Sweet disposition

The new Skittles Wild Berry variant is available in 55g single bags and 174g sharing pouch formats

Currently worth €100 million, Ireland's sugar confectionery market is growing by 1.5% year-on-year. New brand extensions are reinvigorating interest in a category which has always been a sweet earner for retailers, writes Gillian Hamill

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Brand Central

AT A GLANCE: SUGAR CONFECTIONERY

• The Irish sugar confectionery market is currently worth €100 million* and it is growing by 1.5% year-on-year 
• Skittles is currently in +16% MAT sales growth (Source: Nielsen MAT w.e 23/02/2014)
• Skittles is the fastest growing top 10 sugar brand in Ireland and is set to continue growth momentum in 2014 with the launch of Skittles Wild Berry
• Rowntree’s, one of Ireland’s favourite confectionery sugar brands, is valued at €11 million
• Rowntree’s Fruit Pastilles is the number one sugar single in the Irish market while Rowntree’s Jelly Tots is the number two product
• Rowntree’s Randoms are one of the top ten best-selling sugar singles in the Irish market
• Rowntree’s multipack range has experienced growth of +63% to reach value sales of €1.1m, due to the family sharing trend
• A €2.8 million brand in its own right, Rowntree’s Randoms delivered growth of +25% in 2013 following range extensions such as Randoms Rip’Ems 
• 55% of Tic Tac value sales go through the impulse channel**
• Tic Tac, the fastest growing top 10 pocket confectionery brand, has delivered +7.3% growth versus last year*** and the addition of the new Apple Burst flavour is set to further accelerate this growth
• Fruit is now the largest segment of the pocket confectionery category as well as the fastest growing****
• The mints category remains the second largest segment within the pocket confectionery category
• Tic Tac’s newest fruit flavours Cherry Passion and Strawberry Fields achieved strong growth in the last two years and now account for 33% of total Tic Tac sales***
• Pocket confectionery is a category currently worth £345m in the UK*******
• The Tic Tac brand is worth over £22.9m******** and has delivered +7.1% growth********* in the past three years.
• According to Levi Boorer, customer development director, Ferrero:

"Impulse purchases are crucial for mints; amongst the main reasons people buy them is for travel, to eat on the go and for mouth freshening."
"Pocket confectionery is one of the most impulsive categories in the confectionery market, with seven out of 10 purchase acts being unplanned, which makes merchandising the right products at till points and on fixture, critical to unlocking sales in this area."

*(Source: Nielsen Scan Track, Total Market incl. Dunnes 52 w/e 23rd February 2014)
**(Source: Ferrero My Perfect Store trials 2013, Uplifts versus control stores)
***(Source: Nielsen ScanTrack, Total Coverage, Value Growth, 52w to 05.10.13 vs. year ago)
****(Source: Litmus, Impulse , 52w to 06.10.13)

*****(Source: AC Nielsen, Pocket Confectionery, Total Coverage, MAT to 01.03.14)
******(Source: AC Nielsen, Total Tic Tac, MAT to 01.03.14)
*******(Source: AC Nielsen, Total Tic Tac, MAT to 01.03.14 vs MAT 2YA) 

Berry good news for sugar sales 

Skittles is Ireland’s fastest growing top 10 sugar brand in Ireland and is set to continue growth momentum in 2014 with the launch of Skittles Wild Berry. Designed to deliver incremental sales within the confectionery category, new Skittles Wild Berry will launch across all channels in April.

A tasty combination of Raspberry, Strawberry, Wild Cherry, Berry Punch and Melon Berry flavour, new Skittles Wild Berry will not only appeal to existing users but also attract new consumers with a more mature taste palette to the brand. The variant is available in 55g single bags and 174g sharing pouch formats.

Skittles continues to perform well, currently in +16% MAT sales growth (Source: AC Nielsen MAT w.e 23/02/2014). This growth is driven by both single bag and sharing pouch formats, which are supported throughout the year with multiple consumer promotions.

This summer, the brand says retailers can look forward to further exciting activity on the Skittles brand, intended to deliver additional consumer excitement and retail sales.

Juicy news from Rowntrees

The Irish sugar confectionery market is currently worth €100 million* and it is growing by 1.5% year-on-year.

Rowntree’s, one of Ireland’s favourite confectionery sugar brands is valued at €11 million and continues to see strong performance, driven mainly through a continuous focus on brand renovation and innovation.

The brand’s iconic Rowntree’s Fruit Pastilles product is the number one sugar single in the Irish market while Rowntree’s Jelly Tots is the number two product, with Rowntree’s Randoms joining them within the top ten best-selling sugar singles in the Irish market.

The Rowntree’s multipack range has experienced incredible growth of +63% to value sales of €1.1m, not surprisingly as the range is right on trend for family sharing. The Rowntree’s brand has also seen strong category performance within sharing bags with sales of €3.7 million and this will be further strengthened through new product launches in sharing bags across the year.

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 Sweet N Sour. An innovative product that taps into the growing consumer trend for sour confectionery, Rowntree’s Random’s Sweet N Sour will be available a single impulse format and also a larger family sharing bag.

Maria McKenna, 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. Aimed at Randoms’ core target audience of 18-24 year olds, each bag doesn’t just contain standard sour sweets but the tongue tingling combination of a sweet foamy sweet, sour jellies and super sour liquid filled sweets."

The launch of Rowntree’s Randoms Sweet N Sour benefits from a high impact digital media campaign. Digital is an important communication route to the brand’s social media savvy target audience of typically 18-24 year-olds, indeed Rowntree’s Randoms has more than one million fans.

Part of the Rowntree’s brand, Rowntree’s Randoms has proven a smash hit with consumers since it launched in May 2009 and has successfully grown the sugar category. Now a €2.8 million brand in its own right, Randoms delivered impressive growth of +25% in 2013 on the back of range extensions such as Randoms Rip’Ems, versus the fruit sugar market which grew at +1.5% and thus demonstrating how innovation from the brand will drive growth into the category.

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.

*(Source: Nielsen Scan Track, Total Market incl. Dunnes 52 w/e 23rd February 2014) 

Tic Tac is aiming to drive sweet sales with the launch of new Apple Burst

Tic Tac, the iconic pocket confectionery brand from Ferrero is launching Apple Burst, a fruity new addition to its popular range. The new flavour will be available to impulse retailers from February and will roll out to grocery later in the year. A significant 55% of Tic Tac value sales go through the impulse channel*, and impulse retailers will have the opportunity to drive sales with earlier availability of this new flavour. 

Tic Tac, the fastest growing top 10 pocket confectionery brand, has delivered +7.3% growth versus last year** and the addition of the new Apple Burst flavour is set to further accelerate this growth.

Levi Boorer, customer development director, comments: "This latest launch will once again tap into a huge consumer trend for fruit flavours in the pocket confectionery category. Fruit is now the largest segment of this market as well as the fastest growing***. Apple is one of the world’s most popular flavours and our consumer research indicates that the new Apple Burst flavour will be just as popular as the incredibly successful Strawberry Fields. Confectionery is the most impulsive of all the categories, so we would always encourage retailers to merchandise the full Tic Tac range in a highly visible area with impactful displays that highlight new flavours."

The launch of Apple Burst follows the strong performance of Tic Tac’s newest fruit flavours Cherry Passion and Strawberry Fields. These flavours achieved strong growth in the last two years and now account for 33% of total Tic Tac sales**. Strawberry Fields delivered €4.7m in its first year, becoming the most successful NPD in pocket confectionery in 2012/2013**** and was highly recommended at The Grocer’s New Product Awards 2012 (Confectionery – Sugar).

Boorer adds: "New fruit flavours have been highly incremental to the category, so it is important to stock a range of flavours as the majority of customers stick to a preferred variant*****. For example, 71% of Tic Tac Strawberry Fields consumers do not eat any other Tic Tac flavours******, making it a highly incremental SKU. Apple Burst is sure to be just as successful in bringing in new shoppers, with its unique flavour profile against the current range."

The Apple Burst launch will benefit from a £3.6m media spend investment in the wider Tic Tac brand. The activity will include TV, digital, outdoor and in-store activation. Ferrero has developed impulse specific display solutions to raise visibility and to capitalise fully on this opportunity. Counter top units are for sale in a number of wholesalers, with the opportunity to request POS on the Ferrero website, www.ferrero-trade.co.uk.

Apple Burst is available in a 18g single pack and a 49g 100 pack.

For further information and advice, visit www.ferrero-trade.co.uk or call +44 (0)1923 690 300.

*(Source: Ferrero My Perfect Store trials 2013, Uplifts versus control stores)
**(Source: Nielsen ScanTrack, Total Coverage, Value Growth, 52w to 05.10.13 vs. year ago)
***(Source: Litmus, Impulse, 52w to 06.10.13)
****(Source: Based on sales value in pocket confectionery)
*****(Source: Dunhumby, Loyalty Card data, 52w to 21.07.13)
******(Source: Dunhumby, 26 weeks to 6/1/13)

Seasonal products form an integral part of Shelton’s product range, with a strong licenced sector, including One Direction and Disney

Family business with finger on pulse of trends

Shelton Distributors is a family business, supplying the multiple, group, independent and foodservice sector, for over 40 years. Brands include Look-O-Look, Walkers Toffees, Bon Bon Buddies licenced products, Hamlet Belgian Chocolates, Cavalier, De-Bron Sugar-Free ranges and many others.

Seasonal products form an integral part of the product range, with a very strong licenced sector, including One Direction and Disney. This makes a compelling Easter and Christmas package, available for retailers across the country.

To cater for the growing trend in healthy eating options, the existing sugar-free ranges like Cavalier and De-Bron are being enhanced with natural ingredients and gluten-free products, and the emphasis on developing this product sector will continue.

With fun products for all ages, Shelton aims to be an important part of the confectionery market for many years to come

With a fast changing confectionery market, Shelton, with over 40 years’ experience in the sector, is well placed to bring exciting and innovative products to retailers; to keep the retailer up-to-date with current market trends. With nationwide distribution and customer service always the priority, the company says it aims to be an important part of the confectionery market for many years to come.

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