Talking Retail Grocery and product news for independent retailers
Last year, Christmas shopping habits were sent into a tailspin only a few days before 25 December when emergency lockdown rules were suddenly imposed almost without warning and people flocked to their local convenience stores to pick up last-minute items.
Many retailers have managed to maintain these customers, so keeping your store well-stocked with festive essentials will send the message that you are a one-stop-shop for all their Christmas grocery needs.
“Longer opening hours and the fact that convenience stores serve shoppers locally gives them an advantage over larger stores when it comes to catering for time-pressed consumers and top-up shoppers during the festive period,” says Scott Snell, vice president of customer at biscuit company Pladis. “That’s why stocking up on – and regularly restocking – the core bestsellers, alongside popular sharing and gifting products is vital.”
Smoother shopping
When shoppers are coming in last-minute, quite often they will be feeling stressed and anxious to find what they need, so having recognisable brands most customers are familiar with can help ease this worry and make the shopping trip smoother. “When it comes to putting on the perfect spread at Christmas, shoppers want to see the products they rely on and trust year after year,” says Courtney Lewis, customer director for independent convenience and wholesale at Premier Foods. “
By having trusted brands, such as Bisto, Paxo, Oxo and Ambrosia, this can helpretailers provide local shoppers with easy access to Christmas food buys and top-ups. Our festive best-sellers are family favourites and across the convenience channel this range will stand you in good stead in supplying your customers with the essentials they need.”
Lewis suggests stocking the following Premier Foods products: Bisto Favourites Gravy Granules (190g), Bisto Chicken Gravy Granules (190g), Bisto Best Beef 200g, Bisto Best Chicken (200g), Oxo Beef 12s, Oxo Chicken 12s, Paxo Sage & Onion Stuffing (170g), Ambrosia Custard (400g), Ambrosia Rice Pudding (400g), Bird’s Custard (400g) and Bird’s Strawberry Trifle (141g).
“In the winter months leading up to Christmas, remind your shoppers to pick up the essentials with a dedicated display and point-of-sale material. Dual-site favourites such as Bisto, Oxo, Paxo, Ambrosia and Bird’s to help drive sales,” she adds.
Christmas essentials can also be found in the chiller aisle, especially within the cheese category, which increases in popularity over the festive season. Cheese is a year-round must-stock and vital for any top-up shop, as it is bought by 99% of UK households. But according to Allison Wallentin, convenience category manager at Saputo Dairy UK, cheese’s importance grows at Christmas, when many households turn to cheese for festive entertaining.
“Indeed, cheese sales enjoy a seasonal boost in the four weeks up to Christmas, typically seeing a double-digit uplift versus year-round average sales,” she adds.
Chilled essentials
Héloïse Le Norcy-Trott, group marketing director for Lactalis UK & Ireland, says that over the last three years, 72% of cheese sales in December came from a cheese type that sees higher-than-average sales during this month. “Therefore, we recommend retailers stock up on premium, hot-eating, blue, selection packs, as well as hard and soft specialty cheeses in the run-up to Christmas. With so many of these cheeses benefiting from increased sales inDecember, it is important to meet consumer demand.”
Retailers should introduce these cheese types as early as possible to capitalise on the potential sales, as Le Norcy-Trott says seasonal cheeses see an increase of almost 35% during October and November. Shoppers are looking to spend more money on premium cheeses during this time of year, she adds, with the average price per kilo going from £6.47 during an average month to £7.07 over Christmas.
In Continental cheeses, she says the average price moves up from £7.61 to £8.26. With this increase, the average cheese shopper will spend £12.86 during December versus £9.58 during an average month. “Our portfolio of premium cheeses from Président is a must-stock for retailers.
“The range includes Président Brie (the number one selling branded brie), Président Camembert (the number two selling Camembert) and Président Emmental (the number one selling branded Emmental cheese). Président A La Carte Crispy Bake with Brie and Seriously Nuggets are also best-sellers and represent the fastest-growing and top-contributing brands to absolute value and volume growth in hot-eating cheese.”
Notable growth
The cheeseboard is an essential part of Christmas festivities, says Wallentin, and can form part of a “panic, distress purchase”, especially if shoppers are impulse-buying for last-minute guests. She says retailers should provide their shoppers with a range of options, including British cheeses.
Saputo Dairy’s Cornish Cheddar brand, Davidstow, grew by 38% in the four weeks leading up to Christmas last year, ahead of the wider block Cheddar sector, and this performance looks likely to repeat itself this time around. Jonathan Westlake, Davidstow brand controller, says: “Davidstow appeals to shoppers who are passionate about their cheese and care about depth of taste as well as provenance and heritage.”
Saputo Dairy’s Cathedral City block range grew by 8% in the four weeks to Christmas 2020 versus the annual four-week average, with “notable growth” from mild, extra-mature and vintage strengths. Wallentin says mature also maintained a strong performance in convenience stores over the 2020 festive period.
“Cathedral City remains the undisputed nation’s favourite cheese, bought by 47% of UK shoppers, thanks to its consistently high quality and rounded, accessible taste profile, and its block range is the brand’s heartland. Cathedral City 350g Mature and Mature Lighter blocks make up the top two block lines in convenience, while Extra Mature isn’t far behind. Cathedral City Vintage is the UK’s number one Vintage Cheddar block.”
Big celebrations
No sharing cheeseboard would be complete without a range of crackers and savoury biscuits and this year the cheeseboard is set to be bigger than ever.
Snell from Pladis, owner of cracker brands Jacob’s and Carr’s, says: “With many social occasions axed or restricted to very small groups, there were fewer opportunities for seasonal snacking during the festive period last year. However, we are anticipating big celebrations this festive season, as consumers make up for the time missed due to last year’s restrictions.
“We expect this to result in larger-volume, higher-value purchases towards the end of the year – giving independent retailers a chance to cash in on a huge sales opportunity that far outstrips the typical £1.6m spent on seasonal savoury snacks in the channel during the festive period each year. Retailers looking to make the most of this should stock up on products from Jacob’s, as the brand continues to perform exceptionally well, with value sales that significantly outpace category growth – 18% versus 3%.”
Pladis recently launched a Jacob’s Heritage Tin, a vintage-style 300g tin featuring a selection of the brand’s bestselling crackers, including Jacob’s Cream Crackers and Jacob’s Digestives. The company has also expanded its Carr’s Melts range with a Warm Chilli flavour, available in a 150g pack retailing at £1.49, which is a “must-have addition to any festive snacking spread or top-tier cheeseboard”.
The company has expanded its Carr’s Melts range with a Warm Chilli flavour (150g, £1.49), which is “sure to be a hit among shoppers seeking high-quality, premium snacks this Christmas”, as well as a Carr’s Melts selection pack, containing Carr’s Melts Original, Carr’s Melts Cheese and the new Carr’s Melts Warm Chilli flavour.
Premium quality
Among the in-demand products at Christmas are savoury snacks, says Matt Collins, trading director at KP Snacks, and the crisps, snacks and nuts category is worth £300m during December alone. To capitalise on this, retailers should focus on sharing formats in the winter months, especially as this year’s celebrations are predicted to be bigger than ever.
“After the disruption and restrictions of last year’s Christmas celebrations, the nation is eager to celebrate with friends and family again this year. The sharing category thrives during the Christmas season, with a 74% increase in packs bought versus the rest of the year.” Christmas also sees more shoppers trading up to premium sharing products, with 26% willing to spend more on higher-quality crisps, snacks and nuts over the Christmas period.
“Tyrrells 150g sharing packs are a great treat for celebrations, made even better by the festive packaging rolled out across the range. Offering classic and tasty flavours including Mature Cheddar & Chive, Sea Salt & Cider Vinegar, and Lightly Sea Salted, Tyrrells is a premium brand with 90 Great Taste awards to its name.
“With delicious flavours and a range of formats, the KP Nuts range is the number one branded nut, at more than six times the size of the nearest branded competitor. Popular KP Nuts flavours – Original Salted, Dry Roasted, and HoneyRoasted Peanuts – will be available in large sharing packs and KP Caddies, ideal for social gatherings this festive period.
“For shoppers looking for something a bit different, KP Nuts flavours and coated nuts are perfect. This range not only includes the classic Honey Roast variant but also Aromatic Thai Chilli Coated Nuts, which launched earlier this year.”
Maximise spend
Many distress purchases will also be for last-minute gifts for unexpected guests, which is where the premium confectionery category comes into its own. In 2020, because of the sudden lockdown restrictions, says Andy Mutton, managing director of Storck UK, there were fewer opportunities to buy gifts, which meant the usual sharing confectionery formats were less successful than previous years.
This year, however, with almost all Covid restrictions lifted (at the time of writing), there could be an increase in shoppers popping in for a last-minute premium gift. Mutton says Storck’s Bendicks chocolate brand saw an almost 20% growth last year despite the lockdown and the fact that get-togethers were smaller.
The brand’s traditional Mint Collection box is the “number one premium mint collection brand in the UK” and contains a selection of Bittermints, Mint Crisps, Mint Fondants and Dark English Mints. Earlier this year, Bendicks launched Bendicks Mint Fondants, following a 23% increase in dark chocolate sales in the last year.
“As more shoppers upgrade to premium boxes of chocolates for the festive period, Bendicks Mint Fondants are a great addition to retailers’ shelves, as they will attract those shoppers looking to trade up and help maximise shopper spend.”
Storck’s Merci chocolate tablets are available in a variety of flavours, including Coffee & Cream and Praline-Crème, in 250g bars said to be “ideal as an everyday gift for a neighbour or teacher” and a 400g format “for that more-special gift during the festive period”.
Sanders says Merci is the second fastest-growing brand in the inlaid boxed chocolate category, growing by 30% year on year. “This is especially significant given that the overall category saw declines of 12% over the same period. Offering a unique selection of flavours and impactful design, Merci is a great addition to retailers’ shelves this festive season.”
Trading up
As well as premium confectionery and gifts, shoppers will be on the lookout for premium soft drinks to “elevate” their Christmas parties. Phil Sanders, out-of-home commercial director at Britvic, owner of Pepsi and J2O, says: “Pre-Covid-19, premium products were already becoming a key macro trend, which has only been accelerated by the pandemic as consumers looked to treat themselves during a time of uncertainty. This trend has driven consumers to choose premium drinks more often, creating trade-up opportunities for retailers.”
Adult soft drinks have become an important soft drink offering at Christmas, he says, and J₂O is one of the most well-known and popular soft drink brands that consumers agree is worth paying for. “Therefore, stocking the range during the Christmas period will not only add a pop of colour to chillers, but also give retailers the opportunity to increase basket spend and drive sales with a variety of offerings to suit everyone.
Alternative serves
“There is a growing and varied demographic to cater to with low and no alcohol alternatives. As we gear up for celebrations, stocking J₂O Glitterberry during the Christmas season will appeal to those looking for a great alternative to alcohol, while encouraging shoppers to trade up over the festive period. This festive blend of grape, cherry and winter spices with edible gold glitter is perfect for adding some sparkle to any Christmas drinks occasion and is rare in its appeal across age categories.”
Social mixing
Approaching the Christmas period, Sanders says mixers will have a bigger part to play as consumers want to host elaborate celebrations with friends and family at home. Retailers would benefit from stocking larger bottles of mixers that are suitable for sharing occasions, such as Britvic’s own branded 850ml Tonic Water.
“Towards the end of last year, we launched Britvic’s branded tonic water into convenience for the first time, and the pub classic is now available to wholesale in an 850ml bottle. The move is supporting retailers in capitalising on the rising demand for traditional mixing products at home. This format will be a key product over the Christmas period as consumers prepare their cupboards and fridges to welcome people into their homes for celebrations.”
By Éilis Cronin, Content Editor
