Welcome to the Pulse Q3 2012 edition for Confectionery. We hope you find it useful.

Please do not hesitate to contact us if you have any questions or comments at EU.Marketing@symphonyiri.com

SymphonyIRI
Confectionery

Pulse

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Confectionery SymphonyIRI Pulse Q3 2012

About the Report

This Confectionery report is one of 10 super category reports designed to show highlevel comparison and analysis for retail markets across major countries in Europe. This report contains data gathered from around Europe. This market was consolidated into one super category. The report highlights key metrics such as total sales figures, market trends, category shares, winners and losers for Europe and for individual countries. The data has been sourced from SymphonyIRI Group retail databases and Eurostat the statistical branch of administration for the European Commission. The countries included in the report are: France, Germany, Italy, Netherlands, Spain and the UK The market channels used for each country in this report are as follows:

Country UK ES DE NL IT FR

Channels used Hypermarkets, Supermarkets, Drugstores and Impulse Outlets Hypermarkets, Supermarkets, Hard Discounters, Drugstores and includes the Canary Islands Hypermarkets, Supermarkets, Hard Discounters and Drugstores Hypermarkets, Supermarkets, Hard Discounters and Drugstores Hypermarkets, Supermarkets, Small Self Service, Hard Discounters and Drugstores Hypermarkets and Supermarkets

For analytical purposes the data sourced from available retail databases has been consolidated to provide consistent results. However, for some countries it has not been possible to source data pertaining to certain categories. When this has occurred it has been documented in the Notes section found at the end of the report.

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Confectionery SymphonyIRI Pulse Q3 2012

In the Radar

In 2012 Confectionary product innovation across Europe is leading manufacturer growth in 2012.
Livio Martucci Confectionery Insight European Director, SymphonyIRI Group Contact: livio.martucci@SymphonyIRI.com

Economic figures influencing consumer behavior

Population in Millions

Unemployment (%)

Average 12 Months Inflation Rate

GDP in Millions ()

January 2011 France Germany Italy Netherlands Spain United Kingdom 65.0 81.7 60.6 16.6 46.1 62.4

January 2012 65.3 81.8 60.8 16.7 46.1 62.9

Dec. 2011 9.7 5.9 8.4 4.4 21.6 8.4

Average 2012 10.3 5.5 10.7 5.3 25.1 7.9

Dec. 2011 +2.3 +2.5 +2.9 +2.5 +3.1 +4.4

Average 2012 +2.5 +2.4 +3.5 +2.8 +2.3 +3.7

2011 (Estimate) 1,987,699 2,567,000 1,586,209 607,435 1,074,940 1,747,315

2012 (Estimate) 2,033,702 2,645,862 1,565,770 609,133 1,050,211 1,913,070

Source Eurostats, October 2012

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Confectionery SymphonyIRI Pulse Q3 2012

Global Trends
Value sales and growth and decline in the last year
Value Sales in Millions ()

+1.3%

Total EU DE UK

20,298 6,788 5805* 3,739 2,085 1,072 810

-0.9%

+0.5%

FR IT ES NL

+3.7%

*based on an exchange rate of 1.150 to the pound

Positive Trend Static Trend

+2.9% -1.5%

Negative Trend

TOTAL EUROPE +1.2%

Value sales for the last six quarters

Millions 8.000

7.000

6.000

1.354

France Germany

5.000 895 4.000 1.479 1.438 622 2.000 202 197 1.000 1.449 319 185 171 1.262 1.746 650 218 462 610 209 234 1.356 656 1.568 1.482 1.473 521 203 203 1.419 304 179 172 1.284 2.265 845 882 659

Italy Netherlands Spain UK

3.000

0
03-lug-11 02-ott-11 01-gen-12 02-apr-12 01-lug-12 01-ott-12 Period Ending

Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Confectionery SymphonyIRI Pulse Q3 2012

Europe

Category Value Sales and Share of Value in the Last Year

88.5%
20,000 18,000 16,000 14,000

17,963

Millions Euros

12,000 10,000 8,000 6,000 4,000 2,000

2,336

11.5%

Non Seasonal Confectionery

Seasonal Confectionery

Categories Evolution
Value Sales () and % Change vs. Yr Ago

Key trends
In 2012 Confectionary expenditure trend varies significantly across Europe. Chocolate tablets growth across several countries attracting NPD with price premiumness Also PL and Discount channel growth are a common trends across countries especially where Confectionery sales are weak

17,962.63

Millions

1.1

1.3

Growth across Europe is driven by product innovation lead by the main manufacturers A further category growth driver is themed sports products (Olympics, European Football) or classic (valentines, Mothers day) events.

2,335.82

Non Seasonal Confectionery Total Sales

Seasonal Confectionery % vs. YA

Europe includes: France, Germany, Italy, Netherlands, Spain and United Kingdom Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Confectionery SymphonyIRI Pulse Q3 2012

France

Category Value Sales and Share of Value in the Last Year

76.8%
3,500 3,000

2870

2,500

Millions Euros

2,000

1,500

1,000

869

500

23.2%

Non Seasonal Confectionery

Seasonal Confectionery

Categories Evolution
Value Sales () and % Change vs. Yr Ago
7

Key trends
A good trend for seasonal confectionary due to strong performance at Easter and an earlier implementation of Christmas chocolate in 2012. Mars (through NPD) and Ferrero (new formats of its blockbusters Schokobons and Ferrero Collection) are the main contributors. Kraft grows through the Milka brand. Non Seasonal Confectionary turnover improves mainly through dynamism of Chocolate confectionary and Tablets growth : Tablets represent more than 1/3 of turnover due to a good premium offering through Lindt. Chocolate confectionary (1/4 of turnover) is developing mainly through Mars and Ferrero thanks to an increase in promotional level and a larger assortment.

5.8

2,870
5

Millions

3.0

869

0 Non Seasonal Confectionery Total Sales Seasonal Confectionery % vs. YA

Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Confectionery SymphonyIRI Pulse Q3 2012

Germany

Category Value Sales and Share of Value in the Last Year

94.3%
7,000 6,000 5,000

6,399

Millions Euros

4,000 3,000 2,000 1,000

388

5.7%

Non Seasonal Confectionery

Seasonal Confectionery

Categories Evolution
Value Sales () and % Change vs. Yr Ago

Key trends
Despite Confectionery positive value trend, volume is declining as expenditure growth is driven by consumer price inflation across all confectionary segments. Prices per kilo is rising by truly higher prices (Duplo, Kinder) or by downsizing and premium NPD. As volume sold is weak there is a high level of substitution between the sub categories.

6.399,43

Millions

After long term growth, the salty snack market is now flat in volume (-0,3%). Despite Confectionary saturation small sub categories, like mixed boxed chocolate, small bites and surprise eggs, are still able to grow in volume.
388,38
0.7
Non Seasonal Confectionery

-1.7
Seasonal Confectionery

Total Sales

% vs. YA

Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Confectionery SymphonyIRI Pulse Q3 2012

Italy

Category Value Sales and Share of Value in the Last Year

88.3%
2000 1800 1600 1400

1,841

Millions Euros

1200 1000 800 600 400 200

244

11.7%

Non Seasonal Confectionery

Seasonal Confectionery

Categories Evolution
Value Sales () and % Change vs. Yr Ago

Key trends
Confectionery value sales decline is driven by a drop in volume.
88 78 68 58

1.840,66

Chocolate Tablets are the fastest growth category in value (+5,0%) and the only category to show volume growth (+1,9%). It is also the least expensive category in terms of euro/kg. Easter 2012 has under-performed versus last year as well as Christmas 2011. Confectionery purchase is a typical impulse process for Italian consumers, all impulse categories are negatively impacted by the economic crisis Chewing Gum shows the fastest value decline (-9,9%) due to a declining investment in advertising and product innovation.

Millions

48 38 28

243,97
-1.6 -1.2

18 8 -2

Non Seasonal Confectionery Seasonal Confectionery

Total Sales

% vs. YA

Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Confectionery SymphonyIRI Pulse Q3 2012

Netherlands

Category Value Sales and Share of Value in the Last Year

98.8%
900 800 700

800

Millions Euros

600 500 400 300 200

1.2%

100 0

Non Seasonal Confectionery

Seasonal Confectionery

Categories Evolution
Value Sales () and % Change vs. Yr Ago

Key trends
Confectionary is a stable market currently, in both volume and value Different growth can be seen for service supermarkets and discount channel Service supermarkets -1 Discount +3% value

800

Millions

Positive growth for Chocolate and Candy segments. Whereas Chewing Gum shows negative figures in both value and volume Within Chocolate, tablet segments (Ritter Sport, Bros, Swiss) are the main drivers of growth. Bitesize also shows value growth, driven by M&Ms.

9
-0.9
Non Seasonal Confectionery

4.4
Seasonal Confectionery

In Candy, Gums is growing, mainly through Haribo and Autodrop. Both players have seen increased NPD and added value to the shelf

Total Sales

% vs. YA

Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Confectionery SymphonyIRI Pulse Q3 2012

Spain

Category Value Sales and Share of Value in the Last Year

75.6%
900 800 700 600
Millions Euros

810

500 400 300 200 100

262

24.4%

Non Seasonal Confectionery

Seasonal Confectionery

Categories Evolution
Value Sales () and % Change vs. Yr Ago

Key trends
The Candies category has shown growth and chewing gums have experienced a setback in sales. Private Label is a very recent development in the confectionery market and, in the last two years, has grown faster than category average; PL share closer to the manufacturer's brand.

810

Millions

Candies and chewing gum promotional activity based on price and visibility in the store (extra display).

262

3.3

1.5 Seasonal Confectionery

Chocolates is decreasing because of bonbon (-6,4%) and countlines (-5,3%). Tablets are growing by +4,3%. Private label presence is not high still (26,5%) but is growing by 9,7%.

Non Seasonal Confectionery Total Sales

% vs. YA

Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Confectionery SymphonyIRI Pulse Q3 2012

United Kingdom

Category Value Sales and Share of Value in the Last Year

90.3%
6000 5000 4000 3000 2000 1000 0

5,243

Millions Euros

563

9.7%

Non Seasonal Confectionery

Seasonal Confectionery

Categories Evolution
Value Sales () and % Change vs. Yr Ago

Key trends Confectionery continues to show strong growth in the UK through non-seasonal confectionary, which remains at over 90% of total sales. Overall growth within non-.seasonal confectionary has been driven by both high levels of promotions and NPD. Bitesize sharing remains a growth sector through both NPD and Mars Sweet Sundays campaign on existing skus. During this period we have also seen Olympic activity through limited edition Cadbury skus in block and bar formats. In addition there has been high levels of off shelf activity with deep discounting for Cadburys within their Take Home sector. Block chocolate has also seen recovery through NPD from Cadbury and Nestle, but Singles long term decline continues.

5.243

Millions

563
1,6
Non Seasonal Confectionery

-1.9
Seasonal Confectionery

Overall Seasonal confectionery continues to decline, with Easter impacting total annual sales. However we have seen some growth in the Novelty sector through Cadburys Olympic themed skus. Mars are also helping to drive the boxed market in the short term

Total Sales

% vs. YA

Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12

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Confectionery SymphonyIRI Pulse Q3 2012

Final Notes
Notes on Category Definitions for Countries Due to the diverse products found in individual countries across this market it was necessary to consolidate the available data into the categories in this report. In some cases it wasnt always possible to align products across all 6 countries hence the need to highlight any anomalies in the report. Those exceptions are listed below: Confectionery The Netherlands and Italy data in this report includes toffee products whereas the other countries do not

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Confectionery SymphonyIRI Pulse Q3 2012

Resources
To gain insight into opportunities across specific categories, segments, channels or retailers, contact your SymphonyIRI client service representative regarding custom analyses leveraging the following resources: InfoScan Census is a syndicated retail tracking service that enables manufacturers and retailers to acquire industry insights used to make better business decisions. InfoScan Census utilizes the data that SymphonyIRI Group collects from grocery, drug, and mass merchandise retailers to provide the most comprehensive and accurate syndicated data offering in the Fast Moving Consumer Goods (FMCG) sector. With access to accurate, granular detail by category, geography, measure, and time period, clients have the tools needed to develop marketing and sales strategies based on product performance, distribution, and promotion responsiveness. All data about frozen foods are coming from InfoScan Census. SymphonyIRI Consulting provide strategic insights and advice leveraging a variety of data sources, predictive analytics, enabling technologies, and business analyses to help CPG manufacturers and retailers address significant sales and marketing issues effectively.

About SymphonyIRI Group SymphonyIRI group, formerly named Information Resources, Inc. (IRI), is the global leader in innovative solutions and services for driving revenue and profit growth in CPG, retail and healthcare companies. SymphonyIRI offers two families of solutions: core IRI solutions for market measurement and symphony advantage solutions for enabling new growth opportunities in marketing, sales, shopper marketing and category management. SymphonyIRI solutions uniquely combine content, analytics and technology to deliver maximum impact. SymphonyIRI helps companies create, plan and execute forward-looking, shopper-centric strategies across every level of the organization. For more information, visit www.SymphonyIRI.eu

Contact: SymphonyIRI Group, EU.Marketing@SymphonyIRI.com, Tel: +33 1 30 26 81 00

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