How can retailers reduce the impact of the Sugar Tax?

Many of the major supermarkets have recently announced that they will be changing their in-store promotion strategies and moving away from multi-buy and BOGOF. This decision comes at the same time as increasing pressure on high fat salt and sugar products.

Understanding the impact of the Budget’s sugar tax plans for soft drinks, the knock-on effect on other food categories and embracing these broader changes in retailer strategy is essential in order for brands to communicate effectively with the shopper.

Anthony Earley, director of Lick Creative, says: “Marketers must start thinking creatively, and now, about what they can do in store to ensure that they retain or gain market share. Solutions that encompass technology and creative displays, whether that’s digital interactive display screens or near field communication technology, are good starting points as they can be activated quickly to ensure consistency of message and communication with shoppers.”

Healthy outlook

Creating a plan that can swiftly take advantage of technology and creative displays will become key to making sure grocers can react to these shifts at the shelf, maintaining consumer attention and crucially educating on any necessary changes in product formulation.

There will be two main issues to address: education about reformulation; and introduction of new, healthier options. Both will be competing for shopper attention in-store and out.

“By enhancing the in-store experience, messages will almost immediately reach shoppers at the most essential point of the shopping journey: the shelf,” says Earley.

“However, it is also crucial that these messages are aligned with above-the-line advertising and marketing to ensure consistent brand experiences.”