Page 22

 Sugar Confectionery Report

Spatial awareness N

o ifs, no buts – sugar suppliers have a bone to pick with travel retailers. In a nutshell, they have an issue with space – or lack of it. The sugar sub-category still accounts for only a 20% share of the total confectionery category in travel retail, with chocolate taking the lion’s share of space, while in the domestic market sugar has around a 50% share of space. All the leading suppliers we talked to for this feature agree: there’s a big disparity here, and while they know that the hallowed half share will never be reached in travel retail, they’re gunning for more space. And here’s how they plan on going about it. Part of the solution to the spatial conundrum lies in the impulse purchase arena of the checkout, many sugar suppliers believe. According to Andreas Reckart, Vice President Sales Middle East & Travel Retail at Swiss herb drop manufacturer Ricola, gifting and sharing are big in travel retail, but the really big potential is impulse purchases for individual consumption. He points to the small products that Ricola has developed specially for cashpoint in travel retail stores – namely, a 75g tin of sugar-free herbal drops in different flavors. “It’s very difficult to get space at the cashpoint,” Reckart admits. “Some retailers understand the potential of this space – they see that it has been maxed out in the domestic market. In travel retail, we are far, far away from that. There’s a big opportunity, in my opinion, to generate additional business – on top of their regular sales. The impulse business is not planned. I believe there’s a lot to be done as an industry.” To make further progress in the ongoing battle for store space, Reckart thinks a joint effort is called for among sugar suppliers. “As a [confectionery] category we talk – but in sugar, there’s no real alignment in our portfolios. For example, some companies are targeting the children’s gifting sector and want big category space, not just at the checkout. Confectionery is a niche and sugar is a niche within that, so we find it difficult to find a voice and to be heard. If there something we can do together, that would be good.”

Driving gum sales

For confectionery giant Mars International Travel Retail (MITR), whose biggest sugar line is Skittles but gum has a lot of potential, and this product line in particular has a role to play at checkouts.

22 JUNE 2019

Leading sugar confectionery suppliers spark an engaging debate about how to boost the space given over to the sub-category in travel retail and how to boost conversion by MARY JANE PITTILLA

Ricola taps the big potential of impulse purchases for individual consumption by offering 75g and 200g tins

Maud Geerbex, Corporate Affairs Director, MITR: “There’s a big opportunity at the checkout in general, and gum is a checkout item – it adds a few extra dollars to your basket. People won’t necessarily buy it from a wallbay. As an industry we can do much more at the checkout, and that will also drive gum sales.” For Perfetti Van Melle (PVM), whose best-selling item is the travel retail exclusive Mega Chup lollipop, the company has specially selected the 10 items that are its top-sellers – including smaller items for the cash till area. Says PVM Brand Manager Travel Retail Femke van Veen: “We have to make sure our new travel retail exclusive products are listed, and cash till items also – it’s a focus for retailers. Consumers expect to find gum at the cash till, and that’s also our focus.” Another part of the solution, some suppliers believe, is listening to what consumers actually want. Cloetta aims to offer a full category solution with both sugar and chocolate products, including its travel retail exclusive ranges. Its best-selling travel retail (hero) brand is The Jelly Bean Factory, targeted

Profile for Global Marketing Company Ltd

Duty Free Magazine's Confectionery & Fine Food Special Issue 2019  

Duty Free Magazine's Confectionery & Fine Food Special Issue 2019