Cracking good times
Reports of rising biscuit sales from several manufacturers show that muffins at expensive coffee shops are out and custard creams are firmly back in vogue
Print14 September 2009
At a glance: Biscuits
- Jacob’s is Ireland’s number one biscuit brand
- Jacob’s brands, including Fig Rolls, Kimberley, Mikado and Coconut Creams, dominate their respective segments with over 85% value share in each
- Jacob’s is number one in the savoury biscuit category with a 49% value share of the sector
- Jacob’s holds the number one position in the luxury segment, with its Elite brand holding a 24% value market share
- Jacob’s leads the biscuit assortment category with 49% of the total Christmas biscuit market share
- Jacob’s has the top three selling SKUs in the seasonal market with Afternoon Tea 1kg, USA 1kg and Chocolate Kimberley 660g. (Nielsen scantrack 13 weeks ending 28 Dec 2008)
- McVitie’s is launching a new interactive eight week campaign entitled “Bonkers about Biscuits” that allows consumers to win €5,000 daily
- Fox’s has redesigned much of its assortment range for 2009. Fox’s Fabulously Special replaces Fox’s Speciality, while Fox’s Wonders replaces Fox’s Creations
SalesOut commercial director Steve Collins has said biscuits were one of the top 12 growth categories in the convenience sector last year, increasing 10.9% year on year. The Irish Independent has also reported that ‘retro’ biscuit classics have benefited during the recession. Sales of Bolands biscuits, which include custard, raspberry and Jersey creams, as well as rich tea and digestives, increased by about a tenth last year, according to figures from the biscuit company, Jacob Fruitfield Food Group.
According to the paper, Jacob’s Club Milk was also a hit with recession-weary chocaholics; sales of the chocolate biscuit were up by about a third last January. The report published in June also stated sales of cracker biscuits have increased by 9%.
Brands do, however, face increasing competition from private label variants. Supervalu has claimed it saw sales rise by over 20% this year.
Cunningly foxy plan
Despite a tough trading environment in 2009, Fox’s biscuits continue to be active in the market. Heavyweight promotions and discounting have been commonplace over the past few months and Fox’s has been engaged strongly in such activity.
The introduction of a range of price marked packs has proved successful and made some quality everyday products even more accessible to consumers at a return to pricing last seen some years ago. Big promotional features like the current ‘back to school’ offers have seen the brand well supported in each of the major multiples. This activity offered the full range of Fox’s chocolate biscuit bars on deal at a uniform price point. Established brands like Classic, Rocky, Echo, Triple and Cookie bars were all prominently displayed.
Despite the consumer focus on cutting back spending, Fox’s claims its premium Chunkie Cookies range continues to perform exceptionally well, thus demonstrating that consumers will still purchase premium products as a special treat. Fox’s believes it could be the brand best suited to avail of this trend due to its high quality manufacturing credentials.
Finally, October sees the launch of Christmas biscuits ranges in store, and Fox’s has completely redesigned much of its assortment range for 2009. New this year, Fox’s Fabulously Special replaces Fox’s Speciality.
Similarly, Fox’s Wonders replaces Fox’s Creations. Individual ranges have been improved, and Fox’s states as always with its collections, there’s something special to suit every taste in a Fox’s Christmas tin of biscuits.
Leader of the packs
As Irelands’ number one biscuit brand Jacob’s continues to grow from strength to strength. The Jacob Fruitfield Food Group has leadership position in the majority of biscuit sectors and continues to enjoy success with iconic brands such as Fig Rolls, Kimberley, Mikado and Coconut Creams, dominating their respective segments with over 85% value share in each.
Jacob’s also holds the number one position in the savoury biscuit category with an impressive 49% value share of the sector. Key brands include Jacob’s Cream Crackers, Jacob’s Mediterraneo and Tuc. The launch this year of the Tuc Craks range has proved successful, further enhancing the strength of the Tuc brand.
At the luxury end of the biscuit market, Jacob’s holds the number one position with its Elite brand with 24% value market share. The Elite range includes Chocolate Kimberley, Chocolate Teacakes, Chocolate Dreams, Chocolate Rings and the indulgent new Elite Delights range.
Jacob’s is the clear market leader in the biscuit assortment category with 49% of the total Christmas biscuit market share. It is also in the enviable position of having the top three selling SKUs in the seasonal market with Afternoon Tea 1kg, USA 1kg and Chocolate Kimberley 660g. (Nielsen scantrack 13 weeks ending 28 Dec 2008). These traditional brands continue to be Ireland’s favourite biscuit assortments, particularly over the upcoming festive season.
Bonkers about biscuits
Drawing inspiration from the Irish consumer’s love of biscuits, one of Ireland’s favourite biscuit brands McVitie’s is offering its loyal consumers a chance to win €5,000 daily through a new fun and interactive eight week family campaign entitled “Bonkers about Biscuits.”
Running across the favourite McVitie’s biscuit brands including McVitie’s Digestives, Jaffa Cakes, HobNobs, Rich Tea and Penguin, the promotional packs will be available throughout September and October for a limited period.
To enter the daily prize draw to win a share of €5,000, consumers simply have to enter the relevant code from the back of promotional McVitie’s packs and vote for their favourite McVitie’s biscuit on www.bonkersaboutbiscuits.com to be in with a chance to win. All winners will know instantly what prize they have won and will be contacted by email to receive cash prizes which will be dispatched within 28 working days. The interactive website will keep track of the votes via a game show themed creative, highlighting which biscuit is indeed Ireland’s favourite.
Not only are there games for consumers to engage with on the site but there is also an interactive quiz so that visitors can find out what the perfect biscuit is for them. The ‘bonkers billboard’ gives visitors the opportunity to win a hamper of their favourite McVitie’s biscuit by stating what lengths they have gone to, to munch on a McVitie’s Ginger Nut, Rich Tea or even a Milk Chocolate HobNob.
Kraft announces takeover Cadbury bid
Kraft, the company behind biscuit brand Oreos, has made a £10.2 billion (€11.7 billion) takeover offer for British confectionery group Cadbury. The firm reported Cadbury had rejected its initial advances but hopes to continue discussions with the confectionery giant.
Kraft said it had made a potential cash-and-shares bid worth 745p a share to Cadbury’s board. The previous week, shares closed at 569p.
A merger of the two companies would create a “global powerhouse” in food and confectionery, with annual sales of around $50 billion US (£34.5 billion), according to Kraft. It reassured Cadbury that it hoped to keep open the Somerdale facility near Bristol, which is currently scheduled to close, while also investing in the firm’s Bournville factory near Birmingham.
Kraft is one of the world’s largest food firms, with brands including Dairylea, Toblerone, Terry’s Chocolate Orange and Kenco coffee.
60% water chocolate a possibility
Biscuit makers and confectioners could soon be able to offer consumers attractive new low-fat chocolate variants. Researchers from the University of Birmingham have developed a chocolate emulsion which replaces fat with water.
The team has produced cocoa butter water-in-oil emulsions, which contain up to 60% water by mass, and do not cream on storage. Additionally, the cocoa butter was found to be in the form that “consumers find the most attractive, as it melts between 32 and 34 °C,” reports Foodnavigator.com.
Researcher Dr Phil Cox stated: “We have just patented an extension to the preliminary work and are in discussion with companies.”
“Low-fat chocolates with desirable taste and texture are currently not readily available,” he added.
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