Nestlé will reveal additional key initiatives to further drive its ambition to make food the number one most purchased category in travel retail, at this year’s TFWA World Exhibition (Beach Village, 01).
The company will launch significant brand and category initiatives within its VERSE model (Value, Engagement, Regeneration, Sense of Place and Execution), as it strives to accelerate industry growth by tapping into unmet consumer needs within the opportunity offered by the wider food category.
These initiatives will feature eight new travel retail exclusive products – and a completely new travel exclusive brand – Nestlé Sustainably Sourced Cocoa – that combines Nestlé’s Swiss chocolate expertise with sustainability.
This launch is the direct result of Nestlé’s work with the Rainforest Alliance to support cocoa farmers and their communities.
A successful food growth strategy
“The fantastic news is that the strategy is already working and has been embraced by many of our key retail partners across the industry,” noted Nestlé ITR general manager Stewart Dryburgh.
“We are delighted to report that m1nd-Set research for H1 2023 shows that the purchase penetration of food (including confectionery) has increased from 30% to 35% of duty free buyers. This is the fastest growth of any category.”
He added: “Critically we are seeing this growth from both confectionery and non-confectionery, with additional sales being incremental; in other words, with zero cannibalisation.”
While confectionery continues to be the beating heart of the food category, it is the non-confectionery sector – which includes vitamins/minerals and health supplements – that is generating the fastest growth across all travel retail sub-sectors.
Importantly, it has a higher conversion rate than any other for the fast-growing Gen Z traveller.
To ensure that growth continues, Nestlé ITR will continue to leverage its VERSE model through a range of new introductions, which it will present to its business partners at this year’s Cannes show.
Leading the way in Value is the new Nestlé Sustainably Sourced Cocoa premium travel retail exclusive collection. This features creamy smooth chocolate in a variety of flavours, all supporting the education of 156,000 children through the company’s collaboration with Rain Forest Alliance.
The brand portfolio includes 170g tablets in four flavours including Dark Chocolate, Blueberries, Almonds & Hazelnuts; Milk Chocolate, Cranberries, Almonds & Hazelnuts; Milk Chocolate & Hazelnuts; and Milk Chocolate, Raisins, Almonds & Hazelnuts.
Four further flavours – Milk Chocolate, Dark Chocolate, Dark Chocolate with Almonds and Milk Chocolate with Almonds – are available in 270g tablets.
The range also includes a 50-piece Assorted Chocolate Chunks sharing bag, featuring Milk Chocolate, Dark Chocolate and Milk Chocolate with Hazelnuts.
The Nestlé Sustainably Sourced Cocoa launch is being supported with a new gondola featuring the products, along with key NITR brands, which highlights the company’s long-standing and ongoing sustainability efforts.
“Nestlé Sustainably Sourced Cocoa will drive incremental sales by attracting the fastest growing consumer segments – notably Gen Z – into confectionery,” noted Dryburgh.
“My team looks forward to sharing this initiative and all our great work on the world’s number one chocolate bar, KitKat, sustainability award winner Smarties, and key gifting brands After Eight and Quality Street, at the TFWA World Exhibition.”
Other innovations at Cannes will include new flavours for Nestlé’s KitKat Senses collection, an updated travel retail assortment, and an exciting new industry-specific ‘Live Your Best Break’ communications platform, that will span all key touchpoints on the consumer journey.
Nestlé’s After Eight brand will be extended with a Strawberry & Mint Limited Edition. And there will be new additions to the Nescafé coffee portfolio, supported by new merchandising concepts.
Nestlé’s commitment to transitioning to 100% paper or recyclable packaging by 2024 will be showcased via new offers for KitKat and Quality Street.
Finally, Nestlé will unveil a travel retail-specific multi-brand Sustainability Platform, to meet both consumer and retailer needs. The platform, called ‘Together We Grow’, will engage at all points of the consumer journey, and enable both brands and retailers to demonstrate their sustainable credentials.
Bringing this all together will be the launch of a future-focused Food Reimagined store design and layout created in partnership with Portland Design. Further details will be announced in Cannes.