Impulse categories are currently driving the growth in the independent convenience sector, according to TWC’s SmartView Convenience report. This includes confectionery, which is +13.6% YOY on a 52 w/e basis (to 13 August 2023).
Confectionery is in volume growth too (+2.7%).
Chocolate accounts for >60% of value sales of confectionery and is slightly out-performing sugar confectionery in independent convenience, at +14.2% YOY growth (vs. +13% for sugar).
Gum contributes around 6% of confectionery sales and is growing +10%.
TWC is reporting strong growth across the board for chocolate confectionery in independent convenience store but take-home formats such as blocks, sharing bags and multipacks are outperforming singles currently.
The three biggest sub-sectors of sugar confectionery are all in double-digit growth in independent convenience stores: sharing bags +13.5%; singles +11.6%; and multipacks +11.3%.
“The HFSS regulations have had a big impact on brands with the reformulation of their products to reduce sugar, salt, and fat content, which comes at a cost, comments Kenton Burchell, Trading Director at Bestway Wholesale. “Brands can expand their range of products through innovation, including the packaging.”
There is an increase in the trend of snacking with consumers looking for a wide variety of snacking options to consume on-the-go. The confectionery market has introduced healthier options, such as low-sugar, organic and gluten-free products.
Data from Innova Trends Survey shows that consumers are looking for new flavours that tap into consumers’ dietary requirements, and health trends.
Due to these health trends, brands are creating vegan and plant-based products, including non-dairy and reduced sugar.
“Wholesalers will need to adapt to this growing trend to cater for customers’ needs,” adds Burchell. “Consumers are searching for different alternatives as health becomes a major factor since the pandemic.”
Brands are now creating premium chocolates and promoting premium lines for sharing and gifting.
Premium sharing is also a popular part of gifting on seasonal occasions and gifting such as birthdays or part of a treat.
Premium sharing chocolates also comes in different flavours and comes in different varieties like infused nuts and fruits.
The leading brand for ‘Chocolate Assortments and Other Boxed Chocolates’ in Great Britain were ‘Celebrations’ and followed by ‘Cadbury Heroes’ and ‘After Eight’ (Statista).
According to Barry Callebaut, 71% of global consumers agree that they choose chocolate as an indulgence and when there is a celebration.
“To maximise sales, wholesalers need to create marketing materials such as brochures to advertise promotions and deals; update the latest brochures with the latest promotions and deals; notify customers using apps and emails informing the latest value for money products; create theatre, use digital screens, and advertise special promotions through radio on the depots,” adds Burchell. “At Bestway we continue to create campaigns and work with our suppliers to promote deals and theatre in the depot, including the latest brochures that goes out to our retailers.”
Gabriella Egleton – Senior Brand Manager – Kervan Gida UK Ltd, comments: “Consumers are increasingly more focused on improving their health and well-being and continue to adopt healthier eating habits. This includes a shift towards more conscious eating, whether that’s increased awareness of sugar in HFSS products, or reducing meat and dairy consumption.”
In terms of formulation, brands like Bebeto are working on widening their ranges of vegan, lower sugar, and high fruit juice SKUs. The brand ensures its packaging draws attention to these key claims, which is crucial to help consumers take decisions about what to buy.
However, as a confectionery company, Bebeto believes consumers can also be educated about recommended levels of consumption, as opposed to removing all non-HFSS-compliant products from the portfolio. The brand is making improvements to its website to ensure consumers are provided with thorough nutritional information.
“We believe there is space for ‘better for you’ products within the confectionery sector,” explains Egleton, “which is why last year our Halloween range consisted of almost all vegan, NAFNAC lines. We provide sharing and multi-pack formats in order to provide our consumers with portion-controlled options.
“Across the category, we predict innovations with HFSS-compliant fruit ‘snack-like’ products are likely to surge within the confectionery sector. However, while the cost and availability of sugar-alternatives such as dextrose remain a challenge, ongoing innovation could be slow.”
Bebeto recommends stocking Bebeto 150g Big Mix and Bebeto 150g Big Fizzy Mix gummy lines as core, because they’re the perfect impulse confectionery item. The brand also recommends stocking Bebeto 150g Strawberries and Bebeto 150g Fizzy Watermelons to complement the core product range throughout the year.
Bebeto continues to innovate and to add new products to the range, and earlier this summer launched two new vegan lines, Fizzy Vegan Peach Hearts and Fizzy Vegan Ring Mix, as welcome plant-based additions to the core 150g range. The Peach Hearts are soft gummy, peach-blush and pink heart-shaped sweets with a fizzy, tangy coating, bursting with peach flavour, and the Ring Mix are chewy, gummy ring-shaped sweets in Strawberry, Apple and Raspberry flavours with a tangy, fizzy coating.
Both Fizzy Vegan Peach Hearts and Fizzy Vegan Ring Mix come in a 150g sharing size bag with euro-hook format. They are vegan approved with added real fruit juice and no artificial colours and are halal certified. They join the popular five core lines of 150g Big Mix, Strawberries, Big Fizzy Mix, Watermelons and consumer favourite, Just Bears.
Bebeto anticipates that the fight for precious shelf space will continue for brands: the winners will be those who maximise their offers, standing out from the crowd. Brands that invest in their ATL marketing activity are bound to resonate with consumers and secure those precious listings with retailers.
Susan Nash, Trade Communications Manager at Mondelez International, comments: “Despite challenging circumstances, shoppers still want to treat themselves, and the confectionery segment is no different.”
Maynards Bassetts recently once more asked the nation to “Set the Juice Loose” across an extensive outdoor and digital campaign. The return of this iconic ad campaign helped to reassert the brand and remind consumers of Maynards Bassetts’ heritage.
“We know that since the advent of Covid-19, many consumers are placing a higher focus on their wellbeing, whether that be physical or emotional,” adds Nash. “Studies show that 25% (IGD) of shoppers are more influenced by health when grocery shopping than they were pre-pandemic. However, we also know that when it comes to treats like confectionery taste is vital, so we continue to work hard to ensure any innovation we make does not compromise on the world-renowned taste and quality that our consumers expect.”
One-third of shoppers identify as flexitarian (Lumina), meaning that demand for alternatives like vegan options are growing, with 49% (vegetarian) and 41% (vegan) of 18–25-year-olds wanting to see an increase in such ranges (IGD). With Maynards Bassetts’ Fizzy Fish and Sour Patch Kids Watermelon carrying the Vegan Society logo, the brand allows stores to cater to the growing consumer appetite for vegan products by offering shoppers even more snacking choices, that don’t compromise on taste.
“We have a goal to offer consumers more choice when it comes to snacking mindfully and managing their overall diet, with our work on non-HFSS innovations within sugar confectionery highlighting this,” says Nash.
“Last year, Maynards Bassetts rolled out its latest innovation: the Juicies range, which is non-HFSS and comprised of Maynards Bassetts Wine Gums Juicies and Maynards Bassetts Sports Mix Juicies. Juicies contain fruit juice, natural colours and flavours, and as a result deliver a great taste with 30% less sugar than the standard equivalents, providing shoppers with that great-tasting, lower sugar confectionery option that they’re looking for.”
Andrea Jessop, CEO of Moo Free, comments: “Moo Free specialise in the free-from space, which has seen significant growth in the last fifteen years and is now a core category in wholesale and grocery. From 2020 to 2022, the value of the category soared nearly 50 per cent – from £37.6m to £55.2m (Nielsen) and is forecast to grow a further 15 per cent in 2023. Supermarkets and major retailers are giving the category more space in all formats of stores which is positive news for the free-from chocolate category, and the growth of Moo Free. This will inevitably filter through to independent retailers who will be turning to wholesalers to provide stock in this category.”
The number of consumers choosing a vegan or flexitarian diet are also increasing which is another market for free-from chocolate to appeal to. For example, this year saw a record number take part in Veganuary, with over 700,000 people signed up, surpassing last year’s total of 629,000. This ever-increasing annual figure highlights the popularity of this rising trend, which is having a growing impact on the free-from chocolate space.
The core range includes the Choccy Rocks range (Moofreesas and Bunnycomb). The Moo Free Choccy Buttons, Choccy Chums and large Premium Bars (Salted Caramel, Cinder Toffee and Original). Moo Free’s mini bars also continue to be a popular choice for consumers, with the White bars and Bunnycomb being the top sellers (sales val 2022). Demand for Moo Free’s Original ‘milk’ chocolate bar also remains high, thanks to its great taste and quality ingredients. All of Moo Free’s dairy-dodging bars are free from palm oil, soya, and gluten, and are wrapped in environmentally friendly packaging, adding to its appeal for those making conscious decisions of where their food comes from and how it is made.
Moo Free has launched a new range of Bubble Bars. The perfect size for enjoying as an irresistible snack on the go, there’s a choice of two flavours to keep both milk and white chocolate lovers happy.
Inspired by the popularity of its Moofreesas Bites, the new bars are perfect for dairy dodging grown-ups in search of an indulgent treat. Like the rest of the Moo Free range, they are made in the UK using Moo Free’s award-winning high quality and free-from chocolate, which has been made using ethical Rainforest Alliance cocoa from certified farmers.
Werther’s Original is expanding its range with the launch of Werther’s Original Chocolate Covered Caramels. Combining the rich, buttery taste of Werther’s caramel with the smoothness of milk chocolate, Werther’s Original Chocolate Covered Caramels will be rolling into bargain stores now with further listings to follow.
Caramel has shown the strongest growth as a flavour in the sugar category over the last 12 months, growing at +18.3% YA in value sales (IRI). In addition, chocolate caramel sweets are outperforming category growth at +20% YoY (IRI). As the leading traditional sweet brand (IRI), Werther’s Original is well positioned to tap into this demand with its new premium offering and drive growth within the category.
“We know that caramel remains a popular flavour within the sugar category and chocolate covered caramels are also seeing growth,” commented Andy Mutton, Managing Director at Storck UK. “Our latest NPD is set to drive excitement within the category, appealing not just to our existing, loyal customer base but also bringing new consumers into the category.”
Available in 14x 100g shelf-ready packaging at RSP £1.25, Werther’s Original Chocolate Covered Caramels will be supported by in-store promotions, digital campaigns and social media activations to drive awareness and trial of the new product.
Elizabeth Hughes-Gapper, Jakemans Senior Brand Manager, said: “We are about to enter the colder months where we are continuing to see an increase in sales for winter remedies as consumers feel more confident treating ailments at home. This means that wholesalers need to tap into consumers’ desires for reliability, quality, and effectiveness as well as choice in format and flavours (including best sellers and low or no sugar products). For example, Jakemans is available in bag and stick formats and offers a range of popular flavours as well as a sugar-free version to cater to consumers’ everchanging needs. To maximise sales further, wholesalers should place winter ailment remedies in prominent locations and consider dual siting to ensure products have the best visibility.”
Jakemans is the most popular cough/throat lozenge brand (Kantar), and continues to be the No.1 bagged brand within medicated confectionery (Kantar). Sales of Jakemans have increased by 16.2% since 2022 (Mintel), and Jakemans alone contributes to 15% of overall annual sales in the category (Mintel).
Jakemans’ best-selling flavours are Throat & Chest, Honey & Lemon, and Cherry which is why these are offered as a 160g bag or stick packs which allows convenience and choice for consumers.
“There is a greater demand for convenient and ‘on the go’ solutions as consumers return to a ‘normal’ lifestyle, providing an opportunity for wholesalers to maximise sales. Not only can wholesalers benefit from the impulse need shoppers have, but by stocking formats that offer greater convenience for ‘on-the-go’ consumption wholesalers will do well,” adds Hughes-Gapper.
“Wholesalers should place winter ailment remedies in prominent locations to ensure products have the best visibility on shelf and are dual sited where possible to help with convenience and ease of purchase.”
Jakemans offers 73g (in all seven flavours) and 160g (available in the top three flavours, Throat & Chest, Honey & Lemon, and Cherry) bag formats and stick packs which offer convenience and choice for consumers. All Jakemans products are also sold in shelf ready packaging making it easy to display whether on shelf or at the till.
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