Ferrero says its core brands - and not ‘short-term NPD’ - will drive future growth.
The confectioner said it expected its UK sales to grow by about 12% a year for the next five years, adding there was plenty of “organic growth potential” in the market.
In the past 12 months, sales of Ferrero confectionery in the UK have risen 22.1% to £189.5m, driven by a £23m surge in sales of the Kinder kids range, which has benefitted from strong sales of Kinder Surprise [Nielsen 52 w/e 19 July 2014].
Ferrero is next month rolling out new limited-edition Pink and Blue Kinder Surprise eggs featuring Transformers and Barbie Fashionistas eggs, supported by a £3.2m marketing drive. It is also ramping up support for Kinder chocolate, with a £6.8m push, launching a £7m campaign featuring new TV ads for Ferrero Rocher, and its first standalone outdoor ads for Raffaello. The Raffaello campaign coincides with the rollout of a new 150g SKU (rsp: £3.89) of the ‘lighter’ praline brand to target younger consumers.
In September, Ferrero is also launching Golden Gallery, an assortment of luxury chocolates from its UK and European portfolio (rsp: £7.99/box of 22 and £14.99/45).
Ferrero UK sales director Jason Sutherland said although the company had rolled out more NPD this year than it had in the preceding five years, its growth in the UK was likely to come from its established core brands rather than any “short-term” innovation.
“Our objective is to never launch something we can’t keep in play and sustain,” he said.