pulse report confectionery q3 2012

7/29/2019 Pulse Report Confectionery Q3 2012

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Confectionery

SymphonyIRI

Welcome to the Pulse Q3 2012 edition for Confectionery.

We hope you find it useful. Please do not hesitate to

contact us if you have any questions or comments [email protected]

Pulse


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Confectionery SymphonyIRI Pulse Q3 2012

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About the Report

This Confectionery report is one of 10 super category reports designed to show high-

level comparison and analysis for retail markets across major countries in Europe.

This report contains data gathered from around Europe. This market was

consolidated into one super category.

The report highlights key metrics such as total sales figures, market trends, category

shares, winners and losers for Europe and for individual countries.

The data has been sourced from SymphonyIRI Group retail databases and Eurostat

the statistical branch of administration for the European Commission.

The countries included in the report are: France, Germany, Italy, Netherlands, Spainand the UK

The market channels used for each country in this report are as follows:

For analytical purposes the data sourced from available retail databases has been

consolidated to provide consistent results. However, for some countries it has not

been possible to source data pertaining to certain categories. When this has occurred

it has been documented in the Notes section found at the end of the report.

Country Channels used

UKHypermarkets, Supermarkets, Drugstores and

Impulse Outlets

ESHypermarkets, Supermarkets, Hard Discounters,

Drugstores and includes the Canary Islands

DEHypermarkets, Supermarkets, Hard Discounters

and Drugstores

NLHypermarkets, Supermarkets, Hard Discounters

and Drugstores

ITHypermarkets, Supermarkets, Small Self Service,

Hard Discounters and Drugstores

FRHypermarkets and Supermarkets


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In the Radar

Economic figures influencing consumer behavior

In 2012 Confectionary product innovation across Europeis leading manufacturer growth in 2012.

Livio Martucci

Confectionery Insight European Director, SymphonyIRI Group

Contact: [email protected]

Source Eurostats, October 2012

Population in Millions Unemployment (%)

Average 12 Months

Inflation Rate GDP in Millions ()

January

2011

January

2012

Dec.

2011

Average

2012

Dec.

2011

Average

2012

2011

(Estimate)

2012

(Estimate)

France 65.0 65.3 9.7 10.3 +2.3 +2.5 1,987,699 2,033,702

Germany 81.7 81.8 5.9 5.5 +2.5 +2.4 2,567,000 2,645,862

Italy 60.6 60.8 8.4 10.7 +2.9 +3.5 1,586,209 1,565,770

Netherlands 16.6 16.7 4.4 5.3 +2.5 +2.8 607,435 609,133

Spain 46.1 46.1 21.6 25.1 +3.1 +2.3 1,074,940 1,050,211

United

Kingdom 62.4 62.9 8.4 7.9 +4.4 +3.7 1,747,315 1,913,070


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Global Trends

TOTAL EUROPE +1.2%

Value Sales in Millions ()

Total EU 20,298

DE 6,788

UK 5805*

FR 3,739

IT 2,085

ES 1,072

NL 810

1.449

1.262

1.7461.356 1.419 1.284

1.479

1.438

2.265

1.568 1.482

1.473

895

1.354

845 882

659

172203234

462

171197

179203209

218

185202

622

319

650

610521

304

656

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

03-lug-11 02-ott-11 01-gen-12 02-apr-12 01-lug-12 01-ott-12

Millions

Period Ending

France

Germany

Italy

Netherlands

Spain

UK

*based on an exchange rate of 1.150 to the pound

+0.5%

Positive Trend

Static Trend

Negative Trend

Value sales and growth and decline in the last year

Value sales for the last six quarters

+3.7%

+2.9%

-1.5%

+1.3%

-0.9%

Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12


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17,962.63

2,335.82

1.31.1

Non Seasonal Confectionery Seasonal Confectionery

Millions

Total Sales % vs. YA

Categories Evolution

88.5%

11.5%


Europe

Value Sales () and % Change vs. Yr Ago

17,963

2,336

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Europe includes: France, Germany, Italy, Netherlands, Spain and United Kingdom

MillionsEuros

Category Value Sales and Share of Value in the Last Year

Key trends

In 2012 Confectionary expenditure trend

varies significantly across Europe.

Chocolate tablets growth across several

countries attracting NPD with price

premiumness

Also PL and Discount channel growth

are a common trends across countries

especially where Confectionery sales are

weak

Growth across Europe is driven byproduct innovation lead by the main

manufacturers

A further category growth driver is

themed sports products (Olympics,

European Football) or classic

(valentines, Mothers day) events.



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2,870

869

3.0

5.8


Millions

0

1

2

3

4

5

6

7


76.8%

23.2%


France


2870

869

0

500

1,000

1,500

2,000

2,500

3,000

3,500


MillionsEuros


Key trends

A good trend for seasonal confectionary due

to strong performance at Easter and an

earlier implementation of Christmas

chocolate in 2012. Mars (through NPD) and

Ferrero (new formats of its blockbusters

Schokobons and Ferrero Collection) are the

main contributors. Kraft grows through the

Milka brand.

Non Seasonal Confectionary turnover

improves mainly through dynamism of

Chocolate confectionary and Tablets growth:

Tablets represent more than 1/3 of turnover

due to a good premium offering through

Lindt.

Chocolate confectionary (1/4 of turnover) is

developing mainly through Mars and

Ferrero thanks to an increase in promotional

level and a larger assortment.



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Germany


94.3%

5.7%


6,399

388

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

6.399,43

388,38

0.7 -1.7


M

illions



MillionsEuros


Key trends

Despite Confectionery positive value trend,

volume is declining as expenditure growth is

driven by consumer price inflation across all

confectionary segments. Prices per kilo is

rising by truly higher prices (Duplo, Kinder)

or by downsizing and premium NPD.

As volume sold is weak there is a high level

of substitution between the sub categories.

After long term growth, the salty snack

market is now flat in volume (-0,3%).

Despite Confectionary saturation small subcategories, like mixed boxed chocolate,

small bites and surprise eggs, are still able

to grow in volume.



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Italy

88.3%

11.7%


1,841

244

0

200

400

600

800

1000

1200

1400

1600

1800

2000



1.840,66

243,97

-1.6 -1.2


M

illions

-2

8

18

28

38

48

58

68

78

88


MillionsEuros


Key trends

Confectionery value sales decline is driven

by a drop in volume.

Chocolate Tablets are the fastest growth

category in value (+5,0%) and the only

category to show volume growth (+1,9%). It

is also the least expensive category in terms

of euro/kg.

Easter 2012 has under-performed versus

last year as well as Christmas 2011.

Confectionery purchase is a typical impulse

process for Italian consumers, all impulsecategories are negatively impacted by the

economic crisis

Chewing Gum shows the fastest value

decline (-9,9%) due to a declining

investment in advertising and product

innovation.



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98.8%

1.2%


800

9

0

100

200

300

400

500

600

700

800

900

Netherlands



800

9

4.4-0.9


Millions


MillionsEuros

Key trends

Confectionary is a stable market

currently, in both volume and value

Different growth can be seen for service

supermarkets and discount channel

Service supermarkets -1

Discount +3% value

Positive growth for Chocolate and Candy

segments. Whereas Chewing Gum

shows negative figures in both value and

volume

Within Chocolate, tablet segments

(Ritter Sport, Bros, Swiss) are the main

drivers of growth. Bitesize also shows

value growth, driven by M&Ms.

In Candy, Gums is growing, mainly

through Haribo and Autodrop. Both

players have seen increased NPD and

added value to the shelf




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Spain

75.6%

24.4%


810

262

0

100

200

300

400

500

600

700

800

900



810

262

1.53.3

Non Seasonal

Confectionery

Seasonal Confectionery

M

illions


MillionsEuros


Key trends

The Candies category has shown growth

and chewing gums have experienced a

setback in sales.

Private Label is a very recent

development in the confectionery market

and, in the last two years, has grown

faster than category average; PL share

closer to the manufacturer's brand.

Candies and chewing gum promotional

activity based on price and visibility in

the store (extra display).

Chocolates is decreasing because of

bonbon (-6,4%) and countlines (-5,3%).

Tablets are growing by +4,3%. Private

label presence is not high still (26,5%)

but is growing by 9,7%.



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United Kingdom

90.3%

9.7%


5,243

563

0

1000

2000

3000

4000

5000

6000



563

5.243

-1.91,6


Millions


MillionsEuros


Key trends

Confectionery continues to show strong growthin the UK through non-seasonal confectionary,which remains at over 90% of total sales.

Overall growth within non-.seasonalconfectionary has been driven by both highlevels of promotions and NPD. Bitesize sharingremains a growth sector through both NPD andMars Sweet Sundays campaign on existing skus.During this period we have also seen Olympicactivity through limited edition Cadbury skus inblock and bar formats. In addition there has beenhigh levels of off shelf activity with deepdiscounting for Cadburys within their Take Home

sector. Block chocolate has also seen recoverythrough NPD from Cadbury and Nestle, butSingles long term decline continues.

Overall Seasonal confectionery continues todecline, with Easter impacting total annual sales.However we have seen some growth in theNovelty sector through Cadburys Olympicthemed skus. Mars are also helping to drive theboxed market in the short term



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Final Notes

Notes on Category Definitions for Countries

Due to the diverse products found in individual countries across this market it was necessary to consolidate theavailable data into the categories in this report. In some cases it wasnt always possible to align products across

all 6 countries hence the need to highlight any anomalies in the report. Those exceptions are listed below:

Confectionery

The Netherlands and Italy data in this report includes toffee products whereas the other countries do not


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Resources

To gain insight into opportunities across specific categories, segments, channels or retailers, contact your

SymphonyIRI client service representative regarding custom analyses leveraging the following resources:

InfoScan Census is a syndicated retail tracking service that enables manufacturers and retailers to

acquire industry insights used to make better business decisions. InfoScan Census utilizes the data

that SymphonyIRI Group collects from grocery, drug, and mass merchandise retailers to provide the most

comprehensive and accurate syndicated data offering in the Fast Moving Consumer Goods (FMCG)

sector. With access to accurate, granular detail by category, geography, measure, and time period, clients

have the tools needed to develop marketing and sales strategies based on product performance, distribution,

and promotion responsiveness. All data about frozen foods are coming from InfoScan Census.

SymphonyIRI Consulting provide strategic insights and advice leveraging a variety of data sources,

predictive analytics, enabling technologies, and business analyses to help CPG manufacturers and retailers

address significant sales and marketing issues effectively.

Contact: SymphonyIRI Group, [email protected], Tel: +33 1 30 26 81 00

About SymphonyIRI Group

SymphonyIRI group, formerly named Information Resources, Inc. (IRI), is the global leader in innovative

solutions and services for driving revenue and profit growth in CPG, retail and healthcare companies.SymphonyIRI offers two families of solutions: core IRI solutions for market measurement and symphony

advantage solutions for enabling new growth opportunities in marketing, sales, shopper marketing and

category management. SymphonyIRI solutions uniquely combine content, analytics and technology to

deliver maximum impact. SymphonyIRI helps companies create, plan and execute forward-looking,

shopper-centric strategies across every level of the organization.

For more information, visit www.SymphonyIRI.eu

pulse report confectionery q3 2012

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