Although household budgets are tight, shoppers are still picking up treats when they’re visiting their local convenience store. While some are cutting back on dining out, they are trading up when it comes to a sweet treat.
There is an opportunity for convenience stores to extend their range of premium lines to increase their sales and profits. In terms of growth, premium confectionery is expected to outperform the wider confectionery market every year until at least 2028.
Priyesh Vekaria, owner of One Stop Carlton in Manchester, says retailers need to understand and explore their demographic to drive premium confectionery sales.
“If you’re known for offering value and have become a destination for having strong promotions or price-marked packs, premium or specialty lines might not be the right route for you,” he says.
“But if you have a mixture or are known for having lesser-known lines in store, then it will absolutely be the right avenue.”
When is the time for premium products to thrive?
Sales of premium confectionery lines are always higher during key seasonal periods, such as Valentine’s Day, Christmas, and Father’s Day – which is on 15 June.
Thorntons, Lindt and Ferrero are the most-common premium brands retailers say are the must-stock lines for these periods, as well as Green & Black’s.
“These are the lines customers expect to pay more on, so they’ll save them for special occasions,” explains Sue Nithyanadan, owner of Costcutter Epsom in Surrey. “But also with these lines, health concerns go out the window, as do price sensitivities”.
For Father’s Day, children will often choose chocolate or other confectionery lines as gifts, but Nithyanadan says there’s an additional sales opportunity – encouraging adults to buy premium beers, wines or spirits for their dad.
“Special occasions and seasonal periods are one of the only times shoppers are willing to spend more, as it’s usually for someone special,” she adds.
Offering premium confectionery options at a value price
According to Vekaria, the opportunity for premium confectionery lines is prevalent, but it’s not an area being explored by brands and is therefore often overlooked in retail.
“A lot of premium lines end up in grocery and we don’t get the commercial investment with it,” he says. “But another challenge is that standard and premium confectionery are becoming similar from a price perspective.”
But Vekaria adds that shoppers understand they get better value with premium products.
“We offer Lindt bars at two-for-£1.50, same as our other standard bars, so immediately, we’ve taken the price barrier away,” he explains. “Customers just want a treat without breaking the bank.”
Promotional mechanics are vital to driving sales of premium lines and showcasing value in one, but the key before introducing these lines, according to Vekaria, is asking yourself one question: Can you benchmark premium in terms of price against a household brand?
“This will help you promote sales and increase category growth,” he says.
Speciality items to consider
Most trends come and go and it’s a case of jumping on them while the demand is high. Right now, within convenience stores, it’s chocolate from Dubai, with some lines selling upwards of £10.
For example, Nishi Patel, owner of Londis Bexley Park, in Dartford, Kent, works with a supplier he found online and based in London to provide specialty varieties of Dubai chocolate.
But to truly become a destination for higher-value confectionery lines, you need to stock products that have met ongoing trends and are standing the test of time.
This is where Epicruium comes in. Our team of buyers are always on the lookout for on-trend products, but we make sure we stock lines that can genuinely add value to stores like yours for the longer-term.
Some examples of our premium and specialty confectionery lines include:
● Ask Mummy & Daddy – The manufacturer creates ‘gourmet confectionery with unique, delicious flavours and stylish packaging’. Their products are palm oil, gluten, and dairy-free – and are all cocktail-inspired treats. Varieties include Prosecco, Gin Fizz and Cuba Libre.
● Tim-Tam – An iconic Australian treat, known for its indulgent chocolate coating, creamy filling and biscuit crunch. You can stock Caramel, Dark and Original from us.
● Doisy & Dam – Stock indulgent chocolate that’s plant-based, ethically sourced, palm oil free and uses only natural ingredients. We stock plenty of flavours and formats to choose from, including Ballers, Clusters and D&Ds.
Merchandising premium confectionery effectively
It can be challenging to encourage shoppers to buy premium confectionery, but if you position it effectively in store, it can help.
“Stocking the most valuable products at eye line is the right way to achieve this,” Vekaria says. “If it’s within their eye line, it exposes them to the product and it works even better if you have a strong price flash.”
You should also consider whether you make a standout section within your range, too, especially if you are expanding your premium and specialty lines. If you plan to become a destination, it might be worth going all in and building a dedicated display next to, but separate from, your core confectionery brands.
At Epicurium, we’re on hand to help with all elements of premium confectionery, from selecting a winning range to merchandising it in an impactful way in store. Get in touch today to find out how we can help you.
