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Peter Zehnder: “We will focus even more in 2015 on showing what our masters of chocolate can do in travel retail” |
Leading premium chocolatier Lindt & Sprüngli is emphasising its long tradition in the business, and its track record for innovation, amid a major push in the travel retail channel. That’s according to Head of Global Duty Free Peter Zehnder, speaking to The Moodie Report at TFWA World Exhibition last month.
The company marks its 170th anniversary in 2015; the group has annual turnover close to CHF2.9 billion (2013 figures, up +8% year-on-year).
“Travel retail is a key channel for us, and having our own division dedicated to this market (created two years ago) is very important,” said Zehnder. “We are the number five group in the market but our brands are almost always among the top three at airports, led by Lindor [the new Lindor Fashion range is among the latest line extensions from the brand, introduced at Cannes – Ed].
“For us, the tradition of chocolate making is the benchmark. Where we have the opportunity for a master chocolatier to show their work, it provides a superb opportunity to connect with travellers with our handcrafted pralines. Sampling and trial are vital. We will focus even more in 2015 on showing what our masters of chocolate can do in travel retail. They are our developers.
“What these demonstrations also do is bring more competence to the category. Confectionery is often accused of a lack of differentiation and these kind of activations help the category stand out. We notice that consumers really respond well.”
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Lindt has a strong pipeline of new product development |
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The company has also been able to introduce something different through Qatar Duty Free at the new Hamad International, where Lindt created a “˜pick & mix’ counter, which the retailer has hailed as a big success to date. “This is an idea that we would introduce very selectively, and only for the biggest customers,” noted Zehnder. “It offers the chance for gift packaging and some unique flavours from the range.”
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Lindt’s Diva range offers some striking merchandising for travel retail |
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Although not directly travel retail-related, the company also delivered newness to the confectionery category in July this year, with the opening of its Swiss Chocolate Heaven concept on the top of the Jungfrau mountain in Switzerland. Its selling point? At 3,500m high, the opening makes this the highest chocolate shop in the world. Elements of this concept will be integrated into travel retail.
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Swiss Chocolate Heaven: Tennis star Roger Federer opens Lindt’s new concept on the top of the Jungfrau mountain in Switzerland earlier in the year |
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Zehnder also said that Lindt was now pursuing a more focused approach to the market today. “Until recently we didn’t distinguish between different occasions or different traveller types, but that has all changed,” he said. “Lindt is a premium but still accessible and affordable chocolate that lends itself to many types of gifting. It is ideal for certain occasions. The theory is that confectionery is all about impulse but our research suggests this is not the case. In fact, confectionery is and can be part of the traveller’s planned purchases when they are buying a gift.
“Also, there are cross-category opportunities that we believe can help grow the overall shopping basket. Chocolate is not really competing with P&C or liquor, the price points for confectionery are attractive and it remains an under-used category in the store.”
An example of this fresh approach is a cross-category promotion with beauty, through DFS at Hong Kong International.
The brand owner aims to engage in more of this activity, as well as driving the innovation agenda. Zehnder said: “Lindt has long been known for innovation but not so much in travel retail traditionally. Now we are moving forward, with many new exclusives, limited editions and we’re offering newness in travel retail. We’ll have two new limited editions appearing in 2015.
“We also help to bring more theatre to the business. We can connect to Fashion Weeks at airports through the new Lindor range; the Diva range and merchandising can play a big role here too. Plus our expertise in tasting and showcasing the handcrafted nature of our product helps engage passengers.
“With the master chocolatier at the centre of that activity, it gives Lindt the position it deserves but also entices people to enter the store, to shop more within the category and across categories. It’s about bringing more emotion to the point of sale.”
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Qatar Duty Free has hailed the Lindt pick & mix counter at Hamad International |
