Currently worth almost €100m in the Irish market, sugar confectionery remains an important impulse sales opportunity for retailers. Make sure you’re well stocked up on both the nostalgia-evoking classics and latest trendy treats that are whipping up a storm across playgrounds nationwide
15 April 2015 | 0
AT A GLANCE: SUGAR CONFECTIONERY
- The sugar confectionery market is worth €99 million and saw slight decline of -1.3% year-on-year (YOY)*
- Household favourites such as Drumstick Lollies, Love Hearts and Refreshers from Swizzels were transformed into the Squashies soft range last year and are now also available in 45g countlines and 160g retail bags
- Swizzels is the UK’s largest family-owned independent sugar confectionery business and one of the few confectionery companies to still manufacture sweets in the UK
- Showing consistent growth ahead of the UK market, with recent data showing an increase in value and volume sales at 9.9% and 10.7% respectively, Maoam retains its position as number two within the soft and chewy category**
- Rowntree’s is one of Ireland’s favourite confectionery brands, valued at €10 million*
- Rowntree’s Fruit Pastilles is the number one sugar single in the Irish market while Jelly Tots is the number five 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 +45%, driven by the family sharing trend*
- Rowntree’s sharing bags have sales of €3.2million and this will be further strengthened through NPD launches this year*
- Mints is the second largest segment in the impulse sugar confectionery, worth €8.3million to the retailer in the Irish market*
- The Polo brand is valued at €1.5 million annually*
- Nestle Polo multipacks are growing at +12.9% YOY*
- Almost half (48%) of parents said there were not enough allergy or intolerance-specific products for children***
- Children have a 94% brand awareness for the Chewits brand****
*(Source: Latest Nielsen Scantrack, 22 February)
**(Source: IRI 52 w/e 3 January 2015 – Soft & Chewy, UK)
***(Source: YouGov Free From Survey 2015)
****(Source: Independent research by 1MS 2010)
In recent times, gum-based sweets have been the fastest growing sector within the overall category; accounting for almost half of all sugar confectionery value sales. It subsequently 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. 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.
Sweet role up for grabs
Swizzels is offering one lucky fan their dream job as a sweet tester, tasked with tasting new sweet inventions before they hit the shelves.
The sweet manufacturer famous for producing well-known confectionery products such as Drumstick Lollies, Parma Violets and Love Hearts is on the hunt for a dedicated sweet taster to join its new product development team.
The tasty role will give the winner a rare opportunity to enter the world of sweet testing at Swizzels’ headquarters in Derbyshire where products are developed and made.
Training will involve learning how to use taste buds to help create winning flavours and practical tasks will include inputting on design packaging. The winner will get the chance to go behind the scenes, learning the tricks of the trade, working alongside new product development brand manager at Swizzels, Emma Herring.
Simon Demery, general sales manager for Swizzels in Ireland, said: “We know that adults love our products just as much as children so we’re looking for our biggest fan to join us at our factory and help us develop new additions to our range. It takes months to develop new flavours and the successful applicant will be shown the whole process, learning the secrets of how we make our fabulous sweets. It’s an important role and they’ll be helping develop new products that could be sold across the country. No experience is necessary – just a love of sweets.”
The reward for the successful applicant will be a year’s supply of sweets and the chance to visit the factory to sample sweets and help develop new products. They will be consulted on new products being developed at the factory for the next 12 months.
The search was launched on 9 March and the closing date for applications is 22 April 2015.
Applicants must write up to 500 words or submit a short video entry explaining why they are the best person for the job.
Swizzels is the UK’s largest family-owned independent sugar confectionery business and one of the few confectionery companies to still manufacture sweets in the UK. The company makes a range of well-known products including Love Hearts, New Refreshers, Drumstick Lollies, Rainbow Drops, Double Lollies and Fruity Pops.
Fresh new look delivers extra shelf appeal
Maoam, the fruity chew brand, has unveiled a vibrant new packaging design across its entire range for the first time since 2002.
Increasing on-shelf visibility for the growing brand, the refreshed pack designs create a modern and appealing new look for top selling lines including Stripes, Pinballs and Joystixx.
Strengthening its appeal amongst teens and young adults, Maoam’s core target market, the brightly coloured bags reiterate the cheeky fun and playful nature of the brand, while the iconic, fruity character retains its position at the heart of each bag.
Nadia Abou-Ragheb, Maoam brand manager, comments: “Just like Maoam our refreshed packs are bold and fun. Designed to stand out in what is a very busy fixture, our bags will certainly help to drive sales for retailers whilst also supporting our growth within the Irish market.
“Our new pack designs demonstrate a continued and significant investment in the brand and kick start what is set to be a very exciting year for Maoam.”
Showing consistent growth ahead of the UK market, with recent data showing an increase in value and volume sales at 9.9% and 10.7% respectively, Maoam retains its position as number two within the soft and chewy category.
Maoam’s top three lines Pinballs, Stripes and Joystixx are now available throughout Ireland in their new look packaging, with further pack designs for the remainder of the range making an appearance on shelf over the coming months.
For more details, contact a member of the Maoam sales team on (0)42 933 0580, visit the brand’s popular Facebook page Maoam UK, or follow the brand on Twitter @OfficialMAOAM.
*(Source: IRI 52 w/e 3 January 2015 – Soft & Chewy, UK)
Goody Good Stuff is a natural gummy range that is made with a plant derived bio-gum technology, which eliminates the need for animal-based gelatine, which most traditional gummy sweets use.
Over the last 15 years, Goody Good stuff has worked to develop a food technology, which allows the removal of the gelatine from gummy sweets while still producing a smooth and clear consistency. The Goody Good Stuff range is gluten free, soy free, meat free, egg free, nut free, dairy free, lactose free, tree nut free as well as free from artificial colours and flavours.
Goody Good Stuff has also rebranded its packaging. The range comes in eight flavours: Cherry Cherries, Koala Gummy Bears, Cola Breeze, Summer Peaches, Sour Mix & Match, Sour Fruit Salad, Strawberry Cream and Tropical Fruit.
Made with fruit juice and plant extracts, Goody Good Stuff sweets are safe for vegan, vegetarian, Halal and Kosher diets. Goody Good Stuff is also completely free from major allergens such as gluten, dairy, soy, eggs, nuts and cassiens.
Goody Good Stuff is now one of the fastest growing FMCG brands in Britain. Free from has become a lifestyle choice, rather than a medical one, making the market much larger than previously anticipated.
Many parents are including free from products in their home as “almost half (48%) of parents said there were not enough allergy or intolerance-specific products for children” (Source: YouGov Free From Survey 2015). What’s more, 25 million people think they suffer from an allergy which increases the need for free from products.
Goody Good Stuff is currently stocked by Tesco, Ocado and Amazon.
Something to chew over!
Valued at £593m in the UK, kids confectionery is the biggest category within sugar confectionery valued at £1,338m, says Bev Seymour, Commercial manager of Cloetta UK, which is the brand owner of Chewits. Reflecting Irish trends, convenience is a key channel for children, being the outlets where they spend their much valued pocket money and represents nearly half of the kids category valued at £259m and growing strongly at 2%, defying other trends in sugar. Over 80% of this growth is driven by share bags, with them representing over half of this category. A similar representation is in all channels. (Source: IRI, Defined Kids Sugar Confectionery, 52 we 13/09/14)
Chewits has a strong and loyal following from both adults and children, and consistently achieves high repeat sales. Nostalgia remains an important emotional driver with older consumers. They remember the brand’s iconic adverts and are more likely to pick up a confectionery treat that they remember from their own childhood, either for themselves or for their children/grandchildren.
2015 marks an important year for Chewits as it celebrates 50 years of trading. According to Bev Seymour, it has been consumers’ repeat purchasing that has brought Chewits to this important milestone.
Children play an important part in influencing the purchase of shared confectionery for the family, and children have a 94% brand awareness for the Chewits brand*.
Consumers respond well to flavour and sensory confectionery, which means that the brand’s sour products – Chewits Xtreme Sour Apple and Tutti Frutti – are performing well and their growth is set to continue. Its Xtreme products attract an older audience (11-14 year olds) in comparison to the Chewits stick packs who are favoured by a younger demographic (5-10 year olds). This would suggest that the sugar confectionery sector is evolving for an older audience while still maintaining a core younger audience.
Another influential trend is the growing popularity of price-marked packs (PMPs). For retailers, PMPs are critical in achieving positive price perceptions in-store with 94% of consumers saying they would buy a PMP confectionery multipack if available from a c-store and 48% of people believe PMPs would encourage them to switch from a preferred brand to a different brand**.
For further information or sales enquiries, contact SHS Sales & Marketing on 01452 378500
*(Source: Independent research by 1MS 2010
**(Source: Him! Price Marked Pack study 2011)
Retailers can win Big Apple trip
Ferrero is launching a new trade promotion this January offering convenience and independent retailers the opportunity to win a three night trip to New York. The ‘Win a trip to the Big Apple’ trade promotion follows the successful launch of Tic Tac Apple Burst in January 2014. Alongside this, 50 runner up retailers will be presented with best in class point of sale kits to help maximise sales of Tic Tac and drive growth for the sugar confectionery category.
For a chance to win, retailers will need to purchase a promotional case of Tic Tac which, from January, will all include a ‘Win a trip to the Big Apple’ scratchcard with a unique code. The code must then be entered onto the Ferrero trade website (www.ferrero-trade.com) where retailers will be immediately informed if they have been successful in winning either of the prize options.
With value acting as a key influence in the purchase decision for retailers, each case, which includes a countertop display will boast the added benefit of featuring the three popular fruit variants, Apple Burst, Strawberry Fields and Lime & Orange plus free Fresh Mint Tic Tacs worth €16.56*.
Sugar confectionery, worth €112m* in the Irish market (as of 28 June 2014), remains an important impulse sales opportunity for retailers. With a heavyweight 360 campaign behind the brand, Tic Tac is well-placed to help drive growth in the sugar confectionery category and this latest campaign is set to accelerate this.
Launched in January, the campaign will be supported by trade print and digital advertising to help increase awareness of the promotion. Retailers will be able to maximise their sales with Tic Tac Apple Burst related POS, available to order from www.ferrero-trade.com.
*(Source: Nielsen, Pocket Confectionery, Ireland Total Coverage, MAT to 28.06.14, Pocket confectionery is all sugar singles under 60g)
Q&A with…Simon Demery, general sales manager for Swizzels in Ireland
Swizzels have been key in driving innovation – are there plans for any new products in the pipeline?
Last year, some of our much loved brands extended into the gum market with the introduction of Squashies, whilst household favourites such as Drumstick Lollies, Love Hearts and Refreshers were transformed into a soft range and are now also available in 45g countlines and 160g retail bags.
We also set up an online shop so that couples looking for wedding favours can now buy personalised Love Hearts. In addition, we occasionally introduce limited edition versions of our most popular brands. This year for example, our ever popular Love Hearts turned green for St. Patrick’s Day and even featured a uniquely Irish phrase “Any Craic?”
Swizzels has long been a believer in innovation and NPD, and this year we are delighted to extend the Squashies range. With the success we’ve had with Drumstick Squashies, we have been able to extend this to include a Bubblegum flavour as well as a Sour Cherry and Apple flavour.
What are the key trends you have seen taking shape in the category over the last few years?
A key trend that I have seen emerging is consumers showing their appreciation for nostalgic brands. Nostalgia has become an increasingly popular way for brands to connect with consumers as they tap into the past with beloved real-life figures, mascots, taglines and products, but also incorporate these elements in new ways to connect with younger audiences as well. For example, last year, we celebrated Love Hearts’ 60th anniversary by producing a limited edition One Direction variant, and we will soon be celebrating a milestone anniversary for Dumstick lollies, a core part of the Swizzels range that continues to drive growth for the brand. Last year, Swizzels produced over 165 million Drumstick lollies and the brand has grown three times over the last two years.
The Drumstick brand has very high awareness levels among the target consumer and is easily recognised due to iconic logo and bold stripes. This allows us to further our NPD efforts and introduce the new Bubblegum and Sour Cherry and Apple Drumstick variants to the soft chew and soft gum ranges.
How will retailers benefit from the NPD and how do you encourage them to support the launch?
Retailers can benefit from this exciting new offering for many reasons, least of all the added variety it allows them to offer to their consumers. Squashies come in 45g countlines and 160g retail bags as well as the 145g pound flash bags which retail for €1 and run across all Squashies variants.
What marketing initiatives have you planned over the coming months?
Swizzels has already gotten off to a very busy start and 2015 is set to be a big year for the brand. We have just launched our Sweet Taster competition which will give one lucky fan the opportunity to join our dedicated development team and become an official sweet taster at the Swizzels factory in New Mills, Derbyshire. It’s already received a great deal of interaction online and this allows us to engage with our consumers online and boost our social media following which is already substantial with over 140,000 likes on Facebook and over 10,000 followers on Twitter.
What advice would you give retailers in order to drive sales within their confectionery category in-store?
Stocking a variety of formats is crucial. Variety packs are driving the market forward as retailers will need to cater to a wide range of consumers and occasions. For example, variety bags are an excellent way to offer youngsters something fun and they are also perfect for adults for occasions such as big nights in. Swizzels has sharing bags such as Loadsa Sweets and Loadsa Lollies, Loadsa Chew sterling flash as well as its bestselling Bumper Bag to accommodate retailers within this category.
As well as this, shoppers continue to look for value across the range of grocery categories so offering retailers products that enable them to sell value sugar confectionery alongside the full price ranges is key. Defining what value means to your customers is also important. Swizzels has a countline range that retails from 10c to 50c which is designed to drives sales by offering a wide range of products at a low price.