BISCUITS

CATEGORY REVIEW: PLADIS

BISCUITS CATEGORY EYES £3BN LANDMARK

THE LATEST PLADIS ANNUAL BISCUIT REVIEW SHOWS CATEGORY SALES GREW £212M LAST YEAR,TAKING TOTAL SALES TO £2.96BN – AND PLADIS OFFERS SOME TIPS ON HOW TO KEEP THAT MOMENTUMGOING IN 2021.

Biscuit category captain pladis, the company behind brands such as McVitie’s, Go Ahead and Flipz, has launched its 2020 Annual Biscuit Review, which urges retailers to build on lessons learned to propel future growth.

After a bumper year for biscuits, which demonstrated the strongest growth in more than five years – fuelled by shoppers returning to classic ‘biscuit barrel’ products in their droves – pladis predicts the category will touch £3bn by the end of the year.

“Biscuits had an incredible year amid a tumultuous 2020,” explains Scott Snell, Vice President of Customer at pladis UK & Ireland. “And, while there were certainly winners and losers in this mix, overall, biscuits began to play an increasingly important role in consumers’ lives.

“This category has always been important to shoppers, and biscuits are purchased by virtually all British households (99.5%), but last year we saw more people reacquainting themselves with the category and buying in more frequently to complement an uplift in hot drink moments at home.”

TOP TIPS FOR 2021

CORE BISCUITS (STILL) MEAN BUSINESS

The Review sheds light on how changing shopper behaviour gave bestselling core products in the biscuit category a further boost.

Tending to sit within the booming Chocolate Biscuit Bars, Everyday Biscuits and Everyday Treats sectors, core products like McVitie’s Digestives (+25.6%) and McVitie’s Club (+17.2%) were central to the category’s success in 2020. In fact, the core was responsible for delivering 84% of total category growth as shoppers added an extra packet of the biscuit aisle’s bestsellers to their trolleys.

Within the core, the Top 10 Biscuit Brands grew in importance and significantly outperformed the solid sales success demonstrated the year before (+12.1% in 2020 vs+3.4% in 2019). This meant the Top10 Biscuit Brands represented £1of every £5 spent in the category –with seven of the Top 10 recording double-digit value growth.

“In the convenience channel this is particularly important as 80% of biscuit sales come from just 8% of products,” says Snell. “It’s crucial all retailers keep the shelves stocked up with these products as we can count on them to sell through and deliver growth.”

DRIVING GROWTH IN 2021

The review urges retailers to:

ACKNOWLEDGE ‘SAVVY SHOPPER’ BEHAVIOUR

The financial impact of the pandemic will impact different shopper demographics in different ways. However, perception of ‘value for money’ will be key and savvy shopping behaviours will take hold among those most financially impacted.

Action for retailers: Communicate value for money at fixture.

ENSURE SHOPPERS CAN INDULGE AT HOME

Premium biscuit options will remain relevant for shoppers wanting to treat themselves – these often benefit from a ‘lipstick effect’ as shoppers look to these products as small, permissible indulgences.

Action for retailers: Strengthen range of Special Treats.

FOCUS ON DRIVING IMPULSE PURCHASES ONLINE

Online shopping boomed during 2020 and this growth is anticipated to continue, driven by older shoppers. Because biscuits are an impulse category, retailers should ensure biscuits aren’t missed off the shopping list.

Action for retailers: Disrupt shoppers’ online journeys with creative executions, and drive interest in the category via NPD. Make impulse categories a greater focus in the convenience channel to drive impulse purchase when online shoppers visit stores.

EXPECT A RESURGENCE OF HEALTHIER BISCUITS POST-LOCKDOWN

As lockdown eases and consumers leave their homes more frequently, products like breakfast biscuits should gradually return to growth. Balanced and healthy diets to manage weight will remain top of mind for many consumers.

Action for retailers: Incorporate Healthier Biscuits helping weight management into range in response to returning demand.

USE NPD TO EXCITE CONSUMERS AND DRIVE GROWTH

Innovation in the biscuit category is an important driver of growth. What’s more, shoppers who have been stuck at home for the best part of a year will be searching for something new and exciting. Action for retailers: List NPD, particularly lines from trusted favourites, like McVitie’s.

DON’T FORGET THE CORE

Shoppers turned to trusted brands and bestselling products during2020 and fell back in love with traditional ‘biscuit barrel’ products that complement a cuppa. With home working expected to continue for many, the hot drink moment is here to stay. This will maintain momentum for Everyday Biscuits and Everyday Treats.

Action for retailers: Focus on the correct space allocation for best selling branded products. In convenience, retailers should stock the Top 10 biscuit lines as a priority, as 80% of sales come from just 8% of products in this channel.

PREPARE FOR A BIG CHRISTMAS IN 2021

Pent-up demand for a festive season filled with larger-scale celebrations and friends and family will mean Christmas 2021 is bound to be huge.

Action for retailers: List key gifting and treating Christmas biscuit lines early to take advantage of increased shopper demand.

PREPARE FOR CHANGES TO RULES AND REGULATIONS

A wide range of products, including biscuits, are likely to be affected by the Government’s intentions to further regulate products that are deemed to have high fat, sugar or salt content (HFSS). This year will be about the preparations for any potential changes in where and how shoppers will buy biscuits as a result.

Action for retailers: Work with manufacturers to identify the changes and their potential impact on the biscuit category. Allocate space to best performing products to avoid out of stocks and bring fixtures to life through in-aisle theatre and engagement.

To request a copy of pladis’Annual Biscuit Review of 2020,please email csaba.babak@pladisglobal.com

All data Nielsen Total Biscuits Market – 52 we 02.01.2021 and Kantar Total Take Home Grocery Sales – 52 we 27.12.20.