“People like a good deal”: Developing in the snack food industry
Russell Tanner, Marketing Director of Valeo Snackfoods, told New Food in our most recent interview that “people love a bargain.” There is a need for less expensive food products because of the rise in discount retail establishments in the UK and the ongoing cost of living crisis, but what exactly do British consumers want in their trollies?
Tanner claims that people are interested in trying “new and exciting” snack foods, particularly those that are reasonably priced and available in a variety of flavors.
The widespread appeal of crisps
In the UK, there are now 51 companies that produce snacks and potato chips. According to IBIS World, this figure represents a 1.6% rise from 2022, indicating that British consumers have an abundance of options when it comes to snacks.
Several well-known brands in the UK snack market are Walkers, KP Snacks, and Valeo Snackfoods; each offers a selection of flavors, pack sizes, and crisps.
Walkers sold 77 million kg of crisps in 2017, which was the highest volume sold in the industry, according to Statista. Coming second were supermarket own brand crisps, earning 20 million kg worth of sales.
But in 2010, after Origin Foods and Batchelors were acquired and combined, Valeo Snackfoods emerged as the new player in the snack food industry. Since then, according to the firm, “acquisition, integration, and a relentless focus on innovation in everything we do” have allowed it to produce yearly sales of more over €1.2 billion.
Organizing Seven Continents
The debut of “Seven Continents,” a travel-themed low-cost snack brand featuring flavor inspiration from Mexico, China, Thailand, and Britain, was announced by Valeo Snackfoods in November 2022.
Tanner said to New Food, “We are drawing inspiration from flavors throughout the world.”
Our goal is to introduce the most delectable snacks from various global cuisines to the UK market. A stroll along your neighborhood high street will demonstrate how much Brits like a variety of cuisines.
Tanner clarified that the goal of Seven Continents’ initial launch, which spans from China to Mexico, is to create snacks that feature a wide variety of flavors. In an effort to emphasize that the new brand is focused on affordability, Tanner described the products’ “price point.”
Saved by discount retailers
There are a lot of bargain stores in the UK right now, including B&M, Home Bargains, Poundland, and Wilko.
According to Britannica, a discount store is a retail establishment that offers goods at a price point that is lower .
“It’s a growing sector,” asserted Tanner, “so for me, it’s an important area for snacks because it’s gaining popularity and I think it’s going to increase and become more important”.
In fact, we think that customers who visit there are eager to test out novel and intriguing things. Right now, it’s just a really good fit.
Tanner provided an explanation, noting that while “food inflation” has been making headlines recently and that consumers are experiencing price increases everywhere, the truth is that consumers are becoming less reliant on name-brand supermarkets and more likely to shop around for the best deals.
“I believe that the trend of people “eating in, treating in” may resurface as food costs rise. In light of this, I believe that cheap stores offer a fantastic chance to go get some interesting meals so you can stay in instead of going out for the evening.
In an attempt to “save a few quid” and still provide Britons access to “really high quality, great value products,” Tanner seems thrilled with Seven Continents’ creative selection.
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Tanner told New Food that he intends to see a greater variety of snack products in the future, with Seven Continents aiming to “be a widely recognized brand in five years”.
“The range is currently very much in the savory snacking fixture, if you look at it. There are several directions we might take with this brand.
“In the future, I see Seven Continents as a brand that spans across multiple snack categories and formats. Right now, we have tortillas and different shapes of crisps.”
Tanner predicted that by giving customers a “much wider offering for UK shoppers in the high street discount channel,” they will be willing to try flavors that deviate from the more well-known options already widely available. Tanner hopes that British consumers will have a taste for international cuisines.