Introduction: As part of a fourth-generation family-owned confectionery company, Storck Travel Retail has always done things a little differently. Storck is the ninth biggest confectionery manufacturer in the world*, but its voice and values are distinctly that of a family operation.
This year, Storck Travel Retail is celebrating its 30th anniversary and for the first time is giving the industry a behind-the-scenes look at the values and ethos that drive it. We sit down with Storck Travel Retail Managing Director Andy Mutton and Storck Travel Retail Strategic Planning Controller Vanessa O’Farrell to discuss the company’s category vision, its ‘consistent and focused’ approach to gaining market share, and why Storck Travel Retail has significant hidden potential within the confectionery category.
Letting the portfolio do the talking
While Storck Travel Retail isn’t the loudest player in the confectionery category, the company boasts a powerful portfolio of globally renowned brands – including Toffifee, merci and Werther’s Original – that have performed consistently well in travel retail.
As a privately owned company, Storck Travel Retail doesn’t always seek the spotlight. The focus, according to Storck Travel Retail Managing Director Andy Mutton, is on letting its brands shine.
“Whenever we talk about our business, we focus on our brands. They are the stars and they are what we are known for,” Mutton says. “Running this feature with you is a milestone for us and doing this on our 30th anniversary is really special.”
Storck was founded in 1903 in Werther, Germany by August Storck, producing candies in Westphalia Germany. Back then, there were only three employees and one coating pan; today, that humble company has grown to over 7,000 employees strong and the brands of Storck are known in more than 100 countries – yet its strong family values still remain.
“We are very much a family company and one of our key values is ‘Sense of Belonging’ along with being ‘Part of Your World’ and we want to be part of everyone’s world,” Mutton explains.
“Trust is the foundation of our business. Trust in the quality of our products. Trust that we never launch anything that isn’t as good as we can make it. Trust that retains the confidence of our consumers.
“We have a core range, particularly in travel retail, because we’re really focused on the crown jewels of our business. We always aim to offer exceptional quality at the best value possible.”
So – how big of a contribution does Storck Travel Retail make to the overall pie? Mutton says: “Travel retail is quite small compared to our domestic businesses. Our goal is to grow alongside the group, which is growing rapidly. We have huge domestic market business that is still expanding and if we can keep pace with that in travel retail, I’d be very happy.”
Right portfolio, right location
Storck Travel Retail’s strategy is centred around offering the right portfolio in the right locations. It aims to drive visibility for its core brands through a global premium showcase in high footfall locations around the world.
Outlining this strategy, Storck Travel Retail Strategic Planning Controller Vanessa O’Farrell says: “Overall, our goal is to ensure that our core brands, merci and Toffifee, enjoy great gifting visibility in travel retail. Our priority is to showcase them in premium airport gifting environments and differentiate our offer from the domestic market with our premium packaging and merchandising.
“In terms of geographical priorities, our goal is to be in high-footfall passenger locations globally and that could be airports, ferries or border shops,” she adds.
“From a marketing perspective it’s all about having the right portfolio in the right locations. This is why we’ve been very focused on taking what is working in our domestic ranges into travel retail. We can segment that into premium gifting, sharing and then self-consumption and snacking.”
O’Farrell continues: “In the current landscape, where we don’t have so many Asian travellers who predominantly buy premium gifting, we are now seeing younger audiences who are more attuned to self-treat and impulse purchases. But the heartland is still about gifting and sharing and as travellers are coming back, we’re seeing that return.”
Speaking about Storck Travel Retail’s marketing approach, she adds: “Our brands are known around the world and we support them heavily by communicating their emotional proposition through TV advertising. We’ve been advertising in many domestic markets for many years so when people are travelling, they clearly recognise our brands.
“Coupled with that emotional connection, is the fact that we create great-tasting products made with the best ingredients.
“We also want to make sure we are creating engaging experiences for shoppers and make it worthwhile. We do this through personalisation, in-store activation and merchandising which creates a Sense of Place.”
Low-hanging fruit and long-term vision
“In terms of short-term priorities, we’re very focused on driving distribution,” Mutton adds. “Our focus is on making the right assortment available for the right traveller at the right time. If we could do that, we’ll soon consistently outperform our pre-COVID numbers. Our first goal is to regain that distribution network and we’re well on the way.”
Tried and trusted
In recent years, travel retail exclusives have dominated conversations around newness in the travel retail space, but Storck Travel Retail has taken a largely different approach. “Confectionery is often the cheapest thing you can buy in the store. It’s very different from beauty and liquor, which often mark the travel retail discussions because of the constant newness in those categories. However, I don’t think that necessarily always translates to confectionery,” Mutton explains.
“People want the brands they know and trust. Sometimes they do want a Sense of Place, for example packaging that shows they bought it in Dubai or Singapore, but the heart of confectionery is always about the core product quality, and newness is a shorter-term bonus.”
When it comes down to it, good sustainable confectionery business is all about delivering indulgence, pleasure and trust, Mutton says. This is especially important amid a geopolitical landscape that is filled with uncertainty.
“At the end of the day, travellers want brands that they can rely on,” he explains. “They want to know that what they’re buying is not a risk and that they’re not wasting money. If they’re going to fill their basket with gifts to take home, the products need to deliver on this.
“This is where Storck Travel Retail can really play a part. We have trustworthy brands, available at great price points and made with quality ingredients.
“I think this is what sets us apart,” Mutton adds. “We are very confident in the quality of our products and our brands. We will do nothing that risks that. We won’t take a short-term view. We’re careful with our brands because what we want is sustainable growth.”
While the race for gaining market share and driving conversion rages on, Storck Travel Retail’s ‘Consistent and Focused’ approach is a breath of fresh air in the travel retail space and one that will certainly bode well for its recovery prospects too.
To learn more about Storck Travel Retail visit www.storck-travel-retail.com ✈
