Health is a driving force within the crisps and snacks category which has demonstrated its resilience as an FMCG heavyweight
16 June 2010
At a glance: Crisps & Snacks
- Snacking occasions are driven by two distinct needs – health (54%) and indulgence (46%) (Kellogg Snacking Research, 2009).
The crisp and snack category is valued at an estimated €194 million
The market has witnessed a value decline of 6.7% in the past year, yet remains one of the most profitable FMCG categories
Largo Foods sources 35,000 tonnes of potatoes from Irish farmers annually, which equates to over 10% of the nation’s annual potato crop and its direct employment of over 530 people
Five Largo Foods brands – including Tayto, Hunky Dorys, King, Perri and Sam Spudz – together account for a 49.1% share of the category and collectively were the only brands that recorded year on year share growth in value terms in 2009
Tayto remains Ireland’s number one crisp in value terms with a value market share of 23.2%, almost 10 share points larger than the number two brand
Hunky Dorys remains Ireland’s number one crinkle-cut crisp and with a crisp category share of 14.1% outsells its nearest crinkle-cut competitor by almost five times
King Crisps has a national market share in crisps of 11.4%, and is the number two best selling crisp in Dublin
(Source: AC Nielsen. Markettrack, Value, 18 April 2010)
Walkers is now the number one crisp and snack brand in Ireland in volume terms and has outperformed the 1% overall category growth and delivered an outstanding 8% year to date growth in volume.
Walkers’ core crisps growth has risen by 14% in volume, Doritos are up by 46% , Snack-a-Jacks up by 62% and Monster Munch, Quavers, Wotsits and other snacks up by 20% or more
Doritos is now the number one snack brand in Ireland
(Source: Volume Share: Nielsen Total Scantrack W/e April 18 2010)
McCain, Ireland’s biggest player in frozen potato, is launching a new range of innovative products
The crisp and snack category remains one of the most profitable FMCG categories for retailers to focus on within their stores and is valued at an estimated €194 million. While in value terms the market has witnessed a decline of 6.7% in the past year (AC Nielsen. Markettrack, Value 18 April 2010), it remains one of the most resilient categories in the overall FMCG market. This is certainly not a bad result, considering CSO statistics show food and drink prices overall fell 7.8% in the year to March and Nielsen data also shows the category grew overall in volume by 1% in the past year ( Volume Share: Nielsen Total Scantrack W/e April 18 2010).What is more, crisps and snacks has changed dramatically as a category over the past number of years due to new product launches and innovative, integrated marketing campaigns designed to grab consumers’ attention.
The category has also benefited from an improved health profile, with the development of baked crisps and the increased use of sunflower oil for crisp frying, according to reports by market analyst Mintel. This finding has been confirmed by Kellogg’s 2009 research which shows snacking occasions are driven by two distinct needs – health (54%) and indulgence (46%). Repositioning crisps and snacks as an indulgent treat for adult consumers using premium ingredients has also broadened this sector’s appeal, and created a substantial market for premium crisps and snacks sold at higher prices. Millward Brown research has likewise shown consumers are increasingly ‘nesting’ during the current economic climate. People are entertaining at home more and are searching out permissible, affordable treats; both of which offer further opportunities for the crisps and snacks category.
Living it Largo
Irish owned Largo Foods based in Ashbourne, County Meath is the largest snack food company in Ireland. Largo Foods is very proud of its contribution to the economy through its sourcing of 35,000 tonnes of potatoes from Irish farmers annually, which equates to over 10% of the nation’s annual potato crop and its direct employment of over 530 people. Largo Foods represents some of Ireland’s most iconic snack food brands including Tayto, Hunky Dorys, King, Perri and Sam Spudz. Together these five brands account for 49.1%* share of the category and collectively were the only brands that recorded year on year share growth in value terms in 2009.
Original Irish hits
As Ireland’s number one brand in the crisp category, Tayto, ‘The original Irish crisp’, remains the undisputed number one crisp in value terms among consumers with a value market share of 23.2%*, almost 10 share points
larger than the number two brand. 2009 saw Mr. Tayto release his bestselling autobiography, ‘The Man Inside The Jacket’, which was number one in the book charts for six weeks including the coveted Christmas number one spot.
Hunky Dorys new advertising campaign, launched 26 April and entitled ‘Rugby’ presented a unique take on the lineout, the scrum, the tackle and the place kick. The ads were shot by the world famous photographer Walter Iooss. A new website showcased all the ads from the campaign and some additional bonus content for its digital followers. Hunky Dorys remains Ireland’s number one crinkle-cut crisp and with a crisp category share of 14.1%* outsells its nearest crinkle-cut competitor by almost five times*.
King Crisps, affectionately known as ‘The crisp lovers’ crisp’, also performed well within the past 12 months with a national market share in crisps of 11.4%*. With the brands’ heritage firmly rooted in Dublin, it is not surprising that it is in fact the number two* best selling crisp in the capital.
(*Source: AC Nielsen. Markettrack, Value, 18 April 2010)
Bags of taste
Kettle Chips are the original hand-cooked, gourmet potato chip. The brand claims every bag of Kettle Chips is hand-cooked, using the best potatoes to create a naturally crunchy and delicious chip.
The potatoes used are specially grown for their size and bold flavour giving the crisps their distinctive crunch and taste. The best of these potatoes are then thickly sliced directly into pure sunflower oil that enhances the flavour of the potatoes. The crisps are then carefully stirred by hand, a batch at a time, until they are cooked to golden perfection. Kettle Chips are seasoned with 100% natural ingredients, and include no preservatives, additives, artificial flavourings or colouring.
Kettle Chips are distributed in Ireland by Stafford Lynch Ltd, and are available in both 40g and 150g bags. The range of flavours include Lightly Salted, Sweet Chilli, Balsamic Vinegar & Sea Salt, Sour Cream & Chive and Sea Salt with Crushed Black Peppercorns.
Kettle Chips are ideal for those who appreciate healthier, natural products but without sacrificing quality and taste.
For more information please contact Stafford Lynch Ltd on 00353(0)-1-8023100 or log onto www.staffordlynch.ie
Walkers leads the way
Walkers has released figures that show the brand is now the number one crisp and snack brand in Ireland in volume terms and is driving category growth by outperforming the 1% overall category growth and delivering an outstanding 8% year to date growth in volume. This growth is across the brand portfolio with core crisps up by 14%, Doritos up by 46% , Snack-a-Jacks up by 62% and Monster Munch, Quavers, Wotsits and other snacks up by 20% or more. Doritos is now the number one snack brand in Ireland.*
Walkers marketing manager, Nicky Wells told ShelfLife: “Walkers is now the most popular brand in Ireland in both crisps and snacks. Consumers have voted with their purchasing power and now buy more Walkers than any other crisps and snack brand.
“Despite the tough retailing environment, the space dedicated to crisps and snacks is delivering profits to retailers with an increase in sales from this time last year. However, with Walkers growing at a pace that is five times faster than the category as a whole and with our clear consumer preference it’s clear that stocking Walkers equals increased profits for retailers, which must be good news.”
Walkers has continued to innovate, as in previous years, with the launch of Red Sky, Walkers Grab Bags, Walkers Flavour Cup and more to come. This has contributed to the faster than sector growth, delivered excitement to the category, and also delivered real value to the shopper in-store.
A full marketing and support plan is in place for 2010 across the brand portfolio. Walkers has recently sponsored the Walkers TV Now Awards which has grown in popularity each year, reaching over 400,000 Irish consumers on TV3 last month. The brand is also running its Flavour Cup promotion which fits superbly with Walkers’ flavour innovation. The Flavour Cup has been supported by a substantial promotional budget including a major sampling campaign and TV. There are some exciting developments planned for the second half of the year.
Nicky Wells adds: “It’s been a very busy first half of 2010 for Walkers. We are going into the second half of the year in the number one position, but we are not complacent and will be working hard to make Walkers work hard for our retailers.”
(*Source: Volume Share: Nielsen Total Scantrack W/e April 18 2010)
The KP Brand
The KP brand is valued at over €23m according to the latest AC Nielsen data. The KP umbrella includes popular consumer brands such as Hula Hoops, Skips, Rancheros and Meanies.
Hula Hoops is one of Ireland’s leading snack brand appealing to all consumers. The brand contains no artificial flavours or MSG leading to a better for you product and improved taste. The brand is constantly evolving introducing new designs and pack formats and is regularly supported by above-the-line and below-the-line activity. Watch out for the brands involvement in the Special Olympics over the summer.
Also available from KP and distributed in Ireland by Robert Roberts is McCoys. Available in four flavours (with the newest flavour Bacon Sizzler available now) the brand commences an exciting consumer campaign in June with TV advertising and a consumer on pack promotion to win football related prizes every day to coincide with the World Cup. New impactful display stands will also be available to support the sell out in store.
Also launching in June is Barney Pizza flavour corn snacks. This is an enjoyable treat for children containing no artificial colours, flavours or sweeteners. It is made in Ireland and will be available in handipack and six pack format.
Another KP launch in June is Skips Cheese & Onion handipack to give a natural extension to a massive snack brand. The coming together of the ever popular flavour and one of the top snack brands in Ireland is sure to create a buzz.
And to cap off a busy month for the KP house, the brand will be launching two new impulse nut products, KP 50g Salt & Vinegar nuts and KP 50g Spicy Chilli nuts, both available in carded format.
Other key brands include the old favourite Phileas Fogg in the sharing market, a sector that is worth more than €35m per annum and still growing despite challenging market conditions. These crisps and snacks are available in 140g sharing bags and are perfect for summer barbeques and for that cosy night in. Other sharing offerings from KP include value lines in Skips, Rancheros and Hula Hoops. However the must have brand for 2010 is Meanies, as with + 36% year to date growth, it is continuing to go from strength to strength.
McCain summer sales kick off
McCain, Ireland’s biggest player in frozen potato, is growing the frozen potato and pizza categories by launching a new range of innovative products.
The action starts with McCain Footballs – balls of creamy mashed potato, lightly prepared with sunflower oil for a tasty crunch. McCain believes they will quickly become a family favourite.
New launches, McCain Pizza Maximo and McCain Pizza Anytime, are perfect for sharing or snacking. Pizza Maximo American Hot is ideal for those looking for a spicy bite, while Pizza Maximo Cheesy Garlic appeals to cheese fans and vegetarians.
The brand believes McCain Pizza Anytime will prove another highly successful product. Available in three popular varieties – Hawaiian Style Ham & Pineapple, Spicy Chicken, and Four Cheeses – these are perfect for light lunches or after-school snacks.
What’s more, McCain Prepared Potato range now has an eye-catching new look in order to drive sales of favourites like McCain Wedges, including Lightly Spiced, Sea Salt & Black Pepper and Summer Wedges. These lines will prove ideal for summer BBQs, parties and the World Cup.
Going nuts for Harvest
Harvest Fare products are the ideal snack food both indoor and outdoor this summer. For those glued to the latest happenings in South Africa, the brand’s snacks provide a perfect, healthier accompaniment for their beer of choice. Alternatively, they are ideal as an appetiser before a barbeque or even as a nibble while enjoying a glass of wine on a long summer’s evening. For best results merchandise near your off-license or speak to your rep for advice.
Harvest Fare’s current best sellers include Chilli Nuts, Bombay Mix, Sesame sticks, Cashew Nuts and Salted Nuts. Look out for price down and extra fill offers over the summer. The brand also claims to offer great margins and extremely attractive POS.
O’Donnells crisps strikes Musgrave deal
O’Donnells Artisan Crisps has signed a new deal with SuperValu and Centra, which will see its products sold in over 660 stores across the country leading to estimated sales of €100,000 in 2020. The product is Ireland’s first authentic artisan crisp brand and the brainchild of Ed O’Donnell, a seventh generation farmer who developed the product while looking at innovative ways to create additional revenue for the family business. O’Donnells Artisan Crisps will initially be available in a 50g bag and come in two flavours: Sea Salt & Irish Cider Vinegar Flavour, which uses cider vinegar from The Apple Farm in Tipperary. and Mature Irish Cheese & Red Onion Flavour, which uses Mount Callan cheddar cheese.
The hand cooked crisps are natural with no artificial colours or flavours and are suitable for vegetarians. They contain no hydrogenated fats, MSG or GM Ingredients. Only 100% Irish potatoes grown on the farm are used in production.
Ed O’Donnell, owner, O’Donnells Artisan Crisps, said: ”I’ve spent the last two years researching the market, sourcing unique flavours, developing packaging and creating a brand which is now ready for launch. So it’s fantastic to have secured this deal with both SuperValu and Centra as it will mean that my product is now available to the entire population, turning my idea into reality.”