SUGAR CONFECTIONERY: PERFETTI VAN MELLE


PVM reports double-digit Asian growth in 2018 despite declining category sales


Increasing distribution and maximising the potential of the cash till-point opportunity are Perfetti Van Melle’s main objectives as far as travel retail and duty free is concerned in 2019. Andrew Pentol learns more about the company’s strategy and the strong emphasis it places on visibility and display.


Right: The Chupa Chups Hello Kitty Markers are said to be perfectly suited to the APAC region.


Below right: The Lolipop Memphis Design limited-edition Mega Chup was unveiled at this year’s Summit of the Americas in Orlando.


T


he confectionery and fine food category may have experienced a sales decline


of 0.2% to $1.2bn in Asia Pacific last year (Source: Generation Research), but for Perfetti Van Melle (PVM) it was a case of onwards and upwards. In 2018, the company grew its


DF&TR business by 12% versus the previous year, maintaining its number one position within sugar confectionery, but crucially sales in Asia Pacific rose +11.5%. Reneé Blaauw, Trade Marketeer,


Global Travel Retail, PVM tells TRBusiness: “Everything has gone pretty well in Asia taking into account sugar and confectionery in general is actually declining.” For PVM in particular, increasing


distribution in China is an important objective. Blaauw explains: “We’re trying to get more distribution in China, but this is not where most of the growth is coming from. “Our distribution in China is


not great, so we’re working on optimising it. We definitely see a market for our products there as they are bright, colourful and fun. Asians tend to go for gifting and snacking, so I imagine they would probably be very popular. We just have to work on our distribution.”


Growth momentum Fresh off the back of an extremely positive 2018, where the majority of growth was from its core assortment,


“Everything has gone pretty well in Asia taking into account sugar and confectionery in general is actually declining.”


Reneé Blaauw, Trade Marketeer, Global Travel Retail, Perfetti Van Melle


54 TRBUSINESS


momentum has continued into 2019 during which time new products have been introduced. These include the Hello Kitty


Chupa Chups Markers, Chupa Chups CupCake and Lollipop Memphis Design limited-edition Mega Chup. The last was unveiled at this year’s Summit of the Americas in Orlando. “We have had a very good


start to the year,” says Blaauw. “There was always the


question of how things would pan out after such a successful 2018 but results until now have made excellent reading.” Ensuring optimum visibility of


its products in DF&TR is priority, according to Femke van Veen, Brand Manager, Global Travel Retail, PVM. “We have launched a trolley display for our must-have assortment, which are the 10 core products we are focusing on and the feedback has been positive. “Visibility is important and


great displays get people in the door of the store and enable us to attract customers.” The company is also working on the launch of a ferry display, which has actually been well received by airports as well. “It will also be available for airports, but


the main reason it was developed was to provide something a little more interesting for ferries and cruise lines,” says Blaauw. She adds:


“The plan was to produce the first ferry


displays at the beginning of June. Hopefully they will be in stores by the end of the summer.” On a more general basis,


PVM is working on specific DF&TR assortments before focusing on new products. “We are really focusing on our internal strategy, which revolves around our top 10 ‘must have’ items and increasing distribution,”


JUNE 2019


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