If times are tough, then let them eat cake (and crisps as well)

Published on Monday 22 December 2008 21:02

THE truth is in the trolleys. At a time of economic uncertainty, shoppers will turn to the snacks that give them comfort.

Despite food price inflation and the effects of recession, some of Britain's best-known brands enjoyed rocketing sales this year.

The likes of Walkers crisps and Mr Kipling cakes proved popular at the checkouts, while healthier products with heftier price tags, such as ready-mixed fruit smoothies, fared less well.

The results come in an exhaustive survey by the Grocer magazine, which collated data from the scanners at tens of thousands of checkouts throughout the country.

Brand experts said the snapshot of the nation's shopping habits shows that brands offering "comfort and nostalgia" are thriving at a time when purse-strings are being drawn.

Walkers increased its sales by 9.7 per cent over 2008, selling some 458 million worth of crisps, making it the third-most valuable grocery brand in the UK. Doritos too, performed well, with sales increasing by 14.4 per cent to 87.9 million. As a whole, the bagged snacks category saw sales grow by 6.6 per cent, with sales of just over 2 billion.

Of the crisps sold, it seems consumers are harking back to flavours they remember from their childhood, such as the relaunched Monster Munch range.

Sally Davies, the crisps, snacks and nuts buyer for Sainsbury's, said: "We're seeing a trend back to retro flavours. The Walkers French Fries multipack has been the most impressive launch of the year– shifting more than 60 units per store per week since launch."

Cake sales have seen Cadbury Mini Rolls hold on to the top slot for a second year running, with sales of 38.2 million, but Mr Kipling products occupy 13 of the top 20 places. Such old-fashioned treats, experts believe, will prove even more appetising in the year ahead.

Sam Witherington, Waitrose's pre-packed cake buyer, said: "Slab cakes are a store cupboard purchase that customers will continue to buy, particularly in the currently climate, when they are closely scrutinising their food purchases."

Brands that did not perform so well included the upmarket beer Kronenbourg and Innocent fruit smoothies, which saw sales fall 17 per cent and 20 per cent, respectively.

The survey shows that as a nation, we prefer our beans to be Heinz, have Weetabix for breakfast, and spread our Warburtons bread with Lurpak butter.

When it comes to treats, the favourite chocolate is Cadbury Dairy Milk, Stella for lager, Coke for soft drinks and among the healthier snacks, Mller for yoghurt.

Despite the economic doom and gloom, most groceries have not only survived but also seen the value of their sales go up, and some have even prospered from bargain-hunting shoppers.

Out of 72 categories from sauces to soups to spirits, 56 have increased the value of sales, two have stayed the same and only 14 have gone down.

Some of that is because of price rises on the shelves, such as bread and other food products, as a result of an increase in the cost of raw materials such as grain or fuel hikes.

Claire Nuttall, director of the product consultants Dragon Brands, said: "Brands that offer some kind of comfort and nostalgia will thrive in a tough climate, as well as brands that have humour and a lightness of spirit.

"Housekeeping will also become more of an art form: making more of leftovers and using humbler cuts of meat. So, products that boost our culinary know-how or enhance foods without having to spend the earth are also likely to do well."

Adam Leyland, editor of the Grocer, added: "Our survey sees only three new number ones across 72 categories, a clear sign that while the financial world has been turned on its head, it's relatively stable in grocery.

"It shows 78 per cent of the categories are up in value, versus 20 per cent in decline. Though volumes have fallen 3 per cent on average, 47 per cent of the categories have seen volumes rise, from sports and energy drinks to cakes."

He added: "You can paint this market many colours but it's not all black."