As the cost-of-living crisis shows no sign of let up, sweet manufacturer Swizzels has introduced increases to its range of price marked packs (PMPs) for the first time in its history.
With over 53 per cent of consumers reducing spending to pay their bills, value-for-money confectionery continues to be a hugely popular choice for shoppers. Research by TWC showed that 78 per cent of retailers agreed that PMPs demonstrate good value for money to shoppers, so are particularly important for retailers to stock in the current economic climate.
Before introducing the changes, Swizzels partnered with The Fed to conduct research among retailers to gauge their views about the future of PMPs.
“Like every other manufacturer, we’re facing increased costs for everything from ingredients to packaging and transportation," said Mark Walker, sales director at Swizzels.
“The research proved invaluable and revealed that 74 per cent of independent retailers view PMPs as extremely important to their business, not least because they are a tangible symbol of value to customers.
“Of the retailers we surveyed, 44 per cent said that the majority of suppliers across all categories had already moved above the £1 PMP. In fact, 75 per cent stated that they saw slightly higher sales or no change, proving that moving above the £1 PMP is a low risk move.
“We also discovered that 60 per cent of retailers were comfortable stocking a higher priced PMP, provided their margins were protected.”
Despite the majority of consumers saying they are reducing their spending, sales of sweets remain largely unaffected with Sugar Confectionery continued to grow 8.9% over the last 12 weeks.
“History has shown that in tough times, sweet sales tend to remain largely unaffected. This is probably because consumers are looking for affordable ways to cheer themselves up," Walker added. "We are confident that the Swizzels brand has built up sufficient affection and goodwill over the years that sales will remain solid.
“We have placed huge value on our relationships with wholesalers and retailers for 95 years, so have thought long and hard about the next steps in the £1 PMP evolution. In order to protect, and in some cases increase retailers and wholesalers margins, we have taken the decision to break the £1 hanging bag PMP on Sugar Confectionery. The new range will have a PMP of £1.15 which will start to appear in wholesalers in the New Year.
“We fully believe the £1.15 PMP offers value for money and will protect consumer trust in tough economic times, whilst at the same time protecting our valued wholesale partners and diligent retailers.”
