Warburtons is set to shake up the bagged snacks sector with one of the most unexpected launches of recent years, The Grocer can exclusively reveal.
Britain's biggest bread brand is introducing ChippidyDooDaa pitta chips and SnackaDoodle wholegrain snacks to retailers on 15 March aiming for a slice of the £2.2bn bagged snacks market, which has grown 5.5% over the past year [Nielsen 52w/e 6 January 2010]. It has invested £2m in equipment to make the lines and is launching a £1m media push this summer.
The twice-baked pitta crisps will be available in four flavours (rsp: 64p per 40g pack and £1.79 per 150g sharing bag) such as Chilli Jack and Sea Salt & Malt Vinegar and with 60% less fat than a standard crisp are billed as healthier than crisps and tortilla chips.
SnackaDoodle (rsp: 53p per 20g pack and £2.20 per six-pack multipack) comprises Cheddar Cheese & Onion and Sweet Chilli and contains 70% wholegrain. The extension beyond bakery would intrigue consumers, said Warburtons chairman Jonathan Warburton. He claimed the venture would benefit from the strong brand loyalty that its 134-year heritage enjoys and recognised the bagged snacks category as one of the few food and drink sectors to remain resilient in the recession.
The snacks business will be headed by new business director Jason Uttley. Despite the humorous, child-friendly packaging, Uttley said the snacks would target adults, and health credentials were "a secondary USP to taste".
"The important point is that our taste trials have shown that consumers connected the pitta and wholegrain content with Warburtons and are close to our heartland," he said. "Consumers get it. The construction of the chip is Warburtons' core competency baking so we are using our skills base."
He denied that the move into snacks was a means to rejuvenate sales in Warburtons' core £582m business, which were flat last year [Nielsen]. "Warburtons remains committed to growing the bakery market and we have seen recent new launches in muffins, Tiger loaves and a new £10m TV campaign. The snacks team will work separately to the bakery but will inevitably take learnings from them."
Kate Waddell MD consumer brands at Dragon Rouge, described the snacking marketplace as a "critically tricky one to get right" and questioned whether the bread brand had made the right move.
"Outside the low cal/fat, healthy snacking is treacherous, especially as consumers move more to a 'little of what I like doesn't harm' or a 'checks and balances' approach to eating," she said. "Arguably Hovis has more permission to move in as it has savoury cracker and biscuit baking 'crunchy' credentials."
ChippidyDooDaa and SnackaDoodle will be pitted against very established brands in impressive sales growth. Kettle Chips have grown 5.4% to £78m and Tyrrells have soared 12% to £14m over the past year. Hard on its heels, Walkers' Red Sky potato chips have hit £12m in just 12 months.
Read more
Warburtons seeks a slice of credibility in bagged snacks (20 February 2010)
Editor's Comment: Warburtons entry into bagged snacks is bizarre - and I like it (20 February 2010)
Britain's biggest bread brand is introducing ChippidyDooDaa pitta chips and SnackaDoodle wholegrain snacks to retailers on 15 March aiming for a slice of the £2.2bn bagged snacks market, which has grown 5.5% over the past year [Nielsen 52w/e 6 January 2010]. It has invested £2m in equipment to make the lines and is launching a £1m media push this summer.
The twice-baked pitta crisps will be available in four flavours (rsp: 64p per 40g pack and £1.79 per 150g sharing bag) such as Chilli Jack and Sea Salt & Malt Vinegar and with 60% less fat than a standard crisp are billed as healthier than crisps and tortilla chips.
SnackaDoodle (rsp: 53p per 20g pack and £2.20 per six-pack multipack) comprises Cheddar Cheese & Onion and Sweet Chilli and contains 70% wholegrain. The extension beyond bakery would intrigue consumers, said Warburtons chairman Jonathan Warburton. He claimed the venture would benefit from the strong brand loyalty that its 134-year heritage enjoys and recognised the bagged snacks category as one of the few food and drink sectors to remain resilient in the recession.
The snacks business will be headed by new business director Jason Uttley. Despite the humorous, child-friendly packaging, Uttley said the snacks would target adults, and health credentials were "a secondary USP to taste".
"The important point is that our taste trials have shown that consumers connected the pitta and wholegrain content with Warburtons and are close to our heartland," he said. "Consumers get it. The construction of the chip is Warburtons' core competency baking so we are using our skills base."
He denied that the move into snacks was a means to rejuvenate sales in Warburtons' core £582m business, which were flat last year [Nielsen]. "Warburtons remains committed to growing the bakery market and we have seen recent new launches in muffins, Tiger loaves and a new £10m TV campaign. The snacks team will work separately to the bakery but will inevitably take learnings from them."
Kate Waddell MD consumer brands at Dragon Rouge, described the snacking marketplace as a "critically tricky one to get right" and questioned whether the bread brand had made the right move.
"Outside the low cal/fat, healthy snacking is treacherous, especially as consumers move more to a 'little of what I like doesn't harm' or a 'checks and balances' approach to eating," she said. "Arguably Hovis has more permission to move in as it has savoury cracker and biscuit baking 'crunchy' credentials."
ChippidyDooDaa and SnackaDoodle will be pitted against very established brands in impressive sales growth. Kettle Chips have grown 5.4% to £78m and Tyrrells have soared 12% to £14m over the past year. Hard on its heels, Walkers' Red Sky potato chips have hit £12m in just 12 months.
Read more
Warburtons seeks a slice of credibility in 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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