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IN SEASON – WINTER WARMERS CHANNELLING WARMTH FOR A MORE MOBILE MARKET The convenience channel is emerging from the challenges of 2020 which brought decreased mobility, very little travel, and a move away from CBD and metro areas. By IRI Lead Consultant Jackie Campbell and Senior Associate Consultant Sheena Rochiramani. A s mobility increases, opportunities present themselves to cater to more customers engaging with the channel, and as we head into the cooler months, customers will look for winter warmers: convenient offers to add some warmth to their daily routine. On-the-go hot pastry and hot drinks are staples of the P&C channel. Hot pastry grew by more than six per cent despite the impact of 2020 and accounts for more than 33 per cent of on-the-go food. Coffee and hot drinks have been key drivers of growth over many years and after a drop in mid- 2020 have begun to recover. They account for almost 20 per cent of RTD beverages. These categories remain important to the core convenience offer. Emerging as an ongoing opportunity is take-home food, which brought significant growth in 2020 as consumers looking for convenient options had less access to restaurants and cafes. Take-home food grew by more than 40 per cent and accounted for more than 70 per cent of food department growth, an encouraging testament to how consumers are seeking out the convenience channel for a variety of meal solutions. In 2020, more people stayed close to home, for work and leisure time, and shopped locally. This was potentially to avoid larger crowds, but there was a groundswell of support for local retailers, something that convenience stores can tap into to ensure they’re catering to locals as well as returning commuters. 2021 has seen a gradual return to some kind of normality. However, the impact of working from home, sea and tree changes away from urban centres, and increased online engagement has changed consumer behaviour. Previously time-poor consumers may be engaging with convenience stores in a different way, which means retailers need to segment consumers and their needs and provide a variety of solutions. Convenient options will always be important, but consumers are also "Time-of-day needs will evolve as more people avoid the commute and embrace working from home, requiring coffee, lunch, or a snack during the day or at after-school pick-up." looking for indulgences and take-home offers. Time-of-day needs will evolve as more people avoid the commute and embrace working from home, requiring coffee, lunch, or a snack during the day or at after-school pick-up. The convenience channel will benefit from the return to mobility in 2021 but will require innovation to compete with other channels, including supermarkets and quick-service restaurants. Few new products have been introduced in on-the-go food, whereas plenty of innovation has been a feature of the grocery channel, primarily in chilled and frozen snacks. New offerings have catered to health-conscious consumers, addressed plant-based preferences, and tapped into international flavour profiles. Recent research indicated that younger consumers (millennials and Gen Z) aren’t embracing the convenience channel, which provides an opportunity to understand where else they’re purchasing and what kind of products they’re seeking. As the weather cools, this is an opportune time for retailers and manufacturers to review current ranges and consider returning consumers’ need for hot food and beverage offers. Source: IRI Market Edge Convenience data to 10/1/21. 24 CONVENIENCE WORLD MAY/JUN, 2021 About IRI IRI is the leading provider of big data, predictive analytics and forward-looking insights for the FMCG industry. For more information, visit iriworldwide.com.