CHOCOLATE UPDATE
Retail (ITR) Sales Director Christophe Bouyé praises a good performance for the company last year. “The main challenge is to convert
more travellers. We’ve directed our strategy towards that and continue in 2019/2020. The fundamental belief is based on research we’ve done on travellers’ needs.” According to Mars ITR, reasons
to purchase orbit around four areas – Connect (sharing), Reward (self-treat), Recharge (gum) and Celebrate (gifting). While it takes a total portfolio
approach to retailing with names such as Snickers, Maltesers, Skittles and M&M’s, the last will now play a particular role in driving awareness through a new campaign entitled ‘Full Throttle’. This is playing out through rich media and product innovation. Asked about Asia Pacific’s negative
showing in confectionery and fine foods last year, Bouyé says: “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. It has to provide the right value, pack and brand in the right location.” While recognising the negative
showing in the region, Lindt & Sprüngli says the business is ticking along nicely. “The theory, from research, is
that Chinese along with other Asian consumers appreciate high-quality products,” observes Peter Zehnder,
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Head of Global Duty Free, Lindt & Sprüngli. Elsewhere, a soft start in Latin
America due to the macroeconomic rollercoaster in some countries has been met with solid performances from North America and Europe, while the Middle East is delivering steady returns despite the political challenges. “[Overall] the market has
improved – it had a tough time for several years but is now growing,” notes Zehnder. “Not only chocolate but
confectionery is a real basket driver. The conversion rates are excellent and second highest in the whole of duty free. “Confectionery also drives the
average shopping basket as the category itself is a more affordable one. This is why everyone is trying to ensure they have products which increase stopping power. “Low penetration rates is the
biggest issue we face and the opportunity to get passengers to stop and buy products is huge.”
Nestlé targets ‘10 in 10’ Debate surrounding confectionery’s ability to lift travellers’ ‘stopping power’ and drive total sales is not new – Mondelēz WTR’s ‘Delighting Travelers’ vision to unlock the category’s potential being the most obvious example in recent years. Now, Nestlé International Travel
Mondelēz World Travel Retail taps biscuit segment
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Retail (NITR) is picking up the category development mantle. As reported during the ACI Europe Airport Commercial & Retail
close accordance with the company’s SOUL (Stories, Occasions, Unique, Local) framework to carve out an entire new growth curve for confectionery. This is the second time NITR has
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A series of 360-degree campaigns for the travel retail exclusive Cadbury Biscuits collection is levering appeal for the biscuit segment. Cadbury brand owner Mondelēz
www.trbusiness.com/subscriptions Biscuit Bakery activation at Stansted. JUNE 2019
World Travel Retail says an activation with Dufry Group at London Stansted Airport last month under the Biscuit Bakery concept feeds into the confectionery giant’s roadmap to establish the category in travel retail and generate incremental revenue. Travellers were invited to compete in a Cadbury versus Oreo air hockey game
A Ritter Sport promotion with Heinemann Duty Free at Stavanger Airport.
“Low penetration rates is the biggest issue we face and the opportunity to get passengers to stop and buy products is huge.”
Peter Zehnder,
Head of Global Duty Free, Lindt & Sprüngli
Conference & Exhibition in Reykjavík earlier this year, NITR has revealed a plan to double the confectionery and fine foods category to $10bn in the next decade. The so-called ‘10 in 10’ opportunity
stems from major research that Nestlé claims can benefit the entire ecosystem – from brand owners to retailers and airports. The strategy is being carried out in
on a digital screen (single and multi- player options available) to celebrate the launch of the Cadbury Biscuits collection, with the winner able to share a ‘selfie’ with friends and family using the digital photo box. Further activations are planned at
London Heathrow Airport this month and at London Luton Airport in August, followed by other locations worldwide. The Cadbury Biscuits collection
includes three pouches: Nibbly Fingers (320g), Break Bar pouch (364g) and the Roundie pouch (360g).
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