Biscuits & cakes 2022: Cakes pricier as posh lines drive value

The resurgences in on-the-go and lunchbox occasions have given cause for celebration to biscuit makers, too. Brands of all stripes have benefited.

Take Maryland, whose growth was driven by its snack-sized Minis format, styled as “perfect for the on-the-go or lunch occasion”. They’ve contributed to a 15.5% value gain.

Similarly, Maryland’s sister brands Kinder and Fox’s have cashed in on the return of on-the-go occasions. The former is the fastest grower in sweet biscuits thanks to the launch of its two-biscuit Cards snack packs in July 2021. They offer small, individually wrapped products to cater to children and health-conscious parents, explains Jason Sutherland, UK&I sales director at Kinder owner Ferrero.

At Fox’s, portion sizes have also been a focus, with the children’s biscuits segment accounting for one in five out-of-home snacking occasions, according to the brand. As such, it’s expanded its Minis range with Choccie Dodgers and Party Rings.

But bite-sized treats need not just be for kids. McVitie’s Blissfuls by Pladis (see Top Launch, p79) is a more grown-up mini biscuit that comes in a sharing format, designed to be shared on the sofa at the end of the day.

For the beginning of the day, there’s  Belvita. It’s shifted more than four million additional packs of sweet biscuits and cereal bars. The Mondelez brand has been busy launching non-HFSS variants – such as Fruit Crunch bars in Raisin & Currant and Apple & Pear – to maintain visibility in impulse locations.

Healthier options have been a boon for a number of other biscuit players. Chief among them is Trek. It’s up 27.9% in value, making it the fastest grower among the top 10 cereal bar brands. Senior brand manager Alice Boardman attributes this to the launch of an “on-trend” Peanut Butter bar in June and the ongoing success of its Power lineup, which contains 15g of plant-based protein per serve. Tapping sports nutrition trends, the range is “aimed at consumers with busy and active lifestyles who are looking for natural slow-release energy to avoid spikes throughout the day”, Boardman adds.

A similar focus on health is evident at Kind, the second-fastest grower in the top 10. It’s up 27.1% in value, having launched portion-controlled Thin bars in July.

Everyday options

While healthy and lunchbox-friendly formats are booming, sales of everyday biscuits have been nothing to shout about.

McVitie’s, Cadbury and Oreo are in value and volume decline as “the nostalgia we saw for these brands throughout Covid is weakening, and therefore having a knock-on effect on sales”, Wrench explains.

This effect is being felt across the category, suggests McVitie’s chief marketing officer Aslı Özen Turhan. “It’s been a challenging year for both snacking companies and the grocery industry at large,” she says.

“Due to a challenging economic outlook, many consumers are having to carefully monitor their spending – and this is putting pressure on lots of categories, including biscuits.”

And yet, brands have so far held their own against own label. Volumes of McVitie’s et al are down 2.3% versus private label’s 2.8%.

“In the context of a challenging marketplace, many of our household favourites are holding relatively steady,” says Özen Turhan. She points to the “lipstick effect” observed in treat-led categories, “where shoppers continue to buy small and affordable treats, even if they are cutting spend elsewhere”.

The lipstick effect is arguably less applicable to savoury biscuits. Yet its post-pandemic losses have been moderate. Value’s down just 2.3% on a 4.3% fall in volumes.

Yes, top name Jacob’s sold 8.9 million fewer packs – but that was largely due to Pladis moving its crispbread, flatbread and ciabatta options to sister brand Carr’s in July 2021.

Conversely, Carr’s is the fastest grower in the top 15, leapfrogging Ryvita Crispbreads and Nairns, both of which are in decline – the former having suffered distribution losses. Carr’s sales were buoyed by its Christmas selection box, which Wrench identifies as the sector’s “top NPD last year”.

Little wonder, then, that the brand’s seasonal range was brought back for 2022, supported by a range of cross-category marketing and PoS activity designed to lure additional shoppers.

Another thing likely to attract consumers is an emphasis on plant-based sweet treats, Wrench suggests. Vegan options are already showing promise across biscuits and cakes, she says, highlighting the likes of Oggs, which has grown value 20.2%.

“It will be interesting to see if this trend continues, with shoppers becoming more conscious about what they are consuming, and an increasing number looking to introduce or increase plant-based options in their diet,” Wrench says.

Boardman at Trek – which is wholly plant-based – agrees an “increasing number of people in the UK are either converting to full veganism or following a flexitarian diet, consciously cutting back on meat and dairy and opting for plant-based alternatives”.

So, while afternoon tea is getting pricier, it also looks like it’s getting trendier.