The sweet stand
The Irish confectionery market is one of the most profitable for retailers. The chocolate category alone is worth over €347 million while market research put a value of €876 million on the confectionery category in 2011. The sector still has potential for further growth. Fiona Donnellan examines the market and its new additions
Print10 September 2013
AT A GLANCE: CONFECTIONERY
- Cadbury Dairy Milk is the biggest selling brand of chocolate in Ireland (Source: Nielsen Market Track MAT 30 June 2013)
- During the Christmas 2012 period, Lily O’Brien’s commanded over 14% of the market
- The National Lottery is making 225,000 boxes of Butlers Chocolates available as prizes for its new scratch card game this Christmas
- Galaxy is the second biggest confectionery brand in Ireland
- The Skittles brand is currently worth €2.8 million and is experiencing 9% sales growth (Source: Nielsen ST MAT July 2013)
- Skittles Fruits ranks within the top 10 sugar single fruit lines (Source: Nielsen ST YTD July 2013)
- Ferrero is the fourth largest chocolate confectionery company in the UK (Source: Nielsen Scantrack 52 weeks to 07/07/2012)
- Kinder Surprise is the number one kids confectionery line (Source: Nielsen, Kids Confectionery, Singles, Total Coverage, Value sales MAT 22/06/13)
- Research shows that two thirds of parents of four to 10 year olds believe it’s a good idea to have separate ranges for kids confectionery (Source: YouGov research carried out online in July 2013 amongst 206 parents of 4 to 10 year olds)
- Kinder Surprise is a key element in Ferrero’s ambitious growth strategy
- Kinder Kids range is experiencing growth of 17% (Source: Nielsen, Kids Confectionery, Total Coverage, Value sales MAT 22/06/13)
Recent research from Euromonitor suggests that the confectionery market in Ireland remains strong but certain products are declining. This is an opportunity for companies to gain market share with product innovation and unique customer targeting. Certain categories, such as liquorice and toffees, caramels and nougat, would appear to be in decline, as they are perceived as old-fashioned tastes which are more associated with elderly consumers. On the other hand, pastilles, gums, jellies and chews showed incredibly strong growth of 8%* per annum over the review period.
*(Source: Euromonitor, November 2012)
International portfolio
Mondelez International, owner of Cadbury, Green & Blacks, Toblerone, and Terrys is the leading supplier to the chocolate category in Ireland, which is now worth over eur*347 million*. With its varied brand and product portfolio Mondelez International is the chocolate share leader in the grocery and convenience sectors.
Cadbury Dairy Milk is one of the biggest-selling FMCG brands in Ireland and Irish consumers’ favourite chocolate brand**. Cadbury Dairy Milk is the biggest selling brand of chocolate in Ireland, over three times bigger than the second biggest chocolate brand*. Irish consumers love the chocolatey taste of Cadbury Dairy Milk but are also looking for new and exciting experiences.
Cadbury Dairy Milk Marvellous Creations, the biggest tablet and countline launch of 2013 offers consumers the opportunity to explore new taste sensations with friends and family through the innovative bar design that’s perfect for sharing, while still enjoying the Cadbury Dairy Milk chocolatey taste.
*(Source: Nielsen Market Track MAT 30 June 2013)
** (Source: Ipsos July 2013)
Bringing imagination to life
Nestlé Confectionery is bringing the spirit of Willy Wonka to life with the launch of the imaginative Wonka chocolate brand. The brand will launch with three wonderfully inventive, ‘scrumdiddlyumptious’ new products this month. Wonka’s Millionaire’s Shortbread is just like the classic sweet treat. It’s the tasty combination of caramel and shortbread biscuit pieces covered in smooth milk chocolate. Wonka’s Chocolate Nice Cream is a smooth vanilla crème topped with chocolate sauce and covered in milk chocolate. It’s not cold like an ice cream but it certainly tastes like one! Wonka’s Crème Brulee is a smooth vanilla crème topped with a caramel crunch surrounded by a milk chocolate shell.
Wonka’s Millionaire’s Shortbread (36g) and Chocolate Nice Cream (37g) will be available as impulse bars while all three flavours will also be available as 100g sharing blocks. They contain no artificial colours, flavours or preservatives and are made from 100% sustainably sourced cocoa. The Wonka brand’s core target audience will be mums aged 30-45, amongst whom there is already a huge affinity for the Wonka brand and its heritage.
Extending the brand
Nestlé Confectionery’s Rowntree’s Randoms brand launched its second extension earlier in the year with the highly innovative Rowntree’s Randoms Rip’ems. 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 range, each pack also contains 25% fruit juice as well as no artificial colours, flavours or preservatives.
The 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 launched with a major support campaign including TV, outdoor, digital and experiential sampling. Rowntree’s Randoms’ first brand extension, Squidgy Speak launched earlier this year.
Spooky sweets!
Swizzels Matlow, a leading manufacturer of children’s sugar confectionery brands has been leading the way regarding Halloween for a number of years. The company’s brands have enjoyed significant growth throughout the years and in particular around the Halloween period. Some of the range sure to attract attention are: Lots of Lollies, Bumper Bag, Chew Crew, and Monster Mix. For the more money-conscious consumer, Swizzels Matlow also produce a value offering range with Loadsa Sweets, Loadsa Lollies, Loadsa Chews, all with 40% extra and Monster Mix which comes with an extra 33%.
Nielson data has shown that in 2012, grocery multiples held a 64% share of the trade and this was growing 11.2% year-on-year. In the week of Halloween last year, there was a 30.6% increase in value sales and a rise in participation of convenience and small store formats. Swizzels Matlow accounted for the largest growth in units for the Halloween period in 2012. General sales manager, Ireland, Simon Demery says: "Sweets remain a vital part of Halloween and are the preferred item for trick or treaters. Swizzels Matlow delivers against the key factors shoppers are looking for: value, variety, brands and individually wrapped items. It’s clear that retailers of all sizes and formats have the opportunity to reap the rewards by featuring our range of products this Halloween."
For more information regarding Swizzels Matlow, contact 01-4517642 or email sales@swizzels-matlow.com.
Premium offerings
Premium confectionery assortments represent the only growth sector in multiples year-to-date with a 3.8%* value increase on 2012. There is a growing market for premium products as consumers look for special assortments. The Christmas period last year was extremely successful as premium assortments grew 3.1%, with a significant spike visible in the last two weeks prior to Christmas. During this period, Lily O’Brien’s commanded over 14% market share. Lily O’Brien’s Christmas range includes a variety of premium collections for gifting, sharing and self-treating inspired by and tailored to meet the needs of the Irish consumer.
Key product offerings this Christmas include its best-selling 190g Ultimate Chocolate Collection in a festive red grosgrain ribbon – an ideal gift and must-stock item; along with the larger 430g Petit Indulgence Gift Collection at excellent price points for family sharing. Lily O’Brien’s is distributed nationwide through Tennant & Ruttle.
*(Source: Nielsen, June 2013 – Sales in Multiples)
Lindt’s new Hello range is set to surprise and delight Irish chocolate fans with four variants
Nice to sweet you
Lindt Chocolate Ireland has launched a brand new range of tasty chocolates. The new fun and playful range is called Lindt Hello and is set to surprise and delight Irish chocolate fans across the country. Say hello to Cookies and Cream, Strawberry Cheesecake, Caramel Brownie, and Crunchy Nougat!
The new range is bursting with personality and made with the tastiest ingredients. This cheeky range of goodies includes an array of different formats and flavours to suit every occasion. The Hello Bars (100g) comprise of 10 creamy ‘pillows’ of deliciousness, perfect for sharing and have a €2.79 RRP. The range is available in all four new flavours.
With all of the new flavours to choose from, the Hello Treat Bars (39g) are the perfect choice for a treat on-the-go with a RRP of €1.29. The Hello Gifting Range (45g-250g) is a boxed collection with different flavour and types to choose from, including the Hello Thank You box (45g), the Hello Heart Tin (45g), the Hello Cube (250g) and the Hello Thins (Ultra Thin Chocolate) (125g). RRP €3.49 – €9.99
So, whether it’s a little treat, sharing with friends, or a thoughtful gift, the Lindt Hello collection has something for everyone to choose from. Lindt’s Hello range will be available exclusively in Musgrave’s stores nationwide from September 2013. For more information, log onto www.facebook.com/lindtchocolateireland.
Hampers, sweets and treats
Butlers Chocolates has been selected once again to partner with the National Lottery’s Hampers, Sweets and Treats scratch card game, launching in October.
This year, Butlers has revamped the look of the assortment which is exclusively produced for the National Lottery. The 225g Ballotin, which is the chocolate prize in the game, features a collection of 20 alcohol-free truffles and pralines in milk, dark and white chocolate, beautifully presented in a luxury gold box with coordinated wraparound and a gold ribbon.
The chocolate selection features 10 different chocolates; Caramel, White Cocoa, Dark Truffle, Hazelnut Crunch, Chocolate Truffle, Honeycomb Crisp, Orange Truffle, Lemon Sorbet, Almond Praline and Vanilla. The Butlers 225g Ballotin will be distributed by Richmond Marketing (call 6233222 or email sales@richmondmarketing.com for more details or to place an order).
The brand states this is a great opportunity for retailers to maximise revenue from the National Lottery which is making 225,000 boxes available as prizes this Christmas. Not only do retailers make a margin on the ticket, but they can also make a margin on the box of chocolates. There are display stands and POS available. Butlers advises stocking up on this Irish-produced line in plenty of time to make the most of the season ahead.
New flavours
Galaxy, the second biggest confectionery brand in Ireland, welcomes two new additions to the range. Galaxy Honeycomb Crisp and Galaxy Nut Crunch are available in a single 40g bar and large block of 114g. Both new products will launch in stores nationwide this month. These two new flavours are already firm favourites with Irish consumers and are set to drive category growth by attracting new consumers to both the brand and category.
The new product launches are part of an exciting re-launch for the entire Galaxy brand and are complimented by a full packaging redesign and a new product shape that embody the smooth, sophisticated elegance associated with Galaxy chocolate. Galaxy has invested heavily to support the new product launches in your store by developing a tailored suite of visually engaging POS to disrupt consumers in-store, driving awareness of the new flavours and an opportunity to increase sales.
Eye-catching innovation
The much loved Skittles brand continues to enjoy strong momentum in the Irish market. The brand is currently worth €2.8 million and is experiencing 9% sales growth*. This has been delivered by product innovation and engaging consumer promotions. Maintaining its popularity around the world, Skittles now has an amazing 25 million fans on Facebook, which places the brand within the top 10 global Facebook pages.
2013 has been an exciting year for the Skittles brand in Ireland; highlights include a range re-design as well as the launch of Skittles Confused. The eye catching range redesign displays the iconic Skittles rainbow flipped upside down on pack creating great stand out on shelf.
Launched at the beginning of the year, Skittles Confused continues to surprise consumers with flavours that don’t match the colour. Skittles Confused has proven popular with consumers since the launch, and along with Skittles Fruits, ranks within the top 10 sugar single fruit lines*.
Skittles supports three top selling variants including, Fruits,
Crazy Sours and Confused and all three variants are available in 55g and 174g formats.
With further innovation in the pipeline for 2014 retailers can look forward to more exciting news from Skittles which will drive further sales penetration and profits.
*(Source: Nielsen ST MAT July 2013)
A surprise for the till
The new range of pink and blue eggs from Kinder Surprise will contain a range of branded toys
Kinder Surprise, the number one* kids confectionery line from Ferrero is launching new limited edition pink and blue eggs from September. With two thirds of parents saying it’s a good idea to have separate ranges, the launch is set to generate a sweet treat for retailers’ tills. Each colour features a different popular branded toy range including; Fashion Dolls, Sprinty, Disney Princesses, Marvel, Hot Wheels and Barbie, which 66% of parents say will allow them to choose the egg with the most relevant toy inside for their child.
Kinder Surprise pink and blue eggs offer parents an even wider range of new and exciting toys alongside a small chocolate treat. The first limited edition eggs will contain Fashion Dolls in pink eggs for creative play and Sprinty in blue eggs, to fuel the imagination. With the other popular brands appearing at three month bursts throughout the year, shoppers will be guaranteed a branded toy when they purchase a single coloured egg.
"The introduction of pink and blue eggs is our biggest ever news for Kinder Surprise," says Levi Boorer, customer development director, Ferrero UK. "Already the number one kids confectionery line, Kinder Surprise is truly iconic, and now we are looking to make it even more relevant to parents with the introduction of pink and blue eggs, backed by a £5.3 million support package. We are confident this could unlock a significant sales opportunity for retailers, and we have developed vibrant POS to enable them to drive visibility in-store and capitalise on the impulsive nature of confectionery purchases. For impulse retailers with smaller stores, we have also developed a mixed case of 48 eggs for the first time."
The launch will benefit from a heavyweight support package including a new TV creative on air from mid-September with the strapline ‘A treat for the imagination’. In addition, a bespoke tag showing the new pink and blue eggs and toy brands will be shown from the end of September for seven weeks. A major outdoor poster campaign and engaging in-store support will also ensure that Kinder is visible to parents at the point of purchase.
Available from September, Kinder Surprise pink and blue eggs will feature Fashion Dolls and Sprinty respectively in mixed cases. The second burst will be available from February 2014, and the third from June 2014. Between bursts, white eggs will continue to be available. Every limited edition coloured single egg will feature a branded toy, while each three pack will contain one egg with a branded toy and two eggs with toys from the new collection of 100 Kinder Surprise toys.
Kinder Surprise is a key element in Ferrero’s ambitious growth strategy, and part of the Kinder Kids range which is experiencing growth of 17%**. Ferrero continues to invest heavily in the unique brand to drive further sales and increased penetration throughout the year. For further retailer information and advice, visit Ferrero’s trade website www.ferrero-trade.co.uk or call Ferrero UK Limited on 01923 690 300.
*(Source: Nielsen, Kids Confectionery, Singles, Total Coverage, Value sales MAT 22/06/13)
**(Source: Nielsen, Kids Confectionery, Total Coverage, Value sales MAT 22/06/13)
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