Sugar confectionery: how to drive higher cash sales

A market valued over £1.4bn and growing at over 16% sugar confectionery remains a significant opportunity for ambitious convenience retailers [IRI] despite the economic challenges. As a category there is a unique opportunity for convenience retailers who can prioritise sugar confectionery within their stores.

Sugar confectionery in both convenience and symbols & independents stores is growing in line with the overall sugar market, but outperforming the market are the biggest sub-categories of share bags and kids sugar confectionery. Convenience store growth in share bags is 15% and 16% in kids sugar confectionery [Circana] with symbols & independents seeing a rise of 17% for both share bags and kids sugar confectionery respectively [Circana].

It is fundamental for convenience retailers to ensure that they are not only stocking the best-selling lines but also are introducing new products to keep the category exciting and engaging. Within kids confectionery, it is also important for retailers to ensure that, within the range, there is a mix of price points, with a strong representation of premium SKUs as this will drive higher category cash sales. In share bags, price-marked packs remain key to category growth, with unit sales outperforming total sugar confectionery in convenience, up 10% [Circana]

Families still want to reward their children with treats, and Bazooka’s research shows they are buying locally; children prefer going to local convenience stores rather than supermarkets as they find a greater selection of confectionary treats on offer. In addition to direct confectionery sales to kids, parents accompanying them in-store will treat their children, and will also be inspired to top-up their own shopping.

In-store merchandising

Bazooka Candy Brands carried out research with consumers in the convenience channel to discover how retailers can make the most of their confectionery fixtures. The research shows a potential incremental turnover of 20% for convenience retailers where sugar confectionery is fully executed [Bazooka]. Here are our key findings and recommendations:

Your top tips and takeaways from Bazooka

1. Create an enticing destination and stand-out zone in-store for kid’s confectionery. Ensure it is planogrammed properly and features all relevant communication. Kids are often regular visitors to your stores and know exactly where they want to go.

2. Create blocks of strong colours and stand-out for premium products to maximise value per unit sold. Did you know 70% of FMCG purchases are impulse driven, highlighting the importance of your confectionery feature [POPAI].

3. Maintain a core range of best-selling SKUs but allow some space to introduce and rotate new products to keep kids excited and wanting to come back.

4. Arrange shelves by putting cheaper and smaller unit products on the lower shelves and then building up by price while grouping product type and brands.

5. Kids’ eye level is lower than adults and they look down when shopping. Put the best-sellers at eye level (<1M for children aged 6-11 years).

6. Younger children spend time at shelf, older children decide quickly and rarely notice free-standing displays.

7. Have a range of different priced SKUs but ensure that there is representation of the best-selling premium lines to generate more cash sales.

8. Ensure price points are clearly communicated on-shelf where children make their decisions; buying sweets is often a child’s first interaction with money and they can be embarrassed when they find they don’t have the right money at the counter, so make it as easy for them as possible.

9. Younger children can easily feel intimidated, so make them feel at ease with a smile. Parents also choose stores where their children feel comfortable.

10. Benefit directly from a strong confectionery offer but also offer across categories for families.

Plan your shelf

Here are our planogram recommendations for both hanging bags and core impulse confectionery based on our top merchandising tips.

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Products you should be stocking

While it is important to stock variety in your store, Bazooka believes you have the biggest chance to win within the category drivers of ‘sweet reward’ and ‘socialising’. Ensure you are stocking a variety on gummy and chewable share bags and an extensive collection of kids’ novelty and lollipops to ensure you are making your store the local ‘go to’ for all your consumers’ confectionery needs. Here are our four top products to get you started:

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Juicy Drop Pop: Bazooka’ best-selling SKU across multiple markets, this lollipop with sour gel is truly unique and loved by kids across the globe. Over 4 million pops sold in stores in the UK in the past 12 months and it is still growing by 92%. [9]

Juicy Drop Gummy Dipperz: this new launch for 2023 followed huge success in the US, which saw the product soaring to the No.4 new confectionery item in 2021 [10]. Since launching in the UK, it has reached sales of £1.4m+ and has become a top 10 kids sugar confectionery SKU in symbols & independents [11].

Bazooka Mix-Upz: one of the top-performing Chewables from Bazooka, up an impressive 1,000+% [12], this SKU is perfect for hitting the socialising need state as it comes in both small-portion controlled bags as well as large share bags in both 120g (£1 PMP) bags and even larger 140g bags. The fruity chews with sour powder and sweet gel give consumers a variety of taste and flavour sensations in each pack, creating a point of difference against other chews in the market making Mix Upz the perfect choice to add variety to your confectionery feature.

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On top of this retail success story, Gummy Dipperz went viral on TikTok creating a great demand for the product not only in the US but across the pond. The soft chewy gummy sticks that dip into delicious thick sour gel so anyone can create their perfect mix of sweet and sour. Dip as much or as little as you want! Designed to be good for on-the-go, each resealable gummy cup is made with firm plastic and a lid that clips shut so it can travel nicely. Juicy Drop Gummy Dipperz comes in two mouth-watering sweet and sour flavours: Strawberry and Raspberry.

^{Sources: 7 Research through Family, Kids & Youth 2019; 8 Circana EXT MAT Data to 18/02/24 Value Growth % YA; 9 Circana EXT MAT Data to 18/02/24 Value Growth % YA; 10 IRI L26W Sales ending 12.26.21, MULO, FE Non-Seasonal Non-Chocolate Confectionery; 11(Circana Symbols and Independents , Kids Sugar Confectionery, Value Sales, MAT to (8/2/2024); 12 Circana EXT MAT Data to 18/02/24 Value Growth % YA}

What to do next

Creating a confectionery destination in-store using our top tips and top SKU recommendations is a great way to optimise your fixture for increased sales. For more tips and information on Bazooka Candy Brands please go to bazookacandybrandsinternational.com