FDBusiness.com

Haribo devotes division to travel retail

 Breaking News
  • Nomad Foods to Acquire Goodfella’s Pizza UK-based Nomad Foods, Europe’s largest frozen food producer, has agreed to acquire the Goodfella’s Pizza business of Green Isle Foods from Boparan Holdings (incorporating 2 Sisters Food Group) for approximately €225 million on a debt free, cash free basis. Green Isle Foods is Ireland’s largest frozen food producer and is headquartered in Naas, County Kildare. The [...]...
  • CMA Accepts Refresco’s Remedy Proposal The UK Competition and Markets Authority (CMA) has in principle accepted the remedy proposed by Refresco regarding the acquisition of Cott’s bottling activities. Completion of the acquisition is now anticipated on 30 January 2018. On 3 January 2018, the CMA decided that the acquisition of Cott’s bottling activities by Refresco raises potential competition concerns in the [...]...
  • Dairy Crest Appoints Tom Atherton as Deputy Chief Executive Dairy Crest has appointed Tom Atherton as Deputy Chief Executive with immediate effect. He retains his responsibilities as Group Finance Director. Tom Atherton. Since his appointment to the Board in 2013, Tom Atherton has taken on additional responsibilities including the chairmanship of Frylight, the strategic leadership of Dairy Crest’s Butters, Spreads and Oils business, and more recently [...]...
  • European Strategy on Plastic Waste Adopted The first-ever Europe-wide strategy on plastics, has been adopted. It is a part of the transition towards a more circular economy. It is designed to protect the environment from plastic pollution whilst fostering growth and innovation, turning a challenge into a positive agenda for the Future of Europe. There is a strong business case for transforming the way [...]...
  • Nestlé to Sell US Confectionery Business to Ferrero Nestlé has agreed to sell its US confectionery business to Ferrero, the third-largest company in the global chocolate confectionery market, for SFr2.8 billion ($2.8 billion) in cash. Nestlé’s 2016 US confectionery sales reached about SFr900 million. The transaction is expected to close around the end of the first quarter of 2018 following the completion of [...]...

Haribo devotes division to travel retail

April 23
13:36 2013

Haribo has spotted an untapped opportunity for sugar confectionery in travel retail and has set up a new division dedicated to the channel to fill the void.

The company has been in the channel for some time, but sales were previously managed by around 35 subsidiaries in its operating countries.

Manuel Coronilla, head of the new division, told ConfectioneryNews.com: “We are centralizing this part of the business,”

“Last year we saw the potential. We saw that we can we can develop in this sales channel and saw a big increase without making big efforts.”

Few players

Coronilla, who has worked at Haribo for 11 years, said that between 80-90% of confectionery in travel retail was chocolate, such as Mondelez’s Toblerone and Yıldız Holding’s Godiva chocolate.

He said that sugar confectionery only made up a maximum of 20% of the category, with Perfetti Van Melle’s Chupa Chups the only other major recognizable brand.

“There we see the potential. In sugar confectionery you don’t have that many.”

Travel retail: A whole new world
Coronilla said that in travel retail you need to understand “the traveller”.

“It’s a completely different world. They buy for different reasons”.

Some will buy a treat on impulse to eat while travelling; others will buy confectionery to share with families, while some buy products as gifts.

Unlike traditional retail, the duty free channel is much more about the brand, the customer shopping experience and creating a sense of luxury akin to the glamorous spirits and cosmetics found at airports, said Coronilla.

Take taste preferences on holiday

He added that confectioners must also cater to local preferences. For example, many British people take vacation in the South of  Spain.

“You should offer them something they know,” said the division head.

Although it is not big in Haribo’s home market, Germany, Starmix is the Haribo’s bestselling UK product and would be a safe bet, he said.

“Asian people spend more than the average European consumer,” he continued, making it possible to offer products at higher prices in Asian airports.

New products and growing markets

Haribo’s travel retail division is currently very fragmented. The firm exports to 100 countries, but operates in around 40-50 countries in travel retail.

The candy maker is currently doing business in the channel with German firm Heinemann, Swiss Group Dufry and Asia-Pacific firm DFS Galleria among others.

“Asia is a growing market and definitely the Americas,” said Coronilla.

About Author

colin

colin

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • January 16, 2018Sival Plant Production Trade Show
  • January 17, 2018Anfas Food Product
  • January 17, 2018Dutch Organic Trade Fair
  • January 19, 2018International Green Week
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements