Bonbon boom
One of the most recession-proof categories within FMCG, confectionery is a treat that’s gone boom during the bust, writes Gillian Hamill
15 September 2010
At a glance: CONFECTIONERY
- Indulgence accounts for 46% of snacking occasions throughout the day, with healthier snacking choices accounting for the remaining 54%*
- Before 12pm, indulgent snacks are not the first choice – healthier snacking products are the preferred option for consumers at this time of the day (*Kellogg snacking opportunity in impulse research, July 2009)
- The Extra mint brand delivered 67% of category growth in 2009 which equates to over £2.3 million**
- Extra Ice Mints are up 31% year to date; double that of any other mint brand within the mints category (**AC Nielsen Tot Cov GB MAT to w/e 07.11.09)
- Silvermints holds a 12% value share in the mints market
Market analyst Mintel has reported chocolate sales around the world have busted through the recession. “Chocolate is a small, affordable indulgence for shoppers who are cutting back on spending elsewhere,” said Marcia Mogelonsky, global food and drink analyst at Mintel. Furthermore, despite worldwide economic troubles, Mintel’s Global New Products Database (GNPD) reports that manufacturers launched nearly the same number of chocolate products in 2009 as in 2008.
In fact, confectionery featured in the recent RTE programme ‘10 things that went bust in the boom.’ Confectionery companies such as Cadbury’s also reported rising sales, with underlying sales up 7% in the July-September quarter 2009; beating even the most bullish forecasts. Recent research by Kellogg’s has also shown that while indulgence remains important – accounting for 46% of snacking occasions throughout the day – that healthier snacking choices can also drive sales, and in fact, account for the remaining 54% of snacking occassions.
Working the impulse counter harder
When it comes to “on the go” eating, consumers’ needs have changed dramatically over the past number of years. This has been down to two key drivers; a significant shift towards a more hectic lifestyle, with increased opportunities for eating out of home; and an ever-increasing consumer awareness of nutrition and health issues.
Consumers, as a result, are looking for a wider choice of snacking products. Kellogg’s claims there is no doubt that consumers still want indulgence. However, indulgence only accounts for 46% of snacking occasions throughout the day, with healthier snacking choices accounting for the remaining 54%*.
Consumers’ snacking needs are also different at different times of the day. Before 12pm, indulgent snacks are not the first choice – Kellogg’s research shows healthier snacking products are the preferred option for consumers at this time of the day (*Kellogg snacking opportunity in impulse research, July 2009).
Kellogg’s knows that the nature of the snacking need means that consumers must have the right options available at the point of purchase. Retailers that stock healthy snacks on the impulse counter are therefore taking advantage of a significant opportunity to drive incremental sales and profit within the confectionery category.
Kellogg’s offers a range of snacks that meet health requirements in the morning, including Kellogg’s Nutri-Grain and Kellogg’s Elevenses. Kellogg’s also offers more indulgent “tasty treat” options that are relevant to consumers in the latter part of the day through the Kellogg’s Rice Krispies Squares range. Kellogg’s Special K snacks meet a very specific consumer need for weight management at all times of the day, which are often not catered for on the counter.
Kellogg’s claims it can help retailers to work their impulse counter harder to meet changing consumer needs with the right display of the Kellogg’s cereal snacks range at the point of purchase. Contact the Kellogg’s account team on (01) 8429100 to find out how.
Challenging an Olympian
To further support the Cadbury Spots v Stripes integrated campaign and the link with Team Ireland, Cadbury Ireland has developed a national consumer promotion to enable consumers to challenge Irish Olympians in an online game.
There are four Irish Olympians involved in the campaign – Michael Carruth, Sonia O’Sullivan, David Gillick and Kenny Egan. Consumers can register online and enter a promotional code in order to play against one of the Olympians, choosing from four different games against an Olympian on the opposing team. There are hundreds of prizes to be won and everyone who enters gets entered into a draw to win the grand prize, which includes two trips to support Team Ireland in their quest to secure a place in the 2012 Olympic Games. The prize consists of a five day trip for two people to the IAAF World Track & Field Championships, in Daegu, South Korea, in 2011. Plus a three day trip to the Dublin Horse Show in the RDS. The prize includes accommodation at both events for two people and spending money of €1,500.
The promotion runs on pack, on special packs of Cadbury Wispa, Cadbury Double Decker, Cadbury Caramel and Cadbury Twirl. The promotion will also run off pack on Cadbury Dairy Milk, Cadbury Dairy Milk Turkish, Cadbury Dairy Milk Wholenut and Cadbury Moro.
Ungrowing up with Milkybars
Nestlé Ireland has launched a new product variant, Milkybar Raisin and Biscuit with a search for a new Milkybar kid. The ‘Ungrow Up’ campaign created by Santo Agency celebrates the new product, which has all natural ingredients, and will be on air from 2 August 2010 with a range of TV commercials, outdoor 48 sheets, PR and an extensive digital campaign.
Members of the public can join the ‘Ungrow Up’ campaign by uploading their own impersonation of the Milkybar kid to www.milkybar.ie to be in with a chance of being featured in Milkybar’s next advertising campaign.
However, to become the Milkybar kid you have to look the part and no Milkybar kid would be complete without their iconic glasses and hat. These props will be superimposed via an online audition process whereby applicants can become the Milkybar kid by using augmented reality. All wannabe Milkybar ‘kid-ults’ need do is get in front of their web cam, sing the much-loved song and convince their friends and family to support them.
The Milkybar kid is strong and tough, and didn’t become one of the world’s most popular sheriffs by sitting around. To give contestants a helping hand, the kid has created a downloadable ‘make me famous’ social media guide for entrants to promote their audition tapes.
Caroline Burton, consumer category manager, Nestlé Ireland, said: “There is a Milkybar kid in all of us and we hope that Milkybar Raisin and Biscuit will encourage all adults to join the ‘Ungrow Up’ campaign. The Milkybar kid is a much-loved character, and those are tough cowboy boots to fill, but we’re excited to see how the public take on the challenge.”
Milkybar Raisin and Biscuit is currently available nationwide at a RRP of 83c.
Butlers at your service
Butlers Chocolates continues to hold a privileged position as one of Ireland’s most popular producers of premium luxury chocolates. Butlers Chocolate Collection and Chocolate Selection have an excellent track record in TSNs, symbol groups and multiples as premium chocolate assortments at attractive price points; with retails starting from as little as €5.00. Each Butlers Chocolates box features a lavish assortment of luxury chocolate truffles and pralines in milk, dark and white chocolate. Beautifully presented in stylish packaging, Butlers Chocolates make a striking on shelf display which Butlers believes will maximise retail sales.
Recently, Butlers Chocolates 100g Milk Chocolate with Hazelnuts bar was awarded a prestigious gold Great Taste Award for excellence in taste, texture and flavour. Due to unprecedented demand, Butlers is about to launch a further four flavour varieties to complete the range. The new flavours will include White Chocolate and Vanilla, Dark Chocolate Mint Crunch, Milk Chocolate with whole Hazelnuts, and Dark Chocolate with whole Almonds. Supplied in contemporary point of sale self merchandising bar boxes, Butlers Chocolate bars have strong visual appeal and are perfectly placed at busy till points.
Butlers Chocolates are distributed by Richmond Marketing. Email chocolate@butlers.ie for more information.
Explosive new hits
Originally introduced in the early 1980s, Wham has become an iconic brand in its category over the last 25 years and is a popular brand for children and young adults due to the low price and “cult” value.
The original Wham offering is a Raspberry flavour chew bar with sugar crystals, which give the bar legendary “tongue tingling” effect. The Wham chew bar range has expanded over the years to include Sour Cherry, Sour Apple, Strawberry, Cola, Wham Xtrm and Highland Toffee. Earlier this year Wham chew bars re-launched as a bigger bar moving from a 19g to a 25g bar and bringing the suggested RRP from 20 cent to 25 cent. Early indicators show this move has proved hugely popular.
The Wham range has recently expanded, in terms of new products and pack sizes, to give retailers an opportunity to boost impulse sales of children’s confectionery via a colourful and impactful display. The new line-up features explosive new products such as Wham TNT Popping Candy, Wham Nitro Sour Spray and Wham Xtrm Sherbet Dip. Other launches include Wham Kerpop lollipops and Wham liquorice products such as Fizz Sticks, Tinglers, Loopy Laces and Power Pencils. The Wham bars, Kerpops and Wham Liquorice lines are all free of artificial colours and flavours.
There are now 20 different Wham products available to the Irish market. Wham is distributed in Ireland exclusively by the Gleeson Group. A full product list can be requested at 01 6269787. For further information see www.gleesongroup.ie.
Let Lily bring festive cheer this year
Lily O’Brien’s, Ireland’s leading premium chocolatier, presents a range of indulgent chocolate offerings for festive gifting this Christmas season, as well as delicious treats for sharing and impulse pick-up. Lily O’Brien’s products perform consistently well during key confectionery seasons and Christmas is no exception – with a proven record for driving sales growth, Lily O’Brien’s is a must-stock brand this festive season. Among its best sellers are the 190g and 345g Chocolate Collections, beautifully presented in red and cream colourways to maximize shelf impact and create eye-catching displays in store. Lily O’Brien’s chocolates are distributed nationwide by Tennant & Ruttle.
Freshening up
Traditionally thought of as appealing to an older market, innovative NPD in the mints category is once again bringing this confectionery classic to the forefront of young consumers’ minds, writes Gillian Hamill
Consistently growing mint and gum sales started to level off around 2005, against a background of consumer concerns around health and obesity. However, due to new product launches and increased levels of innovation from companies such as Wrigley, there has been a fresh injection of interest in the category.
New dimensions are also being added to the mix, with gum and mints competing in the oral health and health supplement market, and the snack market. Market analyst Mintel also states strong mints are a shining light within their category. Statistics showed 71% of people eat mints or gum to freshen their breath, 46% use them to get rid of a strange taste and 30% to clean teeth in the absence of a toothbrush.
Something Extra to chew over
For the second year in a row, Wrigley has introduced a new product to the mints category taking the freshening power of its best selling Extra brand into the soft and chewy mints segment. New Extra Chewy Mints, launched in April, is the only bag of mini mints to contain four different flavours.
Extra Chewy Mints are set to bring younger consumers to the soft and chewy mints segment, the largest segment within the mints category. Every 38g bag of Extra Chewy Mints contains a mix of mini mints in four flavours; Peppermint, Spearmint, Sweetmint and Coolmint. Each individual mint has a sweet crunchy shell and soft chewy centre and the bags have an RRP of €0.77.
Following last year’s Extra Ice Mints launch, the mints category saw growth for the first time in five years. The Extra mint brand delivered 67% of category growth in 2009 which equates to over £2.3m. In fact, Extra Ice Mints are up 31% year to date (Source: AC Nielsen Tot Cov GB MAT to w/e 07.11.09), which is double that of any other mint brand within the category.
Melt in the mouth
Silvermints, the classic ‘melt in the mouth’ mint, is one of Ireland’s best loved confectionery brands. Silvermints was first introduced in the 1920s and the product continues to maintain a loyal following to this day. The mint is best known for its great taste and crumbling texture that make it a hit with both young and old alike.
Silvermints holds a 12% value share in the mints market. The brand continues to maintain its strong position in the Irish mints market with the launch of innovative products in recent years.
Silvermints are available in the original foil packed tube which continues to be a firm favourite. In 2005, Silvermints extended its range with the successful launch of Mini Silvermints Tins, targeting a younger audience. These are available in Standard and Extra Strong formats. Mini Silvermints are in an eye-catching compact tin with a resealable flip top lid, making it ideal for slipping into a pocket or handbag. The latest addition to the range was the introduction in 2008 of Silvermint Softies, a unique fresh mint with a crunchy outer and chewy centre.
For further information, contact Tenant & Ruttle on 01 623 1771.
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