SUGAR CONFECTIONERY: OVERVIEW Optimism to grow abounds in sugar retail


Occupying a smaller share of total confectionery, the sugar and gum segment nevertheless acts as an important set of checks and balances in measuring category engagement, as Luke Barras-Hill reports.


I


t’s an interesting time for sugar and gum confectionery, since the global confectionery category,


like other segments, had to endure strong economic headwinds in 2016. According to information shared


by a confectionery source TRBusiness understands that the overall market recorded a decline of -1% on 2015 to reach sales of $3.7bn. However, sugar sales posted an


increase of +1.1%, accounting for a 13.6% share of the category. On that basis, TRBusiness can estimate sales from sugar at approximately $502.7m for full year 2016. According to research from m1nd-


set, 37.3% of travellers opt for a sugar confection as it is exclusive, different, or something they would not normally encounter. When it comes to purchasing,


globally 55% of shoppers pick sugar goods for self-consumption, 31% as a gift to share and 14% as a gift or present only [breakdown differs by region, for example 63% of Latin American travellers preferred items for self- consumption – Ed]. On a price perception basis, 50%


of Central American & Caribbean travellers considered assortments value for money, versus South America (27.7%), the Middle East (25%), Europe (23.4%) and North America (17.7%). Interestingly, a total of 61.4% of travellers did not consider buying promotions. For its part, Ferrero Travel


Market tells TRBusiness that it has undertaken a travel retail sugar segmentation study with partner m1nd-set, revealing a much stronger preference for self-consumption and impulse products when compared to chocolate. “Ferrero aims to reinforce its focus


on the whole sugar category; the first step in this growth strategy has been to understand the peculiarities of this channel in terms of purchase habits, consumption and need states,” says Sebastien Deflandre,


JUNE 2017


Marketing Manager. “With regards to own


consumption, we acknowledge that at cash till point there are still major opportunities to tackle, whereas in the gifting and sharing segment we can claim a strong established presence driven by our iconic sku Tic Tac Lilliput.” According to insight from its


segmentation study shared with TRBusiness, 60% of gum and candy purchases are made at-shelf. However, contrary to the view


that sugar remains predominantly a till-point purchase, there is still work to do.


Major opportunity zone “We do see check out as still a low focus area where major growth opportunities can be tackled,” states Deflandre. “In order to reinforce Ferrero’s


presence in this segment, we are launching a multipack format, featuring a strong visual presence that will be available from 2018.” Meanwhile, Haribo says it is in


growth mode this year as it aims to build on growing demand across channels such as ferries and border shops. “Sharing is a very important


segment for Haribo and the whole sugar confectionery category,” says


Elisa Fontana, Travel Retail Manager at Haribo representative Rigo Trading. “We are now extending the


sharing range to other regions than Europe, such as in Latin America, with products such as our re-sealable sharing pouches [available] in a variety of assortments.” Fontana explains that although


sugar confectionery is gaining shelf space and presence in-store, sugar allocation is still under represented in terms of range development and activations. Nonetheless, Haribo says


its retail partners are open to experimentation to improve footfall in the core confectionery aisles. “For instance, Gebr. Heinemann


offers its Heinemann Choice stages for exclusive high profile promotions aimed at creating unique and engaging brand activations,” Fontana continues. “Haribo will promote in the


“We do see check out as still a low focus area where major growth opportunities can be tackled.”


Sebastien Deflandre, Marketing Manager, Ferrero Travel Market


TRBUSINESS 59


Top: Having the correct in- store visibility for sugar is important, says PVM.


Above: Salim Mohammed, Owner, Crossings International.


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