It may be one of the most mature markets in the grocery trade, but cake suppliers still have some tricks up their sleeves.
NPD has brought £33m to the category, according to Nielsen, more than offsetting declines in sales of already established products [Nielsen 52 w/e 12 October]. Much of the growth has come from the slices category and products such as Mr Kipling Lemon Layered Slices from Premier Foods and McVitie’s Digestive and Ginger Nut slices from United Biscuits.
“Our growth has mainly been driven by our run of launches into what is effectively a new sector,” says McVitie’s Cake Company marketing controller David Fowler. “As a result of NPD, McVitie’s has grown its slices business by £3.7m over the past year.”
Premier says the growth of its own slices has been down to their convenient snack-pack format. “The handy snack packs are individually packaged slices that can be broken off and used one at a time,” says Mr Kipling brand manager Lisa-Jo Harvey. “The format encourages shoppers to think of cake outside the traditional teatime occasion.”
Despite the success of its slices, overall sales of Mr Kipling have fallen and owner Premier says the challenging economic climate is still affecting consumer confidence. However, it adds, it is benefiting from the snacking trend, which has contributed to a stronger performance from its Cadbury range.
Licensing is also working well for UB, which has seen value and volume sales of its Galaxy range grow this year, boosted by the launch of Galaxy Cookie Crumble last year.
Another UB success story has been Jaffa Cakes, which have benefited from a packaging revamp and the halo effect of the launch of celebration cake The Big One this year. Less successful has been UB’s McVitie’s Jamaica Ginger Cake, which has come under pressure from own label, and the company says it plans to make the brand a key focus in 2014.
Other old-school brands have fared rather better. Soreen malt loaf has certainly reaped the rewards of NPD and tapping the evolving needs of the market, growing as it has 12.4% in value on a similar increase in volume.
“Products such as our Lunchbox Loaves and Toastie Loaves have played a key role in growth in recent years,” says a spokesman for the business. “These products bring new consumers into the brand by making a brand with 75 years of history even more relevant to our consumers’ changing lifestyles.”
Meanwhile, one newer brand, Fabulous Bakin’ Boys, has had a torrid time of it thanks to competition from own-label cupcakes. It hopes the NPD it has planned for 2014 will lead to a reversal of fortunes.
It won’t be the only brand banking on NPD to persuade consumers to have its cake and eat it next year.
Top launch: Barny sponge snack Mondelez
Mondelez recommends merchandising bear-shaped kids’ snack Barny in the biscuit aisle, but with his soft sponge texture and chocolate and milk fillings, we reckon he’s closer to a cake. British shoppers were introduced to Barny this spring, 14 years after he was launched in France as Ourson and later extended to territories including Belgium, Spain, the Czech Republic and Russia. Having clocked up £4m in UK sales in his first seven months on shelf, Barny’s bearing up pretty well so far.
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