of the investigating team met with Sir Alan Bates and a number of affected sub-postmasters to provide an update on our progress and next steps, following an invitation to do so.
“Our investigation team, comprising of officers from forces across the UK, is now in place and we will be sharing further details in due course. The team is preparing to contact other affected sub-postmasters soon. While four suspects have been formally identified at this stage, this number will grow as the investigation progresses.”
However, Sir Mark Rowley, the Met Commissioner, has warned it could be years before anyone faces charges because of the “tens of millions of documents” that must be worked through.
Speaking previously on the matter, he said, “I think at the core of this you’ve potentially got fraud, in terms of false documents, if it’s for financial purposes.
“Clearly, we have to prove beyond all reasonable doubt, so really it’s 99.9 per cent, that individuals knowingly corrupted something. So that’s going way beyond incompetence, you have to prove deliberate malice, and that has to be done very thoroughly with an exhaustive investigation.
“So it won’t be quick. But the police service across the country are alive to this and we will do everything we can do to bring people to justice if criminal offences can be proven.”
More than 900 sub-postmasters were wrongfully prosecuted between 1999 and 2015 as a result of the Horizon scandal, in which the faulty computer software incorrectly recorded shortfalls on their accounts. Of these, hundreds of people are still awaiting compensation despite the previous government announcing that those who had convictions quashed were eligible for payouts of £600,000.
Oral evidence at the Post Office inquiry concluded this month.
New research by American Express Shop Small reveals the nation’s top 10 hotspots for independent shops, showcasing the small businesses and the valuable role they plan in their local communities.
American Express partnered with retail experts GlobalData to identify the top high streets for independent shops through ranking factors such as the number of independent outlets, variety of business types, and vibrancy of the high street.
The list also took into consideration the number of Gen Z and Millennial independent business owners (those aged between 18-43) in each location, factoring in how these younger generations are investing in the future success of UK high streets. Across the top 10 hotspots, on average over a third (36 per cent) of all business owners are in these age cohorts.
The research identified bustling St Mary’s Street in Stamford, Lincolnshire, as Britain’s top hotspot for independent shops – scoring highly across all the factors and delivering a unique experience for shoppers.
Britain’s top high street hotspots for independent shops:
St Mary’s Street, Stamford, Lincolnshire
Devonshire Street / Division Street, Sheffield, Yorkshire
Gloucester Road, Bristol
Market Street / Bridge Gate, Hebden Bridge, Yorkshire
Stoke Newington Church Street, Hackney, London
High Street, Narberth, Pembrokeshire
Oldham Street, Manchester, Greater Manchester
Bailgate, Lincoln, Lincolnshire
Byres Road, Glasgow
The Lanes, Norwich, Norfolk
Beyond their contribution to local communities, the research also revealed how living near a vibrant independent high street can benefit home valuations.
Dan Edelman, general manager, Merchant Services at American Express, said, “Small businesses play a crucial role in supporting local economies up and down the country, and it’s pleasing to now see their impact beyond the high street. Through our Shop Small campaign and support of Small Business Saturday we’re proud to be championing and shining a spotlight on the diverse and vibrant independent businesses who help our local communities thrive.”
The research is released ahead of this year’s Small Business Saturday (Dec 7), of which American Express is founder and principal supporter. Small Business Saturday is the UK’s most successful small business campaign. Over the years it has been running, it has engaged millions of people and seen billions of pounds spent with small businesses across the UK on the day, with an impact that lasts all year round.
Michelle Ovens, director of Small Business Saturday, said, “The nation’s 5.5 million small businesses bring incredible value to the UK’s economy, society and communities, and this research underlines the material impact they have in boosting local areas. On Small Business Saturday, and beyond, we are asking the nation to throw their arms around their favourite local small businesses and show them how much they mean to us all and the wider community. Public support is so vital for small businesses, particularly for the next generation of owners.”
Matt Piner, research director at GlobalData, commented on the findings, “Independent shops bring something different to high streets, offering uniqueness and propositions that are finely tuned to the needs of their local communities. As younger generations of shoppers are attracted to their local high streets, so too are shop owners, with a new breed of Gen Z and Millennial entrepreneurs helping to keep them thriving.”
As part of this year’s Shop Small campaign, American Express has pledged £100,000 worth of grants to small businesses. The Champion Small initiative encourages Cardmembers to nominate their favourite independent small business, with 10 set to receive a £10,000 grant. Those who nominate a business will be entered into a prize draw too, with a chance to win one of 50 x £1,000 statement credits.
Shoppers who walk and wheel spend more than those arriving by car, states a recent report, demonstrating the significant economic and social benefits of investing in walkable town centres, challenging traditional views on urban accessibility.
The findings published in third edition of "The Pedestrian Pound Report", recently published by Living Streets, the UK charity for everyday walking, come at a critical juncture for British high streets, with a record number of retail failures in 2022 and a vacancy rate of nearly one in seven by the end of 2023.
The launch of the report is backed by Scotland’s national walking charity, Paths for All, underscoring the need to make walking a central feature of Scotland’s high streets.
“Making high streets and town centres more walkable increases time – and money – spent in those businesses,” says Catherine Woodhead, Chief Executive of Living Streets. “It’s slowly being recognised – the majority (95 per cent) of London’s Business Improvement Districts identify a good walking environment as important to business performance.”
The report highlights encouraging data from Scottish towns, such as Nairn, where public space improvements and community events have significantly bolstered foot traffic. In 2022, a Christmas event in the town drew 7,800 attendees, including 600 new visitors, while a classic car show in 2023 attracted over 10,000, with 80 per cent saying they would return even outside of events.
Kevin Lafferty, Chief Executive of Paths for All, emphasised the broader benefits, “These findings show that when we put people first and make walking and wheeling the easiest, most natural choices, we don’t just get an economic boost – we build communities that are happier, healthier, and more sustainable for everyone.”
The report highlights that 85 per cent of Scottish adults walk or wheel regularly, contributing to both economic and health benefits.
In Scotland alone, the health benefits from walking to work are valued at over £600 million annually in prevented deaths. Community-focused initiatives, such as the Alloa Hub, are proving successful in encouraging residents to travel into town centres, with research showing that 56p of every £1 spent in community businesses stays in the local economy.
The report is timely, with investment in active and sustainable transport cut by £23.7 million by the Scottish Government this September. The Pedestrian Pound provides an excellent case for these vital funds to be restored.
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Home secretary Yvette Cooper speaking at the annual conference hosted by the NPCC and APCC on 19 November 2024
Home secretary Yvette Cooper has announced plans to rebuild neighbourhood policing and combat surging shop theft as part of an ambitious programme of reform to policing.
In her first major speech at the annual conference hosted by the National Police Chiefs’ Council and Association of Police and Crime Commissioners on Tuesday, Cooper highlighted four of the key areas for reform: neighbourhood policing, police performance, structures and capabilities, crime prevention.
The initiatives she announced include:
a Neighbourhood Policing Guarantee to get policing back to basics and rebuild trust between local forces and the communities they serve
a new Police Performance Unit to track national data on local performance and drive up standards
a new National Centre of Policing to harness new technology and forensics, making sure policing is better equipped to meet the changing nature of crime
The home secretary also announced more than half a billion pounds of additional central government funding for policing next year to support the government’s Safer Streets Mission, including an increase in the core grant for police forces, and extra resources for neighbourhood policing, the NCA and counter-terrorism.
In her speech, Cooper said that without a major overhaul to increase public confidence, the British tradition of policing by consent will be in peril.
“I am determined that neighbourhood policing must be rebuilt,” she said, pointing to its decline over the past decade. Cuts to community-based roles have left town centres vulnerable to rising crime and antisocial behaviour, she added.
“Shop theft is up at a record high, street theft is up 40 per cent in a year… Criminals – often organised gangs – are just getting away with it. We cannot stand for this,” she said.
Cooper reiterated the government’s commitment to deliver an additional 13,000 police officers, PCSOs and special constables in neighbourhood policing roles, adding that further steps will be announced in the coming weeks.
The reforms will restore community patrols with a Neighbourhood Policing Guarantee and an enhanced role for Police and Crime Commissioners to prevent crime. The changes will also ensure that policing has the national capabilities it needs to fight fast-changing, complex crimes which cut across police force boundaries.
“The challenge of rebuilding public confidence is a shared one for government and policing. This is an opportunity for a fundamental reset in that relationship, and together we will embark on this roadmap for reform to regain the trust and support of the people we all serve and to reinvigorate the best of policing,” Cooper said.