Home' Convenience and Impulse Retailing : February 2010 Contents February 2010 | C&I | www.c-store.com.au
AT A GLANCE
• Total channel split of candy
confectionery is 76% through
grocery, 14% through route and 10%
• Some 70-80% of confectionery
sales in major P&C accounts are on
promotion and the vast majority of
P&C promotions are multi-buys or
• Confectionery space is being
threatened by the emergence of
energy shots, and to a lesser extent,
mini personal care products which
are taking up counter space
• Sugar confectionery is well placed
to offer consumers healthier options
as it is portionable and most often
shared amongst family and friends
SKU's (highly impulsive categories)
closest to the point of purchase. It
says that, given the growth of sugar
confectionery, it would be interesting
to see if they play a greater role
on registers in the near future.
"It is recommended to ensure that
offers are easily accessible and correctly
blocked," Mr McCausland said. "Impulse
growth is currently being driven within
grocery by consumers purchasing larger
packs and says the segment is well
placed to grow 4-5% over the next few
Promotions & visibility drive
While Ms Marsh acknowledges that
At a minimum, Nestlé recommends
placing the Top 10 Lolly Bags in the
express lane / window run to maximise
"Sugar confectionery is a category,
with strong emotional appeal and
high expandability," Mr Broome said.
"It is driven by impulse purchase so
significant sales increases will result
if confectionery is made unmissable
via creative, engaging and appropriate
presentation at all possible points of
interaction in a store."
Another of the big sugar confectionery
players, Stuart Alexander, operates
in three segments within sugar
confectionery: Candy/mints; Gum; and
Mentos rolls account for approximately
70% of its sales in P&C, with the rest of
its portfolio, including Mentos Gum,
Fisherman's Friend and Werthers making
up the other 30%. The company says
Too wide a product assortment creates a misery
of choice for shoppers so it s important to
maintain a balance between offering variety and
making the fixture easy to shop. John Broome,
purchases are all about making sure the
product is easily accessible and visible,
with appropriate stock weight."
As sugar confectionery is an impulsive
buy, ranging a wide variety is clearly
one way to increase conversion into
unplanned purchases, particularly if a
company has different offers to satisfy
For example, Cadbury says stocking
The Natural Confectionery for 'jelly'
offering, Pascall as a candy/choc sharing
offering, and Chupa Chups 'for me' offer,
is quite differentiated and therefore
minimises cannibalisation of each other
and maximises potential sales.
Wrigley, which produces a wide range
of products including the highly popular
Eclipse mints, agrees that the need for
choice on shelf is paramount.
"Retailers should range a broad mix of
pack types and brands to ensure sales are
not missed in-store," said Virginia Marsh,
Wrigley's Retail Activation manager.
"Some 30% of sugar confectionery
buyers would not purchase a product at
all if their preferred SKU was missing."
Wrigley says that sugar confectionery
in P&C, The Natural Confectionery
Company, Allen's, Starburst and Skittles
are the dominant players, she says
market share fluctuates based on deep
"In any given week, at least one sugar
confectionery brand is on promotion,"
she said. "Market leadership is generally
dictated by which brand is on promotion
in most accounts for the period."
Certainly, promotions are becoming
increasingly important in P&C. 70-80%
of confectionery sales in major P&C
accounts are on promotion and the vast
majority of P&C promotions are multi-
buys or combos, and consumers are now
trained to expect to buy at least two of
a product to get a good price. Therefore
promotions are great volume drivers.
"Outside of price, visibility can be
used to drive sales of this category
harder," Nestlé's Mr Broome said. "HIM!
tells us that the number one reason
people giving for buying confectionery
is because 'they saw it in store' which is
often a challenge for lollies as lolly bags
are commonly merchandised in the aisle
where shoppers don't often go."
Promoting Lifesavers for the first time since 2002, Nestl s aim is to communicate
the nostalgia and retro heritage of the brand in a modern, relevant way.
• The Sugar confectionery
category is holding steady
with almost flat growth of
0.3%. This is behind the
growth experienced by Total
• There is only a very small
private label presence and no
stand out segment of brand
activity during 2009.
Marketing -- Confectionery and
Snacks, says while sugar confectionery
consumers are the same regardless
of channel, they have different needs
depending on where they are shopping.
"People will choose between a
supermarket and a convenience store
based on their shopping mission,
location of store, and also their needs,"
he said. "The primary shopping missions
for the convenience channel are fuel,
top-up, and distress, so we offer
products in this channel to meet that
mission and consumer need."
Typically, therefore, in the impulse
channels there is a focus on smaller,
more portable pack types.
Top five brands in Convenience
The top five brands in sugar confectionery
are Allen's, Eclipse, The Natural
Confectionery Company, Mentos and
Starburst, and these all offer shoppers
a mix of formats, lolly bags, mints and
Nestlé, responsible for top brands
like Allen's and Lifesavers, believes that
having the optimum assortment for your
shopper profile is key to success and will
maximise the Return on Investment on
"Too wide a product assortment
creates a 'misery of choice' for shoppers
so it's important to maintain a balance
between offering variety and making
the fixture easy to shop," said Mr
Broome. "Signage at the shelf can both
aid navigation and highlight feature
products, and various types of secondary
display units are already available and
could be used more systematically and
widely to interrupt and engage with the
Not surprisingly, Cadbury -- which
owns the Natural Confectionery
Company, Pascall and Chupa Chups
brands -- agrees.
"It is always good to have wider variety
in store aisles, as consumers today are
very particular about what they want,"
said Cadbury's Senior Brand manager,
are good places to display promotional
activity, and it is recommended to
display top selling SKUs so that the
gondola, which is typically smaller than
section, is not cluttered."
Cadbury says that most shoppers
will shop the 'aisle', and the gondola
will bring promotions to attention and
having the most popular SKUs on the
gondola will maximise conversion rates.
"C&I are lucky enough to have
large 'register' sections to display
confectionery," said Mr McCausland. "We
have created a merchandising solution
that houses both Chupa Chups and
Freddo, ideal for placement on counter,
and this point of buying unit has driven
a large percentage of the growth we are
experiencing across these brands."
Cadbury says this success highlights
the importance of ranging the correct
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