SUGAR CONFECTIONERY: OVERVIEW


purchases have the potential to be developed further, with the firm finalising a new till point merchandising unit for its retailing partners that is set to roll out in the coming months. Impulse purchases remains one of


the confectioner’s main strengths, alongside gifting items for children and also young adults. Supporting this drive is investment


Paul Hunnisett, Global Head of Category, Liquor, Tobacco and Confectionery (LTC), ARI.


challenging year for travel retail, but Q1 2017 has been positive for the company. “Stock management became a


main driver for retailers, but the trust is back and orders are coming in,” she says. When it comes to sugar’s share


of confectionery in travel retail, van Veen acknowledges that the split between sugar and chocolate in the domestic market is less extreme, therefore offering potential to grow the sugar business In travel retail. “Innovation is a main driver for


us – it’s not only about candy per se, but it’s about reusing the item given to you,” she says, citing the novelty effect of the brand’s Mentos Passport Kit as an example that places a strong emphasis on children’s gifting and activity-based confections. Van veen also says cash till point


in visibility at POS for sugar, as the battle with chocolate for space and size in confectionery toughens. “Having the right experience in


the shop is very important for the consumer and that is a trend we see going on right now.” Nestlé International Travel Retail


(NITR) on the other hand, does not see sugar as a major influencer in its total confectionery growth.


Big Nordic epicentre “For us, the Nordics plays a disproportionately larger part of the business than elsewhere. This is down to the cruise lines and the purchasing habits within the region itself,” comments Stewart Dryburgh, General Manager. “I think the broader challenge with


sugar by comparison with chocolate in terms of the absolute growth is the added value you can generate. “Chocolate provides


the


opportunity to work with specialist ingredients and chocolate as a material gives you more scope.”


Bahrain Duty Free unveils its new look line-up


One pertinent example of moves being made to increase exposure to sugar confectionery is at the ARI-managed operation of Bahrain Duty Free. Here, the retailer has been embarking


on a phased upgrade of its departures retail area. According to its latest results at the


time of writing, Bahrain Duty Free reported a net profit of $5.8m (+22%) in Q1 2017 year-on-year, and the final tweaks to a new confectionery offer seem to have come at just the right time. An upgraded food area went live in Q3


last year, with additional units installed in early 2017 applying the finishing touches. The revamped space measures 185sqm, backed by an assembly of


JUNE 2017


Bahrain Duty Free’s new confectionery departures zone featuring high profile promotions, widened walkways, and plenty of brands.


classy features. These include new high profile promotions with digital signage located at the department’s entrance, new furniture for all brands, and widened walkways aimed at improving


passenger circulation. Supporting the new ergonomic layout are new brands, including Goldkenn, Valrhona and Neuhaus, and range extensions from Lindt and Godiva. Meanwhile, new counters from nuts and kernels retailer Alrifai and fine food purveyor Bateel complete the look with personalised POS units. The new confectionery zone,


including the premium area, TRBusiness learns, is performing fairly well. “We have noted a slight growth in


comparison to 2016; brands with a large appeal to passengers travelling home to the Asia sub-continent are out performing others,” comments Hunnisett.


TRBUSINESS 63


“With arrivals being a larger market, it’s about increasing the transaction size. About 30% to 35% of bills contain confectionery”


Anjan Kumar, Category Manager, DFS India


“Do we see a role for sugar? Yes.


Will it be one of the drivers of core confectionery? I do not believe so.” In the Middle East, Aer Rianta


International (ARI) tells TRBusiness that sugar delivered healthy growth in 2016 across its global locations. In fact, the segment tracked four percentage points ahead of growth in chocolate confectionery. “The main drivers in sugar brands


are Chiko, which is very popular in the Middle East and growing at +12%,” says Paul Hunnisett, Global Head of Category, Liquor, Tobacco and Confectionery (LTC), ARI. “Perfetti is growing at +28.6%


and Haribo at 52.5%, but off a much lower base.” Hunnisett says the key airport


channel is demonstrating growth for the sugar category. “Sales have been boosted by


the success of our Candy Cloud confectionery concept, which is aimed at both children, their parents and business travellers. Continued innovation through


travel retail exclusives, Hunnisett continues, is key to unlocking further growth in sugar confectionery. «


Above: Femke van Veen, Brand Manager Global Travel Retail, PVM.


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