While confectionery in convenience cannot be described as buoyant, word on the ground is that true innovation and a spirit of reimagining products could do much to spark sales.
As Australasian Association of Convenience Stores CEO Jeff Rogut tells Convenience World, the channel’s confectionery market is flat.
Ferndale Confectionery General Manager Leigh Edward agrees with Mr Rogut.
“The bottom line is that the confectionery market is very flat at the moment and it’s challenging to find growth in existing brands,” Mr Edward said.
This plateau, he says, extends to the grocery sector.
Nestlé: 2019 no bed of roses for sector
Nestlé Head of Marketing for Confectionery Joyce Tan says 2019 was a challenging year in convenience, with the category growing 0.6% [Nielsen Scantrack Confectionery, AUS Convenience 2019].
However, the food and beverage company was a key contributor to growing the category, with 7.7% growth overall.
Total chocolate grew 0.6%, with KitKat being a dominant player at more than 10% following successful flavour rotations, key NPD launches, a focus on distribution and the continued growth of its core SKUs.
KitKat (core) 45g grew 12.4%; KitKat Chunky 50g grew 26%; and Aero Peppermint 60g grew 21.5%.
The food and beverage company’s KitKat Gold Whirl 45g is also enjoying stellar results while its KitKat Double Cookies & Cream and KitKat Honeycomb have been in-store from January this year.
And for Easter it had a KitKat Bunny 29g on offer (RRP $1).
As to “bite size”, its KitKat, and Milkybar are expanding that way in 2020, with Allen’s choc coated bananas and raspberries, KitKat Snak’ It and Milkybar Bites.
Category developments
Confectionery developments at Nestlé include expanding its offer in white chocolate with Milkybar Cookie Bites 140g and marrying Allen’s “fan-favourite, mouth-watering” raspberry lollies or bananas with milk chocolate.
The launch also marks the first Allen’s move into chocolate bags, with Allen’s Sour Tangy Randoms 170g being launched nationally during March.
Next on the scene as well are Soothers Immune+, being launched with RRP of $1.75.
These come in an orange flavour, containing zinc, vitamin C, menthol and eucalyptus oil “to support a healthy immune system and soothe a dry sore throat”.
YES! Nut Bars represent another Nestle development, with Dark & Salty (dark choc sea salt nut bar), Be Berry Nutty (cranberry and choc nut bar) and Berry Chiafull (raspberry, apple and chia pressed fruit bar) variants.
Mr Rogut says that while confectionery is seen as a treat and has its place as a treat, there is no question that “current health awareness” and “fear of consuming too much sugar” have impacted and will continue to impact convenience, as well as any other retail outlets that sell confectionery.
Innovation focus overrides all
Mr Rogut emphasises, the trend towards innovation is strong and necessary in the category.
“It’s often disappointing to see how little real innovation there is, which is much needed,” he told Convenience World.
According to Mr Edward, the only growth Ferndale Confectionery is attracting is through innovation, which he must be “true innovation”.
In line with this Robern Menz recently launched a new flavour of Menz FruChoc: Mango.
The confectionery company also launched a 50g Dark version of its Violet Crumble product last year, which is proving popular, particularly in convenience, as well as launching a new Violet Crumble Dark 180g (bites) Bag into Coles.
For Easter it had on offer a Violet Crumble 30g Bunny nationally.
“Confectionery has always been about fun, and the appetite for something creative and cute doesn’t seem to be slowing down anytime soon,” a Robern Menz spokesperson said.
