Read the following extracts (A to C) before answering Question 1.
Write your answers in the spaces provided.
Extract A
UK sweet market revenue –
... [Show More] actual and projected Sales revenue value in £millions
3000
2500
2000
1500
1000
500
1995
2128
2282 2388 2456 2528 2620
0
2680 2734
2015 2016 2017 2018 2019 2020 2021 2022 2023
Year
(Source: adapted from https://www.statista.com/outlook/40100200/156/sugarconfectionery/united-kingdom#market-revenue)
Extract B
UK sugar sweets
Bags of sugar-based sweets are still popular in the UK’s independent convenience stores. However,
sales in the stores could be increased if they added ‘better-for-you’ options and dedicate space to
kids’ sweets. From lollipops to liquorice laces, convenience stores serve customers from school kids
searching for a sweet snack, to pensioners with a desire for a ‘pick-me-up’.
Sugar confectionery is often bought on impulse and there is a trend for consumers to buy little and
often, so convenience stores are ideally placed to increase sales. In 2018, £445m of sweets were sold
in convenience stores, out of total UK sweet market of £2388m.
Convenience stores can take full advantage of their independent status to shop around and stock
new sweet products from suppliers. Stores have the freedom of choice to stock smaller niche brands,
an opportunity to differentiate, given that consumers are now switching to cheaper own brand
sweets.
(Source: adapted from https://www.conveniencestore.co.uk/products-in-depth/hangingwith-the-big-gums/567533.article)
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Extract C
Bon Bon’s sweet wholesaler
Bon Bon’s, founded in 2007, is a confectionery wholesaler, led by Yorkshire businessman, Mark
Rowntree, descendant of confectionery pioneer, Joseph Rowntree. In 2018, Bon Bon’s opened an
additional site in Yorkshire.
Bon Bon’s supplies a range of confectionery, from Belgian chocolates to boiled sweets and specialist
liquorices, as well as children’s sweets such as ‘Traffic Light Lollies’ and ‘Candy Necklaces’. It repackages
these sweets in small quantities and interesting packaging. Bon Bon’s claims this selection is different
to the mass-produced ranges found in the larger high street chains. Sweets are supplied to hundreds
of high-quality independent retailers including farm shops, delicatessens and tourist attractions such
as The British Museum, Tower of London and Stonehenge. Bon Bon’s provides display units so these
retailers can recreate the look of a traditional, old fashioned sweet shop.
“We are probably the UK’s largest confectionery business, that still packs by hand. The additional
space will allow us to provide more packing capacity in our existing unit and use our additional site
as a distribution warehouse. Although we want to grow, we don’t have mass market ambitions,” said
Rowntree. Bon Bon’s has a total of 85 staff.
(Source: adapted from http://www.bqlive.co.uk/food-drink/2019/01/11/news/healthyoutlook-as-latest-rowntree-confectionery-entrepreneur-expands-into-new-scheme-34762/
and https://www.bonbons.co.uk/traditional-sweets/)
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In 2018, the value of the UK market for sugar-free sweets was 3% of total sales revenue.
In 2023, it is forecast to be 5% of total sales revenue.
1 (a) Using the data in Extract A, calculate the change in value of sugar-free sweets
sales predicted between 2018 and 2023. State your answer to 2 decimal places.
You are advised to show your working.
(4)
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(b) Explain one way in which a business such as Bon Bon’s adds value to the products
it sells [Show Less]