The report describes the market as ‘highly branded’ and despite the economic downturn there has been ongoing investment in product development. It notes that a number of brands have been extended into sharing formats, such as pouches and tubs, ‘in a bid to capitalise on informal sharing occasions.’ In its Executive Summary, the ‘squeeze’ on consumer spending is said to have encouraged more people to stay at home instead of going out for their social and leisure activities, ‘so suppliers have targeted many of their products at this market, for the most part extending brands into this subsector, rather than taking the risk of introducing new names.’

As nine out of ten adults buy chocolate bars and similar products, the report suggests that the potential for growth is limited. “This is compounded by the high fat, sugar and calorie content of many products in an increasingly health conscious society,” it says, adding: “While the economic downturn has served to limit growth in added-value ranges, including premium and organic products, it is expected that these will boost sales as the economy improves.”

Veronica Gartland, Confectionery Business Unit Lead at Nestlé Professional comments: “Nestlé Professional Confectionery has recently undertaken a refresh of its highly successful chocolate sharing bag range. Two more popular Nestlé brands, MILKYBAR Giant Buttons and ROLO, have been launched in a bite-sized sharing format alongside the introduction of new re-sealable packaging, which features ‘love to share’ branding across the full range. By driving further value into the category, the bags look set to enhance the opportunity for vending operators to tap into the growing consumer demand for sharing products.” In February, Nestlé launched its brand new KIT KAT POP CHOC sharing bags, which are full of delicious bite-sized KIT KAT.

Susan Nash, Trade Communications Manager at Cadbury UK commented on the success of its own product range over the last year: “Cadbury made some exciting developments within singles, sharing, sugar, hot beverages, mints and gum and over the counter in 2010 which contributed to strong sales within the wholesale channel. Some NPD highlights include the introduction of Cadbury Dairy Milk Bliss and the addition of Crunchie Rocks to the bitesize portfolio. Sharing bags perform well because they attract a variety of different shoppers and our range has something to suit an array of different tastes. The introduction of Cadbury Caramel Nibbles and Cadbury Crunchie Rocks has brought different consumers to the brand and increased total bitesize penetration.”

Established in the UK since 1966, Ferrero also has a rich confectionery heritage and is said to be the 4th largest chocolate confectionery company in the UK. In the vending market both kinder bueno and tic tac are very successful, helped recently by major licensing deals in film and TV.

A commitment to health

MARS, SNICKERS, MILKY WAY, TOPIC and FLYTE now all contain at least 15% less saturated fat per bar compared with their old recipes. The reduction, which will remove more than 600 tonnes of saturated fat per year from the UK diet, is the latest step in Mars’ ongoing commitment to improve its products’ nutritional composition. Fiona Dawson, managing director, Mars Chocolate UK said: “We remain committed to improving the nutritional quality of our products whilst delivering the same great taste to our consumers.”

Confectionery Machines

Research by Crane Merchandising systems has revealed that: 30% of consumers think that vending is unreliable; 70% of consumers walk away if their favourite selection is not available; and 41% of consumers would be more likely to use a vending machine if they could be guaranteed a purchase or their money back. Crane believes its machines offer the ‘best consumer experience’ with a large, bright shop window and intuitive 1,2,3 selection process. The company also recommends driving sales with promotion, offering multi vend, winner mode and prize mode functionality.

According to N&W Managing Director, Dave Ward, the UK market for confectionery machines is performing ‘better than expected’. The company’s Samba, thought to be one of the country’s bestsellers in its category, continues to impress and Samba Top, complete with its patented lift system and optional hi-tech video screen, is attracting buyers as well as admiring glances.

“Samba was performing well even before it won the Auto Vending 2008 Innovation Award and since then it has become a firm favourite with operators and end-users", said Dave. "Samba’s highly intuitive customer interface makes it an easy machine to use and its robust manufacture belies its aesthetic appearance, adding to its appeal."

Also performing well is the Snakky Max Green, which combines advanced functionality with good looks and energy saving performance – endorsed by an A+ EVA rating. "Snakky Max Green is one of the most eco-friendly confectionery machines that we’ve ever produced", Dave said. "It allows a refreshment service to be offered in smaller offices or sites where space is limited and it’s eminently flexible, with a capacity of just under 350 products and the ability to host up to 30 selections (depending on customer specification). Snakky Max can be linked with other Necta products, such as the Astro and Canto hot beverage machines, either ‘stand alone’ or as a slave, enabling multiple purchases to be made in a single transaction.

"The emphasis these days is on flexibility, space-saving and excellent environmental performance" Dave said, "which means we are well placed right now to meet the demands of the marketplace."

To drive confectionery sales, operators should look to offer the best selling brands, presented in glass fronted machines that function quickly and reliably, creating a more retail led customer experience. With consumer finances under continuing strain, a focus of product development, machine ease of use and promotional activity is a must in every location.

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