Confectionery & food most cross-selling category in Americas, says Nestlé

By Luke Barras-hill |

The channel-exclusive Nestlé Sustainably Sourced Cocoa range launches this month.

Nestlé International Travel Retail (NITR) is eyeing substantial growth in the Americas region as the company makes its appearance at the IAADFS Summit of the Americas.

The company says a 230% increase in incremental sales in Q1 2023 versus Q1 2022 indicates confectionery and food as the most cross-selling category in North and South America.

North and South America accounts for 18% of global passengers while being positioned as the market with the best recovery (+106%) on 2019 figures, according to NITR.

As such, NITR General Manager Stewart Dryburgh says the company views the Americas market as a growth platform, offering strong opportunities in travel retail via duty free operations in airports, border stores, in the cruise sector and other channels.

New KitKat products bolster a growing portfolio of products on display to buyers at the Summit of Americas.

 Projected growth circa +12%

Dryburgh is confident that NITR will see double-digit growth in the Americas this year.

“The current forecast is for around 12.2% growth, but we are setting our sights higher than that, despite any price increases which are always a challenge,” he said.

In Latin America, NITR is focused on developing strategic partnerships with local brands and landlords while exploring untapped markets and emerging destinations.

The company notes the increase in international tourism and air travel in the region coupled with the increasing importance of arrival stores.

While being a region susceptible to volatility, LatAm has a resilient duty free sector and extensive multi-channel offer.

Increasing NITR’s permanent visibility in key US airports new spaces and heightened visibility is being achieved through an improved product assortment and targeted campaigns.

Its network of brand ambassadors in Mexico and South America will increase, as will collaborations relating to sustainability with major travel retailers.

“NITR must be proactive to ensure we stay ahead of market trends and demands and target growth through exciting and engaging activations and geographical expansion, not just through airport stores but also through partnerships in the cruise sector and border stores,” said Global Head of Sales Jorge Hadweh.

“There is a strong opportunity to increase our share of the market in North America and we intend to make the most of it.”

Portfolio to build food category mission

At the IAADFS Summit of the Americas, NITR will highlight products within its VERSE (Value, Engagement, Regeneration, Sense of Place and Execution) model, including travel retail exclusive products.

NITR says it is increasing its network and tapping into consumer needs and demands with a strong product lineup based on the company’s mission to make food the number one most purchased category in travel retail.

Its latest channel-exclusive Nestlé Sustainably Sourced Cocoa line launches this month and underlines the company’s commitment to innovation and to leading the regeneration of the confectionery category.

Its ‘Does Good, Tastes Great’ tagline, has already met with very positive reactions from travel retailers, according to NITR.

“We are coming to the IAADFS Summit armed with new products – one in particular, our new Nestlé Sustainably Sourced which is a game-changer in terms of both exclusivity and sustainability – and a strategy which can only produce positive results in the confectionery and food categories,” said Dryburgh.

“Not only do we have the products to take these categories forward, we also have the marketing tools and platforms to support our industry partners.”

The Nestlé Sustainably Sourced Cocoa product lineup includes four 170g tablets: Dark Chocolate, Blueberries, Almonds & Hazelnuts; Milk Chocolate, Raisins, Almonds & Hazelnuts; Milk Chocolate Cranberries, Almonds & Hazelnuts; and Milk Chocolate & Hazelnuts.

There are four 270g tablets in Dark Chocolate, Dark Chocolate with Almonds, Milk Chocolate, and Milk Chocolate with Almonds.

 

A 426g Sharing Pouch is also available, containing approximately 45 individually wrapped pieces in Milk Chocolate, Dark Chocolate and Milk Chocolate with Hazelnuts.

The global rollout of Nestlé Sustainably Sourced Cocoa begins in May in partnership with Otis McAllister in North America and other retailers for the rest of the Americas region.

Nestlé ITR is aiming to improve its presence and positioning as a food supplier partner in the Americas travel retail markets by increasing distribution at top airports and other channels.

This will continue throughout the summer, supported by major activations in partnership with key travel retailers.

The launch is being supported by a new gondola, featuring the products along with other key NITR brands and signalling the company’s long-standing and ongoing sustainability efforts.

Dryburgh believes that Nestlé Sustainably Sourced Cocoa will drive incremental sales by attracting the fastest growing consumer segments – including Gen Z – into confectionery.

Other featured products at the Florida event will include the travel retail exclusive KitKat with Lotus Biscoff.

The 122.5g pack features a crunchy, caramelised cinnamon spread made from Lotus Biscoff biscuit sandwiched between classic KitKat wafers covered in creamy milk chocolate.

The KitKat Cookie Dough line, popular with the Americas market, includes a 52g KitKat Cookie Dough Wafer Bar and 42g KitKat Chunky Cookie Dough with a layer of rich fudge cookie dough.

Following Smarties’ rollout of its recyclable paper packaging in 2021, its products will make an appearance at this week’s Summit.

The Smarties Cool Creatures line uses augmented reality to inspire imagination and learning around sea exploration.

The kit includes four sea creature construction sheets, a play mat, eight pencils and sticker sheets. It also includes four mini tubes of Smarties in recyclable paper packaging.

Nestlé ITR General Manager Stewart Dryburgh.

Nestlé ITR General Manager Stewart Dryburgh.

Elsewhere, NITR will spotlight the new After Eight 400g Limited Edition Strawberry and Mint, the Nescafé Roastery Collection, aligned to its goal of making food the number one most purchased category in travel retail, while promoting its ‘Together We Grow’ platform.

The travel retail exclusive concept aims to help retailer partners accelerate sustainable programmes, under the ‘Regeneration’ pillar of NITR’s VERSE model and is exclusive to travel retail.

This adds to the work undertaken across its packaging projects, the Cocoa Plan and Coffee Plan responsible sourcing initiatives over the last 15 years.

Launched in 2009, the Nestlé Cocoa Plan aims at improving the livelihoods and social conditions for cocoa-growing communities by incentivising education enrolment, advancing regenerative agricultural practices and promoting gender equality and product sustainability.

It links to the Income Accelerator Programme building on efforts to tackle child labour risks in cocoa production.

The programme rewards famers not only for the quantity and quality of cocoa beans they produce but also for the benefits they provide to the environment and wider community.

NITR can be found exhibiting at the Nestle booth (101) and at North America distributor Otis McAllister’s stand (201).

READ MORE: Nestlé celebrates official launch of its ‘Sustainably Sourced’ chocolate range

READ MORE: Nestlé ITR returns as Gold Sponsor of consumer-centric TR Consumer Forum

READ MORE: Nestlé introduces KitKat using cocoa from its Income Accelerator Program

Middle East

MEADFA Conference 2024 ‘heading to Abu Dhabi on 17-19 November’

This year’s Middle East & Africa Duty Free Association (MEADFA) Conference will take...

International

DFWC Q1 2024 KPI Monitor indicates rise in duty free impulse purchases

Impulse purchasing within global duty free is on the rise, according to the latest Duty Free...

Asia & Pacific

Avolta details “bold and ambitious” goals to grow its APAC business

With a number of key developments coming to fruition, including its operations at Wuhan Tianhe...

image description

In the Magazine

TRBusiness Magazine is free to access. Read the latest issue now.

E-mail this link to a friend