Nestlé shares detailed research backing 10 in 10 confectionery & fine food plan

By Charlotte Turner |

Nestle-10-in-10-infographic-leadNestlé International Travel Retail’s 10 in 10 plan seeks to double the travel retail confectionery and fine food sector to hit $10bn in sales in the next decade by starting with one question; why do people shop?

As reported, Nestlé ITR is spearheading an ambitious plan to double sales in travel retail’s confectionery and fine foods category over the next decade to $10bn.

NITR General Manager Stewart Dryburgh announced the initiative at the ACI Commercial and Retail Conference in Iceland earlier this year.

Nestlé, which counts KitKat and Smarties among its market-leading brands, carried out exclusive research across a wide range of markets and shopping occasions and identified nine key category growth drivers to unlock the full potential within the channel.


Today, after months of discussion with industry colleagues following the announcement and the opportunity to discuss it with the wider market at the TFWA World Exhibition in Cannes, Dryburgh is more confident than ever that NITR has found the right track for the future.

“The confectionery and fine foods sector has changed,” he says.


“We cannot keep doing things the way we always have. Consumers are evolving, trends are changing and how people interact with our brands and our marketplace is completely different compared to in the past.

“At Nestlé we have been adapting to change for more than 150 years. We recognised that we needed to do so again and the potential we have identified in the travel retail market is very, very exciting.”

While many believe that footfall and penetration rates are still well below where they should be, NITR says its research has identified ‘key opportunities’ within the market.


“It is about making sure we are making the most of the opportunities which are there,” Dryburgh explains.

“We needed to identify what makes people shop in travel retail and tailor our offers to their needs and requirements. Thanks to our extensive, proprietary research we have now identified what those needs and requirements are. That makes the sky the limit.”

NITR General Manager Stewart Dryburgh spoke to TRBusiness Editorial Director, Charlotte Turner at the TFWA World Exhibition in Cannes about the company’s 10 in 10 plan, plus the strategy for its hero brands in travel retail next year.


Gifting, sharing, self-treat and ease of purchase are key aspects of NITR’s new outlook on the industry, with a quarter of shoppers identifying them as key purchase drivers.

On top of that is the ‘lure of exclusivity’, says NITR, revealing that 27% of shoppers say the fact they cannot find an item at home is a reason to buy and 38% of European travel retail buyers will purchase a unique item in duty free.

NITR says its research has been ‘forensic’, breaking down each of the potential drivers for growth to identify the trends and barriers in each case and, furthermore, outline specific platforms and ideas which will maximise each opportunity.

The nine key drivers identified are grouped in three categories: Elevated Experiences, Deeper Connections and Better for You. “Each of these can be maximised under NITR’s SOUL framework of Story, Occasion, Unique and Local, which creates products that both inspire consumers and meet their needs at the moment of purchase,” adds NITR.

The confectionery and fine food sector grew 9.7% in travel retail between 2006 and 2014. To hit the 10 in 10 target would require a further growth of 7.1% by 2028.

Dryburgh is emphatic that the 10 in 10 project is not a Nestlé marketing activation, but a plan to drive growth across the entire category and market.

He says: “These drivers are consumer-led and represent a behaviour change which our customers require of us as both brands and as a marketplace. They are not commercial objectives but are future-focussed opportunities which will be executed across numerous channels and can be supported across a variety of platforms.”


NITR General Manager Stewart Dryburgh announced the initiative at the ACI Commercial and Retail Conference in Iceland earlier this year.


In 2004, Dryburgh claimed the confectionery category, which was worth $1.4bn at the time, could double in size in five years.

In 2010, sales hit $2.8bn according to Generation Research, making it the third largest product subsector after women’s cosmetics and fragrances. When coupled with fine foods, the sector was then worth $3.6bn.

Since identifying the new-look purchase drivers which will bring about the new goal of $10bn sales, the NITR team has been working hard to turn them from ideas into reality.

“We are not just paying lip service to identifying market change,” adds Dryburgh. “This is about delivering material and quantifiable change which will benefit consumers, and as a result retailers and brands owners.

“It is exciting. Our research looked at the needs of 34,000 consumers across 19 markets around the world. We have identified not just what makes them buy, but why and how we can meet those needs on every possible level.”


The Deeper Connections need state incorporates four of the key growth drivers NITR has identified: All Year-Round Gifting, Share & Connect, Celebrate the Seasons and Uplifting Breaks.

“Gifting is the very essence of travel retail, especially in the confectionery category and it plays a central role in NITR’s new framework and plans for growth in the sector,” says NITR.

NITR’s research has demonstrated the importance of ‘appreciation’ through All Year Round Gifting where shoppers are looking for something that provides a connection with the person they are buying the gift for. “Cherishing friendships and reminders of love were identified as the most popular aims of the purchase, with 10% of shoppers citing them and most admitting they would pay a higher price for such items,” says NITR.

Dryburgh explains: “In these situations, shoppers are looking for something which will convey the appropriate message. They might be a family enthusiast coming back from a trip and they want something special and unique which demonstrates their care and commitment.

Nestle-10-in-10-celebrate-the-seasons“As such, attractive packaging is key and shoppers want chocolates at a variety of prices, but in formats and packaging which suit the gifting approach and show the buyer’s care. This gifting idea goes beyond specific holidays and is a central part of what our shoppers require of us.”

A similar concept applies to NITR’s identified Share & Connect driver, which seeks to answer the needs of shoppers who are looking for something to bring them together with friends, family and co-workers. In contrast to the thoughtful presentation of gifting products, NITR believes such items need to be accessible to all, with favourites and novelties combined in a bitesize and fun format.

“Packaging for sharing is different to gifting, of course,” Dryburgh continues.

“These are products people want to enjoy together. It’s about something that the group can experience together. It needs to be visually appealing, appropriate for Instagram and easy to consume while chatting, socialising or travelling in a group.”


The idea of sharing and connection is developed in the Celebrate the Seasons driver, which provides gifts and items to enhance seasonal moments with dedicated packaging and themes to help shoppers celebrate and bond with friends and family.

Meanwhile Uplifting Breaks creates opportunities for travellers to take a moment for themselves, enhanced by a food experience, with items which are easily distributed from kiosks and machines.

“The demand for healthier, tasty, everyday confectionery is also now a fast growing part of our market today,” Dryburgh reflects. “This is reflected in our Better for You need state.”


Healthy snacks and better treats is one of the key consumer demands NITR is answering with its new YES! fruit and nut bars.

The Happy Parents, Happy Kids driver is one of two which appears under the Better for You needstate, alongside Healthy Snacks & Better Treats. They bring together the dual purposes of healthy snacks and treats.

Dryburgh explains: “A vital part of this new research and framework was to not try and fit shoppers’ buying habits into our prescribed ideas, but rather make sure we are creating products and activations to meet each of their specific needs.”

With more and more millennials travelling with children, the idea of unhappy kids being a negative factor impacting on the journey is a key issue which NITR identified in its research.


According to the company, parents want to treat their children in a manner which is both responsible and engaging, while also seeming like a treat. These shoppers are more aware of special offers and promotions and are looking for something which is not available elsewhere, they also react well to products which boast large, eye-catching packaging.

On top of that, figures from M1nd-set show that travellers with children tend to spend more (on average $204) than those without (averaging $106).

“These shoppers often want something to make the journey frictionless and easy to buy,” Dryburgh says. “We are looking here, for example, at combining the best in eye-catching packaging and responsible treats, with items which are both easy to buy and easy to use.”

Health is not just a consideration for young consumers and the Healthy Snacking driver seeks to provide for adults looking to treat themselves, or fill the gap between meals, but who seek taste, natural ingredients and sustainability. NITR is specifically meeting this need with its YES! brand in travel retail, which features fruit, nut-based and gluten-free bars, presented in recyclable paper packaging.

Nestle-10-in-10-travel-souvenirRAISING THE BAR

The final set of drivers is grouped under the need state of Elevated Experiences and includes Experience & Indulgence, Give Me a Boost and Travel Souvenir.

While Give Me a Boost provides for shoppers needing physical and emotional fuel when they are on the go, with products for immediate consumption bought at point of sale or on impulse, the Experience & Indulgence driver targets discerning discoverers who habitually consume and seek value in the market. This reflects M1nd-set’s discovery that more than a third of shoppers buy confectionery that they cannot find at home.

Travel Souvenirs is a vital driver for the travel retail market, where NITR observed that shoppers require a reminder of their travels, and accounts for almost 20% of the perceived value of gifting chocolate. Destination branding and local products enhance the attraction of items created in this category, but customer engagement is further strengthened by customised activations and personalised experiences.

“Those seeking travel reminders are unique to the travel retail market,” Dryburgh explains. “Travellers want to bring something back from their travels which allows them to remember and share the experience with those they know and love.

“Another exciting area opened up by travel souvenir is the growing area of fine food, be it either local brands or global brands in different formats from those available in the travellers home market. We’re seeing rapid growth in this area and, as the world’s largest food & beverage company, we’re really excited to be able to provide direction for the industry in this area.”

Dryburgh concludes: “What is exciting about Nestlé’s new ‘need state’ framework, and the nine category growth drivers we have identified, is that the range of opportunities for development are almost limitless. This channel’s growth potential remains incredibly high. The whole team at Nestlé is really excited by the opportunity to work with our partners to bring this to life, untapping the $10 bn potential in the coming 10 years.”


In summary, Nestlé’s research has identified at its core three consumer need states: Deeper Connections, Better for You and Elevated Experiences. Within these are housed nine drivers of category growth.

Deeper Connections – All Your-Round Gifting; Share & Connect; Celebrate The Seasons; Uplifting Breaks

Better For You – Happy Parents, Happy Kids; Healthy Snacks & Better Treats

Elevated Experiences – Experience & Indulgence; Give Me A Boost; Travel Souvenir

The growth drivers are illustrated in the slides below.


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