Nielsen monitor 2013: significant volume and revenue growth

The Nielsen monitor attests that confectionery providers in German retail (based on food retail stores + drugstores + impulse channel + forecourt + department stores) obtained volume growth of 2.7% in 2013. With only a moderate price increase of 0.6% on average, this resulted in revenue growth of 3.3%. Both year-round products as well as seasonal items contributed to this positive development. The largest revenue growth came from product classes baked goods (+ 5.0%) and salty snacks (+ 7.4%). Sugar confectionery (+ 3.3%) and chocolate products (+ 1.3%) also increased.

Within the strongest revenue product group, chocolate products, only a slight increase in the price level was observed (+ 0.5%). The biggest revenue increases came from chocolate bars, Easter items, and chocolate bars under 100 g. Losses were evident in 100 g chocolate bars, chocolate bars over 100 g, and cake bars, amongst others. Revenue growth in sugar confectionery was led by fruit and wine chews, cough drops, liquorice, fruit bonbons, soft and caramel bonbons, bonbon chews, and chocolate-covered marshmallow. Below last year's levels were chewing gum, jelly products, and peppermint bonbons, in particular. The volume growth for sugar confectionery equals 1.0%.

Within the salty snacks product class, almost all segments demonstrated growth. The highest revenue rate increases by percentage came from potato crisps, premium nuts, peanut kernels, trail mix, crackers and salty pretzels. Revenue growth amongst baked goods can be traced back to the development of the most important segments (including sandwich cookies, other baked goods with/without chocolate, and waffles with/without chocolate). Confectionery revenue gains originated primarily from the distribution channels: discount stores Aldi/Lidl/Norma (+ 5.6%), small consumer markets (+ 5.4%) and large consumer markets (+ 3.1%). Below values from year prior were small supermarkets (- 5.3%), forecourt + impulse channel (- 1.6%), drug stores (- 0.9%), and department stores (- 6.2%).

Promotions revenue for confectionery increased in 2013 by 0.5% to 23.2% according to Nielsen figures. With an increase of 1.4%, sugar confectionery had the strongest influence, followed by chocolate products (+ 0.8%) and baked goods (+ 0.5%).

www.nielsen.com