The Grocer

Put Some Flava On Your Sales

The snacking nuts category has once again faced and overcome a host of challenges thrown up by the recession. Despite having to deal with high rises in the cost of raw materials, this innovative grocery segment has proved to be a winner and managed to grow its volume sales by 1.6%, with value sales up 3.9% to £254m¹.

Over 10% of sales have come from new products – mainly flavoured nuts – and "Humdinger is the company who not only developed some of the best selling flavoured nuts out there, but we were also first to market in flavour application/process innovation", says Ilona Pietruszewska, Humdinger’s brand manager. "The sales of Marmite Cashews are thriving; Marmite Cashews are the 4th biggest brand in bagged nuts despite being a single SKU. Reggae Reggae Peanuts & Cashews rate of sale was on a par with Marmite Cashews straight after launch, suggesting flavoured nuts are here to stay."

Nuts are experiencing strong growth as they offer a multitude of consumption occasions. Snacking and soft drink consumption are a hugely and increasingly important part of consumption behaviour in the UK with munchers paying more and buying more often – market research shows that nuts attracted more purchasers and they were also buying more often – and that’s despite the price increases from the rising cost of raw materials. The increase also coincides with Britons now spending an average of 30 hours a week watching television, up 2.5 hours versus the same time last year, according to the Broadcasters' Audience Research Board.

Own label nuts

Own Label nuts feature heavily in the snacking nuts category. “Own label has a 70% category share and the reason for that is there aren’t many branded products in this category, as only the consumers’ favourites have survived,’’ Pietruszewska adds.

Reggae Peanuts & Cashews
Marmite Cashews

“Price continues to be a key determinant in deciding what to buy. During the recession, consumers have developed behaviour patterns that are strongly linked with price, cost reduction and value for money instead of desires and possibly quality; that’s why the role of innovation this year is to encourage consumers to ‘unlearn’ those behaviour patterns and opt for new, ‘added value’ offerings to satisfy their nut cravings.”

The Source
1. Source: IRI - 52 w/e 10 Jul 2010

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