Breakfast Biscuits used to be limited to Farley’s Rusks, but no longer. From a standing start in January 2010, when Belvita was responsible for essentially ‘launching’ the adult Breakfast Biscuit market, it has grown to become a £75.9m sub-sector.
In 2012 it leapt a whopping 78.9 per cent in value, with volumes up 105.8 per cent (IRI w/e 17 August 2012). Granted this rise was from a low base, but is still significant in a wider biscuit market which has risen 3.7 per cent in value with volumes up 2.7 per cent (Kantar Worldpanel 52 w/e 7 July 2012).
This Insight looks into the factors driving this phenomenal growth and how price, promotions and advertising are evolving as the sub-category matures.
The battle for the post-modern breakfast occasion
Even as the most important meal of the day, time for breakfast remains at a premium for most. This means the pressure is on for consumers, especially professionals and young working mothers, to find the right product to meet both their time constraints and nutritional needs. Belvita has found success satisfying their quick to eat, fulfilling and healthy needs.
How is Mondelez protecting Belvita’s success?
We have seen the price premium for this category increasing as consumers recognise the value of the product to their lives. With Belvita key to the price increase, Mondelez (Belvita manufacturer) is using promotional mechanics to protect its market leader status.
By moving away from Buy 2 for discounts and toward Half Price deals it is becoming very difficult for the competition to make an impact through their promotions.
With Mondelez aggressively protecting its market leader status, it leaves the competition with reduced avenues to standout.
Which options are being used to standout?
One possible way is through health credentials, where we see brands traditionally strong in this area offering longer promotions with less depth of cut, enticing consumers familiar with the category into alternatives beyond Belvita. Could this be the ‘achilles heel’ of Mondelez’s runaway success?