One of our 10 Things You Need To Know About… Cakes & Biscuits

It’s a mixed picture for c-stores as far as cakes & biscuits are concerned. Cake value sales in indies and symbols have risen by 2.3% while biscuits suffered a 6.9% decline [Kantar 52 w/e 17 July 2016].

They still only account for 1% of the category’s sales though, but, according to Pladis, there is value waiting to be unlocked in the aisles. How? By focusing on better value to customers, with the size of the prize totalling £88m.

McVitie’s is actively targeting this market as part of its Convenience & Impulse Strategy through channel exclusive launches and in-store merchandising support rolled out in September. These include a new PMP range and Biscuit Barrel range.

“The McVitie’s Chocolate Digestives PMP range offers a more competitive headline price in line with multiple c-stores and will drive base sales of the bestsellers,” says Sarah Lonorgan, director of customer marketing, Pladis. “The new 89p McVitie’s Biscuit Barrel range brings together some of the UK’s best loved biscuits including Custard Creams, Bourbons and Shorties under the nation’s favourite biscuit brand. These offer great value and an improved cash and percentage margin opportunity for retailers.”

Others are seizing the on-the-go opportunity, with smaller packs for handy individually portioned grab & go consumption – something Claudia Strauss, UK MD at research agency Future Thinking, says consumers are happy to pay more for.

“Handy packs and small sizes across all categories, including biscuits, is testament to what the consumer is demanding,” she says. “The convenience of being easily accessible, suitable for travelling and portioned or calorie-restricted is worth paying more for, and consumers seem happy to do so.”

In cakes, Premier Foods is seeking to expand the proportion of its single pack cakes from 40%-50% on branded cakes. “Half of our cakes sold will be on single portion, and each of those will be fewer than 150 calories,” says Graham Hunter, MD of sweet treats at Premier Foods.

The manufacturer has extended on-the-go variants for Mr Kipling and has expanded its team with a focus on on-the-go and convenience.

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10 Things You Need To Know About... Cakes & Biscuits