7 minute read
CONFECTIONERY: SWEET SUCCESS
SWEET SUCCESS
People may be more health conscious than ever, but nothing beats a sweet treat, writes Thomas Oakley-Newell.
With the current movement towards better for you offerings, you could be forgiven for believing that the confectionery category is in dire straits, but you would be wrong.
Despite consumers now being more measured in what they’re putting into their bodies, the desire for a sweet treat will always be there.
That need from consumers is evident through the 11.4 per cent growth the category experienced in the first half of 2021, as displayed in the AACS 2021 State of the Industry Half Year Report.
While all sub-categories helped drive the category’s growth over that period, the biggest improver was sugar confectionery, up 22.1 per cent and 22.9 per cent in the second quarter.
Guy Bennett, Brand Manager at GC Brands (recently rebranded from Grocery Corporation), said that consumers aren’t necessarily looking to abstain from treats but are just making more considered choices.
“Innovation offering functional benefits catering to those with dietary requirements is a huge space, and two of GC’s biggest launches into convenience in the next six months; Jelly Belly Vegan Chewy Candy and NOMO Chocolate are both vegan and allergen friendly.”
Stuart Alexander & Co., distributors of products such as Mentos, Hershey’s, Fisherman’s Friend, Werther’s, and Reece’s, is another company that is using the better for you trend to drive innovation.
Amanda Monzo of Stuart Alexander and Co. said they’ve noticed the emergence of the zero-sugar trend that has played out in beverages now reaching confectionery, as well as better for you products that have an absence of negatives.
“We’ve responded to this consumer trend with new Mentos Candy Sugar Free Chews 45g, available in two classic Mentos candy flavours ‘Peppermint’ and ‘Fruit’, made with no artificial sweeteners and in a recycle friendly cardboard flip top box. However, the trend to treat and indulge also continues to have an important role to play in helping consumers find balance in health and wellbeing.”
Another trend recognised by GC is a consumer desire for brands with a nostalgic value, and with all that’s happening in the world it’s no surprise Australians are looking to reconnect with brands and products that remind them of a happier, simpler time.
“As with many categories over the past few years, Australians are returning in droves to brands they know and trust. This is particularly felt for brands with strong heritage and nostalgia value. Amongst GC’s portfolio—Nerds, Jelly Belly and Gobstopper are brands which have gone from strength to strength over the past two years.
“Nerds’ core products, the 45g Grape/Strawberry box and 26g Rainbow Rope continue to delight sweet lovers while Jelly Belly’s range of 28g mixes have proven a hit with consumers who love to explore new flavours.”
THE YEAR UNWRAPPED
Navigating the past 12 months hasn’t been easy for suppliers due to the obstacles presented by Covid, such as lockdowns and pressure on the supply chain in not only Australia, but around the world.
The AACS 2020 State of Industry Report revealed that although there has been a decrease of 7.5 per cent in merchandise transactions and fewer shop visits per week (2.4 down from 2.8 in 2018), when consumers do visit shops in the P&C channel, they are spending 8.4 per cent more per transaction.
- Guy Bennett, Brand Manager, GC Brands
Stuart Alexander & Co. is excited about the opportunities 2022 presents and has a range of new products hitting the market such as Mentos Sugar Free, Mentos Candy Circus Fun Roll, Chupa Chups Incredible Chews, Reese’s Nutrageous, and Reese’s Sticks.
“Mentos Sugar Free Chews 45g are available in two classic Mentos Candy Flavours 'Peppermint' and 'Fruit', made with no artificial sweeteners and in a recycle-friendly cardboard flip-top box. The new Mentos Candy Circus Fun Roll is a delicious treat with three well-loved circus inspired candy flavours: Swirly Mega-Pop, Toffee Apple, and Raspberry Snow Cone.
“Chupa Chups Incredible Chews 45g are a delicious, longlasting, soft chew available in popular Cola and Strawberry flavours, in a convenient stick format with each chew individually wrapped, representing an opportunity to attract incremental shoppers into the novelty category through expanding the lifecycle of Chupa Chups targeting tweens and teens,” said Monzo.
The addition of the two new Reese’s products comes as no surprise given Reese’s strong growth of +123.2 per cent over the past half-year.
“Reese’s Nutrageous is a milk chocolate peanut bar packed with whole peanuts, peanut butter and caramel. Perfect for a quick on the go snack. While Reese’s Sticks are a lighter eat, delicious milk chocolate coated crispy wafers, layered with Reese’s famous peanut butter.”
EASE OF ACCESS
The importance of the P&C channel to confectionery cannot be understated, and Bennett says it is vitally important to GC on several levels.
“Firstly, the bottom line. As a business with a strong confectionery portfolio, P&C makes up over 20 per cent of confectionery revenue making it significant to the bottom line. As a brand building business, it is even more important. For young brands P&C outlets offer the opportunity to reach new consumers and offer products in impulse formats to shoppers who are likely in a different mindset vs that of their grocery shop. For established brands, being available everywhere you go is crucially important to staying top of mind and appearing popular.”
Monzo said the P&C channel is especially crucial to Stuart Alexander & Co. as it is the homeland for its gum and mint brand Mentos.
“P&C also offers a vital platform that allows us to creatively communicate our exciting innovation directly to consumers. With the support of retailers, we utilise in-store assets to encourage engagement and trial, which can lead to building a lasting relationship between consumer and brand.”
According to the AACS 2021 State of the Industry Half Year Report, gum, mint, and medicated bounced back from an 11.4 per cent decline in 2020 to +14 per cent in the first half, which was driven by a very strong +33.1 per cent growth in the second quarter.
Offering advice to retailers, Monzo said retailers should stock brands and products that meet current sugar reduction and better for you trends, as well as those indulgent products that offer a small moment of joy into consumers days and enhance their sense of wellbeing.
“Beverages are also one of the most shopped merchandise categories in the P&C store, so help encourage impulse purchase by locating confectionery on your shopper’s path to the cold beverage fridges.
- Amanda Monzo of Stuart Alexander and Co.
“Additionally, help build your shopper’s basket by encouraging a plus-one purchase via bundling complementary products such as coffee and mints, coffee and an indulgent chocolate or water with a sugar free treat.”
The AACS 2020 State of Industry Report showed that the channel has performed an increased role in the purchasing of ‘essential’ items with 47 per cent of shoppers using convenience stores instead of supermarkets, meaning a higher exposure to confectionery stocked within P&C.
