Sweets & Confectionery - Sweeten the deal for your customers(PDF)

Countlines and slabs are popular in forecourts
and tuck-shops.
Festive
and
occasional sales are
the principal drivers
for the South African
chocolate market
compared to those with less money to
spare. “These consumers have a greater
disposable income and are therefore less
price-sensitive. Higher income consumers
have also travelled more extensively and
have been exposed to premium chocolates
available in other markets and will therefore
pay more for high quality chocolates,” says
O’Carroll.
Cash & carries with a more affluent
customer base might want to consider
stocking artisanal chocolates, as these
customers are developing preferences for
unique out-of-the box products.
Chewing and bubble gum sells well in
convenience stores and the informal sector.
The Simba Group led the snack pack category
in 2012 with a value share of 49%, including
brands like Simba, Lay’s, O’Grady’s, Cheetos,
Fritos and Doritos.
by Lunch Bar, PS and Chomp. Nestle South
Africa ranked second in 2012 with brands
like Bar One and Kit Kat contributing to
its 27% value share. Beacon Sweets &
Chocolates came in third with a share of
11%.
Countlines and slabs are popular in
forecourts and tuck-shops. “The 100g
Cadbury Top Deck slab is still one of my
biggest sellers,” says Peter Masuku, owner of
Sasol Atteridgeville near Pretoria. “People are
also really taking to Cadbury Mini Eggs.”
Cadbury and Nestle minis take centre
stage on hawkers’ tables. A box of 24 mini
chocolate products sells for just around
R37.99 wholesale. Chocolate-filled straws
are also proving popular on the playground.
Extended product ranges
Cadbury, Nestle and Beacon are extending
their product ranges to capitalise on the
success of their most popular products. At
the same time, consumers are provided
with a wider range of flavours and sizes,
notes Frost & Sullivan. Nestle Kit Kat, for
example, is now available in a bite size value
pack, a two-finger bar, a three-finger bar, a
four-finger bar, a chunky bar or a family size
pack. Consumers can also buy white and
dark chocolate versions of the product.
“Income levels do not have the same
impact on the chocolate market as they do
in other markets as chocolate is viewed as
an affordable luxury,” says O’Carroll. “This
results in consumers across different income
levels purchasing similar products,” she says.
However, higher income consumers
do purchase more premium chocolates
Lollipops last longer
and are more value
for money – they are
aggressively marketed
through road shows
and school promotions
Sweet-toothed customers
For LSM groups 3-7, sweets remain the
most popular choice. “Beacon Smoothies,
Cadbury Chappies and Cadbury Halls
are popular on every street table – they
are competitively priced and are of good
quality,” says Ebrahim.
Volume growth dropped in the sweets
category from over 3% to just above 1% in
2012. Beacon Sweets & Chocolates leads
the category with a value share of 47%.
Candy Tops ranks second with a value share
of 8%, followed by Kraft Foods South Africa
with 7%.
“Although the market is quite saturated
at the moment, lollipops always come out
on top,” says Mohammed Moosa, marketing
manager at Marburg Sweets. Masuku
says that lollipops are also doing well in
forecourt stores, with Fizz Pops being a
popular choice.
wholesalebusiness Issue 3, 2013 9