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Europe / Airports / Confectionery
Lindt tops UK & Ireland sweet sales ranking
By Generation Research, 6 November 2008
According to the POS audits carried out by Generation Research – and as documented in the TRAQ Confectionery & Fine Food UK & Ireland Airport Panel – the first quarter of this year saw one very special and popular product from the Swiss premium confectionery company Lindt & Sprüngli record some staggering success.
From a ranking at No. 343 in 1Q 2007, one year later in 1Q 2008 Lindt Napolitains Assorted 1000g has soared up the rankings to reach the No.1 spot in the UK and Ireland airports’ airside confectionery sector.
“It is rare that we see developments like this over such a relatively short period”, says Yngve Bia, President Generation Research. “From a market share of virtually zero per cent in 1Q 2007, in value sales terms Lindt Napolitains Assorted 1000g captured an impressive 4.1% market share of the overall market in 1Q 2008”.
In a company perspective Lindt & Sprüngli grew its market share from 6.0% in 1Q 2007 (rank No. 6) to 10.2% in 1Q 2008 (rank No. 5) following an increase in sales of +72.5%. Additional companies also doing well were Nestlé (+35.7% in sales to rank No. 3 in 1Q 2008 from rank No. 5 in 1Q 2007); Kraft Foods (+17.6% in sales to rank No. 2 in 1Q 2008 from rank No.3 in 1Q 2007); Guylian (+96.4% in sales to rank No. 7 in 1Q 2008 from rank No. 14 in 1Q 2007) and Mars (+8.4% in sales keeping to its 4th rank in 1Q 2008 as in 1Q 2007).
The market leader in terms of value sales Cadbury had a tougher quarter, seeing its market share in 1Q 2008 slump to 15.9% from 19.1% in 1Q 2007. Butlers, the No. 2 company in 1Q 2007, saw sales tumble by -34.7% in 1Q 2008 qualifying for only a 6th rank in 1Q 2008.
“In the early parts of 2008 many supplier companies needed to increase their prices to the trade as well as to the consumers as they had themselves faced massive price increases in commodities such as cocoa, wheat and milk”, says Yngve Bia.
“Some companies opted to increases their prices substantially, but also at the same time going for aggressive promotions aimed at the travellers. In retrospect, these companies proved to have adopted the correct policy and strategy. Other companies that increased their prices but stayed outside of any promotions proved to be the losers. Cadbury was one of these companies”.
On average, retail prices in the UK and Irish duty free and travel retail confectionery market increased in Pound Sterling by +10.8% per kilo between the first quarter in 2007 and the same quarter in 2008. Cadbury’s average retail sales price per kilo for its overall range increased by +24.6%, whilst that of Lindt & Sprüngli effectively – including promotions – dropped by -31.9%.
“Interestingly, including focused and aggressive promotions, the retail price of this particular market sector’s best-selling sku reference Lindt Napolitains Assorted 1000g was reduced by -34.8% in 1Q 2008 as compared to 1Q 2007, from £ 11.77 to £ 7.67”, says Yngve Bia. “This clever strategy evidently gave a handsome return to the Swiss chocolate giant ranked 4th in the world in terms of global duty free and travel retail confectionery value sales”.
The statistical contents in this feature are only as up-to-date as their availability and compilation allowed at the time of publishing. All statistical numbers shown here are subject to review and revision in subsequent features and charts as additional source material becomes available.
By Generation Research, 6 November 2008
According to the POS audits carried out by Generation Research – and as documented in the TRAQ Confectionery & Fine Food UK & Ireland Airport Panel – the first quarter of this year saw one very special and popular product from the Swiss premium confectionery company Lindt & Sprüngli record some staggering success.
From a ranking at No. 343 in 1Q 2007, one year later in 1Q 2008 Lindt Napolitains Assorted 1000g has soared up the rankings to reach the No.1 spot in the UK and Ireland airports’ airside confectionery sector.
“It is rare that we see developments like this over such a relatively short period”, says Yngve Bia, President Generation Research. “From a market share of virtually zero per cent in 1Q 2007, in value sales terms Lindt Napolitains Assorted 1000g captured an impressive 4.1% market share of the overall market in 1Q 2008”.
In a company perspective Lindt & Sprüngli grew its market share from 6.0% in 1Q 2007 (rank No. 6) to 10.2% in 1Q 2008 (rank No. 5) following an increase in sales of +72.5%. Additional companies also doing well were Nestlé (+35.7% in sales to rank No. 3 in 1Q 2008 from rank No. 5 in 1Q 2007); Kraft Foods (+17.6% in sales to rank No. 2 in 1Q 2008 from rank No.3 in 1Q 2007); Guylian (+96.4% in sales to rank No. 7 in 1Q 2008 from rank No. 14 in 1Q 2007) and Mars (+8.4% in sales keeping to its 4th rank in 1Q 2008 as in 1Q 2007).
The market leader in terms of value sales Cadbury had a tougher quarter, seeing its market share in 1Q 2008 slump to 15.9% from 19.1% in 1Q 2007. Butlers, the No. 2 company in 1Q 2007, saw sales tumble by -34.7% in 1Q 2008 qualifying for only a 6th rank in 1Q 2008.
“In the early parts of 2008 many supplier companies needed to increase their prices to the trade as well as to the consumers as they had themselves faced massive price increases in commodities such as cocoa, wheat and milk”, says Yngve Bia.
“Some companies opted to increases their prices substantially, but also at the same time going for aggressive promotions aimed at the travellers. In retrospect, these companies proved to have adopted the correct policy and strategy. Other companies that increased their prices but stayed outside of any promotions proved to be the losers. Cadbury was one of these companies”.
On average, retail prices in the UK and Irish duty free and travel retail confectionery market increased in Pound Sterling by +10.8% per kilo between the first quarter in 2007 and the same quarter in 2008. Cadbury’s average retail sales price per kilo for its overall range increased by +24.6%, whilst that of Lindt & Sprüngli effectively – including promotions – dropped by -31.9%.
“Interestingly, including focused and aggressive promotions, the retail price of this particular market sector’s best-selling sku reference Lindt Napolitains Assorted 1000g was reduced by -34.8% in 1Q 2008 as compared to 1Q 2007, from £ 11.77 to £ 7.67”, says Yngve Bia. “This clever strategy evidently gave a handsome return to the Swiss chocolate giant ranked 4th in the world in terms of global duty free and travel retail confectionery value sales”.
Market Sector Key Facts: British Isles Airport Airside Confectionery Sales
Coverage: 35 x Airports
Retailers included: Aelia (Belfast & Luton); Aer Rianta; Alpha Retail (Autogrill); The Nuance Group; World Duty Free (Autogrill) – equal to 95.2% of total market sector value sales. Retailers NOT included: Caviar House, Harrods and WH Smith.
Period: 1Q 2008
Retail Sales in Value: £ 9.4 million (+1.3% on 1Q 2007)
Retail Sales in Volume Weight: 871.5 tonnes (-9.2% on 1Q 2007)
Retail Sales in Volume Units: 2,221,139 pieces (-13.1% on 1Q 2007)
Average Retail Sales Price per Kilo: £ 10.94
Average Retail Sales Price per Unit: £ 4.24
No. of Confectionery Companies: 63
No. of Products: 1,366
Top 5 Companies with Market Share in Value Sales 1Q 2008 (1Q 2007 in brackets):
1) Cadbury 15.9% (19.1%); 2) Kraft Foods 13.9% (11.9%); 3) Nestlé 13.3% (9.9%); 4) Mars 12.0% (11.3%); 5) Lindt & Sprüngli 10.2% (6.0%).
Top 5 Companies with Market Share in Volume Sales Kilos 1Q 2008 (1Q 2007 in brackets):
1) Cadbury 20.9% (28.1%); 2) Kraft Foods 16.6% (14.1%); 3) Mars 14.2% (14.6%); 4) Nestlé 13.5% (9.7%); 5) Lindt & Sprüngli 9.1% (3.3%).
Top 5 Companies with Market Share in Volume Sales Units 1Q 2008 (1Q 2007 in brackets):
1) Cadbury 18.7% (22.2%); 2) Kraft Foods 17.2% (13.1%); 3) Nestlé 14.4% (10.7%); 4) Mars 11.8% (11.8%); 5) Butlers 7.9% (12.2%).
Top 5 Companies among Top 15 ranked in Value sales showing Evolution in Sales:
1) Neuhaus +202.5%; 2) Guylian +96.4%; 3) Lindt & Sprüngli +72.5%; 4) Nestlé +35.7%; 5) Kraft Foods +17.6%.
Top 5 Products with Market Share in Value Sales 1Q 2008 (1Q 2007 in brackets):
1) Lindt Napolitains Assorted 1000g 4.1% (0.1%); 2) Kraft Toblerone Milk Gold 400g 3.9% (4.8%); 3) Cadbury Dairy Milk Chunks Pouch 500g 3.3% (2.8%), 4) Kraft Toblerone Tiny Bag 300g 3.2% (2.3%); 5) Mars Celebrations Casket 650g 3.0% (0.2%).
Top 5 Products with Market Share in Volume Sales Kilos 1Q 2008 (1Q 2007 in brackets):
1) Lindt Napolitains Assorted 1000g 5.9% (0.1%); 2) Kraft Toblerone Milk Gold 400g 5.2% (6.4%); 3) Cadbury Dairy Milk Chunks Pouch 500g 4.4% (3.7%), 4) Mars Celebrations Casket 650g 3.7% (0.2%); 5) Cadbury Dairy Milk London Scenes 1000g 3.7% (5.1%)
Top 5 Products with Market Share in Volume Sales Units 1Q 2008 (1Q 2007 in brackets):
1) Kraft Toblerone Milk Gold 400g 5.0% (5.8%); 2) Kraft Toblerone Tiny Bag 300g 4.0% (2.6%); 3) Cadbury Dairy Milk Chunks Pouch 500g 3.4% (2.7%); 4) Lindt Napolitains Assorted 1000g 2.3% (0.0%); 5) Mars Celebrations Casket 650g 2.2% (0.1%).
Top 5 New Products with no sales or less than £ 20,000 worth of sales in 1Q 2007 ranked as per sales in 1Q 2008:
1) Lindt Napolitains Assorted 1000g £ 389,000; 2) Mars Celebrations Casket 650g £ 280,000; 3) Guylian Carry Pack 880g £ 222,000; 4) Nestlé After Eight London Scene (2 x 400g) 800g £ 163,000; 5) Nestlé Quality Street Pouch 300g £ 161,000.
Source: TRAQ Confectionery & Fine Food; Generation Research, Sweden
The statistical contents in this feature are only as up-to-date as their availability and compilation allowed at the time of publishing. All statistical numbers shown here are subject to review and revision in subsequent features and charts as additional source material becomes available.
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OLDER NEWS IN THIS REGION
• AllSaints at Stansted Airport
(5 November 2008)
• T5 termed 'a national embarrassment' (4 November 2008)
• Ryanair predicts more losses due to fuel prices (4 November 2008)
• Aelia result is 'robust' (3 November 2008)
• Alitalia relaunch in December? (3 November 2008)
• Environmental alliance (29 October 2008)
• Frankfurt opens new shops (28 October 2008)
• Anti-counterfeit Declaration signed at TFWA (27 October 2008)
• Beefeater 24 with WDF at LHR (27 October 2008)
• New President - new tender (26 October 2008)
• T5 termed 'a national embarrassment' (4 November 2008)
• Ryanair predicts more losses due to fuel prices (4 November 2008)
• Aelia result is 'robust' (3 November 2008)
• Alitalia relaunch in December? (3 November 2008)
• Environmental alliance (29 October 2008)
• Frankfurt opens new shops (28 October 2008)
• Anti-counterfeit Declaration signed at TFWA (27 October 2008)
• Beefeater 24 with WDF at LHR (27 October 2008)
• New President - new tender (26 October 2008)
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