Interview: KEX’s Nick Nogai on the dynamic confectionery market and opportunities in travel retail

Owned by the descendants of the modern coffee roasting pioneer, KEX Confectionery carries forward Julius Meinl’s craftsmanship and business legacy.

The family-led enterprise is part of the Vienna-based House of Julius Meinl, whose heritage in quality foods dates back to 1862.  The group holds a diverse range of businesses, particularly in confectionery, food retailing and luxury real estate.

One of the key confectioners in Eastern Europe, KEX Confectionery carries a diverse portfolio of global brands, including Mozart Koogles by the House of Julius Meinl and Heidi, alongside strong regional brands such as Magura, Rom, Niemetz and Kandia.  

With a focus on quality, innovation and brand activation, the company has cutting-edge production facilities in Vienna, Salzburg and its headquarters in Bucharest, and has a presence in 45 countries.

Seeking to enter new markets, the company is pursuing global expansion with a specific focus on travel retail.

KEX Confectionery is also preparing for its debut at the upcoming Tax Free World Association (TFWA) World Exhibition and Conference in Cannes (29 September-3 October), with its key ranges and product innovations.

In this exclusive interview with The Moodie Davitt Report Associate Editor Camille Bersola, House of Julius Meinl Business Development Director Nick Nogai discusses how the confectioner stays relevant in a competitive market and the importance of travel retail in their global expansion strategy.

What are your best-selling brands and how do you differentiate these from other offerings in the market?

One of its key brands, Mozart Koogles comes in modern packaging designed to reflect the artistic and innovative spirit of Mozart 

Our best-selling brands include Mozart Koogles and Heidi, each of which has carved out a distinct position in the market. Mozart Koogles, our flagship brand, is a contemporary reimagining of the classic Austrian praline. By introducing innovative designs, exciting new flavours and sustainable, plastic-free packaging, we have breathed new life into the traditional kugeln category.

This modern approach, paired with the strength and heritage of the Julius Meinl brand, has resonated with consumers, driving impressive sales in both domestic markets and selected duty-free locations.

Heidi, on the other hand, stands out as a premium chocolate brand that emphasises Heidi Girl creativity, uses natural ingredients and delivers the joy of chocolate. We differentiate Heidi by focusing on high-quality, artisanal products that cater to consumers seeking an indulgent and authentic chocolate experience.

Both brands benefit from our commitment to quality, innovation and sustainability, which not only sets them apart from competitors but also aligns them with the evolving preferences of today’s discerning consumers. This differentiation has been key to their success in a highly competitive market.

How has the company maintained the strength of its business and kept its brands’ popularity and relevance in a highly competitive and constantly evolving market?

KEX Confectionery has maintained its strength and brand relevance by focusing on three core pillars: quality, innovation and strategic brand activation. We continuously invest in product development to meet evolving consumer preferences, ensuring that our offerings align with current trends such as sustainability and premium ingredients.

Our commitment to quality is unwavering, with strict adherence to high production standards across all our facilities. Additionally, we engage in targeted marketing campaigns that resonate with our diverse consumer base, reinforcing brand loyalty and attracting new customers. This approach has allowed us to remain competitive and relevant in the dynamic confectionery market.

Last but not least, we are all about indulgence and commitment to a great taste.

The Julius Meinl brand is rooted in a family tradition and experience in the food trade that stretches back to 1862 {Images: House of Julius Meinl}

What are your key targets by geography, channel or retailer type as you set your sights on global growth, and how important is travel retail in your expansion plans?

As we pursue global growth, our key geographic targets include expanding our presence in Central and Western Europe, Middle East and selected Asian markets. We are particularly focused on increasing our market share in premium and travel retail channels, as these align with our brand positioning and offer significant growth potential.

By partnering with leading retailers and leveraging ecommerce platforms, we aim to make our products more accessible to consumers worldwide. We are also exploring opportunities in emerging markets, where the demand for high-quality confectionery is on the rise.

Travel retail is an important component of our expansion plans, although we are still in the early stages of our journey within this channel. We recognise the significant potential that travel retail offers for our brands, and we have been carefully laying the groundwork for a successful entry into this market. Currently, we are in touch with multiple duty-free operators, including global key accounts and we have developed a well-thought-out roll-out plan to ensure our brands are activated effectively.

At present, KEX Confectionery is operating in selected locations, including those managed by Lagardère and Dubai Duty Free. While we are still building our presence, we are confident that our strategic approach will lead to successful launches and strong product rotation in these high-traffic environments. Our focus is on creating meaningful partnerships and ensuring that our offerings resonate with international travellers, paving the way for future growth in the travel retail sector.

One of the KEX’s best-selling brands, Heidi offers premium flavours for discerning chocolate lovers

Tell us about your approach to the travel retail channel at home and abroad.

Our approach to the travel retail channel is centered around offering exclusive products that cater to the preferences of international travellers. We have developed travel-exclusive product lines and packaging that reflect the premium nature of our brands, ensuring they stand out in a competitive retail environment.

At home, we focus on maintaining strong partnerships with key airport and duty-free operators, while abroad, we work to expand our footprint in strategically important travel hubs. By aligning our offerings with the needs of travellers, we enhance the appeal of our brands and drive sales in this high-growth channel.

What growth prospects do you see in global travel retail, and what do you see as the biggest confectionery trends in the channel?

We see significant growth prospects in the travel retail sector, particularly in regions with high volumes of international travel such as Asia Pacific and the Middle East.

As air travel continues to recover and expand, we anticipate increased demand for premium confectionery products, especially those that offer a unique or local experience. We are focusing on markets where travel retail is a key component of the consumer experience, including major airports and tourist destinations.

Additionally, we are exploring opportunities to introduce our brands in emerging travel retail markets in Latin America and Africa, where we see untapped potential.

I’ve recently started my journey in the confectionery industry, so I’m still learning about the sector and its trends in global travel retail. However, as far as I’m concerned, the biggest trends influencing this space include a growing demand for premium and artisanal products, a heightened focus on sustainability and an increasing preference for experiential and personalised offerings.

Consumers are increasingly seeking high-quality products that provide a sense of indulgence and are willing to pay a premium for brands that offer unique flavours and craftsmanship. Sustainability is another key trend, with travellers showing a strong preference for products that are ethically sourced, use eco-friendly packaging and support environmental initiatives.

Finally, the trend towards personalisation and customisation is driving demand for products that can be tailored to individual tastes or packaged as memorable gifts.

The Mozart Koogles brand is ready to hit the Cannes spotlight

What’s your major focus for the TFWA World Exhibition in Cannes and what product innovations will you highlight and showcase?

This year marks our debut at the TFWA World Exhibition in Cannes and we are excited to welcome both our existing partners and potential new collaborators to our stand. We will be located at Red Village, Stand J9, and we are looking forward to engaging with industry leaders and showcasing our latest innovations.

We will highlight our premium Mozart Koogles and Heidi ranges, emphasising their unique flavours, sustainable packaging and appeal to the discerning traveller.

Additionally, we will be introducing our new Mozart Koogles ‘functionals’ product line, featuring Energy and Relaxing Koogles. This innovative line is designed for consumers who seek both indulgence and functional wellness. The Energy Koogles offer an invigorating boost with taurine and caffeine, perfect for those in need of an energy lift, while the Relaxing Koogles are formulated with lemon balm extract and magnesium to promote relaxation.

By merging gourmet taste with health benefits, this launch aims to redefine the confectionery experience, appealing to health-conscious individuals without compromising on luxury. We are confident that these products will resonate with the evolving preferences of today’s consumers, particularly in the travel retail sector. ✈

Food & Beverage The Magazine eZine