Easter is cracked: eggs sales serve up £44m in growth

No comments

Confectioners have cracked the Easter egg market. Easter has driven well over half seasonal confectionery’s £78m (15.1%) growth on volumes up 18.7% [IRI 52 w/e 21 June]. The growth is the equivalent to approximately 55 million extra medium-sized shell Easter eggs.

The article is part of our Confectionery Report 2014.

Not that it’s the traditional, cheap shell eggs – often sold as a loss leader by the multiples – driving the growth. “Premium players are in the strongest growth in percentage terms,” says Matthew Williams, marketing director at Mondelez, adding that last Easter delivered £44m in overall market growth.

Easter egg

“But they’re not adding anywhere near the value as Mondelez is, which added £23m to the category in Easter 2014,” he says. “Dairy Milk Egg n Spoon doubled in value to £12.7m in Dairy Milk Marvellous Creations’ large shell egg generated £5.2m, making it the biggest new product of Easter 2014.”

Just look at the overall £36.2m growth of Dairy Milk’s seasonal lines (below) for proof of how the overall brand has benefitted from such NPD, which enabled Mondelez to cut back on the amount of seasonal confectionery sold on deal, although deal depth did increase to encourage trial.

Mars has also cashed in on the rise in seasonal sales. Last Easter, the confectioner pushed eggs accompanied with the Teasers countlines and a ‘luxury’ Maltesers egg, helping the brand achieve seasonal sales growth worth £6.3m [IRI].

We’re wolfing down more seasonal confectionery to ourselves these days, rather than giving them as gifts, according to Mars retail excellence director Tony Lorman “Self-eat is driving much of the growth in seasonal confectionery,” he says.

And not just at Easter. “For Christmas last year, self-eat grew by 32.1% and six of the top 10 self-eats were new products such as Galaxy Gift and Merry Teaser Reindeers. Alongside NPD, the growth is fuelled by new consumers entering the category – penetration grew from 16.5% to 18.5% – and increased activation in-store off shelf features has increased from 21.2% to 28.5%.”

Top five seasonal confectionery

	VALUE		VOLUME		PRICE
	£m	y-o-y%	kg(m)	y-o-y%	£/kg	y-o-y%
Cadbury	107.9	13	10	12.4	£10.81	0.60%
Dairy Milk	62.5	36.2	5.6	30	£11.18	4.70%
Creme Egg	58.1	4.3	6.4	3	£9.09	0.90%
Lindt	48	13.4	2	13	£23.60	0.40%
Own Label	42.8	27	4.3	36	£9.91	-6.60%

The growth in seasonal confectionery is impacting sales of assortments, a category which traditionally relies on Christmas for much of its sales. Four of the five biggest brands are in steep value and volume decline and the overall market has remained more of less flat at £804.9m in the past year, with volumes down 0.6%. As the most promoted sector in confectionery, it seems assortments have little room for manoeuvre in terms of competing on price.

Top five assortments

	VALUE		VOLUME		PRICE
	£m	y-o-y%	kg(m)	y-o-y%	£/kg	y-o-y%
Thorntons	8690%	-540%	640%	-10%	£13.60	-5.30%
Quality Street	8250%	-20%	1310%	-80%	£6.30	0.60%
Celebrations	7960%	-260%	1160%	-700%	£6.89	4.80%
Lindt Lindor	5610%	1110%	310%	1010%	£17.91	0.90%
Roses	5400%	-570%	830%	-500%	£6.49	-0.80%

The rise of the tablet format, larger bars typically weighing in at around 120g and marketed as suitable for sharing (though our research suggests many of probably choose not to), is also contributing to the decline of chocolate assortments. Mondelez says, quoting Nielsen figures, that slabs are up 8.5% overall, with sharing bags up 7.6% overall [52 w/e 17 May].

Top five chocolate (slabs & countlines)

	VALUE		VOLUME		PRICE
	£m	y-o-y%	kg(m)	y-o-y%	£/kg	y-o-y%
Dairy Milk	490.6	5.5	52.1	4.3	9.43	1.20%
Galaxy	214.4	-6	23.1	-3.3	9.28	-2.70%
Own Label	125.6	1.3	22.9	-2.4	5.49	3.80%
Maltesers	120	10.2	10.8	14.4	11.16	-3.60%
Kit Kat	106.8	-16.6	13.4	-14.7	7.96	-2.20%

It’s not just chocolate brands that are cashing in on the rise in seasonal confectionery. “We’ve capitalised on this by developing a range that matches the theme and the fun of seasonal events,” claims Haribo MD Herwig Vennekens.

“An example is Haribo’s Halloween range, catering for trick or treating through great value mini bags of themed treats; Halloween parties with themed gums and jellies; and also self-treating where smaller handy sized packs help the consumer to get in to the spirit of the occasion.”

Top five sweets

	£m	y-o-y%	kg(m)	y-o-y%	£/kg	y-o-y%
Haribo	153.1	3.6	30	1.9	£5.10	1.60%
Own Label	148.6	3.9	37.8	2	£3.93	1.90%
Rowntrees	99	-7.4	12	-12.5	£8.22	5.90%
Maynards	72.1	5.7	10.2	3	£7.07	2.70%
Trebor	63.9	-5.1	5.9	-5.9	£10.77	0.90%