It's in the bag

Offering the right bar snacks can help grow businesses, but which ones will encourage customers to snack and drink more on your premises? John Porter reports.

No more nannying" is the message from incoming Health Minister Andrew Lansley, who has told the nation that it's perfectly all right to enjoy a bag of crisps as part of a well balanced diet. Just how much of a sales boost that will be for pubs and bars is fairly questionable, since there's little evidence to suggest that the average pub goer has been holding back. Snacks, mainly in the form of crisps and nuts, are big business for pubs.

In fact, Walkers cheese and onion crisps are not simply the biggest selling snack line in pubs, as confirmed by Nielsen figures, but are the biggest branded food line bought by the on trade overall. Even so, making the most of the opportunities to boost incremental sales of snacks is something pubs need to keep on top of.

Nick Stuart, commercial manager at UBUK, owner of brands such as McCoys and KP, says: "Snacking is an area that many bar owners struggle to maximise. Stocking snack lines that provide big margins but aren't necessarily popular, not getting their display right, and not communicating their snack offering properly, are just some areas that are routinely mismanaged.

"However all these things can be put right relatively easily. While getting a snack range right might not be the answer to the decrease in footfall in Britain's pubs, it is still an important category in any establishment, and has the potential to generate significant incremental sales if put right."

Health, while not the biggest driver of consumer behaviour in pubs, is still an increasingly important issue, says Stuart. At the beginning of 2010, UBUK further reduced the saturated fat content of McCoy's by 30%, while keeping the same taste. The packaging has been revamped and the nutritional improvement is highlighted on the packs to increase purchase motivation.

Also in line with the healthier trend, UBUK's KP peanut range has had a redesign that emphasises its quality credentials. The pack now highlights clear nutritional claims including low GI, high in fibre and MSG free.

Stuart says convenience is another important consideration, "with single serve potato crisps a firm favourite for consumers socialising out of home in a pub or bar", and pubs should provide a mix of old favourites and new products that are going to grab customers' attentions.

Pleasure is the final consideration, he adds, with consumers continuing to demand more exotic tastes and flavours. Meeting this growing trend was behind UB's relaunch of the Phileas Fogg range, which includes authentic flavours sourced worldwide.

The drive for flavour innovation has also seen Kettle Chips launch three flavours this year – sweet chilli, smoky barbecue and sour cream and onion. Kettle chef Chris Barnard says: "We go to great lengths to make the best tasting crisp in the market and are uncompromising in using quality ingredients. We never use flavour enhancers such as aspartame or MSG; we simply use real potato slices which are hand cooked in sunflower oil, before adding our authentic seasonings."

Also seeing growing demand for premium lines is Glennans, which supplies vegetable crisps in large tubs such as beetroot, parsnip and sweet potato. Not only are the flavours unusual, but the colours add a visual appeal.

Walkers' owner Pepisco responded to growing sales of such premium brands last year with the launch of Red Sky, a crisp range made with natural ingredients.

However, the leading brands are the biggest driver of sales for pubs, and Walkers advises publicans to capitalise on the crisps, snacks and nuts opportunity by applying three key category principles. These are:

• Stock the right range – Use the space available to stock best selling lines to maximise sales and increase profits. Crisps and snacks need to be seen so should ideally be positioned above the bar and within 6ft of the till point, as this is generally a high footfall area. The most popular formats for in-pub consumption are grab bags.

• Keep up with customer trends – Value has become increasingly important to consumers recently, with almost 60% actively looking to buy products on promotion. This may be a simple price reduction, multi buy – buy two packets get one free or a link deal such as buy a pint and get a bag for free.

• Make the most of secondary display opportunities – Point of sale is a proven mechanic in supporting sales. Beer mats, bar runners, wobblers, posters or bunting can all be supplied free of charge.

Hoping that growing retail sales of fair-trade products can be replicated in pubs, nut supplier Liberation Foods teamed with comedian Harry Hill to develop the Harry's Nuts! range, which launched in 2009.

To promote the range, October 22 has been declared Britain's fi rst National Nut Day. Pubs and restaurants will be asked to include at least one 'nutty' meal on their menus for the day. Liberation Foods managing director Kate Gaskell says: "We are approaching like minded organisations and high profile nut lovers to work with us to make sure the message is heard loud and clear for the good of British nut eaters and nut farmers across Africa, India and Latin America."

As an alternative to the classic bagged snack, Jack Link's beef jerky and beef steak bites aim to drive extra snacking opportunities. The brand is the world's largest ready to eat meat snacking brand, and the company believes the range provides a major new profit stream for licensees. "Meat snacks offer high unit sales value and high cash margin," says Michael Ollerup, Jack Link's European managing director. "With the selection of clip strips, the range is perfect for behind the bar and will offer standout among other popular snacks."

Also focusing on the pub market is Cranberry Enterprise, best known for its kiosks selling fruit, nuts and other products at railway station sites. From its 140 different lines, the brand has selected six of its best selling products, from mixed berries to spicy smoked almonds, and packed them in 40g and 50g snack packs.

Director of sales Trevor Stroud says: "The new range offers something different from the standard fare of crisps and salted peanuts ubiquitously found in every pub and we think they will catch the imagination of both the trade and their customers."

Words John Porter

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