Act on impulse for exceptional candy sales
The category saw a 12.8% increase in convenience store sales last year, meaning over £860 million worth of chocolate was sold in the 12 months to March 2024. With 43% of confectionery being bought on impulse, getting the range right and creating eye-catching displays is key to driving sales.
The main stand is the key selling space for this category, accounting for 61% of individual sales and 56% of bulk sales. It is also essential to keep up to date with current trends and new product developments, as this adds excitement and attracts new buyers to the category.
Various needs
This will enable retailers to meet the diverse needs of consumers while boosting sales by stocking a range of different formats. Single and shareable formats are key in the convenience sector, with sales up 13.7% and 13.4% respectively. Single formats are also experiencing slight volume growth, up 1.1%, demonstrating the importance of impulse purchases in this category and representing a real opportunity for retailers. Multipacks have seen the fastest growth, with sales up 16.4% in value, providing another key opportunity for retailers.
Many brands have wanted to capitalize on the category’s success, as Werther’s Original did by launching chocolate-covered caramels last year.
Andy Mutton, Storck UK Brand Managing Director, said: “Last September we launched our new Werther’s Original Chocolate Covered Caramels to meet the growing demand for caramels and chocolate covered caramels. Earlier this year we also launched our new Riesen Espresso flavour, which meets the growing demand for coffee and chocolate covered coffee.”
Gifting is growing by 18.1%, highlighting another opportunity for retailers as consumers focus on convenience and impulse buying. Mutton says: “Chocolate gifts, which include boxes of chocolate and seasonal novelties, remain important and should not be overlooked by retailers, with value sales growing by 8.2%.”
Boxed chocolate sales increased by 3.4% to £72.8m, a welcome recovery from the 6% decline seen in the same period last year. This comes against the backdrop of overall boxed chocolate retail sales of £896m, up 10.7% on £810m last year, suggesting the recovery is broad-based.
Lindt Lindor remained the single bestseller in impulse-focused stores with £11.4m (up 3%), with Ferrero Rocher close behind with sales of £9.9m.
Chris Smith, Partner Brand Manager at wholesaler World of Sweets, said: “Chocolate confectionery is performing incredibly well in the convenience sector, particularly when it comes to gifting. Consumers are always looking for treats to surprise their loved ones, whether it’s for birthdays, special occasions or the festive season.
Premium trend
“The current trend in the chocolate confectionery industry is the growing demand for premium chocolate boxes. When consumers are buying chocolates to give as gifts to someone else, they are more likely to spend a little more for beautiful packaging, quality products and innovative flavors,” he adds.
It’s important for retailers to regularly expand their product range and offer new products to inspire gift ideas. “We encourage retailers to introduce the popular Anthon Berg brand into their chocolate range,” says Smith. “Our signature chocolate liqueurs are bottle-shaped dark chocolates filled with famous spirit brands from around the world. Tasty drinks include Cointreau, The Famous Grouse, Drambuie, Remy Martin and Grand Marnier, and most recently Southern Comfort.”
The brand is also tapping into the premium gifting category with its Single Malt Scotch Whisky collection, which comes in 5- and 10-piece sizes. “Anthon Berg has partnered with five renowned single malt Scotch whisky brands to create these delicious liqueur-filled chocolates,” Smith explains.
“The five-piece format is a great way for shoppers to spend a small amount on a premium gift item and makes a great token gift for birthdays and seasonal occasions.”
The ‘big night in’ remains more popular than ever as shoppers look to save money while enjoying time with family and friends, and 2024 is set to provide even more opportunities for retailers to make the most of this occasion.
“As consumers come together to connect and socialize, many will also be looking for larger packs of their favorite treats that they can enjoy together,” Mutton says.
“Brands like Werther’s Original and Riesen are well positioned to help retailers capitalize on opportunities like these and offer diverse options and formats to complement the customer experience.”
Priced-to-order packaging (PMP) continues to provide retailers with a great opportunity to grow sales, accounting for over 34% of confectionery sales in convenience stores. While many consumers still face tough decisions about their spending, they continue to look for ways to indulge.
Mutton adds: “Not only do PMPs reassure consumers of value, they also help retailers deliver an accessible price point that builds trust. PMPs also appeal to multiple occasions and shopping missions, so retailers need to ensure they offer a variety of PMP formats from leading brands to address multiple confectionery occasions and signal value to their shoppers.”
Famous Names
Cocktails are very trendy and appeal to a younger demographic. When paired with chocolate, they are a highly sought-after combination. Smith of World of Sweets says: “Our high-quality chocolate cocktails are created by Anthon Berg’s team of chocolatiers, who have produced delicious dark chocolate bottles filled with creamy liquid toppings inspired by cocktails from around the world.
“They worked with expert mixologists to develop delicious cocktail recipes including the Cosmopolitan, Mojito, Espresso Martini, Vodka Mule, Pina Colada and Lemon Drop.”
New to the range are Anthon Berg Baileys treats, which consist of seven individually wrapped pieces of marzipan covered in Anthon Berg milk chocolate, with a dark chocolate swirl to decorate and the taste of Baileys. Smith says: “Not only do they taste great, they are also beautifully packaged under dual branding, which catches the eye of shoppers.”
Chocolate therefore remains a dynamic category with a lot of innovation and variety to retain customers.
Brand News
KIT KAT CHUNKY DOUBLE CRUNCH
Latest edition to join the Kit Kat Chunky family
Kit Kat Chunky Crunchy Double Chocolate is the latest addition to the Kit Kat Chunky range. This limited edition 42g bar is made with cocoa mass from families enrolled in Nestlé’s Cocoa Income Accelerator programme.
STARBAR JOINS THE DUOS REVOLUTION
Growing Format Attracts Another Singles Favorite
Cadbury has added another of its favourite chocolates to the growing ‘duos’ format. Retailers are advised to offer Starbar Duo as a key part of their chocolate offering, alongside the rest of the Cadbury Duos range, including in value-packed takeaway and meal sections.
CADBURY BRINGS BACK THE TOP DECK
The bar returns for a limited time in two formats
Top Deck has returned as part of Cadbury’s ongoing 200th anniversary celebrations and will feature vintage-inspired packaging from the original Top Deck from 1993.
MARS LAUNCHES MINI M&M’S
The new addition takes advantage of the trend towards smaller formats
Mars Wrigley launched M&M’s Minis in an attempt to capture the snacking market. M&M’s Minis are 3.6mm smaller than regular M&M’s, following the trend toward smaller sizes.
NEW DIY CINNAMON FLAVOR FOR FLIPZ PRETZELS
Pladis adds trendy flavor to the Flipz brand
Pladis is expanding its Flipz chocolate-covered mini pretzel range with the introduction of a limited edition cinnamon roll-inspired version. The launch is aimed at “exciting existing consumers” and recruiting more newcomers to the brand.
Top Tips to Maximize Sales
❚ Diversity is important: Offer a variety of textures, flavors and formats. This ensures that you meet your customers’ different preferences and offer them a wide choice.
❚ Improve visibility: Use signage and point-of-sale materials strategically. These elements attract attention and improve visibility within your store, drawing customers’ attention to specific products.
❚ Grouping by occasion: Think about cross-category merchandising. Group similar products based on occasions or themes.
❚ Family sharing: display objects suitable for family gatherings or moments of sharing together.
❚ Gifts: Arrange products that make great gifts in a dedicated section.
Chocolate Statistics
❚ Seventeen percent of total single chocolate sales are in the duo/king-size format, highlighting the importance of this broader “hunger” range in the symbol and independent sector.
❚ Almost a third (30%) of all confectionery sales are priced packets (PMP) in the mass retail channel – this figure rises to 43% for sharing bags and 65% for chocolate blocks.
❚ PMPs outperform non-PMPs, with PMPs recording 28% year-over-year growth in value, compared to 11% for non-PMPs.
❚ The chocolate sachet and block sharing segment is worth £270m a year and is growing at 10%.
