Cakes and biscuits are rising to the challenge of flourishing in the modern world with encouraging' NPD. Simon Mowbray reports
What could be more quintessentially British than a piece of cake or a barrel of biscuits? In fact, there are few grocery staples which have been held in as much affection in the hearts of consumers over the years.
But that doesn't mean they always will, or that the formats in which they have traditionally come will always suit the mass market.
Fortunately, manufacturers have been quick to grasp this point, bringing out a raft of new launches in handy formats to meet the growing on-the-go demands of Britain's workers and time-poor society.
The move has also been to the delight of retailers who have yet to report a dip in the fortunes of a market which had previously been warned to brace itself for tough times ahead.
Stephen Newbold, newly installed category buyer for biscuits at the Co-operative Group, is among those who are impressed with the way manufacturers have coped with the transition of taking much-loved brands and updating them for the 21st century. Examples include the moves which McVitie's has made with Penguin to bring out the new Wing Dings bagged snack format for kids and Burton's foray into the bagged arena with Cadbury's Mighty Minis. Manufacturers such as McVitie's have also continued to make strides in the offerings for on-the-go cake lovers with handy, pocket-sized treats such as Go Ahead!
"NPD in the market has been encouraging, and the noises we are getting are that there will be plenty more next year," says Newbold. "That is good news because the sector is static. Having said that, it will continue to be difficult to grow the market and it is the established offerings which have a market stranglehold."
Indeed, if the market is to continue growing, it would be these points that manufacturers must take to heart. However, they have an impressive starting point from which to launch initiatives. Data from TNS shows that the combined selling power of cakes and biscuits is approaching £3bn a year, not that far short of the giant confectionery market. However, while certain sections within confectionery are suffering a downturn, cake and biscuits continue to enjoy an upturn in fortunes.
One multiple buyer says cake and biscuits can be perceived as dull products, but the experience for retailers is that they are valuable and here to stay. However, a recent report on the biscuits market by Mintel analysts points out that the market is now cut-throat between suppliers.
"The mature status of the market gives little scope to target new buyers," claims the report, pointing to biscuits' high level of penetration, with more than nine in 10 housewives stocking up. It also identifies a shift towards lower consumption, balanced by a rise in handy-sized, premium-priced products. This, it says, has helped maintain market values.
However, Tony Camp, marketing director at Burton's Foods, which counts Jammie Dodgers and Wagon Wheels among its successes, insists the industry has had to answer a "wake-up call". A key issue is that the likes of Asda and Tesco are pulling more space over to non-food, taking space from where profit and sales have dropped, or where sales remain static, he says.
"If the biscuit industry had carried on the way it was going four or five years ago, it would have lost space to more dynamic segments," says Camp. "In a sense ourselves, McVitie's and Fox's have realised the only way to redynamise the static market was to think creatively with the retailers and consumers to develop products which are breaking out from the biscuit barrel."
That, at least partly, has been achieved. So what else lies ahead? According to Mintel, suppliers must deal with the UK's fall in the number of children and it concludes: "Sales will show little positive growth in real terms, with new product launches gaining from established ranges rather than widening the total consumer base."
Perhaps disproving such predictions as this is the real challenge.
{{FOCUS ON }}
What could be more quintessentially British than a piece of cake or a barrel of biscuits? In fact, there are few grocery staples which have been held in as much affection in the hearts of consumers over the years.
But that doesn't mean they always will, or that the formats in which they have traditionally come will always suit the mass market.
Fortunately, manufacturers have been quick to grasp this point, bringing out a raft of new launches in handy formats to meet the growing on-the-go demands of Britain's workers and time-poor society.
The move has also been to the delight of retailers who have yet to report a dip in the fortunes of a market which had previously been warned to brace itself for tough times ahead.
Stephen Newbold, newly installed category buyer for biscuits at the Co-operative Group, is among those who are impressed with the way manufacturers have coped with the transition of taking much-loved brands and updating them for the 21st century. Examples include the moves which McVitie's has made with Penguin to bring out the new Wing Dings bagged snack format for kids and Burton's foray into the bagged arena with Cadbury's Mighty Minis. Manufacturers such as McVitie's have also continued to make strides in the offerings for on-the-go cake lovers with handy, pocket-sized treats such as Go Ahead!
"NPD in the market has been encouraging, and the noises we are getting are that there will be plenty more next year," says Newbold. "That is good news because the sector is static. Having said that, it will continue to be difficult to grow the market and it is the established offerings which have a market stranglehold."
Indeed, if the market is to continue growing, it would be these points that manufacturers must take to heart. However, they have an impressive starting point from which to launch initiatives. Data from TNS shows that the combined selling power of cakes and biscuits is approaching £3bn a year, not that far short of the giant confectionery market. However, while certain sections within confectionery are suffering a downturn, cake and biscuits continue to enjoy an upturn in fortunes.
One multiple buyer says cake and biscuits can be perceived as dull products, but the experience for retailers is that they are valuable and here to stay. However, a recent report on the biscuits market by Mintel analysts points out that the market is now cut-throat between suppliers.
"The mature status of the market gives little scope to target new buyers," claims the report, pointing to biscuits' high level of penetration, with more than nine in 10 housewives stocking up. It also identifies a shift towards lower consumption, balanced by a rise in handy-sized, premium-priced products. This, it says, has helped maintain market values.
However, Tony Camp, marketing director at Burton's Foods, which counts Jammie Dodgers and Wagon Wheels among its successes, insists the industry has had to answer a "wake-up call". A key issue is that the likes of Asda and Tesco are pulling more space over to non-food, taking space from where profit and sales have dropped, or where sales remain static, he says.
"If the biscuit industry had carried on the way it was going four or five years ago, it would have lost space to more dynamic segments," says Camp. "In a sense ourselves, McVitie's and Fox's have realised the only way to redynamise the static market was to think creatively with the retailers and consumers to develop products which are breaking out from the biscuit barrel."
That, at least partly, has been achieved. So what else lies ahead? According to Mintel, suppliers must deal with the UK's fall in the number of children and it concludes: "Sales will show little positive growth in real terms, with new product launches gaining from established ranges rather than widening the total consumer base."
Perhaps disproving such predictions as this is the real challenge.
{{FOCUS ON }}
No comments yet