A recent Mintel report says this of our industry: “Prevailing economic and demographic trends have been positive for the industry during the past five years, with growing levels of affluence leading to steady growth in consumer spending. These conditions are set to continue during the next five years, meaning that there is a tremendous opportunity for operators to grow the vending market in the longer term through encouraging further trading up among consumers.

Snacks and confectionery is certainly an area for rewards and fits into all types of outlet opportunities. Not only is there an opportunity for food goods but equipment is another area; with food dispensing running hand in hand in this issue of VI we look at two manufactures Jofemar and CMS and their soft drop machines. Plus we give you a brief overview on what the snack and confectionery manufacturers have been doing to adhere to government health recommendations and take a look at new product launches.

Mars has its say…

Confectionery continues to provide foodservice operators with excellent sales opportunities according to the 2007 Mars Confectionery report. The market, valued at £4.5bn, accounts for 70% of the total value of the £6.4bn Sweet Snacks Market and its size can be best appreciated when compared to other categories: Milk at £2.5bn, Crisps and Savoury Snacks at £2bn, Fizzy Drinks at £1.8bn and Bread at £1.5bn.

“It’s when you compare the Sweet Snacks market to these other categories that you truly appreciate how big a market it is,” said Mars’ Trade Relations manager, Andrea Taylor. “What does this mean for foodservice operators? A very profitable market, which every foodservice operator, big or small, should make the most of.”

Total sales of Confectionery in Foodservice have increased by 1.7% year on year, bucking the trend of a declining market. However there is still more that foodservice operators can do to take advantage of the lucrative snacking opportunity, the report concludes.

In the Foodservice channel Mars has eight out of the top twelve best selling confectionery singles. The top twelve accounts for 63% of sales, so foodservice operators should focus on stocking the best selling lines to capitalise on this category.

MARS recently expanded its portfolio with the launch of a brand new bitesize product, MARS PLANETS. Building on the strength of the MARS brand and Masterfoods’ reputation as the leader in the bitesize market, MARS PLANETS was the biggest confectionery launch for Masterfoods in 2007.

Confectionery sales in workplace catering have grown by 3.6% bucking the trend of a declining market, commented a MARS spokesperson.

“Vending is very important in the workplace. Of those who have shops nearby, 57% of office workers would still go their vending machines first for snack purchases. 70% use their vending machine more than 1-2 times a week, with 48% saying they enjoy chocolate and confectionery snacks on a regular basis.

To cater for those 57% of office workers who would still go to their vending machines first for snack purchases, despite having shops nearby, foodservice operators should keep their displays fully stocked with the best selling confectionery lines.”

Cadbury’s

Cadbury’s has published the following statistics for their first half of trading in 2007:

• Revenue growth +6%: continued doubledigit growth in gum and emerging markets
• Focus brands +9% with Trident +27% and Halls +7%
• Underlying base business margins -30bps: reflecting continued investment in growth
• Dividend up 22% at 5.0p
• Exchange movements reduced revenues by 5% and underlying earnings by 10%

Todd Stitzer, Chief Executive Officer said: “First half revenue growth was strongly driven by investment in brands, innovation and marketplace execution. We expect continued good revenue growth in the second half, while margins will be impacted by the combination of growth investment and higher input costs. Our team remains focused on delivering the unexploited potential of our portfolio.”

Cadbury’s following statement regarding its confectionery business confirms its commitment to retailers and consumer alike. “Our brands become old friends with whom our consumers have special relationships. This makes our protection of their reputation an essential ingredient of our-long term success. We are also constantly seeking new and innovative ways to satisfy the consumer’s willingness to try new things. Consequently whenever we develop a new product we have to build consumer awareness through advertising and promotion. Consumers want to be informed, whether to be reminded of their feelings about established favourites or to be told of new delights available for their delectation!”

Sugar confectionery manufacture Swizzels Matlow is best known for the products which have been household names for many years, e.g. Love Hearts, Drumstick Lollies, New Refreshers, Fizzers, Double Lollies, Rainbow Drops, Double Dip and Fun Gums.

Speaking recently with Sue at Swizzels- Matlow brought back many childhood memories on how l spent my pocket money! Although methods of manufacture have moved a long way from the old labour intensive days, their products and their packaging are still basically the same. This speaks well for the product brands and consumer response to them. In 2006 they launched Meteor Crunch for the snacking market more information in our product showcase.

Walkers Crisps, a favourite with the vending trade and an easily recognized brand, has been working hard to ensure it keeps its market share, whilst also appeasing the healthier side of issues and changes to their product ranges include a reduction of saturated fat by 70%, with a standard bag of Walkers now containing less than a gram. That’s just 5% of your guideline daily amount and less saturated fat than half a chocolate digestive! And it’s all because they are now cooking their crisps in Sunseed Oil, one of the healthiest oils there is. The brand can also state that its crisps contain 8% of the daily guideline for salt intake. These changes have done nothing to impair the products’ taste but have ensured the brand’s standing as a major crisp manufacture.

United Biscuits, manufacturer of brands such as Hula Hoops, Skips and McCoy’s have also cut back on saturated fat in their top snacks.

Hula Hoops and Hula Hoops Ridges, with 55% less saturated fat; Skips and Discos now have 50% less saturated fat; McCoy’s, McCoy’s Specials and McCoy’s Specials Tortillas 30% less saturated fat; and Frisps and Roysters with 50% less saturated fat.

This information was published in March in response to consumer interest in health and nutrition.

Jon Eggleton, UBUK Marketing Director, says: “These changes are part of the latest step from UB in our focus on health and nutrition. We’re committed to producing great tasting snacks while also reducing saturated fat and sodium content so people can continue to enjoy their favourite snacks as part of a balanced diet and healthy lifestyle.”

Discos’ 50% less saturated fat reduction is clearly labelled on pack. Frisps and Roysters joined them in June, with a 50% saturated fat reduction. Discos, Frisps and Roysters are made with a blend of sunflower oil and vegetable oil.

All of UB’s crisps and snacks are baked or fried without partially hydrogenated vegetable oils, known for causing trans fatty acids (TFAs).

Manufacturer innovation

“Much of the innovation in the vending industry is coming from the machine manufacturers, in terms of improving mechanical efficiency and reliability, reducing downtime, improving stock management, reducing shrinkage and introducing new, more effective methods of cooking food. However, too little attention has been paid to the products that go in the machines and the mix of choices offered to the consumer, with the result that the industry has lagged behind the times slightly.”

Jofemar, a Spanish-based vending machine manufacturer, has announced the launch of a new soft delivery merchandiser, the Vision, which is equipped with “elevator delivery”. A good example of innovation on the part of the manufacturer, the new glass fronted merchandiser will be available through the company’s subsidiary, Jofemar UK.

The Vision is a freestanding merchandiser with direct product viewing, which eliminates traditional spiral based systems in favour of a new elevator product delivery system. Once a selection has been made, the product is not dropped, as with traditional spiralbased vendors. Rather, the elevator moves into place and the selection is gently pushed onto it and is then carefully transported to the product delivery tray. Since products are not dropped, canned carbonate drinks are never dented or shaken and sandwiches arrive in good shape. This new delivery method increases channel capacity by at least 20% when compared with spiral vendors.

Probably the most important benefit of the new system however, is that it dramatically broadens the scope of products which may be vended.

The Vision is equipped with one of the most advanced chiller units on the market claims the company. It has a temperature range of 5-9°C, which may be accurately set in half-degree increments. The machine can be easily divided into chilled and ambient zones, adjustable at three different heights. www.jofemar.com

CMS has a range of machines now suitable for your snack attacks and suitable for healthier products dispensing - full details can be found within our “Healthy Vending” Focus.

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The top twelve best sellers of 2006 were:

1. Mars
2. Twix
3. Snickers
4. Kit Kat
5. Bounty
6. Cadbury’s Twirl
7. Cadbury’s Snack Shortcake
8. Galaxy
9. Double Decker
10. Galaxy Caramel
11. Maltesers
12. Galaxy Minstrels