Helena Drakakis finds out how PepsiCo has helped Bestway boost its savoury snacks sales since working with them on a category review focusing on bestsellers.
PepsiCo has forged a longstanding partnership with Bestway over 40 years. Most recently, PepsiCo and Bestway have worked together to drive sales of savoury snacks to convenience retailers through the wholesale channel.
Using data and insight to reinvigorate the category, PepsiCo has placed representatives in depot to focus on range and merchandising. On-pack promotions and ‘bestseller’ flashes across the core range of crisps and snacks are also helping to drive sales, while a smaller, 32-case format has been introduced to improve customers’ cash-flow and reduce wastage.
Category
Having identified that the savoury snacks market was flat, it was important for PepsiCo and Bestway to work together to turn this around, especially in the London area where savoury snacks is a key category. By undertaking a full category review and allocating the right space to bestsellers, they have worked together to create new opportunities for vibrant sales and to help prevent any potential sales decline.
Range
In the crisps category there are more than 800 lines available to wholesalers, but in the average depot the top 10 lines count for 20% of sales. With the average independent achieving 80% of sales from the 45 top selling savoury snacks, it’s important not just to stock a core range, but the right core range.
“If retailers are stocking bestselling lines, they’re making more money, and they’re buying from Bestway, so the wholesaler is also making more money. To achieve this we’re focusing on the right range to be carried within cash and carry,” explains Nick McGrath, senior sales director at PepsiCo.
Using data sourced from Nielsen, PepsiCo has also placed ‘bestseller’ flashes on cases to guide wholesale customers through this process. “Wholesalers can learn how to optimise their stock holding, and make more of their cash by taking the plunge to cut their range. And with the bottom 100 SKUs only selling 1%, there’s very little risk,” he added.
Space
Maintaining a bestselling range and having good availability is key to driving sales, so PepsiCo and Bestway have ensured this is unmissable in depot. With the right space dedicated to bestsellers, a logical flow in the aisle, clear shelf strips and eye-catching PoS, PepsiCo has made the most of in-store visibility to create demand. “Bestselling flags are on cases but also on fins in the aisle and in all of our category advice, and it’s working really well. Customer feedback’s been great and sales have gone up,” said Martin Race, group trading director at Bestway. One customer, Roshan Ramzan, of Best One in Methil Scotland, said: “Merchandising, along with a new range of PMPs has had a profound impact and increased single serve sales by 22%. Our customers love top brands at great prices.”
Pack Size, Promotions and PMPs
Walkers has introduced an extensive range of price-marked packs in single serve and sharing formats. PepsiCo’s research shows that Walkers PMP crisps sell on average 20% quicker in impulse than non-PMP variants.
PepsiCo has also launched a new 32-case format in its Walkers, Doritos, Quavers, Wotsits, French Fries and Squares portfolio, covering all price points. The standard 48-case format has been retained across the top three Walkers crisp flavours. The 32-case launch has brought new customers into the category, enabling them to stock up on secondary flavours without wastage.
A Walkers ‘Holidays’ on-pack promotion, which gives the public the chance to win one of 20,000 holidays, has also been driving excitement. Available across the Walkers core range in both singles and multipacks, the promotion has been supported with an advertising campaign and supporting PoS. It is currently featured front of depot at Bestway.
Top tips from Pepsico and Bestway
1. Stock the right core range: Stocking the right core range can account for the majority of crisp and snacks sales, and the uplift can be as much as 30%. Don’t over-stock too many lines – the 45 bestselling savoury snacks lines account for 80% of sales. Retailers should dedicate 60% of their snacking fixtures to bestselling single serve crisps.
2. Position well: Wholesalers can help customers by reminding them that snacks such as crisps should be kept no more than six feet away from the till, as many snacks sales are made on impulse.
3. Know what’s on trend: Occasions like ‘big night in’ are growing sales opportunities with +6% year on year growth in the sharing sector. 86% of households buy sharing packs at least once a month and PepsiCo’s sharing portfolio is growing at 17.6% year on year.
4. Know your customers: Shoppers continue to look for value, and PMPs are proving successful, but it’s also important to stock the national bestsellers and tailor your offering to shoppers, for example, make sure you stock multipacks for customers doing top-up shops.
5. Use support: Encourage customers to visit PepsiCo’s online rewards and category management website www.countsformore.co.uk to help maximise snacking sales and earn rewards.
