Shelf Space Up For Grabs When New HFSS Regulations Come In, Says IRI
As much as 26% of shelf space is potentially 'up for grabs' once the UK introduces new regulations governing in-store promotion and off-shelf display of high fat, salt and sugar (HFSS) products next year, IRI analysis has found.
According to IRI, so-called HFSS products, which include confectionery, yoghurts and fruit juices among others, currently comprise around 38% of actual store space, and this could drop to as little as 12% when the new regulations are introduced.
The UK government is introducing the measures as part of its Childhood Obesity Plan, originally published June 2018, and seek to limit access by children to foods that are high in sugar, salt or fat when in-store. Retailer Tesco recently drew the ire of shareholders for failing to do more to tackle obesity.
Overall, around 5% of sales are at risk from the measures, IRI estimates, with some categories more exposed than others.
Chocolate will be most impacted, with 14% of sales estimated to be lost, due to chocolate gaining more incremental sales from being on display and from volume promotions.
Elsewhere, biscuits could lose around 9% of sales, ice cream could see sales drop 8%, crisps, snacks and nuts could see a drop in sales of 8%, and sugar confectionery is estimated to lose around 5% of sales.
IRI’s analysis shows that the impact of the new regulations will also be felt strongly in the chilled category where HFSS products currently have 52% of display space, which is expected to drop to 18%. The removal of products like desserts, pizzas and yoghurts will increase the amount of available off-shelf space.
“With the ban on in-store promotional activity and display for HFSS products, this is a real opportunity for brands that have no in-category competition or that offer healthier alternatives as retailers look to rethink their ranges," commented Joe Harriman, IRI’s HFSS strategic consultant.
“It’s not just newly available space either. With retailers rethinking their store layout, with initiatives like ‘power aisles’ and ‘premium’ in-aisle displays, there are plenty of opportunities for both LFSS (low fat salt sugar) and HFSS categories to benefit.”
IRI recently held a webinar on this topic, which can be found here.