Prices are being crunched in sharing bags. Use of total price deals has risen 25% in the past year, despite promotions in bagged snacks overall remaining static [Kantar 52 w/e 6 December 2015].

Just under half of all bagged snacks were sold on promotion, with 30% as total price reductions as reliance on multibuys and X-for-Y style promotions decreased.

“There has been a movement away from volume-led deals to price cuts driven by the bigger players such as Pringles, Kettle and Doritos,” says Kantar analyst Ian Shipton. “In the sharing category, temporary price reductions account for four in every £10 spent.”

  No deal (%)Price cuts (%)Multi-Buy (%)X for Y (%)
Total Savoury Snacking 07-Dec-14 53.5 27.1 3.2 15.5
06-Dec-15 54.4 30.0 1.3 13.8
Multipacks 07-Dec-14 41.6 32.9 2.5 22.0
06-Dec-15 42.9 34.7 1.0 20.8
Sharing 07-Dec-14 44.5 30.6 9.4 15.5
06-Dec-15 43.3 40.2 4.0 12.4

While this may be good news for bagged snacks fans, it’s stripping the value out of the premium sharing market, with Kettle Chips among the worst hit. While the brand shifted an extra 6.5% in volume, values sales were eroded 3.5% by deals [IRI 52 w/e 5 December 2015].

“It’s important to get the quality/value proposition right for consumers and like all the rest of the market we price and promote to maintain competitiveness,” says a spokeswoman for Kettle Chips. “It is up to brand owners to look at a variety of ways to drive sales, including innovation as we have done with our Better for You and Chef’s Signature ranges.”

She notes the market’s increasing reliance on price promotions as a result of the recession. “It’s a more effective tactic to encourage both existing consumers to buy more and gaining trial amongst new consumers. It’s often the means to obtaining off-shelf display for the promotion in store, making it more noticeable to more shoppers,” she says.

PepsiCo’s portfolio also saw cuts to average price per kg with 6.8% drop on Walkers Crisps and 3.3% cut on Doritos. Kettle Chips rival Walkers Sensations, meanwhile, secured a 1.6% increase in average price while Tyrrells Crisps gained 0.8%.

Promotions in bagged snacks won’t be disappearing any time soon says David Costello, head of customer category management at newcomer to the bagged snacks market Burton’s Biscuit Company. “We know that promotions are the key to gaining trial and loyalty, as well as in-store visibility,” he says. “Off-shelf price reductions generate trial, whilst on-shelf shallower cuts and multibuys drive frequency and loyalty.”

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