Home' Convenience and Impulse Retailing : October 2010 Contents Confectionery Category Management
www.c-store.com.au | C&I | October 2010
The sweetest category of all is well worth a closer look
A few short seconds inside the average
convenience and impulse outlet is all it
would take the uninitiated visitor to realise
that confectionery is absolutely critical to
the success of that business.
The wide range available and its
prominent display can only mean one thing
... the category is a proven profit maker!
Nonetheless, it is not one that can be taken
The economic climate means that, in
general, Australians have less money
to spend on non-essential items but,
more encouragingly, confectionery can
sometimes be seen by consumers as an
affordable pick-me-up ... a fact that can
help it ride out the rough times better than
According to the most recent AACS state
of the industry report, 60% of customers
who come in to a convenience and impulse
outlet store seeking a treat end up buying
confectionery. The same report reveals
that 12% of people who go into a store to
buy a drink will also buy confectionery.
Clearly then, as with all highly impulsive
categories, effective merchandising and
strong stock control are crucial.
The challenge: understand
"The challenge for both retailers and
suppliers is the impulsiveness of each
category which over the past year has
reduced," said the AACS report.
"Nearly 80% of all shoppers knew exactly
what they were purchasing in store and
for the first time actual spend was in line
with intended spend, perhaps suggesting
that shoppers are more planned and value
conscious due to the economic uncertainty."
According to Nielsen ScanTrack
Convenience data current to the start of this
year, confectionery as a whole represents
8.4% of shop sales, with sugar and mints
combined representing about 28% of that,
and bars/impulse some 24%, with blocks,
chewing gum, children's confectionery,
medicated and occasion also contributing.
Confectionery then is a complex beast
and a thorough understanding of all of
the segments and their differing consumer
appeal is vital for C&I operators seeking to
maximise profit potential.
Bars though are the biggest segment
within convenience and overall growth here
is being driven by medium bars. Nestlé,
Masterfoods and Cadbury, the three biggest
manufacturers in medium bars, are all
in growth, with Mars 2packs and Kit Kat 4
Finger performing especially strongly.
"New product development typically
drives this segment forward and over the
past year we have seen successful entrants
like Chokito," said a Nestlé spokesperson.
"Despite the latest quarter showing
strong growth on established SKUs in Mars
and Snickers 2packs, continued success is
purely dependent on the evolution of new
Grasp the trends: offer tailored
Nestlé says that manufacturers therefore
has been given wide market acceptance and
has given a massive lift to gum, is proof of the
positive effect product innovation can have.
Chocolate blocks is, of course, a much
smaller segment in convenience than it is
through other channels and is in decline
overall. However, the largest SKU -- Cadbury
Dairy Milk 200g -- is still performing well and
is growing strongly.
Medicated is another segment which has
been having its struggles of late, despite
the growth shown by its largest SKU, Butter
Menthol. Of course, within convenience
• Confectionery is the most
impulsive category with
nearly a third of purchases
• Confectionery has the
second highest promotional
• Males are more likely to buy
confectionery on promotion
need to grasp consumer trends and offer
tailored product solutions.
Gum is certainly the strongest growing
segment in convenience at the moment and
market leader Wrigley is playing its part in
that. Success stories such as Wrigley 5, which
outlets, medicated shares a precious amount
of counter real estate with two other very
aggressive segments in chocolate bars and
gum, both of which, as we have already seen,
are growing strongly.
"The space for the medicated range has
Allen's Snakes Alive 200g and Party Mix 190g are Nestlé's leading products and both are
currently in growth: an above-the-line campaign around the Allen's Bag range is being
supported with in-store visibility and promotions.
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