Home' Convenience and Impulse Retailing : June July 2014 Contents June / July 2014 | C&I | www.c-store.com.au
Both brands offer an extensive range and invest
heavily in regular new product releases that ser ve
to generate consumer interest in the categor y.
A perfect example of the positive impact
that new innovation can have on sugar
confectioner y sales came with the Natural
Confectioner y Company’s launch of Jelly Joiners
in 2012. The chance to use jelly pieces specially
designed to be joined together to combine
flavours, proved irresistible to consumers and
generated a big sales lift in the categor y.
Mondelez Australia is hoping to have similar
success with its launch earlier this year of Sour
Patch Kids, a brand which has a unique sour
then sweet taste and is targeted at teens. The
product is available in a family bag, sharepack
and a single ser ve pack. Each pack contains an
assor tment of five fun flavours: Lime, Lemon,
Raspberry, Orange, and Blackcurrant.
Mondelez Australia says that teenage customers
may find current lollies too ‘ kiddie’ and that
Sour Patch is intended to talk directly to this
audience. It has high hopes for the brand
through both grocer y and convenience.
Stuar t Alexander, which markets and
distributes brands such as Fisherman’s Friend,
Werther’s Original, Mentos and Chupa Chups,
has also been ver y busy in the innovation
depar tment. It has introduced new Spearmint
Fisherman’s Friend, a Mentos Ver y Berr y, and
Chupa Chups Fairy Floss Bubble Gum.
The company has also responded to the health
and wellness trend by launching Wer ther’s Sugar
Free Candies in an ‘on the go’ flip top box format
especially for the convenience channel. Stuar t
Alexander says that there is a strong demand
for packs that suit different consumer needs
and occasions based on what channel they are
shopping in. T he oppor tunity in convenience is
the single consumption impulse pack as some
consumers prefer to purchase a pack size that
meets their single consumption needs. However
there has also been a trend towards ‘travel
packs’ which may mean sharing packs or a pack
that can be sealed and left in the car or bag.
While the big players such as Nestle Australia,
Mondelez, Stuar t Alexander and Wrigley - which
is responsible for the fast-growing Starburst
and Skittles brands - have ensured there has
been a steady stream of sugar confectioner y
news, some smaller companies have also been
busy generating interest in the categor y.
Haribo is a new entrant into the Australian
convenience market and say they have helped to
boost segment sales by introducing differentiated
product formats and flavour profiles. The company
offers a range of jellies with no artificial colours
and real fr uit flavours. Haribo offers a 175g
hang bag range in the convenience channel
and has also introduced several impulse packs
including its new Haribo Mega Roulette 45g
which is specifically targeted at convenience.
Its best selling product is Haribo Goldbears, but its
range also includes Tangfastics, Starmix, Fizzy Cola
and Exotic Gums, as well as innovative new skus
such as Happy Cola Liquid Centre and Turtles.
The manufacturers are playing their par t by
offering consumers a constant flow of flavour
and pack innovation, creating an opportunity
for convenience stores to capitalise on
the categor y through effective
A key driver for retailer growth
is depth of range. Stores should
ensure a good range is on shelf
at all times giving consumers
a wide variety of choices from
which to purchase. It follows that
maintaining adequate stock levels and nil out
of stocks is equally impor tant. Retailers should
monitor their sku sales and adjust impress
levels, especially if items are on promotion. It is
par ticularly impor tant to ensure that customers
are not disappointed by out of stocks and that
their favourite product is always available.
Prominent product positioning to allow easy
self-selection and visibility of new lines should
be promoted and will assist in creating a point
of difference. Having a sugar confectioner y
range that is well laid out and easy to shop
gives convenience stores a better chance of
keeping customers loyal, despite the lower
prices generally available in grocer y.
Prominent placement, easy
self‐selection and visibility of new
lines should be promoted
Consumers who shop in convenience expect, to
some extent, to pay a premium for ‘convenience’,
although if that premium is too high it can
act to discourage repeat sales. While margin
is impor tant, keeping pricing as competitive
as possible is a good strategy and will assist
stores to retain and attract customers.
For some consumers sugar confectioner y is a
planned supermarket purchase, however the
spur of the moment attraction to "grab and go"
for immediate consumption is most strong in
convenience. Sugar confectioner y will sell in
convenience both on and off promotion, but
promotions also offer an oppor tunity for stores to
engage with new customers and lift basket size.
With supermarkets regularly offering heav y
discounts, it is vital that convenience is seen to be
trying to offer superior value for its customers with
cross-categor y or promotions or by offering ‘2 for 1’
deals. Bundling is a proven sales lifter and offering
a variety of products in a combo deal (i.e . drinks,
salty snacks and confectioner y) allows shoppers to
choose a range of products that suits their needs.
Euromonitor predicts that, due to a significant
rise in the number of births in Australia over the
last half a decade and the consequent arrival of
more children, sugar confectioner y can expect
to grow significantly well into the future.
Retailers prepared to make the most of the constant
categor y innovation by ensuring accessibility,
availability and visibility of a varied range will
remain well placed to reap the sweet rewards.
Convenience and Impulse Retailing would like to thank Mondelez Australia, Stuart Alexander and Haribo for supplying information for this article.
›› Innovation is a key area where
shopper will engage in the
›› Expectations of promotions
is one of the key importance
factors for the category, with
34% of shoppers believing P&C
has strong promotions in the
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