SUGAR CONFECTIONERY: MARS ITR
at the checkout and we would expect that to be much higher. We did some research with Generation in 2014 where the express need by shoppers was 45% wanted something ‘For me’, 35% wanted something ‘For us’, and 20% wanted something to ‘Gift’. When we looked at the actual
sales, just 6% was ‘For me’. There is the opportunity to really leverage category knowledge to drive sales through the till. The other thing the research told us, is of the people going through airport security, about 9% buy total confectionery today, so our strategy is about how do you get the other 91% to buy.
How much emphasis is Mars ITR placing on the sugar segment? It is a huge strategic pillar for us. It is critical that we deliver a total confectionery offer and based on research we see that in the industry and from our own sales, we are currently under trading on confections and gum. Through our work on the checkout
led through Extra and our work with Skittles, we are trying to readdress that balance. Fundamentally, our belief is that while travel retail is an incredibly exciting environment where you can bring brands to life in an amazing way, it is the same people outside the airport, and if they are used to buying gum and confections, they want it in the airport as well. To grow the total confectionery category, you have to readdress that balance.
What purchases areas (gifting, shared, planned or impulse) are you prioritising at the moment?
‘For me’ is the core on gum – fundamentally it is an impulse purchase.
Do you think the idea that sugar confectionery as a pure till point purchase is an outdated idea given the role sugar and gum can play instore? I think strong brands can play a role across need states, but it is important to recognise their core role and you have to get that core role right first. For gum, the core role is ‘For me’,
but then of course you can then have planned purchases as people like to stock up. For fruity confections, the core role is in ‘Sharing’ as there are great brands to share – but maybe you can gift it. So, get your core right and go. Where would I start first? Gum and confections on the checkout. But I think there is a big opportunity in this industry to build a confections category and for it to open up certain areas of the store. Often, it is just in there with the chocolate.
How open are your retail partners when it comes to experimentation given that the overall share of sugar confectionery and gum is low? The retailers who have chosen to partner, particularly at the checkout, have been rewarded. The Extra brand is in strong double-digit growth so far this year and the majority of that is coming from retailers who have chosen to partner with us at checkout. The reality is there is an overall
shift in the travel retail category. If you look back 50 years from when
“In travel retail, we see just 6% of sales go through the ‘For me’ moment at the checkout and we would expect that to be much higher.”
Matt Boulter, Mars ITR
it was an experience for the wealthy elite, it is now something everybody can enjoy. As a result, we need to have an assortment in the travel retail environment that everyone can enjoy. I think gum and confections plays that role.
Last year, you announced a plan to target an additional $1bn in sales in the category by 2020. Are you on target to achieve that vision? The strategy still is our ‘Power of a Smile’ category vision. It has three key pillars: Range, Display and Activation. In travel retail, 90% of the sales come from just 11% of the SKUs, 75% of all confectionery purchases are impulsive so you have to have displays to trigger it, and only 52% of travellers go into the store. For an impulse category, you have to get out of the store. We are very pleased to share that last year we took one point of share in the marketplace, which means that on a total confectionery basis, Mars ITR is now the number one total confectionery supplier.
Finally, if you had one wish for sugar confectionery to take the category to the next level, what would it be? The one where we have to start is the checkout and unlocking confectionery in general. «
Products from the Wrigley’s Extra gum range. JUNE 2017 TRBUSINESS 67
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