1. Indulgent treats make up 66% of the healthy snacking category
2. Shoppers will pay for premium protein – and you’ll get premium profits
3. 76% of consumers believe nuts provide a positive source of energy
4. The sports nutrition category is worth £29m in the impulse channel
5. Knowing your audience is key to sales success
1. Indulgent treats make up 66% of the healthy snacking category
A snacking report released last year by Graze revealed that 67% of those surveyed said that they’d expect a snack that tasted good to not be good for them.
Obviously these people had not heard of the phenomenon that is Grenade. The brand’s low-sugar, high protein bars come in a range of indulgent flavours and with indulgence making up 66% of the healthy snacking category, they are a big hit with consumers. Indeed Grenade protein bars account for 39% of the healthier snacks category (IRI data).
Luke Morgan, Grenade’s head of convenience, says: “Taste is crucial for enticing customers into the category and keeping them coming back. Customers are looking for great-tasting products that they can enjoy and that satisfy their craving for a treat. However, with the amount of protein being a primary driver for purchase, they must contain enough protein to deem them functional. This is all alongside ensuring the range meets low-sugar credentials so consumers can enjoy them guilt-free. Put simply, they need to taste great but also have high protein and low sugar, and Grenade delivers on all three.”
Grenade also keeps consumers coming back with its new flavours, the latest of which are Grenade Oreo and Grenade Oreo White which combine the triple-layered protein bar with Oreo biscuit crumb and crème. “Combining both of these innovative flavours within your healthier snacking range will guarantee consumers have a product they will recognise and enjoy,” says Morgan.
He adds that the blurring of the lines between the taste of protein bars and confectionery, such as with the launch of Grenade Oreo, has meant that consumers see value in picking up a product that contains the additional protein, has less sugar but still keeps the indulgence of a chocolate treat.
“The Grenade Oreo flavour, along with others such as Chocolate Chip Salted Caramel, outsell many popular confectionery products (IRI data), showing their credentials as a must-stock product in a snacking range.”
In addition, Morgan says the higher POR on protein bars – up to 40% – coupled with strong rates of sale, mean retailer make their space work harder and generate more profit.
And as impulse products, he says it’s important retailers place Grenade bars where customers would expect to find them, alongside traditional confectionery or near to the till.
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2. Shoppers will pay for premium protein – and you’ll get premium profits
Lean beef has long been considered one of the best sources of protein which is why many shoppers seek out meat snacks to give them energy.
Jack Link’s is the category leader in meat snacks, tripling its retail sales value in the past five years and driving overall category growth (Nielsen). Jack Link’s Beef Jerky Original 25g has the highest unit rate of sale in the category, offering a smaller, entry-level product to attract new buyers. This is typically sold for £1.70-plus per pack.
The brand is particularly popular among men aged 20-45 years old, with an active lifestyle who enjoy jerky to help power them through the day. “These shoppers value high protein snacks for energy and are willing to pay a premium for quality,” says Shaun Whelan, Jack Link’s convenience/wholesale and OOH controller.
Jack Link’s invests £1.5m annually in promoting the brand, in particular with sampling at festivals and gaming events.
“We are using social media very heavily to help build category awareness. As Jack Link’s is mainly consumed by men who are passionate about fitness, sports and gaming, social media has been key to reach these audiences. We have been connecting with digital influencers in these areas to showcase the variety of products available in the range and how Jack Link’s Beef Jerky is the ideal snack for people leading an active lifestyle.”
Jack Link’s also sponsors the e-sports team, Fnatic, using its platform to boost brand awareness and trial among gamers.
At shopfloor level, Jack Link’s recently redesigned its packaging to reflect the high-quality aspect of the product and to ensure better visibility in store. Whelan advises retailers to use dual and cross-merchandising (eg clip strips) to increase visibility and drive incremental sales.
Aman Uppal from One Stop Mount Nod, Coventry, has been stocking Jack Link’s products for some time. Last year he was one of the first retailers in the UK to set up a permanent display unit to hang the beef jerky products in a secondary location in his store.
“Sales of Jack Link’s were already good in my store,” he says, “but after I put in the new display unit I saw a massive uplift of 400% in sales across the three SKUs and since then sales have continued to be positive – delivering me high growth and high profits.”
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3. 76% of consumers believe nuts provide a positive source of energy
More consumers are actively choosing diets which incorporate more veg- and plant-based foods. Some 46% of 25-44 year olds believe it’s healthier and 38% believe it’s better for the environment (IGD Shopper Vista).
Matt Collins, sales director at KP Snacks, says nuts, in particular, are perfect for those looking for a healthy, plant-based snack with natural and functional benefits.
“Nuts have been recognised as an important part of a healthy and sustainable diet. They are excluded from HFSS legislation and represent a huge opportunity for growth,” he explains.
KP leads the category as the number one brand in nuts and is over four times bigger than its nearest branded competitor. The KP Nuts brand is currently worth £100.6m and is growing by 2.3% (Nielsen).
According to research firm Mintel, 76% of consumers recognise that nuts provide a positive source of energy and 24% of shoppers are looking to increase protein in their diet.
Says Collins: “KP Nuts plays well to these dynamics with its high protein and fibre content, as well as natural vitamins and minerals. Since nuts are naturally high in fibre and KP is the UK’s leading nut brand, we believe we have an important role to play in highlighting the fibre content of our nut range to consumers. We have rolled out fibre labelling across our portfolio of products and have pledged to use the power of our marketing to help people understand the fibre benefits of nuts and switch to higher fibre alternatives.”
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4. The sports nutrition category is worth £29m in the impulse channel
Circana data from late last year reveals that the sports nutrition category is worth £29m in the impulse channel, with £19m spent on protein bars and £10m on protein shakes.
What is more, protein bars and shakes over-index in the convenience channel. Independent convenience stores take 13% share of the category (£29m vs. £230m in the total UK), significantly higher than in most other grocery categories.
Matt Stanton, head of insight at DCS Group, says that while the stereotypical idea of a sports nutrition consumer is a regular gym-goer or fitness fanatic, the market is actually a lot broader than people assume.
“It’s important that retailers stock a range of products to suit the needs of different shoppers. Sports Nutrition shoppers are of all ages from 18 through to 55-plus, of all household incomes, and are split 52% male, 48% female (Glanbia Brand Health Tracker).
“Of shoppers who use sports nutrition products, 66% consume them at least once a week, and more than one in five (22%) consumes them more than four times a week.”
Stanton says key products to stock include the Grenade protein bars and shakes, which easily outsell other brands on the market.
He advises that protein bars be located alongside regular confectionery, to appeal to shoppers looking for healthier options. While protein shakes should be merchandised in chillers. Stanton says epos data from Grenade shows sales increases of 400% when the drinks are located in the chiller.
Meanwhile, Optimum Nutrition is a huge protein powder brand globally and Stanton says it is using its brand strength to bring exciting new products to the protein bar and protein shakes market.
“Convenience retailers should consider stocking Optimum Nutrition pre-workout shots, especially those with stores located near to gyms and sports facilities. These are taken just before a work-out or other sports activity and are best located at the till point in their shelf-ready packaging to maximise visibility and drive impulse purchases.”
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5. Knowing your audience is key to sales success
Forecourt shops have come a long way since the days of the small kiosk selling mostly Mars bars and cans of Coke.
Retailers have gone out of their way to diversify, offering different ranges for different customer needs – but it seems that many forecourt customers still prefer less healthy options when it comes to snacks.
Dan Perry, director of operations at Ron Perry & Son A19 Services, explains: “We do a healthy snacks range of sorts at present. We have tried all sorts of healthy snacks in the past – fresh fruit options, salads to go and vegan and dairy-free produce. We even dedicated a fair bit of cold shelf space to sushi, which seemed to take a while to take off, then peaked and sales dropped off a cliff. With our transient location on the A19, we tend to find that most customers are hankering for comfort food with a priority on taste and satisfaction levels rather than health benefits. We really tried to push the sushi, but it just didn’t seem to satisfy the average customer in terms of bang for your buck.”
That said, Perry offers a good range of dried fruit (apricots, mango, banana). “We found that the sales volume didn’t seem to match the shelf life on the fresh fruit and the dried fruit seems to be a happy medium. We also offer a wide range of organic and unsalted natural nuts (pistachios, cashews, almonds and brazil nuts) and dedicate a two-metre aisle to these offerings along with the protein bars/cereal bars. So we do dedicate a fair bit of shop floor to moderately healthy products.”
These healthier products are positioned by the doors, but Perry says the most popular path to purchase is via the Costa machines and Rollover counter.
“Sales on the health aisle are relatively steady if not massively impressive and we always see a boost at this time of year with the usual health kicks from customers in January. Protein bar sales tend to peak and trough throughout the year but the dried fruit is fairly steady.”
As for who is buying the products, he says HGV drivers tend to purchase the nuts and fruit in fits and starts while the bulk of the health aisle customers are aged18-30, and they tend to buy coffee/orange juice and a healthy snack.
Healthier snacks are not included in the site’s meal deals, but Perry says it’s something they might consider in the future.
It’s a similar story from Sharon Hughes, area manager at Plaistow Broadway Filling Stations.
She says most of Plaistow’s customers favour less healthy snacks – the typical crisps, salty snacks and chocolate that used to make up most of a forecourt shop’s business.
However, they do have customers who go in and buy Chicken Grabbits and hard boiled eggs. “These are the keep-fit people who buy this stuff all year round. They’re looking for fruit and nuts and healthy snacks. Protein products sell well to them too, particularly Mars Protein and Grenade bars,” she says.