winning with biscuits...with aldi/lidl +16% and bargain stores +5.2%. penetration growth was the...

Winning with biscuitsAnnual Biscuit Review 2019

The findings of the latest review will, as ever, be an invaluable resource enabling us to work together to unlock the huge £264 million opportunity that remains to be seized over the next couple of years.

It is likely that the impact of COVID-19 will become apparent both in changes to the way we shop and, in the products and formats we favour, for the foreseeable future. We hope this year’s Review will help to guide retailers large and small through some of the challenges to come.

It’s true that there are uncertain times ahead, but as the number one biscuit supplier in the UK, where £1 in every £5 spent on biscuits is on a product within our range, we feel optimistic about the continued growth of this vast and important category.

Scott Snell Vice President of Customer pladis UK & Ireland

ForewordNow worth £2.7bn, biscuits boomed in 2019 and the category grew by +2.5%, adding an impressive £66 million to total value sales.

In our Annual Biscuit Review 2018 we shared research into snacking habits which revealed four new drivers of snack consumption for British shoppers (you can find out more about these drivers on page 8 and 9 of this review).

Last year’s striking growth tells us that retailers, wholesalers and foodservice operators have used this knowledge to successfully tap into shoppers’ evolving eating patterns. And, in the process, they’re beginning to unlock the vast £330 million sales opportunity for biscuits.

But, there’s much more for retailers to take a bite out of over the next two to three years. So, what next?

In this year’s review, you’ll see that core biscuits mean business. In fact, core products such as McVitie’s Jaffa Cakes and McVitie’s Chocolate Digestives were responsible for delivering more than two-thirds of category growth in 2019.

The importance of core products to the biscuit category should never be underestimated and focusing on the core fixture by optimising the product range and following our ‘Better Biscuits’ merchandising principles, should be a top priority for retailers. This is now more important than ever, as shopper behaviour evolves due to the coronavirus pandemic.

Looking forward, there are also clear opportunities for retailers to drive further growth:

1. Be on hand wherever shoppers are

2. Make it easy to shop

3. Drive new occasions and rituals

4. Attract younger shoppers

5. Sustainability

6. Health

7. Indulgence

8. Trade up

9. Smarter promotions

Annual Biscuit Review 2019 1

The purpose of this reviewThis review has been produced by pladis from independently generated data and as far as possible, is a true and impartial view of the segments, manufacturers, brands and trends shaping the biscuits category in the year ending December 2019.

Executive summary• Biscuit sales in the UK touched £2.7bn

(£2,696m) in retail during 2019, bought by 99% of all households.

• Total growth of +2.5%, or £66 million in value sales, was driven by both Sweet and Savoury Biscuits, +2% and +4.8% respectively.

• Core products like McVitie’s Jaffa Cakes and McVitie’s Chocolate Digestives delivered more than two-thirds of category growth in 2019.

• Sweet Biscuits remained the largest part of the category with sales of almost £2.2bn:

• Classic Biscuit sectors like Everyday Treats, Chocolate Biscuit Bars and Everyday Biscuits all returned to growth, following a more typical British summer and a volatile political climate. It’s at these times of uncertainty that we see shoppers reaching for small, permissible treats.

• Chocolate Biscuit Bars and Everyday Biscuits were the fastest growing sectors, driven by KitKat and McVitie’s Digestives.

• pladis led in Sweet Biscuits with a growing market share of 19.7%, while McVitie’s was the biggest brand with an almost 13% share and strong growth of +3.7%.

• Healthier Biscuits remained the largest sector at £569 million, but growth has slowed from +4.5% in 2018 to +1.3% in 2019.

• Savoury Biscuits were worth £501m and growth more than doubled from +2% in 2018 to +4.8% in 2019:

• This growth was driven by Ricecakes +10%, which are often seen as a healthier option, and Crackers.

• pladis led Savoury Biscuits with a 22.4% share, while Jacob’s was the top brand.

ContentsThe importance of biscuits in the snacking category

Role of biscuits in Britain

Macro influences on the category

2019 biscuits performance headlines

Snacking growth drivers

Opportunities for 2020 and beyond

How to win with biscuits • Merchandising • Promotions • Core range

Total biscuits spend

Retail – biscuit performance

Sweet Biscuits

Savoury Biscuits

Sweet – Everyday Biscuits

Sweet – Everyday Treats

Sweet – Special Treats

Sweet – Novelty Treats

Chocolate Biscuit Bars

Sweet – Christmas Biscuits

Sweet – Healthier Biscuits

Sources

pladis contacts

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Role of biscuits in Britain

Biscuits significantly contribute to the overall

success of snacking category Second largest snacking

category at 23% value share

Biscuits offer an affordable treat

Relatively recession proof in uncertain

economic times

The biscuits category is a sales booster for

retailersBiscuits is a spend driving category;

shoppers are likely to be influenced by

promotions, innovation and impulse

The importance of biscuits in the snacking category

Biscuits are consumed throughout the day,

across all consumption moments

They’re consumed by

people of all ages

Britain is the second largest consumer of Sweet Biscuits in the world, with biscuits

eaten 3.2 x a week

Biscuits meet all snacking needs,

from reward all the way through to sustain

Biscuits worth £2.7bn in 2019 and growing +2.5%

Traces its roots all the way back to 7th century- biscuits are baked into our DNA

Found in nearly every UK household with 99.5%

of households purchasing 47 times a year

Sales and consumption

vs other snack

foods

In times of uncertainty and

confidence

Everyone eats

biscuits

Part of British

daily lives

65% of biscuits are consumed

with a hot drink

Humble and utterly trivial, yet immensely

powerful, bringing people

together

Heritage

Britain is a nation of biscuit lovers

Affordable

everyday treat

Fre

qu

ency

of

con

sum

pti

on

Usage by age

Scale

3.7 Core Snacking

Chocolate Confectionery5.2

Nuts4.8

Crisps and Snacks4.0

Cakes and Pastries3.5

Sugar Confectionery1.4

Savoury Biscuits4.8

Sweet Biscuits2.0

Popcorn-1.2

Snacking Categories growthRetail sales value

Chocolate Confectionery £3.1bn

Biscuits £2.7bn

Crisps and Snacks £2.3bn

Cakes and Pastries £2.1bn

Sugar Confectionery £954m

Nuts £558m

Popcorn £101m

Snacking is worth £11.9bn in the UK, with

£500 spent on snack foods every second


Adapting to a changing

environment

Macro influences on the category

Shopper uncertainty means

they are less willing to spend

33% of shoppers are expecting to be worse off in 2020

Shoppers are less loyal across

channels

83% of shoppers use more than four channels each month

Health habits are changing and

influencing choice

13% of people identify as vegan or vegetarian and 21%

flexitarian

Environmental awareness means

shoppers are looking for green

credentials

88% who saw Blue Planet II

about plastic have changed their

behaviour

Shoppers are focussed on

price, looking for discounted offers

62% of shoppers use

food discounters each month

Private label and added value services

are being used as a differentiator

Total grocery branded sales

declined by -1.3% at the end of 2019

Inflationary pressures and

rising costs across the industry

Inflation is expected to drive

80% of the grocery market growth

Retailer focus on range efficiency

Number of Sweet Biscuit

SKUs in store has declined by

-3.9% vs two years ago


2019 biscuits performance headlinesBiscuits category growth is accelerating (+2.5% in 2019 vs +1.2% in 2018)

• Leading brands performed well - McVitie’s Jaffa Cakes +18%, McVitie’s Digestives +7%, KitKat +6%.

• Private label growth remained strong but slowed slightly to +4.1%.

• Growth was dampened by a difficult Christmas performance. Seasonal Biscuits sales were -4.8%, £11m less than in 2018.

• Sweet and Savoury Biscuits both saw growth in 2019 with Savoury growth +4.8% more than double that of Sweet +2%.

The channel mix continues to evolve

• Grocery multiples saw sales fall back slightly at -0.8% in 2019.

• Discounters remained the key growth area with Aldi/Lidl +16% and bargain stores +5.2%. Penetration growth was the major driver of this with the channel adding 308 stores throughout 2019.

• Online +6.3% was in strong growth with Ocado the shining light at +27%.

Range efficiency is slowly improving but there is still a large tail

• Range efficiency remains important for all retailers in order to control costs in the supply chain, simplify the shopping experience and give true innovation more visibility at the fixture.

• Analysis on the biscuits category showed the top 12% of products delivered 80% of sales.

Healthier growth is slowing

• Healthier Biscuits has seen growth slowing significantly in 2019 at +1.3% as consumers opted for more ‘treaty’ products.

• Chocolate Biscuit Bars +£24m and Crackers and Crispbreads +£16.3m drove the category forwards.


27% C

hocolate

Confectio

nery

19% Sweet

Biscuits

19%

Cri

sps

&

Sn

acks

18% Cakes

& Pastries

7% Sugar

Confectionery

5% N

uts4

% Savo

ury B

iscuits

1% P

op

corn

• 39% of snackers look for healthy products all or most of the time when choosing a snack.

• 32% of snackers actively avoid buying processed snacks.

• 47% of mothers feel their family has too much sugar in their diets.

• 37% of consumers will snack instead of having a proper meal at least once a week.

• 64% of snackers feel snacks are important to help keep their energy up throughout the day.

• 44% of adults see snacking as a good way to boost their nutritional intake.

58% of shoppers like to eat new things and 37%

like looking for new snacks when in stores.

30% of Sweet Biscuits buyers are interested in

new flavours.

53% of savoury snackers say: “I am prompted to

buy when I see new flavours in stores”.

• ‘Connect’ is the key need for 24% of snacking occasions in the UK.

• In home growth is driven by emotionally motivated occasions of ‘Together Time’ which command a premium spend per person +29% vs an average occasion.

• 54% of Novelty Biscuits are eaten when three or more people are present creating great sharing moments.

• 66% of UK consumers think unhealthy snacks are fine as part of a balanced diet.

• 52% of snackers think that taste is more important than healthiness.

• 51% of adults think that healthier characteristics make indulgent snacks more appealing.

1. Sustain

Snacks are an essential fuel to get us through the day 3. Togetherness

We cherish the moments we get together with family and friends

2. Balance

Health is about looking and feeling good and snacks can help us achieve that balance

4. Indulgence

We all deserve to reward ourselves with a special treat

Discovery

Discovery details how to win with NPD through snacks that give everyday little lifts to all our senses

Snack Spend

2/3 of snacking spend comes from the three largest

categories

Snacking growth driversThe snacking category continues to evolve at pace and boundaries between sub categories are blurring. Innovation increasingly serves a need state rather than being defined by product format. A clear snacking category is needed to future proof and drive category growth in this rapidly changing world. We need to ensure we meet both the needs of consumers and shoppers and flex the retail environment accordingly to attract and encourage more shoppers to buy more frequently.

Snackers continue to seek healthier options as part of a balanced diet.

Convenient snacks are gaining relevance to fuel our changing lifestyles.

Snacks are a way of appealing to those looking for new and adventurous culinary experiences.

Snacking occasions are the perfect opportunity to connect with family and friends on a more emotional level.

Snacking to fulfil the desire to treat and reward is still highly relevant and a snacking heartland.

‘Discovery’ is an enabler to drive growth within the four key areas

There are four key snacking category growth drivers:


4. Attract younger shoppersFuture proof the category and appeal to the younger generations.

• Younger shoppers looking for new products and product twists are a key future growth driver.

1. Be on hand wherever shoppers are

Make sure biscuits are everywhere, in and out of the home.

• Shoppers make an average of 24 shopping trips a month across multiple stores and channels.

6. Health Shoppers are looking for healthier and more natural products.

• Convenient snacks are gaining relevance to fuel our changing lifestyles.

• 39% of snack buyers look for healthy products all or most of the time when choosing a snack.

8. Trade upFocus on added value innovation and premiumisation, innovate with true added benefits to tempt shoppers to trade up.

• There is above average engagement at the biscuits fixture, with browsers particularly interested in new products.

5. SustainabilityEnvironmental awareness means many shoppers are looking for green credentials.

• 88% who saw Blue Planet II about plastic have changed their behaviour.

2. Make it easy to shopOptimise ranges and drive availability on core lines.

• Sweet Biscuits shoppers are especially focussed on range and enjoyment of the shopping experience.

• Opportunity to make the Sweet Biscuits category a more enjoyable experience.

7. IndulgenceSnacking to fulfil the desire to treat and reward is still highly relevant.

• 20% of snack buyers eat snacks to cheer themselves up and 19% eat snacks to relax/de-stress.

9. Smarter promotionsMake limited promotional space work harder and smarter to drive more incremental sales.

• Optimise discount levels, focus on the brands that drive the most incremental sales and minimise cross category cannibalisation to drive growth.

• Feature and display is really important to attract unplanned shoppers.

Opportunities for 2020 and beyond

3. Drive new occasions and ritualsCapitalise on evolving snacking habits replacing traditional mealtimes.

• 65% of biscuits are consumed with a hot drink.

• Develop new biscuit rituals and synergies beyond the traditional pairing of tea and biscuits.

Biscuits are big but can get bigger!


‘Premium’ private label products should be on

the top shelves.

Well known brands that help shoppers find the fixture and tempt them to buy,

should be on the middle shelves.

‘Entry level’ private label

products should be on the bottom shelves.

Average spend per customer went up -

where data was available we saw +5% growth

Impulse shoppers were being tempted by higher

value branded lines

Store sales increased on average by +28%

+28%

Key learnings from store trials

These merchandising principles have been

tested in a number of Convenience store

trials in 2019

Brand tiers

“You see the red packs

and know you are in the main biscuit

section”

A clearly laid out fixture can increase sales by helping shoppers find the category and then the product they want more easily. Remember, shoppers use the big brands to navigate in-store. As the most well known brand in the category, McVitie’s should be used as the beacon brand for biscuits.

Visual merchandising is a key driver of sales and arranging products into clear blocks is the best way to boost sales. Putting the same brands and product types together helps shoppers navigate the aisle and draws attention to the product’s features and benefits.

Convenience store example

How to win with biscuits MerchandisingMerchandising principles

Focus on biscuits that sell well in Convenience: Everyday Treats, Chocolate Biscuit Bars

and Everyday Biscuits

McVitie’s is the beacon brand for the category - specifically

Original Digestives

Special Treats

Everyday Treats (pouch)

Everyday Treats

Everyday Treats

Everyday Biscuits

Everyday Biscuits


NoveltyCrackers & Crisp- breads

Healthier Savoury


1. Allocation of feature

Backing the biggest and most promotionally receptive brands on the highest quality feature

2. Optimising discount levels

Ensuring the right mechanics and discount levels are

implemented to increase promotional uplifts and

effectiveness

3. Minimising interactions

Minimising product and cross category cannibalisation in

order to increase promotional ‘incrementality’

Allocation of feature

To optimise promotional effectiveness, we

have identified three fundamental pillars of promotional growth.

The Convenience Sweet Biscuits shopper has an ‘explore’ mindset, but also buys into brand with feature and display playing a key role.

Given the openness of these shoppers, it’s important to ensure they have impactful shopper activations

in store to excite and engage them.

Promotions

1 in 3 shoppers say that they are more likely to buy a product when on promotion

78% of respondents agreed that they always look for end

of aisle promotions

Convenience Sweet Biscuit shoppers are on a top-up

mission

In an ‘exploration’

mindset

71% 23%

Open to brand choice in-store

Purchase biscuits from special

displays

54% 28%

How to win with biscuits Promotions


1 McVitie’s Milk Chocolate Digestives

2 McVitie’s Milk Chocolate Hobnobs

3 McVitie’s Plain Digestives

4 McVitie’s Jaffa Cakes

5 McVitie’s Rich Tea

6 McVitie’s Dark Chocolate Digestives

7 McVitie’s Hobnobs Plain

8McVitie’s Club Milk

Chocolate/Orange

9 McVitie’s Gold Bars

10 Flipz Milk Chocolate

1 McVitie’s Milk Chocolate Digestives

2 McVitie’s Milk Chocolate Hobnobs

3 McVitie’s Plain Digestives

4 McVitie’s Jaffa Cakes

5 McVitie’s Rich Tea

11 McVitie’s Penguin Milk Chocolate

12 McVitie’s Digestives Caramels

13 McVitie’s Ginger Nuts

14 McVitie’s Cookie

15 Jacob’s Tuc Sandwich Original

16 Jacob’s Cheddars

17 McVitie’s Fruit Shortcake

18 Jacob’s Cream Crackers Plain

19 McVitie’s Jaffa Cakes Nibbles

20 McVitie’s All Butter Shortbread

In Convenience, 80% of biscuit

sales come from only 8% of products.

pladis core range in Convenience:

Convenience best sellers:

How to win with biscuits Core range

6 McVitie’s Dark Chocolate Digestives

7 KitKat 2 Finger 5 Pack

8 Private label Jaffa Cakes

9 Tunnock’sMilk Chocolate Teacakes

10 Tunnock’s Caramel Wafers

Focus on the big

sellers


Top biscuits products £m %

Change%

Share

KitKat 88 5.7 3.3

McVitie’s Chocolate Digestive 64 5.1 2.4

McVitie’s Jaffa Cakes 49 11.9 1.8

Belvita Breakfast Biscuits 41 -10.3 1.5

Cadbury Brunch Bars 37 12.3 1.4

McVitie’s Digestives 31 0.9 1.2

Tunnock’s Caramel Wafer 30 4.9 1.1

Alpen Light Cereal Bars 27 -9.4 1.0

McVitie’s Club 27 4.8 1.0

Belvita Breakfast Soft Baked 27 5.2 1.0

Ryvita Crispbread 27 -7.0 1.0

Nature Valley Crunchy 26 0.5 1.0

Biscuit frequency of purchase

47

40

13

14

14

13

12

6

3

7

All Biscuits

Sweet

Savoury

Everyday Treats

Everyday Biscuits

Healthier Biscuits


Special Treats

Christmas

Novelty Biscuits

Biscuit household penetration %

All Biscuits

Sweet

Savoury

Everyday Treats

Everyday Biscuits

Healthier Biscuits


Special Treats

Christmas

Novelty Biscuits

99

99

90

89

85

76

73

68

58

52

Total BiscuitsKey facts

Biscuits grew +2.5% last year driven by both Sweet and Savoury.

This was driven mainly by McVitie’s +3.7% thanks to growth in their core brands such as Chocolate Digestives and Jaffa Cakes.

For private label biscuits, it was once again the Euro Discounters driving the market, as well as a good performance from Tesco, whilst M&S struggled to match 2018 sales.

pladis had a strong year, almost +1% on 2018. £1 in every £5 spent on biscuits in the UK comes through pladis.

Top Biscuits manufacturers £m

% Change

% Share

Total market 2,696 2.5 -

pladis 532 0.9 19.7

Mondelēz 258 1.8 9.6

Nestlé 122 1.6 4.5

Burton’s 116 0.6 4.3

Fox’s 98 -0.8 3.6

Kellogg’s 64 -7.8 2.4

General Mills 63 1.7 2.3

The Jordans & Ryvita Co 59 -7.3 2.2

Total Biscuits £2.7bn +2.5%Sweet £2.2bn +2.0% (+1.0% in 2018)Savoury £501m +4.8% (+2.0% in 2018)

Private label biscuits manufacturers £m

% Change

% Share

Tesco 173 2.9 6.4

Aldi 171 10.2 6.3

Lidl 118 8.4 4.4

M&S 108 -6.8 4.0

Sainsbury’s 82 -2.8 3.0

Asda 77 1.8 2.9

Total private label 856 4.1 31.8

Top biscuits brands £m%

Change%

Share

McVitie’s 343 3.7 12.7

Fox’s 94 -0.3 3.5

KitKat 88 5.7 3.3

Belvita 83 -0.3 3.1

Jacob’s 72 -3.9 2.7

Kellogg’s 62 -10.0 2.3

Nature Valley 53 -9.6 1.9

Ryvita 50 -3.4 1.8

Tunnock’s 49 4.2 1.8

Burton’s 48 3.7 1.8

18 Annual Biscuit Review 2019 19

Top biscuits retailers £m%

Change%

Share

Tesco 613 1.7 22.7

Sainsbury’s 342 1.7 12.7

ASDA 313 -2.5 11.6

Morrisons 232 -3.9 8.6

Aldi 200 16.7 7.4

Lidl 151 14.9 5.6

Co-op 139 11.3 5.2

Waitrose 113 2.5 4.2

M&S 109 -6.4 4.1

Iceland 60 -5.5 2.2

Retail Biscuit PerformanceKey facts

The Euro Discounters (Aldi and Lidl) and Co-op saw the fastest growth in biscuits over the course of 2019.

The Grocery Multiples again saw decline, driven by Asda and Morrisons, whilst Grocery Convenience saw +7% growth driven largely by Co-op.

M&S had a difficult year, as they struggled to reach 2018 sales levels, especially during the Christmas period.

Biscuits channels value £m%

Change%

Share

Multiples 1464 -0.8 54.3

Euro Discounters 351 16.0 13.0

Grocery Convenience 231 6.9 8.6

UK Discounters 337 3.2 12.5

Online 200 6.0 7.4

Biscuits channels volume Kgm%

Change%

Share

Multiples 311 -0.7 50.6

Euro Discounters 111 10.9 18.0

Grocery Convenience 49 7.9 8.0

UK Discounters 78 0.8 12.6

Online 43 6.5 7.0

Annual Biscuit Review 2019 212020 Annual Biscuit Review 2019 21

Sweet BiscuitsKey facts

Healthier Biscuits remained the largest sector within Sweet Biscuits, but growth slowed from +4.5% last year to +1.3% this year.

Shoppers have switched to more ‘indulgent’’ type products in 2019.

2019 saw the classic biscuit sectors of Everyday Treats, Chocolate Biscuit Bars and Everyday Biscuits return to growth after seeing declines in 2018.

Chocolate Biscuit Bars and Everyday Biscuits were the fastest growing sectors in 2019, driven by KitKat and McVitie’s Digestives.

The McVitie’s brand led the market, with almost 13% share, whilst also seeing very strong growth at +3.7%, driven by core brands such as Chocolate Digestives and Jaffa Cakes.

Top Sweet Biscuits products £m

% Change

% Share

KitKat 88 5.7 3.3

McVitie’s Chocolate Digestive 64 5.1 2.4


Belvita Breakfast 41 -10.3 1.5






Belvita Breakfast Soft Baked 27 5.2 1.0

Top Sweet Biscuits manufacturers £m

% Change

% Share

pladis 532 0.9 19.7


Nestlé 122 1.6 4.5

Burton’s 116 0.6 4.3

Fox’s 98 -0.8 3.6

Kellogg’s 64 -7.8 2.4




Nairn’s 36 10.0 1.3

Top Sweet Biscuits sectors £m

% Change

% Share

Total market 2,194 2.0 -

Healthier Biscuits 569 1.3 21.1

Everyday Treats 425 0.6 15.8

Chocolate Biscuit Bars 390 6.6 14.5

Everyday Biscuits 328 3.7 12.2

Special Treats 199 1.7 7.4

Christmas 161 -5.5 6.0

Novelty 122 4.0 4.5

Sector performance

£2.2bn +2.0% (+1.0% in 2018)

Private label Sweet Biscuits manufacturers £m

% Change

% Share

Tesco 173 2.9 6.4

Aldi 171 10.2 6.3

Lidl 118 8.4 4.4

M&S 108 -6.8 4.0


Asda 77 1.8 2.9

Morrisons 55 3.8 2.0

Co-op 33 24.0 1.2


Top Sweet Biscuits brands £m

% Change

% Share

McVitie’s 343 3.7 12.7

Fox’s 94 -0.3 3.5

KitKat 88 5.7 3.3

Belvita 83 -0.3 3.1

Kellogg’s 62 -10.0 2.3



Burton’s 48 3.7 1.8

38% of the time consumers fancy something to eat in front of the TV, they go for a core snack food product.

It’s not all just snacking: half of all core snack foods are eaten as part of a meal and this is growing.


Top Savoury Biscuits products £m

%Change

% Share

Ryvita Crispbread 27 -7.0 5.3

Jacob’s Cream Crackers 21 4.7 4.2

Quaker Snack a Jacks Jumbo 16 11.9 3.1

Ritz Cracker Biscuits 13 29.7 2.7

Jacob’s Cheddars 11 -7.6 2.2

Jacob’s Selection 10 -12.9 2.0

Ryvita Thins 9 19.8 1.9

Jacob’s Tuc Biscuits 9 -8.8 1.8

Ryvita Crackerbread 9 -3.0 1.8

Nairn’s Oatcakes 9 2.3 1.8

30%

Top Savoury Biscuits manufacturers £m

% Change

% Share

pladis 112 -4.8 22.4


Nairn’s 20 2.6 4.0

Kallo 18 11.3 3.7


Quaker Oats 16 11.3 3.2

Other Manufacturers 14 8.6 2.7

Burton’s 7 55.8 1.3

Dr Schär 4 2.2 0.8

Rakusen’s 3 -7.3 0.6

Top Savoury Biscuits brands £m

% Change

% Share

Jacob’s 72 -3.9 14.3

Ryvita 50 -3.4 9.9

Nairn’s 20 2.6 4.0

Tuc 19 -7.0 3.7

Ritz 17 17.7 3.4

Quaker 16 11.3 3.2

Kallo 12 10.5 2.5

Jacob’s Cheddars 11 -7.6 2.2

Carr’s 10 -5.5 1.9

Kallo Organic 6 17.4 1.2

Just under a third of Savoury Biscuits are eaten at the weekend.

Crackers and Crispbreads account for over half (51.4%) of all biscuits eaten alongside alcohol!

Top Savoury Biscuits sectors £m

% Change

% Share

Total market 501 4.8 -

Ricecakes 94 9.5 18.7

Crispbreads 91 -2.6 18.1

Savoury Snacks 65 4.2 12.9

Other Crackers 41 14.4 8.3

Cream Crackers 41 6.4 8.1

Cracker Assortment 35 -1.3 7.0

Pastries, Twists and Bites 34 4.1 6.8

Oatcakes 26 3.2 5.2

Breadsticks 25 11.9 4.9

Brown Crackers 17 10.6 3.4

Savoury Biscuits are most likely to be chosen for ‘fancied a change’, accounting for 14% of convenient servings.

Sector performance

£501m +4.8% (+2.0% in 2018)

Private label Savoury Biscuits manufacturers £m

% Change

% Share

Tesco 44 9.7 8.7

Aldi 34 10.5 6.9


Lidl 23 6.0 4.5

Asda 19 3.3 3.9

M&S 17 15.5 3.3



Savoury BiscuitsKey facts

Savoury Biscuits saw growth more than double, from +2% last year to +4.8% in 2019.

Ricecakes moved to be the largest sector in the category due to growth of almost +10%, whilst Crispbreads had a tough year.

Ricecakes growth was driven by brands such as Kallo and Snack-a-Jacks.

It is also worth noting the strong performance from Ritz Crackers +17.7% in 2019, as they bounced back from a poor 2018.


Sweet Everyday BiscuitsKey facts

Everyday Biscuits saw strong growth in 2019 of +3.7%.

pladis played a huge role in this performance, with a 29% market share, and delivered growth of +7.1%. This was driven by a combination of growth from core brands like Digestives and Hobnobs, as well as NPD, with the new Digestive Twists launching in 2019.

This sector also saw positive sales growth from almost all private label ranges.

Private label Everyday Biscuits manufacturers £m

% Change

% Share

Tesco 42 7.2 12.7

Aldi 28 4.4 8.7

Asda 23 4.8 6.9


Lidl 19 3.9 6.0


Co-op 7 22.9 2.2

Waitrose 4 -7.9 1.3

M&S 4 24.9 1.3

Top Everyday Biscuits brands £m

% Change

% Share

McVitie’s 85 7.7 26.0

Lotus 22 24.0 6.8

Maryland 15 -13.5 4.7

Hill 7 -15.4 2.3

Crawford’s 5 -1.4 1.5

Hovis 3 8.5 1.0

Jutrzenka 2 33.8 0.5

Simmers 2 -3.7 0.5

Lyons 2 -45.7 0.5

Merba 1 -0.2 0.4

McVitie’s Digestives is the biggest biscuit brand for snacking, present on 3.6% of all biscuit occasions.

Top Everyday Biscuits manufacturers £m

% Change

% Share

Total market 328 3.7 12.2

pladis 94 7.1 28.8

Lotus 22 24.0 6.8

Burton’s 18 -18.0 5.4

Hill 7 -15.4 2.3

Everyday Biscuits are most likely to be eaten as a snack between meals, accounting for 67% of occasions.

Sector performance

£328m +3.7% (-1.2% in 2018) 12.2% share

Private label Everyday Biscuits products £m

% Change

% Share

Tesco Jam/Cream Biscuits 13 19.5 4.0

Asda Jam/Cream Biscuits 7 129.3 2.0

Aldi Sweet Biscuits 6 33.0 1.9

Aldi Jam/Cream Biscuits 6 2.4 1.7

Morrisons Jam/Cream Biscuits 6 10.1 1.7

Tesco Sweet Biscuits 5 63.9 1.5

Tesco Shortcake Biscuits 5 -2.7 1.4

Lidl Sweet Biscuits 5 14.5 1.4

Sainsbury’s Jam/Cream Biscuits 4 20.0 1.2

Tesco Rich Tea 4 10.3 1.1

Top Everyday Biscuits products £m

% Change

% Share


Lotus Caramelised Biscuits 22 24.0 6.8

McVitie’s Rich Tea 22 -0.1 6.8

Maryland Cookies 14 2.3 4.4

McVitie’s Ginger Nuts 7 -10.0 2.1

McVitie’s Hobnobs 7 10.0 2.0

Hovis Digestives 3 8.5 1.0

McVitie’s Digestives Twists 3 ++ 0.9

Hill Jam/Cream Biscuits 3 -21.4 0.9

McVitie’s Family Circle 3 195.5 0.8


Sweet Everyday TreatsKey facts

Everyday Treats moved from -2.1% in 2018 to positive growth of +0.6% in 2019.

McVitie’s +2.8%, drove this growth with sales of over £150m. McVitie’s core brands of Chocolate Digestives, Jaffa Cakes and Chocolate Hobnobs were the driver of this return to growth for both them and the sector.

Oreo’s struggles continued, down almost -20% in 2019 after -25% in 2018.

Private label Everyday Treats manufacturers £m

% Change

% Share

Lidl 26 5.2 6.0

Aldi 25 7.1 5.9

Tesco 25 -5.4 5.9

M&S 17 -9.3 4.1

Asda 14 7.0 3.3


Morrisons 7 2.3 1.5

Waitrose 6 1.4 1.4

Co-op 3 -8.9 0.7

Everyday Treats are most likely to be eaten in front of the TV, accounting for 17% of occasions.

Top Everyday Treats brands £m

% Change

% Share

McVitie’s 151 2.5 35.5

Fox’s 22 13.0 5.2

Oreo 22 -19.3 5.1


Other Brands 10 27.5 2.3

Paterson’s 9 7.3 2.2

Nature Valley 7 10.0 1.7

Cadbury 6 -32.7 1.4

Maryland 6 -11.1 1.3

Kraft 5 1.3 1.1

McVitie’s Chocolate Digestives are most likely to be ‘asked for by partner or kids’ as an afternoon snack.

Top Everyday Treats manufacturers £m

% Change

% Share


pladis 151 2.8 35.6

Mondelēz 33 -18.1 7.8

Burton’s 26 2.4 6.1

Fox’s 22 13.0 5.2




Lees 5 -0.5 1.3

Hellema 2 -13.8 0.4

Jacob’s Fruitfield 1 -20.0 0.3

Just under a third of Everyday Treats occasions are eaten as an evening snack.

Sector performance

£426m +0.6% (-2.1% in 2018) 15.8% share

Private label Everyday Treats products £m

% Change

% Share

Aldi Chocolate Digestives 8 -2.3 1.9

Lidl Cookies 5 10.1 1.2

Lidl Chocolate Digestives 5 11.8 1.1

Tesco Cookies 5 -22.6 1.1

Aldi Chocolate Biscuits 5 39.2 1.1

M&S Teacakes 4 -15.3 1.0

M&S Jaffa Cakes 4 -28.6 0.8

Ms Molly’s Chocolate Digestives 3 37.9 0.8

Lidl Jam/Cream Biscuits 3 -1.9 0.8

Asda Chocolate Digestives 3 12.4 0.8

Top Everyday Treats products £m

% Change

% Share

McVitie’s Chocolate Digestives 63 4.2 14.8


Tunnock’s Teacakes 16 1.8 3.9

McVitie’s Chocolate Hobnobs 16 18.6 3.9

Oreo Cookie Cream 12 -18.4 2.7

Fox’s Crunch Creams 11 4.0 2.5

Paterson’s Shortbread 9 7.3 2.2

Fox’s Jam/Cream Biscuits 6 1.4 1.4

McVitie’s Caramels 5 -27.3 1.3

Nature Valley Nut Butter sandwich 5 -17.7 1.2

31%


Sweet Special TreatsKey facts

Special Treats continued to grow year on year, +1.7% compared to +1.6% in 2018.

Fox’s continued to lead the market in terms of size, however performance dropped off, with the brand seeing -6% decline after a strong 2018.

Border biscuits was one of the few brands to do well in this sector, with growth of +9.7%.

In terms of private label, the standout performance had to be from the Co-op with their Irresistible range helping them to deliver +40% sales growth in 2019.

Private label Special Treats manufacturers £m

% Change

% Share

M&S 19 0.4 9.7

Aldi 11 -12.2 5.5

Tesco 9 -1.9 4.6

Lidl 9 24.3 4.3

Co-op 8 42.9 4.1


Morrisons 5 9.0 2.5

Waitrose 3 -4.1 1.4

Asda 3 -13.9 1.3

Private label Special Treats products £m

% Change

% Share

M&S Cookies 11 -9.5 5.3

Aldi Cookies 4 -21.7 2.2

Co-op TI Cookies 4 32.3 1.9

Co-op IR Cookies 4 57.7 1.8

M&S Extremely Biscuit 3 18.6 1.5

Morrisons TB Cookies 3 -3.4 1.3

Aldi SS Cookies 3 -4.2 1.3

Tesco Assorted Biscuits 2 -32.8 1.2

Sainsbury’s TTD Cookies 2 17.6 1.2

M&S Shortcake H/Ctd 2 19.8 1.1

Special Treats are most likely to be eaten alongside a premium coffee, making up 6% of all biscuits occasions.

Top Special Treats brands £m

% Change

% Share

Fox’s 39 -5.9 19.3

Cadbury 25 -5.8 12.3

Bahlsen 20 -2.7 10.2

Border 16 9.7 7.9

Nabisco 5 97.5 2.5

McVitie’s 3 28.2 1.5

Thorntons 3 -14.4 1.4

Galaxy 2 41.2 1.0

Elizabeth Shaw 1 36.3 0.7

Regal 1 20.0 0.7

Top Special Treats products £m

% Change

% Share

Cadbury Fingers 18 -2.7 9.2

Bahlsen Chocolate Leibniz 16 -0.1 8.2

Fox’s Fabulously Selection 14 -16.3 6.9

Fox’s Chunkie Cookies 9 6.8 4.7

Fox’s Viennese Sandwich 6 -7.4 3.2

Border Chocolate Ginger 6 23.4 3.1

Fox’s Chocolate Biscuits 5 -18.4 2.6

Oreo Cookie Cream 5 97.5 2.5

Cadbury Roundie Wafer 5 -18.7 2.5

Border Assorted Biscuits 3 18.3 1.6

Top Special Treats manufacturers £m

% Change

% Share


Fox’s Biscuits Ltd 39 -5.9 19.3


Bahlsen 20 -2.7 10.2

Border 16 9.7 7.9

Burton’s 4 2.2 1.9

pladis 4 48.9 1.8

Thorntons 3 -14.4 1.4


Elizabeth Shaw 1 36.3 0.7

Regal 1 20.0 0.7

People are most likely to eat Special Treats as a ‘treat’, accounting for 5% of all biscuits occasions.

Sector performance

£199m +1.7% (+1.6% in 2018) 7.4% share


Sweet Novelty TreatsKey facts

Novelty Biscuits were +4% on 2018, driven mainly by Fox’s and Mondelēz.

Although small, private label saw good growth in the sector, especially Aldi and Tesco.

Burton’s was the leading brand in the market, and saw +7.3% growth, while McVitie’s in second place saw +8% growth.

Private label Novelty Biscuit manufacturers £m

% Change

% Share

Lidl 4 -0.6 3.6

Aldi 4 25.3 3.5

Tesco 2 54.4 1.9

Top Novelty Biscuit brands £m

% Change

% Share

Burton’s 21 7.3 17.7

McVitie’s 14 8.0 11.5

Barny 13 7.2 10.4

Fox’s 13 5.1 10.4

Maryland 9 -7.1 7.3

Cadbury Children 7 11.6 5.9

Cadbury 6 -1.0 4.8

Caxton 5 26.8 4.3

Kinder 3 1.5 2.8

Rivington 3 14.8 2.7

49% of Novelty Biscuits are eaten when three or more people are present, creating great sharing moments.

Top Novelty Biscuit manufacturers £m

% Change

% Share

Market total 122 4.0 4.5

Burton’s 32 0.2 26.2


pladis 14 -4.5 11.9

Fox’s 13 5.1 10.4

Ferrero 5 -6.5 4.4

OP Chocolate 5 26.8 4.3

Northumbrian Fine Foods 3 14.8 2.7

KP Snacks 2 -5.3 1.5

D2 International 1 67.0 0.5

Hill 0 6.8 0.4

56% of Novelty Biscuits are cheekily munched by adults!56%

Sector performance

£122m +4.0% (+1.8% in 2018) 4.5% share

Top Novelty Biscuit products £m

% Change

% Share

Mondelēz Barny 13 7.2 10.4

Burton’s Jammie Dodgers 12 14.3 10.1

Maryland Mini Cookies 9 -7.1 7.3

Cadbury Mini Animals 6 14.6 5.0

Cadbury Finger Mini Pks 6 4.7 4.8

Fox’s Mini Party Rings 5 1.8 4.5

Burton’s Jammie Ddgrs Mini 5 12.4 4.3

Fox’s Party Rings 5 -11.5 4.2

McVitie’s Iced Gems 5 6.0 4.0

Kinder Happy Hippo 3 1.5 2.8

Private label Novelty Biscuit products £m

% Change

% Share

Aldi Chocolate Animals 3 4.6 2.3

Tesco Jam/Cream Biscuits 2 38.6 1.6

Lidl Shortcake 1 13.7 0.9

Lidl Mini Sweet Biscuits 1 -19.6 0.8

Lidl Chocolate Animals 1 -17.2 0.7


Chocolate Biscuit BarsKey facts

Chocolate Biscuit Bars returned to growth after a flat performance in 2018, mainly driven by Mars, pladis and private label.

The brand leader, KitKat, had a very strong 2019 with growth of +5.7%, taking its market share to over 22%.

Also, Aldi private label ranges did well, delivering almost 20% growth on 2018.

However, the standout performance was from Mars’ Twix brand with +30.3% growth.

Private label Chocolate Biscuit Bars manufacturers £m

% Change

% Share

Aldi 30 19.8 7.7

Lidl 14 3.9 3.6

Tesco 7 -31.4 1.9


Asda 4 22.0 1.0

Morrisons 3 7.2 0.8

Top Chocolate Biscuit Bars brands £m

% Change

% Share

KitKat 88 5.7 22.6

McVitie’s 45 3.3 11.5


Twix 29 30.3 7.5

Burton’s 24 5.0 6.2

Penguin 22 12.7 5.8

Blue Riband 18 0.1 4.7

Fox’s 16 12.5 4.2

Nestlé Rowntree 8 11.1 2.0

Chocolate Biscuit Bars are most likely to be eaten alongside a sandwich, making 21% of occasions.

Private label Chocolate Biscuit Bars products £m

% Change

% Share

Lidl Wafers 9 6.7 2.2

Aldi Chocolate Wafers 8 ++ 1.9

Aldi Wacko Tuck Crunch Bar 6 18.2 1.5

Aldi Uncoated Countlines 6 8.5 1.4

Lidl Biscuits Bars 5 -0.4 1.4

Aldi Chocolate Wafer 5 14.1 1.2

Top Chocolate Biscuit Bars manufacturers £m

% Change

% Share


Nestlé 122 1.6 31.2

pladis 67 6.3 17.2


Mars 29 30.5 7.5

Burton’s 25 9.3 6.4

Fox’s 20 7.0 5.1


Bahlsen 8 5.9 2.0

Storck 2 -11.1 0.5

Chocolate Biscuit Bars are most likely to be packed as part of a lunchbox, making 15% of occasions.

Sector performance

£390m +6.6% (-0.3% in 2018) 14.5% share

Top Chocolate Biscuit Bars products £m

% Change

% Share

KitKat 88 5.7 22.6



Twix 26 15.6 6.6

McVitie’s Penguin 21 5.9 5.4

Blue Riband 18 0.1 4.7

Burton’s Wagon Wheels 18 5.4 4.7

McVitie’s Gold Bar 16 4.2 4.2

Fox’s Rocky 14 13.5 3.5

Breakaway 8 0.9 1.9

Annual Biscuit Review 2019 353434 35Annual Biscuit Review 2019

Sweet Christmas BiscuitsKey facts

It was a tough year for Christmas Biscuits, -5.5% mainly driven by poor retailer private label performance.

M&S was the largest retailer in this sector, and saw a -20% decline on last year.

From a branded point of view, McVitie’s led the category, posting growth of +0.5% thanks to Victoria’s strong performance.

Private label Christmas Biscuits manufacturers £m

% Change

% Share

M&S 45 -19.5 28.1

Tesco 12 -3.5 7.7

Aldi 7 8.1 4.5

Lidl 7 22.7 4.1


Waitrose 6 31.7 3.7

Asda 4 -18.1 2.7

Co-op 4 25.7 2.6


Christmas Biscuits are most likely to be chosen as a treat, with 50% of servings offering a little bit of indulgence.

50%

Top Christmas Biscuits manufacturers £m

% Change

% Share

Total market 161 -5.5 6.0

pladis 34 0.5 21.4

Mondelēz 10 -0.8 6.3

Burton’s 5 -24.1 2.9

Fox’s 4 -3.3 2.3

Highland 3 68.2 1.7

Walkers Shortbread 1 -17.6 0.8

Thorntons 1 8.5 0.6

Henry Lambertz 1 45.1 0.5

H&W Dean 1 -17.4 0.4

Border 1 -27.8 0.4

Sector performance

£161m -5.5% (+1.3% in 2018) 6.0% share

Top Christmas Biscuits brands £m

% Change

% Share

McVitie’s 34 1.0 21.4

Cadbury 7 -12.0 4.6

Fox’s 4 -3.3 2.3

Other Brands 3 -4.2 2.0

Paterson’s 3 -22.2 1.9

Highland 3 68.2 1.7

Christmas Biscuits are the most likely category to be eaten when guests are present, making up a generous 4.7% of occasions.

Top Christmas Biscuits products £m

% Change

% Share

McVitie’s Victoria Assortment 15 3.7 9.2

McVitie’s Family Circle 13 -5.0 8.2

Other Brands 3 -3.3 1.9

Paterson’s Shortbread 3 -22.6 1.8

Cadbury Fingers 3 -0.8 1.7


Highland Shortbread 3 68.2 1.7

Oreo Cookie Cream 2 44.4 1.5

Private label Christmas Biscuits products £m

% Change

% Share

M&S Extremely Biscuit 18 10.8 11.0

M&S Shortbread 12 -15.0 7.7

M&S Assorted Biscuits 9 -50.9 5.8

Tesco Shortbread Biscuits 4 -12.5 2.4

Co-op LBU Shortbread 3 12.6 2.0

Tesco Assorted Biscuits 3 5.9 1.8

Aldi Shortbread 2 39.5 1.5

Waitrose Shortbread 2 40.2 1.5

Sainsbury’s Shortbread 2 18.9 1.3

Lidl Assorted Biscuits 2 33.9 1.3


Sweet Healthier BiscuitsKey facts

Healthier Biscuits saw growth slow to just +1.3% in 2019, as a result of the larger brands seeing performance stall.

The top four brands all saw sales decline, with Kellogg’s and Nature Valley both struggling.

Cadbury Brunch Bar and Nakd Bars were the only major brands to do well.

Private label had another strong year, with both Aldi and Tesco ranges seeing double digit growth.

Private label Healthier Biscuits manufacturers £m

% Change

% Share

Tesco 31 9.9 5.5

Aldi 30 19.2 5.3

Lidl 17 17.7 2.9

Asda 10 -6.1 1.7


M&S 4 41.1 0.7


Co-op 2 50.5 0.3

Waitrose 1 -7.8 0.1

Private label Healthier Biscuits products £m

% Change

% Share

Tesco Cereal Bar 15 66.9 2.6

Aldi Chewy Cereal Bar 13 30.8 2.3

Aldi Light Benefit Cereal Bars 7 28.5 1.3

Deluxe Chewy Cereal Bars 4 101.0 0.7

Asda Chewy Cereal Bar 4 50.0 0.6

Aldi Yoghurt Fruit Selection 3 31.5 0.6

Lidl Cereal Bar 3 -16.0 0.6

Lidl Breakfast Biscuits 3 -3.5 0.5

Ms Molly’s Cereal Bars 3 494.2 0.5

Tesco Fruit Bakes 3 13.8 0.5

63% of Healthier Biscuits are nibbled before lunch, with people more likely to eat healthily alongside herbal tea.

63%

Top Healthier Biscuits manufacturers £m

% Change

% Share


Mondelēz 120 3.5 21.1

Kellogg’s 64 -7.8 11.2


pladis 54 -7.6 9.5

Weetabix 33 -11.3 5.8

Natural Balance 24 5.6 4.2

Eat Natural 16 6.3 2.9

Nairn’s 15 21.5 2.7

Ferrero 10 -14.1 1.7


Healthier Biscuits are the most likely to be eaten ‘on the move’, with 19% of servings being munched out and about.

Sector performance

£569m+1.3% (+4.5% in 2018) 21.1% share

Top Healthier Biscuits brands £m

% Change

% Share

Belvita 83 -0.3 14.5

Kellogg’s 62 -10.0 10.9


go ahead! 44 -7.4 7.7

Cadbury Brunch 37 12.9 6.6

Alpen 33 -11.3 5.8

Nakd 24 5.6 4.2

Eat Natural 16 6.3 2.9

Nairn’s 15 21.5 2.7

McVitie’s 10 -8.5 1.8

Sweet Healthier Biscuits are most likely to be chosen for health, accounting for 25% of occasions.

Top Healthier Biscuits products £m

% Change

% Share

Belvita Breakfast Biscuits 41 -10.3 7.2



Belvita Soft Baked Breakfast 27 5.2 4.7

Nature Valley Crunchy Granola Bar 26 0.5 4.6

go ahead! Crispy Slices 19 -6.3 3.3

Nakd Cereal Bar 19 12.9 3.3

Kellogg’s Rice Krispies Squares 18 2.6 3.2

go ahead! Yogurt Breaks 13 -9.1 2.3

Nature Valley Protein Chewy Bars 11 -16.7 2.0


Sources:P1

P2

P3

P4

P7

P8

P9

P14-15

P17

P18-39

Kantar Worldpanel - 52 we 29th Dec 2019

Kantar Worldpanel 2019

Kantar Added Value Research - pladis 6Ws 2016Shopper Intelligence Sweet Biscuits 2019Nielsen Euromonitor 2008-2009GlobalData Per Capita Consumption 2019Kantar Usage Panel - 52 we 8th Oct 18

Kantar Worldpanel & Usage panel 2019AC Nielsen 2019IGD Retail Analysis 2019

IGD Retail Analysis 2019Kantar Worldpanel - 52 we 29th Dec 2019

Kantar Worldpanel - 52 we 29th Dec 2019

KWP link study - Oct 2017Mintel Report CSS&N UK - Jan 2018Mintel Report Consumer Snacking UK - May 2019Mintel Report Consumer Snacking UK - May 2018SCB Report pladis Future of Retail 2017Kantar Added Value pladis - 6Ws study 2016Kantar Worldpanel Total Grocery - 52 we 30th Dec 2018KWP Usage - we 30 Dec 2018Lightspeed Mintel 2019

Kantar Worldpanel Promotion Study 2018Him CTP 2019

IRI Info Scan - 52 we November 2019

Kantar Worldpanel - 52 we 29th Dec 2019KWP Usage panel - 52 we 29th Dec 2019

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For all category enquiries please contact: David CostelloHead of Category & Shopper Insights pladis UK & [email protected]

For all media enquiries please contact:Charlotte CosgroveGlobal Communications [email protected]

@pladis_Global

pladis Global

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