Chewing Gum Consultant

Professional Chewing gum industry meeting point

Wrigley and Mondelez Marketing 10/01/2013

Filed under: Market & Fairs — Joan Mestres @ 7:12 PM
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Today… a note about marketing.

Two articles by Oliver Nieburg in Confectionerynews.com (see links below).

One article for each of the chewing gum giants.

The one dealing about Mondelez, informs about the intention to enhance the use of new technologies for their marketing, in particular mobile technologies by partnering with start-up companies in the field. For instance, Trident is linked to Rockimity and Stride to Waze. Interesting move!

Mondelez marketing

The second article is about Wrigley and their intention to reinvigorate the impulse channels in Germany. This is a more classical approach to marketing, which is also valid. Interesting to see it in a market (Germany) where Wrigley has a strong dominant position (over 70% market share according to Euromonitor). Other players (local brand Hitschler or the italian Perfetti) have a far much smaller share (below 5%). This market, due to its size and importance, is very carefully taken care of by Wrigley. There are line extensions being launched continuously (for the most classical brands like Orbit or Extra) and also new products being launched in a powerful way (such as “5” in 2009). Also, of course, being a well-developed mature market, the functionality vector is important, and Wrigley launched gums with green tea, aloe vera, vitamin C “Extra Professional + Vitamin C”. In terms of flavors, also according to Euromonitor, Spearmint is still number one, but new combinations appear more and more, like mojito, daiquiri or Pina colada flavour extensions for “Orbit”.

However, according to Mr Gabel (Sales director Wrigley Germany) their sales declined 3% last year, mainly driven by the decline in impulse channels, and that’s why they implement new measures now which include increasing sales force, new displays, increased TV marketing budget, etc.

Wrigley marketing

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Do PIIGS chew gum? 12/09/2012

Filed under: Market & Fairs — Joan Mestres @ 8:49 PM
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Today I had the curiosity to check the Euromonitor figures for these European countries that suffer the current crisis in its most severe form. I’d like to share some of them with you (from smallest size market to largest). The data are from 2011.

PORTUGAL: 1318 Tons. Up 1% in value from 2010 but expected to stay at 0% growth until 2016 (the maximum range of Euromonitor’s study). The main brand is Trident and the market is largely dominated by Cadbury (63%), followed at distance by Wrigley (13%) and the local producer Lusiteca (4%).

IRELAND: 2130 T. Up 2% both in value and volume from 2010. Expected growth of 1% per year until 2016. The top brand is Extra and in this case the market is clearly dominated by Wrigley (86%), with some minor shares for Cadbury (3%), Zed Candy (1%), Tesco (0,6%), Adams (0,5%) and Topps (0,1%). A special note about the products from Zed Candy, which are very original and shocking.

GREECE: 3025 T. Down 9% in volume from 2010 and a decrease of 3% is expected in the studied period. Here the main brand is Trident and the market leader Cadbury with 59%. Then we find Wrigley (20%), Perfetti (13%), Elma SA (5,4%) and Sarsantis with 0,9%. This is clearly the country where we find the worse results, and it is as well where the economic situation seems to be the worse.

SPAIN: 13038 Ton in 2011 with 2% decrease in volume and value. However the expectations are more positive with a growth of 2%. Number one brand is Trident and here there is a tight fight for the largest market share, being Cadbury (43%) and Wrigley (42%). Then we find Perfetti (4,2%) and local producers such as Fleer (2,2%) and Damel (0,1%).

ITALY: with 18322 T is the largest market and one traditionally dominated by the local multinational Perffetti (94% market share!). Not much room left for the others, with only Wrigley accounting for a 2,3%. Number one brand is, of course, a Perfetti one: Vivident. The market has grown 2% in volume since 2010 and a small 1% growth is expected from now on.

We do not find many similarities, as each country has its own players, trends and dynamics. The only common trend that I found is also found in many other developed markets, which is the increase of sugarfree and functional products, that are keeping the market alive, in opposition to bubble gum and sugared gum which decreases more and more its presence. We can also look at the trend of smaller packages (which I discussed in a previous posting) and also some differences noticed at the point of sale, regarding the consideration of gum as impulse product.

 

New Product from Australia 11/08/2012

Filed under: New product — Joan Mestres @ 12:20 PM
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The other day I came across this interesting product from Wrigley Australia. They are the classical gum tabs in a multipack, but what is interesting are the two stripes placed on the top of the piece. It seems to be a coextruded product but in this case they are not blending two types of gum with different flavours or colors (which is the most typical case when coextruding) but they are using instead these two stripes of powder. It comes under the umbrella of “EXTRA” brand and there is a different flavour range. I tasted the powder and it does not seem to me to contain xylitol (no big cooling effect), so I think that it might be some isomalt with some flavor (?), just a guess. I do not know how long this has been in the market for, so it might not be a really new product, but in any case for sure it is worth mentioning.