Nielsen monitor: salty snacks fuel growth

Confectionery sales volume in Germany grew by 0.7% compared with the year prior for the first 18 weeks of 2014. According to the current Nielsen monitor, the 2.1% average price increase led to revenue growth of 2.8% (based on food retailers, drug stores, impulse channel, gas station shops, and department stores). Revenue growth was observed in the salty snacks (+ 9.0%), chocolate products (+ 1.9%) and sugar confectionery (+ 1.3%) product groups. Baked goods remained slightly under levels from the year prior (- 0.8%).

In the product group with the strongest revenue, chocolate products, only a modest price increase was observed (+ 1.4%). In significant revenue segments, the curve for 100 g bars, praline-like products, bars < 100 g, and praline mixes is trending upwards. Revenue growth in sugar confectionery was especially boosted by fruit and wine gums, chewing gum, and chewy bonbons. Figures for fruit bonbons and cough lozenges fell over year prior. The volume of sugar confectionery decreased by 2.8%. Almost all segments within the salty snacks category increased. Fine nuts, peanuts, and trail mixes showed the highest percentage gains in revenue growth. With regard to revenue decreases, market leaders point to the development of the waffles with chocolate, other baked goods without chocolate, butter cookies and cookies segments. Sandwich baked goods, other baked goods with chocolate, and waffles without chocolate performed better than in 2013.

Revenue gains from confectionery were attained in the sales channels of consumer markets, discounters, forecourt, and drug stores. Super-markets and department stores fell short of their goals from last year. The promotion ratio for confectionery increased by 0.5 percentage points to 24.5%. Chocolate products and baked goods also showed increases in this area.

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