Understanding when and how to make best use of PMPs can greatly improve your revenue and sales – and here ‘s how
Price-marked packs (PMPs) are now chosen by seven out of 10 impulse shoppers over non price-marked skus. More manufacturers are therefore price marking their products and independent retailers increasingly understand the importance of PMPs.
PMPs became increasingly significant during the pandemic. Now, over the course of 2023 and into the new year, which has been characterised by an ongoing cost-of-living crisis, PMPs have found a renewed relevance for retailers and consumers – especially as a way of countering inflated ticket prices and as a way to guard against shopper dissatisfaction.
It is notable that the preference for, and increasing reliance on, PMPs by cash-strapped consumers represents an ideal opportunity for independents to make competitive gains against the multiples.
“PMPs offer a huge opportunity to retailers as the average shopper becomes ever-more price conscious in the difficult financial climate. PMPs offer a quick, budget-friendly shopping experience, aligning well with the convenience store model, and so retailers should consider stocking them wherever possible to see an uplift in sales,” suggests Martin Rice, operations director at Green Field Marketing.
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He adds that PMPs tend to work most effectively in staple categories like snacks, beverages and essential groceries as price visibility and competitive pricing are critical factors that influence a shopper’s purchase decisions in these categories.
PMPs serve many other purposes for a retailer, Rice notes. They can function as an extremely effective marketing tool, helping to convey promotional offers and discounts without the need for the retailer to pay and arrange for additional signage or advertising, and greatly assist in inventory management by ensuring that older stock is sold first, reducing the likelihood of expired or outdated products.
As PMPs over-index with shoppers purchasing on impulse, they are also good for driving impulse sales and increasing basket spend.
“Price marked packs can help to drive rate of sale with 75 per cent of convenience shoppers more inclined to buy if in a PMP,” a Red Bull spokesperson commented.
“This is even more relevant in times of financial hardship, when shoppers are more careful about what they spend their money on. In this instance, PMPs can be a purchase driver, helping to deliver a perception of value to the shopper, therefore retailers can support customers and make their decisions in store easier by supplying PMP options.”
Price confidence
As far as the shopper is concerned, knowing that they’re getting a fair and transparent price is a key benefit. PMPs perform strongly in store vs. their non-PMP alternatives because they give shoppers price confidence and reassure them that they are not being overcharged.
“The guarantee of a consistent price for the product in question, with no perceived risk of hidden cost or markup, helps build consumer trust and affinity for the retailer,” Rice says.
“The clear pricing on packs helps to minimise confusion and any potential disputes at checkout, plus facilitates faster purchase decisions with no need to check multiple items or ask for assistance, ultimately streamlining the shopping process for both consumers and staff.”
Matt Stanton, head of insight at leading distributor DCS Group, also stresses this point.
“Through the cost-of-living crisis, demonstrating value for money to shoppers is one of the most important factors for gaining share of their spend,” he says. “Not all consumers understand that the cost-to-serve model means convenience stores generally need to be slightly more expensive than supermarkets, so a good range or PMPs is important to give shoppers price confidence.”
According to the TWC Trends PMP study, published October 2022, nearly two thirds of the shoppers (63 per cent) say they think PMPs mean they are not being over-charged and 58 per cent of shoppers think the price mark is usually there because there is a promotion or discount. Significantly, almost half of the shoppers (48 per cent) say they tend to shop in places with lots of PMPs.
“PMPs make price promotions stand out more clearly – it is more obvious to the shopper that the product is being sold lower than the recommended price,” Stanton notes.
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The most common argument against PMPs is that they limit a retailer’s ability to charge a higher price for the product. Whilst there are certain, specific circumstances where charging a higher price could be an appropriate tactic, Stanton says charging the correct price to build shopper loyalty and price confidence is more important in most cases.
“Shoppers are busy and many are looking to pick up as much as possible in one place. Shoppers are also planning their trips in advance. Whilst charging a higher price may drive a short-term margin gain with shoppers on distress missions, it will have a negative impact on shopper loyalty,” he says.
“With shoppers looking to save money, they will plan to shop in a store where they have confidence in the product prices and will avoid stores looking to capitalise on distress missions by charging higher prices. Distress top-up missions account for just one in ten of total convenience shopping trips, whereas planned top-up missions make up one third of total and have a much higher basket spend, so these are the missions that most convenience retailers should be prioritising.”
Rice advises convenience stores to implement various strategies to reduce concerns around margins, such as utilising good supplier relationships to negotiate favourable deals or opting for PMPs predominantly for high-margin items.
Stanton recommends retailers to stock the PMP version in preference over the non-PMP wherever a PMP is available.
“We do not recommend stocking PMP and non-PMP variants of the same product at the same time, except in situations where there is no other option (for example, if a PMP is discontinued and there is only a non-PMP variant available). In this case, the non-PMP should usually be advertised at the same price, to avoid unnecessary shopper confusion,” he adds.
Stanton also advises against stocking PMPs and non-PMPs interchangeably depending on promotional cycles.
“PMPs make price promotions stand out more clearly – it is more obvious to the shopper that the product is being sold lower than the recommended price,” he reasons.
“Switching between the two variants will inevitably lead to both being on shelf at the same time, which could cause confusion for the shopper particularly if they are sold at different prices. It can also lead to slow-moving stock issues if the variants are sold at different prices, with the higher-priced variant sitting unsold on shelf.”
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, and they operate a Co-Packing division, enabling them to create new PMPs to satisfy gaps in the market.
Convenience retailers can find detailed advice on choosing the right PMPs for their household, health and beauty, healthier snacking and pet care ranges at DCS Group’s free to use website CoreRange.com, which has recently been refreshed with usability improvements and all the latest insights for 2024.
The £1 or £1.25 debate
The packaged goods industry has hit shoppers with higher prices for more than two years, citing rises in input costs that started with the Covid-19 pandemic and were exacerbated by Russia's invasion of Ukraine. This has also prompted many brands to move above the psychologically important £1 PMP level.
Matt Collins, trading director at KP Snacks, opines that £1.25 PMPs would be a key format for Independent and Symbol stores to focus on, accounting for 50 per cent of CSN PMPs sales, as per Nielsen figures. £1.25 PMPs are worth £319.9m within the CSN category and are growing in value 23.7 per cent [NielsenIQ, MAT 27.01.24]. According the Nielsen data, 18 of the top 20 best-selling SKUs are £1.25 PMPs and, of those, six are KP Snacks brands.
“Our range of large format PMPs is worth £120.3m. 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 adds.
“Meanwhile, our smaller format PMPs are ideal for a quick and affordable snack, including Space Raiders, the UK’s number one best value brand in 40p PMPs, classic heritage favourites such as Discos, Skips and Wheat Crunchies which are available in 50p PMPs and popular family choices including Hula Hoops core range and Pom-Bear in 65p PMPs.”
However, Matt Smith, marketing director for Tayto Group, says £1 PMPs are growing more than twice as fast as the market, adding that Golden Wonder will stick to £1 PMPs.
“Having surveyed both retailers and consumers, it was clear how important the £1 price-point is to both groups,” Matt explains.
“Independent retailers can really come into their own, where they can offer great value for money. Instead of raising the headline price of our £1 PMPs, we have given retailers and customers what they want – and kept with the £1 price point – to demonstrate our commitment to delivering great consumer value whilst offering strong retailer margins. 64 per cent of consumers are willing to switch brands for a lower price, so value for money is key!”
He adds that this commitment to £1 has been instrumental in Golden Wonder’s success with Transform-A-Snack £1 PMPs growing at 39.9 per cent – and the recent launch of Pickled Bikers boosting the Fun Snacks £1 PMP range to deliver 11.9 per cent growth at Symbols and Independents.
Golden Wonder’s 2023 launch of their best-selling Crisp flavours in £1 PMP packs has also been a great success, he adds. The fully flavoured £1 PMP range includes well-established favourites – Cheese & Onion and Salt & Vinegar – as well as unique Golden Wonder flavours: Spring Onion and Chip Shop Curry.
Another recent addition to the range is £1 PMP Saucers. These light and crunchy 3D lattice snacks are available in Barbecue and Prawn Cocktail flavours.
“Golden Wonder understands how important PMPs are to both retailers and consumers in the convenience market which is why our entire range of 20 products for this sector are PMPs ranging from our entry level 35p / 2 for 60p range to our great value £1 PMP range,” he says.
“With more and more consumers swapping a night out for a night in, retailers can easily boost sales by stocking up on pork scratchings – the ultimate pub snack!”
Snacks
With the total salty snacks category in independent and symbol stores now being worth £631.6m and growing at 18.0 per cent [NielsenIQ], there is evidence to show that snacking remains a huge part of day-to-day UK life.
Crisps, Snacks and Nuts (CSN) accounts for 94.1 per cent value sales of total Savoury Snacks, demonstrating the opportunity for independent retailers to grow their sales through leveraging this category.
“The key to this category growth remains with PMPs,” comments Mike Chapman, head of wholesale at PepsiCo.
“Shoppers are still looking for accessible price points, so PMPs will continue to be at the forefront of crisp and snack sales in 2024. Within the Savoury Snacks category, Sharing PMPs remain the number one contributor to crisps and snacks growth in value, compared with other segments.
“Retailers looking to grow their savoury snacking sales should look to prioritise the bestselling products Sharing PMP Snack SKUs, which includes Doritos, Quavers, Cheetos, Wotsits and Monster Munch.”
Matt Collins, trading director at KP Snacks, says the company is delivering the fastest growth in PMPs at independents and symbols with 36.7 per cent growth. Worth £129m, the KP Snacks PMP portfolio features a range of SKUs ranging from 40p PMPs to £1.25 PMPs.
“KP Snacks’ extensive PMP range caters to all tastes, occasions and budgets, perfectly positioned to engage shoppers and drive impulse purchases for retailers. 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.
In early 2023, KP Snacks expanded their PMP range with the launch of two new SKUs: KP Mini Chips Salt & Vinegar £1.25 PMP and KP Mini Chips Beef £1.25 PMP. In February, they launched McCoy’s Epic Eats, a brand new product range with two irresistible products, Nacho Cheese and Spicy Salsa. Available in a £1.25 PMP format, the new products are perfect for shoppers looking for something new and deliver on McCoy’s unmistakable bold flavour as the UK’s number one ridged crisp brand.
In 2022, KP Snacks launched Nik Naks Scampi ‘N’ Lemon in a large PMP format, generating excitement with the return of a shopper favourite which had been absent across singles formats since 2008 and multipacks since 2019.
“At KP Snacks we are continuing to expand our PMP portfolio with the right products in the right formats to generate consumer demand and create value for our retailer partners. Our NPD is informed by key category insights, including input from our valued retailer SnacKPartners who we work closely with to learn from their observations and help to maximise their sales,” Collins says.
KP Snacks is delivering PMP SKUs to suit all budgets and occasions.
KP Snacks’ large PMPs hold a 36.7 per cent share of the segment and McCoy’s and Hula Hoops large PMPs are outgrowing the category at 23.2 per cent and 39.2 per cent respectively [NielsenIQ].
Space Raiders offers the UK’s number one best value brand with tasty Pickled Onion, Spicy, Beef and Saucy BBQ flavours available in 40p PMPs. The Space Raiders brand is worth £24.9m and growing in value at 9 per cent.
“Our other heritage brands are also thriving in the PMPs segment, delivering tasty familiar favourites,” Collins adds. “Discos is available in £1.25 PMP and 50p formats in classic Cheese & Onion and Salt & Vinegar flavours. Worth £32.3m, the Discos brand is growing 36.7 per cent MAT. Available in £1.25 PMPs, the Nik Naks brand is growing 47.2 per cent and is one of the top 10 best-selling large PMP ranges.”
The Healthier Snacking segment is also growing in relevance and value following the introduction of HFSS legislation in October 2022.
“popchips PMPs are must-stocks for catering to the growing health trend as a beacon Better for You brand,” Collins recommends.
“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 £46.5m and growing at 7.7 per cent, popchips are a delicious but permissible snack.”
With Nuts exempt from HFSS restrictions due to their natural health benefits, KP Nuts £1.25 PMPs are an excellent product to capitalise on, he adds.
PepsiCo’ Chapman notes that enjoyment is the number one driver of choice when buying crisps and snacks, and shoppers are on the hunt for bold and exciting flavours to enjoy.
“As a result, we recommend retailers offer well-loved core brands in PMP formats, such as Quavers, Wotsits and Monster Munch. These brands continue to drive sales in the channel and work alongside a wide range of taste-led NPD, helping to maximise sales,” he says.
To cater to this demand, Walkers has launched a number of taste-led NPD in PMP format over the last year, including Walkers MAX x Pizza Hut in August. The brand teamed up with Pizza Hut to launch two new permanent, non-HFSS flavours into the Walkers MAX portfolio: Pepperoni Feast and Texan BBQ, both available in PMP formats. The new additions tap into the growing demand amongst younger consumers for bold flavours within the savoury snacking space.
The latest launch from their premium crisp range, Sensations, saw the release of two new classic flavours with a modern twist: Mature Cheddar & Chilli Chutney and Crushed Sea Salt & Black Peppercorn.
Both products are non-HFSS and launched in all channels from early February, with the Crushed Sea Salt & Black Peppercorn flavour being available in a 65g PMP format. Both flavours have been supported by in-store displays and off-shelf features.
As PMPs cater to multiple occasions and missions, Chapman urges retailers to stock the right mix of flavours and brands.
“Within the Independent and Symbols channel in particular, the top 15 Sharing PMP Snack SKUs include Doritos, Quavers, Cheetos, Wotsits and Monster Munch, which demonstrates just how important these SKUs are for independent retailers.To maximise this growth opportunity, we recommend that retailers stock a variety of Walkers brands in PMP format in-store to cater to multiple snacking occasions,” he advises.
“Given the strength of PMPs in delivering growth for retailers and the savoury snacks Category over the last year, we have continued to invest in the PMP format through NPD and line extensions across the nation’s most loved crisp brands. Launches like our Walkers Prawn Cocktail PMP - our third bestselling Walkers single flavour - or our Wotsits Giants PMPs continue to be popular with shoppers, as they look for their favourite flavours.”
Shaun Whelan, convenience/wholesale and OOH controller at Link Snacks International, which manufactures the UK’s leading protein meat snacking brand Peperami, says the demand for PMP’s has always been high and Peperami PMPs are very effective at generating sales.
“New PMP £1.25 flashed 2 for £2 on Peperami sticks offer good value compared to standard sticks, driving value and return on sales,” Whelan says.
“We ensure our Peperami PMP products are affordable for convenience retailers by supporting them with promotions and case sizes to keep the price points at the recommended retail prices.”
Peperami PMP products available to independent convenience store retailers include PMP £1.25 – Original 20x28g / Hot 20x28g / Firestick 20x28g / Chorizo 20x26g and New BBQ 20x28g all £1.25 / 2 for £2.
“PMPs are a great way to draw shoppers to the fixture,” Whelan notes. “PMP labels tend to stand out to grab shoppers’ attention. Key price points, like Peperami sticks 2 for £2 (driving rate of sale and cash margin), then compel more shoppers to buy more. Ensure PMPs are highly visible in store, by brand blocking and merchandising at eye level to maximise sales.”
Confectionery
The total UK sugar confectionery market is worth £1.6bn with Perfetti Van Melle remaining as one of the leading manufacturers with their portfolio of household brands including Mentos, Fruit-tella, Chupa Chups, and Smint being worth over £100m.
“Sugar confectionery is a resilient category as it delivers lifts and treats for its consumers,” comments Mark Roberts, marketing and trade marketing director at Perfetti Van Melle.
“As we continue into a challenging economic landscape, confectionery remains an affordable treat giving retailers a compelling sales generator. Our focus is on driving choice and by helping to signpost within the category, consumers can easily find a treat for any occasion.
“As we further develop our product portfolio, we continue to bring a wide range of products to consumers with new flavours, packaging, and textures.”
Chupa Chups has diversified its Big Babol chewing gum portfolio with a colourful and mouth-watering new flavour, Green Apple, launched in April last year across the convenience channel.
“As the second highest-performing brand in the bubblegum category, Big Babol’s sales are ripe for this refreshing new flavour to bolster the existing portfolio,” Roberts says.
Soft and chewy in texture, the moreish Big Babol Green Apple is available in six pieces per pack, with the chewing gum individually wrapped for hygiene and freshness.
“As Chupa Chups continues to go from strength to strength, with Big Babol Gum currently occupying a 10 per cent share of the Kids Gum Category and growing at a rapid rate of 51 per cent YoY, there’s never been a better time for retailers to stock up and invest,” Roberts adds.
Meanwhile, Fruit-tella has expanded into the jellies market with an innovative and interactive NPD: Fruit-tella Curiosities. The themed packs allow shoppers to explore one of four far-flung and fantastic worlds. In “By the Sea” the marine life is totally tropical, and the Antarctic creatures of “In the Snow” are berry delicious, whilst “Out in Space” will take consumers on an out-of-this-world journey, and “On a Safari” transports tastebuds to the heart of the Serengeti.
Now available to buy in store for £1.50 per pack, the HFSS-compliant jellies are made with 30 per cent reduced sugar, real fruit juice, and natural colourings and flavours.
Kathryn Hague, head of marketing at Hancocks, says impulsive categories perform the best when it comes to PMPs, with their Bonds price-marked sweet bags being a leading example.
“They are appealing to customers due to their clearly marked, affordable prices,” she says.
The bags are marked as £1.25 with flavours including favourites like Fruit Pastilles, Jelly Beans, Giant Strawbs, Chocolate Peanuts, Midget Gems, Fruit Jellies and Chocolate Honeycomb.
Bonds also have a range of Kids Sweet Bags which retail at 50p each. These tasty pre-bagged pick n mix sweets make for great pocket money buys for younger customers. They are the newest creation from the brand.
“You’ll want to merchandise these products with clear signage, showcase their value with displays and have an attractive POS too. Another way to maximise sales is by making sure you are stocking a wide range of PMPs to give your customers a good variety of products to choose from,” Hague adds.
Rose Marketing has recently extended their price-marked 90g Candy Castle Crew gummy bags with an additional six lines, in response to growing popularity and demand.
The new lines - Rainbow Belts, Rainbow Pencils, Assorted Pencils, Fizzy Worms, Fizzy Blue Bears and Bubble-gum Bottles - will join the already popular £1 gummy range of Fizzy Blue Bottles, Fizzy Bricks, Strawberry Kisses and Bonkers Bananas.
Three of these new bags are vegan: Assorted Pencils, Fizzy Pencils and Fizzy Rainbow Belts, making them an ideal choice for vegans and health-conscious people.
Steven Watt, chief executive at Rose Marketing says this strategic new product launch comes after 82 per cent of retailers cite pre-priced £1 bags an “essential stock item” as well as a primary growth driver in the convenience and impulse sector [Kantar, Lumina].
“It’s crucial for retailers to stay attuned to products and pack formats that really resonate with consumers,” Watt comments.
“The £1 bags have really gained prominence in recent times as they are perfectly aligned to cater for the value-conscious shopper. We are therefore confident that these additional six lines will provide retailers with a greater opportunity to drive pre-planned sales and impulse buys.
“They also offer great benefit to the retailer as they can build trust with clear, consistent checkout pricing. This range responds to contemporary confectionery, flavour and vegan trends whilst meeting the changing shopper preferences, particularly in these challenging economic times.”
For their Candy Castle Crew range, Rose Marketing offers retailers an exclusive category-managed solution. Strategically placed eye-catching shelf edge labels, attention-grabbing wobblers all help to drive customer interaction to the in-store theatrical experience and entice shoppers to explore the confectionery offer.
This approach, together with ensuring new and best-selling lines are prominently displayed, has really paid dividend with many of Rose’s category-managed customers reporting as much as a 20 per cent annual sales increase, the distributor said.
Soft drinks
More than ever, PMPs are a key way of helping shoppers to navigate the soft drinks aisle in Convenience, where 35 per cent of soft drinks are bought on Impulse [Lumina] and shoppers are accustomed to seeing PMPs in stores.
“Retailers can cater to multiple soft drink occasions by stocking market leading brands in a variety of PMP formats – including on-the-go and multipacks,” comments Amy Burgess, senior trade communications manager at Coca-Cola Europacific Partners (CCEP).
CCEP’s popular products and brands, including Coca-Cola, Fanta, Sprite, Dr Pepper, Monster, Relentless and Reign, are all available in PMPs and plain packs. Last year, they expanded their PMP range by introducing price-marked Schweppes one-litre PET bottles.
“This enabled more convenience customers to enjoy the advantages of PMPs with the best-selling mixers brand in retail,” Burgess says, adding: “So far in 2024, to help drive incremental sales, we have launched PMP versions of the Costa Coffee Latte and Caramel Latte RTD ranges, offering a unique selling point exclusive to convenience retailers to help enhance their competitive edge when it comes to the (RTD) chilled coffee segment. This has only added to the popularity of Costa Coffee RTD, now worth £24.4m, up 31.7 per cent.”
CCEP’s newly launched Coca-Cola Zero Sugar Lemon and Coca-Cola Original Taste Lemon are also available in both plain and price-marked packs.
Sports & Energy is a key sector for PMPs, delivering £86.6m in value growth YoY (+13 per cent). Within soft drinks, Sports & Energy contributed 82 per cent of all PMP growth last year, with Red Bull delivering more than one third of this growth, adding £31m in value, +15.0 per cent vs YA.
“For those concerned with margin, Red Bull is the No.1 energy drink selling more units than any other brand in the category, presenting a compelling proposition to help drive PMPs sales value,” the Red Bull spokesperson said.
According to Nielsen data, Red Bull Energy Drink 250ml is the best-selling PMP sku in sports and energy, worth £71m and drives the highest demand in the Red Bull portfolio. Red Bull Energy Drink 355ml is the fastest growing PMP sku in sports and energy, +£10.4m (+21.0 per cent) with 473ml also seeing fast growth +£8.5m (+18.0 per cent).
Red Bull has recently unveiled its brand-new Summer Edition Curuba Elderflower. Available now, the new variant offers the perfect taste blend of exotic curuba, rounded off with floral notes of elderflower to excite shoppers and drive trial, tapping into the shopper demand for “new and unusual flavours” in energy drinks.
Offered in 250ml £1.45 PMP, 250ml, 355ml Sugarfree and 250ml Sugarfree four-pack, the launch of the new Red Bull Summer Edition Curuba Elderflower will be supported with a range of tailored POS to raise awareness in-store across all key touch points.
Milk drinks have shown themselves to be a resilient and consumer-favourite, continuing to grow in popularity, both as a take home treat or to enjoy whilst out and about. This has largely been supported by the trend for premiumisation in flavoured milks that has brought new consumers to the category and helped wider growth.
The flavoured milk category is worth 646 million [IRI]. In convenience, sales contribute 44 per cent of total category sales with a value of £287m.
Chocolate flavoured milk, the second largest sub-category, is also performing well with value sales worth £122 million.
“We believe that our range offers a winning combination, iconic brands in eye-catching packaging,” Michelle Frost, general manager at MCD&T says. “The combination of PMP and well-known brands draws attention to the product within what can be a crowded chiller.”
The Mars Chocolate Drinks and Treats range includes Mars, Mars Caramel, Maltesers, MilkyWay, Twix, Snickers, M&M’s Brownie and Galaxy.
The range can be stored ambient but is best served chilled. All SKUs are suitable for vegetarians and have no added sugar.
Katie Chadd, business unit controller at FrieslandCampina, notes that consumers are savvier than ever, in the face of the current economic uncertainty, 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,” she claims.
Chocomel introduced an inaugural PMP value offer for its 250ml Chocomel cans (£1.69) last year, designed to help retailers boost their on-the-go beverage sales, drive impulse purchases, and bring incremental shoppers into the category, whilst ensuring a positive price perception among shoppers.
Additionally, Yazoo offers permanent PMP variants of all core flavours as well as across its limited-edition flavours, meaning the range can be tailored to whatever best suits the store.
“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 - especially as the weather heats up and consumers are looking for a milk drink fix to quench their thirst whilst getting the benefits of dairy goodness,” Chadd says.
Yazoo’s larger format one-litre bottles are available as a £1.99 PMP, whilst the core 400ml bottle is available in a £1.49 PMP.
Yazoo has introduced last year a brand-new, HFSS-compliant, indulgent milkshake format, Thick N’ Creamy, as a £1.49 PMP, the first permanent NPD from the brand since 2016.
Thick N’ Creamy is available in two flavours – Indulgent Chocolate and Creamy Strawberry – with on-pack visuals communicating the thick texture and creamy taste sensation of the product within.
“This milkshake offering delivers an OTG treat in a unique and distinctive bottle shape featuring an eye-catching blue and gold logo colour way to immediately differentiate this upscale proposition on-shelf and attract both Yazoo loyalists and new shoppers alike,” Chadd says.
“Thick N’ Creamy offers an indulgent taste at an accessible price point that makes it an affordable treat, which we know consumers are turning to more and more in the current climate, using the ‘little and often’ rationale when larger-scale indulgences feel out of reach.”
Chadd suggests that retailers should focus on marketing sharing sizes of popular brands and products, including the one-litre bottles and price-marked packs of Yazoo and Chocomel.
“Consumers are likely to continue shopping less frequently this year and will stock up on larger formats to ensure they do not run out of their favourite brands and home comforts as quickly,” she says.
“Visibility is key, and stores can convert more shoppers to buy into the supported brand and generate category growth if the brands are easy to find. Though Yazoo and Chocomel are ambient products, with longer shelf life than typical milk products, retailers should consider stocking the drinks in chiller aisles with more footfall than back-of-store sections. This allows the product to be seen more regularly by consumers and can lead to more frequent incremental sales opportunities. Additionally, brand-blocking placement on shelf and targeted POS can help to further attract shoppers’ attention.”
She also asks retailers to consider transitioning from traditional soft drinks to energy and coffee drinks to go, with milkshakes being the perfect product to place between these two areas.
Alcohol
Lauren Priestley, head of category development – off trade, at Diageo GB, says consumers are continually seeking high-quality drinks options at affordable price points, adding that it’s important for retailers to stock PMP options across a range of alcoholic drinks categories.
“Ready-to-drink (RTD) formats are popular options as they provide consumers with the great-tasting drinks that consumers know and love, in convenient formats,” Priestley says.
In fact, The RTD segment is the fastest growing within the total alcohol category [Nielsen]. She recommends retailers to stock the RTD variants of popular brands such as Gordon’s Premium Pink Gin & Tonic 250ml PMP can (five per cent ABV) and Captain Morgan Spiced Rum & Cola 250ml PMP (five per cent ABV) and more recently launched Smirnoff Raspberry Crush and lemonade PMP (4.5 per cent ABV).
“Merchandising these options alongside each other within the chiller allows for consumption shortly after purchase at the optimum temperature – something that the larger multiples typically can’t compete with. This will be particularly beneficial for customers looking for quick, convenient, and last-minute purchases,” Priestley notes.
Stocking PMP options across a range of spirits categories, including vodka, rum-based spirits and gin is also essential.
“Vodka, for example, currently accounts for 58 per cent of PMP sales in the impulse channel and is therefore a must-stock. Having popular vodka brands– such as Smirnoff Red Label – available in a variety of formats (including 350ml, 700ml and one-litre) provides shoppers with a range of high-quality yet affordable drinks options,” she says.
Smirnoff Red Label’s 700ml PMP is currently worth over £53m in the impulse channel and is not a brand to be overlooked. Similarly, Captain Morgan Original Spiced Gold, 700ml PMP and Gordon’s London Dry 700ml PMP are worth £22.1m and £18.2m, respectively.
To encourage customers to purchase PMP beer options, Priestley suggests to make these offers on trusted beers.
“For example, Guinness is the No. 1 stout brand in GB and is a high-quality beer choice. Guinness Draught in a can is available in a range of formats including four-pack, eight-pack and 15-packs. Maintaining a selection of multipack formats is also beneficial as they are great for sharing, enabling retailers to tap into socialising occasions,” she adds.
