The hike in commodity costs in 2008/2009 led to hefty price rises in the industry says the report in its Executive Summary, and there have been corporate casualties as a result: “For example, Natural Crisps Ltd was close to administration when it was bought by Tayto Crisps of Northern Ireland. The deal was Tayto’s fourth acquisition in 3 years, following its purchases of Golden Wonder in 2006, Real Crisps in 2007 and Red Mill Snack Foods in 2008. Further consolidation in an industry currently dominated by Walkers Snack Foods seems likely in the future, especially as the recession continues and companies struggle to survive.”

Key Note forecasts that the retail sales value of the UK snacks market will grow by an overall 5.3% between 2010 and 2014 to finish at £2.61bn.

Healthy snacks

Snacking is by its nature impulsive, so it’s no surprise that the sale of vended food and drink is in demand in a number of locations and settings. More often than not, the consumer’s vending machine spend is neither budgeted, nor accounted for, so even when finances are strained purchases like these will avoid the crunch.

Consumer tastes have changed remarkably in recent years, with programmes such as You Are What you Eat and Jamie’s School Dinners encouraging us to think twice about what we put in our mouths. With the media shining its spotlight on the obesity issue, brands have responded to calls for healthier alternatives by creating products that meet the consumer’s rising expectations about food.

Despite fears it would harm sales, the ban on ‘junk food’ in schools, together with other government and community initiatives designed to improve our eating habits has opened up a number of marketing opportunities.

Manufacturers have carried out extensive research into the age and life stage of various target groups, responding to the demand with products that appeal to a more discerning, and dare we say it, healthier palate. There are now a number of takes on old favourites low in sugar, salt and fat designed to ensure brand loyalty, together with a generous serving of new products, all whetting the consumer’s appetite for more.

Jonathan Barr from Sun Valley comments: “It is important that the vending industry continues to offer consumers as much choice as possible, and increasingly this means healthy snacking options. Whether vending machines are in hospitals, schools, the workplace or other public spaces, research tells us we need to be offering consumers more than just crisps and chocolate bars.

“We’ve developed a range called Nature snacks – an extension of our best-selling You Are What you Eat brand – which gives consumers a choice of four healthy snacks, each with its own great taste - Nature with a hint of exotic Berries, Nature with a hint of naughty Chocolate, Nature with a hint of exotic Fruit & Nut and Nature with a hint of naughty Yoghurt. This combination of healthy nuts and fruit - with a twist - has really captured the public’s imagination. As well as providing a tasty, low fat snack, each one also counts towards the recommended five a day.

“When energy levels drop and hunger strikes, we reach for a snack. Delicious, healthy snacks, easily available through vending machines, are the perfect answer. Nuts and fruit provide a balance of carbohydrates, fat and protein which provide a much needed boost of energy. A mid-morning pack of Nature is a healthy solution which sees you through to your next meal.

“Nuts are so nutrient dense, you don’t need to eat a lot of them and so snack packs, as well as being ideal for the vending industry, are also just enough to satisfy and are the ideal size, whether at work or on the go. Bunzl Vending have just listed the range nationally as their recommended healthy fruit & nut brand.”

Cranberry Group, a leading manufacturer and retailer of dried and roasted nuts and fruit snack foods, has added a new variety, sliced chunked mango, to its convenient Grab Bag range of snacks. The pre-packs are distributed by Cranberry Enterprise, the Company’s specialist sales arm for pre-packaged snacks.

Sliced, chunked mango is one of the top selling lines of over 140 products sold in Cranberry’s retail stores and its launch in pre-packed form is now possible thanks to a new packing process. The mango product is sourced from the Limpopo province of South Africa, and although dried, it remains succulent and readily re-constitutes in the mouth. It is rich in fibre and this 75g pack counts towards your essential 5-a-day fruit and vegetables.

Mango brings the total of different selections in the Grab Bag range to eleven. These are a crossover between healthy snacks and confectionery treats, which has proven appeal amongst a broad cross-section of customers - not just those looking for a strictly healthy option. The range, strongly branded with see-through product windows, is ideal for elevenses, as a lunchtime snack or at cocktail time. The Grab Bags feature Cranberry’s distinctive branding and weigh between 75g and 140g, depending upon the product and each has a recommended retail price of £1.99 per bag.

Speaking about the introduction, Director of Sales for Cranberry Enterprise, Trevor Stroud, explains how the Grab Bag range satisfies those wanting a healthy snack as well as those looking for an indulgent treat: “These mango chunks are a great tasting healthy snack - totally natural, with no additives or preservatives. They are one of the top selling retail lines – and with good reason - they simply melt in the mouth. However, the reason our pre-pack ranges appeal to such a broad selection of people is that they also offer options such as chocolate brazils and honey cashews for those looking for a healthy indulgence. We give the customer the choice and leave the selection up to them.”

Potato snacks

Kettle Chips, the original hand-cooked potato chip, is said to be the UK’s number one premium crisp brand with total sales worth £84m at RSV. Within the Impulse market, the brand has now gained 71% share of the Premium Crisp market, driven by a 22% year on year growth (MAT). Kettle Chips continues to be a major driver of category growth.

Stocking Kettle Chips represents a fantastic opportunity for vending operators to capitalize on the consumer appetite for better quality snacking options with no artificial ingredients or added MSG, says the company. Whilst Kettle Chips have long been enjoyed as an at home treat, the smaller bag enables consumers to also enjoy these great tasting crisps on the go.

The Kettle Chips 40g bag offers a more convenient snacking format for hand-cooked quality and authentic seasonings popular with many of today’s consumers; a strong rate of sale and healthy profit margins; and vibrant packaging for great visibility and stand out.

The range includes seasonings to suit a variety of tastes: Lightly Salted, Sea Salt & Balsamic Vinegar, Sea Salt with Crushed Black Peppercorns, Mature Cheddar & Red Onion and Sweet Chilli.

The team behind Kettle Chips has developed an exciting new product for 2011 - Kettle Ridge Crisps. Aimed at a slightly younger audience than the core Kettle Chips range, Kettle Ridge Crisps combine a crispy ridged texture with big, bold flavours. The new crisps come with the hand cooked quality and authentic great taste that you would expect from Kettle and as ever they haven’t felt the need to add anything artificial such as MSG, or artificial colours or flavours. Ideal for vending – tasty Kettle Ridge Crisps Flamed Steak will be available in the 40g bag size this month.

Boosting sales of confectionery

The 2010 Confectionery Market Report Plus examines the UK market for chocolate and sugar and confectionery. Over the review period (2005 to 2009), total sales increased in value by an estimated 10%, to £4.83bn. Chocolate remains the largest of the two main sectors and also showed the highest growth over the period, it says.

The report continues: “The market is highly branded and there has been ongoing investment in product development, despite the economic downturn. A number of brands have been extended into sharing formats, such as pouches and tubs, in a bid to capitalise on informal sharing occasions.

“There is evidence that the market is adopting a more ethical stance, with both Cadbury Dairy Milk and KitKat gaining Fairtrade chocolate status while Green & Black’s has announced that its full portfolio should be certified by 2015. Concerns about deforestation have also led the major players to commit to the use of sustainable palm oil in their products.”

As the Official Treat Provider of the London 2012 Olympic and Paralympic Games, Cadbury kicked off a two year campaign which in August 2010 will see the nation split into two teams and immersed in game play in the lead up to London 2012 together with the launch of the Challenge Bar.

Talking exclusively to Vending International Susan Nash, Trade Communications Manager at Cadbury UK says: “To achieve the best results, it is important to stock the right range and flag the confectionery category with key brands, as over 70% of confectionery purchases are made on impulse, it is key that it is visible.”

In further merchandising advice, Susan adds: “A good place to start is to stock the best ‘core seven’ Cadbury chocolate singles range – Wispa, Twirl, Cadbury Dairy Milk, Caramel, Boost, Double Decker and Crunchie. The variety of the range means that products on offer can be tailored to the right customer groups.”

To make the most of their Mints and Gum range it is important for vending operators to ensure that shoppers see these products in the machine, insists Susan. “The Mint and Gum categories are not usually top of mind for shoppers in-store and can be easily forgotten. However, we know from extensive research that when consumers see these products the majority of them go on to purchase, so Out of Home retailers must do all they can to maximise presence and location of Mints and Gums. Also follow simple merchandising guidelines, primarily blocking by category but then also by locating Mints and Gum together in one location, flagged by top-selling brands such as Trident and Trebor, for maximum visibility.”

Speaking of the latest developments by Nestlé Professional, Head of Category Marketing, Nikki Adamo comments: “New products consistently prove successful in vending due to the high propensity for consumers to impulse buy a new bar that catches the eye! Aero has recently launched two new ‘irresistibubble’ bars, which are bound to help drive spring vending sales.

“The new ‘loveabubble’ Aero Caramel bar is perfectly suited to vending as it is both easy to vend and in line with popular consumer impulse confectionery demands and taste profiles. At 189 Calories and consisting of five bite size pieces, the bar has all the taste and bubbly milk chocolate of Aero infused with a tempting caramel centre. The bar looks set to become a firm favourite with consumers, whilst delivering real profit to the vending operators’ bottom line.

“To drive consumer purchase, why not position Aero Caramel next to Aero Medium Peppermint or Aero Medium Milk bars in the vending machine or group with more indulgent chocolate treats? To further entice consumer product trial, operators can invest in an Aero Caramel branded electrostatic; adhesive-free stick-on branding, which is easy to apply and peel off without leaving marks.

“With seasonal impulse confectionery a growing trend in the UK, vending operators can also capitalise on the brand new must-have spring impulse product, the Aero Lamb. Described as a lighter bite the Aero Lamb is a deliciously permissible treat at 145 calories and contains no artificial colours, flavours and preservatives. Beneath its 3D lamb shaped exterior is an appetising treat filled with Aero bubbly milk chocolate. By stocking up on Easter products now, consumers will become familiar with the product and enjoy repeat purchases, allowing vending operators a greater opportunity to realise its true sales potential.”

HOT snacks

Feasters is the fastest growing microwaveable snack brand and its new vending packs bring a wide choice of popular branded hot snacks into the vending market.

The Feasters ‘Micropack’ is placed directly into the microwave, removing the need for plates or cutlery.

What makes the product unique is the patented ‘Microvent Technology’ which works with the innovative ‘crisper sleeve’, also known as a susceptor to wrap around the product during heating and create a microwave baking effect - browning the bun and leaving it feeling crispier and tasting ‘oven baked’.

Feasters vending range includes its top five leading microwaveable snacks in a format designed to go straight into the microwave – the ‘Flamegrilled Quarter Pounder with Cheese’, the ‘Whole Flamegrilled Chicken Breast Sandwich’, the ‘Ham and Cheese Melt’, the ‘Breakfast Baguette’ and the ‘Chicken Bacon and Cheese Melt.’

The link between modern life and poor diet can not be emphasised enough. With the demise of the lunch hour, consumers in need of a quick fix will crave high fat, sugary food with little concern for its content. The vending industry plays a key role in supporting consumer lifestyles and can help inform purchasing behaviour by providing healthier alternatives. Eating habits are informed by a number of factors and as an industry, we must offer consumers the choice with healthy products sitting alongside more traditional snacks and confectionery.

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