TLC: Tasty, luscious confectionery

Kraft Foods is launching a €1.5m marketing campaign to introduce consumers to the Joyville concept

A continuously high level of innovation within the confectionery category continues to deliver appetising results for both manufacturers and retailers.

Brand Central

17 September 2012

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AT A GLANCE: CONFECTIONERY

Cadbury Dairy Milk is the number one confectionery brand in Ireland (Source: AC Nielsen YTD M/E June 2012)
Kraft Foods’ chocolate offering has outgrown the overall market both in value (+160bps) and volume (+330bps) (Source: ACNielsen YTD M/E June 2012).
The sugar confectionery market is worth an estimated EUR*48.8m
Caramel is the second biggest variant after milk chocolate in Ireland and the market for caramel has grown every year over the past five years (Source: Nielsen Markettrack EDC MAT data to June 2012)
Sour Patch Kids is the biggest selling sour sweet in the US with annual sales in excess of $100m
Screme Egg was the number one selling Halloween SKU last year (Source: Nielsen, Volume and Value Sales, we 03.09.11-05.11.11)
Halloween is the third largest season outside of Christmas and Easter for confectionery, with EUR*32.4m of confectionery sold in the four weeks run up to Halloween
Kraft Foods’ value share of chocolate bags has increased by 12.3% (Source: Nielsen Market track 29
The total market value of confectionery is down by -1%*
Nestlé Confectionery has maintained its market share at 16.3%*
*(Source: AC Nielsen Total Market – Year to Date period ending 15 July 2012)
Yorkie is the number two choice in ‘big eat’ hunger formats within impulse chocolate (Source: AC Nielsen Total Market – Year to Date period ending 15 July 2012)
Lily O’Brien’s ranks consistently within the top two to three premium confectionery brands in the market according to Nielsen (sales from multiples 2012)
Lily O’Brien’s is the top performing Irish premium chocolate brand, with 15% market share

While the confectionery market remains challenging with total market value down -1% (Source: AC Nielsen Total Market – Year to Date period ending 15 July 2012), a number of brands have managed to maintain, and indeed, significantly increase their market share by constantly introducing NPD and promotions that successfully engage with consumers.

With the rise of in-home entertainment, whereby family and friends are increasingly staying in as a result of credit-crunched wallets, a major new consumer trend has arisen. The larger ‘sharing bag’ format is subsequently one that manufacturers are currently focusing on, with a great deal of NPD being introduced specifically within this sector. Smaller permissible treats with an affordable ‘pocket money’ price point are also growing in popularity with children.

Halloween also represents a major opportunity for driving confectionery sales. Indeed, the ghoulish festivities are the third largest season outside of Christmas and Easter for confectionery. Parents are family members are keen to get stocked up in advance moreover, with €32.4m of confectionery being sold in the four weeks run up to Halloween. Now is therefore the time for retailers to order in their Halloween stock and think about the in-store theatre and POS that can be used to drive sales during this key opportunity.

Welcome to Joyville

This September Kraft Foods will introduce the Irish public to Joyville, the magical place where Cadbury Dairy Milk is made. Joyville started with one man and his dream to bring people joy by making the most delicious chocolate they had ever tasted; it is a place where joy creates chocolate and chocolate creates joy and it’s in every bar of Cadbury Dairy Milk. With a EUR*1.5m marketing campaign designed to connect consumers to Joyville through TV, radio, cinema, outdoor, PR, experiential and digital activities, the number one confectionery brand in Ireland (Source: AC Nielsen YTD M/E June 2012) will also support the campaign with a full suite of engaging POS bringing the magic of Joyville to life in-store and helping drive incremental sales. 2012 has seen growth in the chocolate market driven by Kraft Foods with the company outgrowing the market both in value (+160bps) and volume (+330bps) (Source: ACNielsen YTD M/E June 2012).

Sour Patch Kids is the biggest selling sour sweet in the US with annual sales in excess of $100m

US hit destined for sugar success

This month Kraft Foods will introduce an exciting new product under the Maynards brand which the company says is destined to make a real impact in the sugar market which is worth an estimated EUR*48.8m (Source: AC Nielsen YTD M/E June 2012). Sour Patch Kids was originally introduced in the US during the 1970s and has since gone on to become the biggest selling sour sweet with annual sales in excess of $100m. The brand has amassed over 3 million Facebook followers and is a favourite of many US celebrities including Justin Bieber, Method Man, Myley Cyrus and more besides. The product launch will be supported by a large scale marketing campaign primarily focused on 18 – 24 year olds and including outdoor, cinema, online, PR, sampling and in-store activity. A large scale in-store consumer promotion offering the trip of a lifetime to LA for the world premiere of The Twilight Saga: Breaking Dawn 2 will also be heavily supported through outdoor, online and radio driving footfall in-store.

Spookily good Halloween delights

This Halloween Kraft Foods has an ever increasing range of products perfect for gaining incremental confectionery sales. With the introduction of new novelty products such as Cadbury Crunchy Spiders and extending existing formats such as Screme Eggs, Kraft Foods aims to attract new shoppers into the occasion, injecting a bit of fun whilst doing so.

The Screme Egg was the number one selling Halloween SKU last year

Following the success of Screme Egg last year when it was the number one selling Halloween SKU (Source: Nielsen, Volume and Value Sales, we 03.09.11-05.11.11) and the consumer’s number one choice, Kraft Foods will introduce Screme Egg Minis this year. Coming in a 150g sharing format, this will not only give existing Screme Egg consumers another occasion in which they can enjoy Screme Egg but it will also attract new shoppers to the brand, particularly mums with younger kids who are the key buyers at Halloween.

Increasing in size to a 150g sharing bag, the Cadbury Dead Heads with their milk chocolate heads filled with “blood red caramel” are sure to build on their launch and make a real impact in 2012. The product offers consumers an element of fun and Kraft Foods believes it is set to be a big hit in the sharing category. A new introduction in 2012 will be Cadbury Crunchy Spiders complete with creepy crawly legs and green crunchy bits.

With an extensive range of treatsize and sharing bags already on offer, Kraft Foods will introduce a new treatsize variety tub ideal for trick or treaters. The tub complements Kraft Foods’ existing range which also includes the ever popular Cauldron Mix and Spooky Treats from The Natural Confectionery Company.

***BOX-OFF***

How to maximise Halloween sales…

With Sabrina O’Leary, category manager chocolate, Kraft Foods

Halloween is the third largest season outside of Christmas and Easter for confectionery. €32.4m of confectionery is sold in the four weeks run up to Halloween. Kraft Foods is the market leader with a market share of 40% *(Source: Nielsen extended scantrack 4 w/e Oct 30 2011).

Shoppers purchase confectionery for Halloween parties and also to give to the ‘trick or treaters’ that call to their doors on Halloween night. Treatsize confectionery remains the dominant format but sugar bags and impulse formats have grown in the last number of years.

This Halloween, Kraft Foods has an ever increasing range of exciting products perfect for gaining incremental confectionery sales. With the introduction of new novelty products such as Cadbury Crunchy Spiders and extending existing formats such as Screme Eggs, Kraft Foods aims to attract new shoppers into the occasion, injecting a bit of fun whilst doing so.

Top tips for retailers:

• Create a Halloween zone in a high traffic flow location highlighting the occasion

• Use ‘theatre’ to bring the zone to life e.g. Halloween visuals and pumpkins

• Stock a number of different confectionery formats to appeal to all shoppers

• Hotspot impulse Halloween confectionery at the counter to drive incremental sales

Sharing bags of good news

In recent years Cadbury has continued to drive growth in the share bags category through innovative NPD which is developed through listening to what consumers want and by targeting new occasions based on real consumer needs. This year alone Kraft Foods’ value share of chocolate bags has increased by 12.3% (Source: Nielsen Market track 29 April 2012).

The latest additions to this ever growing range are Cadbury Choc full of Popcorn and Cadbury Choc full of Pretzels. Both products were developed after extensive consumer research and taste testing which indicated that consumers wanted a lighter, savoury offering with a unique taste; they also fit extremely well with evening entertainment and performed strongly when tested with families.

As well as having a permanent display in the share bags section, the special hods for the bags would be ideally placed in high traffic areas adjacent to any family time occasions like DVDs or soft drinks. The launch will be supported by press, digital, selected tastings, PR and a comprehensive support package for trade throughout the year.

A new limited edition Mars Caramel Bar doesn’t contain the original bar’s layer of nougat

Caramel fuels category growth

Mars has added to its confectionery stable in Ireland with the launch of a limited edition Mars Caramel bar. As the name suggests, Mars Caramel does not contain the original Mars bar’s classic layer of nougat. It is 100% chewy buttery caramel coated in thick Mars Chocolate.

Through the launch, Mars is tapping into the strong market for caramel confectionery products. Caramel is the second biggest variant after milk chocolate in Ireland and the market for caramel has grown every year over the past five years*.

Launching a limited edition product represents a huge opportunity for retailers, says Mars. Consumers are always excited by novelty chocolate creations, particularly from their favourite brands. Limited edition products that tap into growing consumer preference for new flavours and varieties, like Mars Caramel, appeal to both new and existing customers and fuel category growth.

The launch will be supported by a heavyweight outdoor and online campaign that will drive consumers in-store to try the new variant.

The product, which already had success in the US, Canada and Australia, will be available from September as a limited edition.

*(Source: Nielsen Markettrack EDC MAT data to June 2012).

A whole lotto love

Butlers Chocolates has been selected to partner with the National Lottery’s Hampers, Sweets and Treats scratch card game, launching in October.

This year, Butlers developed a new bespoke chocolate assortment exclusively for the National Lottery. The 205g Ballotin, which is the chocolate prize in the game, will feature a collection of 20 alcohol-free truffles and pralines in milk, dark and white chocolate, giftwrapped in white Butlers paper, with a festive red ribbon and swing tag.

The chocolate selection comprises 10 different chocolates, two of each and includes; Almond Praline, Vanille, Dark Chocolate, Truffle and Honeycomb Crisp.

The Butlers 205g Ballotin will be distributed by Richmond Marketing (call 6233222 or email sales@richmondmarketing.com for more details or to place an order). Butlers believes this is a strong 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 to stock up on this Irish produced line in plenty of time to make the most of the season ahead.

Robert Roberts has introduced a new mint version of Lemon’s Iced Caramels

A fresh arrival

This September, the popular Lemon’s Iced Caramel range gets a new addition to the family – a smooth mint caramel with a crisp mint flavoured sugar coating. 100% Irish made in Newbridge, Co. Kildare and using a unique recipe dating back to 1926, Iced Caramels have been enjoyed by successive generations of Irish people for decades. It takes two days, using a secret recipe to create these confections and to date, the recipe has not been replicated anywhere else in the world. The Lemon’s brand which itself dates back to 1842 is owned and distributed by Robert Roberts Ltd. from its manufacturing and distribution hub at Broomhill Road, Tallaght. In keeping with the return to all things Irish and retro, Lemon’s is also introducing a range of old style 2kg retro jars this month featuring Original Iced Caramels and the new Mint Iced Caramels along with Lemon’s Chocolate Macaroons and Lemon’s Traditional Fudge.

Celebrating 75 years in style

2012 marks the 75^th anniversary of the Wilton Candy brand – a 100% Irish (owned and produced) family favourite. Wilton Candy is one of Ireland’s most beloved retro confectionary brands with a heritage stretching back to 1937. To celebrate its 75^th year, this old favourite has been given a completely new look with a packaging and brand refresh across the range. Incorporating the distinctive umbrella logo, the rebrand has both managed to maintain the elements of charm and nostalgia associated with the product while at the same time, giving it a more modern look and feel. The quintessential Wilton product, the Macaroon Chocolate bar will evoke many childhood memories along with the equally popular Klipso and Mint Crisp lines. This September to celebrate the birthday, Wilton Candy is introducing two new products to the range: a family size treatsize pack of 15 mini macaroon bars (12g each) at a RRP of €2.99 and a three pack of standard macaroon bars (22g) for a great value €1 price point which is flashed on pack.

Peanut Butter Chunky emerged as the overall winner and was launched as a permanent variant in April of the Kitkat’s ‘Choose A Chunky Champion’ promotion

Innovation delivers results

While the confectionery market remains challenging with total market value down -1%*, Nestlé Confectionery has continued to maintain its market share at 16.3%*. This has been achieved through a focus on brand renovation and new product innovation, together with a continuous programme of engaging consumer promotions.

Kit Kat’s ‘Choose A Chunky Champion’ promotion saw the launch of four limited edition flavours – Peanut Butter, Double Choc, White Choc and Orange. Consumers were then given the power to decide which of the flavours would emerge as the ultimate champion and join the Kit Kat portfolio. Supported by an extensive media campaign, the promotion caught the imagination of consumers and retailers alike. So much so, that Nestlé Confectionery had trouble keeping up with demand. Peanut Butter Chunky emerged as the overall winner and was launched as a permanent variant in April and has contributed to Kit Kat’s share growth within impulse chocolate.

Aero renovated its core bar format earlier in the year, introducing a new design making for an easier more chocolatey melt. This year also saw the launch of an orange chocolate version of Aero’s signature bubbly chocolate and is now available in standard, giant block and a sharing bag format. The choice on Aero biscuits increased further with the launch of mint and orange chocolate variants.

The innovation continued as Rowntree’s, the number one impulse sugar brand, launched 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 flavours – blackcurrant, cherry, orange and lemon-lime.

Last month saw the launch of a fun range of smaller pocket money treats from Nestlé Confectionery’s best-loved family brands – Smarties, Rowntree’s, Milkybar and Animal Bar.

The range of fun products is ideal for children aged four to 11 years and is already proving popular for those looking for permissible treats. Like the rest of the Nestlé Confectionery range, these smaller treats contain no artificial colours, flavours or preservatives.

Nestlé is the first confectionery manufacturer to use GPS technology to find winners in a promotion

The Yorkie brand returned to our TV screens this year with a new campaign to coincide with it’s on pack instant win ‘Yorkie – Win a free tank of fuel’ promotion. This promotion had great appeal amongst young male consumers and following its launch the brand has seen strong sales growth. It has since moved into the number two position in terms of ‘big eat’ hunger formats within impulse chocolate*.

On-pack instant win promotions were featured across many of Nestlé Confectionery’s range in 2012. The Rowntree’s ‘Red Ones’ promotion offered consumers the chance to win €12,000 by finding all red sweets in their pack. In fact, Rowntree’s Red Ones was the first sugar confectionery augmented reality promotion to be marketed on pack. Created using Blippar’s state of the art technology, consumers were able to use the augmented reality to enter the prize draw.

Next month, the excitement will continue with the launch of ‘We will find you’ as Nestlé Confectionery utilises the latest technology to launch an innovative new promotion across four of its best-selling impulse chocolate bars. From 3 September, Kit Kat 4 Finger, Kit Kat Chunky, Aero Mint and Yorkie Mint will feature in the promotion that uses GPS technology to find the winners. Consumers just need to locate a winning bar, activate the GPS device and within 24 hours the ‘We will find you’ team will leap into action and find them with a EUR*12,000 cash prize. In addition there are further cash prizes to be won online. As is now standard across Nestlé Confectionery promotions, ‘We will find you’ will be supported by a heavyweight media campaign including TV, video on demand (VOD), radio, outdoor and digital advertising. The promotion, which Nestlé believes will drive an increased rate of sale will also be further supported through promotional links with Today FM and TV3.

Two favourite Nestlé Confectionery brands also had plenty to celebrate in 2012 with Smarties reaching its 75^th year milestone and After Eight celebrating its 50^th anniversary.

With Halloween and Christmas still to come, the company believes 2012 is already shaping up to be a very active year for Nestlé Confectionery.

*(Source: AC Nielsen Total Market – Year to Date period ending 15 July 2012)

Affordable luxury

Lily O’Brien’s ranks consistently within the top two to three premium confectionery brands in the market according to Nielsen (sales from multiples 2012) while it has maintained its position as the top performing Irish premium chocolate brand again in 2012, with 15% market share. Positioned as an affordable luxury Lily O’Brien’s range includes a wide variety of products for gifting, sharing and in-home treating – products which have been created specifically to address shifting consumer need-states. Lily O’Brien’s 190g Chocolate Collection is the company’s best-selling product for the past decade and is a must-stock item throughout the year and particularly during key confectionery seasons. Lily O’Brien’s is a proud member of Love Irish Food and is distributed nationwide through Tennant & Ruttle.

gum

Mints and gum

By concentrating on functional properties such as oral care benefits and maintaining consumer interest by launching new flavours and formats, manufacturers have managed to increase mint and gum sales despite shoppers cutting back on their discretionary spend

AT A GLANCE: MINTS AND GUM

In Western European countries (excluding the UK and Turkey), gum confectionery rose by 8% between 2005 and 2010
Wrigley’s Extra is the number one sugar free chewing gum in Ireland
Extra launched two new SKUs in 2012, Extra Strawberry and Extra Ice White Freshmint.
Wrigley’s Extra’s has achieved 14% sales growth with ExtraPeppermint, Spearmint and Cool Breeze ranked within the top three selling gum SKUs*
The Extra Ice range has achieved sales growth of 48%*

*(Source: YTD Nielsen MT w/e 17.07.12)

Gum and mints continue to be innovative in terms of NPD, which has helped them maintain and grow sales despite the recession. Innovations have been focused on packaging, bolder and more exciting flavours, as well as functional benefits that have long been a trademark of the gum category in particular, such as promoting oral care when on-the-move.

A recent Mintel report entitled ‘Sugar and Gum Confectionery – Europe – October 2011’ found that in Western European countries (excluding the UK and Turkey) gum confectionery rose by 8% during the period from 2005-2010. Mintel also reported that while the impact of the recession is still felt; the sugar and gum confectionery market seems largely recession proof, owing to its image as a cheap indulgence for comfort in hard economic times.

Delivering Extra profits

The Extra brand which is supported by the Irish Dental Association accreditation, has launched Extra Ice White Freshmint

Wrigley’s most popular brand, Extra, retains pole position as the number one sugar free chewing gum in Ireland. Extra has performed well in the past year thanks to a strong innovation pipeline and a thorough customer-focused strategy.

The full Extra range plays a leading role in Wrigley’s ongoing ‘Eat, Drink, Chew’ marketing campaign, which includes TV, outdoor and heavyweight in-store support. The campaign encourages consumers to chew Extra gum after drinking and eating occasions as a convenient and enjoyable way to keep teeth clean.

Supported by the Irish Dental Association accreditation and with proven dental health benefits, Extra launched two new SKUs in 2012, Extra Strawberry and Extra Ice White Freshmint. Aligned to the ‘Eat, Drink, Chew’ strategy these new flavours aim to attract new, younger consumers to the gum category and enable retailers to drive incremental sales.

Unsurprisingly Extra’s strong performance sees it in 14% sales growth with ExtraPeppermint, Spearmint and Cool Breeze ranked within the top three selling gum SKUs (Source: YTD Nielsen MT w/e 17.07.12). Also in phenomenal growth of 48% the Extra Ice range continues to support a positive category performance driven by Extra Ice White products which help to remove stains and maintain teeth’s natural whiteness (Source: YTD Nielsen MT w/e 17.07.12). Given the success of Extra’s performance along with the recent launches, Wrigley’s states retailers can expect to see further exciting innovation in 2013.

Gum purchases at till point are highly impulsive; therefore, it is important the Wrigley display is positioned prominently at the till point to optimise sales and profits. Wrigley sales consultants are solely focused on offering retailers new display solutions, installing till point displays as well as bespoke point of sale to ensure impulse products stand out. Retailers can arrange a visit from their local Wrigley representative by calling 01 435 3200.

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