Sweet biccies crumble as savoury flies

There’s no question about the hottest trend in biscuits this year: 2015 was the year of the savoury baked snack.

Positioned perfectly to take advantage of rising interest in baked products as a healthier alternative to fried fare while avoiding the ‘war on sugar’ baggage associated with sweet snacks, savoury biscuits went down a (nicely permissible) treat with consumers, with value sales up 3% on volumes up 0.3%.

“Savoury biscuits fit bang on consumer trends around permissibility, portion control and convenience,” says David Costello, marketing controller at Burton’s. Sean Davey, a consultant with The Value Engineers, adds the term ‘baked’ resonates well with health-conscious consumers. “The renaissance in home baking we’ve seen is really helping this; it suggests wholesomeness,” he says. “‘Baked’ is the way to go on health right now.”

The savoury biscuits category has been doing well for some time as a new generation of ‘snackable’ savoury biscuits has broadened it beyond traditional ‘toppable’ products. But this year that transformation accelerated thanks to big-ticket launches from two of biscuits’ biggest names - UB and Mondelez. Jacob’s Cracker Crisps, launched by UB in May, racked up £5.5m in its first five months, while Mondelez’s Ritz Thin & Crispy has contributed £6.8m since launch. Burton’s Fish & Chips has also had a strong year, with new curry sauce and pickled onion variants adding a tasty £2.6m to the brand’s value.

“We are seeing a fundamental switch as people move from fried to baked savoury snacks,” says UB MD Jon Eggleton, adding there’s plenty more potential. “Savoury biscuits in the UK is underdeveloped compared with the US and Australia.” 

Sweet biscuits have had a quieter year, with retrenchment and refocusing the key watchwords in light of retailer range rationalisations. As a result, there has been little in the way of showstopping NPD, and top line growth remains disappointing, though the 1.6% value decline this year is an improvement on the 3.5% drop seen in 2014. 

But while the rationalisation has brought some pain - and this year’s figures don’t yet include the impact of Tesco’s Project Reset, which hit biscuits in late November - suppliers believe it will ultimately see a stronger category better focused on consumer needs. “There are too many biscuits in the fixture and we are working closely with retailers to make it easier to shop,” says Eggleton.

Market leader McVitie’s has held steady while other sweet biscuit players struggled, helped by UB’s ‘umbrella’ brand strategy begun late in 2014. However, it’s a marked slowdown from the 5% growth the brand saw in 2014. 

Mondelez has also kept the heat on its rivals, with Belvita and Oreo powering ahead despite the difficult climate. Brand extensions such as Belvita Breakfast Tops (launched November 2014) and Soft Bakes as well as new peanut butter and Golden variants for Oreo have been key, as has both brands’ strong presence in convenience and its on-the-go formats, says the company.

But other brands have less tasty top line figures. The overall Fox’s portfolio is still in decline, and 2 Sisters has been addressing this by engaging in some rationalisation. It relaunched its range in November 2014 with a focus on seven core brands, and MD Colin Smith says volume growth is returning against a flat wider market. Refreshing the range with NPD has also been important, with Fox’s Crunch Creams recently getting a new red velvet variant - a key weapon in the fight to recapture the “lost generation” of 20 to 30-year-olds, who often drop out of the biscuits market, says Smith.

As for the Burton’s sweet biscuits portfolio, which has had a less than stellar 2015, Costello points out the range is highly impulse-driven and has suffered in a price and promotions-focused market. “The focus on price doesn’t work with all segments,” he says. “Special treats, for example, don’t fare that well.” However, the second half of 2015 has already seen some improvement, says Costello, and as retailers rethink their ranges he is confident growth will return. New additions to the portfolio, most notably Maryland Soft Bakes - which tap interest in soft baking technology more generally - will also help.

Cereal bars

Cereal bars, meanwhile, continue to reflect wider health trends, with nutritional benefits such as protein an important selling point. It’s not all about health, however; punchy flavour NPD can still win big. Alpen Light’s new Jaffa Cake cereal bar five-pack is the top-performing launch of the past year and already accounts for 0.6% of total category value. “Cereal bars have become more adventurous with their flavours, and this cleverly played on a well-known flavour usually considered outside the cereal bar realm,” says Nielsen’s Rachel McGuire.

Established players have every reason to stay on their toes, given the continued rise of the likes of Nakd. The brand, which straddles the sweet biscuits and cereal bar categories, has had a strong 2015 helped by a raft of NPD and distribution gains, with overall brand sales hitting just under £30m.

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Get 20% off the full category ranking. Click here and enter discount code NIELSENGROCER