The Ploom brand has gone from strength to strength over the past few years. First introduced into the UK market in 2020 with the launch of Ploom S, it was recognised at the Asian Trader Awards last year, where it received Convenience Vape and Next Gen Product Brand of the Year.
Building on our growing presence in the evolving heated tobacco category and responding to the needs of adult consumers, we have recently announced the launch of a new and enhanced device, Ploom X. Representing the next generation of heated tobacco, it offers existing adult smokers an alternative but familiar experience by heating tobacco instead of burning it.
Thanks to significant technological upgrades, this smaller and more compact device has a more consistent nicotine delivery and an enhanced flavour sensation. It also has a longer session time of up to five minutes and the ability to use more EVO Tobacco Sticks per charge.
This is just another step in the evolution of the Ploom brand, with improved technology that offers a truly unique experience for customers. We’re looking forward to providing retailers with the opportunity to capitalise on the market through this new and exciting product.
How is the heated tobacco market currently performing?
The heated tobacco category has been rapidly growing in popularity over the past few years. Currently, the category is worth £91 million in Traditional Retail1. By 2025, It is estimated that the category will be worth £250 million, with 66 per cent of consumers buying through traditional retail2. This represents a huge opportunity for retailers, especially with a competitive range and strong product knowledge. There is really no better time to expand and upgrade our portfolio with Ploom X.
What trends are occurring in the sector?
A growing number of existing adult smokers are looking for an alternative-but-familiar tobacco experience in the form of heated tobacco products. By heating instead of burning, it gives the user an authentic tobacco taste – but without the smoke smell and minimal charring.
Many next-gen alternatives, including Ploom, have seen most of their UK development to date in independent and convenience outlets, and the ever-growing potential is obvious.
More specifically, we have observed the demand for flavour within the heated tobacco category as a driving factor to sales. Currently, sales of tobacco flavoured heated tobacco variants account for 50 per cent of all refill sales in traditional retail3, with Menthol flavoured accounting for 43 per cent4.
As a manufacturer we are always looking to keep on top of trends and listen to what consumers want when it comes to meeting demand for new flavours. JTI has established itself as a destination for flavoured tobaccos and flavoured capsules within the sector. That’s why earlier this year we expanded our range of EVO Tobacco Sticks, which are inserted into a Ploom device and heated to release a tobacco vapour – this includes a crisp apple and menthol variant named Ruby, alongside two new alternative variants with crush capsules, Green and Purple.”
Three words to describe your brand
Innovative, enhancive, intuitive
Ploom X is available in selected retailers within the Greater London area and on ploom.co.uk now. Ploom X is offered as a bundle deal in most channels, including one device and two packs of EVO Tobacco Sticks for £29. The device can be used exclusively with EVO Tobacco Sticks (RRP £4.50) which are available for all London retailers within the M25.
1 IRI Market Place, Value Sales, Total T-Vapour Category, Total UK, MAT Jun 2022
2 IRI Market place value & JTI Estimates of Non-Traditional channels
3 IRI Market Place, Unit Sales, Total T-Vapour Category, Total UK, June 2022
4 IRI Market Place, Unit Sales, Total T-Vapour Category, Total UK, June 2022
In today’s fast-changing retail landscape, Bestway Wholesale is known for making bold moves when necessary. But lately, it’s store arm, Bestway Retail, has been buzzing with fresh ideas, capturing the attention of both the industry and consumers alike.
From pioneering hybrid new store models to spearheading customer-centric strategies, strengthening retailer relation and expanding own brand line, Bestway Retail has been cementing its position as a dynamic player for some time now.
The biggest buzz right now is around their innovative approach of “store within a store”, also known as dual store or hybrid store concept. Introducing back-to-back permutations and combinations of its different symbol groups (Costcutter, Best-One, Bargain Booze, Wine Rack, Select Convenience and Central Convenience) in a new dual store format, Bestway Retail is definitely on to something fresh and intriguing.
Asian Trader got in touch with Bestway Retail Director Jamie Davison, who is said to be the driving force behind Bestway’s recent redefinition of convenience stores.
Davison explained, “Our dual supply hybrid store concept focuses on the different customer demographics and having the right offer and proposition that meets the needs of local customers in that catchment area.
“We believe that our new concept stores define the future of convenience. This innovative and pioneering concept brings together the strength of the Costcutter or Best-one’ convenience offer with the leading beers, wines, and spirits lines available from Bargain Booze or Wine Rack to make a fantastic proposition for both retailers and consumers alike.
“We are proud of our hybrid concept that allows retailers to not only compete, but to thrive and take on all competitors within the convenience market with confidence.”
Daring Duals
Introduced by former Bestway retail director Mike Hollis in early 2022, the inspiration behind this model stems from the thought that no two stores are completely alike.
The first Costcutter-Bargain Booze hybrid store was adopted by Costcutter retailer Peter Patel at his Meopham store in Kent, showcasing a 420 sq ft Bargain Booze section inside his 1,900 sq ft store. The store reported a spike of “166 per cent” in alcohol sales after the refit and rebranding.
Another such dual-branded store in Bolton has also been seeing encouraging numbers since it adopted Costcutter-Bargain Booze model. With two prominent brands displayed outside the store, retailer Kersheaup Vagadia’s store has been seeing a “significant increase” both in footfall and in average basket spend.
What makes this hybrid model so compelling? In an era where personalisation is key, Bestway’s hybrid stores seem to hit the nail with their adaptability and flexibility.
The “marriage of the two brands” means the hybrid stores have an exciting and market leading alcohol offer to complement the leading grocery proposition, Davison said, adding that some dual stores have been boosting store sales by a whopping “220 per cent”.
Under the umbrella of “store within a store” model, Bestway Retail has so far introduced Costcutter-Bargain Booze proposition and Costcutter-Wine Rack model.
Wine Rack hybrid is for a “more premium demographic with its range of wines and Champagnes” while Bargain Booze one targets the “mass market looking for value offerings”, Davison explained.
The first Costcutter Wine Rack hybrid store opened in Guildford in late 2023, a concept that is set to be rolled out wider across the Southwest.
Calling them “a key part of Bestway Retail’s winning formula”, Davison stated that the hybrid stores provide shoppers with “wide fresh and chilled offering, Own Label (Coop, Best-in), wide range of branded groceries, a full suite of Food-to-Go options, exceptional usage of locally sourced Direct to Store Supply Partnerships (over 300), specialist BWS offer,£5 million investment in marketing packages and significant investment in social media channels”.
Davison continued, “Our dual supply hybrid stores were executed by drawing off the extensive knowledge and expertise of colleagues and departments across Bestway businesses, working collaboratively with partners to ensure the store-within-a-store concept delivered the right proposition for the store demographic.”
Bestway Retail has so far completed 10 of the dual-branded conversions. The wholesale giant said it was planning to expand the concept and supply into areas of the UK within which Bargain Booze had not historically operated.
Meanwhile, Davison stated that Bestway Retail is aiming to have “100 such hybrid cum dual stores by the end of 2024”.Bestway Retail’s plans don’t stop there. The group has also struck a long-term partnership with SimplyFresh, allowing SimplyFresh retailers to open dual-fascia stores with Bargain Booze and Wine Rack brands.
With almost 30 years of experience in retail, Davison is clearly a veteran and a seasoned retail expert who knows the business inside out- definitely a perfect person to lead a bold initiative like this.
Starting his career with his own store, Davison joined Costcutter in 1999 where he quickly climbed the ranks to become Business Development Director of New Business. He came to Bestway along with Costcutter acquisition, joining as Business Development Director, a position he has held since 2021.
In current role of Retail Director which he took last year, Davison has overall accountability for the new business and store development teams along with overall responsibility for the support and development of the Best-one, Costcutter, Bargain Booze, Wine Rack brands, along with relationships held with symbol retailers.
Davison told Asian Trader, “My role is focused on engaging with our customers and ensuring my team are supporting and driving our customers plans to grow’. I am ensuring that we continue to develop our retailer engagement and the propositions and services that we offer.”
For a company supporting over 3,000 retail outlets under its core brands, such a commitment to growth is certainly no small task.
Meanwhile, Bestway Retail’s renewed focus on its symbol retailers, driven by Davison, is now starting to show results. The numbers are speaking for themselves.
Davison said, “Average weekly purchasing figures from new hybrid group of stores is nearly double the average of a non-hybrid Costcutter, Bargain Booze or Wine Rack retailer. Rebate being paid back to a hybrid retailer by Bestway is +40 per cent vs the average paid to non-hybrid Costcutter which demonstrates loyalty.”
The other encouraging figures reported at dual stores are “3 per cent margin growth as well as margin rate improvement, 40 per cent improvement in footfall, 48 per cent increase in weekly sales and +11.7 per cent average basket spend”, Davison informed.
Bestway’s focus isn’t limited to its hybrid stores. The company has also undertaken a major facelift for its Best-One brand, refreshing the way these stores are presented, ensuring a vibrant and modern look and feel is carried out both internally and externally.
Davison said, “The main focus of this modernisation was to overhaul, focus on key promotions for low demographic areas and the introduction of an up weighted own label presence.”
The pilot of revamped Best-one, that opened near Bristol, boasts of “refreshed 3D-halo, back lit fascia and new vinyl’s that reflect what the store is selling”. The refreshed Best One model also has “stronger value message, promotion gondola, twice dump bins, floor stacks and dedicated own label range in “Best-in bay”.
“Customers love what we have done, and they are supporting us with their pounds,” Davison said.
Buzz has it that there is another hybrid model brewing, which could see a Bargain Booze store sited within a Best-one, or vice-versa, depending on whether the store in question is grocery or alcohol-driven. The concept would likely replace the current Select Convenience format.
Retailer relations
To strengthen its relationship with retailers, Bestway has been developing retailer engagement programmes for its 3000 retailer outlets.
Davison told Asian Trader, “Relationships are at the heart of all we do, and we want to continue to support that. We have introduced our retailer forums across all our brands; we are holding retailer regional meetings.”
Bestway’s retailer showcase held in May was the “biggest and the most successful” the group has seen to date, with the attendance of more than 500 retailers.
He pointed out, “We also make sure to engage with suppliers and develop partnerships and networking opportunities for our colleagues. Throughout the year we plug in opportunities for social events as well to strengthen the relationship building with retailers and suppliers. Every end of the year we come together in November to celebrate our colleagues, our retailers and our valued supplier partners as well at our Bestway Awards.”
Davison also credited the field teams, highlighting their role in constantly supporting retailers.
He said, “Our field team helps retailers understand their key catchment area, the trade zone that they operate in, to be able to compete in their specific location and bring the relevant ranges, fulfill the missions of the various shopper personas and bring their shopper a key value offer and maximize the opportunities out there.”
While Bestway is undoubtedly focused on growth, it hasn’t lost sight of the challenges facing the convenience sector.
Davison informed, “We have developed a very strong own label proposition to bring value to shoppers impacted by the cost-of-living crisis. Having three principles in mind – margin, value and quality – the range features almost 200 lines.”
Retail crime is another pressing issue.
He said, “We are working closely with our retailers and use our forums to ensure we listed to the issues and provide support with solutions. With Dawood Pervez (managing director at Bestway Wholesale) being a chairman of FWD, we also seek support from the rest of the industry as well where applicable.”
As the retail landscape continues to shift, Bestway Retail is also preparing for the impact of new legislative restrictions, such as the disposable vape ban and possible Deposit Return Scheme (DRS) regulations.
He said, “We acknowledge the importance of all these policies and respect them and are working with our customers to transition and mitigate any risks. For example, when it comes to the HFSS regulations, we have been developing our Good Food project for over two years now, with the objective to bring healthier options to our customers.”
Future is here
Davison’s extensive experience in convenience retail, combined with his deep understanding of the industry, gives him a unique perspective. His advice to independent retailers is simple yet profound that “one size or model does not fit all” and it is important to get to know the customers and adapt the propositions to tailor serving specific needs.
Looking ahead, Davison seems laser-focused to further develop dual-branded stores, ensuring “there's a perfect fit for everyone”.
He told Asian Trader, “Our focus is on creating dynamic, modern, and customer-centric spaces that cater to evolving shopper missions.
“We will tailor solutions to the unique needs of our retailers and optimise our Shopper First program to target key audience demographics to help pinpoint the right offers. Whether a bustling city centre outlet, community store or a cosy neighbourhood shop, we've got it covered.”
In many ways, Bestway Retail’s hybrid store model encapsulates the group’s as well as Davison’s philosophy- flexibility, agility, adaptability, personalisation and local relevance. As the retail landscape continues to evolve, it’s clear that Bestway is not just keeping pace but is ahead of the curve. The future, it seems, is already here.
Becky Allan, Marketing Manager at snack brand Takis, tells us how the super-fiery chilli flavours of this market-conquering phenomenon are the secret of its hot success
Can you please give an overview of your brand?
Takis first made a name for itself when it went viral in the US, with global sales of the popular rolled tortilla chips surpassing $2bn. Every Takis product is known for its fiery flavour, intense crunch and unique tortilla roll, providing consumers with an exciting and unmatched snacking experience.
The UK convenience sector can now enjoy the brand’s three SKUs: the best-selling Fuego flavour provides a blast of flaming hot chilli pepper and tangy lime, earning it an “EXTREME” rating on the brand’s Heat Meter. Takis’ Volcano variant meanwhile offers an intensely cheesy flavour with a cheeky fiery kick. The newest SKU, Dragon Sweet Chilli, ensures every bite is filled with a spicy sweet chilli flavour combination that tingles your taste buds. Marked as “Hot” on the Takis Heat Meter, these hot and spicy corn chips are sure to thrill true chip lovers.
How is your brand currently performing?
Takis is outperforming the wider snacking market with value growth of +8.1 per cent, making up 18 per cent of the market1. We are currently the fastest selling in the top 50 in the snacking category, driven by our increased distribution (+24 per cent YOY) 2.
When it comes to the convenience sector specifically, Takis is worth over £13 million and is in growth, seeing sales of over 6.1m packs a year3. We see no signs of this slowing, as Takis continues to cater to those looking for an intense snacking experience. In fact, our brand has a 23 per cent market saturation4, helped by our range of formats including the new PMP grab bags. This is a launch we’re particularly proud of, as it broadened our availability into the convenience channel – an area crucial to the snacking market.
How is the category currently performing?
The total market is proving a big profit driver for retailers, worth a huge £2.14bn, seeing 1.46bn packs sold a year5. When it comes to the tortilla sub-category, the convenience channel is seeing growth of +4.3 per cent year-on-year6. In the convenience sector, we’re seeing sharing formats grow at the quickest rate: +14.4 per cent year on year7!
The growth of the market is something that excites us here at Takis – there’s room to continue to expand and innovate, helping retailers provide snacking offerings that cater to a range of shopper wants and needs. There are lucrative profit opportunities to be had by retailers, and we’re here to help them make the most of them.
How are you supporting your brand and NPD?
This year has been a particularly exciting one that has seen us make significant headway in terms of establishing ourselves as a major player in the snacking category. With a marketing focus that sees us go where the consumer is, we are focusing our efforts on where Gen Z spend most of their time – social media. TikTok and Instagram are both incredibly important platforms; they enable us to not only be visible but build a community of fans and followers that we can engage with.
This clear, single-minded focus delivered two milestone for the year, the first being the launch of our third SKU into the market in April – the inimitable Dragon Sweet Chilli. This August then saw us launch Takis into the convenience channel, following a six-month stint exclusive to grocery, with a PMP offering that is bespoke to this sector. In a UK first for our brand, Takis’ three SKUs are available in PMP format, allowing retailers to capitalise on the market that is growing at +17.6 per cent value and +6.8 per cent units year-on-year8. Available to order via Booker Wholesale UK, Fuego, Volcano and Dragon Sweet Chilli are available in a 55g pack, price marked at £1.25.
How important are independent retailers to your brand?
Independent retailers are hugely important to our brand – and we are thrilled to have launched our products into this sector. Our core target audience is Gen Z – we know that they are the super snacking generation and more likely to buy on impulse, with independent retailers being perfectly placed to leverage this. When it comes to shopper attitudes to snacking, bold and strong flavour choices are dominating purchase decisions. While planned purchases lend themselves to “weaker” flavours, impulse purchase (57 per cent of shoppers buy bagged snacks at least once a week9) is where intense flavours, such as chilli and paprika, have their moment to shine10.
What trends are occurring in the sector?
The “Need for Heat” is not showing any signs of stopping, as 33 per cent of snackers are looking to explore new intense flavours in the category11, suggesting a continued interest in spicy flavour profiles. In fact, 35 per cent of consumers say they buy intensely flavoured crisps and bagged snacks with crunch because they like spice, 30 per cent because they like intense flavours and 33 per cent because they like to explore new flavours. This makes clear that NPD around intense flavour will be key to maintaining consumer interest.
Describe your brand in three words
Bold. Fiery. Daring.
1 Circana – Total Market – Total Crisps, Baked & Snacks – L52 w/e 12/05/24
Marketing Manager Amy Heap talks about the c-store heritage brands that set KP Snacks apart from the competition and explains why they are doing so well
Can you please give an overview of your brand?
At KP Snacks, we offer a wide-ranging portfolio of crisps and snacks. One aspect of our range that sets us apart is our selection of classic Heritage Brands. With Nik Naks, Wheat Crunchies, Space Raiders, Roysters, Discos and Frisps, we’re tapping into the growing consumer demand for “Modern Nostalgia”, maintaining the positive associations our consumers have with these brands and making sure they remain relevant in today’s market. As well as being great tasting, fun and familiar, these products offer great value to shoppers with unique and flavourful brands that consumers trust and love.
How is the range currently performing?
Our unique brands are delivering sustainable growth to the Convenience channel. Last year, Nik Naks and Discos were in the UK’s top ten fastest-growing Food & Drink brands, with Wheat Crunchies growing by over 50 per cent1. Space Raiders is also driving sales within the channel, growing at +4 per cent2. Meanwhile, Roysters T-Bone Steak £1.25 PMP is outperforming the PMP segment in both volume and value.3 These unique brands have become staples of the Convenience & Impulse channel, offering consumers a mix of value, familiarity, quality and great taste.
How is the market currently performing?
Bagged Snacks is a strong and resilient category with huge scale, now worth over £4.3bn4 and growing. At KP Snacks, we have a track record of strong performance with our Heritage Brand portfolio currently growing at +6 per cent5.
Now more than ever, consumers are looking for products which are considered to offer good value for money, with retailers saying customers are looking for value and deals6. While our range offers everyday value it also bridges the gap between nostalgia and relevance, making them hugely popular.
How are you supporting your brand?
We’ve recently launched an exciting new £45,000 retailer incentive for our Heritage portfolio. Running until October 13, the new giveaway offers retailers the chance to win one of 90 £500 cash prizes by purchasing cases of Discos, Space Raiders, Nik Naks, Roysters, and Wheat Crunchies.
The incentive showcases our range and the critical role it plays within the Bagged Snacks category as a staple of the Convenience & Impulse channel. We’re also distributing new POS kits to drive standout of Heritage brands in-store and help increase retailer sales.
Our new POS package features the strapline “Extra Taste, Extra Fun and Extra Sales” and includes vibrant dump bins, shelf wobblers and shelf strips to help retailers capitalise on the strength of KP Snacks’ Everyday Value brands, delivering stronger customer visibility to drive sales growth.
We also recently launched brand new packaging across our Discos range, giving this classic brand a more contemporary feel. With vibrant colours and a dynamic design, the new packs deliver a more impactful standout on shelves.
Do you have any new product development?
We are committed to bringing innovation to the category with our NPD strategy, anchored in insight and delivered in a range of formats to bolster retailer sales.
We continue to innovate across our Heritage Brands range to deliver further differentiation.
We recently launched Nik Naks Rib ‘N’ Saucy in Grab Bag format, reintroduced the sought-after Nik Naks Scampi and Lemon in a £1.25 PMP and launched Wheat Crunchies Spicy Tomato, driving consumer interest and sales.
Most recently, we launched Discos Prawn Cocktail £1.25 PMP, capitalising on the considerable growth of Prawn flavours in the UK market. Worth £154m and growing +16 per cent YOY7, Prawn flavours are increasingly in demand.
It’s not just our products we’re innovating – we’re constantly reviewing and improving our packaging in line with our commitment to use as little plastic packaging as possible. This year we reduced plastic packaging across our Discos, Roysters and Frisps six-packs by 35 per cent by implementing new flow wrap equipment. Equivalent to 100 tonnes of packaging saved annually and 620 fewer lorry journeys, our packaging innovation helps to minimise our environmental footprint.
How important are independent retailers to your brand?
Retailers are hugely important to our brands and we are committed to delivering great value to our consumers, while also providing the right products in the right formats to drive sales for our retail partners and incremental category growth.
Heritage brands are a critical part of core ranging, with these products in particular appealing to consumers looking for great value snacks and representing brands that are iconic and well-loved in their own right.
Our new incentive is specifically designed to reward retailers and help them boost their sales by leveraging familiar brands which deliver everyday value and strong consumer appeal.
What trends are occurring in the sector?
PMP formats have seen significant growth in recent years and will stay increasingly relevant as the cost of living remains high. PMPs offer consumers great value for money, with clear pricing reassuring shoppers that they’re getting a good deal. Food to Go missions are also on the rise at +15 per cent8.
We have an extensive PMP portfolio, offering a range of tasty snacks at a variety of prices to suit all budgets and occasions. Our smaller format PMPs include the UK’s number one best value brand, Space Raiders, in a 40p PMP, alongside Discos, Skips and Wheat Crunchies at 50p with Nik Naks Nice ‘N’ Spicy and Nik Naks Rib ‘N’ Saucy available as £1.25 PMPs.
Describe your brand in three words …
Great-tasting, fun, trusted.
1 Nielsen IQ, Total Convenience Bagged Snacks Report, Total Volume, MAT 13.07.24
2 Nielsen IQ, Total Convenience Bagged Snacks Report, Total Volume, MAT 13.07.24
3 Nielsen IQ, Total Coverage, Total Value, MAT 13.07.24
4 Nielsen IQ, Total Coverage, Total Value, MAT 13.07.24
5 Nielsen 52 w/e 10/08/24
6 Figures quoted from KP Snacks/ ACS survey of 28 retailers, August 2022
7 Category – NielsenIQ, Scantrack, 52 w/e Oct 2023 - Total Coverage
Mark Edge, Head of Marketing at Purity Soft Drinks, reveals that fruit juices are enjoying great post-Covid popularity – and Purity’s NPD are tapping into the trend
Can you please give an overview of your brand?
Purity Soft Drinks a leading manufacturer of juices and juice drinks and the proud owners of Juice Burst and firefly. We have a clear mission as a business – to deliver natural refreshment for everyone. Juice Burst is now one of the biggest on-the-go juice drink brands in the UK, with no added sugar, one of your five-a-day and HFSS-compliant, all via a line-up of on-trend juice flavours.
How is your brand currently performing?
Juice Burst continues to go from strength to strength, significantly outperforming the Total Soft Drinks and Total Drink Now Soft Drinks categories1. Our Juice Burst Orange and Apple flavours are already the third and fourth biggest Drink Now Fruit Juice SKUs, respectively2. This overall performance is a testament to our commitment to supplying great-tasting, healthy juice in both classic and trending flavours.
How is the category currently performing?
The soft drinks category is worth £3.3bn annually to convenience retailers3, presenting a huge opportunity to increase sales by stocking an enticing range of soft drinks. This is especially true during the summer months, when more customers are seeking on-the-go thirst quenchers.
Do you have any new product development?
Launched recently, Juice Burst Summer Fruits delivers a refreshing blend of strawberry, cherry, and apple, and one of your five-a-day, and is already in the top 10 bestselling flavours within the on-the-go fruit juice market4.
Our latest flavour, Juice Burst Peach Ice Tea, is another popular choice and follows the tea-flavoured juice market growing ahead of the total soft drinks category year-on-year5. A refreshingly sweet blend of peach juice and black tea flavouring, Peach Ice Tea contains more fruit juice per bottle than any other SKU in the growing tea-flavoured juice market and is one of your five-a-day with no added sugar, artificial flavours or sweeteners.
We have also recently introduced attached caps across the entire Juice Burst range, making the packaging 100 per cent recyclable. The introduction of attached caps across all Juice Burst SKUs will make it easier for consumers to recycle the products more effectively, reducing the frequency of bottle caps being discarded or littered and helping to ensure they are captured and recycled with the rest of the packaging. The attached caps also see the removal of foil seals from all Juice Burst bottles, reducing foil packaging waste by 10 tonnes annually.
We have invested significantly in testing, development and new factory equipment to deliver this packaging update. With sustainability found to be one of the most important considerations when choosing a soft drink or juice drink to purchase6, the latest updates aim to ensure the sustainability of its brands for years to come.
The new caps were well received during national testing trials, with consumers finding that the classic Juice Burst wide mouth design kept the attached cap from being an interference and ensured an easy to drink and close experience.
How are you supporting your brand and NPD?
We recently launched Juice Burst’s biggest marketing campaign yet, Punchy To The Core. The campaign will keep the punchy taste of our bestselling flavour, Juice Burst Apple, front of mind of shoppers throughout the summer months.
Punchy To The Core is set to reach over 30 million UK adults and will be seen 174 million times through social and digital activity, nationwide sampling, and disruptive OOH advertising including thousands of bus T-sides and phone kiosk adverts across 21 major UK cities.
How important are independent retailers to your brand?
Every single retailer customer is important to us and that is no different whether you are independent, franchisee, speciality, or one of the mults. It’s a bespoke and tailored approach each time as each customer has different challenges and consumer needs. Everything we do is real – nothing is artificial, from the products we make to the relationships we build.
What trends are occurring in the sector?
Our research shows that 29 per cent of consumers are drinking more fruit juice and juice drinks in comparison to pre-Covid levels7, driven by an increased focus on health. When choosing a soft drink, health is now the second most important consideration after taste, with 41 per cent of juice drinkers choosing a product because of its health credentials and 36 per cent preferring products that provide one of their five-a-day7.
To maximise the soft drinks opportunity, it’s important for retailers to stock a range of options that can appeal to those shoppers who are seeking out healthier drinks. For many years, we have pursued the approach of including only natural ingredients in our products – with absolutely no added sugar ever – and this has been a key part of our mission as a business.
Describe your brand in three words …
Vibrant Punchy Fruit
1 IRI Ext Marketplace | 4 week ending data to 18.02.24
2 IRI EXT Marketplace | Drink Now Unit Sales Data 18.02.24
3 Nielsen Total Impulse, Val MAT to w/e 27.01.24
4 IRI Ext Marketplace Unit Sales Data 12 w.e. 24.12.23
5 IRI Ext | Marketplace Value Sales | Data to 09.07.23
6 Research commissioned by Purity Soft Drinks, survey of 1,500 UK consumers, 2023
7 Research commissioned by Purity Soft Drinks, survey of 1,500 UK consumers, 2023
As Scandinavian Tobacco Group enters the next gen arena with its new XQS nic pouches, Prianka Jhingan, UK Head of Marketing at STG, explains how the best things come in small packages
Can you please give an overview of your brand
Earlier this summer STG UK entered the next gen nicotine category with the launch of XQS pouches. This new range has been created in Sweden, the home of nicotine pouches, and has been available from May onwards, competitively priced at just £5.50. XQS has launched in a range four great flavours with a variety of strengths: Tropical, Blueberry Mint, Cool Ice and Arctic Freeze. While the Tropical and Blueberry Mint variants give users a fruity burst of flavour, the Cool Ice and Arctic Freeze variants offer minty flavour and an icy, cooling sensation. All four variants come in fully recyclable packaging and smaller-sized pouches for a better fit.
How is your brand currently performing?
It’s very early days, but the anecdotal evidence we’re getting from retailers and consumers is already very positive. We really believe in this brand and think it genuinely brings something different to the market, and that’s for two specific reasons. Firstly, and most importantly, XQS is all about high quality and long-lasting flavour which we feel confident is better than the other brands out there. We know once consumers try it, they love it! Secondly, it would be the uniquely smaller-sized pouches which ensure a perfect and delicate fit under the lip.
How is the nicotine pouch market currently performing?
Nicotine pouch sales are really gathering pace in the UK, with the category now worth just over £90m* in annual retail sales – and this figure doesn’t include sales taking place online. This is because many adult smokers have been transitioning over to next gen products such nicotine pouches over the last few years, so they have become an increasingly important part of the mix for convenience retailers. And with the upcoming disposable vape ban due in April next year, this is likely to mean many more consumers will be looking for alternative next gen products, so we’d advise retailers to talk to their regular customers to let them know what their options are. Nicotine pouches like XQS are likely to see a surge in sales as they offer consumers a very credible and attractive alternative due to their exciting flavours, discreet nature and ease of use.
I think in general nicotine pouches tend to be consumed by a mix of customers. Almost certainly the largest group will be transitioning smokers who are moving away from tobacco and into the next gen nicotine category. But there are also other groups who are enjoying nicotine pouches too, whether they be young urban professionals, trend setters or more socially conscious young adults. For XQS, we believe our sweet spot is targeting those young urban professionals and trend setters who are existing pouch users and value taste, quality and are willing to try new innovative brands.
How are you supporting your brand and NPD?
Firstly, from a trade perspective, our growing sales force is connecting with thousands of convenience retailers on their visits this summer to talk them through XQS and explain what merchandising and point-of-sale materials are on offer to help maximise sales. To complement that, we also have a series of educational wholesale depot days planned throughout the remainder of the year, when we will visit high-footfall wholesalers to showcase XQS, talk about our strong brand heritage and talk the visiting retailers through the uniqueness of the product. So, watch out for those!
Then, to help drive consumer demand we also have a major summer activation program underway to get “cans to hands” and help bring XQS into the minds and pockets of thousands of consumers in a variety of ways. This will include an exciting mix of sampling at festivals, city sampling takeovers in major cities across the UK, office-drops and social media advertising.
How important are independent retailers to your brand?
Independent retailers are very important, as a large percentage of pouch sales go through them, so our sales reps are working hard to give retailers the information and sales material they need to ensure the launch of XQS is a success in their stores. As it’s a new entry into the category which consumers may not yet be aware of, XQS is best cited in multiple locations in-store. We currently offer three different display solutions to accommodate varying store space availability and to ensure maximum visibility to those entering the store. We’re confident the bold and colourful branding really stands out in store which, along with the prominent RRP communication, should prove attractive to existing nicotine pouch users.
What trends are occurring in the sector?
Nicotine pouch users are motivated by flavour more than anything, which is one of the reasons we feel so confident in the future for XQS. The predominant flavour is definitely mint but fruity flavours are also proving popular with consumers. Aside from flavour, there is also a move towards stronger variants with nearly three quarters of sales classed as “strong” or “extra strong”.
Describe your brand in three words …
Disruptive, Irresistible, Bold
*IRI Marketplace, Value and Volume sales, Time Period: Apr 2024