>>a look at how new brands are performing

Product: Baci
Company: Nestlé
Launch date: January 2005

Baci, Nestlé’s answer to Ferrero Rocher, ran into trouble before it even hit shelves at the beginning of this year.

The Italian-inspired premium chocolate brand was due on-shelf in September 2004, but Nestlé delayed the launch of the confectionery range due to production problems. At the time, it claimed the problem was due to retailer demand outstripping supply and said it had taken a pragmatic decision to delay dispatches until November and then concentrate on a full consumer launch in January 2005.

Valued at £6m [ACNielsen MAT May 14, 2005] the newcomer has failed to set the gifting confectionery category alight, despite Nestlé’s initially bold predictions for the range. This figure translates to a 2.4% share of the £262m boxed chocolate single market [ACNielsen 52 w/e May 2005].

People in the know largely agree on why the range, which is aimed at 30 to 45-year-old women and was launched as direct competition to old favourite Ferrero Rocher, has failed to live up to expectations.

“The brand suffered from a very poorly planned launch. The product is made abroad and there were problems with supply and shipping. In addition, the advertising did not coincide with the launch - this has led to consumers being confused about what the product is,” said one buyer.

But, despite Baci’s unfortunate start, the buyer is not prepared to completely write it off just yet. “Perhaps in a few months time, when the product has had more time to make an impact, Nestlé may see some healthy sales figures,” he said.

Baci includes a 49p two-chocolate impulse pack designed for self-treat and sampling, a six-chocolate tube retailing at £1.39 and an 18-piece gift box for £3.99. Interestingly, Baci has a higher buyer index in the lower social class brackets, whereas the profile of special treat items is generally stronger in the ‘posher’ end of the market.

It has proved most popular in larger households with children, and is particularly popular among people aged 35 to 44.