Duty Free Confectionery Special Issue - June 2018

CONFECTIONERY JUNE 2018 · SPECIAL ISSUE

Category update: Confectionery p. 8 Building biscuits in travel retail p. 12 Nadiya: The king of dates p. 38

DUTYFREEMAGAZINE.CA

DRINKS, COCKTAIL OR COFFEE TIME?

YOU CAN NEVER BE TOO GENEROUS

CHOCOLATE LIQUEURS

CHOCOLATE COFFEE LIQUEURS

CHOCOLATE COCKTAILS

Letter from the Editor

A taste of travel retail C

onfectionery has always been a dynamic category – and now even more so, as many of today’s shoppers seek a combination of value, convenience, innovation, and a healthier approach to food.

Ten years ago, the category was dominated by chocolate. This is still the case, but major travel retail innovators are giving biscuits a more prominent place in the assortment.

Driven by the launch of the Mondelez-owned Oreo brand six years ago, the biscuit category is enjoying fresh interest from consumers seeking a healthier alternative to chocolate. We speak to key industry players for their views, and they have revealed some interesting facts. Jaya Singh, Managing Director, Mondelez World Travel Retail, European Export and Business Unit Switzerland (BUCH), says the biscuit category has been growing four times faster than chocolate, while sales of Oreo, the number one selling biscuit in the world, have tripled since its launch in travel retail in 2012.

“We see all the right indicators for the potential of biscuits in the channel,” enthuses Singh. “This is further underlined by the insight that 26% of those who do not otherwise buy confectionery in travel retail are willing to purchase biscuits.”

Elsewhere in this digital issue, we discover the latest developments in the Americas from the leading names in the region. On the operator side, we find out what’s happening at the ever-innovative Singapore Changi Airport, and from the suppliers we hear about the latest brand developments and activations from the likes of Ferrero, Lindt, Goldkenn and Godiva.

These four firms are well-known industry players, but there are other, smaller brands waiting in the wings to tempt travelers. Ambitious date brand Nadiya, for example, is seeking to offer high quality products in exciting packaging to travel retail – and all with the health benefits of dates. Nadiya wants to emphasize the global nature of its brand and put paid to the idea that dates should only be targeted at traditional consumers in the Arab countries.

With all this innovation coming up, we just have to sit back and enjoy what’s in store.

Kindest Regards,

Hibah Noor Editor-in-Chief hibah@dutyfreemagazine.ca

4 CONFECTIONERY JUNE 2018

JUNE 2017 · SPECIAL ISSUE Global Marketing Company Ltd., 26 Pearl Street, Mississuaga, Ontario L5M 1X2 Canada. It is distributed to duty free operators and distributors in the following countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE, Yemen, Algeria, Azerbaijan, Benin, Cameroon, Cape Verde, Djibouti, Egypt, Ethiopia, Gabon, Ghana, Guinea, Iran, Ivory Coast, Jordan, Kenya, Lebanon, Madagascar, Malawi, Mali, Mauritius, Morocco, Mozambique, Niger, Nigeria, Namibia, Pakistan, Reunion, Senegal, Seychelles, South Africa, Sudan, Syria, Tanzania, Togo, Tunisia, Turkey, Turkmenistan, Uzbekistan and Zaire, as well as to duty free suppliers worldwide.

AMERICAS, GULF-AFRICA, ASIA DUTY FREE & TRAVEL RETAILING 26 Pearl Street Mississauga, Ontario L5M 1X2 Canada Tel: 1 905 821 3344; Fax: 1 905 821 2777 www.dutyfreemagazine.ca PUBLISHER Aijaz Khan aijaz@globalmarketingcom.ca EDITORIAL DEPARTMENT EDITOR-IN-CHIEF Hibah Noor hibah@dutyfreemagazine.ca ASSOCIATE EDITOR Jas Ryat jas@dutyfreemagazine.ca SOCIAL MEDIA COORDINATOR Eman Khan eman@dutyfreemagazine.ca ADVERTISING AND MARKETING MANAGER Kevin Greene kevin@dutyfreemagazine.ca ART DIRECTOR Jessica Hearn jessica@globalmarketingcom.ca CONTRIBUTORS Claire Malcolm Mary Jane Pittilla Ronnie Lovler Rebecca Byrne

CIRCULATION & SUBSCRIPTION MANAGER accounts@globalmarketingcom.ca

Contents

What’s inside Lead Stories

12

8 Confectionery Overview

Category update: Confectionery IATA’s global passenger traffic outlook for 2018 anticipates +6% year-on-year growth (to 4.3 billion), and, with healthy year-to-date figures, it’s prime time for travel retail’s most adaptable category to capitalize on expanding opportunities

12 Building the biscuit category Taking the biscuit category to new heights

As the biscuit category enjoys a resurgence of interest from consumers seeking a healthier alternative to chocolate, we speak to key industry players for their views

14 Godiva

18

Tapping a golden opportunity Myriad product innovations and a new food and beverage concept are in store for Belgian heritage chocolate brand Godiva

16 Mondelez World Travel Retail Forwards and upwards

As the category leader, Mondelez promises “frequent innovation and a lot of fun”, according to the Swiss group’s travel retail chief Jaya Singh

28

18 Lindt & Sprüngli

Lindt & Sprüngli’s gifting success rolls on Lindt & Sprüngli Travel Retail continues to innovate based on the needs of travelers in a bid to stay ahead of the confectionery curve

20 Americas Round-Up

Confectionery sweetens the journey Chocolates and sweets still capture the eye of travelers at duty free and border stores as a perfect and easy to carry gift for family and friends

24 Changi Airport Group Confectionery: a best seller at Changi Airport

In 2017 Changi Airport set an all-time record for retail sales. With 57 million transactions during the year, it achieved more than S$2.5 billion (US$) in sales, a growth year on year of 7.6%

Features Goldkenn meets conservation A tough nut to crack Ferrero’s world of exclusivity Kreol TR introduces Vergani AstraGrace grows portfolio Nadiya: The king of dates

28 30 32 34 36 38

Industry expert comments 40 Hawaiian Host streamlines business 42 Anthon Berg’s sure-shot success 43 Harison shares success story 44 Confectionery news 45 Butlers’ Irish ambition 46

Category Overview

CATEGORY UPDATE: CONFECTIONERY IATA’s global passenger traffic outlook for 2018 anticipates +6% year-on-year growth (to 4.3 billion), and, with healthy year-to-date figures, it’s prime time for travel retail’s most adaptable category to capitalise on expanding opportunities

by CLAIRE MALCOLM

Andrew Ford, President, APTRA

T

The 2018 M1nd-set research also highlighted the fact that confectionery is often bought along with perfumes, souvenirs and skincare. According to Ford, in ASPAC it ranks as the third most popular purchase after perfumes and skincare, with 28% of the region’s passengers reaching for their wallets.

“Of course, the individual item price is relatively low so it is not surprising that confectionery purchases represent around 5% of travel retail spend,” he notes.

Despite the long-term IATA outlook predicting a doubling in airline traffic by 2034 (3.8 billion to 7.2 billion), conversion

isn’t growing in line with footfall.

Says Ford: “We will not convert that to sales unless we respond to changing market conditions.

“A high percentage of travelers compare products and prices prior to purchase, even for confectionery, with local stores, online suppliers and other travel destinations. We have to offer added value if we are to convert browsers to buyers, whether that is a price differential, a travel-exclusive variant or a memorable experience.”

He flags the changing nature of travel retail and in particular the mind-set of

he latest consumer insight from m1nd-set’s Business 1ntelligence Importance of Product Characteristics Service, which garnered feedIMPORTANCE OF PRODUCT CHARACTERISTICS back from 25,000 international airport Shape of Pack 4% passengers, reiterated the strength of the Size of Pack 5% category with a 52/48% split between Attractiveness and planned purchase and impulse giftOriginality of Display ing. Self-gifting/consumption scored 11% 32%, with 26% of travelers looking to make a specific purchase driven by price Brand 43% advantage (25%) and promotion or offer Ingredients 15% visibility (22%).

While duty free exclusives are all the way down the ‘reasons to buy’ list, at just 13%, the travel retail environment remains fertile ground for keen category shoppers, with the Asia Pacific region dominating Price 27% global travel patterns.

“Confectionery and packaged food are Confectionery buyers PURCHASED also purchased… favorites of Asian travelers,” says Andrew GlobalOTHER CATEGORIES IN COMBINATION WITH www.m1nd-set.com CONFECTIONERY Ford, APTRA President, citing Q3 2017 M1nd-set commissioned research that revealed the category to be the most visited – and purchased – among Japanese #1 41% Perfumes 39% travelers (38%).

“And it’s not just a simple chocolate bar at the check-out; their confectionery #2 Souvenirs 36% 38% purchases represented 12% of their total spend, second only to souvenirs,” says Ford. It is also the second most important #2 Skin care 31% 43% category for Indian travelers.

Other categories purchased in combination with confectionar

Confectionary Insights – 2017/2018

8 CONFECTIONERY JUNE 2018

Consumer insights from m1nd-set’s B1S (Business 1ntelligence Service), based on 25’000 airport-recruited interviews in 2018.

9

Candy Tin new collectable item in the iconic Goldbear shape

Category Overview

younger travelers - who are experience, engagement and personalization driven - as offering an opportunity to do more.

“We have the consumers in front of us, we can engage with them directly, we can get them to smell, touch, taste and try the product in an intimate, one-on-one encounter,” he remarks.

“Tastings in liquor and confectionery certainly yield positive results, and we have seen some stunning activations in store, but it incurs high costs,” he adds.

Gifting accounts for 64% of purchases as per M1nd-set’s data with personal consumption at 32% and sharing at 24%.

Important brand characteristics driving the purchase decision are led by brand (43%) and price (27%), yet attractiveness and display originality lags at 11% -indicating a clear need to do more.

Says Ford: “Perceived value for money is always important, whatever the price point. We have to be seen to be trading with integrity – discounts must be genuine reductions, multi-packs should offer a real sales incentive or price differential, travel exclusives should actually differ from domestic stock.”

It’s also worth noting that, as per M1nd-set research, first-time buyers aren’t locked into only into the familiar, with 22% buying products they haven’t bought previously, and 48% mixing it up between the known and the new.

Interestingly, only 26% of those interviewed were influenced by promotions although, digging deeper, M1nd-set found that product touchpoints are as varied as the confectionery offering, with consumer attention captured by airline websites or smartphone app ads through to airport billboards and inflight advertising.

Says Ford: “Creative presentations in store and activations that draw the consumer towards a brand are therefore most likely to be effective sales drivers. Confectionery is often bright and colourful with engaging displays and promotions so it deserves prime retail space.

“However, the trouble my confectionery colleagues face is that baskets are relatively low value compared to product categories like skincare or spirits so retailers often park confectionery at the back of the store and rely on familiar high-selling brands rather than offering variety and local specialities.”

Store presence, ambience and presentation is also key to persuading reluctant

10 CONFECTIONERY JUNE 2018

REASONS FOR NOT BUYING CONFECTIONERY Reasons for NOT buying confectionary Total Globals

78%

NET : PRICE & PROMOTIONS

30% 25% 32% 23% 18%

There were no promotions/sales that motivated me to buy The prices were too high compared to stores in the home country I wanted to compare prices at other locations before buying The prices were too high compared to stores at my destination The prices were too high compared to Duty free shops at other airports

65%

NET : ASSORTMENT

23% 25% 22% 14% 13% 7% 13% 11% 6% 7% 5% 5% 4%

I was not really attracted by any of the products available Couldn't find new & interesting products The products in the Duty Free shop were too similar to what I can find in my local shops I did not find anything suitable for gifting Couldn't find a broad range of products I did not find anything suitable as a souvenir Couldn't find Duty Free exclusive products I wanted a local experience, but the shop did not offer this I felt overwhelmed by the choice in the shop I was looking for a specific product / brand but could not find it I did not find the kind of products that I usually buy Couldn't find high quality products Unsure about product authenticity

Reasons for NOT buying confectionary

www.m1nd-set.com

18

Total Globals

31%

NET : CUSTOM ALLOWANCES AND CARRYING ITEMS

22% 13% 5%

I did not want to carry more items I was unsure about custom regulations My airline will only allow me to carry one bag

20%

NET : SHOP ATMOSPHERE

14% 8% 7%

Store was too busy with other travellers Queue to pay was too long The atmosphere in the shop made me uncomfortable

20%

NET : BUYING ELSEWHERE

20%

I did buy / had planned to buy elsewhere on my trip (e.g. at destination)

Reasons for NOT buying confectionary

Total Globals

www.m1nd-set.com

None of the store staff spoke my language Store staff was not helpful / friendly enough Store staff was not available when I needed assistance

7% 6% 5%

I did not get the advice I needed from the store staff / Store staff was not knowledgeable enough

7%

42%

NET : OTHER I was just browsing around, with no intention of buying anything

16%

I did not have enough time to choose a product

17% 9% 5%

I had already spent my shopping budget I never buy in Duty free, I just go there to browse

19

20%

NET : SALES STAFF

Confectionary Insights – 2017/2018

non-shoppers to part with their dollars.

M1nd-set also noted that 23% of those not buying were not attracted by the assortment on offer, while 14% felt the store was too busy and a sizeable 22% simply didn’t want to carry any extra duty free purchases.

International industry bodies are lobbying on various fronts, but it’s labelling that continues to be a thorn in the side.

APTRA is currently working with the Duty Free World Council and other trade agencies to develop an electronic solution

to the problem of labelling on consumable www.m1nd-set.com products.

“A QR code stamped on a chocolate bar could provide the shopper with access to nutritional information in a multiplicity of languages and formats to satisfy even the most demanding regulatory authority. It is important that we are seen to be taking the initiative on this as our critics would be only too happy to jump on duty free and travel retail and accuse us of failure to care appropriately for our consumers,” notes Ford.

Consumer insights from m1nd-set’s B1S (Business 1ntelligence Service), based on 25’000 airport-recruited interviews in 2018.

20

 Building the biscuit category

Mondelez’ Oreo is the number one selling biscuit in the world

Taking the biscuit category to new heights As the biscuit category enjoys a resurgence of interest from consumers seeking a healthier alternative to chocolate, we speak to key industry players for their views

by HIBAH NOOR

In Dubai Duty Free, biscuits generated sales of around US$3 million in 2017, representing a 13% increase over 2016

12 CONFECTIONERY JUNE 2018

Loacker’s Best of 187g suitcase, a perfect gift for kids

T

en years ago, the confectionery category was dominated by chocolate. It still is – but major travel retail innovators are giving biscuits a more prominent place in the assortment.

Saba Tahir, Senior Vice President - Purchasing, Dubai Duty Free, says biscuits have always been a staple product in the food category, but acknowledges that the interest in biscuits has grown tremendously over the past couple of years, as many new biscuit brands entered the UAE market last year.

She puts the renewed consumer interest in the category down to millennials and Generation Z consumers, due to the wide variety of healthy and nutritional options available now compared to previous years. In Dubai Duty Free, biscuits generated sales of around US$3 million in 2017, representing a 13% increase over 2016. January-April 2018 versus 2017 sales figures were static.

The latest trends in healthy eating and marketing campaigns centered around this topic, including social media, have played an important role in boosting consumer awareness of the health benefits of superfoods that are highly valued for their medicinal properties and nutritional value. This has been a key in shifting the gears from traditional mass brands to healthier snacking options, she explained. In Dubai Duty Free, biscuits remain a classic buy, with passengers still going for the mass brands.

“We have introduced organic, sugar-free and the healthy range options, but these merely scratched the surface of the biscuits business for DDF,” she noted.

The space allocated to biscuits overall is small and depends largely on the shop. The displays in the newsagent shops and remote (satellite) shop are for snacking, whereas in the main Departures shops they are for occasional gifting and sharing, so product type and space differs.

Dubai Duty Free strives to offer consumers the best choice and value for money, listing 18 brands from eight countries. Top performers in the category are Oreo and Chips Ahoy, Walkers, Loacker, McVitie’s and Merba.

The customer profile is diverse, according to Tahir. In 2018 the top purchasers have been passengers from the Subcontinent (22.7%), followed by Africa, Middle East and Europe (17% each) and Asia (13.4%). Aside from the passengers, DDF’s in-house and airport staff have also been a very loyal customer base for the biscuit category.

Biscuits growing faster than chocolate

Jaya Singh, Managing Director, Mondelez World Travel Retail, European Export and Business Unit Switzerland (BUCH), says the biscuit category has been growing four times faster than

chocolate, while Mondelez’ sales of Oreo, the number one selling biscuit in the world, have tripled since its launch in travel retail in 2012.

“We see all the right indicators for the potential of biscuits in the channel,” enthused Singh. “This is further underlined by the insight that 26% of those who do not otherwise buy confectionery in travel retail are willing to purchase biscuits.”

The roll-out of the company’s Biscuit Bakery concept is well under way, Singh reports. Earlier this year, new biscuit products from Milka and Oreo were launched and Mondelez has been working on building up the presence of the biscuits category in duty free stores. “Our efforts have been very well received and start to demonstrate this opportunity is incremental,” he said.

Daniel Kerschbaumer, International Sales Area Manager Middle East/Central Asia/India, A. Loacker AG/SpA, reckons that the biscuit category, especially the brand’s own wafer-biscuit segment, is growing in duty free shops, especially over the past two years. In 2017, the company managed to increase its duty free sales in the Middle East/Central Asia/India region by more than +50%.

“Consumers very often are looking for an alternative to the wide selection of different chocolates, and very often they go for biscuits,” he said. “And meanwhile, we offer consumers a wide selection of different products for sharing, gifting, self-consumption and kids’ items, and definitely it’s helping that consumers are more and more looking for wafer biscuits.”

While in the past wafer biscuits were mainly available in the domestic market, now many duty free operators see an additional value and offer for consumers, adding more categories like biscuits in the chocolate-dominated confectionery category.

Loacker has felt the trend very strongly for some two/three years, Kerschbaumer noted.

For Loacker, 2017 and the first half of 2018, especially in the Middle East and Asia region, performed extremely well, he added.

Over the past years, the company has upgraded its duty free portfolio and today it offers around 20 different wafer-biscuit products to its duty free partners worldwide. These include sharing packs, mainly with its very successful pouch-bags, attractively presented gifting packs, smaller formats for self-consumption, and various children’s products such as hand puppets and a moneybox.

Loacker’s most successful duty free item is its Best of 300g, containing a large selection of the most popular wafer and chocolate delicacies, and its new children’s item, the Best of 187g suitcase, which Kerschbaumer describes as the perfect gift for kids. www.dutyfreemagazine.ca CONFECTIONERY

13

Godiva

Tapping a golden opportunity Myriad product innovations and a new food and beverage concept are in store for Belgian heritage chocolate brand Godiva

by JAS RYAT

G

odiva continues to build on its launch of Wonderful City Dreams and Godiva Gold Discovery, both of which demonstrate the brand’s talent for inspiring creations.

This will be followed by the roll-out of the new travel-exclusive Godiva Happiness in a colorful, premium gift box and also its new Chocolate Domes.

And it doesn’t end there. Thomas Blincoe, Global Travel Retail Trade Marketing Manager Americas & Caribbean, also shared plans to develop Godiva’s proposed food and beverage concept.

“We believe it has great potential in café situations such as on cruise ships, ferries and airports as well as in downtown hospitality situations.”

Recruiting new consumers

Godiva Gold Discovery is based on the original Godiva Gold, however features some new innovative pieces

14 CONFECTIONERY JUNE 2018

Product-wise, Godiva’s top sellers remain Godiva Coeur Iconique and Godiva Gold in their various iterations. The Godiva Gold milk, white and dark chocolate selection continues to be a consumer favorite, so the new Gold Discovery – a derivation of the original that sees the introduction of some exciting new pieces – builds on that loyal following and recruits additional

Chef Dipping Event held in Waikiki Hawaii at DFS T Galleria Boutique for the Gold Discovery Launch last October

consumers who are keen to sample something a little different which still bears the Godiva seal of quality.

“We bring out an artistic new interpretation of Godiva Coeur Iconique quite regularly, usually in association with a famous designer, to freshen the offer and attract a new generation of gift-givers. This is always a popular mid-range confectionery purchase, particularly around Mother’s Day and Valentine’s Day,” shared Blincoe.

Godiva Gold Discovery was unveiled last year to a warm reception in travel retail, including a couple of chocolate fashion shows in Asia showcasing dresses made from Godiva gift boxes.

The launch generated excitement around the product, he said.

In addition, Godiva held an engaging red carpet chef event to promote the launch of Gold Discovery for Golden Week.

Meanwhile, Wonderful City Dreams, which contains chocolate pieces created and decorated by Godiva’s five chef-chocolatiers to honor the cities in which they live, is now the focus of a global advertising campaign and is likely to lay the groundwork for the next success story as a souvenir and travel gift purchase for Godiva.

Innovating with flavors and textures

Keeping ahead of the game is the biggest challenge for the Belgian chocolatier, as consumers, particularly many travel retail consumers, are not only sophisticated in their tastes but have access to multiple sales channels online and around the world.

“We have to ensure we are relevant, contemporary and constantly evolving if we are to keep their interest and drive sales,” said

Blincoe. “Godiva is always innovating with flavors and textures in order to create exciting new products, which will delight the traveling consumer and generate growth.”

Turning to trends in the category, everyone one is talking about brand experience. “A qualitative brand experience is of supreme importance if you want to retain loyal shoppers and attract new consumers,” he said. “Besides ensuring the quality of the product itself is optimal, we are looking at ways we can enhance the Godiva brand experience through experiential activations and product personalization.”

The Buyer’s Lounge sponsored by Godiva was a major success at Summit of the Americas, and Blincoe explained the reasoning behind this café concept: “57% of travelers do not visit or spend time in duty free stores. They would prefer to spend their time relaxing and purchasing food and beverage, whether sitting down in a café or enjoying a meal on the go. In addition, shopper behavior and purchasing decisions continue to evolve.”

He continued: “Godiva’s café concept puts theatre and the craftsmanship of chocolate making center stage and inspires customers to linger and savor freshly made chocolate drinks and desserts: a cup of Godiva coffee or hot chocolate; a Chocolixir or soft serve; or specially dipped treats. Chocolate ballotins as well as gifting and self-treat items are also available for purchase, so really a broad product assortment to allow travelers to fully immerse themselves into the world of Godiva throughout their journey.”

Godiva continues to focus on execution plans for this café concept in airport and domestic market locations. Expect to see lots more innovations in the future from this dynamic chocolate brand. www.dutyfreemagazine.ca CONFECTIONERY

15

Mondelez World Travel Retail

Forwards & upwards

As the category leader, Mondelez promises “frequent innovation and a lot of fun”, according to the Swiss group’s travel retail chief Jaya Singh

by HIBAH NOOR

J

aya Singh has been with Swiss confectionery giant Mondelez for over 25 years, working in both domestic and travel retail markets. Following the retirement of Andreas Fehr at the end of March 2018, he was promoted to the position of Managing Director World Travel Retail (WTR), European Export and Business Unit Switzerland (BUCH).

Within Mondelez World Travel Retail (WTR), Singh was Global Sales Director until his recent promotion. Before that post, he held the positions of Head of Global Key Accounts, following his Region Director role for Middle East & Asia Pacific. He will remain based in the Mondelez headquarters in Zurich, Switzerland, which allows him to manage Mondelez’ Swiss domestic and European export businesses, as they are also covered in his current role.

In a wide-ranging interview with us, Singh is optimistic about the past, present and future of the company: “2017 was a fantastic year for us,” he says. “We were driving the category turnaround with our continued efforts to deliver our Delighting Travelers category vision. We started the roll-out of our digital strategy and reconfirmed our 360-degree approach to the brand-retailer-shopper relationship.”

The company’s #SayItWithToblerone and #TravelWithOreo campaigns were “highly successful”, he says, and helped significantly improve both category engagement and sales. “We continue to combine product innovation, in-store activations and omnichannel digital marketing campaigns to provide the authentic and personalized brand experiences.

This is what ‘Next-Gen’ travelers are looking for.”

He also plans to continue on the path of establishing the biscuit category as a 16 CONFECTIONERY JUNE 2018

source of incremental revenue for the industry, by extending its biscuit ranges for both Milka and Oreo and creating impactful retail theatre around the biscuit category.

Confectionery has a central role to play

The main challenges in travel retail that inspired the group’s Delighting Travelers category vision persist, says Singh. Mondelez believes that confectionery has a central role to play in generating store footfall, improve conversion from visit to buyer and grow the transaction value.

Confectionery, being a category of universal appeal, can improve footfall, and lead to growth across other categories, provided it is given the right amount of space in the right locations, he adds.

The category also needs to respond to the demands of an emerging group of next-generation travelers who are highly connected, tech-savvy and travel frequently. They have a strong desire for bespoke experiences and sharable moments, he notes.

To connect with these next-generation travelers, Mondelez has adopted a holistic approach that combines emotionally compelling product offers with targeted engagement on digital platforms throughout their entire journey. This approach seeks to leverage digital in-store engagement, online communications as well as e-commerce.

“Our recent Cadbury Premier League activation at London Stansted Airport clearly demonstrates that if activations and campaigns are relevant and executed well, they have a significant impact on

Jaya Singh was promoted to the position of Managing Director World Travel Retail (WTR), European Export and Business Unit Switzerland (BUCH) following the retirement of Andreas Fehr at the end of March 2018

footfall and conversion,” he says. “However, it is important to point out that with strong focus on digital, we continue to cater to all other shoppers in travel retail who prefer traditional in-store engagement and communication.”

In terms of trends, personalization and products that allow for expressing emotions are increasing in popularity, particularly when it comes to gifting.

Last year, Mondelez unveiled the travel retail exclusive Toblerone Messages. This launch has enriched the chocolate gifting experience by allowing travelers to choose from a variety of messages and to share their experience. It was supported by an omnichannel campaign, #SayItWithToblerone designed with next-generation travelers in mind.

Singh believes travel retail must distinguish itself from the domestic market, and says brands are best positioned to provide a unique experience and additional value to consumers. In this way, the channel can rise above the competition with the domestic markets by exclusivity at both product and engagement levels.

Maximizing the opportunity

The Toblerone gifting station at Zurich Airport is the famous Swiss brand’s latest personalized gifting initiative, aiming to add value to the Toblerone proposition

The Toblerone gifting station lets shoppers print personalized messages on the ribbon for their Toblerone gift bag

and provide an authentic brand experience. The new installation lets shoppers print personalized messages on the ribbon for their Toblerone gift bag. It also responds to the demand for destination presents with an exclusive sleeve of their choice with either Zürich City, featuring the skyline of Switzerland’s largest metropolis, or the word ‘Grüezi’ (‘Hello’ in Swiss German).

As for his vision for the company in next two to three years, Singh asserts that the Delighting Travelers Vision remains the foundation and cornerstone. “The relentless pursuit of More Shoppers, More Spend, More Often has delivered, and will continue to deliver, the growth promise to maximize the opportunity. The expression of the vision will evolve, and rightly so.

The fluidity and agility required to reach

Cadbury’s recent Premier League activation at London Stansted Airport drove footfall and conversion

out to and connect with new emerging generations of travelers will continue to determine our approach. It’s all about unrelenting sustainable growth that is shared with all stakeholders in the business model that we are in, so that partnerships ever-strengthening, growth ongoing and shared successes becoming an everyday part of life. Our vision, its intent and benefits are for all,” he enthuses.

Next year, Mondelez International will celebrate the 25th anniversary of the establishment of a business unit dedicated specifically to world travel retail. Singh is rightly proud of this achievement. “We were category pioneers back then, and we have continued pioneering ever since.

We are the leading confectionery supplier in travel retail and have built a strong presence for our brands together with our retail partners over the years across all regions and channels.”

He continues: “Our business is in a strong position, with an excellent team in place and a fantastic pipeline of initiatives, giving us a great base to build on. We will continue to seize new opportunities, such as those in digital, and address the challenges to unlock new areas to grow together with our partners.

“As the category leader in travel retail, we have a long-term commitment to this industry and we embrace our responsibility in driving the confectionery category forwards and upwards. Along the way, we will bringing frequent innovation and a lot of fun,” he smiles.

www.dutyfreemagazine.ca CONFECTIONERY

17

Lindt & Sprüngli

Lindt & Sprüngli’s

gifting success rolls on Lindt & Sprüngli Travel Retail continues to innovate based on the needs of travelers in a bid to stay ahead of the confectionery curve

by JAS RYAT

Lindt Mini Pralines are available in a colorful multipack to attract a younger demographic

Available this July, Lindor Deluxe Heart is filled with classic Lindor chocolates

18 CONFECTIONERY JUNE 2018

This limited edition Lindor Matcha Tube offers a unique flavor that will only be available in the Asia Pacific Region

S

wiss chocolatier Lindt & Sprüngli Travel Retail continues its affair with chocolate as it upholds its title of the gifting specialist. With new innovations set to launch in July, it’s clear why the brand continues to be a top contender in the confectionery category.

Confectionery has one of the highest conversion rates in travel retail with more than 70%. Gifting items have the potential to turn browsers into shoppers with the right product.

“We have recently done some research that confirms that we specialize in gifting,” enthuses Miriam Richter, Marketing Manager Duty Free. “This is great news because gifting is also the second biggest driver for purchase motivation for people currently not buying. The general penetration rate in travel retail is still pretty

low with only 40% of all travelers entering duty free, and only 12% of those purchasing confectionery.”

New releases for July include the Lindor Deluxe Heart, Lindt Mini Pralines and a special edition a special edition Chinese New Year product.

The Lindor Deluxe Heart 200g will be available in classic red, filled with smooth melting Lindor Milk and premium gold with Lindor Milk, Surfin, White and Hazelnut.

The brand has also highlighted its room for growth in Asia. It has introduced the limited edition Lindor Matcha Tube that will only be available in the Asia Pacific region as it is catering to a specific taste.

“Asians are very good gifters; this is true for the Japanese, Indians, and surprisingly not for Chinese. Although gifting is underrepresented with Chinese travelers, self-consumption is very high,” notes Richter. The Chinese continue to be big spenders, with 75% being under the age of 40.

To target this demographic, Lindt has created Lindt Mini Pralines. The 32 mini pralines come in colorful packaging with smaller bite-size chocolates to attract this demographic. Their modern design makes Lindt Mini Pralines the perfect informal gift for a younger audience and can be purchased in a convenient multipack of 3 x 44g.

Rolling on with continued global success is the Lindt Chocolate Trolley.

Designed to target the growing souvenir gifting market, the Lindt Chocolate Trolley maintains its position as the perfect gift for travelers who want to bring home a travel exclusive souvenir for family or friends. The Trolley collection continues to dominate the confectionery category around the world, according to Lindt.

The Lindt Difference Philosophy

While Asia continues to show promising growth, Lindt’s strongest region is historically Europe. The Swiss brand has strong roots in Europe, scoring well with German, British and French travelers. Half of Lindt’s confectionery sales are made in Europe.

Latin America is also a strong performer for the brand. “Brazilians are very big confectionery shoppers. We have a

market share up to 40% in Sao Paulo and Rio de Janeiro,” shares Richter. Strong visual merchandising, passenger consultation and the biggest selection of premium chocolate gifts have made the brand very popular in Latin America with high market shares at the region’s biggest airports, especially in Brazil.

Lindt recently introduced The Lindt Difference Philosophy to aid in all steps of its production and innovation process.

This was implemented to share with customers the story of quality and production, from bean to bar.

The Lindt Difference Philosophy will be fully shared at TFWA World Exhibition in Cannes this fall.

Furthermore, Lindt has been ranked best-in-class supplier in the confectionery category based on customer needs, innovation and partnership by the 2017 Advantage Report Global Travel Retail.

The Advantage Report is an annual study based on both quantitative and qualitative research.

Last fall, the partnership between Bottega and Lindt & Sprüngli was also announced to promote joint sales of their best-selling products in the travel retail business. The partnership began in the Middle East with a Bottega Gold 75cl format and the Lindt Swiss Masterpieces Pralines in a golden Ballotin.

Richter says that both partners have been happy with the success of the partnership as it offers a great package with a price advantage. “It has shown incremental sales. The package inspires people to gift, which also keeps retailers interested,” she adds.

However, activations like this and others require larger spaces to convey the Lindt story. Confectionery is not the biggest category, thus the struggle for travel retail space is ongoing. Richter believes that because this is an impulse-driven category and has the highest conversion rate, retailers should be more open to give the company more space. She continues: “We are gifting specialists. We want displays in a larger space. Only if we have space can we properly tell our story.”

Richter says that Lindt & Sprüngli continues to deliver what consumers are looking for: good quality, a renowned brand and a premium offer – naturally the characteristics of a gifting specialist.

www.dutyfreemagazine.ca CONFECTIONERY

19

Confectionery in Americas

Confectionery sweetens the journey

Sweets and chocolates are among the multiple products offered consumers at the Siñeriz Shopping’s border store in Rivera, Uruguay

Chocolates and sweets still capture the eye of travelers at duty free and border stores as a perfect and easy to carry gift for family and friends

by RONNIE LOVLER

T

here’s a reason why confectioneries are a staple of the travel retail industry in Latin America, both at airports and border stores. Relatively speaking, these are inexpensive products, and candies and sweets make the perfect gift for a traveler to bring friends or family.

But there is more to a chocolate bar or a bag of sweets than meets the eye. Times are changing and both operators and suppliers are paying more attention to trends and packaging to make this comparatively low-ticket item more appealing to consumers who frequent their stores.

“Consumers are looking for healthy chocolates, with less added sugar and more cocoa concentration, natural products,” said Coral Salcedo of Panama-based Top Brands International in an exclusive interview with Americas Duty Free. As the company’s Brand Manager for confectionery, she said sales are also helped when “fashionable and luxury packages for gift-

20 CONFECTIONERY JUNE 2018

ing (and) big packages for convenience” are also part of the mix.

Alejandro Sosa, President of the Uruguay-based Lucas Calcraft, a confectionery and fine foods supplier, says confectionery goods make up a reliable market with steady growth and not too many ups and downs.

“You never guess with confectionery,” said Sosa, whose company focus is on the sale of Mentos and Chupa Chups, mints and lollipops that are ever-present in duty free and border stores. “When you buy it, you’re never off track as it’s a gift that is well received by everybody,” he said, noting that both products are available at several price points.

Sosa’s sales are primarily in South America, although recently he expanded into Costa Rica.

And although he was selling primarily chocolate products when he first got into the market, he said “now sugar is growing.

But it’s not cannibalizing chocolate. Also, there’s been a push from leading brands to make the market grow. Everything is growing.”

Presentation and store displays can be important factors in triggering confectionery sales. “In some stores we place

travel in good company

and long-lasting relationships with our trade partners. Our aspiration is to satisfy all the needs of international travellers, and in doing so to drive the performance of the whole category.

Confectionery in Americas

Top Brands has prominent displays for confectioneries in all of the duty free stores that come under its umbrella

confectionery at the store front,” Salcedo said. “Customers are attracted by the products, personalized furniture and the assortment of colors. These attract the attention of adults and children.” About 15% of the floor space in the duty free stores that come under the Top Brands umbrella is dedicated to confectionery, he said.

The same philosophy holds true at Siñeriz Shopping, the border store complex in Rivera, Uruguay. Commercial Manager Hilmi Abdullah Neto told us that Siñeriz has set aside 350 square meters just for sweets and chocolates.

“Confectionery has a unique importance, because sales are stable all year round. It is not where the consumer invests the most, but it is important for their general satisfaction,” he said.

Abdullah Neto said Siñeriz Shopping stands out from the competition in this category by offering some chocolates for purchase that can only be found there.

“What we have that is exclusive for Uruguay is Favarger, a Swiss brand, which has handmade chocolates for both consumption and to make sweets and also fondue chocolates, which are consumed a lot in southern Brazil.”

What also sets Siñeriz Shopping apart are the confectioneries offered in the Uruguay “corner” in its complex. Abdullah Neto said that within the store, Siñeriz Shopping has an exclusive area featuring products and goods that are locally

22 CONFECTIONERY JUNE 2018

produced, including the famed dulce de leche caramels.

Salcedo said Top Brands also has plans to offer its own private confectionery label at its stores in the near future.

The efforts by both companies to offer exclusive confectionery products is one indication of some of the challenges that confront sellers of these products. “There are the logistics of getting the products to the stores,” Salcedo said, while also pointing out the difficulties in competing successfully. “We all have the same products and suggested retail prices. We must be vigilant to have prices and products in line with the competition,” he said.

Abdullah Neto points to the difficulties of keeping the product offerings from reaching expiration dates and staying fresh. “The great challenge of confectionery is not to have breaks (in supply), considering that some brands take up to 3 to 4 months to generate (consumer) traffic. It is a bit complex to estimate what is going to sell in a period of time with so many variables that directly affect sales. “

Confectionery products are prone to specials sales and promotions to help the products move. “Tastings attract customers and most of the time they purchase it.

We also do gift with purchases and special buy three price promotions,” Top Brand’s Salcedo said.

Abdullah Neto said that at Siñeriz, confectionery promotions are also a marketing tool. “It is a category very sensitive to promotions,” he said. “Considering that all brands have an annual promotional calendar, which varies between 4 for 3, 3 for 2, or 2 with a 20% discount, the customer has a strong tendency to leave their usual purchase (of brand X) for another brand that is in promotion.”

But in the final analysis, chocolates and sweets will always sell and are likely to remain ever present in travel retail stores for travelers who are looking for that lastminute something to bring home.

“Of course, this is an impulsive purchase, and people always forget a gift for their relative,” said Salcedo. “Chocolates (and sweets) are the perfect gift.”

Changi Airport Group

CONFECTIONERY: a best seller at Changi Airport

Changi’s new Terminal 4 houses the airport’s largest chocolate and largest chocolate & candies store

In 2017 Changi Airport set an all-time record for retail sales. With 57 million transactions during the year, it achieved more than S$2.5 billion (US$1.9 billion) in sales, a growth year on year of 7.6%

by REBECCA BYRNE

T Teo Chew Hoon, Group Senior Vice President for Airside Concessions

24 CONFECTIONERY JUNE 2018

his result was powered by the new Terminal 4, revolutionary retail innovations, and the shopaholic’s favorite ‘Be A Changi Millionaire’ promotion. Confectionery was integral to this success as it is among the top five most popular product categories at the airport and has been since 2013.

Chocolates continue to be a popular souvenir for travelers.

Travelers like Indonesians, Chinese and Indians are known to purchase chocolates and delicatessen products for their families and friends back home. Customers often like their gifts to

New! Indulge in a bite-sized version of our TORTUGA Golden Original Rum Cake, capturing an authentic taste of the Caribbean in every bite. ÂŽ

Changi Airport Group

reflect the country they have traveled to, and Changi Airport is constantly working with its tenants and brands to curate Changi exclusive packaging that will make the chocolates a perfect gift from Singapore. Brands like Godiva, Neuhaus and Belgian carry Singapore themed packaging as part of their range and even Toblerone has produced exclusive sleeves with the word Singapore wrapping their famous triangular bar, as part of its Sense of Place campaign.

At Changi Airport, retailers are renowned for their innovate approach to marketing. A recent initiative by a Lagardère Travel Retail Singapore partner resulted in a Chocolate Fashion Show in Changi Airport Terminal 2 Transit. The retailer partnered with Belgian chocolatier Godiva to stage the event in conjunction with the launch of Godiva Gold Discovery, the chocolatier’s latest luxury collection. This pop up store presented three dresses created by contemporary designer Anne-Sophie Cochevelou, which combined state-of-the-art fashion and representations of Godiva’s iconic chocolate boxes, including the new Gold Discovery Collection.

Commenting on this campaign, Teo Chew Hoon, Group Senior Vice President for Airside Concessions at CAG said: “We are happy to partner Lagardére and Godiva to stage this unique event at Changi Airport. This global travel retail concept exclusive reinforces Changi’s position as a world-class shopping destination, and injects novelty and freshness into Changi’s retail experience.”

Louis Dambrine, CEO Lagardère Travel Retail Singapore & Malaysia added: ‘We aim to satisfy every travelers need and are committed to exceeding all expectations. To this end, we believe

Lagardère Travel Retail Singapore partnered with Godiva for this stunning pop up in Terminal 2

26 CONFECTIONERY JUNE 2018

that the fashion presentation will let travelers discover and experience chocolate through a very different experience.”

Changi Airport’s new Terminal 4 houses the airport’s largest chocolate and largest chocolate & candies store – The Cocoa Trees. This is one of six 11-metre high-ceiling shops at T4 which allowed retailers to create visually impactful store designs. The flagship stores spans 433 square meters and features MITR brands with the main focus on billion dollar chocolate product M&M’s. To create a sense of place, the store has links to Singapore’s Marina Bay Sands hotel and has an ‘I Love Singapore’ slogan across the exterior.

MITR Category Director Raghav Rekhi said: “The new Changi store is a perfect example of how confectionery can better meet the needs of travelers and reflects MITR’s vision through delivering across all segments and need-states, concentrating on best-selling, global brands across chocolate, gum and mints, and fruity confections, providing an easy-to-navigate store and introducing theatre and excitement through activations and promotions that drive category conversion.”

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Goldkenn

New Goldkenn

confectionery meets conservation The chocolate recipe for Amarula Chocolate Delights includes UTZ certified cocoa, and uses cacao butter as a substitute for palm oil

Goldkenn’s new chocolate gift tin is authentic, natural, and respectful of the environment – and supports vital conservation projects

G

oldkenn, the leading luxury Swiss chocolate confectioner, is building on the success of its 100g Amarula Liquor Bar with the launch of Amarula Chocolate Delights.

Designed for gift-giving, the elegant new 130g tin features Swiss milk chocolates filled with Amarula ganache.

The chocolate recipe includes UTZ certified cocoa, and uses cacao butter as a substitute for palm oil – meaning that Goldkenn chocolate is authentic, natural, and respectful of the environment, the company said.

The partnership between Goldkenn and Amarula was established to support the Amarula Trust to protect wildlife and African elephants. 100% of the royalties from the Amarula Chocolate Delights range are donated to this non-profit organization.

Founded in 2002, the Amarula Trust

28 CONFECTIONERY JUNE 2018

helps protecting the African elephants.

Its work is inspired by the close bond between the Amarula brand and elephants, which both share African roots and a strong connection to the Marula tree.

This tree, which bears fruit only once a year at the height of summer, is a source of food for elephants, as well as the key ingredient of the Amarula liquor and the Goldkenn Amarula chocolate range.

Since 1985, the Goldkenn brand has combined fine Swiss chocolate recipes with liquor, establishing partnerships with well-known brands such as Jack Daniel’s, Rémy Martin, Cointreau, The Famous Grouse, and Captain Morgan.

With refined flavors presented in premium packaging, Goldkenn is sold in over 250 international airports and duty free shops, onboard approximately 30 airlines as well as on international cruise lines.

Goldkenn’s elegant new 130g tin of Amarula Chocolate Delights features Swiss milk chocolates filled with Amarula ganache

 Kraft Heinz

A tough nut

to crack

by JAS RYAT

Kraft Heinz has disrupted the confectionery category by introducing the Planters nut portfolio. The company plans to work closely with its customers to fully embrace the opportunity

30 CONFECTIONERY JUNE 2018

Planters famous ambassador, Mr. Peanut, plans to travel the world to bring the brand to life

Kraft Heinz has rolled out the right portfolio that has a well balanced global presence

K

raft Heinz has a lot to celebrate after re-emerging onto the travel retail scene one year ago. Prototypes from last year’s TFWA Asia Pacific exhibition have now become reality and the Planters nut brand is carving its own niche in the confectionery category.

“I am very excited to finally have our innovations here. Last year we launched the brand in travel retail and now the orders are moving. Our focus continues to be increasing distribution and we have come very far with it,” explains Berend-Jan van Egmond, Business Development Manager of the Global Travel Channel. Van Egmond is proud of the team’s accomplishments, as the Planters brand is now present in nearly 50 countries in travel retail and between 750 and 1,000 points of sale. This is a tremendous accomplishment as the team started from ground zero and worked its way up.

The product portfolio spans Planters Energy Mix doybag 150g (a mix of Brazil nuts, walnuts, peanuts, and chocolate-covered honeycomb), Planters Salted Peanuts doybag 280g, Planters Roasted Almonds doybag 150g (ready to order July 2018), Planters Energy Mix Tin 120g and Planters Protein Mix Tin 120g.

With the right portfolio finally in place, van Egmond highlights the need to increase distribution. “It’s all about visibility.

It remains to be an impulse product. Planters being the number one US nut brand (more than US$1 billion brand value), it is one of the biggest nut brands in the world, although despite its size, the brand awareness is still not at its full potential in certain regions,” he says.

The global rollout has been balanced, with the strongest regions being Asia Pacific. The brand has partnerships with most global retailers in the industry, apart from the Asia Pacific region, where it works with Hong Kong-based distributor Himan Trading.

Value-for-money packs

“Based on our first-year sales analyses, we see that our doybag range (pouches with weights of between 150g and 280g) is the best-selling pack format. This is the value-for-money pack, which consumers can buy both as an instant snack as well as a snack for later during their trip,” shares van Egmond.

The question for retailers is, where does the Planters range fit in? The nut category is a new sub-category within confectionery.

Retailers question where the product should be positioned as a salted healthy snack – whether it is with traditional confectionery, at the cash desk or in the spirits section – so Kraft Heinz continues to work with retailers to find the best solution.

The brand continues to grow globally but van Egmond acknowledges that Europe is not the easiest region as there is less brand awareness. However, with a broad variety of activations planned, which vary from price promotions to brand activations in-store, it plans on changing that. For example, this year in August, Planters will be visible in the main shops of Frankfurt Airport.

Van Egmond also shares his enthusiasm for the brand’s wellknown ambassador Mr Peanut. He will continue to globe-trot in many airports this year. “It is really valuable for us, as Mr Peanut is bringing the brand alive. Consumers really seem to appreciate him, based on the amount of pictures that are being taken together with Mr Peanut,” he smiles.

The brand exposure in global travel retail, as well as domestic brand launches, will ultimately help the brand become a true global brand. Its vision of being a leading nut brand and supplier within travel retail is on track to becoming reality.

www.dutyfreemagazine.ca CONFECTIONERY

31

Ferrero Travel Market

A world of EXCLUSIVITY

Travel-exclusive products, new concepts and exciting promotions are driving growth for the Italian confectionery giant Ferrero

by HIBAH NOOR

F

Ferrero Travel Market is rolling out a new exclusive for the Nutella platform entitled Hello World

32 CONFECTIONERY JUNE 2018

errero Travel Market is having a good year and, despite difficult trading conditions in several markets, the Italian confectionery group believes it is poised to leverage on the passenger travel increases that are projected for the next few years.

“The business environment is becoming more challenging every day, and this is why as a company we believe it is essential to attract consumers by offering an engaging experience at the point of sale with the deployment of our travel retail concepts and then to stimulate the conversion rate with a range of dedicated products for the channel,” says Frederic Thil, General Manager, Ferrero Travel Market, in an interview with us.

He says that it’s all about offering exclusivity, not only in terms of packaging, but by interacting with its customers

A Christmas 2017 promotion for Ferrero pralines at Frankfurt Airport celebrates the festive season

ers. Investment in top quality promotions is an essential component of that strategy.”

New travel retail promotions

In this activation at Copenhagen Airport, Kinder elements are objects created for play as well as for purchase

in order to fulfil the specific need states of the confectionery channel.

Thil believes this can be achieved by providing “additional excitement”, or stimulating interaction with its product, which makes it worthwhile for shoppers to purchase and transport the product on their travels.

But Thil acknowledges there are challenges in the market. “The ongoing challenge is how to engage and delight shoppers, which is fundamental to our strategy, and conclude a sale,” he continues. “This is a challenge shared with the shop owners and operators and we must work together to increase store penetration and conversion rates. Ferrero is always investing in innovation to ensure our major brands each offer the most relevant product range, much of it exclusive to the channel, which will deliver a unique brand experience to its consum-

Ferrero’s sophisticated and refined Piazza Ferrero concept, which is currently rolling out in several locations across its key markets, is an example of how the company has upgraded the overall in-store experience around Ferrero pralines. The design of this concept is inspired by Italian flair, enriched by the attention to detail across all the elements that one sees and interacts with at the store level.

Designed to be a premium environment to welcome travelers, it focuses on the successful Ferrero Golden Gallery, the finest expression of Ferrero craftsmanship and savoir-faire, the company says. This new assortment has not only given Ferrero a boost in the premium assorted chocolate segment, but has also led to incremental sales within the category as a whole.

Kinder, as another example, is about delighting the young and old, so the Kinder World Above the Clouds concept enables everyone to step into a magic playground where Kinder elements are objects created for play as well as for purchase. Ferrero has been installing this concept in many airport locations over the last year, registering significant double-digit growth where it has been implemented.

Ferrero is proud of the unique way it does business. “First of all, we are proud of working with high quality brands and products recognized all over the world, as Ferrero’s certainly are,” enthuses Thil. “On these brands we keep fueling innovation, as a key pillar of our strategy over recent years. This has helped to differentiate our brands from their competitors.”

The Ferrero Travel Market team has curated a portfolio of products for each of its key brands – Kinder, Nutella, Tic Tac and pralines – which are suited to gifting, sharing and self-treat in the travel retail channel. “Kinder, for example, has confirmed its role as a top-notch brand in the channel thanks to its new travelexclusive gifting range. It’s one of the fastest-growing brands in the whole category, driving the growth of the category itself. Working on four different categories allows us to cover all confectionery segments, from premium pralines through chocolate snacks to sugar confectionery,” he explains.

Product innovations

This year the focus is on Nutella. Ferrero Travel Market is rolling out a new exclusive for the Nutella platform entitled Hello World, featuring three travel exclusive items: first, the Nutella Apparel gift set consisting of a 750g pot of the famous chocolate hazelnut spread dressed in a stylish hoodie, which seeks to stimulate consumers’ creativity for after-use and collection; second, the collectible ‘Say it with Nutella’ gift boxes, which open to reveal a 350g jar with an ‘I love you’ or ‘For you’ printed label; and thirdly, the Nutella Ultimate Kit, a jar-shaped tin containing a 180g pot of Nutella spread, a spreader and a place-mat for a Nutella experience on the go.

The new launches join the three travel-exclusive best-sellers: Nutella Big Jar packed with 21 30g mini-jars; Nutella One-a-Day set of seven 30g mini-jars; and the individual Nutella Mini-jar 30g that is designed as a check-out purchase.

Consumer awareness around health issues have not impacted sales on any of its popular products, because Ferrero focuses on quality, and keeps working hard to improve this key aspect, emphasizes Thil. “Our consumers are recognizing this effort and this value all around the world, therefore they are our best ambassadors.”

Turning to new trends in the confectionery category, besides the increase in passenger numbers, the passenger profile is changing and the company is seeing a less-than-proportional upswing in sales.

“We need to be better and smarter in how to drive traffic in-store and how to increase the conversion, which will be the two keys to win for the next years,” Thil concludes. www.dutyfreemagazine.ca CONFECTIONERY

33

Kreol Travel Retail

West meets East Italian confectionery brand Vergani appoints Kreol Travel Retail

K

Vergani’s product range consists of nougat pralines and bars, spicy fruit chutneys, chocolate pralines, chocolate eggs and marrons glacés

34 CONFECTIONERY JUNE 2018

reol Travel Retail has been appointed the travel retail distributor for Vergani, a specialty Italian confectionery manufacturer that has been operating since 1881.

The product range consists of torrone (nougat pralines and bars), mostarda (spicy fruit chutneys), chocolate pralines, chocolate eggs and marrons glacés.

Vergani also supplies semi-finished products, such as crushed nougat for ice cream.

The brand is present in countries including Switzerland, Germany, Austria, France, the UK, Sweden, the Netherlands, Portugal, Greece, the US, Canada, the Middle East, Hong Kong, Singapore, and Australia.

Vergani was acquired by Lameri Cereals, a leading manufacturer of cereals and cornflakes, in 2006.

Kreol Travel Retail has been appointed as the official travel retail distributor for the Indian subcontinent, Southeast Asia and selected Middle East countries.

“We look forward to working with Vergani to bring their quality range of products to consumers around the world,” said A.S Lal, CEO, Kreol Travel Retail.

Headquartered in Dubai, Kreol Travel Retail’s portfolio includes Italian chocolate and dragee brand Confetti Crispo, leading Turkish chocolate manufacturing giant Sölen, Chiko eclairs/caramels/toffees/fruit chews/polish fudge from Oman, and Duc d’O chocolate truffles from Belgium.

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AstraGrace

AstraGrace

grows portfolio from down under Health and wellness brand brings its ‘nature has the answer to your health’ motto to travel retail

by JAS RYAT

A

ustralia-based company AstraGrace continues to promote its philosophy of supplying high quality health and wellness products throughout global travel retail (GTR).

AstraGrace Administrative Officer, Michelle Seo, explains that travelers are more aware than ever about the importance of self care while traveling. More importantly, travelers are looking for healthy and natural alternatives to the mainstream options. The key ingredient

Mediactive Traveller Pocket Honey provide travel friendly options to alleviate travel related discomforts

in its duty free portfolio is the Mediactive 20+ Honey, registered in the Australian Therapeutic Goods Administration. This 100% pure Australian honey is known to have a thicker consistency, a higher level of antioxidants, bold taste and a distinctive aroma.

This is where AstraGrace breaks the mold by offering highly active ingredients, mainly honey, extracted from natural substances in convenient travel friendly packaging. The company’s vast portfolio includes, but is not limited to, MDActive Propolis Honey Candy, Mediactive Traveller Pocket Honey, and Propolis & Mediactive Honey Fresh Breath Oral Spray.

Honey therapy

The Propolis & Mediactive Honey Fresh Breath Spray fights bad breath and protects the throat against pollution

36 CONFECTIONERY JUNE 2018

The MDActive Honey Candy is combined with the antibacterial properties of Mediactive 20+ Honey and Propolis with Eucalyptus oil. The 100% natural candy is refreshing and comes in a convenient travel friendly tin that continues to keep the candy fresh.

Another travel ready tool from AstraGrace is the Mediactive Traveller Pocket Honey. The individual sachets have simplified soothing a sore throat or preventing bacteria while on the go. The high quality of the honey allows for ingestion or topical use on a wound.

Finally, the Propolis & Mediactive Honey Fresh Breath Spray has been redesigned to be more consumer- friendly.

The new version of the spray, set to launch in July 2018, is a refreshing way to combat dry air on planes, protect the throat against pollution and eliminate bad breath. The new slimmer, aluminum

packaging contains a lighter propolis, resulting in a milder and lighter flavor.

“This works well with the fine dust problem in Asia. The fine dust distribution is increasing, so people want to protect their throat and refresh it. This is the perfect answer,” explains Seo.

Expansion in travel retail

AstraGrace has already extended its reach in the South East Asian region such asas Vietnam and Singapore. “We have already expanded well into the South Korean and Hong Kong duty free markets. We do want to expand more in China,” shares Seo. She continues: “Although China has strict regulations, we will continue to promote products like our honey and health supplements in that market.”

Once AstraGrace has secured its anchor position in the Asian regions, the company plans to look into expanding in the Middle East and Gulf-African regions.

The main focus right now is to raise brand awareness and increase distribution. AstraGrace will be focusing more on e-commerce, online and social media opportunities to promote its products.

“We are a growing company competing against larger brands. Many people are aware of Manuka honey from New Zealand. Australia needs to promote Australian Manuka honey as well to inform consumers,” explains Seo. AstraGrace reports organic growth in GTR. The products are addressing a niche area in duty free by offering a quality, healthy alternatives to resolve travel related discomforts.

NATURAL SOURCE OF PROTEIN AND FIBRE

Berend-Jan van Egmond Global Sales Manager Travel Retail The Kraft Heinz Company berendjan.vanegmond@kraftheinz.com Mobile: +31 6 23 79 43 90

il e a et ang r el e r v a siv r T lu c x e

Nadiya

The king of dates Ambitious date brand Nadiya is seeking to offer high quality products in exciting packaging to travel retail – and all with health benefits

by HIBAH NOOR

Nadiya’s new White Chocolate Coated Dates

The Dubai-based company offers a range of beautifully packaged luxury chocolate, stuffed and whole dates

38 CONFECTIONERY JUNE 2018

He continues: “Dates is our culture and heritage, so how come they are so poorly presented? So we decided to start Nadiya and offer exciting packaging, high quality products and better processing of the date itself.”

The company entered travel retail 12 years ago. “We grew with the customers, we grew larger than others in terms of market share. To give you perspective, we were number 25 in the food and confectionery category with Dubai Duty Free and now we’re number seven out of 250 companies.”

Nadiya operates in 11 airports, primarily in the Gulf region. He cites Jeddah, Riyadh, Dammam, Dubai, Abu Dhabi, Muscat, Bahrain, plus Istanbul.

Asian consumer interest

In travel retail, Nadiya offers celebration tins, presentation boxes and resealable pouches

L

eading date brand Nadiya is on a mission to make its products as popular and international as chocolate in the travel retail channel.

Nadiya has a food heritage, and is very focused on quality and taste. Nick Papadopoulos, General Manager, Nadiya, wants to emphasize the global nature of the brand and put paid to the idea that dates should only be targeted at traditional consumers in the Arab countries.

Nadiya’s product concept is based on the fact that dates can be gifted and are something of real quality. The Dubai-based company offers a range of beautifully packaged luxury chocolate, stuffed and whole dates, reflecting its local heritage and the traditions of Arabian hospitality.

Among its many prestigious customers are duty free operators in Dubai, Saudi Arabia, Oman and Istanbul, leading regional airlines, Dubai Government departments, major retailers and many international hotel groups.

Papadopoulos explains “We try different goods and we thought we should up the game in the Arab world and make sure that our dates were delicious. We use the finest Saudi Arabian dates, we get nuts from the US, we get pistachios from Iran and packaging from China/India. Our product is a global product.”

Maghreb, Tunisia, Morocco, but the best dates are the Saudi dates. We buy farms and we source externally to get the best of breed and different varieties.”

Focus on health benefits

In travel retail, Nadiya offers celebration tins, presentation boxes and resealable pouches. Its newest offer for travel retail is White Chocolate Coated Dates – dates covered in white chocolate, containing natural fruit flavors.

The production process also seeks to offer “the best”, says Papadopoulos. “From the washing, the fumigation, the process with Belgian chocolate, the best pistachios from Iran, the best almonds from US, everything has to be prime and premium.”

The dates are grown on trees, and once a year there is a harvest, with each tree yielding 100 kilograms of dates. Depending on how the tree is trimmed, it would provide a mix of large, medium and small dates. Most dates sold at retail are medium in size.

The company has a factory in Saudi Arabia, which carries out the pre-processing. The dates are washed, fumigated, treated and packed, and then they are transported by truck to the UAE to its other factory in Dubai, the main factory for processing, based in Jebel Ali. With such a focus on health, quality and gifting, expect to see much more of Nadiya in the future.

Nadiya was introduced in Asia when the company discovered that it was one of the biggest confectionery brands in Dubai Duty Free. The operator analyzed its sales statistics to see who was buying the dates and found there was a lot of interest from Asian consumers, especially from the Chinese. “They want something new. Instead of having the regular chocolates, they want something different,” says Papadopoulos.

Asia is a natural progression. Papadopoulos acknowledges that there are many countries in the region with different characteristics. He points to Indonesia and Malaysia, which have some of the biggest Muslim Nick Papadopoulos, populations. “Pre-, postGeneral Manager, Nadiya Ramadan and during Ramadan they’re very big on dates.

They start with Ramadan and see a different quality of date, and then throughout the year we can offer different items.”

Other countries, such as China, Hong Kong and Singapore, have very high disposable income and they want something new and exciting.

“We offer specialized confectionery; instead of buying the regular chocolate brands, you can buy something different.”

Papadopoulos contends that a chocolate date is healthier than just chocolate.

“Our Saudi Arabian dates are the king of dates. There are dates from throughout the region, from Iran, Iraq,

www.dutyfreemagazine.ca CONFECTIONERY

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Industry Experts

Candy coated success The confectionery category has shown a slight increase in turnover in 2017 after a two year slump. We asked industry experts to define what success means to them in this channel of sweets Nancy Giambanco Amato Global Team Lead Customer Marketing, World Travel Retail, The Hershey Company

Success in the confectionery category is grounded in understanding the shopper and consumer needs so we can deliver an exceptional and memorable brand experience through our product offerings and programs. We heavily leverage our research partnerships for insights on the channel shoppers for the category and across multiple categories to ensure our strategy aligns to those key trends and needs. For example, we know 46% of purchases are for gifting and 26% are for snacking. Thus in pairing that insight with our internal knowledge of brand affinity by region or nationalities we ensure our portfolio offering fulfils both those purchasing occasions through format and brands we focus on by region. (Source: CIR Global Study) We then overlay this core assortment focus with strong promotional offerings and unique experiential activations.

For example, in February we launched in partnership with Heinemann in Hong Kong our KISSES Customization Station which allows consumers to choose from a variety of bulk flavors into a set filled package and then customize with their own gift label for a souvenir or a gift from their trip. We are enhancing the program by end of next month for consumers to now be able to also include their picture and fun photo filters into the design.

These are the types of in store experiences we are looking to expand upon so the consumer is not just purchasing our brands/products but they are engaging and having a memorable experience through customization, and associate positive memories around their travel experience. By achieving this our brands own the moment and become top of mind and trusted by consumers as a critical part of their rituals and usage occasions.

Elisa Fontana Marketing Manager Travel Retail, RIGO Trading SA/HARIBO

Success in business is a healthy bottom line; success in travel retail confectionery is a steady growth in sales and an increase in market share; success at HARIBO is all of the above plus the smiling face of a happy consumer.

‘Kids and grown-ups love it so, the happy world of HARIBO’ is much more than just our global advertising slogan, it represents an absolute commitment to our customers that we will manufacture and supply confectionery of the highest quality that will delight consumers of all ages and cultures.

Wherever possible we engage with shoppers at travel retail stores through activations that feature our larger-than-life mascot or a game. Our latest promotion this summer involves a xylophone on which shoppers can learn to play the HARIBO jingle.

Being impulse driven, our category can increase the number of items per basket and the average spend per passenger simply by increasing the opportunities to purchase such as by providing more display space at the check-out and other focal points.

Success for confectionery in travel retail relies also on the willingness of retailers to offer us the premium space we need. They, and we, will be richly rewarded with increased sales, a stronger business and happy smiles all around.

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Stewart Dryburgh General Manager, Nestlé International Travel Retail

Success in the confectionery category is about adding a confectionery product to the overall duty free shopping basket and so increasing spend. To achieve this it’s all about exciting the shopper with a SOUL experience. SOUL is built out of four elements: Story: each brand must deliver a great and exciting brand story to allow consumers to relate and connect Occasion: It’s about understanding the need of the shopper and meeting these with relevant options, e.g. is it for a gift, to share or a snack?

Uniqueness: we need to offer shoppers a special experience that they cannot find in their domestic retail environment Local: It’s about a combination of ‘here and now’ or even more a locally relevant execution.

If we as the confectionery category can deliver a compelling SOUL proposition to shoppers then we will succeed by adding confectionery to the shopping basket.

Raghav Rekhi Category Director, Mars International Travel Retail

A successful category is a growing category. In the here and now, we can achieve success by untapping the potential of the checkout. Checkout penetration is relatively low, and I firmly believe that our category conversion will go up when we start properly executing checkout sales and driving impulsiveness.

Looking at the longer term, I believe we should combine data and insights for future growth. We can become more data driven in our approach and look at shopper insights about why shoppers buy the category. We have an opportunity to look more closely at how we’re providing them with options for the four key needstates that they have.

There is an opportunity in the personal consumption space by providing for the needstates of solo travelers who want to refresh themselves, for example. There are also opportunities around traveling groups who buy the category to connect, or travelers who buy to connect with those at home.”

Rishi Dhealley International Key Account Manager – Travel Retail, BMB Group (Petit Gourmet)

Petit Gourmet is a relatively young brand in the travel retail industry, and being a Mediterranean sweets brand – what success means to us right now may be different to many more established brands.

Of course when we grow our business and take market share in our region – we consider this successful. But when we list in markets which don’t have an immediate connection to this type of product – success! To then consistently increase our business and brand equity in these markets – we consider this a huge success. Our social media platforms have followers from so many different parts of the world, who have purchased our products from so many different locations.

This is not just success in our eyes, but truly gratifying.

We have a good looking premium product sold at a very competitive price and our capabilities to customize (not just the packaging, but the product range itself) for different locations – make it an exciting and more appealing option for the passenger. The goal is to be a household name and synonymous for fresh baked sweets within the travel retail industry.

www.dutyfreemagazine.ca CONFECTIONERY

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Hawaiian Host

HAWAIIAN HOST

streamlines its confectionery business in Asia One of the best sellers is the Classic Original

Macadamia nut specialist Hawaiian Host is making waves in the Asian market with expansion in both travel retail and domestic markets.

by REBECCA BYRNE

M

acadamia nut specialist Hawaiian Host is making waves in the Asian market. Since his appointment two years ago, Sam Ho, Director of Sales Asia Pacific and Middle East, has worked on refining the business in the region to grow margins. This has worked well in Korea where a change in the route to market has garnered successful results. “We have shifted our strategy in Korean duty free,” says Ho. “We appointed a distributor instead of an agent which has made a difference in reaction time and stock control. This has led to a high increase in sales.” Well represented at South Korea’s Incheon Airport and on Asiana Airlines, Korean Airlines and lowcost Jeju Airlines, travel retail sales have grown by double digits over the past year.

Hawaiian Host has also streamlined its operation in Taiwan. Selling through Taiwanese Duty Free retailer Everrich, Ho has reduced the number of SKUs from 15 to six. “Initially retailers were concerned with this approach, but soon realized it made sense as 80% of our sales comes from six lines. This enabled us to reconfigure the shelf space to ensure maximum

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returns,” says Ho. New to the market is the licensed Hello Kitty chocolate covered macadamia nuts box sets which are sold on Taiwan’s Eva Airlines. The six-pack, launched on 1 May, is priced at US$20 and selling well. Alongside the Hello Kitty products, the company has also introduced regionally targeted green tea Matcha Macs in China, Taiwan and Korea.

Other countries in Asia where the confectionery company has a duty free presence includes Thailand and Malaysia where the Haiwaiian Host and Mauna Loa brands are popular with consumers.

Ho notes that the more unusual tastes do not sell so well in Asia. In fact the most popular product is the Tiki Classic Original Macadamia nuts in dark, milk and white chocolate variations which is sold predominantly in the gift category.

The macadamia nuts category where Hawaiian Host is the market leader, spans all categories, including self-consumption, sharing and gifting.

Ho believes that the confectionery market in travel retail is becoming more challenging. Not only is there increased

Hawaiian Host has also introduced regionally targeted green tea Matcha Macs in China, Taiwan and Korea

competition within the category, but also for space from other categories such as alcohol and tobacco, where investment spend is high. With operators demanding high margins, chocolate products need to be priced over US$15 which restricts the brand’s ability to sell a wider range of products. Limited supply is also an issue as to maintain its high quality, Looking to the future for Hawaiian Host, Ho comments that the company will continue to grow its current brand portfolio for another year before introducing any new product lines as he feels that Asian traveler needs to be more familiar with the brand. Awareness is helped by strong performances in domestic markets in countries such as Japan and Korea. With its new strapline, “Indulge with a little Aloha”, 2018 looks to be a promising year for the brand.

Anthon Berg

A sure-shot success

Anthon Berg continues to live up to its “You can never be too generous” motto by presenting its new Deluxe range and focusing on the ever-popular liqueur bottles

Anthon Berg diversifies its Deluxe range with the addition of White Nougat and Sweet Caramel to expand its customer demographic

by JAS RYAT

A

nthon Berg is no stranger to being a top contender when it comes to unique chocolate products. Over the last 50 years it has become a leader in the chocolate liqueurs category. This past fall the brand also presented two new Anthon Berg flavors in its Deluxe range, White Nougat and Sweet Caramel, to expand the already successful collection.

In an interview, André Haunsø Kampmann, Senior Brand Manager, Anthon Berg International, explains that the brand has had a very strong year in the Asian region. In partnership with Asian agent, Focus Network Agency (FNA), the company has been able to develop a strong presence in Malaysia, the Philippines and Thailand. FNA is a distributor and retailer of chocolate and confectionery in Asia and is based out of Singapore. The strong platform built with FNA, combined with heavy investment and strong promotion, has led to growth in the region.

Stellar products

The company’s success in Asia is driven

by Anthon Berg Chocolate Liqueurs, Cocktails and Coffee Liqueurs. Peter Dige, Travel Retail Director, Anthon Berg International, explains: “We are very proud to be the inventors of the liqueurfilled chocolate bottle concept worldwide.

Each new concept has performed excel-

lently. So naturally we are confident that the Chocolate Liqueur Collection will fly off shelves as an elaborate gift or for the curious fan of chocolate liqueur products – or simply to share with friends or enjoy for yourself. We are literally combining all our competences in this specific type of product into one single delicious box.

And we believe it to be a bullet-proof successful product.”

Another notable introduction to the global range is the expansion of the Deluxe series to offer new flavors, White Nougat and Sweet Caramel. The traditional marzipan line, a Nordic favorite, has been expanded to cater to a larger global palate. The new product is also non-alcoholic, making it ideal for a global audience. This will help the brand enter into markets where alcohol is prohibited and offers an alternative for labeling issues that may eventually be problematic in the industry. Most importantly, being flexible to the market encourages turnover on customer shelf space.

Finally, the brand continues to promote its Drinks Time and Cocktail Hours dual pack that features its two best-sellers in one elegant package. The Drinks Time range has always been a success with men, and the additional Cocktail Hours – the pink-wrapped feminine counterpart – was added 12 years ago. Both ranges are sold as a dual

pack, making them ideal to gift, share or self indulge.

“When we develop new products, we obviously look at the best way for us and our customers to make a profit. This often means building on a proven success rather than reinventing the wheel. We want to take to market what we know to be a sure-shot. We are confident that the combination of our Chocolate Liqueurs and Chocolate Cocktails will be just that.

After all, 50 years of sales figures in global travel retail back up that bold assumption,” enthuses Dige.

A toast to experience

Anthon Berg is focused on giving the consumer the full experience when eating its products. The company has upgraded the packaging with instructions on how to properly enjoy the chocolate bottles.

Choose your chocolate, unwrap it, bite off the bottom, drink the contents and finally enjoy the remaining chocolate.

In the future, the brand will be focusing on product launches and innovations, and it is planning to unveil its new communications at the TFWA World Exhibition in October. Kampmann has a clear strategy in every different continent, focusing on displays and promotions.

However, the spotlight continues to be on the fact that Anthon Berg offers consumers a travel retail exclusive, which is a main driver for the brand.

www.dutyfreemagazine.ca CONFECTIONERY

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Harison

Harison chocolate brand

ready to share success story Harison premium chocolate is an entry-level premium chocolate brand offering shoppers affordable luxury that’s exclusive to travel retail

by JAS RYAT

L

ike a mirage in the desert, Harison chocolate seemed to appear out of nowhere at this year’s TFWA Asia Pacific exhibition. In fact, this was the brand’s third time exhibiting at the Singapore tradeshow. Asia Duty Free Magazine sat down with Global Sales and Marketing Director Alan Brennan to discuss exactly how he plans on achieving global brand growth.

Harison, exclusive to travel retail, has both a registered office in London with the main Sweet Garden head-office located in Dubai. Its part of the Sweet Garden brand portfolio in global travel retail and brings a unique positioning to the industry explains Brennan. The entry-level premium brand proposition is exclusive quality and affordable luxury.

Since its introduction in 2015, the brand has doubled each year through distribution and organic growth. This is where Brennan brings his experience and expertise to amplify this message and drive future growth. He explains that Harison is “targeted to appeal to a wider shopper audience, as an entrylevel premium chocolate brand, to move new and existing shoppers into the premium confectionery segment through this proposition.”

Brennan shares the brand’s role should be to deliver incremental growth by moving confectionery consumers from mainstream to premium. From a retailer’s perspective, this should drive transaction value and spend.

Candy-coated growth

Generation 2017 statistics revealed that the confectionery category had seen an increase of 3.7% in turnover. While this growth offers reassurance, this follows a two-year dip in the category. “The objective is to get confectionery back to levels of previous years where it was high single digits or low double digits. The average transaction value of confectionery can be low when compared to other categories, thus it has to work harder. But it has 44 CONFECTIONERY JUNE 2018

the opportunity because of its universal appeal and leveraging the impulse nature of the product,” says Brennan.

The brand itself is harnessing tremendous growth. Its main customer base is mainly the Middle East, India and Bali.

Harison has partnerships with the majority of the major players in the Middle East, being Dubai, Abu Dhabi and Saudi Arabia.

“Our CEO & Chief Brand Architect Mr. Shibu Thomas, conceived the Harison brand aimed at fulfilling the huge gap in the duty free and travel retail confectionary category of an affordable premium European chocolate. He has consciously dedicated this brand exclusively to the DF&TR industry due to the fact that the consumer’s reason for purchase is to gift or share it with their loved ones; therefore they need an exclusive product,” explains Brennan.

He continues, “His vision for the brand is to keep it as a specialty boutique brand which has all the attributes of a premium quality chocolate at an affordable price and exclusively available at the DF&TR store and also create high brand equity among the consumers.”

Asia has potential to grow as the brand has confirmed partnerships with Lagardère at Singapore Changi Airport.

“The base is relatively small but presents a huge opportunity. But collectively as a portfolio we have the opportunity to grow exponentially purely by distribution gains alone. We are experiencing strong doubledigit growth and our business is generally doubling within our global network,” enthuses Brennan.

Harison Italian Truffles are an example of how exclusive quality meets affordable luxury

It’s exclusive to global duty free & travel retail. It’s of high quality, been produced in Belgium, Italy and Switzerland which are renowned worldwide for producing exquisite, high quality chocolate and it offers excellent value for the shopper. In summary, it’s a premium chocolate experience at affordable price,” says Brennan.

At the same time, exclusivity brings a level of weakness in a sense that it doesn’t have the brand recall from a consumer perspective. “To turn a negative to a positive we essentially have to work harder.

This is where the quality of the product comes in. Through targeted sampling, we are able to make the conversion. People are saying I don’t know the brand but the product is very good,” says Brennan.

Harison is a success story that could deliver incremental sales in a category that has low single digit growth. Brennan concludes: “This is a classic example of a little nugget that hasn’t been discovered yet. It’s my job to share the success story behind it.”

On the horizon

Asked about the strengths of the brand, Brennan answers with three words: “Exclusivity, quality and value. Research tells us that shoppers are looking for something special from the standard confectionery offer that is of high quality but at a fair price. The Harison brand ticks all the boxes from a shopper’s perspective.

Global Sales and Marketing Director Alan Brennan explains why Harison chocolate is catering to a unique opportunity in travel retail

CONFECTIONERY NEWS

Guylian to become first palm oil free Belgian Chocolates brand Last year Chocolaterie Guylian celebrated its 50th anniversary with the launch of Guylian Master’s Selection, a new premium range of flavored mini pralines in gift boxes. The brand also shared plans to further premiumize its portfolio and ambition to become the first palm oil free Belgian Chocolates brand.

The next two years will focus on the full Guylian product range becoming even more luxurious as all the products and packaging will be revamped and eventually be re-launched.

Going forward the logo, the baseline and brand story will all to be updated to reflect this new positioning.

For Generation Y, also known as Millennials, and for Generation Z, Post-Millennials, sustainability is a priority. Palm oil has a rising negative perception among consumers. It has been related to environmental, social and health concerns. Many chocolate brands are members of the Round Table on Sustainable Palm Oil (RSPO), but in 2018 Guylian pledged to go a step further and become the first palm oil free Belgian chocolates brand. “We are proud of that fact that there is no palm oil in our best-selling Sea Shell and Sea Horse Chocolates which are made from 100% pure cocoa butter and filled with Original Hazelnut Praliné and Dark Hazelnut Praliné, but our Chocolates with Truffle based fillings do contain palm oil at the moment.

Taking into account the rising importance of sustainability and

The infamous Guylian Sea Horse will be the first to receive a packaging makeover

health, we have taken the decision to remove palm oil from all our recipes,” shares Steven Candries, Sales Director of Guylian.

The brand will replace palm oil with shea butter and sunflower oil, which will result in smoother textured and even better tasting chocolates.

“These changes do of course increase our own costs, but we are doing it because we believe that it is the right thing to do,” says Candries. Guylian will also be replacing allergen soy lecithin with sunflower lecithin to enable more people to enjoy its products. Guylian Sea Horses will be the first product and packaging to be reworked and launched in 2018.

A piece of cake

Tortuga Rum Cake Bites offer bite size portions to self-indulge or share

34-year-old Caribbean-based Tortuga Rum Cake Company, a pioneer in commercially baked rum cakes, is bringing more excitement to its brand and product line-up with new and innovative options for its customers.

Tortuga announced they have launched a new product which aligns perfectly with their commitment to the travel retail confectionery market- Tortuga Rum Cake Bites. “The Golden Original Rum Cake with walnuts has long been the best selling rum cake; therefore, it is only natural that we would take what our customers love the most and package it in this bite size portion,” explains Marcus Simmonds CEO. This new innovation offers the Tortuga Rum Cake packaged in a convenient format, allowing customers to snack in a bite size portion. Packaged in a highly attractive, sleek, elegant gift box, which has a re-closable feature that is perfect for the moments where one may just want to self-indulge or share with a travel partner.

It’s also suitable for gifting and special occasions. Also, ideal for the health-conscious consumers, as each bite has only 53 calories. Each package includes ten individually wrapped rum cake bites, with a six-month shelf life the product will retail between US$8.99 and US$9.99.

Building on the success of its Caribbean and travel retail activations, this new product, will give the company an opportunity to leverage its brand in the individual consumption space, which has become a key focus in airports and cruise ports within the Caribbean and around the world. The creation of Tortuga Rum Cake Bites was also spearheaded by an active focus on innovation and a desire to stay current with consumer trends.

The brand’s larger portfolio can be found in all major Caribbean airports, seaports and many major North American airports. The launch rum will take place at selected airports across the Caribbean and at Miami International Airport. The goal is to sell Tortuga Rum Cake Bites globally, allowing the world to experience a taste of the Caribbean, no matter where they might be in the world. www.dutyfreemagazine.ca CONFECTIONERY

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Butlers Butlers Chocolate Collection contains flavors of Green Tea, Spiced Chai and Mango & Lemongrass, geared for the Asian region

Premium packaging conveys Butlers’ message

Chocolate brand Butlers is focusing on product and packaging to fuel ongoing growth

by JAS RYAT

W

hile still in the growth stages, Irish chocolate brand Butlers has shown a favorable increase in brand awareness throughout duty free. This year, the brand’s strategy is to support and grow the core range with a number of key launches.

Aisling Walsh, Marketing Director at Butlers, says the new Butlers Chocolate Collection was launched at TFWA Asia Pacific exhibition, where it was very well received by customers. “The packaging is striking and impactful on-shelf, while the box itself contains a really delicious assortment of chocolates, including some newly created flavors such as Mango + Lemongrass and Spiced Chai,” she enthuses. “In addition to this, we are

Packaging is crucial when conveying the premium brand message for Butlers as shown here with the Platinum Collection by Butlers

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rolling out to more airports our range of Drumshanbo Gunpowder Irish Gin chocolates, which has been performing well for us.”

The premium assortment was launched two years ago and has been well received by consumers and buyers alike. The box was created with the discerning international chocolate buyer in mind. Colorful Butlers mini-bars were also launched a year ago and continue to perform well. An inflight format was recently introduced, and the range will be extended this year.

Butlers’ home markets of Ireland and the UK are traditionally strong locations for the firm. However, the last few years have highlighted the growth in the Middle East and Asian regions. Says Walsh: “Our brand is now widely available in highprofile airport locations in these regions and is performing well there. We are very conscious of the needs and desires of customers in different regions and tailor our offer accordingly.”

New contemporary flavors

Butlers recently unveiled the Chocolate Collection at the Singapore show. The new assortment of luxury chocolates is presented in sophisticated, embossed ivory gift boxes with a sleeve in rich metallic tones of gold and bronze. The sleeve has a distinctive Art Deco feel with an elegant hoop-shaped reveal featuring three signature chocolates. The chocolates have been designed using popular Asian flavors such as Green Tea. These contemporary flavors aim to offer an exciting new assortment for international chocolate buyers. The range is available in three sizes with an alternative red sleeve for Christmas.

Packaging is crucial when conveying the brand message, especially as a luxury chocolate producer. Butlers has emphasized the premium look of the boxes with the Chocolate Collection. “We invest time and resource in carefully looking at all elements of our packaging and considering the customer journey and experience when enjoying one of our products. We are mindful that our brand is relatively new in some of the markets in which we are operating. Therefore, we need to ensure that our packaging is strong and impactful, and clear to consumers,” explains Walsh.

The brand is making headway across different global travel retail channels. Butlers’ consistent innovation and adaptation to market trends is successfully building brand awareness. Brand ambassadors and on-site trials continue to support conversion and share the Butlers message.