Ensuring the right products are in the right place, and highly visible to both adults and kids, is key to taking advantage of the current 4% overall growth in sugar confectionery.
Confectionery is most impulsive category in convenience, with 29% of shoppers picking up an item they weren’t intending on buying. That alone highlights how important it is for retailers to get their confectionery fixture right, get products in the faces of customers wherever they are in the shop, and get on top of the category trends that are driving sales. Confectionery customers are valuable too; him! research indicates that convenience shoppers spend an average of £6.61 per visit, while one in four will buy a soft drink along with confectionery, so there’s scope for increasing sales by cross promoting the two. Overall, the sugar confectionery category is in value growth (+4%) but volume is flat indicating customers are paying more or getting less for their money. The main confectionery fixture is where most sugar confectionery sales come from. In fact, more than 80% of sales coming from the main fixture, so this is the first place a retailer should focus on.
The fixture should be split by sector, so sugar confectionery products should be merchandised together, preferably with shelf talkers earmarking the best-selling brands. Dual siting In addition to getting that main fixture looking fantastic at all times, one key aspect of driving confectionery sales is dual sitings. According to Nestlé – home to the Rowntree’s range of sugar confectionery, display solutions such as clip on impulse units adjacent to magazines, can increase sales by up to 15% and placing a counter unit by the till can increase sales by up to 18%. Bev Seymour, Trade Marketing Manager, Cloetta UK brand owner of Chewits, says: “Confectionery is generally an impulse purchase and therefore it is vital that it is displayed correctly and is easily accessible to consumers.
Siting confectionery on the counter or next to popular items such as newspapers and magazines will draw attention to the selection. Additionally retailers trade successfully where they have dedicated kids fixtures and areas, maximising ‘pocket money’ sales. Arranging the fixture or area further by price allows children to understand which products they can afford. Retailers should also be aware of the height of the shelves and the overall fixture, so that children can shop it independently.” Temporary POS Retailers can also generate incremental sales by executing product launches and promotions in store with temporary POS. Placing a floorbin in a high traffic area, whilst using a price promotion, can increase sales by up to 450% while placing a counter unit at the till can increase sales by up to 18%.
Finally, window posters can create awareness with shoppers when used in conjunction with other POS materials The fact of the matter is that if a display is cluttered, or there is no secondary siting near the till point, there is no question that sales are lost. Ferrero has been working with its customers to help simplify the main pocket confectionery display, which have seen sales increase by up to 123%. Having the right range and display is absolutely essential if retailers are to maximise the sales opportunity around the mints category. Ferreo Trade Communications Manager Levi Boorer says: “We are continuously working with retailers to help them successfully execute in store displays and recently invested substantially in tailored specific POS. Eye catching units and counter tops are designed to help retailers maximise the highly impulsive nature of confectionery by raising visibility in-store.” Ferrero will continue to invest in its marketing with a view to bring more younger buyers into the wider mint segment of pocket confectionery which currently attracts older consumers. Earlier this year, Tic Tac expanded its range with the launch of an Apple Burst variant.
A significant 55% of tic tac value sales go through the impulse channel and so convenience stores are best placed to boost profits with the new launch. In fact, Tic Tac has proven itself to be a very useful product for convenience. It delivered overall growth of 7.3% last year and the launch of Apple Burst follows the strong performance of tic tac’s newest fruit flavours Cherry Passion and Strawberry Fields. These flavours achieved huge growth in the last two years and now account for 33% of total sales. Strawberry Fields delivered £3.9m in its first year, becoming the most successful NPD in pocket confectionery in 2012/2013. “The introduction of new variants is highly incremental, with the majority of shoppers only buying into their favourite flavour,” says Boorer. “For example, 49% of Strawberry Fields consumers, do not buy any other tic tac flavours, while 47% of Cherry Passion shoppers only buy Cherry Passion, so it’s crucial that retailers stock the full tic tac range of five flavours, in order to cater for all of their shoppers tastes.”
Not just for kids The main players in the sugar confectionery ‘chewy’ category are Skittles, Fruitella, Maoam and Chewits. In 2013 Chewits set about strengthening its position with a new products that its hopes will continue to drive growth and repeat sales. As a result Chewits are achieving 28% year-on-year growth, making it the fastest growing brand in the category and contributing 20% the incremental growth of the Chew category. Retailers once viewed sugar confectionery as strictly for kids – but the recession means it is increasingly a big-night in treat shared by whole families. Within this Fruit Chewy sweets are experiencing a strong 9% year-on-year growth with 88% of this growth driven by share bags, which representing over half of this category. As retailers know, Chewits have a strong and loyal following from both adults and children, and consistently achieve high repeat sales. Bev Seymour, Trade Marketing Manager for Chewits brand owner Cloetta UK puts part of this ability to appeal to adults and children down to nostalgia. She says: “Nostalgia remains an important emotional driver with older consumers.
They remember our adverts and are more likely to pick up a confectionery treat that they remember from their own childhood, either for themselves or for their children/grandchildren.” Value is important to older consumers and therefore they are more likely to buy multipacks or share bags to enjoy in the evenings at home. Children still spend the majority of their pocket money on sweets, but over the last few years they have had less pocket money to spend due to the recession.
Therefore pocket money price points remain a key priority to Chewits Strategy. Seymour says: “Consumers respond well to flavour and sensory confectionery, which means that our sour products – Chewits Xtreme Sour Apple and Tutti Frutti – are performing well and their growth is set to continue.” Last year Swizzels Matlow flashbacked its countline range to 10p to appeal to customers and the company recommends that products at this price should be nearer the bottom of the fixture, while key selling lines should be placed at eye level with the most expensive novelty lines on the top shelf. Swizzels Matlow also says that variety packs are driving the market, with growth of +17% in the kids sugar convenience sector followed by Gums & Jellies, which are +9%. “Increasingly consumers are saving money and opting for ‘a big night in’, sharing bags such as Loadsa Sweets and Loadsa Lollies are perfect for these occasions,” says a company spokesperson. “Swizzels Matlow has the top 10 variety packs with Bumper Bag being the number one seller followed by Lots of Lollies and Chew Crew.” Gums & Jellies in fact remains the largest category in the kid’s confectionery market with a share of 49%.
A recent launch has been Squashies which sees well-known brands such as Love Hearts, Drumstick Lollies, Double Lollies and New Refreshers, transformed into a softer gum version. Another new product to the market includesthe mouth-watering Vimto Drinx Gums, fun little packs filled with gummy Vimto bottles and cans, bursting with the tasty, juicy flavour of Vimto. Drinx are priced at 45p per bag and are an ideal “on the go” treat.
Randoms gets tandems
Nestlé Confectionery’s Rowntree’s Randoms brand recently introduced Randoms Tandems, which contain a combination of jelly and foamy textures. Nestlé UK & Ireland Senior Corporate Communications Manager James Maxton says: “Sugar confectionery sharing bags continue to grow in popularity in the wholesale & convenience channel, up 5.5% in the past year. With new products critical to driving such growth, retailers can trust that the launch of Randoms Tandems will attract shoppers.” Randoms delivered impressive growth of 6.5% in 2013 on the back of range extensions such as Randoms Rip’ems, demonstrating how innovation from the brand will drive growth into the category.
Skittles and Starburst adding flavour
Mars has two key brands in the sugar confectionery market with Skittles and Starburst. Both have been busy this year, with Skittles launching a Wild Berry variant. The launch, the fourth permanent line in the £38m range, combining Raspberry, Strawberry, Wild Cherry, Berry Punch and Melon Berry flavour. The variant is available in 55g single bag (£0.49) and 174g sharing pouch formats (£1.28). Wrigley is back on TV this month to cement awareness of the launch. Forming part of Skittles’ multi-million pound media spend for 2014, which will see the brand secure 25% more airtime versus 2013, the new ‘Trim the Rainbow, taste the Rainbow’ creative is designed to build on the success of the popular ‘Midas Touch’ ad and entertain consumers in a weird and wonderful way. Airing throughout the year in the UK during premium spots, the new TV ad shows a bewildered young girl in a dog parlour, trimming away at an elderly lady’s pet cloud – only to be rained on by Skittles. Matt Austin, European Confections Business Unit Director at Wrigley, says: “We’re hoping our brand new TV ad will encourage viewers to expect the unexpected and open their imaginations – exciting existing fans of Skittles, whilst attracting new ones. On Starburst, a FaveReds variant was recently added to the portfolio, bringing together consumers’ favourite red flavours in one pack – Strawberry, Raspberry, Cherry and Red Apple.
Top tips
According to this very sage advice from Swizzels Matlow, retailers need to ensure their displays are well merchandised, making it easy for customers to shop the category.
- Use shelf edge strips to clearly illustrate the price and end of aisle pointers to signpost the category.
- Offer variety – Place sharing bags alongside bottles of soft drinks and large bags of crisps to encourage increased basket spend.
- Offer cross category promotions to ensure the product mix caters to all tastes, including sweet and savory. Products should be grouped together to make it easier for the consumer to shop and pick up everything in one go.
- Stock best-selling lines – consumers are looking for a snack that will enable them to recreate the cinema experience at home.
- Enticing displays – big night in displays should be in a prominent front of store position. Consumers expect to see sweets included within the main fixture alongside other big night in products.
