Brand Central

• Kraft Foods is the number one supplier of sugar hanging bags with 30.5% value share* 
• The Natural Confectionery Company Snakes 200g is the second biggest selling SKU*
• *(Source: Nielsen Market Track w/e 30 Oct 2011)
• Maynards is the number two sugar roll pack (Source: AC Nielsen MAT 25 Dec 2011)
• Rowntree’s has the top three best selling sugar singles on the Irish market**
• Rowntree’s is worth €11m and is in growth by 4%**
• Rowntree’s Fruit Pastilles is the number one sugar single product**
• Rowntree’s Sour Pastilles has been the number one selling sours line since its launch in April** 
• Rowntree’s has achieved growth of 131% in sharing bags in the latest year, with the launch of Rowntree’s Very Berry Jellies, Jelly Aliens, Sour Faces and Sour Pastilles contributing to this rise**
• **(Source: Nielsen Scan Track, Total Market 52 w/e 29 January 2012)
• Tic Tac has had its most successful year since the product launched into the UK market, with a sales increase of 7% (Source: Ferrero Business Year, Sept 2010 to August 2011. Sell In data)
• While seven of the top 10 pocket confectionary manufacturers are in value decline in the UK, Tic Tac from Ferrero is bucking the trend, with +1.4% growth (Source: AC Nielsen – 52wks to 25.12.11) 
• Tic Tac is growing +3% in value, driven by the Lime and Orange and Fresh Mint variants (Source: AC Nielsen – 8wks to 25.12.11)
• The Skittles and Starburst brands combined are worth more than €4 million and are growing in market share (Source: AC Nielsen, MAT 8WE 25 Dec 2011).
• Starburst Fruit Chews is consistently ranked in the top 10 single selling sugar lines 

Research from market analyst Mintel shows that in the big five European countries*, sales of sugar and gum confectionery have remained stagnant over the past four years (2008-2011), from €8.6 billion in 2008 to an estimated €8.9 billion in 2011. Nevertheless, there is still positive news for the confectionery industry. Mintel’s research shows that Europe has been active in new product launches for the sector, accounting for over a quarter (27%) of global sugar and gum new product launches during January 2011 to June 2011, down a small 1% on the previous six months (July/Dec. 2010). Mintel’s GNPD recorded some 965 new products in Europe in this period in sugar and gum confectionery, with the UK (20%) leading in terms of NPD activity among the big five European countries during this period, closely followed by Germany with 18% and Spain with 12%.

 

Several brands within the Irish sugar confectionery market are also recording growth, which in one case has extended into not just double but triple-figure growth. This demonstrates the importance of the sugar confectionery category, which is still instrumental in driving sales for Irish retailers. 

In terms of the latest trends that are abounding within the sugar confectionery category, the most noticeable one is the introduction of more natural ranges and the elimination or reduction of additives and preservatives. Indeed, the ‘no additives/preservatives’ claim was the second most popular across Europe during the six months to June 2011, accounting for around a fifth (20%) of the gum and confectionery launches, a figure which more than doubles the 9% seen globally.

Meanwhile, the ‘low/no/reduced sugar’ claim dominates in new product development in the category, with over two in ten (22%) new launches with this claim over the past six months. 

 

Pastilles, gums, jellies and chews remain the largest sub-category in Europe for NPD at around a quarter (23%) of the launches for the review period, followed by gum (14%), toffees, caramels and nougats (12%), and boiled sweets (9%). In particular, the sub-categories that saw above-average activity compared to the global market included standard and power mints (8%), liquorice (8%) and medicated confectionery (7%). As regards flavours, traditional flavours remain extremely popular in Europe, with fruit varieties dominating (30%) the market, followed by berry fruit (21%) and herbs (20%).

In a recent article by Miriam Tuomey, of the consumer foods division, Bord Bia, she noted that “confectionery, both chocolate and sugar confectionery, are set for growth in the next number of years according to a report by Business Insights. They suggest that consumers are seeking comfort from the recession with the simple joys of everyday confectionery all along the spectrum up to and including splashing out on the affordable luxury of some premium chocolate (albeit in smaller boxed quantities)”. 

 

Tuomey added that sugar confectionery companies are now trending towards the use of real fruit flavourings as this allows them to make a natural claim and demand a premium positioning. 

 

Last month, in another Bord Bia report, Tuomey noted that the world sugar supply/demand situation remains very tight and is leading to further increases in sugar prices. Figures from indexmundi.com show that global raw sugar prices for contract number 11 sugar are currently standing at more than 32c/lb, which is almost 50% ahead of the previous year’s levels.

She added that all manufacturers with sugar as a key ingredient are likely to have to deal with higher prices for some time. This is leading to increased pressure to secure higher prices from retail customers, which to date has been difficult given the consumer spending environment. 

 

In a report entitled ‘Sugar and Gum Confectionery – UK’ that was published in November 2011, a Mintel senior food analyst, Chris Wisson, offered a solution to this problem. “Reducing sugar content as both a cost-saving measure and to align with consumer interest for healthier sweets may be the best route to keeping sugar confectionery at a manageable price for both manufacturers and users,” said Wisson.

 

*Germany, France, Italy, Spain and the UK

Rowntree’s, Ireland’s number one confectionery sugar brand, believes it has seen phenomenal growth over the past few years, driven mainly through a continuous focus on brand renovation and bringing new products to the market. 

 

Rowntree’s currently has the top three best selling sugar singles on the Irish market. Worth €11m and in growth by 4%* the brand’s iconic Rowntree’s Fruit Pastilles is the number one sugar single*, the innovative Rowntree’s Randoms is the number two and Rowntree’s Jelly Tots is the number three sugar single. Also, as the number one selling sours line since its launch in April, Rowntree’s Sour Pastilles has proved popular, worth €700,000* since launch. Rowntree’s has also seen incredible growth of 131%* in sharing bags in the latest year and the launch of Rowntree’s Very Berry Jellies, Jelly Aliens, Sour Faces and Sour Pastilles has contributed to this growth. 

 

The innovation continues in 2012 with the launch of Rowntree’s Fruit Bottles – a new fruity twist on an old favourite. Rowntree’s Fruit Bottles contain 25% real fruit juice and come in four favourite flavours – blackcurrant, cherry, orange and lemon-lime. Rowntree’s Fruit Bottles will be available in a single impulse format and also a larger family share bag.

March also sees the Rowntree’s impulse range feature an on-pack instant win promotion. Giving consumers the chance to win €12,000 by finding all red sweets in their pack, Rowntree’s Red Ones will be available across Rowntree’s Randoms, Rowntree’s Fruit Pastilles and Rowntree’s Sour Pastilles. Packs included in the promotion will be flashed with the question “Is this full of Red Ones?”

 

What’s more, for those not lucky enough to win instantly, there are still thousands of chances to win online. 

 

All consumers need to do is enter the special code in their pack at www.facebook.com/Rowntreesor www.facebook.com/randoms and they could be in with a chance of winning further cash prizes, or one of 10,000 packs of Rowntree’s impulse lines.

 

The Rowntree’s Red Ones promotion is also supported by a strong media campaign, including TV, outdoor and cutting edge digital activity. In fact, Rowntree’s Red Ones is the first sugar confectionery augmented reality promotion to be marketed on pack. Created using Blippar’s state of the art technology, consumers can use the augmented reality to enter the prize draw. 

Maria McKenna, consumer marketing manager at Nestle Ireland says: “Research has shown that the fruit sugar segment of the impulse category grows rapidly after Christmas, therefore Rowntree’s Red Ones comes at the ideal time for retailers wanting to sweeten up their sales.

 

“Furthermore, the combination of a hugely popular brand like Rowntree’s together with the launch of some really excellent new product innovation and promotional activity is sure to drive the overall sugar confectionery market this year.” 

 

* (Source: Nielsen Scan Track, Total Market 52 w/e 29 January 2012)

Kraft Foods is the number one supplier of sugar hanging bags with 30.5% value share and The Natural Confectionery Company Snakes 200g is the second biggest selling SKU (Source: Nielsen Market Track w/e 30 Oct 2011). The Natural Confectionery Company (TNCC) range comprises of 12 variants including the latest development, Guzzle Puzzle, which was launched last year. Guzzle Puzzle is a unique addition to the sugar confectionery category. The ‘magical’ product features different jelly shapes in different flavours which fit together. The magical part comes when the jellies are combined to produce entirely new flavours: cinnamon and lime create cola; orange and banana give you bubblegum; raspberry and lime make pink lemonade. Kraft Foods believes the Guzzle Puzzle concept is unique and certain to drive interest in the sugar category. The sugar confectionery category is currently in growth and TNCC is capitalising on this through product innovation. 

 

Maynards is the number two sugar roll pack (Source: AC Nielsen MAT 25 Dec 11) and is a much loved brand with Irish consumers and a must stock brand for retailers. The range consists of Maynards Wine Gums, Wine Pastilles and Sours in a roll pack and sharing bag format.

Skittles and Starburst are among some of Ireland’s best-loved brands in a category continuing to grow. Skittles and Starburst have become iconic brands within the sugar category appealing to people of all age groups. Combined these brands are worth more than E4 million and are growing in market share (Source: AC Nielsen, MAT 8WE 25 Dec 2011).

 

Recently, the Skittles brand expanded its range and introduced Skittles Crazy Cores in both single (55g) and pouch (174g) pack formats. This new piece of innovation brings together two flavours in one Skittle and is available in five flavours. Crazy Cores offer a new way to enjoy Skittles and drives consumer engagement within the sugar category.

 

Initial retailer reaction to the launch has been exceptionally positive with one Spar retailer in Leitrim describing it as a “wonderful product that is the best selling sugar product in the store. It is popular among all age groups and I would highly recommend any retailer to stock it”.

 

Starburst is the playful and energetic candy that embodies summertime, packed with a variety of authentic fruit flavours and a chewy texture. Starburst Fruit Chews is consistently ranked in the top 10 single selling sugar lines, and is also available in a larger 192g sharing bag.

 

During spring and summer 2012 there will be a range of offers on Skittles and Starburst designed to excite retailers and energise shoppers.

“Tic Tac has had its most successful year since the product launched into the UK market, with a sales increase of 7%*. This was driven by a combination of NPD, such as Cherry Passion, and a series of engaging marketing campaigns such as Tic Tac’s partnership with The X Factor and the limited edition pack supporting Asda’s ‘Tickled Pink’ Charity, which drove incremental sales by 51%**,” commented Meghan Doffing, customer development manager, Tic Tac. “In 2012, we will be surpassing this activity with a substantial integrated marketing campaign and will be helping our retail customers to maximise this opportunity by investing in bespoke merchandising solutions to drive visibility and sales."

 

Tic Tac is a Love Irish Food brand, with the logo currently on all packs and Ireland currently supplies 45% of the world’s supply. For more information visit: http://www.loveirishfood.ie/brands/tic-tac-in-ireland.

 

While seven of the top 10 pocket confectionary manufacturers in the UK are in value decline, Tic Tac from Ferrero is bucking the trend, with +1.4% growth (Source: AC Nielsen – 52wks to 25.12.11) The latest Nielsen sales data, shows Tic Tac is growing +3% in value, driven by the Lime and Orange and Fresh Mint variants (Source: AC Nielsen – 8wks to 25.12.11)

*(Source: Ferrero Business Year, Sept 2010 to August 2011. Sell In data)

** (Source: AC Nielsen, ASDA KAD, average value & unit sales Tic Tac % uplift, four wk promo period 02.04.2011 to 23.04.2011) n

 

 

This March, Scots Clan is launching a new limited edition coffee flavour variant. This is a new addition to the much-loved classic chewy caramel chocolate sweet brand. The smooth, rich flavours of coffee and caramel are combined to create a twist on the classic Scots Clan recipe. The new bag will compliment the existing Scots Clan bag, which underwent a pack redesign in 2011. Scots Clan Coffee is available in an impulse 160g bag for a limited time only. 

For further information, contact Tenant & Ruttle on 01 623 1771