Keep it sweet | In focus: Treats

Added to this is the fact that during difficult financial times, this category flourishes the most as shoppers look for affordable treats to have at home or on the go, representing a critical opportunity for retailers to grow footfall and sales.

Broad portfolio
To make the most of the category, retailers need to stock a broad range of products available to meet different consumer needs at different price-points.

Matt Collins, trading director at KP Snacks, says: “Our KP Snacks range offers the broadest portfolio of tasty snacks across all segments, with something for everyone and all occasions.

“From popcorn to nuts to pretzels and, of course, crisps, our range creates value and generates demand by meeting all consumer needs with a wide range of products delivered in all formats (singles, multi-packs, sharing) up and down the value spectrum and to suit all pockets.”

Different formats, newly developed products and nostalgia are the key driving trends in the category. Fox’s Burton’s Companies (FBC UK) has found the nostalgia of its Jammie Dodgers and new experiences offered by the likes of its Fox’s Fabulous Chocolatey Indulgent Centre Cookies are equally popular.

“Our customers have stayed loyal, showing that consumers continue to purchase well-loved, branded biscuits,” says Colin Taylor, trade marketing director for the UK at Fox’s Burton’s. “Just take one of our most-loved biscuits, Maryland Cookies, as proof, which has a 48% repeat rate with shoppers.”

Affordable indulgence
The brand is also developing different formats to create more snacking occasions within sweet biscuits. One example of this is growing the mini biscuits segment by launching Maryland Choc Chip Minis and Party Ring Minis.

As recessionary trends continue, consumers are spending more time at home, with 35% of people planning to significantly reduce how often they go out in the coming months. As a consequence, the ‘big night in’ is growing as shoppers look to make evenings-in feel more special, with 62% viewing snacks in the evenings as an affordable treat.

In line with this trend, the sharing segment in treating is strong, worth £1.68bn and growing at 13.7%. Says Collins at KP Snacks: “Our portfolio of sharing products offers the perfect snacks for all occasions. Ideal for cosy family nights spent watching films or casual family get-togethers, we have an offering to suit all quality time with family and friends.”

Premium treats
Special treats are growing by 16% year on year and contribute £233m to the overall sweet biscuit category, which is worth £2.86bn. Biscuits and cakes are among the few categories where shoppers are willing to spend money, especially during tougher economic times.

Consumers also often turn to the brands they know and love when money is tighter. “We have seen the ‘premium treat’ segment growing and it is now worth £297m a year and growing by 16% year on year,” adds Taylor.

“Shoppers are looking for an affordable luxury and biscuits provide an accessible treat. To offer even more choice for shoppers, FBC UK expanded its Fox’s Fabulous Chocolatey range with the launch of Fox’s Fabulous Chocolatey Indulgent Creams.”

Hill Biscuits believes it’s the variety and quality of biscuits that are essential factors in driving consumer purchases.

Frank Bird, Hill Biscuits’ chief executive, says: “To effectively encourage spending within the category, it’s vital to provide a wide range of options at different price-points, enticing both new and returning buyers.

Moreover, offering smaller pack formats caters to budget-conscious consumers, enabling them to make smaller and more frequent, affordable purchases that align with their financial constraints.

Repeat purchase
“Our best-performing range in the past year at Hill has been our smaller 150g pack formats, featuring eight cream sandwich biscuits including custard and chocolate, as well as other family favourites like Coconut Rings, Ginger Rings, and Shorties.

“These smaller pack sizes have resonated well with our consumers, offering excellent value for money and encouraging repeat purchases.”

Cake Bars are another segment growing in both value and volume, with Maltesers Cake Bars the second-best seller with a retail sales value of £3.9m a year. To capitalise on this, Mars Chocolate Drinks & Treats (MCD&T) has just launched a new variant, Raspberry Maltesers Cake Bars.

Michelle Frost, general manager at MCD&T, says: “We believe the strength of the Maltesers brand is attracting new shoppers to the cake bar aisle. We are confident that our new Raspberry Maltesers Cake Bars will continue to add incremental growth to the category.”

Morning goods
Sweet bakery is an essential part of independent retailers’ treats offering and the St Pierre brand claims to be synonymous with this, especially during difficult financial times. An attractive selection of morning goods and other sweet bakery items helps mark stores out as ‘go-to’ places for shoppers to meet their needs for sweet treats, at home or on the move.

Rachel Wells, commercial director at St Pierre Groupe, says: “Shoppers continue being careful with their cash, but morning goods and sweet bakery remain an everyday affordable treat.

“The move towards premiumisation hasn’t slowed in this staple category, and premium brands like St Pierre give consumers an affordable opportunity to ‘trade up’.

“The ongoing financial pressures have made the shopping audience more discerning, but offering an appetising mix of indulgence and impulse buys, including options for when shoppers want something a bit more special for a celebration, will still drive sales in this sector.”

Sugar confectionery
The total UK sugar confectionery market is worth £1.6bn and is one of the top five categories purchased on impulse in convenience stores.

Derek Baker, trade marketing controller at Perfetti Van Melle, says: “Sugar confectionery is a resilient sector, as it delivers lifts and treats for its consumers. 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.”

The premium gifting confectionery category is a huge sales area for convenience and retail stores. Chris Smith, partner brand manager at World of Sweets, explains: “During seasons, shoppers are willing to alter their normal purchasing habits to treat themselves, family and friends. Being well stocked in both gifting and impulse lines will help retailers meet consumer demand throughout the year.

“This year, we’ll see that shoppers are willing to spend more on premium gifting for their family and friends instead of opting for normal and traditional value-driving gifting that’s common in supermarkets. Our chocolate liqueur brand Anthon Berg is spot-on when it comes to premium gifting.”

Location restrictions
HFSS regulations mean that in some stores, shoppers need to get used to walking down the aisle to spot any offers rather than relying on finding their favourites on gondola-end displays.

As a way of bypassing these new restrictions, many manufacturers have launched HFSS-compliant products. “We would expect to see more HFSS-compliant SKUs in the future, which may lead to a resurgence in growth for the healthier sweet biscuits category overall, which includes FBC UK’s Skinny Cookie Company brand,” says Taylor.

“Our responsible approach is important as a manufacturer of leading treat brands. We will continue to offer a variety of products in a range of formats that help our consumers make responsible choices and enable them to enjoy treats as part of a balanced diet. We believe a focus on portion control and responsible treating is the best approach.”

Perfetti Van Melle believes its sugar-free alternatives allow people to make their own choices. Baker says: “We remain the leader within the sugar-free category, with sales continuing to grow.

“Confectionery is one of the top five categories purchased on impulse in convenience stores. Offering a full range that supports the government’s HFSS guidelines of under 150 calories per pack allows Perfetti to be closer to these impulse purchases.”

Healthier options
JNCK Bakery takes a strong stance, saying it’s time that brands and manufacturers recognised that the demand for treats now sits alongside a need for health as consumers become increasingly aware of ingredients and the overall product journey.

Alex Brassill, founder of JNCK Bakery, says: “Healthy eating has become mainstream, with most consumers expecting foods and beverages that meet increasingly nuanced attributes of health and wellness, ethics and sustainability. What hasn’t changed is consumers’ delight in products that are indulgent and delicious.

“Treats need to have less fat, salt and sugar – but it goes beyond that. They need to have some nutritional value. Based on research carried out at JNCK Bakery, we think just 5% of healthy snacking products are actually healthy.

“We believe the food industry must take more accountability for improving the nutrition of the nation, but that doesn’t mean people should be denied tasty treats.”

Top 5 merchandising tips for treats

❚ Merchandise sweet biscuits within the biscuit fixture alongside multi-packs and other biscuit offers to create a destination zone for consumers.
❚ Sales growth can be unlocked through dual-siting products within other associated categories, such as with tea and coffee.
❚ Place sweet biscuits in high-traffic areas where shoppers frequently pass to increase visibility and encourage impulse purchases.
❚ Stock a variety of flavours, textures, and formats to offer choice in the leading brands – they provide peace of mind and always sell first.
❚ Add signage and POS for a stand-out fixture that builds visibility in-store. Talk to your rep about compelling deals to advertise at the till, such as ‘two for one’ offers.