We all know that the British public are serious about crisps and feel so strongly for the debate over “the best crisps in the world.” Crisps and snacks is a versatile category, capable of driving your sales while appealing to impulse shoppers. However with a rise in potato prices could this spell doom to come for this category?
A Bad Harvest
We were hit with a large heatwave, Beast from the East and floods last year as extreme weather conditions made it difficult for farmers. Potatoes went into the ground later and conditions were too chaotic for many to grow. As a result inflationary pressure has been put on many retailers. The crisp category has not escaped this as the UK Potato Processors Association warns that quality and stock issues could last until later this summer.
Big Brands vs Own Label
Branded prices increased at a faster rate than own labels last year. As a result own label outperformed big brands with an increased boost of 6.7% in increased value. This suggests that shoppers are more reluctant to pay higher prices for their habit. This isn’t good news for big brands as data shows that prices of big brands are expected to rise once again. Inflationary pressure from the poor harvest is impacting this category and is expected to increase.
Switch To Healthy Options
Across so many categories in the c-store sector consumers are calling out for healthier & eco-friendly products at a reasonable price. Healthier crisp alternatives are being adopted by many big brands as consumers become more health conscious. Luckily many of these alternatives avoid using potatoes – which is great for suppliers – but they also make use of the growing trend of “free-from” food products.
Pringles brand of Rice Infusions & Kettle’s Potato and Veggie range appeal to consumers who are becoming more mindful snackers. They expect healthier products not only to be low in fat, salt and sugar, but also to offer benefits such as protein or fibre.
Sharing Is Caring
Once upon a time consumers would lean towards more standard-sized bags which were mostly dominated by Walkers. But customers are now moving more for £1 sharing bags as they are more willing to try quirkier varieties. As sharing bags continue to grow in popularity, large multi-packs struggle to remain relevant. Pringles have seen the strongest growth after reeling from a near £20 million blow. Each core range has seen an increase in value sales with its campaign launched around the World Cup.