DOES price remain vitally important to shoppers? The short answer appears to be yes, especially £1 prices.
Bev Seymour, commercial manager of Chewits brand owner Cloetta UK said the confectionery category, across chocolate and sugar confectionery, is in decline and she reckons that shows the current economic climate is ensuring shoppers remain cautious.
She said: “Brands recognise the power of the perceived value of a PMP, which is why we have seen a flurry of PMPs where the pack size has been engineered to make the £1 price point work.”
• And Ross Stanley, head of trade marketing at Big Bear Confectionery, takes a similar view.
He said: “Round pound deals are consistently successful, and the majority of our branded lines, from Poppets to Fox’s, feature one or more products at a £1 price point.
“We find price-marked packs are a great way to reinforce this appealing price point to consumers.”
Big Bear PMPs often have margins in the region of 25% to 30%, he said.
