Nestlé ITR will reveal key initiatives to further drive its ambition to make Food the #1 most purchased category in Travel Retail at this year’s TFWA World Exhibition (Beach Village 02).
The company will launch significant brand and category initiatives within its VERSE model, including eight new travel retail exclusive products, as it strives to accelerate industry growth by tapping into unmet consumer needs within the vast opportunity offered by the wider Food category.
These include a completely new travel exclusive brand, Nestlé Sustainably Sourced Cocoa, that combines Nestlé’s Swiss chocolate expertise with sustainability—key to the company’s "raison d’étre." Launching in Cannes this is a direct result of Nestlé’s work with the Rainforest Alliance to support cocoa farmers and their communities.
“The fantastic news is that the strategy is already working and has been embraced by many of our key retail partners across the industry,” says Nestlé ITR general manager Stewart Dryburgh.
“We are delighted to report that m1nd-Set research for H1 2023 shows that the purchase penetration of food (including confectionery) has increased from 30% to 35% of DF buyers This is the fastest growth of any category. “Critically we are seeing this growth from both confectionery and non-confectionery with additional sales being incremental; in other words, with zero cannibalization,” he says.
Whilst confectionery continues to be the beating heart of food, it is the non-confectionery sector—including vitamins/minerals and health supplements—that reports the fastest growth across all travel retail subsectors. With a higher conversion rate than any other for the fast-growing Gen Z traveller, the future for food looks bright.
To ensure that growth continues, Nestlé ITR will continue to leverage its VERSE (Value, Engagement, Regeneration, Sense of place, Execution) model to drive sales—and TFWA World Exhibition will provide the platform to announce these key initiatives to retail partners globally.
Value
- Nestlé Sustainably Sourced Cocoa. This new premium travel retail-exclusive product has strong sustainability credentials through the Nestlé Cocoa Plan. It features creamy smooth chocolate in a variety of flavors, all crafted with care and supporting the education of 156,000 children through Nestlé’s collaboration with Rain Forest Alliance.
The brand portfolio presents 170g tablets in four flavors including Dark Chocolate, Blueberries, Almonds & Hazelnuts; Milk chocolate, Cranberries, Almonds & Hazelnuts; Milk chocolate & Hazelnuts and Milk Chocolate, Raisins, Almonds & Hazelnuts. Four further flavors—Milk Chocolate, Dark Chocolate, Dark Chocolate with Almonds, and Milk Chocolate with Almonds—are available in 270g tablets.
A 50-piece Assorted Chocolate Chunks is included, with Milk Chocolate, Dark Chocolate, and Milk Chocolate with Hazelnuts.
The Nestlé Sustainably Sourced Cocoa launch is supported by a new gondola, featuring the products along with key NITR brands and highlighting the company’s long-standing and ongoing sustainability efforts.
“Nestlé Sustainably Sourced Cocoa will drive incremental sales by attracting the fastest growing consumer segments, notably Gen Z, into confectionery. My team looks forward to sharing this initiative and all our great work on the world’s #1 chocolate bar, KitKat, sustainability award winner Smarties and key gifting brands After Eight and Quality Street at TFWA World Exhibition,” comments Dryburgh.
- Innovations from Kit Kat, including new flavors for its Senses Collection, an updated travel retail exclusive assortment and an new industry-specific "Live Your Best Break" communications platform that will span all key touchpoints on the consumer journey.
- Adding value to the gifting occasion, the After Eight brand will see the addition of a Strawberry and Mint Limited Edition
- Further evolution of Nestlé’s commitment towards 100% paper or recyclable packaging by 2024 with new offers for Kit Kat and Quality Street to sit alongside the trailblazing Smarties.
Sense of Place
- Kit Kat destination gift packs marrying the appeal of the global brand with Sense of Place for the perfect gift.
Regeneration
- The launch of a travel retail-specific multi-brand Sustainability Platform to meet both consumer and retailer needs. TR research (m1nd-set) showed that consumers feel confectionery doesn’t offer enough sustainable products and these are difficult to locate. In addition, they are increasingly concerned about "greenwashing." In response, Nestle ITR has created a platform called Together We Grow which will engage at all points of the consumer journey and enable the brands and the retailer to demonstrate their sustainable credentials.
- Instore merchandising is ultra flexible to showcase multiple brands tailored to the passenger mix with clear endorsements and proof points on the positive impacts of projects such as the Cocoa Plan. Furniture and signage is made from recycled wood and paper.
Execution
Bringing this all together will be the launch of a future-focused Food Reimagined store design and layout created in partnership with Portland Design. More information will be announced in Cannes.