Category Focus: Boxed Confectionery

Friday, 21 November 2008

Boxed Confectionery is an important sales driver for retailers in the run-up to Christmas. Last year, 78% of consumers purchased some form of boxed chocolates in the 12 weeks ending 30 December, market research firm TNS says.

Although boxed confectionery sales fell in value by 3.2% during this period compared with the same 12 weeks in 2006, more packs were sold, the TNS figures show.

Boxed Selflines - packs containing a single variety - were most popular among shoppers, with a market share of 42% and sales value of £146m. They were followed by Twist Wrap Assortments (worth £136m), Milk and Plain Assortments (£35m) and Liqueur Chocolates (£14m).

The Milk Assortment category had a value of £9m, while Plain Assortments took £6m. The main reason overall values dropped was a fall in the typical price paid per pack.

Because Twist Wrap Assortments fell on average by 35p, this had an influence on the overall market, according to TNS. In 2007, shoppers spent an average of 75p less than 2006 in the category, but bought the same number of products.

Private Label overtook Quality Street as the best performing brand, with Cadbury's Roses in third. Celebrations were down to fourth, with Heroes in fifth and Terry's Chocolate Orange next.

So what can retailers do to see success in the Boxed Confectionery category this Christmas?

Graham Walker, Nestlé trade communications manager, says: "In 2007 there were 305 confectionery products for retailers to choose from, but just 72 delivered 80% of sales.

"Getting the right range is the most important factor in ensuring that independent retailers make the most of this vital seasonal opportunity."

Nestlé's range is to be relaunched in smaller packs this year.

Apart from the environmental benefits of smaller packaging, Walker says: "Reduced packaging has major benefits for retailers as smaller packs lead to better shelf and space utilisation."

The company also points out that confectionery is the biggest and fastest-growing area of small gifts and "selection packs make the perfect treat or stocking filler and should be stocked early to drive repeat purchase".

Craig Barker, Ferrero UK sales director, advises retailers to "have the best selling brands sited prominently".

He says: "Christmas accounts for a third of total Boxed Chocolate sales, and during this period they deliver the highest proportion of value sales in the confectionery market."

There is plenty of marketing planned for this year with Nestlé investing £11.5m to help drive footfall in stores.

Ferrero is sponsoring the Desperate Housewives series during the Christmas period as part of an overall £5.5m campaign across television and press.

So what's new on the market this year? Nestlé's Matchmakers have been rebranded under the Quality Street banner, a change supported by PR, money-off coupons and sampling.

After Eight is set to benefit from a new pack design. This is being backed by a £3m media campaign focussing on the core 300g pack, which is available with 50% extra free.

Ferrero's has launched Rondnoir, a dark chocolate choice. It was sampled by more than seven million people last Christmas as part of its Collection Pack, with positive feedback.