Warburtons may be the second-biggest brand in the country but can it succeed in the “notoriously difficult” adult snacks market, asks Nick Hughes
It's a little known fact that about 30 years ago Warburtons, then a provincial bread manufacturer, launched its own brand of kettle-style crisps. The product lasted five years before it vanished "lost in the mists of time", in the words of current new business director Jason Uttley.
Now the country's second-biggest brand, Warburtons is returning to snacks this year, with its ChippidyDooDaa golden baked pitta chips and SnackaDoodle wholegrain snacks hitting shelves in March. So, second time around can they stay the course?
"On paper this makes perfect sense," says Kate Waddell, MD of consumer brands at Dragon Rouge. "I can see how all the different parts of Warburtons' skills and equity add up to a potentially powerful proposition in healthy snacking."
And there are some encouraging precedents in recent times for Warburtons' move to extend the brand beyond its roots. Innocent's first foray into food raised eyebrows when announced in 2008, but Tasty Veg Pots racked up £15m sales in their first year and continue to go from strength to strength.
But while the Warburtons brand is no less powerful than Innocent, there will be barriers to overcome if it is to establish itself as a serious contender in the ultra-competitve bagged snacks category.
"The snacking marketplace is a tricky one," says Waddell. "Adult snacking and healthy snacking are two opportunities but they are notoriously difficult to get right."
Uttley is keen to stress that the snacks neither of which are potato-based are targeted at adult crisp connoisseurs, and that taste, rather than health, is the most important factor. "The healthier credentials are a secondary selling point," he says. But Waddell worries that unless the snacks are "unfeasibly delicious" they could fall flat. "Savoury bagged snacks fall into three categories: family, where everyone needs to enjoy them and they have universal appeal; 'adult' for which you can usually read super-sophisticated; and 'doing a job' giving the consumer a low-guilt, low-calorie salty hit and making healthiness more palatable. I can only really see Warburtons hitting the latter with this offer."
If that's the case, Warburtons will have to convince consumers that it boasts health credentials to rival that of competitor brands. "We can't lose sight of the fact there are products like Ryvita Minis doing a job here," says Waddell.
Warburtons believes, in this regard, it has its bases covered. The ChippidyDooDaa range is baked, not fried, meaning it contains 60% less fat than standard crisps. SnackaDoodle, meanwhile, is made of 70% wholegrains with each single pack containing just 84 calories.
But can a bread brand really have "snacking credibility" as Waddell puts it? Yes, according to Uttley. "Buyers were very positive and enjoyed the product. They were always going to be a little bit surprised with us entering bagged snacks but people trust the brand and know its quality."
Quality is one thing but whether Warburtons can convince consumers to pay a premium price for its snacks is another entirely. As Burts Crisps MD Jonty White points out: "Warburtons is not a premium brand, it's mainstream." At 64p for a 40g pack of ChippidyDooDaa, the product is at the premium end.
Uttley says trial will be vital to establishing the products, yet a marketing spend of just £1m suggests a low-key launch. "A £1m spend is nothing compared with what Walkers and Phileas Fogg are investing," says White. But Uttley believes Warburtons has a key advantage over its rivals in distribution as it can deliver directly to c-stores through its bread van deliveries.
Warburtons is also a far bigger machine than it was 30 years ago. But with the likes of Walkers, Phileas Fogg and Kettle firmly entrenched in premium snacks, the bread maker will have to work hard to ensure its snacks don't perform a repeat vanishing act.
Read more
Warburtons muscles in on bagged snacks (20 February 2010)
Editor's Comment: Warburtons entry into bagged snacks is bizarre - and I like it (20 February 2010)
It's a little known fact that about 30 years ago Warburtons, then a provincial bread manufacturer, launched its own brand of kettle-style crisps. The product lasted five years before it vanished "lost in the mists of time", in the words of current new business director Jason Uttley.
Now the country's second-biggest brand, Warburtons is returning to snacks this year, with its ChippidyDooDaa golden baked pitta chips and SnackaDoodle wholegrain snacks hitting shelves in March. So, second time around can they stay the course?
"On paper this makes perfect sense," says Kate Waddell, MD of consumer brands at Dragon Rouge. "I can see how all the different parts of Warburtons' skills and equity add up to a potentially powerful proposition in healthy snacking."
And there are some encouraging precedents in recent times for Warburtons' move to extend the brand beyond its roots. Innocent's first foray into food raised eyebrows when announced in 2008, but Tasty Veg Pots racked up £15m sales in their first year and continue to go from strength to strength.
But while the Warburtons brand is no less powerful than Innocent, there will be barriers to overcome if it is to establish itself as a serious contender in the ultra-competitve bagged snacks category.
"The snacking marketplace is a tricky one," says Waddell. "Adult snacking and healthy snacking are two opportunities but they are notoriously difficult to get right."
Uttley is keen to stress that the snacks neither of which are potato-based are targeted at adult crisp connoisseurs, and that taste, rather than health, is the most important factor. "The healthier credentials are a secondary selling point," he says. But Waddell worries that unless the snacks are "unfeasibly delicious" they could fall flat. "Savoury bagged snacks fall into three categories: family, where everyone needs to enjoy them and they have universal appeal; 'adult' for which you can usually read super-sophisticated; and 'doing a job' giving the consumer a low-guilt, low-calorie salty hit and making healthiness more palatable. I can only really see Warburtons hitting the latter with this offer."
If that's the case, Warburtons will have to convince consumers that it boasts health credentials to rival that of competitor brands. "We can't lose sight of the fact there are products like Ryvita Minis doing a job here," says Waddell.
Warburtons believes, in this regard, it has its bases covered. The ChippidyDooDaa range is baked, not fried, meaning it contains 60% less fat than standard crisps. SnackaDoodle, meanwhile, is made of 70% wholegrains with each single pack containing just 84 calories.
But can a bread brand really have "snacking credibility" as Waddell puts it? Yes, according to Uttley. "Buyers were very positive and enjoyed the product. They were always going to be a little bit surprised with us entering bagged snacks but people trust the brand and know its quality."
Quality is one thing but whether Warburtons can convince consumers to pay a premium price for its snacks is another entirely. As Burts Crisps MD Jonty White points out: "Warburtons is not a premium brand, it's mainstream." At 64p for a 40g pack of ChippidyDooDaa, the product is at the premium end.
Uttley says trial will be vital to establishing the products, yet a marketing spend of just £1m suggests a low-key launch. "A £1m spend is nothing compared with what Walkers and Phileas Fogg are investing," says White. But Uttley believes Warburtons has a key advantage over its rivals in distribution as it can deliver directly to c-stores through its bread van deliveries.
Warburtons is also a far bigger machine than it was 30 years ago. But with the likes of Walkers, Phileas Fogg and Kettle firmly entrenched in premium snacks, the bread maker will have to work hard to ensure its snacks don't perform a repeat vanishing act.
Read more
Warburtons muscles in on bagged snacks (20 February 2010)
Editor's Comment: Warburtons entry into bagged snacks is bizarre - and I like it (20 February 2010)
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