CHOCOLATE UPDATE: LEONIDAS
Leonidas: Rethinking store adjacencies means confectionery and others prosper
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In a climate where footfall, in-store penetration and spend-per-head remains under pressure, confectionery continues to fly its flag as a cross-category sales driver. However, DF&TR operators would do well to re-think space allocation for certain product segments, while respecting the ones that champion profit margin. Leonidas Global Travel Retail Manager Nelly Sannwald talks to Luke Barras-Hill.
T
o begin, how did the Leonidas travel retail business perform in full-
year 2018? We saw double-digit growth across all the main regions – Europe, the Middle East and Asia, which has been good. We are not currently in the Americas, so that is still on our to-do list in the next 12 months.
Will you look to enter the Americas directly or via distribution partnerships? I guess it will be a mix of both. There are certain locations where it makes sense to be direct and where we need a distributor. The Americas – not only for travel retail but also for our domestic development – is one of the five key growth pillars of our international expansion plan. At the moment we are trying to
support the domestic push with travel retail and vice- versa. We have also reinforced the team for the Asian domestic business to complement the efforts. We are really trying to grow both
channels. We’ve launched the ‘For You’ collection, which is impulse gifting and a segment we haven’t really covered so far. This fits quite well when operators expand their queueing systems and incorporate quite well with seasonal podiums for Valentine’s Day or Mother’s Day. In the pipeline, we are revamping
We’ve expanded the colour coding
and added a Belgium flag on the front of the pack to emphasise the origin of Leonidas. Consumers normally associate high-quality chocolate when they hear the origin is Belgium.
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the design of our tablet range (100g) with a bit more focus on impulse, which is growing quite well at the lower price points as well. The objective of this is to emphasise
and communicate more to the shopper; we’ve done some research and feedback shows the consumer would like to see easier identification of the different flavours.
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Talk to TRBusiness about Asia and how you are developing there? Asia has been quite exciting for us lately. We did a high-profile promotion in April for the first time in Hong Kong Airport at all the main stores and at Singapore Changi Airport Terminal 3 where we did a combination of Easter and core heritage collections. This supports further growth we
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see in both locations. It is the first time Heinemann (Hong Kong) did an Easter thematic and interestingly it is a season that is growing [in popularity] in Asia. We also play with Chinese New
Year and try to activate sampling or improve promotions for the Golden Week period. I would say things
The low-cost carrier (LCC) market in Asia continues to boom but is fragmented, with recent data from NPD Travel Retail revealing 26 airlines account for 80% of LCC traffic versus eight airlines in Europe. Is there an opportunity for LCC passenger confectionery purchases? There is enormous potential. The future will be more LCC carriers. We
“We’ve done some research and feedback shows the consumer would like to see easier identification of the different flavours.”
Nelly Sannwald, Global Travel Retail Manager, Leonidas
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like Singles Day, Cyber Monday or Black Friday are not something we are exploring at the moment. All the events surrounding just one day are always very difficult.
Above: A Leonidas Spring/Summer Collection HPP will run at Brussels Zaventem International Airport Terminal A in July.
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