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“This is a moment in time to market confectionery to the hilt to reap the benefits of category growth. We urge retailers to not shy away from price increases, as we know for a fact that it does not prevent people from purchasing our products“ |
Stuart Bull Consultant Mars International Travel Retail |
INTERNATIONAL. Mars International Travel Retail (MITR) has announced continued growth in retail volumes and sales, despite recent price increases. And it insists the confectionery category’s star remains undimmed in the travel retail channel, despite a surge in the cost of raw materials.
The global rise in prices (driven by rising raw materials costs) has not affected consumer buying, according to MITR Consultant Stuart Bull. “As a responsible category leader we are obviously watching retail sales very closely following the increase in prices across the board,” he said.
“Our message to retailers is currently a positive one in that sales are continuing to experience very strong growth and are currently unaffected by this global phenomenon. Consumers are simply not put off in any shape or form; indeed they are, conversely, more likely to buy confectionery.”
The confectionery category has traditionally done well in downtimes, proving to be “an exceptionally robust and enduring sector for consumers”, he added. The low cost, value for money nature of the category arguably supports sales and is far less affected by recession compared to others, he claimed.
Bull commented: “Consumers will always buy chocolate in preference to a new, expensive watch or perfume in times like these. It has a high perceived value and travellers still want to buy gifts for their families. However, they will always buy the brands they know and trust.”
This follows the intense pressure faced by chocolate manufacturers due to sharp global price increases in commodities such as wheat, milk and cocoa. “As a manufacturer we are doing all we can to improve efficiencies and minimise price increases,” said Bull.
He concluded: “This is a moment in time to market confectionery to the hilt to reap the benefits of category growth. The 2008/9 forecasts are looking impressive, showing a continuing upswing in passenger numbers globally and therefore much more business, to the benefit of all. We urge retailers to not shy away from price increases, as we know for a fact that it does not prevent people from purchasing our products.”
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