Nestlé International Travel Retail has said that its mission to build food into the number one category in travel retail gained fresh momentum at TFWA World Exhibition in Cannes this month. The brand owner said its strategy had met with an “extremely positive” response from retail customers.
At 77% of food purchases within travel retail, confectionery will continue to be the driving force for the category, noted Nestlé. However, the company said it is intent on “writing new chapters” in the coffee and wellbeing categories.
As reported, Nestlé detailed its strategy for unlocking the potential of food to retail partners at the Cannes show, and recently promoting its ambitious vision to take food centre stage in travel retail with an impactful makeover of The Moodie Davitt Report home page.
The company highlighted key research-based learnings, commissioned through m1nd-set, regarding the potential to grow food beyond the core confectionery segment.
Nestlé ITR General Manager Stewart Dryburgh said: “We are tremendously excited by our customers’ reactions to Nestlé’s new Food strategy. Our partners have been quick to grasp the scale of the wider food category’s untapped potential, and how it could be a significant growth driver for the channel.”
Nestlé’s key KitKat product line-up has been extended to include a plant-based KitKat Vegan line. Other new products in the pipeline include Pistachio and Lotus Biscuit flavours for KitKat Senses Mini Moments, a two-flavour KitKat Mix Sharing Bag and updated flavours (Peanut Butter, Milk and Caramel) for KitKat Chunky Mix Gift Pack.
The new releases will be supported by a ‘Break In a World of Flavour’ campaign.
Nestlé’s strategy to build Food into the most purchased category centres on its VERSE model: Value, Engagement, Regeneration, Sense of Place and Execution. A major milestone of the company’s Regeneration driver was the switch last year to 100% recyclable paper packaging for Smarties.
A new Smarties Cool Creatures collection and campaign, incorporating a four-tube hexatub, stickers, colouring pencils and a selection of digital activities will be available from March 2023.
Other key launched featured at Cannes included a travel retail exclusive and limited-edition Gin, Tonic & Mint After Eight and a milk chocolate/hazelnut addition to the Nestlé Swiss tablet range. Nestlé also highlighted another step in its sustainability journey: the Quality Street brand’s transition to recyclable, FSC-certified paper packaging.
Coffee and wellbeing are the two sub-categories that have been earmarked by Nestlé for future global travel retail development.
The company cited research which indicates that 84% of travellers are likely to buy coffee in travel retail, noting a “huge growth opportunity for Nescafé”, the world’s leading coffee brand.
The Nescafé Azera range – a barista-style instant coffee collection designed to appeal to younger consumers – is set to roll out to travel retail in March. Available in three flavour profiles (Original, Decaffeinated and Intense), the range joins Nescafé Gold Roastery Collection, which has been gradually introduced this year.
According to Nestlé, all launches will be supported by activations designed to attract and engage travellers, and to “bring coffee to life in-store”. Promotions will be complemented by high-profile traditional and digital media initiatives.
Noting that McKinsey values the global wellness market at over US$1.5 trillion, Nestlé has identified wellbeing (Vitamins, Minerals, Herbals and Supplements) as another promising category to leverage in travel retail.
“Nestlé Health Science’s existing portfolio of brands offers an exciting window of opportunity for the channel. Watch this space. The opportunity in this segment is also clearly backed up by shopper research.”
“This year we have a number of real positives for travel retail,” Dryburgh added. “We continue to work hard to offer all traveller segments – and our retail partners – a captivating proposition, underpinned by inventive activations.
“Going forward, we will be equally focused on building the core of confectionery, whilst also writing new chapters within coffee and wellbeing. We will progress with our mission to build on strong foundations and to create one ‘super’ food category that becomes the number one most purchased category in travel retail.”
