The secret weapon of convenience

Price-marked packs (PMPs) have become a cornerstone of UK convenience retail, with seven out of 10 impulse shoppers now opting for them over non price-marked alternatives. This trend, which gained momentum during the pandemic, has only strengthened as both retailers and manufacturers recognise the value of PMPs in today’s challenging economic landscape.

Now, over the course of 2024 and into next year, which has been characterised by an ongoing cost-of-living crisis and rising bills, PMPs have taken on renewed importance, offering shoppers a sense of transparency and value while helping retailers to guard against shopper dissatisfaction. For independent convenience retailers, PMPs represent not just a tool to meet consumer demand, but a strategic advantage, enabling them to compete more effectively against larger chains and win customer loyalty in a highly competitive market.

According to Matt Stanton, head of insight at DCS Group, PMPs offer clear benefits to both retailers and shoppers. “Ultimately, PMPs make things easier for shoppers and for retailers because the price is obvious and clear on pack,” he explains. This clarity plays a crucial role in addressing shoppers’ primary concern during the current economic climate: finding value for money. “Through the cost-of-living crisis, demonstrating value for money to shoppers is the most important factor for gaining share of their spend. Our key recommendation is that if a PMP is available, you will grow sales by ranging it in your store,” Stanton adds.

Matt Stanton

Looking ahead, Stanton believes PMPs will remain essential for independents as shoppers are managing the pressures from the cost-of-living crisis by sourcing and buying products that offer value for money.

“Shoppers are responding to these pressures by shopping across more channels, buying on promotion and switching into private label. By offering PMPs in the independent convenience sector, shoppers are reassured that they are not being overcharged for the brands they know and love,” he points out.

Stanton highlights that PMPs are particularly effective in categories like household and health & beauty, which have a well-established PMP range across many of the major brands and formats. He also highlights the importance of strong in-store displays, noting that “focusing on value with PMPs and strong display space will be a key driver to success in this channel over the coming year.”

In response to the rising demand for PMPs, DCS Group continues to expand its offerings. “DCS Group works closely with the leading household, health, and beauty brands to monitor the effectiveness of the PMP and identify opportunities to introduce new products,” says Stanton. With a Co-Packing division capable of quickly creating new PMPs, DCS is well-positioned to meet market needs and ensure that independent retailers can capitalise on the benefits PMPs offer. Retailers can find their detailed convenience channel core range information and advice at www.CoreRange.com.

Driving snack value

Matt Collins, sales director at KP Snacks, also notes that the PMP format will stay increasingly relevant as the cost of living remains high and consumers continue to be more price-conscious.

“Retailers report that 86 per cent of shoppers are looking for value and deals [KP Snacks/ACS survey, August 2022] and PMPs cater to this trend, offering consumers great value for money and clear pricing which reassures them that they’re getting a good deal. 57 per cent of impulse shoppers buy PMPs [Lumina] with this segment driving £325m in sales within CSN [NielsenIQ],” Collins says.

The KP Snacks PMP portfolio is valued at £129 million, offering a wide range of SKUs that cater to various tastes, occasions, and budgets. From 40p PMPs to £1.25 formats, the portfolio aims to engage a broad spectrum of consumers and drive impulse purchases in convenience stores. “Our mission is always to deliver the right products at the right price points to meet consumer needs and bolster sales for our retailer partners,” Collins says.

Matt Collins

With £1.25 PMPs accounting for 50 per cent of CSNP sales at Independent and Symbol stores, this format alone contributes £322.7 million to the category, growing in value by 6.1 per cent [NielsenIQ].

KP Snacks’ diverse PMP range is a cornerstone of this success, Collins says, noting that six of the 18 £1.25 PMPs in the top 20 best-selling SKUs are KP Snacks brands.

“Our range of large format PMPs is worth £121.4m. The KP Snacks portfolio includes four of the top five best-selling large PMP SKUs, Hula Hoops Big Hoops BBQ Beef, McCoy’s Flame Grilled Steak, Nik Naks Nice ‘N’ Spicy and Nik Naks Rib ‘N’ Saucy,” he says.

KP Snacks is constantly evolving its PMP range to meet consumer trends and retailer needs. Collins reveals that the company’s NPD strategy is informed by category insights and close collaboration with its retailer partners through the SnacKPartners initiative.

KP Snacks launches KP Mini Chips in PMP format

In early 2023, KP Snacks expanded its PMP portfolio with the launch of two new SKUs: KP Mini Chips Salt & Vinegar £1.25 PMP and KP Mini Chips Beef £1.25 PMP.

“Combining the increasingly popular PMP format and classic KP Mini Chips brand, the launch has created a sense of nostalgia, driving shopper engagement,” Collins says.

Similarly, new flavours in the McCoy’s Epic Eats range—Grilled Cheese and Flamin’ Fajita—were introduced earlier this year in 6-packs and £1.25 PMPs. The two new SKUs feature an exciting on-pack promotion offering shoppers the chance to win an epic adventure, including five American road trips.

Something for everyone

The versatility of the KP Snacks PMP range ensures that there is something for every shopper. “Large PMPs are growing in value by 6.1 per cent, and KP Snacks’ large PMPs hold a 37.6 per cent share of the segment,” says Collins. Products like Hula Hoops are particularly strong performers, outgrowing the category with 14.9 per cent growth.

“Where large format PMPs are the ideal choice for a bigger eat and hunger-fill missions, smaller format PMPs offer great value and are an excellent option for daytime snacking and ‘tide me over’ occasions,” he notes, adding that Space Raiders, worth £25.1m, offers the UK’s number one best value brand with tasty Pickled Onion, Spicy, Beef and Saucy BBQ flavours available in 40p PMPs.

Heritage brands such as Discos and Nik Naks are also thriving in the PMP segment. Discos is available in £1.25 PMP and 50p formats in classic Cheese & Onion and Salt & Vinegar flavours. Worth £35m, the Discos brand is growing 14.9 per cent MAT. Available in £1.25 PMPs, the Nik Naks brand is growing 3.1 per cent and is one of the top 10 best-selling large PMP ranges.

In response to the HFSS regulations introduced in 2022, KP Snacks has also focused on offering healthier snacking options. “Available in Barbeque and Sour Cream & Onion flavours, popchips £1.25 PMPs come in at under 100 calories per serving without compromising on great flavour. Worth £45.6m, popchips are a delicious but permissible snack,” he says.

In addition, the market-leading KP Nuts brand, which is exempt from HFSS restrictions due to its natural health benefits, provides retailers with an opportunity to tap into the growing demand for healthier snacks.

Healthier snacking, clear pricing

Susan Nash, trade communications manager at Mondelēz International, also stresses on the focus on healthier products, noting that PMPs can help retailers tap into the growing demand for healthier snacking options, particularly with the introduction of non-HFSS recipes.

Mondelez has rolled out a price-marked five-pack multipack of belVita Soft Bakes Choc Chip, the brand’s top-selling product. This new format is designed to attract value-conscious shoppers while also providing a healthier option.

“With all belVita Soft Bakes flavours now non-HFSS following recent recipe changes which brought Choc Chips and Choco-Hazelnut variants in line with the rest of the range, the new multipack will also help retailers to boost their healthier snacking offering within larger formats,” Nash explains.

Similarly, Cadbury Brunch Choc Chip, the leading healthier biscuit SKU, is now available in a PMP at £1.39 for a multipack of five. This move is aimed at increasing brand visibility and communicating value to shoppers.

“Choc Chip is the number one Cadbury Brunch flavour, which is up by 172 per cent in the independents and symbols channel [Nielsen], and the new PMP will make this bestseller stand out even more on shelf with its clear and striking price point,” she adds.

“PMP sales are currently outperforming standard pack sales in the independents and symbols channel, so this new format from Cadbury Brunch is set to help retailers attract new shoppers and boost sales.”

Shaun Whelan, Convenience/Wholesale and OOH controller at Link Snacks International, makers of Peperami, underscores the importance of PMPs in the protein meat-snacking category.

"PMPs offer shoppers price confidence and reassure them they are not being overcharged. This is important when shoppers are watching what they spend.,” he says, adding that Peperami PMPs are very effective at generating sales. “New PMP £1.25 flashed two for £2 on Peperami sticks offer good value compared to standard sticks, driving value and return on sales,” he notes.

Peperami’s £1.25 PMP range include Original, Hot, Firestick, Chorizo, and the recently introduced BBQ variants.

Peperami’s focus on value doesn’t stop at the shelf. The brand also supports convenience retailers with promotions and case sizes to keep the price points at the recommended retail prices.

Enhancing soft drinks opportunities

Soft drinks are a key category for price-marked packs, providing an essential point of differentiation between independent retailers and larger stores, notes Amy Burgess, senior trade communications manager at Coca-Cola Europacific Partners (CCEP), as she urges retailers to stock market leading brands in a variety of PMP formats – including on-the-go and multipacks – to cater to multiple soft drink occasions.

“Soft drinks PMPs are growing in importance within independent and symbol convenience stores [Lumina]. Our best-loved brands, including Coca-Cola, Fanta, Sprite, Dr Pepper, Monster, Relentless and Reign are all available in PMPs and plain packs,” she says.

One recent highlight from CCEP is the introduction of PMP versions of the Schweppes one-litre PET bottles, which have proven successful in the mixers segment.

n 2024, CCEP continued to innovate with PMP launches, including multipacks for Monster Juiced Mango Loco and Zero Sugar Lewis Hamilton energy drinks. The launch of PMP variants of Costa Coffee’s ready-to-drink Latte and Caramel Latte is expected to help convenience retailers enhance their competitive edge when it comes to the RTD chilled coffee segment.

“And most recently, we launched price-marked packs of our Jack Daniel’s and Coca-Cola alcohol ready-to-drink range to help convenience retailers provide visible value to shoppers and drive sales,” she added.

The 330ml price-marked cans of Jack Daniel’s and Coca-Cola Original Taste and Jack Daniel’s and Coca-Cola Zero Sugar have rolled out across Britain at a price-mark of £2.39.

Britvic’s approach to PMPs is centred on the role these packs play in building shopper confidence and fostering brand loyalty during the cost-of-living crisis. Ben Parker, GB retail commercial director at Britvic, points out that PMPs help reassure shoppers about price fairness: “Stocking PMPs can signal to shoppers that retailers understand the current market challenges and are providing affordable options. In turn, this is a great way to drive further sales opportunities in the soft drinks category, given the current landscape.”

Ben Parker

Agreeing with Burgess, Parker says that retailers can meet these shopper needs and demands by stocking popular brands in a variety of price-marked formats, both catering to different occasions, such as food-to-go and big night in, and signposting value to shoppers.

“For example, soft drinks is the number one category bought on a food-to-go mission, so operators should consider catering to this demand with popular soft drinks in on-the-go PMP formats,” he advises.

“This year we launched Tango Mango in a 500ml PMP format, a great option for shoppers looking for an on-the-go drink which also provides great value. Combining a bold, in-demand flavour with an iconic pack design, Tango Mango creates standout on shelves and in chillers.”

Robinsons, the top-selling squash brand, is available in a 750ml PMP bottle at £1.49, providing great value for family shoppers. For those seeking more premium options, Britvic’s Fruit Creations range is also available in a 750ml PMP bottle format, offering flavors such as Peach & Raspberry and Orange & Mango, at £1.89.

Tango has also recently extended its PMP range to include Tango Apple Sugar Free. Available in a two-litre bottle price marked at £1.99, the PMP is ideal for big night in and at-home gatherings.

In addition to take-home packs, Britvic continues to cater to the impulse nature of energy drink shoppers.

“Retailers can tap into consumer demands by stocking up on popular choices like Rockstar Energy. Available in flavours including Watermelon & Kiwi No Sugar and No Sugar Blueberry, the £1.29 PMP cans not only provide an extensive range of flavours for shoppers to choose from but also offer great value,” Parker says.

Confident energy

Energy drinks are a key driver in the soft drinks category, and PMPs play a crucial role in making these products more accessible to price-conscious consumers. Brand remains one of the core drivers for shopping the category, however price is also a key consideration, ranking number two in importance [Lumina] and sitting front of mind when shopping the fixture.

“Price-marked packs can help to drive rate of sale, with 75 per cent of convenience shoppers more inclined to buy if in a price-marked pack. This is even more relevant in times of financial hardship when shoppers are more careful about what they spend their money on,” says a Red Bull spokesperson.

More than ever, price-marked packs are a key way of helping shoppers to navigate the soft drink aisle in convenience, where the majority of soft drinks are bought on impulse and shoppers are accustomed to seeing price-marked packs in stores. According to Lumina Intelligence, in the 52 weeks to 18 August 2024, 35 per cent of baskets contained a soft drink PMP and 41 per cent of these were bought on impulse.

“For those concerned with margin, Red Bull is the #1 energy drink selling more units than any other brand in the category, presenting a compelling proposition to help drive price-marked packs sales value,” the spokesperson says.

Red Bull holds three of the top five best-selling price-marked Energy Drinks, worth a total of £199m [NIQ]. Red Bull Energy Drink 250ml, has grown +£5.1m vs YA (7.3 per cent) alongside the growth of larger cans. Red Bull Energy Drink 355ml and 473ml are also driving strong growth, +£8.5m (15.3 per cent) and +£8.0m (15.3 per cent) vs YA, respectively.

Sports & Energy is a key sector for price marked packs, delivering £60m in value growth YOY (+7.3 per cent). Within soft drinks, Sports & Energy contributed 65 per cent of all price marked pack growth this year, with Red Bull delivering more than half of this growth, adding £31m in value, +14 per cent vs YA.

“Offering the right range of price-marked packs is becoming more important, as cost-of-living pressures continue. This will encourage retailers and shoppers to spend as customers trust PMPs and feel reassured that they are not being over-charged, as well as giving the impression that the products are on promotion,” the Red Bull spokesperson notes.

Red Bull is also focused on the take-home occasion with the recent launch of a mixed variety pack, available in 4 x 250ml (£5.25) and 4 x 250ml PMC (£5.35) exclusive to the impulse channel. This new multipack includes the original Red Bull Energy Drink along with the Red, Tropical, and Blue Editions, catering to the 88 per cent of Red Bull shoppers who prefer to buy across a variety of flavors.

Value, taste, convenience

Joe Tomenga, business unit controller (OOH) at FrieslandCampina, highlights how consumers have become savvier than ever before whilst also refusing to compromise on taste.

“In line with this sentiment, FrieslandCampina’s PMP formats offer value, taste and convenience by the bottle, and continue to perform extremely well at this time,” Tomenga says.

FrieslandCampina introduced a PMP version of its popular Chocomel 250ml cans last year, priced at £1.69. According to Tomenga, this PMP offering has been instrumental in helping retailers drive on-the-go beverage sales and attract new shoppers to the category, particularly those looking for an indulgent treat at an affordable price point.

Joe Tomenga

In addition to Chocomel, FrieslandCampina's YAZOO brand offers permanent PMP variants across its entire range of core and limited-edition flavours.

“Retailers can stock the flavours and sizes they know sell well in their locale, whilst communicating great value to shoppers and maintaining that point of difference,” he says.

Retailers can choose from the 400ml PMP priced at £1.29, ideal for impulse occasions, or the 1-litre PMP at £1.99, perfect for take-home and sharing.

Innovation is crucial for maintaining shopper interest, and FrieslandCampina has made significant strides in this area with the launch of YAZOO Thick N' Creamy. This new product, introduced as a £1.49 PMP, represents the brand's first major innovation since 2016. Available in two flavours – Indulgent Chocolate and Creamy Strawberry – YAZOO Thick N’ Creamy offers consumers a premium milkshake experience in a distinctive bottle shape.

“This milkshake offering delivers an OTG treat in a unique and distinctive bottle shape featuring an eye-catching blue and gold logo colourway to immediately differentiate this upscale proposition on-shelf and attract both YAZOO loyalists and new shoppers alike,” Tomenga says.

The products score big on sustainability, a key consideration for FrieslandCampina, as the bottles are made from 100 per cent RPET with tethered caps and new, easy peelable sleeves to make recycling effortless. Additionally, all the cocoa used in YAZOO’s chocolate products is certified by the Rainforest Alliance.

The RTD protein category has seen significant growth, and UFIT, the UK’s leading RTD protein brand, is capitalising on this trend with the introduction of new PMPs aimed at the convenience channel.

Available across all core flavour shakes, the range will entice new shoppers with an attractive £1.79 fixed price point, replacing its current duo impulse packs. The updated packaging will feature across all UFIT 22g Protein 310ml bottles with an initial launch in Spar, Nisa, and Filshill, and wider distribution to follow in January 2025.

Cornering a 30 per cent market share, UFIT is at the forefront of the category. With the RTD protein category demonstrating strong growth potential in the impulse channel [Nielsen: UFIT share in Impulse over 13 weeks up three per cent in both value and units], 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,” says sales director Richard Northridge.

“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.

“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.”

Busting inflation

PMPs are an invaluable tool for helping to drive beer and cider sales at the independent convenience stores.

In the impulse channel, beer and cider PMPs are worth approximately £456m, accounting for an impressive 24.7 per cent of value sales, and 26.5 per cent of volume sales in the total category. Looking at this more in depth, PMPs have a 19.7 per cent share in beer and five per cent in cider. In volume, PMPs in beer have a 20.6 per cent share, with PMPs in cider commanding a 5.9 per cent share [NielsenIQ].

“PMPs can help retailers drive loyalty among shoppers and, especially during periods of economic downturn, help people plan better on how much they want to spend. PMPs also can act as a PoS-like tool for retailers, as bold signage on-pack can draw customers in, generating potential for trade-up to more premium lines,” notes Alexander Wilson, category & commercial strategy director at Heineken.

The brewer offers a variety of its most popular beer and cider brands, including Heineken, Red Stripe, Foster’s, and Strongbow, in PMP formats.

WKD, the UK's leading RTD alcohol brand, is taking a bold step in the PMP market by significantly reducing the recommended retail price (RRP) of its popular 700ml price-marked packs. Phasing in this autumn, the price of WKD's glass sharing bottles will drop from £3.79 to £3.29, offering a significant 13 per cent reduction. This move is not a limited-time promotion but a permanent price change aimed at providing value to cash-strapped consumers amidst the ongoing cost-of-living crisis.

The lower £3.29 PMP level will apply across all flavours in the WKD 700ml range. WKD PMP bottles are exclusive to independents and available only through cash and carries and wholesalers.

“The focus and energy that we are putting into maximising PMP sales is testimony to the importance of the independent sector to WKD consumers,” Alison Gray, head of brand – WKD at SHS Drinks, says.

“WKD is the leading volume RTD brand in impulse and WKD Blue 700ml is the category’s No.1 bottle SKU and the brand’s flagship pack, so our renewed PMP focus starts from a robust base.”

In addition to the substantial 50p per bottle reduction in on-pack price, WKD brand owner SHS Drinks is also introducing a new initiative with printed shrink-wrap on 700ml PMP cases. Bold graphics will prominently display the new PMP rate, increasing trade awareness and supporting uplifts in throughputs at cash and carry depots.

SHS Drinks’ significant PMP push marks the start of a key period for WKD sales which is bookended by the new university term on one side and the festive peak at the other; the brand has a full programme of autumn-winter activity to engage consumers and drive sales for the rest of the year.

“WKD has always been a category pioneer and here we’re flying in the face of current inflationary trends to maximise value for both our consumers and our customers. The new PMP rate rolls back the years to pre-2022 levels, and our eye-catching innovative new shrink-wrap will stand-out and ensure high trade awareness of the exceptional value that the UK’s No.1 RTD is offering,” Gray adds.

In an economic climate where consumers are more discerning about their spending, PMPs have become an essential tool for convenience retailers looking to build trust, drive sales, and offer value. By stocking a range of PMPs across different categories and price points, retailers can cater to a broad spectrum of shopper needs.

Ultimately, the message is clear: PMPs are not just a trend, but a proven strategy for boosting sales and meeting consumer expectations. As more brands introduce PMP options and retailers refine their in-store merchandising to highlight these products, PMPs will continue to be a cornerstone of success in the convenience retail sector.