(an advertising supplement) Nestlé Rowntree York YO91 1XY Tel: 01904 604604 Fax: 01904 603306 E-mail: helen.hill@nestlegb.nestle.com Website: www.nestle.com Key personnel Sales Director Peter Basham Sales Communications Manager Graham Walker Key brands Kit Kat Aero Yorkie Quality Street Polo Smarties Milkybar Rowntree's Rolo After Eight Lion Toffee Crisp Grow with the flow The gifting confectionery category had a fantastic millennium year, increasing by over 10% to a 17% share of the total confectionery market (AC Nielsen, 52 w/e 30 December 2000). What's more, in December alone, the category grew 2% resulting in a massive 43% share of confectionery over the key Christmas period (AC Nielsen, 4 w/e 30 December 2000). Twistwraps, like Quality Street, were one of the main beneficiaries and continue to successfully court consumers in the UK. And that's not just because we're all feeling flush, says Graham Walker, Nestlé Rowntree Sales Communications Manager. "While it's true that the UK economy is looking healthy at the moment, the success of the gifting category owes much to the fantastic choice of boxed chocolates on offer, especially the innovation which has taken place across core brands. Notable examples for us at Nestlé Rowntree are undoubtedly Quality Street and After Eight." Quality Street sprung into the Noughties with a contemporary new look. Now available in a translucent tub, the traditional carton format has also been revamped for a more sophisticated gifting market. And on top of its Easter offer, a new Quality Mum' carton has joined the range. Not to be outdone, After Eight clocked up a success with new After Eight Truffles, combining plain chocolate with a delicate peppermint flavoured truffle centre and decorated with a white chocolate lattice, adding to its 65% volume share of the after dinner mint market. Gifting apart, with some 70% of all confectionery bought on impulse, retailers should be tailoring their range to meet customer needs and displaying prominently in store, says Walker. "Retailers must take advantage of new products as they now make up 12% of all confectionery sales," he urges. "Innovation in the form of brand extensions plays a vital part in the development of the confectionery category and shouldn't be underestimated. Consumers tend to be brand loyal and, although they're willing to try completely new inventions, adults especially do tend to favour the tried and tested brands. That's why it's also important to keep the big, best selling brands at the forefront of any display." They don't come much bigger than Kit Kat Chunky ­ the most impressive confectionery launch ever seen in the UK with sales reaching 253 million bars in the first year alone (NRD despatch data). Like Topsy, it's still growing, with Kit Kat Chunky Kingsize hitting the market at the end of 2000. Graham comments: "Brand innovation will continue to be one of our key driving forces for 2001. Take this month alone, when we're launching both Aero Medium White as a permanent addition to Aero's portfolio and the second hanging bag variety for the Polo brand ­ Polo Smoothies Blackcurrant Breeze." He sees demographic changes in the UK population as not so much a barrier to innovation, more a useful tool in providing direction to confectionery plans. "Changes are important in terms of predicting future sales. Whilst the UK population is slowly increasing there are fewer children being born and more consumers living alone. Independent retail outlets in particular can benefit from these smaller households, with the average independent grocer shopper tending to be male and single. What's more, over 45-year-olds buy most confectionery so the ageing population may increase sales rather than reduce them. "It's not all about older people, though," adds Walker. "Over the next four years the number of 15-24 year olds is set to increase by 5-7% - and they're the perfect target for chocolate countlines." {{Z SUPPLEMENTS }}

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