Travel retailers laud Nestlé’s ‘Food category’ ambition

 

Nestlé’s ambition to build food into the #1 category in travel retail received an extremely positive response from customers at this month’s TFWA World Exhibition & Conference. 

Nestlé presented its detailed strategy for unlocking the potential of food to retail partners at the Cannes show. In this it highlighted key learnings from the in-depth research study, commissioned through m1nd-set, regarding the potential to grow food beyond the core confectionery segment. “We are tremendously excited by our customers’ reactions to Nestlé’s new Food strategy,” commented ITR general manager Stewart Dryburgh. “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.”

Currently accounting for 77% of food purchases within global travel retail, confectionery will continue to be the driving force within the category. Focusing on KitKat, Nestlé is adding plant-based KitKat Vegan this year. For the year to come there is an extensive new product pipeline planned, including new 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. These releases will be supported by a new 360 Break In a World of Flavour campaign. 

As previously announced, Nestlé’s strategy to build Food into the #1 most purchased category will be delivered through the 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. This brand will be further supported with a new Cool Creatures collection and campaign, incorporating a four-tube hexatub, stickers, colouring pencils and a selection of digital activities, from March 2023.

Other key launches previewed at Cannes include a travel retail exclusive Gin, Tonic & Mint After Eight limited edition, plus a milk chocolate/hazelnut addition to the Nestlé Swiss tablet range. Nestlé also used this year’s Cannes show to highlight the next big step on its sustainability journey: the Quality Street brand’s transition to recyclable, FSC-certified paper packaging.

While confectionery will remain core to the food proposition, Coffee and Wellbeing are the two sub-categories that have been earmarked by Nestlé for future global travel retail development. Research shows that 84% of travellers say they are likely to buy coffee in travel retail, a huge growth opportunity for Nescafé, the world’s leading coffee brand. Accordingly, in March 2023, the Nescafé Azera range – a barista-style instant coffee collection designed to appeal to younger consumers – will be rolled out to travel retail. Available in three flavour profiles (original, decaffeinated and intense), this range will join the Nescafé Gold Roastery Collection, which has been gradually introduced this year.

All of these launches will be supported by impactful activations designed to attract and engage travellers, and really bring coffee to life in-store. In turn, these activations will be complemented by a variety of high-profile traditional and digital media initiatives.

With the global wellness market valued by McKinsey at more than US$1.5 trillion, it’s clear why Nestlé has identified Wellbeing (Vitamins, Minerals, Herbals and Supplements) as another promising new 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 noted. “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 create one ‘super’ food category that becomes the number one most purchased category in travel retail.”

WiTR hits target for Hope Foundation at TFWA WE in Cannes

This year at TFWA World Exhibition, Women in Travel Retail (WiTR) once again gathered to network and raise funds for nominated charity, Hope Foundation. Thanks to a number of generous donations, this year’s event more than hit its target of €15,000. 

Over 150 members of the duty-free and travel retail industry met at the group’s popular networking session held on Tuesday 5 October in the foyer of the Palais des Festivals. 

On arrival, attending ladies were welcomed with a glass of delicious Chandon Garden Spritz courtesy of Moet Hennessy, the perfect way to kick off an enjoyable networking session. 

An important part of the gathering was to raise money to purchase a much-needed bus for the Hope Foundation.  This project was nominated by Butlers Chocolates who has a long-standing association with WiTR and with the charity. 

WiTR’s target was to raise €15,000 to buy a new bus for women and children at Hope’s five homes in Kolkata, as the current 15-year-old bus has been forced off the road and no longer complies with Government environmental guidelines.  The bus is desperately needed to transport women at the Hope homes to reach medical services, vocational training centres, as well as taking children to school and other activities. 

   

Thanks to generous donations from Victoria’s Secret, Gebr. Heinemann and Harding Retail, and all the women who donated at the networking session, over €17,200 was raised, meaning that Hope Foundation can now purchase the new bus. 

Baptiste Marchis, Head of Travel Retail at Victoria’s Secret commented, “We are grateful for the partnership with Women in Travel Retail, and the opportunity to positively impact women’s lives with our donation to the Hope Foundation.”

Aisling Walsh said, “On behalf of Butlers Chocolates and Hope Foundation we would like to thank our very generous corporate sponsors - Victoria’s Secret, Gebr. Heinemann and Harding Bros – and all those who donated to the raffle on the night, and to the fabulous team at WiTR who made it all happen in the first place.”

WiTR would like to highlight its short video clip about the Hope Foundation: 

https://youtu.be/QnuNRMhpboI

WiTR would like to thank the TFWA for facilitating its annual meeting, its trade media partners for publicising the event and call for donations; and to all those who joined the meeting this year and generously donated.

Re-invigorated by existing and new members of the steering committee, and with a new website, WiTR invites all women in the duty-free and travel retail industry to join using the link on the website: www.womenintr.com.  Annual membership is set at an inclusive and very affordable level:  £25/€25/USD$25.  WiTR also has a highly active LinkedIn group, where members can network and make new connections. 

In addition to the popular webinar series hosted by Vice Chair Gerry Munday, WiTR plans to capitalise on the post-Covid travel freedoms and put to good use its new CRM system with a new programme of local events in the coming year. 

Swedish Match continues travel retail growth with WHSmith partnership

Swedish Match is continuing to build its vision of a world without cigarettes in travel retail with a flourishing partnership with WHSmith. The tobacco brand, and its market-leading ZYN nicotine pouches, are currently sold in 280 WHSmith Travel stores, building on an established and successful partnership in the domestic market.

The collaboration in travel retail reflects Swedish Match’s faith in the market, as well as the company’s dedication and intention to disrupt the status quo in the tobacco sector.

The two companies have run a series of high-profile campaigns at key travel locations across the UK during the summer, including a promotional wrap and sampling activation for shoppers at London Waterloo Station, one of the capital’s busiest railway hubs.

Such moves are just the beginning, with a similar engagement event planned for Manchester Airport Terminals 1, 2 and 3, as well as at Manchester Piccadilly.

Today, Swedish Match has claimed a significant increase in market share with WHSmith, compared with the national market, which underlines the key role the travel retail sector plays in the brand’s ongoing expansion plans.

WHSmith Tobacco Buyer Matthew Walshe said: “The activations with Swedish Match at transport hubs this summer have been well received by customers. We are always looking for ways to broaden our offer for customers and we look forward to building on this collaboration in the future.”

Swedish Match UK Marketing & Activation Lead David Hall agreed: “This is an exciting time for Swedish Match. We can see the power and potential of these products within the marketplace and shoppers are reacting positively to our vision of a world without cigarettes.

“Swedish Match and ZYN do not take away from the existing travel retail tobacco market, they provide another option and an opportunity to drive increased spend for retailers. This partnership with WHSmith has been built on a true spirit of trust and collaboration, enabling us to promote our product across their Travel stores and engage with customers.”

Swedish Match joined the travel retail market late last year, following a successful performance in the domestic sector which saw it become a category leader in the US while retaining a strong position in the Nordics. Launching its leading ZYN brand of nicotine pouches, the company aims to create an exciting opportunity for travel retail partners, with smoke-free products that travellers can use anywhere on their journey. 

Swedish Match will next showcase its vision for the future of the travel retail tobacco sector when it appears for the first time as an official exhibitor at the TFWA World Exhibition in Cannes next month.

Swedish Match Travel Retail Manager Johannes Varhelyi said: “This partnership is an excellent foundation for us as we continue to build the presence of ZYN in the travel retail market. It is also proof that our travel retail strategy is working, and we look forward to discussing that and our future plans further with partners, colleagues and stakeholders in Cannes next month.”