Chocolate Confectionery Essay

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Chocolate Confectionery in Germany COMPETITIVE LANDSCAPE • Ferrero continued to be by far the biggest player in chocolate confectionery, accounting for a fifth of overall retail sales in 2010. Ferrero has a wide range of well-established brands, and one of the highest advertising spends within the category. Its massive advertising support resulted in a high level of brand awareness amongst consumers, and the continued maintenance of its brands led to a loyal customer base. The company further ensured its success with extensive market research and testing before the launch of a new brand. Mars achieved second position and Kraft Foods third position in the ranking, with value shares of 12% each. PROSPECTS • In line with demographic developments, volume sales of chocolate confectionery are expected to decline by 2% over the forecast period to 2016. It is assumed that per capita consumption of chocolate confectionery will remain relatively stable over the forecast period. However, due to an increase in unit prices, constant value sales are likely to maintain their current level. Chocolate confectionery will continue to compete with other categories, such as biscuits and snack bars. A further threat, or at least challenge, will be the ongoing health and wellness trend. Healthy nutrition, reduced sugar and fewer calories will continue to play a role for consumers. The growth in obesity is also likely to remain a major challenge for producers of chocolate confectionery. Against a background of increasing health costs, the government is calling upon companies in the food industry to tackle the issue and take responsibility. Western chocolate makers hungry for growth markets are banking on that to change. In the past five years the value of chocolate confectionery sales in China has nearly doubled, to $813.1 million, while sales in India have increased 64%, to

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