The convenience sector is best placed to own this change

As suppliers and retailers, we have to embrace the change and recognise that the consumer shift towards healthier options is seismic and definitely here to stay. It is now more important than ever to allocate more space for ‘better for you’ categories such as protein bars, energy-based brands and Water+ beverages.

Ideally situated in both the healthy eating and confectionery categories, protein bars such as Fulfil are often found dual-sited in stores, sitting alongside classic confectionery brands, as well as healthy eating bays.

Those of us who are brave and take risks will be able to enjoy profitable growth from creating more space for ‘better for you’ and continuing to fill the void created by the sharp decline in sales of traditional confectionery and cola brands.

The convenience sector is currently seeing a ‘glass half full’ moment and is better placed to own this in-store shift than the grocery sector. Convenience Buyers can lead this change, as they have the autonomy to make decisions and buy produce for all categories, unlike an individual buyer for a grocer, who is often only responsible for one area.

New trends – eco to indulgence

At Red Star we are continually identifying emerging trends through our market insight and trend analysis.

• Seltzer water – unsweetened flavoured water – is having a moment and there is a huge amount of growth within this sub-category. Although the rates of sale are slow, there is clearly a trend for it, striking a sweet spot because of its lack of calories and unnecessary sugars
• Environmental packaging is fighting its way forward and we’re particularly looking forward to seeing a new water brand hitting the shelves later this year, in fully recyclable, non-see-through packaging, which will ignite huge change within the category.
• Water+, with protein and added functionality, will continue to grow as it’s driving 39%* of the growth in the booming Water category, commanding higher price points, outperforming Water and increasing its share of the market.
• Although there will always be uber-healthy consumers whose primary concerns are health, at the other end of the health spectrum there are those shoppers who are health conscious Monday to Friday but look forward to an indulgent treat at the weekend.
• At Red Star we believe it is crucial to provide brands that are scalable, having an appeal for the majority of consumers in the middle – those we might call “healthy activists” – who are prepared to make some effort to be healthier. We don’t just want to cater for the extremes at either end of the spectrum.

Protein is here to stay, whether in muffins, cakes or ice cream

One particular trend is a plethora of added protein, whether it is found in standard bars, or premium indulgent snacks such as ice cream.

Fulfil uniquely combines vitamins and protein, containing 100% of an adult’s recommended daily allowance of nine vitamins. The brand is targeting the health-conscious, on-the-go consumer, who is looking for low sugar, low calorie snacks without sacrificing taste, and with the benefit of 20g of protein and a full multi-vitamin.

Historically eaten by body builders and gym bunnies, protein has always been shunned by female shoppers but two thirds of Fulfil’s consumers are female ‘treat abstainers’. It is important that manufacturers now educate people on how much protein they should consume and the benefits.

Innovation rules

At Red Star Brands, we truly believe ‘better for you’ and ‘great taste’ can co-exist. We believe that genuine innovation, has allowed for the paradigm to be shifted once and for all. The days of having to choose between ‘unhealthy and tasty’ versus ‘healthy and bland’ are behind us – there is an exciting new future, and it’s packed with goodness, functionality and flavour.

To speak with our team of experts about the latest industry trends, please get in touch: https://www.redstarbrands.co.uk/contact/.

* Source IRI Marketplace Data to 25 Feb 18.

“The sugar tax is not a ‘catch all’ answer to better health, nor is it a way to educate consumers – however, it has pushed the industry to begin embracing products that challenge the status quo and show that sugar does not equal flavour. Under the new proposed tax bracket, some soft drinks can still contain up to 24g of sugar in one 500ml serving, and face no levy; so, it is crucial for retailers to embrace innovation and health when stocking their shelves in order to progress.

“In the wake of the tax, many traditional soft drinks manufacturers have reformulated, but the real industry challenge is renovation versus innovation. We have been monitoring the market and have seen that soft drinks with a focus on ‘better for you’ are outselling traditional categories such as Cola, Carbonates and RTD Juice Drinks. Consumers are voting with their feet and retailers need to use their chiller space wisely.

Red Star brands has a number of ‘better for you’ brands in its portfolio including Bai and Sparkling Ice, both of which pioneer low sugar and maximum flavour.

According to Clark retailers need to follow an ‘EASY’ approach, in order to succeed in a post sugar tax market.

“EMBRACE THE CHANGE – Data captured at the end of January 2018 showed 1.31 billion units of Water sold against a declining 1.26 billion units of Cola* – adding an additional £61 million to the Soft Drinks category in the last 52 weeks. Water + is driving 44% of this growth, commanding higher price points, outperforming Water and increasing its share of the market. It is clear that sugar tax or not, consumers’ consumption has changed and the sector needs to keep up with this demand.

“ALLOCATE MORE SPACE FOR ‘BETTER FOR YOU’ BRANDS – Instead of sticking to traditional sugar laden soft drinks and ultimately passing on the levy to consumers, retailers should open their shelves to low and no-sugar brands and make the brave decisions about what they stock on their shelves. If retailers can’t increase shelf space they’re going to have to take something away, regardless of whether or not it’s a heritage brand that ‘has always been there’. The world has changed and it’s time for us to embrace the future.

“SIGNPOST THE CATEGORY – block the better-for-you brands together, make it easy for shoppers to find the healthier choices. Many people are looking for a functional ‘better for you’ option but are unsure of where it sits in the chiller, make it clear and signpost in store.

“YIELD – Finally, the retailers that are brave and take risks will be able to enjoy profitable growth from creating more room in their chillers for ‘better for you’. The growth of this category, including Water and Water+ isn’t going anywhere, so retailers need to adapt to keep ahead of the curve.

To speak with our team of experts about the latest industry trends, please get in touch: https://www.redstarbrands.co.uk/contact/. To hear more from Clark, attend the ‘Putting health on the shelf’ panel this month’s National Convenience Show: 16 April 13:45pm – 14:15pm.

*according to IRI Marketplace Data on 28 January 2018