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At 78% of the total sugar-free confectionery category, gum still sets the pace. The Wrigley Company retains its leadership position, particularly in the convenience and route channels, with its strongest brand, Extra, taking an 88% share of the sugar-free gum category.
| Extra | 88% |
| Eclipse | 6% |
| Airwaves | 5% |
| Glean | 1% |
| Jila | 1% |
Nine of the top 10 gum packs are sugar-free variants, with seven of the top 10 carrying the Extra brand.
| Extra Spearmint tab | 17% |
| Extra Peppermint tab | 13% |
| Extra White pellet | 12% |
| PK Gold pellet (not sugar-free) | 8% |
| Extra Spearmint pellet | 5% |
| Extra Sweetmint | 5% |
| Airwaves Menthol & Eucalyptus | 4% |
| Extra for Kids | 4% |
| Extra Peach | 3% |
| Eclipse Wintergreen | 2% |
Gum sales continue to grow at double digit rates. In convenience, Wrigley sales grew 17% in value last year.
Wrigley is all about category growth, according to Catherine Pemberton, Marketing Director, The Wrigley Company. “We drive growth in the category with new products to appeal to new consumers, and generate new usage occasions amongst existing consumers. Our newest gum product is Extra Professional which was launched in February this year. It is designed to increase the frequency of chewing, by encouraging current chewers to chew more and bring lapsed chewers back into the category.
“Extra Professional is designed to give consumers ‘that just brushed clean feeling’. It is for those out of home occasions when you’d really love to brush your teeth, but can’t.
“And, Extra is a well-established brand. It is affiliated with the World Dental Federation which supports chewing sugar-free gum.”
Further leverage for the Extra brand further has come with Wrigley’s introduction of Extra Drops — the first non-gum product under the brand.
According to The Wrigley Company, the sugar-free candy segment is still underdeveloped in Australia. With the introduction of Extra Drops in February 2004, sales in the non-gum segment of sugar-free confectionery tripled.
Growth is also strong for other well-established sugar-free confectionery
brands. National grocery sales of Ferndale’s Jols and Licorette grew
82% in the past year, even though overall growth for sugar-free pocket packs
was only 4%. This low rate was mainly due to the withdrawal of some products
from the market such as Wrigley’s X-cite and Cadbury’s Trebor 24-7,
neither of which gained the product acceptance that was expected. Over the
two-year period, national grocery sales of sugar-free confectionery grew
21%. The key sugar-free brands are:
Jols pastilles
Extra drops
Zones power mints
Fisherman’s Friend* lozenges
* includes both sugar-based and sugar-free variants
“Sugar-free is permissable confectionery,” says Neil Fonti, National Sales Manager, Ferndale Confectionery. “Taste and quality are the most important characteristics. Unless it tastes good, people will not buy it.”
Juliette Toolin, Brand Manager with Stuart Alexander, agrees. “The supported sugar-free variants with unique product offerings are still doing well. Based on the continued success of the Sugar Free Fresh Mint variant of Fisherman’s Friend, Stuart Alexander launched Apple Spice Sugar Free this year.
“Apple Spice was earlier launched in Singapore, Canada and Switzerland. It was particularly successful in Singapore. Consumer research showed that the taste is broadly appealing and that the added benefit of being sugar-free gives customers their ‘reason to buy’. Fruit in sugar-free is becoming very popular because it is seen as healthy and refreshing.”
This is something Ferndale has known since 1995. Its Jols flavour range — Orange,
Black Currant and Forest Berries — is based on the natural fruit juice
flavours and concentrated real fruit juices. Unit sales of Jols doubled in
the past year.
And of the three flavour variants of Extra Drops, Wild Berry is the most
popular.
“Extra Drops carry a dental message similar to Extra sugar-free gum,” says Catherine Pemberton. “But, they are also a refreshing tasty sweet which is an alternative to sugar-based sweets. The aim is to increase the category by attracting people who do not normally eat confectionery.
“The different flavours appeal to different age groups: Wild Berry appeals to the younger consumer and Lemon to an older age group.”
Extra’s target market for gum is fairly broad — 18 years and over, both genders — but Extra Professional appeals to a slightly older demographic, 35 plus. Ferndale’s target market is female, aged 16 to 39.
New products and variants of candy are all about expanding the market. By introducing sugar-free products that have a broader appeal in taste and strength, the Fisherman’s Friend range appeals to a younger demographic.
This expansion was taken a step further with Cadbury’s launch of a sugar-free lollipop, Chupa Chups Cremosa, last September.
“Chupa Chups Cremosa capitalises on the trend towards healthier products,” says Ross Gilmour, Corporate Communication Manager, Cadbury Schweppes. “;With 30% less calories than a standard Chupa Chup and a ”strawberries and cream’ taste, it is ideal for children, as well as adults looking for a healthier alternative.”
“The product is appealing to mums (for their kids) and young females.”
Don’t let the demise of some products put you off the category, even if you were ‘burnt’. Although historically more successful in grocery than in convenience, sugar-free confectionery has a lot to offer.
“Many accounts are starting to create a sugar-free segment within their planograms with excellent results,” says Neil Fonti.
“The convenience market is a focus and an opportunity for us. Last year we appointed a new Convenience Manager who is working with the channel at head office and MSF level. We also have representatives at field level and a small team of reps to call on major franchised convenience groups and assist in merchandising and ordering. We supply POS material tailored to convenience, including a small perspex ‘money-maker’ stand containing 12 SKUs. Single packs are the drivers for route and convenience.
“Convenience should capitalise on this consumer trend towards ‘permissible confectionery’ and ensure these products are positioned ”within arm’s reach’ of the cash register, he said. “It is an impulse product and the impulse channel is where it should be.”
This is particularly important during product promotions.
“Don’t miss the boat with product launches,” advises Juliette Toolin. “Fisherman’s Friend Apple Spice’s launch is being supported by television advertising ($1.2 million) and a comprehensive sampling campaign (1 million samples) from May to September.
“We supply quality, durable perspex 4-SKU branded units plus POS material such as retail sheets, clip strips and dispenser units. It’s all part of the launch.”
Similarly, the launch of Chupa Chup Cremosa was supported with television advertising and mass sampling on magazine covers.
Let’s not forget the bottom line — slimmer for the customer, fatter for the retailer. Sugar-free confectionery packs generally attract a premium, with at least 10 percentage points more in margin than sugar-based confectionery. In convenience and route, margins of between 40% and 60% are possible. When compared to the space they take up, this is an excellent return.
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