Worth £418.5m, boxed chocolates is a crucial area for convenience retailers as the premium price means higher profits, especially leading up to seasonal events.
But according to Ferrero, boxed chocolates is losing value and shoppers are reporting that the category can be hard to shop. If retailers can get this area right, they will be able to stand out from the competition and grow their sales.
Levi Boorer, customer development director for Ferrero, reveals the five things that will grow the category in the next five years.
- Premium experience. “Shoppers are looking for premium, but have told us there is nothing quite premium enough. In wine, premium products are pulled out and shoppers can experience the products in store. This is something worth thinking about for boxed chocolates,” he says.
- Strong new products. “It needs to be clear to shoppers if new products are for sharing or to be bought as a gift.”
- Boxed chocolate sales all-year-round. “Shoppers switch off outside the main events. They don’t think of chocolate for birthdays or anniversaries. Shoppers can easily find flowers and cards, but not necessarily boxed chocolate so look at that visibility outside of events, get it with flowers and cards so it becomes part of that purchase.”
- Established events. “Christmas needs to be maximised. In store there’re lots of boxed chocolates but it’s complicated and people are confused so look at simplicity. Valentine’s Day and Mother’s Day are emotional events and are critical to sales as well.”
- Emerging events. “More than 50% of dads get a box of chocolates for Father’s Day, which is an event that often gets missed. Diwali sees strong sales of Ferrero Rocher because of the gold colour. Easter is another opportunity for boxed chocolates too as an alternative gift.”