Snacks focus: Cereal snackers
It's time to start thinking about breakfast. Of course, any publican reading this over their boiled egg and soldiers may be thinking that it's actually time to stop thinking about breakfast and get on with the bottling up.
However, in more general terms it seems pubs have been neglecting both breakfast and snacking - or so believes Alan Shakeshaft, director of foodservice at cereal market leader Kellogg's.
"We did some dipstick research into the pub market - just testing the waters - about 18 months ago, and what we found was a high level of unawareness about the market," he says.
"We believe breakfast is a big opportunity for pubs, and they also cannot ignore the cashflow opportunity offered by matching coffee and tea with snacks mid-morning."
The fact that Kellogg's already has established relationships with managed pub groups including Spirit Group, Mitchells & Butlers, Greene King and JD Wetherspoon ought to be enough to make independent publicans wake up and smell the corn flakes.
"We're continuing to work with the major pub groups to develop the breakfast opportunity," says Alan. "For example, by adding a combined cereal and juice offer to the menu."
While extended opening hours has undoubtedly created an opening at the front end of the day which most pubs have yet to seriously consider, Alan believes snacking is an easier win.Bars for bars?
Kellogg's pioneered the market for cereal bars in the UK with the launch of Nutri-Grain, and the category is still seeing significant growth "The market for confectionery in pubs has already been established, thanks to the focus companies like Cadbury and Mars have put on pub sales over the past few years," says Alan.
"Cereal bars are popular because they're perceived as a healthier option. We believe we have a range, such as our Nutri-Grain wrapped cakes, which is right for pubs."
One key advantage of wrapped cakes is that they have a longer shelf life than fresh products, a consideration for pubs uncertain about levels of customer demand. Linking snack sales to tea and coffee can drive sales of both.
Alan says: "Look at the success JD Wetherspoon has had in growing coffee sales. I'm telling all my team to look on this as a future revenue area for our business."
The adult appeal of cereal bars can also help to supplement child-friendly product ranges in pubs with play areas or family appeal. Older customers are a growing market in general, and grandparents watching their grandchildren in a play area will appreciate a coffee and snack offer targeting their tastes.
As Alan points out: "Lifestyles are changing, and there's a clear opportunity here for pubs to grow revenue."
