Issue #9: Independence
Hello everyone! back at it with another edition of Confectionery Chronicles with some exciting top-of-the-line news on the confectionery industry. This week I am celebrating 2 independence days! yes, 2. We got the 4th of July celebrating my dear USA's independence and of course Venezuela's independence on July 5th (Also my father's birthday oddly enough). So yeah, I am feeling quite independent as we head into a very long weekend.
So in that sentiment, I wanted to wish both countries, and any other country that celebrates their Independence this week a happy Independence Day! In other news, I will be traveling to Mexico in a couple of weeks for leisure so, unfortunately, no Confectionery Chronicles from July 15th to July 23rd. But in honor of my trip, I will be doing a special issue based on Mexican confectionery as I will also explore the aisles of their supermarkets and convenience stores in search of some goodies to bring back to Venezuela. So less talk and more action, here is a new issue just for your eyes!
Sweet Spotlights ??
How would you like your gummies sir?
A recent study by Cargill reveals a strong consumer preference for plant-based gummies in Europe. Conducted in Germany, Spain, and the UK, the research involved 450 participants, who evaluated six strawberry-flavored gummy prototypes. Findings showed that 60% of UK, 70% of German, and 85% of Spanish respondents preferred plant-based gummies, attributing their choice to perceived health benefits. Regional differences in texture and flavor preferences were also noted.
The research underscores the growing demand for plant-based and vegan confectionery options, driven by health consciousness and dietary preferences. This trend highlights the importance for manufacturers to clearly label their products and cater to the specific texture and flavor preferences of different regions. Plant-based gummies, often made with pectin or agar-agar instead of gelatin, are seen as healthier and more ethical alternatives, aligning with the increasing consumer shift towards plant-based diets and shifting away from animal-based produce.
Cargill’s study also points out the potential market growth for plant-based gummies, as more consumers become aware of the benefits and seek out these products. The confectionery industry is responding to this trend by developing and promoting more plant-based options, aiming to meet the demand and expand their market share. Although these have been unstabilized from some bottlenecks over the last few years compromising supply to major manufacturers.
In conclusion, There are 4 main points derived from this study as learning points for gummy preferences and consumer behavior projection:
-Shoppers prefer plant-based gummies in the long run
-Clear labeling is a must
-Texture and flavor profiles vary deeply based on the consumers
-Geography is an important factor in gummy preference
Preem Stuff
The indulgence market is growing given the rise of many sweet tooths across prominent markets and emerging ones that are finally getting to know what true indulgence feels like as they dive deep into the confection culture, life for example chocolate. Chocolate was not always a popular confection amongst emerging countries. But now, they have entered with the full force of exclusivity and are being sold as premium products. A good example of this is Japan, whose chocolate market is relatively new compared to the USA.
Statista claims that while the confection market is set to increase steadily every year, the premium chocolate market is set to grow by 8.34% a year. This is sweet music for investors and businesses wanting to enter that category. So given what we know, let us explore the 4 top trends related to premium confections that are setting up the pace in 2024:
-Modern spin on classics: Chocolate is very expensive nowadays, which brings many challenges to the table in terms of cutting and maintaining costs. Usually, premium chocolates also possess a high level of cocoa ingredients, therefore, producers will have to get creative by using substitutes and also make use of inclusions to provide a fun twist on their creations while saving up costs on cocoa ingredients. This will also be the time to innovate into new creations to set up the market for new products.
-Better for you: The rise of better-for-you products has also delivered an opportunity to provide premium chocolates with premium natural ingredients as well as niche category opportunities that can entail high premiums, like for example vegan chocolate.
-One for each occasion: whether it is someone's birthday or we are heading into the holiday season, producers must capitalize on the occasional indulgence opportunities by developing products, packaging, and variations for such occasions. This is especially important for the indulgence trend as you must appeal to the consumers at all times and that needed variation might be the key to driving the sale home.
-The P for premiums starts at packaging: Packaging has to mimic the art of premium in this case. It is an add and an extension of the product itself and a key factor that will differentiate you from the competition. Moreover, premium chocolate comes with an embedded set of values, feelings, and sensations that can and must be reflected on the packaging to ensure the best experience for the consumer
Cocoa Culture ??
Cocoa Price as of 08/07/2024
As we can see prices are truly stabilizing after we hit that second high peak in the middle of May. However, it seems to be a trend that might need to be embraced as prices are regulated and we still receive uncertain development for crops this year and in 2025 as well. We can only wait to see and make some advances on the current prices to secure some short and long-term stocks for our products.
Cookies... and cream on the side
Mondelez International, the company behind brands like Cadbury and Milka, has announced a strategic partnership with Lotus Bakeries, renowned for its Biscoff cookies. This collaboration aims to create new chocolate products that blend the iconic flavors of Biscoff with the rich taste of Cadbury and Milka chocolates. This initiative is part of a growing trend to innovate by merging popular brand flavors, appealing to consumers' desires for unique and indulgent treats. The partnership is expected to result in a range of exciting new products that leverage an already robust portfolio of brands from Mondelez and a fast-growing Lotus brand.
The new products are anticipated to attract a wide audience looking for novel and satisfying confectionery experiences. This move is also seen as a way for both brands to expand their market presence and drive sales growth by tapping into each other's loyal consumer bases as well as expertise in local demographics to enter and penetrate new markets like for example India, which is a very profitable market when it comes to cookies and baked goods.
Mondelez's decision to partner with Lotus Bakeries underscores a strategic effort to innovate within the competitive chocolate and snack industry. The collaboration is likely to produce a variety of products that will be rolled out in multiple markets, enhancing the product portfolios of both companies. Lotus is no stranger to enhancing its product portfolio as it has expanded into the ice cream, spread, and other snacking categories.
This merger of flavors is expected to set a new standard in the confectionery market, providing a blend of tradition and innovation that resonates with today's consumers. The partnership highlights the importance of innovation and brand collaboration in maintaining competitiveness and relevance in the ever-evolving food industry.
That's a fast turtle
Pladis, the global snacking company, has achieved a significant milestone with its brands Godiva, Turtles, and Flipz collectively surpassing $1 billion in U.S. sales. This success highlights the strong market presence and consumer appeal of these iconic brands.
Godiva, renowned for its premium chocolates, has long been a symbol of luxury and indulgence. Its wide range of high-quality products, from boxed chocolates to truffles, has consistently attracted a loyal customer base. The brand's ability to innovate and adapt to changing consumer preferences, including the introduction of new flavors and product formats, has helped maintain its relevance in the competitive confectionery market.
Turtles, known for their distinctive caramel-nut clusters covered in chocolate, have also played a crucial role in reaching this sales milestone. Turtles have managed to stay popular by retaining their classic recipe while also introducing limited edition variations that attract both long-time fans and new customers.
Flipz, the chocolate-covered pretzel brand, has seen a surge in popularity, contributing significantly to the overall sales growth. The brand's unique combination of sweet and salty flavors has resonated with consumers looking for satisfying snacks. Flipz's expansion into various flavors and formats, including seasonal offerings, has kept the brand exciting and relevant in the snacking category.
Pladis's success with these brands can be attributed to its strategic focus on brand strength, product quality, and innovation. The company has effectively leveraged the strong brand equity of Godiva, Turtles, and Flipz to capture a significant share of the U.S. confectionery market. By continuously investing in product development and marketing, Pladis has ensured that these brands remain top-of-mind for consumers.
Moreover, Pladis has capitalized on the growing demand for premium and indulgent snacks. The trend towards treating oneself with high-quality confectionery products has driven sales for brands like Godiva and Turtles. Meanwhile, the increasing popularity of on-the-go snacks has boosted Flipz's market performance, aligning with consumer preferences for convenient and enjoyable treats. The differentiation in their target audience has also paved the way to compete in several segments:
-Godiva: Luxury Premium
领英推荐
-Turtles: Premium
-Flipz: Mainstream
The achievement of surpassing $1 billion in U.S. sales demonstrates Pladis's successful strategy in managing and growing its diverse portfolio of confectionery brands. It underscores the importance of innovation, quality, and strategic marketing in driving brand growth and consumer loyalty as well as controlling small amount but effective lines of SKUs. As Pladis continues to expand its product offerings and explore new market opportunities, the company is well-positioned to maintain its upward trajectory in the confectionery industry.
Flavor Fusion ??
Ranch it up!
Big Eric Andre reference on that title. Cheez-it the Kellanova brand could be considered a direct competitor to Ritz and Goldfish Crackers is spicing it up by telling you to forget about using dip. Yeah, you heard it. Why use dip on crackers that already have a dip flavor, and not only some dip flavor but collaborating with a seasoning brand to guarantee a wonderful experience?
Cheez-it announced they will be launching a brand new ranch flavor cracker in collaboration with Hidden Valley which is better known for its salad dressings, to provide a genuine ranch flavor to their crackers. Cheez-it is not reinventing the wheel here, but it is innovating on the fact that ranch is usually a common denominator across chips and tortillas, it's rare to see it on a cracker. Cheez-it is also gaining an automatic guarantee that the ranch will be as genuine as possible with their Hidden Valley collaboration which is the leader in salad dressings along with other popular brands like Newman's Own.
Also, the inspiration was found on social media itself. Cheez-it marketing managers noticed that several consumers were making their own ranch seasoning for the crackers and they responded by pleasing the people! A genuine ranch experience!
Who is driving?
Recently Circana came up with a list of brands that represent the main drivers of innovation in the market. It may be thanks to their unique product, the way the brand is growing, or other considerations that put them at the forefront of the most innovative growth in the industry. Some of these brands are already established while some are growing at a high pace, but there is a decent mix and only time and sales will determine the future position in the market:
Prime: The hydration beverage has taken the market by storm thanks to its owners Paul Logan and KSI using a mix of marketing strategies that have capitalized on the massive growth of the beverage. Several partnerships have also elevated the brand to what it is today becoming the official drink of some sports teams like FC Barcelona. The brand is currently valued between $3.2 and $4.2 billion.
Starry: If Pepsico was ever going to compete with Sprite it would have to be done right. Behold, Starry is a new twist on the lemon-lime flavor that used to only offer one option in the market. With a solid mix of marketing and leveraging their distribution channels, Starry hopes to steal a big portion of the market share from Sprite in the following years.
Froneri: Oreo is a monster brand. It is such a monster that Mondelez can separate its frozen counterpart into a whole other brand known as Froneru which includes pints and bars of Oreo ice cream. The brand has already made sales of $126 million and looks to increasingly grow the brand as ice cream is in big demand this summer.
Ghost: The popular protein-based brand has expanded into the energy drink category like many of its predecessors. Ghost has been hitting categorization hard as they partnered with General Mills for a cereal collab, and now they are presenting the 200mg caffeine beverage in more than 6 flavors!
Mini Frito Lays: Yes, Frito Lay has benefitted from Pepsico's innovation pipeline as well. They introduced their miniature line as an option for the "Reduced-size Snacks" category which has made over $104 million in sales. Cheetos, Doritos, and Sun Chips are the first to come in this new presentation.
One Hershey's please
One bar has joined forces with Hershey's to launch 2 new flavors in collaboration with Reese's peanut butter cups and also their cookies & cream chocolate bar. One bar has been notable for introducing many unique flavors into the market to satisfy the hunger of many people especially athletes and gym rats. Among the most popular and playful flavors are: Birthday cake, maple glaze, red velvet, cookie dough, and even blueberry cobbler. Certainly, a unique strategy to differentiate themselves in a very fast-growing industry where you can find competitors left and right. Certainly, this unique partnership is also a great strategy for growth to offer exclusive flavors in the form of protein bars which will not only favor One but will also give more exposure to Hershey's in a category where they could not feature due to their confection status.
Sugar Rush (Facts and Stories about your favorite snacks and candies)??
Take a break
By the title you probably already know what we are going to talk about, it comes in 4s and you usually gotta snap it to have it. Yup, it's the Kit Kat, one of the highest-selling confections in the world with a massive presence in several countries and legendary adaptations of its flavors around the world.
The history of Kit Kat, one of the world's most iconic chocolate bars, dates back to the early 20th century. Created by Rowntree's, a confectionery company based in York, England, Kit Kat has evolved over the decades to become a global favorite, known for its distinctive wafer layers and "Have a break, have a Kit Kat" slogan.
Kit Kat’s origins can be traced to 1935 when Rowntree's introduced a product called "Rowntree’s Chocolate Crisp." This chocolate-covered wafer bar was aimed at providing a convenient, satisfying snack for workers. It wasn't until 1937 that the product was rebranded as "Kit Kat Chocolate Crisp." The name "Kit Kat" was inspired by the Kit-Cat Club, an 18th-century political club in London.
During World War II, the availability of ingredients became a challenge due to rationing. This led to a temporary change in the recipe, using dark chocolate instead of milk chocolate. Despite the challenges, Kit Kat maintained its popularity, and after the war, the original milk chocolate version was reintroduced.
The 1950s and 1960s marked the beginning of Kit Kat’s global expansion. Rowntree's started exporting Kit Kat to various countries, including Canada, Australia, and South Africa. In 1970, Rowntree's merged with Mackintosh’s, another confectionery company, further boosting its international presence.
In 1988, Swiss food giant Nestlé acquired Rowntree's, including the Kit Kat brand. Under Nestlé's ownership, Kit Kat continued to grow, with significant investments in marketing and distribution. The brand's slogan "Have a break, have a Kit Kat" became globally recognized, reinforcing the idea of Kit Kat as the perfect snack for a break.
Over the years, Kit Kat has introduced numerous variations to cater to diverse tastes and preferences. In Japan, Kit Kat has become particularly famous for its wide range of unique flavors, such as green tea, sake, and wasabi. This localization strategy has been key to its success in different markets.
Kit Kat’s influence extends beyond its role as a snack. It has become embedded in popular culture, with its distinctive packaging and advertising campaigns becoming instantly recognizable. The brand has also embraced digital marketing and social media, engaging with a new generation of consumers through innovative campaigns and collaborations.
Kit Kat's journey from a simple chocolate-covered wafer bar to a global confectionery icon is a testament to its enduring appeal and adaptability. Through strategic branding, innovation, and a commitment to quality, Kit Kat has maintained its status as a beloved snack across generations and continents. As it continues to evolve, Kit Kat remains a prime example of how a brand can successfully navigate changing market dynamics while staying true to its core identity.
That's it for this week! Elections are coming in hot in Venezuela so there is a little turmoil out there, but nothing that we can't handle, especially after a refreshing day off from celebrating our independence. Also, Venezuela is in the quarterfinals of Copa America, we will be celebrating that here as we cheer on our country while we indulge in our favorite confections. I hope you enjoyed the issue, and as always, hit me up with any recommendations, share the newsletter around, and have a sweet weekend!
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