Snack attack

The Hunky Dory brand continues to gain market share, particularly in the sharing bag category

Ireland is a nation of snackers. Mintel research has predicted that over the next five years, the crisp and snack industry is forecast to remain resilient.

Brand Central

21 June 2013

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Snacks

AT A GLANCE: CRISPS AND SNACKS

The overall value of the crisps and snacks category is €236 million
Ireland has one of the highest per capita consumptions in Europe – 71% of Irish consumers eat crisps and snacks at least once per week and 20% do it daily
Tayto is Ireland’s number one crisp and snack brand with 34% market share (Source: AC Nielson, Market Track, MAT 30 April 2013)
Tayto is the fifth biggest FMCG brand in Ireland (Source: Nielson’s Top 100, August 2012)
Tayto Cheese and Onion outsells its nearest competitor by more than three to one (Source: AC Nielson, Market Track, MAT 30 April 2013)
The Tayto Bistro range has achieved share growth of 7% year-on-year (Source: AC Nielson, Market Track, MAT 30 April 2013)
Hunky Dorys represents a 15% share of the crisp market (Source: AC Nielson, Market Track, MAT 30 April 2013)
King Crisp commands a 10.3% share of the Irish crisp market (Source: AC Nielson, Market Track, MAT 30 April 2013)
Doritos is the biggest sharing bags brand in the Irish Market (Source: Nielson Scantrack MAT 21 April 2013)
Doritos are bought by 21.3% of Irish households (Source: Kantar Worldpanel 52 WE 17 March 2013)
Branded tortilla chips have shown 7% growth year-on-year (Source: AC Nielson Scantrack April 2013)
Doritos has three out of the top four sharing bags in the Irish market (Source: Nielson Scantrack MAT 21 April 2013)
Veronica’s Snacks are gluten-free with 60% less fat than other crisps
McCoy’s crisps are the number two ridge crisp in the market, with 6% growth year-on-year (Source: AC Nielson Scantrack April 2013)
Hula Hoops is KP’s biggest brand
The Meanies brand, including Meanies and Mega Meanies is now worth over €4 million
Keogh’s has been cultivating the lands of north county Dublin for over 200 years, a region that supplies 65% of Ireland’s fruit and vegetables
Jack Link’s brand is growing 29% year-on-year and presents a major profit stream for retailers

Tayto

The perfect portfolio

Ireland is a nation of crisp and snack lovers, with one of the highest per capita consumptions in Europe. For retailers to avail of these trends, Largo Foods has the portfolio of leading brands to drive growth.

Tayto has successfully maintained its position as the fifth biggest FMCG brand in Ireland*. Tayto’s ongoing commitment to exciting consumers through quality, new product development and employing innovative marketing and promotions, has helped the brand retain its leadership with a 34% market share*. The brand’s strength is replicated across all sectors; in impulse, Tayto accounts for a 40% share of the category while in the multipack category, the brand has a 53.6% share*. While consumers are increasingly interested in trying new flavours, Cheese and Onion is still the nation’s favourite. Cheese and Onion outsells its nearest competitor by more than three to one*.

While consumers have a fondness for the classic Tayto range, bringing new and interesting products to consumers is at the heart of the brand. Tayto Bistro and Tayto Occasions continue to be popular, with the Tayto Bistro range achieving share growth of 7% year-on-year*. Tayto Bacon Fries and Tayto Party Mix products have achieved an impressive market share of 13%* in the sharing snacks category. Tayto also has a great range of lighter snacks that are lighter in calories but not in taste. Tayto Velvet Crunch is available in two flavours; Thai Sweet Chilli and Cheddar Cheese and Onion.

*(Source: AC Nielsen, Market Track, MAT 30 April 2013)

**(Source: Nielsen’s Top 100, August 2012)

It’s all hunky dory

Hunky Dorys is edgier that the typical crisp. The brand continues to grow and now represents a 15%* share of the crisp market. Hunky Dorys’ consumers continue to really enjoy munching through large share bags with the sharing crisps sector growing by 16.2% in the last year and Hunky Dorys is the best selling share bag crisp in the market. Recognising the high level of consumer interest for the brand in this sharing/party format, Hunky Dorys launched a range of Tortilla and Nuts products last year. Following from the success of these products, the brand has launched a new product, Hunky Dorys Buffalo Flavoured Coated Nuts which is sure to have consumers stampeding to the shelves.

*(Source: AC Nielsen, Market Track, MAT 30 April 2013)

King of the crop

Commanding a 10.3%* share of the Irish crisps market, King Crisps, continues to win fans outside of its core Dublin base and now over 54%* of all King sales come from outside Dublin. To build on its increasing popularity, King entered the hand cooked crisp category with the launch of King Gold Standard Crisps. Since the launch, King Gold Wexford Vintage Cheddar Cheese & Spring Onion and King Gold Burdock’s Traditional Salt & Malt Vinegar is proving very popular with consumers and showing strong market growth.

*(Source: AC Nielsen, Market Track, MAT 30 April 2013)

Q&A with…Raymond Coyle, chief executive, Largo Foods

Largo Foods hit the headlines through the launch of the Tayto Chocolate Bar earlier this year! How important do you believe continuous innovation and NPD are within the crisps and snacks category?

As the number one crisps and snacks brand and the fifth largest FMCG brand in Ireland, it is absolutely critical for us to continue to excite and engage our consumers with new and interesting products. Innovation has always been a huge strength for the Tayto brand; over the years we have brought consumers new flavours, new snacks and now something totally different with the launch of the limited edition Tayto Cheese and Onion Crisp Chocolate Bar.

How significantly has the crisps and snacks category been affected by the recession since 2008? How are your brands performing within the overall market?

The market is constantly evolving and the recession has driven some of these changes. For example, people are entertaining at home more often and so sharing sizes are on the increase, snacking on-the-go has seen growth in "meal deal" type offers and new pack formats, but the overriding need for consumers is one of value. This doesn’t always mean price, consumers are constantly looking at the value trade off. They want quality brands they can trust at a price that is right. The overall market has declined slightly in volume, but the actual value of the category has risen driven mainly by innovation.

How important is the use of social media within Largo Foods’ marketing strategy for 2013?

Social media and the digital world is integral to our consumers’ lives. Our consumers love to engage with us as evidenced by the fact that we have over 245,000 active fans of the brand on Facebook. It is a critical part of our marketing strategy as it allows us to open up the dialogue between ourselves and our consumers. It was where the idea for the Tayto Chocolate Bar was born and I’m sure if we listen closely enough will be the source of inspiration for many more ideas in the future.

Summer sales sizzle

Doritos, the biggest sharing bags brand in the Irish market* is set to make sales sizzle with recently launched exciting new flavours: Hint of Lime and BBQ Rib, available in 200g sharing bags.

In addition, limited edition flavour Jalapeño Fire is set to launch into the convenience and impulse channel this month. These new variants join the existing portfolio of Chilli Heatwave, Tangy Cheese and Cool Original.

The two new additions to the Doritos range, Lime and BBQ, sure to set the tills ringing this summer

Doritos are a firm favourite in Irish households with 21.3% penetration** and three of the top four sharing bags in the Irish market. Strong support will accompany the brand this summer with a focus on key consumer occasions including barbecues and summer parties. This will be brought to life through the first TVC in Ireland for the brand as well as online. This support will also continue in-store with key summer and Mexican themed events and a suite of impactful POS materials.

* (Source: Nielsen Scantrack MAT April 21 2013)

Q & A with…Katie Hanlon, brand manager, PepsiCo International

What are the main ranges within the Doritos portfolio and how are these currently performing within the Irish market?

The Doritos range comprises of both single and sharing bags across grocery and impulse channels. The range of flavours currently includes Chilli Heatwave, Tangy Cheese and Cool Original. Recent additions include BBQ Rib and Hint of Lime which were launched earlier this year. Both will be available across the grocery channel. In June the range will also see the introduction of a limited edition Jalapeno Fire flavour to the impulse range.

The Doritos portfolio is complimented with a dips range, which includes great flavours such as Mild Salsa, Cool Sour Cream & Chives and Hot Salsa.

Doritos perform very strongly, recent Nielsen Total Scantrack results (21 April 2013) report it is the biggest sharing bag brand in the Irish market. Furthermore three of the range’s core SKUs are included in the top four sharing bags.

Doritos is currently bought by 21.3% of Irish households which is more than any other sharing bag brand*.

What are the key consumer trends within the crisps and snacks category and how has Doritos met these needs?

We recognise that Irish consumers’ taste buds like ‘hot’ and ‘spicy’ flavours, and this is evident in the fact that the number one flavour in the Doritos range is Chilli Heatwave. This product delivers on the flavour credentials the Irish consumer is looking for. In addition to this the introduction of the new limited edition flavour Jalapeno Fire this summer, will answer both consumer trends and requirements with another spicy option in the category.

The accompanying dips range allows consumers the freedom to enjoy great tastes and flavours through a variety of chip and dip combinations. This ensures the sharability of the product, making it ideal for social occasions and get togethers.

How heavily has Doritos invested in advertising this year and do you believe your marketing has struck a chord with Irish consumers? If so, why?

2013 is a very important year for Doritos in the respect that it is the first time Doritos will be advertised above the line. However in advance of this and despite limited above the line advertising, the brand has a very high awareness level of 88%. This is attributed to great in-store activation and latent brand awareness for Doritos from other markets, namely the US.

This year, we’ve put support behind the brand via our advertising campaign leveraging the Doritos Mariachi band. With the strapline, ‘For fun add a little Mexican’, the humorous ad shows that when you add Doritos to any occasion, just like the Mariachi band, they add to the fun with a Mexican twist.

This new marketing approach will also be supported in-store by leveraging summer occasions for consumers such as barbecues and parties as well as key Mexican events with impactful point of sale materials. We feel that Irish consumers always enjoy humour and will welcome the inclusion of this as part of already social and fun occasions.

*(Source: Kantar Worldpanel 52WE 17 March 2013)

Inspired by Nacho

KP Snacks is excited to launch Nachos, a brand new range of tortilla chips inspired by the Mexican restaurateur affectionately known as ‘Nacho’. Finding his kitchen bare for some late evening customers, Nacho created an impromptu dish of tortilla chips topped with melted cheese (queso) and chillies. Based on this legend, KP has developed a range of tortilla chips. Nachos are available in three flavours: Queso Cheese, Lightly Salted and Picante Chilli. Nachos come in 175g sharing bags, perfect to tap into the growth of adult sharing in the category. Nachos will be available over the coming weeks in selected retailers nationwide.

McCoy’s continues its support of the McCoy’s Premier League Darts with on-pack promotions

Something for everyone

KP Snacks has a wide range of products in its portfolio to drive sales. Hula Hoops is KP’s biggest brand, available in handipack, multipack and sharing formats and in multiple flavours. The recent on-pack snacktrack promotion on handipacks proved popular and is followed up with the return of the 25% extra fill. Hula Hoops is supported with an integrated marketing campaign including TV, outdoor, radio and digital.

McCoy’s crisps is the number two ridge crisp in the market and has seen growth of 6% year-on-year. Earlier this year McCoy’s six packs moved to 20% reduced packaging after positive feedback from a similar initiative on Hula Hoops seven packs last year. Not only providing environmental benefits, the move has reduced footprint on the shelf, meaning greater shelf utilisation for retailers.

Nuts

The McCoy’s six pack range has been extended to include the new McCoy’s Jackets; a new flavour range inspired by jacket potato filling flavours. McCoy’s continues its support of the McCoy’s Premier League Darts with an event already held this year with more to follow. McCoy’s is also supported by digital, radio and TV.

KP Nuts include a wide range of branded nuts. From old favourites such as Salted and Dry Roasted Peanuts, to innovation in nut mixes and flavours, there is something for everyone in the KP portfolio. Check out your local cash and carry for price roll backs on 50g Salted and Dry Roasted Peanuts. Keep your eyes peeled for new innovative products launching later this year.

Taste of the sea

Keogh’s Irish Atlantic Sea Salt flavour, its newest addition to its range is the only lightly salted crisp produced in Ireland

Keogh’s, the entrepreneurial Irish farmers who have been cultivating the fertile lands of north county Dublin for over 200 years, have collaborated with O’Neill’s Irish Atlantic Sea Salt, from the Beara Peninsula in west Cork, to create the newest flavour in the Keogh’s range of hand cooked potato crisps; Keogh’s Irish Atlantic Sea Salt. This lightly salted flavour with ‘just a pinch of salt’ is the fourth core flavour from the Keogh’s range of artisan hand cooked potato crisps and is the only lightly salted crisp produced in Ireland. O’Neill’s is the only producer in Ireland to harvest gourmet, dried sea salt that is extracted directly from the Atlantic Ocean.

The Keogh family are renowned for supplying fresh, Irish produce to the local market and are the only producers in Ireland growing potatoes and cooking crisps from the same potatoes on their farm, often turning crop to crisp on the same day. Keogh’s Irish Atlantic Sea Salt Crisps are available in Superquinn and Dunnes Stores nationwide as well as select independent food retailers in a large sharing bag for €2.49 and a small impulse bag for 99c. For more information visit www.keoghs.ie.

Veronica's

Healthy snacks, healthy margins

Veronica’s Snacks was set up in 2012 by Veronica Kenneally, a mum of three from Cork, who was looking to develop and produce healthy snacks, without compromising on taste. The company is gearing up to take a slice of the lucrative ‘free-from’ market across Ireland and the UK which is growing by 10% year-on-year*. Its baked crisps are healthy snacks, gluten-free, with 60% less fat than other crisps, no cholesterol, no trans-fat, no wheat and lower in salt. The snacks come in two sizes; a 23g bag with a RRP of 99c and a 85g bag with a RRP of €2.79. The packaging and POS materials are designed to appeal to female shoppers in particular.

VeronicasVeggie

The snacks were launched in two flavours; Barbecue and Sour Cream, Herb and Onion. Newly added to the range are two Veggie flavours; Roast Garlic and Mixed Herb, and Roast Tomato and Spanish Paprika. Veronica’s Snacks has listings in place with several supermarket groups with a promotion event in the pipeline which will involve nationwide tastings. Veronica’s Snacks will be supplied for goody bags at the Cork Mini Marathon, Tipperary Women’s Marathon and Limerick Mini Marathon which take place in September/October. For sales enquiries and POS display materials contact Louise Benson on 021 2412996.

*(Source: Datamonitor)

Tasty alternatives

With growing numbers of consumers looking for healthy snack options, Jack Link’s range of products presents a major profit stream for retailers. Ampersand is the exclusive distributor for the Jack Link’s range in Ireland and has seen fantastic growth in the category since its appointment. Sinéad Smith from Ampersand says: "Jack Link’s brand is growing at 29% year-on-year. Some shoppers perceive healthy snacks as ‘boring’ and ‘unappetising’ but the Jack Link’s range offers a variety of exciting flavours including Sweet and Hot and Flamin’ Buffalo."

The range offers high unit sales and high cash margins for retailers. The outer display box takes up a relatively small amount of shelf space and the brand’s selection of clip-strips means the products are ideal to be multi-sited to offer an entirely incremental sales and margin opportunity. Both formats can be displayed next to crisps and snacks and the clip-strips are perfect for positioning next to drinks in the refrigerators and deli counters in-store. The Jack Link’s product range comprises of Beef Jerky Original, Beef Jerky Sweet and Hot and Chicken Bites Flamin’ Buffalo with RRP from €2.29. For more information, contact your Ampersand representative.

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