Wrigley has launched an extraordinary verbal attack against confectionery rivals Nestlé and Cadbury, at the same time as announcing plans for its first assault on the mints market.
The company, which plans to throw its Extra gum brand into the mints arena from the end of next month, said the sector had suffered from a “credible lack of investment” in recent years.
And it singled out its biggest rivals for criticism as it vowed to reinvigorate the market. It also announced a wholesale range of changes across its gum portfolio with the X-Cite brand becoming a high profile casualty.
Wrigley UK sales director and deputy MD Declan Keogh said: “The (mints) market is in steady
decline and we believe the sector is suffering from a lack of credible investment. Cadbury Trebor Bassett accounts for half of all sales but shows no growth despite heavyweight investment behind the new 24-7 brand. The
same goes for Nestlé and Polo.” Keogh said Extra Mints, available to retailers from September 29 in Peppermint and Spearmint flavours, would redress that balance and also add to the Extra brand’s burgeoning sales. Extra gum was worth more than £107m at the till last year (Information Resources) and Wrigley has also reported rocketing sales for the Extra Thin Ice mint strips which it launched at the beginning of this year.
The company plans to back the new mints (rsp: 42p for a box of 20) with a first year spend of £12m which will include a new TV ad from November.
But the swaggering style of its launch is unlikely to impress its nearest rivals, particularly Cadbury which last year recorded double digit growth on both Trebor Extra Strong Mints and Trebor Softmints.
Graham Walker, sales communications manager at Nestlé, said: “Polo is performing well, up 4% by value in the year to date and up 25% in the last four weeks year-on-year. We actually believe Wrigley’s move into mints will lead to some cannibalisation of its gum sales.”
One supermarket buyer said: “Wrigley is putting the cat among the pigeons with this move, particularly as it follows on from Cadbury buying the Adams gum business and Nestlé striking a deal to distribute Colgate gum.”
Meanwhile, Wrigley plans to withdraw high-strength gum brand X-Cite despite its £10m-plus sales. MD Gharry Eccles said: “It didn’t meet our hurdle rates.”
Other plans include packaging facelifts for the existing Wrigley gum portfolio, new flavours and the first “tooth cleaning” gum, Orbit Professional.
Simon Mowbray
The company, which plans to throw its Extra gum brand into the mints arena from the end of next month, said the sector had suffered from a “credible lack of investment” in recent years.
And it singled out its biggest rivals for criticism as it vowed to reinvigorate the market. It also announced a wholesale range of changes across its gum portfolio with the X-Cite brand becoming a high profile casualty.
Wrigley UK sales director and deputy MD Declan Keogh said: “The (mints) market is in steady
decline and we believe the sector is suffering from a lack of credible investment. Cadbury Trebor Bassett accounts for half of all sales but shows no growth despite heavyweight investment behind the new 24-7 brand. The
same goes for Nestlé and Polo.” Keogh said Extra Mints, available to retailers from September 29 in Peppermint and Spearmint flavours, would redress that balance and also add to the Extra brand’s burgeoning sales. Extra gum was worth more than £107m at the till last year (Information Resources) and Wrigley has also reported rocketing sales for the Extra Thin Ice mint strips which it launched at the beginning of this year.
The company plans to back the new mints (rsp: 42p for a box of 20) with a first year spend of £12m which will include a new TV ad from November.
But the swaggering style of its launch is unlikely to impress its nearest rivals, particularly Cadbury which last year recorded double digit growth on both Trebor Extra Strong Mints and Trebor Softmints.
Graham Walker, sales communications manager at Nestlé, said: “Polo is performing well, up 4% by value in the year to date and up 25% in the last four weeks year-on-year. We actually believe Wrigley’s move into mints will lead to some cannibalisation of its gum sales.”
One supermarket buyer said: “Wrigley is putting the cat among the pigeons with this move, particularly as it follows on from Cadbury buying the Adams gum business and Nestlé striking a deal to distribute Colgate gum.”
Meanwhile, Wrigley plans to withdraw high-strength gum brand X-Cite despite its £10m-plus sales. MD Gharry Eccles said: “It didn’t meet our hurdle rates.”
Other plans include packaging facelifts for the existing Wrigley gum portfolio, new flavours and the first “tooth cleaning” gum, Orbit Professional.
Simon Mowbray
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