Sector Insight: Sugar confectionery and gum

By Jane Bainbridge, marketingmagazine.co.uk, Wednesday, 11 January 2012 12:00AM

Health messages and price rises appear to have had only a partial impact on consumer attitudes; most people say they share their sweets, but regular consumption is high.

Still from Ferrero ad

Still from Ferrero ad

MEET THE MAIN PLAYERS

DARYL FIELDING - Vice-president, marketing, Kraft Foods

Fielding joined Kraft in 2010, her earlier career having been spent in ad agencies, bar a brief stint at The Independent as commercial director. Based in Zurich, she was brought in by chief executive Irene Rosenfeld to boost marketing across Europe.

 

HERWIG VENNEKENS - Managing director and marketing director, Haribo

Vennekens joined Haribo in 2007, having previously worked for McCormick and Procter & Gamble. At Haribo he was behind the Starmix 'interrogation' ad and the successful launch of seasonal ranges.

 

DAVID RENNIE - Managing director, Nestle Rowntree

All Nestle confectionery marketing departments report to Rennie. He joined Nestle from Procter & Gamble in 2005 and was promoted from marketing director to managing director in 2009.

 

DANIELA CAMPARI - UK and Ireland marketing director, Wrigley, Mars

Campari took over the role in June 2011 following the departure of Toby Baker, who left to join Burton's Foods. A former Coca-Cola global marketing director, Campari was brought in to reinvigorate and expand the gum category, which has been under pressure in recent years.

WINNERS AND LOSERS


Recent Haribo campaign

Haribo - Sales up almost 50% since 2008 due to upward trend for soft gums, jellies and sharing bags.

Randoms - A big success for Nestle, which started the trend for flavour combinations.

Tic Tac - The revival of the mint market added about £4m to the brand in 2010.

Starburst - The brand has struggled in recent years, but owner Mars is fighting back with NPD such as Tongue Tangles.

Trident - Sales fell after a promising launch. Kraft streamlined the gum line and pulled ads in 2010/11. Global campaign due in 2012.

KEY TRENDS

- Health Only one-third of sweet-eaters feel guilty about consuming them; 85% of parents are happy to give their kids sweets as treats. Much NPD has focused on no additives/preservatives.

- Trends Regular consumption is high: 15% eat sweets daily and 35% two or three times a week.

- Costs The rising price of sugar has hit brands. Margins have been under pressure and retail prices have had to increase.

- Demographics Falling numbers in socio-economic group D, the heaviest users, may challenge brands. An ageing population will hit gum and chewy sweets most.

- Sharing Brands are tapping into the popularity of £1 price-marked packs and sharing bags.

Source: Mintel

This article was first published on marketingmagazine.co.uk

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