Circana, a leading advisor on the complexity of consumer behaviour, today launched its Liquid Data Go solution in the UK, providing insights into shopper behaviour and retail trends that help level the playing field and support small to medium-sized (SME) FMCG manufacturers to compete effectively in the market.
As part of the launch, Circana revealed the latest insights from its Liquid Data Go platform and identified significant trends in distribution. Encouragingly, SMEs with an increase in Total Distribution Points (TDP) over the last 12 months compared to the previous year, account for 64 percent of SME value sales. However, manufacturers that have lost TDP account for 36% of the total SME value sales and report a drop in value – from £5.1Bn in value sales last year (across Major Multiple Grocers) to £4.2Bn in 2024, a loss of -£920M (-18 percent).
Distribution and display: A winning combination for growth
Brands that gained TDP over the past year have seen a 28.3 percent increase in total value sales, demonstrating the strong correlation between gained distribution and sales growth. In contrast, those brands that lost TDP have experienced a decline in value sales, down by 12.9 percent. The difference between the two groups is striking – TDP-gaining brands have outperformed their counterparts by an impressive 41.2 percentage points.
In response to soft market volumes in many categories, Circana analysis revealed that SME manufacturers have increasingly turned to promotional investment as a strategy for growth. 61 percent of SME value has seen an increase in promotional giveaway over the past 12 months compared to last year, leading to a notable 10 percent growth in sales for these manufacturers. In contrast, the remaining 39 percent of value, accounted for by manufacturers that lowered promotional investment, only achieved a modest 2 percent sales increase.
Alex Lawrence, Senior Strategic Insight Director at Circana said: “Promotional investment has driven disproportionate growth for SME brands but the scale of out-performance – just eight percentage points – pales in comparison to the out-performance that is achieved through distribution gains and comes at a cost along with the inherent risk of margin erosion.
“However, gaining new distribution isn’t always feasible, and when retaining existing distribution doesn’t translate into growth, our data highlights that efficient promotional investment is the key growth enabler.
“Driving promotional efficiency for SMEs is challenging with premium location off shelf display in high demand and expensive, nevertheless, 56 percent of SME value has seen an increase in the proportion of units sold with off-shelf displays year-on-year. These brands have outperformed their counterparts by an impressive nine percentage points, further emphasising the importance of efficient promotional investment as a growth enabler for SMEs.”
Empowering growth through data-driven decisions
Driving total distribution points and efficient promotion is reliant on data and Circana’s findings re-affirm the importance of having access to easy to analyse granular market EPOS data as critical to business success.
“Big data doesn’t have to come with a big price tag anymore,” commented Lawrence. “With Liquid Data Go, small and midsize FMCG manufacturers can unearth the same insights that their larger manufacturer competitors rely on to make sound business decisions for growth. This easy-to-use solution works like an ‘analyst in a box,’ offering quick access to key trends and performance insights. In just a few clicks, users can better understand market drivers, identify opportunities and put forward strategic recommendations.
Liquid Data Go is specifically designed to organise essential market and business performance data around the most important business questions, helping companies make smarter, data-driven decisions for growth. Fundamentally, the platform enables clients to engage with retailers to secure and grow distribution as the cornerstone to achieving value sales growth.”
Already available to customers in the US, SME manufacturer Mike Tysiak, VP Sales, Lily’s Toaster Grills said: “Liquid Data Go has been an essential tool in our brand’s growth journey. As we scale, we’ve moved beyond relying solely on great presentations and customer rapport; now, we leverage data-driven insights to showcase our brand’s performance at the retail level. The platform empowers us to make informed decisions across different categories and channels, providing the factual backing we need to demonstrate growth. Additionally, it’s invaluable for forecasting, helping us to predict SKU velocities and align our expectations with customer needs. Overall, Liquid Data Go has been a seamless and cost-effective solution that we plan to expand as we continue to grow.”
