TRBusiness is shining a spotlight on the confectionery category, in a 12-part series called, ‘Confectionery Conversation’, sponsored by Mars Wrigley International Travel Retail. TRBusiness launched this editorial initiative in January 2019 and in 2020 has decided to publish this year’s columns online as well as in the magazine*.

 

In the first edition of this year’s Confectionery Conversation Charlotte Turner presents highlights from this year’s Global Industry Survey.

 

Whilst there was simply not enough room to feature all those confectionery companies who responded to the survey, we have endeavoured to present views from a broad spectrum here.

 

How do you assess 2019 and what are your expectations of 2020?

Jaya Singh, Managing Director, Mondelēz World Travel Retail 

In 2019, Mondelēz World Travel Retail (WTR) celebrated its 25th year of dedication to the channel. This was an exceptional milestone for us; it represents a quarter of a century of pioneering excellence in confectionery.

Amongst our confectionery counterparts, category positivity is tangible. Looking towards 2020, we will keep on flying the category growth flag, contributing towards More Shoppers, More Spend, More Often, in line with our Delighting Travelers category vision.

 

 

Questions have been raised about the quality and transparency of industry data. What is your assessment of this current predicament? How is this affecting your business?

Peter Zehnder, Head of Global Duty Free, Lindt & Sprüngli

Measuring the performance of confectionery in travel retail is challenging. The current solution provided by Generation is only an indicator due to the low market coverage and is not very transparent.

Thanks to the data provided by our duty free clients, we have quite a good understanding of the performance of the category, our competition and our brand. We would greatly appreciate if the TFWA, duty free operators and suppliers could develop reliable sell-out market data – as it is known on the domestic market (e.g. Nielsen) – in the near future.

 

 

What can the global duty free & travel retail industry do to further galvanise stagnant average spend per passenger levels?

Patrick Dorais, Director of Sales, Al Nassma

Provide more space and focus to confectionery in general and travel retail exclusive premium packaging formats in particular; especially in terms of cross- category sitings.

Some passengers only shop for example in the P&C section. It would be great if displays were sited there to provide a convenient and relevant cross-selling opportunity which would raise ATV.

 

The Chinese have long been the highest-spending travellers in our industry. Which demographic do you see emerging on a similar scale in 2020 and beyond?

Philip Bogaert, Senior Export Manager, Guylian

You have to look at those economies that are performing well and that have a growing young middle class population. I think Indians and also Vietnamese will grow in significance.

 

Which threats or challenges to our industry concern you most going into 2020? Please give reasons why.

Gary Clarke, General Manager, Mars Wrigley ITR

At a macro level, the carbon emissions associated with the aviation industry and the impact of our operations on the planet.

 

I also think that the lack of ability to organise ourselves to mitigate the effects of geopolitical challenges, over-regulation and global trade difficulties will become more of a problem. Then, there are the two issues of our industry’s inability to focus the category on fewer and better to deliver meaningful data to help our businesses.

 

TRBusiness and DFI have already made great progress in launching industry-wide sustainability initiatives, TR Plastic Pledge and Travel Retail Sustainability Forum (TRSF). What action are you taking to reduce your carbon footprint?

Jan Pasold, Managing Director GTR, Alfred Ritter

Ritter Sport has already achieved its own sustainable and profitable agroforestry cocoa plantation certification (EL CACAO, since 2012). It will achieve carbon-neutral production by 2022, in response to reforestation, through its El Cacao program in Nicaragua.

It uses 100% certified sustainable cocoa under internationally recognised standards (since 2018) and we are working on several sustainability projects which can’t be disclosed at this point in time.

 

Have you seen industry conferences, exhibitions and other events evolve/change in order to better serve your needs and those of the industry? Please give a few brief reasons for your views.

Andreas Reckart, Vice President Middle East & TR, Ricola

There is definitely more professionalism involved and hence the quality is improving. Nevertheless we should make sure that the number of events does not get out of hand.

 

What are you most looking forward to seeing happen in your business in 2020?

Filip Van de Vyver, Sales & Marketing Director, Biscuiterie Jules Destrooper

More exchange of data, in order to increase spend per pax and in order to optimise the range per store. More focus on biscuits segment, within the confectionery category as the biscuits segment is highly under-represented and has great potential.

 

*Columns may have been modified for the website. Please subscribe to the magazine here to read all original content in the print magazine ahead of our non-subscribers.