PVM announces vision to spearhead growth in travel retail’s sugar confectionery market
Perfetti Van Melle (PVM), the number one brand in the travel retail sugar confectionery category, has announced an ambitious plan to boost the category’s performance by capitalizing on untapped potential.
As a whole, PVM is growing faster than the global confectionery category, with sales up 5.9% last year compared to 1.4% for the total confectionery category.
Category growth is even more impressive in the gum category, where PVM grew 7.5% compared to 0.8% for the total gum category. Today, PVM’s products are available in more than 150 countries worldwide and the company posted net sales of €2,429 million (US$2,682 million).
PVM also enjoyed a successful 2018 with a 14.5% share of travel retail’s sugar confectionery market, according to Generation Research, and boosted its position by focusing on its best-sellers – including international brands like Mentos and Chupa Chups – growing 6% year-on-year.
The PVM global travel retail team have identified potential for huge growth in the sector.
Travel Retail Brand Manager Femke van Veen said: “The confectionery market is a cornerstone of travel retail and one of the key purchase drivers within our industry today. But it is also a sector with great potential to grow.
“The current focus on chocolate means that the scope for developing the sugar and gum sectors is huge and as PVM is the market leader in this area, we are excited to share our vision for the future with the wider industry.
“Confectionery is the best category for increasing the average spend by shoppers and has great impulse potential too, so making the most of this potential will be good news for all of travel retail.”
The sugar sector makes up just 12% of the confectionery market in travel retail, compared to 45% in the global market, according to Generation Research. The PVM team believes a focus on value creation and innovation within the sector can increase this share and boost the whole category at the same time.
Central to PVM’s vision for the future of the category is a renewed focus on the refreshment and small treat items, which have best potential to drive growth.
This potential is based on three core principles: Must haves, building the point of sale (POS) offer, and improved visibility.
PVM’s latest addition to its offer include the Chupa Chups Box, designed for the point of sale, along with Mentos Pure Fresh watermelon gum and Mentos 2hr Clean Breath power mints.
A new ferry display is designed to attract children and adults alike, and with customizable wall bays it is now possible to create excellent Mentos and Chupa Chups visibility for locations of any size.
PVM also created hanging racks to showcase their best-selling Mega Chups and Backpacks when space on-shelf is limited.