Category advice: grow your sugar confectionery sales

The sugar confectionery category isn’t one that stands still, although there are firm favourites that retailers agree will always generate sales. Customer purchasing behaviour has also shifted, with HFSS legislation having indirect impacts on retailers and shoppers alike. However, the cost-of-living crisis appears to have had little impact on the way people think about treating themselves, with more than two-fifths of UK consumers saying sweets are a low-cost way to boost their mood, according to Mintel 2023.

Yogesh Darji, from Baddesly Store & Post Office in Atherstone, Warwickshire, finds that what sells well doesn’t change. “Haribo is the most popular,” he says. “We have them in £1.25 price-marked packs (PMPs).” He also says anything new on his shelves will fly off them, and there is no shortage of product launches in the category.

New trends

Some new launches are following recent trends, such as a desire for new flavours or reduced sugar. “Research shows that 19% of adults are interested in products with different flavour options, and, as a result, retailers should look to stock a wide choice,” says Elizabeth Hughes-Gapper, Jakemans senior brand manager.

Clare Newton, trade marketing manager at Swizzels, adds: “With the rise of plant-based diets, there has been a growing demand for plant-based and vegan confectionery options. Innovation within the vegan sugar confectionery category is a strong driver to entice consumers to try vegan products and ensure repeat custom.”

Stock something new

Sugar confectionery is generally a playful category lending itself well to new and wacky product launches. Retailers looking to carve out a point of difference for their offering need to be at the cutting edge of the market to find out what’s trending, and then they need to source the appropriate products for their stores. This can either be new flavour launches from established brands or some of the bigger viral trends that sweep social media.

“Research shows younger audiences are more experimental and seek innovative flavours,” says Sarah du Plessis, brand manager of Mentos. “Mixed-fruit flavours dominate the ‘hard chews sweets’ category, with recent research proving there is a burgeoning appetite for exotic flavours.”

As an example, Swizzels is set to launch Mallows countlines in April and Strawberry & Cream Squashies in May, so it’s important to keep on top of what’s on the horizon and stock up accordingly.

New sugar confectionery launches

• Mentos Discovery offers a category-first 14 different flavour sweets in one roll. The 14 flavours include passion fruit, lychee, blueberry, blackcurrant, lime, strawberry, raspberry, orange, lemon, watermelon, banana, grape, cherry and pineapple.
• Fruitella Strawberry sharing bag ““The new sharing-bag format is ideal for making quality time with friends and family even sweeter,” says Lauren Potter, senior brand manager at Fruittella.
• Hancocks has introduced new pick ‘n’ mix lines to its Kingsway range of confectionery. Additions include Kingsway Pint Pots, non-alcoholic sweets with a beer flavour, and Cherry Scandi Fish. Giant Cola Bottles, Heart Throbs, Fizzy Rings and Filled Whale are also set to be launched.
• World of Sweets is adding to its kids novelty range. Launches for this year include products from Crazy Candy Factory, Warheads, Buildable Surprise, Pez, Sweet Bandit and Kidsmania.

US Confectionery growing opportunity

Perhaps the biggest headline-stealer when it comes to novelty and new products within sugar confectionery is the huge growth of global confectionery, especially from the US. Minesh Keshwala has only been at Spar Ash Close in Barlborough, Derbyshire, for a few weeks, but has already made sure to introduce a one metre bay of US candy, something his local competitors aren’t offering.

“It’s selling well and we’re getting more than 30% margins on it,” he says. “We get it through American Assets, but we’ve got another contact in Sheffield we’re in talks with as well because they’ve got a bigger range in. We used to have an end bay dedicated to US sweets, but we’ve moved it because it’s harder to get hold of stock these days. The MrBeast confectionery is still selling well simply because of the brand around the person who owns it.”

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If you can’t get hold of certain products from your existing wholesalers, then it’s worth shopping around because these can be huge footfall drivers if you can keep the range up to date and fresh.

“You’ve got to get that newest range in because people like to try different things,” says Keshwala.“They won’t keep buying the same stuff. We’re looking into introducing US drinks and crisps now off the success of the confectionery.”

Ranging and merchandising

Most retailers agree that the till is the best place to drive impulse sales of confectionery, with its high visibility and ease of purchase. It is also important to put sugar confectionery in other places around the store, including gondola ends, near sandwiches for meal-deal inspiration and a dedicated section of shelving.

“New products should be visible from the moment a customer enters the store, whether it’s the items themselves or signage pointing to where they are on display,” says Chris Smith, partner brand manager at World of Sweets. “This will help instantly guide them to where they can browse and eventually purchase.”

This will allow retailers to expand and diversify the range further, give it some grounding in people’s minds and help to build a reputation for confectionery. A dedicated US confectionery section or a pick ’n’ mix area can both provide a point of difference for a store.

Read more advice for independent convenience retailers

“The Haribo bags – including Starmix and Tangfastics – sell well, along with Maoam and Mentos,” says Keshwala. “They’re mostly on hooks with other bagged sweets. We have sweet bays at the promotional ends of aisles, but those are mainly cheaper, Spar-branded products.”

Where they are placed will often be determined by the pack formats and price, with larger, value options better secured in aisles and smaller, more affordable, on-the-go options located wherever the footfall is highest. As it doesn’t melt like chocolate, sugar confectionery should be the category retailers focus on as we move into spring and summer.

“Demand for convenient, on-the-go sweets will increase as the weather warms and consumers look to venture outdoors, providing an opportunity for retailers to maximise sales,” says Jakemans’ Hughes-Gapper.

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