Breakfast

Tom Gockelen-Kozlowski

At a time when consumers are tightening their budgets and trading down where possible, breakfast is one of a small number of categories where wholesalers can claw back profit margin and drive growth, which suppliers agree with.

“Shoppers are being careful with their cash, but bakery is still an everyday purchase,” says Josh Corrigan, senior national account manager at St Pierre Groupe. “The move towards premiumisation hasn’t slowed in this staple category, and premium brands such as St Pierre give consumers an affordable opportunity to ‘trade up’ and elevate their everyday meals. The ongoing financial pressures have made the shopping audience more discerning, but there’s a real mix of indulgence and impulse buys that are driving sales in the sector when it comes to breakfast.”

Karen Heavey, brand manager for Kerrymaid, agrees that, as far as wholesalers’ key customers are concerned, the first meal of the day is vital. “Breakfast is an important day-part for caterers and retailers, both for dine-in and to-go options, with 51% of adults reporting they ate breakfast out of home in early 2022,” she says. “This figure is expected to increase as people return to workplaces more regularly. Meanwhile, brunch accounts for 5% of out-of-home meals, with consumers spending an average of £7.43 on the meal.

Healthier habits

A trend that has driven a lot of growth in this category of late is the rise of healthier eating habits. “Many consumers are now placing an even higher focus on their well-being – whether than be physical, mental or both – than ever before. In fact, 25% of shoppers are more influenced by health when shopping than pre-pandemic,” says Susan Nash, trade communications manager at Mondelez International.

Mondelez’s Belvita breakfast biscuit brand is said to contain slowly digestible starch, fibre and magnesium to provide consumers with on-the-go energy over four hours, according to Nash. In a nod to the current economic pressures facing shoppers, the brand has recently introduced a new £1.49 price-marked multipack format for Belvita Honey & Nut.

Supplier Viewpoint

Susan Nash Trade communications manager, Mondelez International

“Recent research has found that 19% of people are paying more attention to the nutritional value of their food than they did before the pandemic and that aspirations for healthier eating often takes most prominence in the morning.

“Morning snacks answer perfectly to these aspirations, offering consumers a quick and delicious way to get additional nutritional benefits into their daily intake.

“Recognising the importance of nutritious snacking, Belvita biscuits have a carefully crafted composition that consumers love and trust to deliver functional benefits to their mornings and beyond. They’re the only biscuit range with this proven slow-release benefit, and with the highest scores in taste credentials within its category, is the UK’s number-one healthier-biscuit brand.”

Kerrymaid Rich & Creamy Buttery

– This spread range allows foodservice operators to use the product on baps and other products straight out of the fridge.

A fifth of shoppers say they would choose a particular convenience store if they knew it stocked PMP products, and 56% of retailers say they have been selling more PMP products during recent times, which emphasises the importance of value within the category.

RTD coffee

One morning habit that millions of Britons have taken up over the past few years is a morning coffee. So, as summer approaches, so does the demand for iced-coffee options.

“This year, Boost Drinks diversified its portfolio with new products in coffee and stimulation,” says Adrian Hipkiss, marketing and international business director at Boost Drinks.

“The brand is building on its RTD Iced Coffee range with the addition of a Mocha variety. Within the RTD iced coffee sector, 75% of the sales value are made up of just four flavours – Latte, Caramel, Espresso and Mocha. Adding Mocha to the portfolio allows Boost to capture the consumer demand and provide more choice for customers.”

Belvita Honey & Nut – Mondelez International has introduced a new £1.49 price-marked multipack format on the bestselling Belvita flavour in the convenience channel, Honey & Nut.

Hipkiss adds that the RTD iced-coffee category is growing rapidly. To capitalise on the future growth and stock fast-growing brands, he recommends allowing for sufficient fridge space, highlighting the range of products on offer and allowing them to grab consumers’ attention.

One thing suppliers are keen to emphasise is that creating a strong breakfast range can provide options for customers throughout the day.

“Savvy wholesalers understand where the growth opportunities lie for their customers’ businesses, so versatile items, such as St Pierre Brioche Burger Buns and Sliced Brioche Loaf, are perfect for a broad range of meal occasions,” says Corrigan. “As hybrid working continues, the trend for at-home socialisation, including brunches, is likely to remain key, with hosts keen to impress with an ‘upgraded’ menu.”

Corrigan points to the extended shelf-life of the St Pierre range as being an added benefit, which helps to reduce the risk of wastage for wholesalers.

Whether your customers are delivering breakfast options in convenience stores or foodservice outlets, such as bakeries, restaurants or cafés, offering good-quality, great-value and wide-ranging options in your depots will help these businesses and yours capitalise on this important opportunity.

1. Breakfast means profit – Wholesalers and retailers alike know how keenly aware shoppers are of rising prices and the need to get a good deal. Yet, there are some categories and meals when the pressure to squeeze down margins in less intense, and breakfast on the go is a great example. There are products out there that are perfect for reminding shoppers that a little affordable luxury, such as breakfast on the go, is possible even in a cost-of-living crisis.

2. Healthier options are must-stocks – Post-pandemic, consumers are looking for healthier options to have for breakfast. Mondelez’s Belvita breakfast biscuit brand is an example of this and contains slowly digestible starch, fibre and magnesium to provide consumers with on-the-go energy over four hours. The brand’s aim is to attract new shoppers, help add value to the category and communicate value to price-conscious shoppers.

3. The iced-coffee trend continues – While the rising popularity of coffee shops is increasing the quality of hot coffee shoppers expect at shops and foodservice operations of all kinds, the iced-coffee trend is also in strong growth. This means suppliers are now investing in their RTD iced coffee ranges, and to capitalise on the future growth of this market, they recommend allowing for sufficient fridge space and highlighting the range of products on offer. l