Extra Fusion flavour

Category Focus: Mints & Gum

The power of npd to stimulate product growth in a category should never be underestimated.

Nowhere has that been more apparent recently than in confectionery and specifically mints and chewing gum. Fiona Briggs reports

In 2007, Cadbury Trebor Bassett (CTB) entered the chewing gum category in the UK with the launch of its Trident brand.

CTB had one thing on its mind – to reverse the decline in gum sales and boost pack consumption with a brand already worth $1bn worldwide.

It worked. The Trident launch and subsequent counter attack by brand leader Wrigley drove 17.6% growth in gum overall in 2007, according to TNS Worldpanel.

Put that into perspective. The total npd in the confectionery category last year accounted for 17% of consumer spend, with the remaining 83% from existing lines.

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Wrigley drives chewing gum category

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Take-home confectionery market share 52 w/e 24 February 2008
Source: TNS Worldpanel

52 w/e 24 Feb 08 Value £000s Share £% % YR/Yr

Total Market Confectionery 2530093 100 7.7

Everyday Chocolate 975217 38.4 8.4

Boxed/Assorted Chocolate 363588 14.3 0.3

Novelty/Seasonal Chocolate 368378 14.5 18

Sugar Sweets 602046 23.9 5.5

Chewing Gum & Bubble Gum 96021 3.8 17.6

Mints 90627 3.6 -1.9

Cough/Throat Lozenges 34218 1.4 13.6

Source: TNS Worldpanel

“The big story in npd last year occurred in the gum market with Cadbury Trebor Bassett's launch of Trident chewing gum,” says TNS analyst Will Palmer.

“In a stagnant market dominated by Wrigley, the launch of Trident has reinvigorated the market, arresting the decline in shoppers with new fruity flavours.

“With 17.6% growth in gum overall, the effect of npd in this sector of confectionery is very apparent.”

Fast forward one year and the brand's respective shares have settled.

Wrigley cites Nielsen data for the week ending 12 January 2008, which gives it an 88.6% share of the total gum category and rival Trident, which peaked at 14.4% at launch, a 7.6% stake.

According to Wrigley, its Extra brand has increased by 9% in the past year and Orbit has enjoyed volume growth of 5.6%.

The importance of innovation is highlighted by a further Wrigley revelation – a third of its sales come from products that are less than five years old.

Flavour and fun
As well as kick-starting sales, CTB's launch of its Trident Splash and Soft products at the beginning of last year put gum firmly back in the confectionery category with fruit flavoured lines. Wrigley, of course, responded.

It launched minty and fruity Extra Fusion in June, Extra Fusion sugarfree in September and a new Black Mint flavour for Airwaves in December.

Both brands claim their new lines meet a consumer need state that provides enjoyment alongside refreshment.

Health is also a driving trend with sugar free variants the “status quo” in chewing gum, according to market research company Mintel.

Wrigley agrees. Speaking in December 2007 managing director Gharry Eccles said the brand was well positioned going forward because of the sugar free nature of gum or what he termed “an absence of negatives and presence of positives”.

Mintel predicts the trend will move beyond sugar free products into more functional dental benefits and gum is poised “to become a conduit for vitamins, minerals, prebiotics, probiotics and other supplements”.

Packaging
New pack formats have boosted the category too. CTB introduced blister packs for Trident Splash and envelope packs for Trident Soft in a bid to promote shelf stand out.

Wrigley, meanwhile, added a bottle format pack for 60 pieces.

Mints
Mints, which have a similar share of the total confectionery market as gum, 3.6% and 3.8% respectively, have performed less well. According to TNS data, mint sales fell by 1.9% in the year to 24 February 2008.

However, a report from Mintel suggests mints are beginning to see a small return to growth, driven by npd and packaging.

And Hancocks, the confectionery specialist wholesaler to the independent trade, predicts 2008 will be the year for mints.

Purchasing director Richard Brittle says: “Manufacturers have concentrated on gum to the exclusion of mints, with regard to npd. But this situation is due to change. There has also been notably positive effect on the sale of mints due to the smoking ban.”

Brittle reckons packaging innovation, already popular in gum, will give mints a lift and highlights Little i mints as an example of creativity in this sector.

Elsewhere, new pack formats have boosted brands such as Polo and Fox's.

The former's pouch style bag is reported to have increased its share from 14.9% in 2006 to 17.4% in 2007 (Nielsen MAT 15 December 2007).

If the chewing gum category is anything to go by, new developments should breath fresh air back into the mints market.

Retailer share and confectionery market share

Retailer Market Shares: Total Grocery and Confectionery Market

Retailers Total Grocery Value Shares % Confectionery Market Value Shares %

Total Tesco 27.5 22.5

Total Asda 13.9 12.7

Total Sainsbury's 14.8 12.3

Total Morrisons >10.6 9.5

Total Co-op 3.9 5.1

Marks & Spencer 3.3 3.9

Woolworths 0.2 3.7

Total Independents & Symbols 1.8 3.5

Total Somerfield 3.4 3.3

Aldi 2.0 2.4

Source: TNS Worldpanel

52 weeks ending 24 Feburary 2008

Top Confectionery Take-Home brands

Top Confectionery Branding Rankings

This Year Last year Brand

1 = Cadbury Dairy Milk

2 + Maltesers

3 - Quality Street

4 = Wrigley's Extra

5 + Cadbury Roses

6 = Mars Bar

7 - Celebrations

8 = Cadbury Heroes

9 + Galaxy Milk

10 + Toblerone Bar

Source: TNS Worldpanel

52 weeks ending 24 February 2008

Product Innovation: % of Consumer Spend on NPD

New Products 17%

Existing Products 83%

Confectionary Category Market Shares Graph

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