Mondelez International has emphasised the role of confectionery in bringing growth back to travel retail.
At last week’s TFWA World Exhibition, the confectionery giant presented an industry overview, with insights into the company’s vision for the category.
Its vision is based on research which indicates that 25% of shoppers would buy cash register offers in a duty free store. Confectionery, it said, was the “most sought after category at cash tills” and helped drive incremental revenue.
Mondelez’s figures also showed that 71% of duty free shoppers buy from one category and that confectionery is the biggest impulse category, with 56% of confectionery buyers shopping on impulse in a duty free store.
The company’s presentation emphasised the role of confectionery in driving growth through leading brands, novelty products, the growing biscuit sub-category and digital engagement.
Mondelez World Travel Retail (WTR) Managing Director Andreas Fehr pointed out that the global travel retail market declined for the first time since 2009. Like other major categories, confectionery lost sales in 2015, down -4% vs 2014.
Fehr asked: “Does the confectionery sector have the X factor required in travel retail?” “Mondelez International says yes!”
Mondelez’s research stipulates that confectionery is the leader in converting visitors to buyers, ahead of “space dominant” categories such as perfume & cosmetics and liquor.
“Confectionery is a strategic category in travel retail with the highest conversion from visitor to buyer,” the company stated.
Mondelez also stressed the importance of cross-category placements of confectionery which it said “successfully address the challenge of low spend level”.
Fehr said that the company’s novelty products from brands such as Milka and Toblerone address key industry challenges including increasing passenger spend, conversion and footfall.
“With products such as Oreo and Chips Ahoy! we are well placed to drive further growth in this channel,” Fehr added.
Earlier this year, Mondelez WTR claimed ‘The Moodies’ award for the Best Single Social Media Marketing Campaign for its ‘Making Social Media Traveler-Centric’.
“Digitally influenced sales will become even more critical over time in travel retail,” Fehr said, underlining the company’s determination to convert new generation travellers – in particular Millennials – into travel retail shoppers.
At Cannes Mondelez WTR showcased new product innovations aimed at delivering on its ‘More Shoppers, More Spend, More Often’ category vision.
