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
Local shops will face significant new pressures as a result of today’s Budget, the Association of Convenience Stores (ACS) has warned.
Chancellor Rachel Reeves' budget's impact will be felt unevenly across the UK’s 50,000 convenience stores, with some measures such as business rate relief and the increased employment allowance mitigating costs for smaller independent stores, while providing no help for chains and larger independent businesses.
The key measures for local shops announced by the Chancellor, and the costs for local shops associated with them, are:
National Living Wage to increase to £12.21 per hour
National Minimum Wage (18-20 rate) to increase to £10 per hour
Cost to the convenience sector next year: £7.739bn (increase of £513m)
Employers’ National Insurance Contributions to rise to 15 per cent
Threshold for Employers’ National Insurance contributions to fall to £5,000 per year
Employment Allowance to rise to £10,500 a year
Cost to the convenience sector next year: £397m (increase of £85m)
Retail and hospitality rate relief reduced from 75 per cent to 40 per cent
Small business multiplier frozen for 2025/26
Cost to the convenience sector: £267m (increase of £68m)
Total cost of main announcements (year-on-year difference): £666m
ACS Chief Executive James Lowman said: “The cold hard facts are that the measures announced in the past 24 hours have added two-thirds of a billion pounds to the direct cost base of the UK’s local shops. At a time when trade is tough and operating costs are stubbornly high, this will be challenging for our members to absorb and there will be some casualties on high streets and in villages and estates across the country.
“Not all shops will be impacted the same. The smallest retailers, with low NICs bills and lower rateable values for their shops, will benefit from the welcome increase in the employment allowance and the retention of 40% of the retail, hospitality and leisure business rates relief. Retailers with a larger store, a number of sites or those operating a chain will receive limited benefit from these mitigations, and this will impact their ability to invest and to continue to offer services in the communities they serve.
The following additional measures were announced by the Chancellor in the Budget speech today:
Flat rate levy on vaping liquids from October 2026 of £2.20 per 10ml
Fuel duty frozen and the 5p cut extended for another year
A new commitment to tackling shop theft and funding directed to tackling organised gangs
Lowman continued: “The Chancellor’s commitment to tackling shop theft will be warmly welcomed by our members, but they are interested only in action and in crime against their stores and their colleagues being tackled effectively. We stand ready to help implement a new, and better-funded strategy to stop shop theft, abuse and violence against our members.”
Parliament is to launch an inquiry into delays in compensation settlements for sub postmasters affected by the Horizon scandal.
The newly-formed Business and Trade Select Committee will call ministers, subpostmasters and their lawyers to give evidence next week with a second session to follow in mid-November. The Committee’s chair, Liam Byrne MP told ITV News that there was “definitely a delay” in people coming forward for payment.
“What we’re hearing from subpostmasters is that if there is an argument about how much should be paid out, the first offer is made quite quickly but if there’s a negotiation, that negotiation is dragging.
“We on the committee are going to batter away at this, week in, week out, until it is job done. All of us on our committee are frankly horrified and outraged by how long this has taken and we’re just not going to give up, ” he said.
Sir Alan Bates, the Post Office campaigner and chair of the Justice for Subpostmasters Alliance, is expected to be invited to give evidence. Earlier this month, Sir Alan states that his own claim had not been addressed and that he had written to prime minister Sir Keir Starmer asking for his intervention.
“Like many of the groups, my claim has not been completed. It’s ridiculous. I am one of just many in this position. This is why I wrote to the Prime Minister at the start of October, asking that he instruct the department to ensure that all claims – and I’m talking about in the GLO group, the original 555 – have been completed by March next year," he said.
This comes weeks after the Post Office's outgoing CEO agreed the government is using the company as a "shield" over compensation schemes. Nick Read, who resigned last month, was giving evidence at the Post Office Horizon IT Inquiry for the second day, with a focus on delays to victims' financial redress.
He also admitted that the compensation process has been "overly bureaucratic" and expressed "deep regret" that the Post Office had not lived up to delivering "speedy and fair redress".
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Bacup Wine and Convenience shop, 34 Burnley Road, Bacup.
A Rossendale shop has had a licence bid rejected after repeatedly selling vapes to children and having illegal products on its premises.
Management at the Ibra Superstore at 34 Burnley Road, Bacup, have shown ‘no regard’ for children’s protection and safety, and have insufficient controls for licensing, Rossendale councillors have ruled.
Ibrahim Mohammad, director of the Ibra Superstore, had recently applied to Rossendale Council for a new premises licence. But the borough’s licensing sub-committee rejected his bid after a meeting which heard allegations from the police and trading standards officers.
The Burnley Road shop has been subject to various licensing changes and concerns in recent years. In the past, it was called Bacup Wines.
Ibrahim Mohammad, the applicant, attended the Rossendale licensing sub-committe meeting with his father,Amin Mohammad. Also there was PC Mick Jones, of Lancashire Constabulary, and Jason Middleton of Lancashire Trading Standards. Councillor Bob Bauld attended as an observer.
Mr Mohammad wanted a premises license for alcohol sales and opening hours from 8am to 11pm, seven days a week. He already had a personal licence. He said the Bacup shop would install a CCTV system, keep an incident log and a refusals record, check customers’ ages, display information about staff and give them regular training.
Trading standards officer Jason Middleton said Ibra Superstore Ltd was incorporated as a company in April 2023. Since then, trading standards had received 11 complaints about under-age sales and carried out visits.
Breaches included non-compliant vapes being found which broke a 2ml limit on the quantity of nicotine-containing liquid, no age checks and no information on display.
During one visit, Amin Mohammad tried to leave with a bag containing 10 illegal vapes. In test purchases by trading standards, an ‘Elf Bar’ vape was sold to a 14-year-old by Amin Mohammad and an illegal Hayati Pro Max vape to a 13-year-old by Ibrahim Mohammad. The shop claimed a phone call distracted staff during the 13-year-old’s purchase and illegal vapes came from ‘a man in car’.
Councillors heard different speakers, looked at written reports and also some video footage from the applicant. But they rejected the premises licence bid.
Giving their reasons, they stated: “There was a repeated history and pattern of behaviour regarding under-age sales of age-restricted items, such as tobacco products and vapes to children. You must not sell vapes to anyone under the age of 18. This is a criminal offence which the council takes very seriously.
“It is clear you breached the law by failing a test purchase operation in which you sold an illegal vape to an under-age child. The sub-committee feels that you have no regard to the protection and safety of children.
“The sub-committee feels that there is insufficient management control at the premises. There is no credible system to prevent under-age sales of age-restricted products and no measures in place to avoid harm to children and to prevent crime and disorder
“Therefore, given the number of incidents, the circumstances surrounding the incidents and the fact that the matter involves safeguarding issues relating to young, vulnerable minors, we consider that the seriousness of the incidents and the crimes committed against young children undermines the licensing objectives to prevent crime and disorder, and protect children from harm.”
The shop has the right of appeal to a magistrates court within 21 days of the date of the notice.
SPAR North of England retailer Dara Singh Randhawa’s family store has been awarded £100,000 of free stock after hitting all his targets since moving to the symbol.
Dara and his family, who have their SPAR store in Patrington in the East Riding of Yorkshire, joined SPAR through its association with James Hall & Co. Ltd in August 2023 having taken the decision to maximise the store’s potential.
It is a decision they have not looked back on, with sales increasing by up to 25% and margins also showing significant uplift in the last 12 months.
Key to the store’s improved performance is the complete overhaul of products available in-store, particularly the fresh food range, to better support people who live in Patrington and the surrounding area.
A new store layout and refrigeration, better Food To Go and meal deal options, a coffee machine, and a Calippo slush machine were also installed during a major refurbishment prior to launch.
Dara said: “Our move to SPAR has been excellent. We have seen fantastic sales uplift and the support from the team at James Hall & Co. Ltd has been brilliant. The £100,000 of free stock is the cherry on the cake.
“We have been very impressed with the Price Locked promotions, in particular. These give customers confidence to do bigger shops with us as they see value on our shelves and the products at the same prices for longer.
“At times over the summer when tourists and visitors to the area add trade, we have seen sales £6,000 a week higher than our average. This is against a backdrop of the popular caravan park in the village being closed almost all year.
“We are really pleased with the position we are in, and we will be looking to achieve more in 2025.”
Peter Dodding, Sales Director at James Hall & Co. Ltd and Chairman of the SPAR Northern Guild, said: “Congratulations to Dara and the Randhawa family on hitting their targets and earning £100,000 of free stock.
“We recognise switching brand is a big decision for a retailer which is why this isn’t a gimmick, and we offer this to all retailers who join the SPAR family with James Hall & Co. Ltd.
“As well as our £100,000 incentive, we also offer retailers the chance to achieve up to an additional £5,000 of free stock if they successfully refer a friend.
“These opportunities provide additional motivation to retailers alongside the comprehensive benefits that joining the SPAR brand brings with it.”
James Hall & Co. Ltd is a fifth-generation family business which serves a network of independent SPAR retailers and company-owned SPAR stores across Northern England six days a week from its base at Bowland View in Preston.
The government has on Wednesday announced its acceptance of the Low Pay Commission’s (LPC) recommendations on the rates of the National Minimum Wage (NMW), including the National Living Wage (NLW).
The rates which will apply from 1 April 2025 are as follows:
NMW Rate
Increase (£)
Percentage increase
National Living Wage (21 and over)
£12.21
£0.77
6.7
18-20 Year Old Rate
£10.00
£1.40
16.3
16-17 Year Old Rate
£7.55
£1.15
18.0
Apprentice Rate
£7.55
£1.15
18.0
Accommodation Offset
£10.66
£0.67
6.7
The recommended NLW rate is expected to equal two-thirds of median earnings and to have the highest real value in the history of the UK’s minimum wage. The increase in the 18-20 Year Old Rate narrows the gap between that and the NLW, in anticipation of the adult rate being extended to 18 year olds in future years.
“The government have been clear about their ambitions for the National Minimum Wage and its importance in supporting workers’ living standards. At the same time, employers have had to deal with the adult rate rising over 20 per cent in two years, and the challenges that has created alongside other pressures to their cost base,” Baroness Philippa Stroud, chair of the LPC, said.
“It is our job to balance these considerations, ensuring the NLW provides a fair wage for the lowest-paid workers while taking account of economic factors. These rates secure a real-terms pay increase for the lowest-paid workers. Young workers will see substantial increases in their pay floor, making up some of the ground lost against the adult rate over time.”
Stroud admitted that the data show some signs of employers finding it harder to adapt to minimum wage increases.
“The tightening of the labour market since the pandemic has unwound, but the overall picture is similar to 2019. The economy is expected to grow over the next year, although productivity growth remains subdued,” she noted.
Business secretary Jonathan Reynolds said:
Good work and fair wages are in the interest of British business as much as British workers. This government is changing people’s lives for the better because we know that investing in the workforce leads to better productivity, better resilience and ultimately a stronger economy primed for growth.
The recommended increase in the 16-17 Year Old Rate restores that rate to its original value relative to the adult minimum wage. In line with previous recommendations, the Apprentice Rate will remain equal to the 16-17 Year Old Rate.