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CONFECTIONERY “Confectionery also has the opportunity to capitalise on the idea that people will want snack bundles delivered to their homes as they avoid cinemas, restaurants and bars in favour of home entertaining.” Such a trend, he adds, could give further impetus to partnerships, such as those between 7-Eleven, BP, Super Eats and Deliveroo. Ms Olliver-Burnside points out that before the pandemic, parents were battling with lunch-box restrictions and external perceptions of children consuming confectionery, whereas now, snacking at home is prevalent, which changes these existing dynamics. “So, it goes back to the treating element and familiarity,” she said. Both Mr Verstraten and Ms Olliver- Burnside cite the importance of a marketing tool that could be powerful: promotion of the ‘stay at home and treat yourself’ message during the COVID-19 restrictions. “The confectionery category really has the opportunity to play in the area of escapism associated with treats, because people are looking for comfort, reassurance and normality at this time,” Ms Olliver-Burnside said. “And what we’ve found is that chocolate bites and chocolate share bags work really well in this category as they lend themselves well to portion control, especially in scenarios where parents are working remotely and have their children at home with them. “This focus is coming through now, and we foresee it continuing into the future.” Nestlé partners up as local production bears fruit Nestlé Head of Marketing Confectionery Joyce Tan says confectionery sales in convenience are linked to fuel sales and, as a result of the coronavirus restrictions, demand for confectionery generally has declined as consumers spend more time at home. The upside to this, though, is increased demand for grocery products and the broader Nestlé portfolio in convenience outlets. “Shoppers are taking advantage of the availability of these products in their local convenience outlets to minimise trips and exposure to large crowds,” Ms Tan told Convenience World. She adds that, during the pandemic, local production has proven advantageous to Nestlé. “While convenience shopper traffic is down, this trend is not universal across the market,” she said. “Local production of confectionery has enabled us to respond quickly to changing circumstances and to ensure we maximise availability of our key products.” Ms Tan says Nestlé has enjoyed a solid presence in the convenience and impulse channel for many years, during which time it has developed strong partnerships with both its wholesale and retail partners. “We’re very proud of these relationships and even prouder of the support that we’ve been able to provide during this time,” she said. As to new products, she says they play a crucial role in confectionery, and Nestlé anticipates this will remain unchanged. “We have a number of exciting new products that are in-store now, such as KitKat Gooey Caramel, KitKat Mint Cookie Fudge, Allen’s Sourz Tangy Randoms and Milkybar Whirl, and new products will be coming to the shelves in the coming months,” Ms Tan said. “Both the KitKat and Allen’s brands have a proven record of bringing exciting new news to the convenience channel and this will continue, whether it be our new KitKat Filled bars or our innovative Milkybar Whirl. We remain focused on driving innovation in confectionery.” Report confirms best sales since 2016 The latest AACS State of the Industry Report, for 2019, shows that confectionery grew 2.1 per cent, backed by 2018’s slight growth (AACS, CMA Shopper Insights, IRI, retailer information). Sales performance was $493 million, up 2.1 per cent ($10 million) on 2018’s flat growth of 0.1 per cent. “This is the most robust result since 2016,” AACS CEO Jeff Rogut commented. Value was up $10 million in 2019 after delivering flat growth in 2018 and declining $16 million in 2017, margin percentage was down one per cent to 45.9 per cent, impacting margin contribution, which fell by $1 million. The category dollar share remained consistent with 2018 at 5.6 per cent. Mr Rogut points out that nutritional bars, which now form part of the confectionery category, have maintained the strongest growth rate at 14 per cent, although they still represent under four per cent of category value. “Chocolate bars are the most favoured in confectionery, accounting for 30.6 per cent of all confectionery sales,” Mr Rogut said. The report shows that: • Chocolate confectionery’s dollar share was 57.3 per cent and its 2019 dollar growth 1.1 per cent versus 2018 dollar growth of 1.6 per cent. • Sugar confectionery’s dollar share was 26.9 per cent and its 2019 dollar growth 4.5 per cent versus 2018 dollar growth of -2.4 per cent • Gum and mints’ dollar share was 12 per cent and its 2019 dollar growth 1.6 per cent versus 2018 dollar growth of -1.5 per cent • Nutritional bars’ dollar share was 3.8 per cent and its dollar growth 14 per cent versus 2018 dollar growth of 17 per cent. Confectionery purchases, which centre around an intention to buy fuel at 29 per cent, are based on impulse, with a fifth of shoppers buying more items than intended, Mr Rogut says. Promotions also play a big role, with 32 per cent of confectionery bought on promotion at an average spend of $11.30, with the average basket spend including confectionery at $10.50. The report reveals that the confectionery shopper swung from a slight male over-index to an even split between male and female, significantly different to the overall channel demographics and that frequency of visits was down from 2.1 to 1.9 visits and 33 per cent below the channel average. JUL/AUG, 2020 CONVENIENCE WORLD 45