Chocolate is a key driver of impulse purchases in the convenience sector and is very often the first destination for consumers looking for a ‘sweet treat’.
The sector has experienced several shifts in recent years, including the growth of sharing packs and the rise of premium products for consumers to trade up to. Reasons for buying into the category have also changed. Recent research from the Retail Data Partnership shows a 1.1% year-on-year decline in chocolate sales through independent c-stores, but within that an increase in sales of sharing formats and a growing interest in healthier alternatives. The research also suggests consumers are increasingly buying chocolate confectionery as a special treat rather than a daily snack.
Healthy trends
Russell Goldman, buying director at wholesaler and distributor Rayburn, says the demand for chocolate confectionery will always be high, but it is important that retailers adapt to current trends and tailor their stock to their customers’ preferences. Andy Mutton, managing director at Storck UK, says: “People are leading increasingly busy and health-conscious lifestyles and they are constantly on the lookout for a convenient snack that offers a better choice to most confectionery products.” That trend can be seen in several recent launches from independent brands, such as Gnaw Chocolate, which last month (July) launched two 72% dark cocoa chocolate bars, which the company says tap into the growing number of consumers making lifestyle choices around the type of food they eat.
Major brands are also latching on to the health trend. In March this year, Nestlé rolled out a new Milkybar variant called Milkybar Wowsomes, which uses technology that creates “aerated, porous particles of sugar” said to give consumers the illusion that the chocolate they are eating contains the same amount of sugar as a regular bar. Milkybar Wowsomes contains 30% less sugar than similar chocolate products and contains no artificial sweeteners, preservatives, colours or flavourings.
Mondelēz International recently announced it will be launching a 30% less sugar Cadbury Dairy Milk variant, using technology to reduce the amount of sugar without changing the structure of the chocolate itself. Glenn Caton, president of Mondelēz International, northern Europe, says: “We recognise people want to manage their sugar intake, which is why we have worked to create a Cadbury Dairy Milk bar with 30% less sugar as part of our wider sugar-reduction plans.”
Bags and bars
Alongside the health trend, there has been an increase in sales of sharing bags and tablet formats, according to figures from the Retail Data Partnership. Susan Nash, trade communications manager at Mondelēz International, says the chocolate bags segment is key to the sharing segment. The company launched a range of sharing bags last year, including Cadbury Fudge Minis, Cadbury Curly Wurly Squirlies, Cadbury Picnic Bites and Cadbury Oreo Bites. She says: “We know consumers eat our products when they want to create a moment of indulgence or satisfy a snack occasion. We have introduced a number of innovations over the past 12 months that cater to these need-states, helping to drive growth in the category.” Mondelēz extended its Cadbury Dairy Milk with Oreo range in February this year with the addition of Cadbury Dairy Milk Oreo Sandwich, available in a tablet format. The company also brought back its Tiffin variant in a tablet format in July last year.
Single bars should not be forgotten, however, as these are still an important part of the chocolate confectionery category. According to Nash, they can play a huge role in driving incremental sales and offering consumers “treating” options.
Treat options
Mondelēz says it owns five out of 10 of the top-selling products in the singles category, including Twirl, Wispa, Cadbury Dairy Milk, Boost and Wispa Gold. This summer, the company is running an on-pack competition exclusive to the independent convenience channel across a range of single bars, offering prizes such as days out to attraction like Chessington World of Adventures, Go Ape and London Zoo.
Consumers looking for a treat option are also more willing to trade up to more-premium products which, according to Nash, have driven growth in the confectionery category, with consumer spending up 1.6%. Dark chocolate is often seen as a more-premium product, one that is popular with older consumers, and with an ageing population it is important to consider stocking dark chocolate varieties to attract these customers to the fixture. Mondelēz International recently added a dark chocolate praline box to its Green & Black’s portfolio to tap into this trend.
Tastes and textures
Many consumers are looking for confectionery with a variety of different flavours and textures. Figures from the Retail Data Partnership show assortment varieties grew by 5.6% over the past two years as the segment attracted 10% more shoppers. Andrew Ovens, marketing director at Big Bear Confectionery, says: “Products that provide variety are very popular in the chocolate confectionery category at the moment. The ‘mix-up’ options in the sharing bags category are a big hit, as customers get a range of flavours and textures in a single purchase.” The company has launched Poppets Movie Mix containing four different flavours – orange fondant, dairy fudge, chocolate shortcake and raisins – which the company says provides an “extra option” to consumers who already enjoy the existing range.
In February this year, Nestlé launched Kit Kat Senses, a boxed assortment of mini Kit Kat pieces in Salted Caramel, Hazelnut and Double Chocolate flavours. The company says the current boxed chocolate brands are typically used for traditional gifting and appeal to older shoppers. It claims young adult shoppers are “keen to try something new and different”.
Mars Wrigley Confectionery recently launched a limited edition Crunchy Caramel M&M’s variant in treat bag and pouch formats, as the brand says consumers “love crunchy textures and caramel tastes”. Lauren George, brand and trade PR manager at Mars Wrigley, says: “With the bite-size category continuing to grow year on year, this exciting new offering provides retailers with a great opportunity to tap into this trend, boosting those all-important impulse purchases.”
Seasonal products
Chocolate confectionery is, of course, a popular gifting item during seasonal occasions such as Christmas, Easter, Valentine’s Day and Halloween. Levi Boorer, customer development director at Ferrero, says: “It is important to offer retailers products and ranges that help them cater for various festive shopping needs, whether it is to gift, to share or simply to treat and enjoy with loved ones.” Nash at Mondelēz says confectionery is the second-biggest category and number one incremental category at Christmas, especially self-eat products, which have increased by 6.5% according to the Retail Data Partnership.
Easter is also a popular occasion for chocolate confectionery and Mondelēz International holds a 47% share of the market. It says one Cadbury Creme Egg is sold every 10 seconds during this season and 50% of all shell eggs sold were Mondelēz International SKUs. The company ran a “Hunt the White Creme Egg” competition across independent convenience stores this year, encouraging consumers to find a white chocolate Creme Egg in their local convenience store to win £1,000.
Ovens at Big Bear says: “Seasonal and themed displays are always a good way to bring a holiday or gifting season to a shopper’s attention. Creating a dedicated display with boxed confectionery is a great way to catch the eye of those shopping for last-minute gifts.”
