How Manufacturers will Deal with Confectionary Checkout Bans?

Published By : 03 Mar 2016 | Published By : QYRESEARCH

In an attempt to contribute towards reducing the sugar intake among consumers, leading retail stores are banning the sales of sweet biscuits and confectionary at their tills. In January 2014, Lidl, one of the global grocery retailers announced that it would remove confectionary items from all of its checkouts in the U.K. Other retailers such as Waitrose, Marks & Spencer, and Aldi have also taken similar steps. Though this would have a limited impact on the impulse buying of the confectionary items across independent grocery and convenience stores, chocolate companies need to diversify their products and include salty snacks to remain competitive.

Europe has stringent regulations against ‘unhealthy’ foods and snacks and it has been quite obvious for Lidl to stop the sales of confectionary items from its U.K. stores. However, the retail giants are removing confectionaries from checkouts across other regions as well. For example, Aldi recently revealed that confectionaries would be removed from the checkouts at its 1500 stores in the U.S.

Expanding Snack Portfolio is Important for Confectionary Manufacturers

Replacing confectionary items with snacks at checkouts is an important step for the confectionary manufacturers to maintain their visibility. According to the retailer, the replacement snacks can be of various forms. In the U.K., Tesco is fruit and nut mixes together with snacks and healthier biscuits such as Walkers/ Lay’s baked crisps and Belvita biscuits. TO replace countlines, Aldi USA is considering healthier impulse items such as dried fruits, granola bars, trail mixes, and nuts. 

In the U.S., the trend of protein-rich meat snacks is fast picking up. Confectionary manufacturers are also aligning their business strategies accordingly. For example, Hershey’s has acquired Krave meat snacks and General Mills has bought premium Epic meat and seed snack bars. The popularity of protein-rich snacks is catching up across the U.K. and Germany as well.

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