The Hershey Company has reported success in its joint merchandising project with International Shoppes, which aimed to increase impulse purchasing and ease of shopping for confectionery at Philadelphia International Airport.
Leveraging category insights, the project strove to drive impulse purchases specifically at the queuing/till point area. According to the 2014 Global Shopper Study conducted by leading commercial development agency Counter Intelligence Retail (CIR), only 8% of confectionery shoppers purchase close to the till point.
Hershey’s updated queuing/till point merchandising solution includes a carefully curated product range at the cash register featuring the best-performing impulse snacking items, and brand blocking for ease of shopping and capturing shoppers during their final dwell time in the store. Since implementation, till point sales at International Shoppes have grown by double digits, outpacing passenger traffic and overall confectionery category growth in the Americas.
“Hershey is excited to partner with International Shoppes to maximise impulse purchases which is one of Hershey’s three category growth drivers to capture unmet demand within the confectionery category,” said The Hershey Company Manager Category Strategy Amy Wilson. “Hershey has a strong commitment to understanding the channel and sharing this knowledge with our retail partners to drive confectionery category growth.”
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International Shoppes has experienced double-digit till point sales growth following the implementation of Hershey’s queuing/till point merchandising solution |
The 2014 Global Shopper Study, part of Hershey’s global shopper research findings and its latest category vision and strategy, was presented by the company during the recent TFWA World Exhibition in Cannes. Bringing together feedback from over 50 different nationalities, the study covers a range of key subjects such as motivations and reason for purchase as well as the latest footfall and conversion figures and insights into barriers to buying.
“The objective of Hershey’s World Travel Retail Team is to be the leading global confectionery knowledge source our partners trust to turn insights into category activation,” added The Hershey Company Americas Business Manager Nancy Giambanco. “We greatly appreciate and value our partners for their support and trust in us to advise on how to grow the full confectionery category within duty free.”
International Shoppes Vice President Matthew Greenbaum said: “International Shoppes is very excited with the results of Hershey’s reset of the queuing area at our largest store in the Philadelphia International Airport. We are enjoying tremendous growth with Hershey’s brands as well as the full category in the newly merchandised area. Their implementation of headers for each section with calls to action such as “˜Last Chance to Buy’ look great and generate a sense of urgency for the customer to purchase. I look forward to replicating this partnership in our other outlets.”
TFWA World Exhibition highlights
Besides introducing its category vision and strategy, Hershey also launched new products for gifting and snacking, including two travel retail exclusives, at the TFWA Cannes show in October.
Hershey’s Kisses Caramel, a caramel-filled variant of Hershey’s Kisses, comes in a new travel retail exclusive 375g pouch, with customer shipments to begin in January.
New from Brookside are 400g stand-up gift boxes topped with a bow, available in two flavours: Pomegranate or Acai with Blueberry. They are exclusive to global travel retail stores worldwide.
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Brookside and Lancaster, the latest additions to the Hershey brand portfolio |
Speaking to The Moodie Report in Cannes, The Hershey Company Marketing Team Lead World Travel Retail and South America Exports Michael Riemondy said the acquisition and success of Brookside in the USA have made it a global brand alongside Hershey’s and Reese’s.
Brookside Foods Ltd, a privately held confectionery company based in Abbotsford, British Columbia, was acquired by Hershey in 2011. Its portfolio includes dark chocolate products with exotic fruit juice centres, such as goji, acai, blueberry and pomegranate, as well as traditional chocolate-covered nuts and dried fruit. The acquisition presented an opportunity for Hershey to expand its presence in the “good for you” category, said Riemondy.
The Hershey stand also featured the new Lancaster Caramel Soft Crèmes, in Caramel or Vanilla and Caramel flavours. The 226g bags are currently available for shipment.
Launched in the US domestic market in January 2014, Lancaster Soft Crèmes are said to offer “a long-lasting and unique taste experience that is distinct from the typical caramels that dominate the category”. It taps into the consumer need for comfort food, according to Riemondy.
The line is inspired by similar candies that company founder, Milton Hershey, made more than 120 years ago in his original candy company located in Lancaster, Pennsylvania. The success of The Lancaster Caramel Company provided the foundation for the launch of The Hershey Company, which first produced chocolate as a coating for the caramels before the iconic Hershey’s Milk Chocolate bar was created.
The Lancaster brand was launched in China earlier this year, underlining Hershey’s “deep commitment” to the country, as well as the importance of the market in the company’s global growth plans.
China, along with Singapore, Malaysia and Thailand, are some of Hershey’s key markets in Asia, according to Riemondy. The US remains Hershey’s biggest market, and Europe presents a lot of potential and opportunity, with Reese’s as a key focus brand.
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The Hershey Company’s Business Manager, Europe World Travel Retail Marina Steel (left) and Marketing Team Lead World Travel Retail and South America Exports Michael Riemondy pictured with The Hershey Company’s key brands at the TFWA World Exhibition in Cannes |
