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Get range ready: Snacks

What is the right range of choice?

Alongside stocking a broad range of drinks, customers also expect that there is a good variety of snacks that can be consumed when out and about, if not, you can expect visits to be shorter as hunger kicks in. A customer that can get everything they need from one place is more likely to stay longer and spend more, and by giving them more choice you can really boost your sales at the same time. PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world, so you will be in good company stocking the company’s great selection of crisps, snacks and nuts. Follow our four core principles and you'll be all set to capture additional profits.

41% of alcohol consumers pair their drinks with a snack

MINTEL Crisps, Savoury Snacks and Nuts, January 2019

4 key principles to snacks ranging

Principal one: Visibility is key!

Make sure customers can see the snacks you have on offer, this will not only bring them front of mind, but can increase spend by up to £1.50 (Source: PepsiCo StreetBees pub research 2020). With many pubs/bars likely to continue operating a one-way system within their establishments to adhere to social distancing rules, punters will be even more impulsive and focused on moving along quickly.

Crisps, nuts and snacks are highly spontaneous, with three out of 10 purchases made on impulse, so visibility is key to drive sales (Source: Kantar Study 2018).

Things to consider:

  • Ensure snacks are visible at the bar
  • Use beer mats or menus to serve as a reminder at tables
  • Use clip strips to display full range 
  • Counter top units can be a great way of displaying best-sellers

Principal two: Stock Trusted Brands 

Crisps are the UK’s most loved snack - fact! (Source: Mintel Consumer Snacking UK, May 2019) So it’s only natural that customers will come in and ask if there are any available. “It’s my favourite” ranks as the second biggest reason why customers will select a snack, with taste being the number one driver. Walkers Cheese & Onion, Ready Salted and Salt & Vinegar are the top three best-selling crisp SKU’s within pubs (Source: Salesout L52w/e 17th May 20), so are a sure winner to be stocked to meet the needs of customers.

PepsiCo advise outlets to focus on a range that minimises potential waste, while ensuring it caters for relevant consumer need-states and outlet type. Leveraging recognised brands that customers trust will be essential. An offer that includes Core or Premium snacks depending upon outlet type, together with an accompanying family favourites snack to broaden appeal as well as a nuts offering key to drive savoury snack sales for outlets. Hitting each of these need-states is crucial in driving customer satisfaction.

Principal three: Keep up -to date with trends

There has been a clear growth in premiumisation in the industry for several years now. Whether that’s the availability of more premium options of food and drink, or the environment and customer service. This trend has also driven the premiumisation of snacks and is the reason behind the huge sales growth in this category. Our premium potato-based snacks – Pipers Crisps – has almost doubled in penetration in the on-trade in less than five years, pre-COVID-19 (Source: Kantar – Crisps Snacks & Nuts £sales in Pubs prior to COVID 19).

Did you know? Premium snacks represent a significant advantage over ‘standard’ and ‘value’ crisps in terms of their rate of sale and price/margin; premium crisps command around a 30% price premium over quality mainstream products.

Principal four: Maximise the new normal

The tougher economic environment and squeeze on household disposable income has meant there is a wider set of consumer need-states to cater for. There will be an appetite for the core ranges of crisps and nuts, but premium lines – like Pipers – are also likely to be in demand with many consumers wanting to treat themselves, i.e. “I’m spending less time at the pub, so I’ll treat myself whilst I’m here.”

Whilst social distancing regulations must be strictly adhered to, places operating with large internal spaces or pub gardens, could consider ticketed viewings of the big sporting matches and games. Alongside this, leveraging food/snacks as a way to increase consumer trip spend will be vital to recoup lost revenue.

PepsiCo has seen the emergence of new trends, such as the diversification many pubs have put in place to continue to serve their community. Opportunities such as increased delivery or broadening of the portfolio may well continue moving forward.

Top tip! Pre-packaged offerings will increase in importance versus decanted ranges following COVID-19, due to heightened consumer focus on hygiene – so stay stocked up!