SUGAR CONFECTIONERY: PERFETTI VAN MELLE
Right: PVM places a strong emphasis on displays to increase visibility and attract customers.
Below: The Chupa Chups Cup Cake is seen as an ideal gift, which can be shared with family and friends.
indicates Blauuw. “Our assortment is really strong,
but to gain sales and really grow, we feel like we should optimise distribution before focusing on new products.” Offering her own take on the
DF&TR sugar confectionery segment, which accounts for 13% of the entire confectionery category in the channel, she comments: “Sugar confectionery is growing, but we feel like it could be taken even more seriously. “In the domestic market, for
example, sugar confectionery has a 45% share of the whole confectionery category. There is definitely room to grow and we think a lot of this has to do with shelf space. “Unfortunately, we don’t get
as much shelf space as chocolate confectionery, which has an 87% share of the total confectionery category in duty free and travel retail.” In addition to striving for more
space, PVM is keeping in mind its target group and trying to ensure more millennials make purchases in addition to children. “Millennials are a really big target
group and starting to travel alone,” says Blaauw.
Labelling headaches Creating an element of fun on the shop floor could also boost the sugar confectionery segment in DF&TR. “Fun elements
such as colourful products
and
displays are a good way of distinguishing the confectionery category, particularly
sugar,” says Van Veen. Maximising
“Visibility is important and great displays get people in the door of the store and enable us to attract customers.”
Femke van Veen, Brand Manager, Global Travel Retail, Perfetti Van Melle
56 TRBUSINESS the
potential of the cash-till point opportunity is also on the agenda for PVM. According to some industry observers, this remains undervalued and with 75% of cash-till purchase decisions made in-store, this point of sale is very impulse driven. Blaauw explains: “We think the
cash-till point opportunity can be even bigger. We already have a really good assortment for the cash point with our gum and Now Mints and are also working on some new introductions for the cash-till point which we will show in Cannes. “Sales at the cash till are doing
pretty well on the domestic market, but there is definitely opportunity to improve in duty free and travel retail.” Amid the various opportunities
for the sugar confectionery segment there are certain challenges that cannot be ignored. “The implementation of sugar tax in certain countries is proving a challenge as well as the fact we cannot market to children anymore,” explains Blaauw. With each category having their
own regulations, front-of-pack labelling is expected to become a significant obstacle, says Van Veen. “We have examined the issue
of front-of-pack labelling with our domestic team and believe we will require around 20 different front-of- pack logos to accommodate warning signs etc. Each country has their own regulations and adheres to them in a different way. If we are forced to
comply with all local regulations, there will be no space left for our own logo or anything like that.” Despite the various challenges,
the importance of the duty free and travel retail channel must not be underestimated. “We have a big growth target for
the coming year and our number one focus is distribution and gaining distribution with our ‘must have’ assortment,” says Blaauw. “The second objective, especially
next year, will be the cash till- point opportunity followed by new products to keep everyone interested in our brand.” Establishing and maintaining
strong partnerships with retailers will be key to its success, say Blaauw. “We try to provide retailers with
planograms whenever we can even if they don’t ask for them and strive to get our displays on the shop floor because they are very colourful and attract customers. “Displays allow us to sell products
which wouldn’t fit on the shelf otherwise, so they kind of have to purposes.” PVM also tries to train staff
whenever possible. “Staff interaction can certainly
have a positive effect, particularly in South America and Europe,” says Blaauw. “Around 60% or 70% of customers that interact with staff end up making a purchase based on that interaction, so if we train our staff well you can imagine the benefit.” «
JUNE 2019
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