THIS WEEK: UB hit by falling KP crisps sales

Sales of KP Foods’ standard crisps have plunged by 50% in the past year in the grocery and impulse market, according to figures obtained by Marketing.

Sales of KP Foods’ standard crisps have plunged by 50% in the past year

in the grocery and impulse market, according to figures obtained by

Marketing.



The sales figures show that while over the year to April 27 1995, KP

Crisps had sales worth pounds 13.81m, sales accrued over the following

year totalled just pounds 6.16m (IRI Infoscan).



The figures will add to speculation that KP’s owner, United Biscuit,s is

looking for a buyer for the crisps division, headed by former Golden

Wonder snacks chief executive Doug Clydesdale.



A spokeswoman for KP confirmed the massive fall and admitted that KP’s

focus has moved away from the standard crisp. ‘The crisps business unit

is concentrating its efforts on brands like Roysters and McCoys, which

are registering substantial growth.’



KP lost a substantial amount of sales in Scotland, its previous

stronghold, when Walkers launched in the region in 1994. But the

spokeswoman said that the general decline in the value of the brand

nationally is offset by a stronger performance in pubs.



KP is a problem area for UB, with profits falling by 35% to pounds 19m

in the year to March, reducing the profit for the whole company to

pounds 127m - a fall of 27%.



The snacks business unit, with brands including Hula Hoops and Skips,

and the crisps unit (KP Crisps, McCoys, Roysters and Brannigans), have

been hit by the growth of PepsiCo brands.



PepsiCo has focused for the past two years on its Walkers and Doritos

brands, which have hammered KP with the aid of increased distribution

and, in the case of Walkers, inspired advertising.



UB’s response at the start of the year was to separate KP into four

units: crisps, snacks, nuts and Derwent Valley Foods. This aimed to give

each of the areas more autonomy in order to increase competitiveness.



However, financial pressures are believed to have stifled ad budgets.

While star performers such as Hula Hoops have managed good growth from

below-the-line activity, other brands have suffered from lack of

advertising support.



Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message