Mini formats and bags, which have been on the market for only about 18 months and are already worth about £100m, account for about 6.3% of the total biscuit market and are growing at 30% year-on-year [TNS 52w/e August 18].
Leading biscuit manufacturer McVitie's entered the bagged biscuit arena with the launch of Munchbites, mini chocolate covered versions of Digestives or HobNobs, in March as part of a £10m brand shake-up. And according to McVitie's sales director Martin Perkin the launch of Munchbites proved a resounding success with consumers.
"A massive eight million packs of Munchbites were purchased during the first three months from launch and it is already the number four chocolate biscuit bar brand within impulse," says Perkin.
McVitie's also launched Penguin Wing Dings this year, described as "the interactive snack that provides the kids with hours of amusement". Perkin says so far it has had "pretty good distribution throughout multiple grocers".
According to Perkin one key to the success of bagged biscuits is the convenience factor and McVitie's will develop more products that fit into the bagged formats.
Burton's Foods joined the battle for snackers in September, backing its newcomer ­ chocolate-coated miniature versions of Cadbury's biscuits ­ with a £3m launch.
Cadbury's Mighty Minis can be found in Sainsbury and Asda and will be going into Tesco and Safeway towards the end of the year.
Burton's Foods marketing director Tony Camp says the sales target for the year is around £10m and adds that he sees no obstacle to that figure doubling to £20m in the next two to three years. "We are already working on a new generation of Mighty Minis," he says.
Long-term, Camp sees no end to the success of bagged biscuits. "The bags strategy is starting to go right through our product portfolio."
Biscuit manufacturers have realised there is a lot of potential in distribution channels other than grocery, such as petrol forecourts and pubs.
Confectionery manufacturer Bon Bon Buddies has also entered the bagged biscuit sector, and seems to have found a niche with the launch of a range of character Pack n' Snack' lines aimed at kids. Its director of licensing and design, Pauline Howarth, says: "Everyone has been quick to cite the fact that kids are exercising more influence over the family shop, but in terms of biscuits, portion packs and minis' seemed to be as far as the innovation has gone."
With this in mind, Bon Bon Buddies has worked closely with Tesco biscuit buyer Nick Orledge to produce at least six character Pack n' Snack' lines to be merchandised in the kids biscuits fixture. "The six lines have dedicated shelf space in Tesco and are selling very well," says Howarth, "and other majors, including Sainsbury, Safeway, Morrisons and Somerfield are now listing some of the products."

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