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CONFECTIONERY CONVERSATION Confectionery giants share strategy for 2021


In the tenth edition of this year’s Confectionery Conversation – a monthly column which shines a spotlight on the confectionery category, sponsored by Mars Wrigley International Travel Retail – Charlotte Turner reports on the important developments from confectionery giants, Nestlé and Mars as both held their own webinars in recent weeks.


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nder normal circumstances, around this time of year TRBusiness would be readying itself to attend


the TFWA World Exhibition, during which it would be tasked with splitting its time between numerous press briefings with confectionery suppliers. However, under the rather abnormal circumstances we all find ourselves in, two confectionery giants, Nestlé International Travel Retail (NITR) and Mars Wrigley International Travel Retail took the initiative to host their respective press briefings online this year in the form of webinars which TRBusiness was able to attend. First up, on 2 September, Mars


Wrigley International Travel Retail (ITR) spoke candidly about the challenge of simplifying its product range and prioritising best-selling brands to articulate clear messages that resonate with consumers, according to Luke Barras-Hill who was in attendance. During the online media briefing the


company presented its 2021 travel retail strategy, revealing that it has pared back its portfolio from more than 160 skus in 2019 to fewer than 100 today. By 2021, the plan is to further reduce that number to around 50 skus. The result will be a more powerful,


impactful range. However, rationalising the portfolio to date has been no easy feat, insisted Mars Wrigley ITR Global Category Director Raghav Rekhi in response to a question from TRBusiness posed during the webinar. “It’s a very difficult move for brands


when it comes to culling products and rationalising portfolios,” he explained. “The way we’ve been able to reconcile


taking those products out of our portfolio is to ask the question: what should we bring into our portfolio that might better fulfil the needs of travellers? “We felt if it was only a question


or strategy of taking out rather than bringing back into our portfolio, it would probably take away from our objectives of driving category growth and meeting travellers’ needs. “What we’ve done over the last


OCTOBER 2020


In the absence of physical trade events, companies have been hosting online press briefings.


“What we’ve done over the last six months while business has been difficult is accelerate the development of portfolio propositions to meet those


needs. The role of our retail partners is to also offer adequate visibility to brands that our regional or local jewels as opposed to brands that are global in nature.”


Raghav Rekhi, Global Category Director, Mars Wrigley ITR


six months while business has been difficult is accelerate the development of portfolio propositions to meet those needs. The role of our retail partners is


to also offer adequate visibility to brands that our regional or local jewels as opposed to brands that are global in nature.”


Nestlé in diversification strategy In response to a question in the Nestlé International Travel Retail (NITR) press briefing, which took place on 3 September, General Manager, Stewart Dryburgh


TRBUSINESS 13


also admitted that streamlining the NITR portfolio would inevitably be on the cards and that it would continue to focus on its pillar brands in travel retail. During the briefing Dryburgh said that the company’s decision to increase its presence in travel retail channels outside of airports three years ago had been a master strike in hindsight, as he admitted that Covid-19 has hit Nestlé’s travel retail business harder than any of the Swiss multinational’s other divisions. “We were under-indexing in other


channels,” Dryburgh told TRBusiness during a one-to-one interview following the briefing. “The business [outside of the airports] has been a source of relief and growth during this period that we are hoping will continue.” Towards the conclusion of the webinar,


NITR disclosed that Nescafé coffee and Illuma infant nutrition (milk powder), will enjoy heightened promotion and exposure in travel retail (including airports) this year and next in the company’s bid to diversify its business and appeal to more Chinese customers, in the case of Illuma; crucial given that the recovery of China’s domestic travel and tourism industries appears to be gathering pace. «


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