Golden Wonder of the £1 PMP
CONSUMERS are very smart at seeking out value for money – especially when their budgets are squeezed in the way they are during the ongoing cost-of-living crisis.
But despite the price hikes, snacks remain an affordable treat as shoppers buy into what is good relative value.
For that reason, Tayto Group believes £1 PMPs are a must-stock in the convenience channel. They have been the main driver of category growth – growing more than twice as fast as the market.
Inflation pressure is forcing many brands to move above the £1 price point, but Tayto brand Golden Wonder says it is determined to put consumers and retailers first.
Marketing director Matt Smith said: “Having surveyed both, it was clear how important the £1 price point is. In the current climate, consumers are feeling the pinch and independent retailers need to showcase great value for money.
“Instead of raising the headline price of our £1 PMPs, we’ve decided to stick to £1. Our new range is in stores now and demonstrates Golden Wonder’s commitment to delivering great consumer value while offering strong retailer margins.”
IRI data shows Golden Wonder’s success, with its £1 PMP range outperforming the market (growing 22.6% versus 9.9% in a year) and Transform-A-Snack being the star performer, rising by 42%.
Smith added: “Convenience shoppers worry that they will pay more for shopping locally and PMPs give them confidence that they are not being ripped off. That’s why PMPs have increased to 75% of snacks sales in symbols and indies, according to Norstat.”
Broadening the appeal
RETAILERS can maximise their sales by ensuring that they have a range that covers the key price points, says Tayto.
The entry point is where great value for money is essential, such as Golden Wonder’s Tangy Toms and Spicy Bikers 35p PMPs, which have the added benefit of a two-for-60p on-pack promotion.
Impulse covers a core range for on-the-go occasions and lunchtime snacks (e.g. Golden Wonder’s 50p Transform-A-Snack).
Meanwhile, £1 sharing demands a big focus as the largest and fastest growing segment. Golden Wonder’s Ringos, Transform-A-Snack and Spicy Bikers are good examples.
Tayto marketing director Matt Smith added: “Our 35p Fun Snacks range is delivering 16% year-on-year growth. Its success is underpinned by the added value of the two-for-60p on-pack promotion.
“With a redemption rate of 80%, this offer is great news for consumers and independent retailers, especially in a cost-of-living crisis.”
