Kellogg’s is pleased with the performance of both its snacking and ready to eat cereal (RTEC) categories following the re-launch in May of its convenience business. The overhaul aimed at simplifying the range that was being offered to independents and provide advice for retailers on the best selling ranges to stock.
Frances Booth, category management customer marketing controller – convenience channel impulse snacking, says: “The new RTEC and snacks core range and price marked pack (PMP) initiatives have really helped deliver impressive sales growth for our wholesale and cash and carry partners, not to mention for our retailers.
“The PMPs on our RTEC range have helped drive confidence throughout the cash and carry/wholesale route to market and we know consumers find these packs particularly reassuring as they provide a competitive price point.”
She says the snacks promotional PMP launched in the third quarter of this year are also proving successful. They include: Special K Original Bar; Nutri-Grain Elevenses Raisin Bar; Crunchy Nut Nuts About Bar; Coco Pops Cereal Milk Bar; Nutri-Grain Totally Oaty Oat Baked Bar; Rice Krispies Squares Chewy Marshmallow Bar; and Rice Krispies Squares Chocolate Caramel Bar.
Booth adds: “Overall in 2007 we have tried to streamline our product ranges to ensure the wholesale and cash and carry sector can have the utmost confidence that Kellogg’s will always supply them with focused and on-trend ranges in the most streamlined way.”
A new bagged snack range, Special K Mini Breaks, was launched in September, and has received a very positive response from consumers. Booth says: “Both the cash and carry and wholesale sectors really supported this launch. In Bestway for example it executed a Platinum launch which saw really strong support in the depots as a result.
“We have also enjoyed a very strong performance in 2007 from the Rice Krispies Squares range. We were particularly pleased by the positive impact that the new Rice Krispies TV campaign had.”
In 2008 Kellogg’s plans to leverage retailer clubs to a greater degree again by providing dedicated event, range and merchandising plans by fascia to help them realise profitable sales. It also plans to harness the power of cash and carry sampling after seeing some positive sales trends as a result of this activity.
On the product side, the Nutri-Grain brand will be further extended in 2008 to include Nutri-Grain Oaties. This new product contains oats baked into a sweet, soft snack that satisfies consumer’s sweet cravings in a wholesome way. This will offer consumers a more indulgent snacking solution but with the reassurance of Nutri-Grain brand credentials.
Kellogg’s will also enter the fruit snacks market in 2008 with a new brand called FruitaBu – a range made entirely from fruit and fruit juice, which delivers one portion of fruit in each pack. It is also supported by the government’s 5 A Day logo which is featured on pack.
Booth says: “FruitaBu will help broaden the reach of on the go fruit snacking. This category is currently very small, but with a strong FruitaBu brand and significant category investment from Kellogg’s we can help shoppers to increase the amount of fruit they are eating.”
Booth adds: “Kellogg’s believes that the wholesale and cash and carry sectors are instrumental in growing the snack and RTEC category and we are always looking at ways to work more closely with them to drive a step change in shopper awareness and sales performance. We believe that by focusing on depth and breadth of the correct range we will help drive significant awareness of the category and its benefits to both retailers and shoppers alike.
Kellogg’s has identified three key groups – CTNs, forecourts and larger convenience stores – which it believes will be the key to future success and it is investing significantly against them. Booth says: “We have a dedicated category team, which is making great strides in helping retailers to unlock the significant potential of the snacks category via bespoke merchandising solutions and careful ongoing category management.”