Sugar sensation
Accounting for almost half of all sugar confectionery value sales, gum-based sweets represent a key sector to watch within sugar confectionery. Soft, they may be, but they're certainly no slouch when it comes to generating growth
16 April 2013
AT A GLANCE: SUGAR CONFECTIONERY
- The gum-based sweets segment is the fastest growing sector and accounts for almost 50% of sugar confectionary value sales (Source: Nielsen, MAT ending 18.08.12)
- Rowntree’s is Ireland’s number one sugar confectionery brand*
- Rowntree’s is worth €11.3m and is in growth by 2%*
- The Rowntree’s Fruit Pastilles product is the number one sugar single in the Irish market*
- Rowntree’s Jelly Tots is in the top five best-selling sugar singles in the Irish market*
- The Rowntree’s brand has achieved market share growth of 11% in sharing bags in the last year*
- Wrigley’s sugar confectionery portfolio is recording 11% MAT growth (Source: MAT Nielsen MT Jan/Feb 2013)
- Cadbury Dairy Milk is Ireland’s favourite confectionery brand**
- Cadbury Dairy Milk’s accounts for 74% of take home blocks and has seen year-on-year growth of 28%**
*(Source: Nielsen Scan Track, Total Market incl. Dunne’s 52 w/e 24 February 2013)
**(Source: AC Nielsen Market Track MAT w/e 6 January 2013)
Although take home confectionery declined by -9.3% during a 12 week period last year (Source: Kantar Worldpanel, 12 w/e 25 November 2012), several brands within the Irish sugar confectionery market nevertheless recorded significant growth, demonstrating that the category is still instrumental in driving sales for Irish retailers.
A major consumer trend within the category is the introduction of more natural ranges and the elimination or reduction of additives and preservatives. The ‘low/no/reduced sugar’ claim has also dominated new product development. Alex Beckett, senior food analyst at Mintel recently highlighted the importance of offering consumers healthier confectionery options. "Sugar confectionery is hardly on a blacklist of harmful foods… yet this isn’t to say that sweets with healthier recipes hold no appeal," said Beckett. "A hefty 61% of sweet users claim that there are not enough healthy sweets available, rising to 64% of under-35s which suggests an opportunity to excite usage."
Gum-based sweets are currently the fastest growing sector within the overall category; accounting for almost half of all sugar confectionery value sales. It therefore stands to reason that manufacturers would be keen to introduce innovation within this sector, with several new engaging and fun SKUs gaining a place on retailers’ shelves in recent months. Sharing bags have also become a major component of many stores’ confectionery ranges, due to families opting to enjoy a big night in instead of expensive trips out in a bid to entertain the kids.
Juicy news
Randoms Squidgy Speak is supported by a major media campaign, including TV, outdoor, digital, sampling and PR
Rowntree’s, Ireland’s number one sugar confectionery brand, has seen ongoing growth over the past few years, driven mainly through a continuous focus on brand renovation and innovation.
In terms of sugar confectionery, Rowntree’s is worth €11.3m and is in growth by 2%*. The brand’s iconic Rowntree’s Fruit Pastilles product is also the number one sugar single in the Irish market* and Rowntree’s Jelly Tots also joins it as another of the top five best-selling sugar singles in the Irish market.
The Rowntree’s brand has also seen market share growth of 11% in sharing bags in the last year*. The group believes the launch of two new variants in January of this year, Rowntrees’s Fizzy Bottles and Rowntree’s Fruit Bottle Blasts will no doubt contribute further to this growth.
In 2012 Nestlé Confectionery announced it was the first major confectionery manufacturer to ensure all its products contained no artificial colours, flavours or preservatives and its Rowntree’s range contains 25% real fruit juice.
Innovation is a key driver in the sugar market and Rowntree’s continues its focus on new product development with the launch of Rowntree’s Randoms Squidgy Speak – a fun new extension of the popular Rowntree’s Randoms brand. Rowntree’s Squidgy Speak is now available in a single impulse format and also a larger family sharing bag.
Following in Rowntree’s Randoms’ quirky footsteps, every bag is full of fruit flavoured (apple, orange, blackcurrant and strawberry) foamy sweets each featuring a different word. With 40 random words to choose from, every bag can tell a different story, thus offering consumers the opportunity to really engage and have some fun with their sweets.
Maria McKenna, consumer marketing manager at Nestlé Ireland, says: "The Rowntree’s Randoms brand, with its quirky personality, has proven such a success with consumers that we recognised the opportunity to extend it with another fun new product. Supported by a major media campaign, including TV, outdoor, digital, sampling and PR, Randoms Squidgy Speak is certain to capture shoppers’ attention."
Watch out for more product innovation from the Rowntree’s brand later in the summer.
*(Source: Nielsen Scan Track, Total Market incl. Dunne’s 52 w/e 24 February 2013)
Rowntree’s Randoms launches second brand extension of 2013
Nestlé Confectionery’s Rowntree’s Randoms brand is also set to launch its second brand extension of the year with the highly innovative Rowntree’s Randoms Rip’ems.
Available from 22 April, Rowntree’s Randoms Rip‘ems consists of eight peelable strips in four fruity flavours (apple, blackcurrant, orange and pineapple). Its unique peelable format is the first of its kind for the sugar confectionery market. In line with the rest of the Rowntree’s range, each pack also contains 25% fruit juice as well as no artificial colours, flavours or preservatives.
The new launch is in keeping with Rowntree’s Randoms quirky brand personality offering an innovative, unique product experience with the ‘peel away’ strips bringing playful fun to the eating experience. All four fruity flavours taste great together and can be eaten separately or in any mixed combination. Rip’ems will be launched with a major support campaign including TV, outdoor, digital and experiential sampling.
Part of the Rowntree’s brand, which is worth a substantial €11.3 million*, Rowntree’s Randoms launched in May 2009 and quickly proved to be a success with consumers and has since contributed over €7 million to the sugar confectionery category.
*(Source: Nielsen Scan Track, Total Market incl. Dunne’s 52 w/e 24 February 2013)
Morphing into sales
This month, Wrigley believes it is set to change the face of the Irish confectionery category with the launch of new Starburst Flavour Morphs, a unique product that changes flavour while you chew.
A first for the Irish confectionery category, Starburst Flavour Morphs will be launched across all channels in a 45g stick and 152g sharing pouch and will feature the following flavour combinations: Strawberry to Strawberry Pear; Cherry to Cherry Lime; Raspberry to Raspberry Pear.
Wrigley’s sugar confectionery portfolio continues to perform well in trade, now in 11% MAT growth and increasing market share through iconic brands which enhance fun everyday moments (Source: MAT Nielsen MT Jan/Feb 2013). Starburst Flavour Morphs is expected to drive strong sales and fuel future category growth by giving consumers a new approach to enjoy Starburst products.
This spring and summer, look out for offers and activity on Skittles and Starburst that will excite both retailers and shoppers.
Marvellous news
Cadbury Dairy Milk, Ireland’s favourite confectionery brand*, is bringing a touch of the marvellous to retailers this April, with the launch of Cadbury Dairy Milk Marvellous Creations – two wacky yet wonderful flavour combinations covered in Cadbury Dairy Milk chocolate.
On sale in two variants, Jelly Popping Candy Shells combines popping candy, jelly and sugar coated chocolate candy pieces while Cookie Nut Crunch delivers a flavoursome sweet and salty taste sensation with a balance of biscuit pieces, crunchy nut caramel and chopped roasted nuts.
The launch of Marvellous Creations with its distinctive new candy striped packaging and its curiously shaped crazy paving bar is expected to reinforce and support Cadbury Dairy Milk’s market position of 74% of take home blocks and year-on-year growth of 28%*.
The launch of Cadbury Dairy Milk Marvellous Creations is being supported by an extensive nationwide marketing campaign and in keeping with the wackiness and creativity of Marvellous Creations, engaging POS will be also available in-store.
*(Source: AC Nielsen Market Track MAT w/e 6 January 2013)
A real soft-spot for Squashies
Swizzels Matlow, the leading confectionery manufacturer, has announced the launch of Squashies – a new gum range set to rejuvenate the market and drive category growth.
The range sees iconic, much-loved brands – Love Hearts, Drumstick Lollies, Double Lollies and New Refreshers – transformed into a softer gum version. Supported with the strapline, ‘Original Favourites Squashified’, the launch is the most significant NPD for Swizzels Matlow in recent years.
The new format is set to capitalise on the trend for gum-based sweets, which is the fastest growing sector and accounts for almost 50%* of sugar confectionary value sales, whilst tapping into the strong, positive association consumers have with the heritage brands.
Sarah-Louise Heslop, marketing manager at Swizzels Matlow, comments: "We are thrilled to be introducing Squashies into the market and offering consumers their favourite brands in a softer version. This is our first foray into developing gum versions of our household brands and, with research showing that people love the concept and the products, we are confident the launch will be a great success."
Available in 160g bags and a 45g countline size, the new Squashies range will feature a bold, colourful and modern design for strong on-shelf stand out and to communicate the fun personality of the brand. The bags will also include a window to entice consumers to trial the product.
With the ‘Big night in’ trend popular amongst consumers, fuelled by the return of family-favourites X-Factor and Strictly Come Dancing, Squashies is sure to appeal to consumers looking for a treat to either share with the family, or enjoy on their own.
The launch is being supported by a social media and marketing campaign that includes the introduction of a free Squashies World app, a dedicated website and Facebook page, and targeted sampling.
Squashies will be available nationwide from April 2013, with a RRP of €1.89 for a 160g bag.
The Squashies World app is downloadable at www.swizzels-matlow.com/squashies.
For more information, contact Swizzels Matlow Ireland by telephone on O1 – 4517642, by fax on 01 – 4517429 or email sales@swizzels-matlow.ie.
The product contains no artificial colours.
*(Source: Nielsen, MAT ending 18.08.12)
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