The company will launch significant brand and category initiatives within its VERSE model, including eight new travel retail exclusive products, as it strives to accelerate industry growth by tapping into unmet consumer needs within the vast opportunity offered by the wider Food category.
These include a completely new travel exclusive brand – NESTLÉ® Sustainably Sourced Cocoa – that combines Nestlé’s Swiss chocolate expertise with sustainability, and is a direct result of Nestlé’s work with the Rainforest Alliance to support cocoa farmers and their communities.
“The fantastic news is that the strategy is already working and has been embraced by many of our key retail partners across the industry,” says Nestlé ITR general manager Stewart Dryburgh.
The latest research from m1nd-set for H1 2023 shows that the purchase penetration of food (including confectionery) has increased from 30% to 35% of DF buyers– the fastest growth of any category, said Dryburgh.
“Critically we are seeing this growth from both confectionery and non-confectionery with additional sales being incremental; in other words, with zero cannibalization,” he says.
While confectionery continues to drive the category, the non-confectionery sector – including vitamins/minerals and health supplements –reports the fastest growth across all travel retail subsectors, with a higher conversion rate than any other for the fast-growing Gen Z traveler.
Nestlé ITR will continue to leverage its VERSE (Value, Engage-ment, Regeneration, Sense of place, Execution) model to drive sales – and will announce key initiatives to retail partners globally in Cannes.
Some of the highlights include:
NESTLÉ Sustainably Sourced Cocoa. This new premium travel retail-exclusive product features creamy smooth chocolate in a variety of flavors, all crafted with care and supporting the education of 156,000 children through Nestlé’s collaboration with Rain Forest Alliance. NESTLÉ Sustainably Sourced Cocoa launch is supported by a new gondola, featuring the products along with key NITR brands and highlighting the company’s long-standing and ongoing sustainability efforts.
“NESTLÉ Sustainably Sourced Cocoa will drive incremental sales by attracting the fastest growing consumer segments – notably Gen Z – into confectionery. My team looks forward to sharing this initiative and all our great work on the world’s #1 chocolate bar, KitKat, sustainability award winner Smarties and key gifting brands After Eight and Quality Street at TFWA World Exhibition,” says Dryburgh.
Nestlé is further evolving its commitment towards 100% paper or recyclablepackaging by 2024 with new offers for KitKat and Quality Street, which join Smarties.
Nestlé ITR is launching a travel retail-specific multi-brand Sustainability Platform to meet both consumer and retailer needs. TR research (m1nd-set) showed that consumers feel confectionery doesn’t offer enough sustainable products and these are difficult to locate. In addition, they are increasingly concerned about ‘greenwashing’. In response, Nestle ITR has created a platform called Together We Grow which will engage at all points of the consumer journey and enable the brands and the retailer to demonstrate their sustainable credentials.
In-store merchandising is ultra flexible to showcase multiple brands tailored to the passenger mix with clear endorsements and proof points on the positive impacts of projects such as the Cocoa Plan. Furniture and signage are made from recycled wood and paper.
Nestlé ITR is launching a future-focused Food Reimagined store design and layout created in partnership with Portland Design. More information will be announced in Cannes.