● Britain’s bestselling confectionery brands have shelled out almost a fifth more on traditional ad space in the past year as they’ve battled the headwinds they’re facing. 

● Biggest spender Lindt’s ads, focusing on the brand’s premium credentials, appear to have paid off with IRI registering a 14.1% value rise for its Excellence range, while Dairy Milk’s investment appears to have missed the mark. 

● Maltesers had the biggest year-on-year spike, teaming up with disability charity Scope for a series of ads entitled End the Awkward. Onefeatured an astonishingly frank sexual reference. Still, sales are down. Perhaps sex doesn’t always sell.

Confectionery’s top 10 advertisers 2017 from Ebiquity

Confectioners spend a fifth more on ads
   CinemaOutdoorPressRadioTV
  £m % % % % % %
Lindt 13.2 13.2% 4.20% 6.70% 14.50% 0.00% 74.60%
Cadbury Dairy Milk 11.6 24.8% 0.00% 40.10% 0.40% 0.00% 59.50%
Maltesers 8.4 69.3% 4.60% 0.20% 0.20% 0.00% 95.00%
Haribo 7.2 -11.0% 40.40% 0.00% 0.10% 0.00% 59.50%
Wrigley's 6.8 18.1% 0.00% 10.90% 0.30% 3.80% 85.00%
Galaxy 6.4 -44.9% 0.00% 0.00% 0.00% 0.00% 100.00%
Kit Kat 6.2 12.8% 16.50% 6.50% 0.70% 0.00% 76.30%
Kinder 5.9 -38.0% 0.00% 0.00% 5.70% 0.00% 94.30%
Werther's 5.3 44.5% 0.00% 0.00% 2.40% 0.00% 97.60%
Toffifee 4.0 42.9% 0.00% 0.00% 0.00% 0.00% 100.00%

● Not one of Britain’s 12 bestselling chocolate brands have registered growth at the tills this past year; their combined loss stands at an eye-watering £78.3m according to IRI. 

● Topseller Dairy Milk contributed most to this loss, £19.9m. Average prices fell across the brand’s portfolio by 2.4% as it did battle with rival and second bestseller Galaxy, which lost a hefty £11.4m, partly as a result of a steeper fall in price of 4.3%. 

● In spite of an inspired (and risqué) advertising campaign (see p43), Maltesers was the next biggest loser, with volumes plummeting 12% as prices soared by 5.1%. Only Kit Kat saw a bigger rise in average price, of 9.1%. 

● Lindt Excellence has seen the biggest growth, worth a cool £5m, benefiting from growing demand for premium dark chocolate and a big ad spend.

IRIworldwide.com

 

● There’s no sugar-coating it: the 2.5% value growth in take home sales of confectionery is inflationary. Volumes have slipped 0.2%. 

● “We’re buying less confectionery,” says Kantar analyst Charlotte Helary. “We hear a lot about how the population is developing a more ‘sophisticated palate’ and this is exemplified in the strong growth of dark chocolate (plain and plain recipe), which is showing growth far above the category level.”

● Examples abound of this premiumisation and shoppers’ growing penchant for plain chocolate. Lindt Excellence is the year’s fastest growing chocolate brand (see p58), for example, and the average price of Easter novelties has risen 14.6%. 

● “The trend towards premiumisation at seasons shows no signs of slowing,” says Helary. “Shoppers are treating themselves and each other more. In fact, the second most popular Advent calendar this year is from premium manufacturer Lindt.”

● With hitting the £1 price point still a priority for many manufacturers, particularly in the sharing bag and chocolate tablet sectors, many are cutting pack sizes in order to stay competitive. 

● But with commodity costs rising and the weakness of the pound continuing to squeeze margins, Helary questions the £1 price point will remain king: “Shoppers are expecting to be able to get a large bar of chocolate or a sharing bag for £1, but with rising commodity prices, for how long is this viable?”

The take-home snapshot is produced by kantarworldpanel.com