Research and Markets: Walkers Brand for Snack Foods in the UK Was Above 59% in 2008, Significantly Higher Than That of Its Nearest Competitor Brand, Pringles

DUBLIN, Ireland-- (BUSINESS WIRE) -- Research and Markets (http://www.researchandmarkets.com/research/6ee5a3/snack_foods_market) has announced the addition of the "Snack Foods Market Report Plus 2008" report to their offering.

This Market Report Plus on snack foods covers potato crisps/chips, other savoury snacks (including vegetable crisps, tortilla chips, products made from rice, maize and other grains, and baked products) and snack nuts.

Retail sales of snack foods were worth an estimated ￡2.15bn in 2007, having risen in value by just 0.4% on the previous year. Market growth continues to be driven by sales of larger pack sizes (of indulgence products, in particular) for sharing, but also by consumer uptake of healthier products, in which there has been considerable new product development (NPD), resulting in innovative products such as Walkers Baked. Factors such as no trans fats, low fat, low calorie, low cholesterol, low sugar, wholegrain, low sodium, and vitamins and minerals have all increased in importance in 2007/2008, as much publicity and debate are focused on the link between 'junk' foods and obesity, with its associated health risks.

Penetration of snack foods in the UK is high, standing at around 85% for potato snacks and around half the population for other savoury snacks and snack nuts. Nevertheless, the high degree of NPD and intense competition ensure that the market remains dynamic.

Both the UK and global markets are dominated by PepsiCo. Research commissioned specifically for this report revealed that penetration of the US company's core Walkers brand in the UK was above 59% in 2008, which was significantly higher than that of its nearest competitor brand, Pringles, although there are signs that Pringles is closing the gap on Walkers' dominance of the UK snacks market. Recent corporate activity among other competitors has included the November 2007 acquisition of Sirhowy Valley Foods (which manufactures hand-cooked crisps and vegetable chips under the Real Crisps brand) by Tayto (NI). This was followed in March 2008 by Tayto's acquisition of Red Mill Snack Foods Ltd.

In the second half of 2007, the UK faced two new international crises, namely the turmoil in global financial markets and a sharp rise in world fuel and food prices. Combined, these factors damaged business and consumer confidence. However, as savoury snacks are perceived as an indulgent treat and have a relatively low unit price, demand for these products has not suffered such adverse effects as other consumer products. Nevertheless, some businesses will struggle as the 'credit crunch' continues, and the rising cost of wheat, maize, flour and potatoes, the volatility of crude oil prices and an increase in the amount of land given over to biofuel production are just some of the other factors heaping pressure on manufacturers' margins.

Although a growing population will increase demand to some extent, the ageing profile of the population could be detrimental to demand for savoury snacks. In a virtually mature and competitive market, where discounting and free offers are prevalent, value growth of savoury snacks over the 5 years from 2008 to 2012 is expected to be modest.

Key Topics Covered:

• Executive Summary
• Market Definition
• Market Size
• Industry Background
• Competitor Analysis
• Brand Strategy
• Strengths, Weaknesses, Opportunities and Threats
• Buying Behaviour
• Current Issues
• The Global Market
• Forecasts
• Company Profiles
• Company Financials
• Further Sources

Companies Mentioned:

• Intersnack Ltd
• Seabrook Crisps Ltd
• Tayto (NI) Ltd
• United Biscuits (UK) Ltd
• Walkers Snack Foods Ltd

For more information visit http://www.researchandmarkets.com/research/6ee5a3/snack_foods_market

Research and Markets

Laura Wood

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