Caterers and c-stores need access to a strong range of fresh and chilled produce to help them give their customers what they want. But with so much competition in the category, wholesalers need to be savvy about which products will make for the most profitable offer.
Fisher recommends that wholesalers focus on 250g and 500g packs of butters and spreads, and 200g and 350g cheese packs to meet consumer demand for top-up products, and to help them manage their cash outlay.
Worth more than £337m and used in a growing variety of meals, cheese is a major player in the chilled and fresh category, with cheddar dominating the market compared with other convenience cheeses.
Fisher notes that wholesalers should consider other trends when developing their range. An example she gives is that as more consumers seek quick meal solutions, they will look beyond traditional block cheese to convenient cheese products such as sliced, grated and spreadable, which are becoming increasingly popular.
The snacking cheese category incorporates processed cheese, spreads and slices, on-the-go cheese snacks, plus soft white cheese products such as Philadelphia.
Snacking is on the up overall, as lifestyles change and the traditional three meals a day are replaced by snacks and smaller meals. It is believed that around 21% of UK households are currently buying into the micro-snacking category, which has enjoyed 3.7% growth year on year; Kepak, home of the UK’s best-selling micro-snacking brand Rustlers, hopes to grow the UK’s £156.4m micro-snacking market by £50m over the next four years.
To help the trade make the most of the opportunity, Kepak is encouraging wholesalers to educate retailers on the micro-snacking category.
The butters, spreads and margarines market is worth around £140m in convenience, according to Partners for Growth.
James Brennan, Flora marketing manager at Unilever UK, notes that consumers shopping for such products are looking for items that taste great, but also work as part of a balanced diet.
“The Flora Freedom dairy-free variant is a delicious tasting spread that ensures that those who have an intolerance or an allergy, or simply want to choose free-from products, can enjoy a great tasting spread,” he advises.
Caroline Jary, brand building director for spreads at Unilever UK, says: “Baking continues to be a huge opportunity. In fact, the in-home baking market is set to grow to a substantial £1.9bn between 2014 and 2019, as 30% of consumers continue to bake from scratch at least once a week.
In addition to everyday items, the chiller is also home to treats, such as chocolate milk. The flavoured milk market is currently worth £293.9m, with chocolate milk still the category’s favourite flavour with a 31% share, followed by fruit flavoured milk at 24%, according to Michelle Frost, general manager for Mars Chocolate Drinks and Treats.
Capitalising on this growing trend, last year Mars Chocolate Drinks and Treats introduced to the category Mars High Protein and Snickers High Protein milk drinks, each containing 22g of protein, and Mars High Protein is currently showing a value sales growth of 57%.