8 minute read
Sector review
Sugar & chocolate confectionery
Tom Gockelen-Kozlowski
For more than a decade, the convenience sector has been adapting to the growth of the ‘big night in’ – a trend that first began when consumers switched from expensive nights out towards cheaper events with family and friends at home. What began in the aftermath of the financial crash of 2008 has carried on for 14 years and counting – with the ongoing financial crisis only adding to its relevance.
For this reason, suppliers believe wholesalers should be mindful of the formats they stock in key categories such as sugar confectionery and chocolate.
“Sharing formats perform particularly well at this time of year, as consumers come together with friends and loved ones,” says a Mars Wrigley spokesperson.
“M&M’s Bitesize range is ideal for sharing and is available in consumers’ favourite flavours –
Peanut, Crispy and Chocolate.
The entire range is a must-stock for wholesalers, especially as bitesize is the fastest-growing segment in chocolate.”
Sharing formats are also helping to drive innovation in the confectionery market. Maltesers’ latest innovation – Dark Maltesers – are available in a £1 pricemarked treat bag. A spokesperson for Mars Wrigley says the dark chocolate segment is now growing by 15%. They add: “Made with 65% more cocoa and 30% less sugar, Dark Maltesers meet the demand for more permissible sweet treats, with a reduction in sugar content remaining one of the top-three priorities for shoppers.”
Another key launch of recent months has been the arrival of Wispa Gold Salted Caramel. Wispa is the third-biggest brand within the Cadbury range after Dairy Milk and Twirl.
The limited-edition 45g bar capitalises on what is a top-five flavour trend for new products, according to Mondelez
SUPPLIER VIEWPOINT
Jason Sutherland
Sales director, Ferrero
Following the pandemic, impulse on-the-go purchases have been affected as consumers continue to work from home and adopt flexible working programmes.
This has meant the trend for shoppers opting for multipacks and take-home formats to share with family and friends has continued.
As a result, premium boxed chocolate has proven to be one of the most resilient sectors in confectionery, reflected in our Ferrero boxed range, which is in 20% year-onyear growth.
Our Ferrero Rocher 300g format is the ideal premium offering, and it has supported retailers in driving bigger basket spend.
Premium boxed confectionery will continue to play an important role for retailers wanting to drive confectionery sales, so it’s key the right pack formats are available in depot.
For example, Ferrero Rocher 300g and Thorntons Classic 262g are ideal offerings that make it easier for customers to trade up to these premium brands and support retailers in driving bigger basket sales.
We also expanded our boxed chocolate range in August 2021 with the launch of Thorntons Pearls in Hazelnut Delight and Salted Caramel Sensation flavours.
PRODUCT NEWS
Toblerone Golden – Mondelez International has launched the latest extension to its Toblerone range with the goal of appealing to gift opportunities for younger consumers. Skittles Squishy Cloudz – Described as “the first aerated gummy products” to sit within the Mars Wrigley range, this launch combines gummy and marshmallow elements.
Wispa Gold Salted Caramel – This limited-edition bar taps into a top-five flavour trend for new products. Mondelez International says it’s the highest-performing flavour across all demographics. Thorntons Pearls – Available in two premium flavours, Hazelnut Delight and Salted Caramel Sensation, Thorntons Pearls are designed to tap into the gift opportunity. Dark Maltesers – Maltesers’ latest brand extension is available in a £1 PMP treat bag. Mars Wrigley says the dark chocolate segment is currently growing by 15%.
Ferrero Rocher – Ferrero’s boxed range is currently in 20% year-on-year growth. The Ferrero Rocher 300g format supports retailers and wholesalers in driving bigger basket spend, the company says.
International. “On-trend and relevant new flavours are a key growth driver in chocolate, accounting for 28% of category growth and attracting incremental younger adult consumers,” says Susan Nash, trade communications manager at the company.
Innovation
When it comes to sugar confectionery, innovation and novelty appear to be continuing to drive sales. A spokesperson for Mars Wrigley says: “Consumers are looking for variation in the texture and flavour of their fruity confections.
“Skittles, the fastest-growing and number-one contributing brand to the category in 2020, continues to create a pipeline of innovation with its latest release, Squishy Cloudz.”
Available in two flavours, Fruits and Crazy Sours, Squishy Cloudz are described as “the first aerated gummy products” to sit within the Mars Wrigley range. Combining a gummy and marshmallow, Squishy Cloudz retain the same intense fruity flavours that make Skittles a consumer favourite, the company says.
Highlighting the continuing need for brands to adapt to rising prices and the cost-of-living crisis, Squishy Clouds are also available in £1 price-marked bags.
The arrival of the festive period heralds a months-long opportunity to boost sales of gift formats that also includes Valentine’s Day and Mothers’ Day. Unsurprisingly, it’s an opportunity that suppliers are ready to help wholesalers benefit from.
Mondelez International has recently expanded the Toblerone range to bring shoppers a limited-edition launch: Toblerone Golden.
“This addition to the Toblerone range brings shoppers the crunchy
nougat of a classic Toblerone in golden caramel chocolate. Toblerone Golden is perfect as a seasonal gift, helping retailers to drive premium sales and tradeup,” says Nash.
Mondelez International believes the Toblerone launch will also help wholesale customers tap into more occasions by appealing to younger adult shoppers, who have shown an appetite for the caramelised white chocolate used in Toblerone Golden.
Caramelised white was the biggest new product category for chocolate in 2021, worth £18.5m, according to the company.
Gift opportunities
Gift opportunities also present an opportunity for emerging or independent brands, offering something different for a loved one. Karen Crawford, marketing director at Lily O’Brien’s, says
premium confectionery will be particularly important as shoppers seek to show their affection at a budget.
She adds: “Affordable indulgence will be a key trend. Shoppers will gravitate towards products that offer comfort, joy and luxury at an attractive price.
“The in-laid market is particularly well positioned for this, given the broad appeal of quality boxed chocolates and the meaning behind them.” One event that has only become relevant in the confectionery category over the past few years is Veganuary, thanks to the growth in consumers starting the year following a vegan diet.
“With Veganuary 2023 on the horizon and shaping up to be the biggest yet, Swizzels is offering tips to those retailers hoping to appeal to customers ahead of the challenge,” says the company’s sales director, Mark Walker.
“In 2022, 83% of Veganuary participants planned a permanent diet change, so it’s essential retailers stock a range of bestselling, well-known brands to entice customers.”
Swizzels’ range of veganfriendly products includes Refresher Original Lemon, Strawberry & Sour Apple, as well as the Drumstick original and Vimto flavoured chew bars. This all leaves one question: how can depot managers ensure they are ready to capitalise on the continuing strength of the confectionery market in the months ahead?
“For wholesalers, ensuring their main fixtures contain bestselling brands and any new products is essential, as 45% of confectionery products are picked up directly from main fixtures.
“Increasing the visibility of must-stock items will create more intrigue for consumers, resulting in boosted sales, so wholesalers should place these products at eye-level, or buylevel, to achieve the best results,” a Mars Wrigley spokesperson says.
With suppliers working hard to ensure the right products are available to meet the moment, the biggest challenge for wholesalers is ensuring they’re ready. l
TAKEAWAY POINTS
1. Focus on your main fixture – While impulse categories such as confectionery traditionally benefit from secondary sitings, suppliers believe it is important to make sure a depot’s main fixture is also well-stocked, attractive and relevant.
For wholesalers, ensuring their main fixtures contain bestselling brands and any new products is essential, as 45% of confectionery products are picked up directly from main fixtures, according to Mars Wrigley.
Increased visibility of must-stock items will create more intrigue for consumers, resulting in boosted sales, so wholesalers should place these products at eye-level, or buy-level, to achieve the best results, the company says. A small amount of effort is likely to pay dividends.
2. Pay attention to major trends – Recent launches highlight the impact that broader trends are having on the confectionery category. The arrival of Wispa Gold Salted Caramel and Dark Maltesers both follow the emergence of demand for salted-caramel- and dark-chocolate-flavoured products.
Toblerone Golden, meanwhile, arrives on the back of ‘caramelised white’ – the biggest chocolate NPD trend in 2021 – worth £18.5m.
“This addition to the Toblerone range brings shoppers the crunchy nougat of a classic Toblerone in beautifully crafted golden caramel chocolate. Toblerone Golden is perfect as a seasonal gift, helping retailers to drive premium sales and tradeup,” says Susan Nash.
3. Gifts aren’t just for Christmas – “Premium boxed confectionery will continue to play an important role for retailers wanting to drive confectionery sales, so it’s key that the right pack formats are offered in store,” says John Sutherland.
Ferrero Rocher 300g and Thorntons Classic 262g are put forward by the company as ideal offerings that make it easier for customers to trade up to these premium brands and support retailers in driving bigger basket sales.
Karen Crawford says premium confectionery will be particularly important as shoppers seek to show their affection at a budget: “Affordable indulgence will be a key trend,” she adds.
