Jonathan Hunt talks to Martyn Fisher on what Kellogg’s is doing to boost product awareness
BW: How has Kellogg’s helped wholesalers grow sales in the past 12 months?
JH: Our Merlin promotion across our top-selling brands has boosted cereal sales. Consumers were offered an ‘adults go free’ voucher on-pack, enabling them to spend family time together at top attractions such as Alton Towers and the London Eye. Equally, the Olympic sponsorship across our cereal bar and Pringles range has driven growth. The promotion gave consumers the chance to win tickets to Rio backed by a through-the-line promotional campaign.
What is the greatest challenge you currently face?
Educating and driving compliance across independent retailers; whether it be promotional, the right range to stock, or location within store. With many different suppliers and wholesalers all relaying different messages to already busy retailers, getting your message to stick is becoming increasingly difficult.
What’s Kellogg’s greatest achievement this past year?
The growth of Pringles 40g is a fantastic development for us, as it is now in the top 10 singles snacks brands. It’s also the fastest growing single in the top 10, growing at 36.4%. This is testament to the success of KelloggVille, last year’s van sales drive, which saw us call on 25,000 independent retailers twice over a six-month period, driving distribution.
What trends and opportunities are emerging in wholesale for the cereals and snacks categories?
Health is a key trend, but not at the expense of taste. As consumers’ lives become busier, having an on the go or out of home solution is ever more important. With that in mind, our cereal in a pot range is popular with the on-the-go market, and we’ve just launched 69p PMPs.
What advice would you give wholesalers looking to grow sales in the cereal and snacks categories?
Stock best sellers – seven of the top 10 cereal brands in independents are Kellogg’s, and the top five single cereal snacks in symbols and independents are all Kellogg’s. Stock PMPs to give reassurance to shoppers, and stock the big brands that shoppers are looking for. Place similar products together on fixture, and double-face bestsellers. Shoppers navigate the fixture looking for ‘signpost brands’ – ones they immediately recognise, which catch the eye. Ensuring these are highly visible will help drive sales and conversion at fixture. And place the category near other morning goods, like bread, eggs and spreads. Consider putting additional cereal signage at your milk fixture to remind shoppers of your cereal range. Not only is milk a high footfall area, but a large proportion of milk is consumed with cereal, so they’re natural basket partners.
Are you planning any activity that wholesalers should be aware of?
We’re about to expand the Coco Pops brand with new brownie-style bakes, called Choco Bakes. They adhere to Ofcom’s strict nutrition guidelines for healthy foods, meaning they meet the high standards required to advertise to children. As such, Kellogg’s is backing the launch of Choco Bakes with a £1.5m marketing spend, including TV and print advertising targeting mums. Also look out for our new PMPs on Crunchy Nut Granola and Ancient Legends. The muesli and granola segment is an area where convenience underindexes vs the multiples. By bringing a trusted brand in Kellogg’s to the segment, we can drive further value and sales for convenience retailers. These new products join our more recent launches of Crunchy Nut Porridge and Coco Porridge, recently launched in a price marked pack.