Christmas, when done well, can be the most lucrative period of the year for retailers. Consumer spending habits change significantly when it comes to the festive season, with a 20% and 38% increase on spending on food and alcohol respectively in December 2021 compared to a typical month (Bank of England).
With consumer spending in December 2020 and 2021 eclipsing pre-pandemic levels (ONS) – and with Christmas this year set to be the first free of restrictions for three years – we can expect it to be a prime opportunity for the whole retail industry.
Adding sparkle to festive proceedings, Prosecco is a known big seller around Christmas.
Last year, sparkling wine sales grew 22% with Brits spending £15.5m on fizz during the festive season (Kantar).
This should come as no surprise to retailers – pre-pandemic one in every four bottles of Prosecco in the UK Off-Trade was sold during the eight-week run up to Christmas (Nielsen).
“As consumers look to make their celebrations stand out, retailers should encourage their customers to mark the occasion with premium sparkling drinks,” comments Sandra Brunet, Marketing Director, Campari Group UK. “This should not be limited to the traditional Prosecco or Champagne offerings, with retailers offering guidance on how to elevate sparkling wines into sophisticated serves – such as adding Aperol, Campari, or other flavoured liqueurs – to help increase in-store spend.”
The Aperol Spritz is the perfect way to encourage consumers to enjoy Prosecco in an alternative way – combining three parts of Prosecco with two parts of Aperol, one part of soda water, and a slice of orange for garnish, to create a simple but iconic serve. This classic ‘build-in-the-glass’ cocktail adds a touch of elegance and sophistication to any festive celebration. It also presents a great opportunity for retailers to help shoppers premiumise their Prosecco moment this Christmas by enjoying the best-selling branded cocktail in the UK (CGA). Retailers can add further value by encouraging their customers to tap into the popularity of cocktails at home – a trend that has risen in prominence in recent years, especially during the COVID-19 lockdowns.
“Retailers should look to leverage this growing trend towards cocktails to drive in-store spend during the festive season, by extending their product offerings in preparation for the spike in Christmas shopping, such as the Aperol Spritz Gift Pack,” adds Brunet.
In fact, 60% of consumers said they gifted spirits in the last year, and 71% of those occasions were over the Christmas period (Campari), presenting a lucrative opportunity for retailers to encourage customers to stock up on gift packs to ensure they capitalise on the occasion.
“With 63% of shoppers looking for ideas and inspiration to make Christmas feel more special, retailers should consider eye-catching and impactful festive displays for core product lines,” says Brunet. “For example, a Prosecco display in-store can be given a festive refresh by incorporating complementary products to elevate the Christmas Prosecco experience. By positioning Prosecco alongside Aperol and soda water, retailers can create a one-stop shop for a premium at-home cocktail, appealing to consumers looking to enhance their festive season and increasing basket spend. For example, offering retailers an Aperol Spritz Gift Pack, with the key ingredients available for a set price, invites them to opt for a more convenient package rather than individual product lines.”
Josh Corrigan, Senior National Account Manager at St Pierre Groupe, comments on behalf of the St Pierre brand: “We have developed a raft of recipes to inspire people to recreate festive favourites, elevated by brioche. Those recipes gain traction with our audience, helping to drive sales via in-store communications and consumer-facing PR and advertising, and as a result we’ve helped to establish brioche on the Christmas menus of millions.
“Whilst our Brioche Burger Buns are brilliant with burgers, there’s a whole host of amazing dishes you can use them for and by changing the name on-pack, simply to ‘Brioche Buns’ we’re helping consumers to embrace new ideas.”
St Pierre is also launching seasonal NPD with Mini Brioche Buns. Driven by the trend in foodservice for sharing platters, the product offers something slightly different to help grow festive basket spend. The trend for premiumisation is still driving sales across the category and savvy retailers will ensure that in categories – like bakery – they are offering easy upgrades for shoppers. Consumers will always look for ways to improve the meals they’re making at home and that’s especially true at Christmas, with guests to impress.
St Pierre is growing at 80 per cent vs last year and is established as the 5th biggest brand in bakery. The brand’s marketing efforts will be upweighted through the festive season to ensure brand awareness continues to drive sales at a key time of year.
A Red Bull spokesperson comments: “Red Bull is the no. 1 brand in total Sports & Energy, growing by £68.7m vs YA and maintaining the second largest absolute gain on any other Sports & Energy brand (Nielsen). Red Bull’s dominance within the category is down to the increased consumer demand for a functional boost since the start of the pandemic. Shoppers state that they desire more physical energy than ever since lockdowns have ended (Kantar), but they also want more from their purchase than ever before, seeking a balance between enjoyment and practicality as well as for health (Kantar).”
The Sports & Energy category has seen a steep upward trajectory in growth over the last year, now worth over £1.7bn and totalling more than £276.4m vs 2021 (Nielsen). This growth has been fuelled by the increased demand for Functional Energy amongst shoppers, making this category a must-stock for those looking to maximise their seasonal festive sales. These drinks have added over £197.7m in value vs YA and have exceeded the billion-pound mark, today worth over £1.2bn annually (Nielsen).
In total Sports & Energy, larger formats have driven over £217.6m in value to the category, seeing significant growth of +13.8% vs YA (Nielsen). Penetration of these formats is now +54.7% vs YA (Kantar), and over 35% of all larger-can drinkers enjoy Red Bull on the go (Kantar).
“It is therefore vital to stock these larger variants so that consumers can enjoy a longer-lasting functional boost out and about during the warm summer months,” adds the spokesperson.
Red Bull Energy Drink 250ml 4pk is the no.1 best-selling multipack in the Sports & Energy category (Nielsen). With a variety of flavour and pack sizes to meet consumer needs, Red Bull multipacks make the perfect functional option for shoppers to enjoy on-the-go no matter their individual need state.
Understanding the formats that consumers want most has always been a top priority for Red Bull. Red Bull Energy Drink 250ml is not only Red Bull’s most familiar and best-selling SKU but it’s also the single most valuable soft drink in the UK. Red Bull Energy Drink 250ml alone is worth over £160m to the Total Sports & Energy category (Nielsen), delivering 10% of all Sports & Energy drink sales in the UK (Nielsen).
Craig Chapman, Head of Brands at Amber Beverage UK, comments: “As we enter the colder, wintery months in the run-up to Christmas, we expect to see seasonal flavour profiles increase in demand over the festive period. Here at Puerto de Indias, we champion the flavoured spirit.”
This October, Puerto de Indias is launching a brand-new Blackberry flavour to the UK market, which makes for the perfect wintry tipple thanks to its fruity blackberry notes and hints of violet caramel.
“By expanding their gin range to include even more flavours, particularly those with a wintery feel, retailers can appeal to even more tastes and take their offerings to the next level,” adds Chapman. “The gin category can cater for every season and I’d highly encourage retailers to take advantage of the vast array of flavours that are on the market, in order to really experiment and maximise sales during the Christmas season.”
“With the cost of living crisis meaning that consumers are increasingly looking at their wallets and how they can stretch their disposable income, they will be looking for ways they can get the most value from their gin choices this Christmas season,” says Chapman. “Whilst this may mean that consumers are seeking affordable alternatives to their favourite brands, we strongly believe that consumers still want an authentic experience, and to drink premium, well-made drinks in the comfort of their own home.”
At an RRP of £26.99, Puerto de Indias gin is the perfect way for consumers to enjoy more affordable gatherings and celebrations, without compromising on flavour, quality or, indeed, experience.
Volumes in the flavoured spirits category are forecast to increase by 2.3% CAGR in the UK from 2021 to 2025. This comes directly from that increased consumer demand for unique and inspiring flavours to the traditional drink offerings.
Puerto de Indias recently conducted some research and found that strawberry has been voted as the UK’s absolute favourite gin flavour, with more than 1 in 5 consumers (21.9%) saying they’d pick it over any other flavour. What’s more, strawberry-flavoured gin is especially popular with the younger demographic, with over half (54.5%) of 18-24-year-olds rating it as their favourite flavour.
Made with real strawberries and packed with intense flavours, Puerto de Indias also capitalises on the consumers’ preference for non-artificial flavours, with the natural food flavours market projected to succeed at a CAGR of 5% during 2022 – 2029.
Amy Burgess, Senior Trade Communications Manager at Coca-Cola Europacific Partners (CCEP), comments: “Christmas is the biggest moment in the calendar for retailers and shoppers alike (Nielsen), as families and friends get together and celebrate with delicious food and drink at home.
“It’s more important than ever for retailers to ensure they invest in their soft drinks offering to cater for Christmas celebrations at home. Colas, mixers and adult soft drinks can all help to bring a sense of sparkle to a festive occasion, so stores should ensure they’re well stocked with a wide range of sharing formats across established brands such as Schweppes, Appletiser, and Coca-Cola.”
Coca-Cola is the biggest soft drinks brand in GB (Nielsen) and it has become a festive staple thanks to its iconic Christmas campaigns and of course the famous Coca-Cola truck, making it a must-stock for retailers.
Adult soft drinks such as Appletiser, which is growing in value by 35.8% in convenience (Nielsen), can also be a popular choice for consumers looking to enjoy more sophisticated soft drink on social occasions.
And mixers like Schweppes – the number one mixers brand in convenience (Nielsen) – will be popular with those looking to enjoy a festive cocktail or mixed drink.
Although promotional HFSS regulations have been delayed for a year, restrictions on location and displays will still be coming into effect this October, ahead of the festive period.
“While this will of course present some challenges, there is a clear opportunity here for categories like soft drinks as almost three-quarters (73%) of soft drinks value sales come from HFSS compliant products. At CCEP 86% of our portfolio will be HFSS exempt come October,” adds Burgess.
“That figure puts soft drinks in a strong position relative to other HFSS categories like chocolate, sweets and crisps. And it means soft drinks have a key role to play at the heart of themed front of store displays or aisle ends, creating in-store theatre and helping to drive sales.”
Emily Owen Celebrations and Gifting Senior Brand Manager at Mars Wrigley, comments: “Christmas is traditionally a period of increased expenditure for consumers, with 62% globally saying they spend more on products and services around the Christmas period compared to average monthly spend throughout the year (YouGov). Despite this, as the cost of living continues to increase consumers are looking for ways to cut back on spending and affordable treats will become even more important to consumers looking to celebrate the festive season.”
Gifting remains the biggest shopper ritual of the festive period. Consumers will be looking for value for their favourite brands gifting but not be willing to compromise on quality to achieve this. Mars Wrigley’s Christmas gifting portfolio includes consumer favourite brands at a variety of price points to cater for all shopper missions.
Maltesers’ boxed range brings 1.2M unique households into the everyday boxed category (Nielsen), and is the second largest everyday boxed brand at Christmas.
Mars Wrigley also has a premium gifting range, including Maltesers Truffles and Galaxy Truffles, giving an alternative gifting option for consumers. Maltesers Truffles had their strongest Christmas ever last year, growing by £1.2M (Nielsen). The range provides a more premium twist on consumer favourite brands.
“We know that selection boxes will remain a key product offering in 2022 to accommodate the gifting ritual, following the selection box category growing +15% in 2021 (Nielsen),” adds Owen. “Mars Wrigley offers a blockbuster collection filled with consumer favourite treats in a range of sizes and prices to cater for all. These include Galaxy Christmas Collection, Maltesers & Friends, Milkyway Universe and a Skittles & Friends fruity confectionery twist, all of which come in a sustainable carton and cardboard tray.”
The growing popularity of home baking has encouraged many consumers to get their bake on and prepare indulgent treats to share with family, friends and colleagues. As the biggest seasonal celebratory occasion, Christmas is the time to make home bakes extra special by incorporating additional treats, such as Maltesers and Maltesers Mini Reindeers. Stocking core bitesize formats, as well as singles, of the top-selling formats will be key for retailers to drive chocolate confectionery sales this festive season.
The mint flavour has been growing consistently YOY in all segments of confectionery but is growing fastest in traditional seasonal categories. Mars Wrigley will be bringing back the eagerly awaited Maltesers Mint Reindeer, an exciting flavour extension set to appeal to the growing consumer base demanding mint flavoured products. These will be available in the self-eat and Mini Reindeer packs to cater to the consumer growth trends of these formats.
In the spirit of celebrating together with friends and family, Celebrations is ‘bringing the whoop whoop’ like no other brand. When Celebrations tubs officially land in-store for the season, it signals to shoppers that Christmas is upon us. This year, Mars Wrigley is launching a phased rebrand across the complete range of Celebrations, modernizing the look and feel to excite consumers and recruit younger shoppers to the twist wrap category.
Mars Wrigley is bringing back the sought after Maltesers White Truffles this Christmas. With white flavoured chocolate growing 73% in popularity this year (Nielsen), this limited-edition SKU will be positioned to drive younger shoppers to the category, boosting retail sales, alongside wider category growth.
Alongside Maltesers White Truffles, Mars Wrigley will also be adding to its Galaxy Truffles range, with the new Galaxy Truffles Assortment, featuring smooth chocolate, and the new caramel and salted caramel truffles. Salted caramel voted as the 6th most popular flavour in chocolate (Nielsen), this indulgent premium product is set to provide consumers with a delicious treat to gift to loved ones this festive season.
Chocolate has consistently been the most purchased gift at Christmas (Deloitte) which is testament to its wide appeal and popularity as an indulgent treat. Christmas shapes were shown to grow by 5.5% in 2021, with 12% of UK households purchasing them (Nielsen). This year Mars Wrigley has responded to this consumer demand and will be shaking up the category with the exciting launch of M&M’s Santa. These magical chocolate hollow shaped M&M’s characters filled with mini shakeable M&M’s are expected to excite and engage consumers, bringing the fun of M&M’s to consumers this festive season.
Susan Nash, Trade Communications Manager at Mondelez International, comments: “Mondelez International is central to Christmas confectionery, leading the market with the #1 SKU in seven sub-categories – seasonal sharing, advent calendars, selection boxes and tree decorations, just to name a few (Nielsen). It’s clear that shoppers trust MDLZ to bring them the products they love come Christmas-time, with total seasonal sales growing over 6% last year (Nielsen). In seasonal biscuits, MDLZ also has a strong presence, growing over 3% (Nielsen) last year with top-performing products from Cadbury Biscuits and OREO.”
Cadbury’s range of sharing pouches such as Cadbury Dairy Milk Classics and Cadbury Roses are shopper favourites in the category, with the Cadbury Heroes pouch achieving the #1 SKU in Grocery (Nielsen). Cadbury Puds made a much-anticipated return last year, and were quickly a huge hit with shoppers becoming the season’s #1 NPD (Nielsen). Additionally, the Cadbury Mini Snow Balls bag was the nation’s #1 sharing novelty treat last Christmas (Nielsen).
White chocolate is increasingly popular among consumers. In response to this, Mondelez International is rolling out a raft of new Cadbury White products, including Cadbury White Jingly Bells, and a Cadbury White Hollow Santa will also join the range. This flavour is accompanied with a stand-out design of Santa wearing white, rather than his traditional red, to really capture shoppers’ attention.
Elsewhere, the advent category saw growth of +21% year on year (Nielsen), with 1 in 4 households using chocolate to count the days down (Nielsen). To cater to this, Mondelez International is launching the Cadbury Dairy Milk Advent Bar – a brand new challenge for chocolate lovers this Christmas. Cadbury Dairy Milk Chocolate will be sectioned into 25 individually-numbered chunks that can be broken off and enjoyed each day in the lead up to Christmas. This unique new bar will add a touch of magic to the advent countdown for consumers and is sure to be a talking point. Grocers can join in with the fun by encouraging their shoppers to take part in the ‘One Chunk A Day Challenge’.
The season starts as early as September, with shoppers beginning to cosy up inside due to the darker nights and colder weather. As a result, Grocers may see an increase in ‘Big Night In’ sharing occasions, which they can cater to with sharing packs, multipacks and block formats. Cadbury’s range of sharing pouches such as Cadbury Dairy Milk Classics and Cadbury Roses are shopper favourites in the category.
In October, the upcoming seasonal occasions are prevalent in shoppers’ minds, and many will be looking out for self-treat and sharing novelties. Mondelez International is bringing a brand new innovation to the market with the launch of Cadbury Mini Snow Balls 110g Bar, which sees the ultimate combination of the nation’s #1 sharing novelty treat (Nielsen) together with Cadbury’s iconic heartland bar format. OREO will be bringing a playful twist to Christmas with seasonally coloured cremes through the classic Original flavour. OREO Festive Colours are perfect for sharing, with three 114g roll packs which include red, green, and white coloured-creme options.
By November, the countdown to Christmas has truly begun. Shoppers will start to begin preparations for the festive season with the purchase of advent calendars and tree decorations. This year, Mondelez International is bringing consumers a Christmas challenge in the form of brand-new Cadbury Dairy Milk Advent Bar. This unique bar features 25 individually-numbered chunks of the nation’s favourite chocolate (Nielsen) to see shoppers through the lead up to Christmas, with an enticing, resealable wrap that is sure to stand out on shelf. Tapping into festive fun, this unique proposition will drive excitement in stores – the ‘One Chunk a Day Challenge’ is something everyone can take part in.
Finally, as we enter December and the big day approaches, Grocers can deliver real Christmas magic by stocking up on those larger gifting and sharing formats. This year, Mondelez International is rolling out a brand new treat for all to enjoy: the Cadbury Chunk Collection. The collection includes individually-wrapped chunks of various Cadbury chocolate, including Cadbury White, Cadbury Dairy Milk, and Cadbury Dairy Milk Wholenut. The Chunk Collection is available in a 243G Carton format, with an eye-catching design that is sure to stand out on shelf. The Cadbury Heroes Tin will also be available in an exciting new game edition that is sure to bring the entire family together: Who Am I? These gifting and sharing formats are essential to those festive moments, and are a fantastic opportunity to drive maximum sales from shoppers by providing the option to “trade up” their treats.
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