Unlock the full potential... Unlock the full potential...
CHOCOLATE UPDATE
Confectionery status quo shaken up as market targets higher sales
Despite complementing baskets and average transaction values, confectionery continues to battle for more prominent space allocation. Luke Barras-Hill explores the category’s current state of play and asks suppliers for their views on a strategy that aims to accelerate fiscal returns to the benefit of the entire industry.
T
ravel retail confectionery and fine foods has certainly experienced an upturn in its
fortunes in recent years. However, the latest preliminary figures from Generation Research presented by TFWA shows Asia Pacific growth down 0.2% to $1.2bn in 2018. If these figures are anything to go by, there remains work to do. From a global perspective,
from retailers – many of whom appear to be taking tactical stances to visibility, cross-selling and price- pointing – lack of ingenuity in a bid to raise average ticket values does not appear to be the problem. With big differences in the
confectionery footfall has increased by one percentage point to 13% in the four years to 2019, according to insight shared by m1nd-set with TRBusiness. Conversely, however, conversion
has dropped 11 percentage points to 60% during the same period, with declines in the frequency of planned visits and purchases (see p15). As reported in the January edition,
debate continues to rage over premium versus volume and whether the category is overpromoted. While many suppliers spoken to at the time believe promotions to be important, there was also a strong view in some instances towards more tailored approaches to offset the impact of unnecessary price discounting and brand dilution. Judging by the comments received
JUNE 2019
This content is for subscribers only. To receive a full digital copy of the June issue,
plus 12 monthly print editions and the critically acclaimed TRBusiness Top 10 International Operators Report, please visit
plus 12 monthly print editions and the critically acclaimed TRBusiness Top 10 International Operators Report, please visit
‘Stopping power’ Notwithstanding these challenges, suppliers are reporting continued success in travel retail and appear confident in the future. “We had a very good 2018,
www.trbusiness.com/subscriptions
with 20% growth in volume and turnover,” comments Jan Pasold, Managing Director Global Travel Retail, Ritter Sport. “The main growth region for us
is Asia. The key highlight was that Ritter has a dedicated team for travel retail now that includes marketing and trade marketing, besides sales.” Pasold identifies Ritter’s
“If you look at the data it is passengers going up and less spend and this is the conversion challenge we are facing in the category. The main reason for that is the confectionery offer on the shop floor is probably not relevant enough yet.”
Christophe Bouyé, Sales Director, Mars Wrigley Confectionery International Travel Retail
TRBUSINESS 59
This content is for subscribers only. To receive a full digital copy of the June issue,
www.trbusiness.com/subscriptions
passenger mix worldwide, it means striking the correct balance in the assortment is not always an easy task. This is not to mention the wave of challenges that confectionery faces, including (but not limited to) nutritional labelling, hand baggage restrictions, reduced sugar/salt content and domestic pricing cannibalisation.
for personalised units, which helps us to increase brand presence and visibility, resulting in bigger brand awareness.” Similarly, Mars Wrigley Confectionery International Travel
Asia region is getting bigger; we are now listed with Lotte Duty Free and have strong growth with King Power in Thailand as well as other key locations such as Changi Airport,” he continues. “We also get more opportunities
partnership with Heinemann Duty Free at Hong Kong Airport as an important highlight. “Furthermore, our footprint in the
Above: Confectionery is prominent at the 4,000sq m Travel Retail Norway arrivals duty free shop at Oslo Gardermoen Airport.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74
