Shop Talk
Retailers, consumers and prices
Chocolate purchases on the rise
While Cadbury’s fate remains foggy, one piece of chocolate news is clear: people continue to satisfy their cravings.
According to Mintel, chocolate sales have risen around the world despite the recession.
China saw chocolate confectionery sales jump 18 percent this year, while in the Ukraine sales rose 12 percent. Each of those countries has seen steady increases since 2005 and Mintel expects growth to continue through 2013.
In Cadbury‘s home of Britain, sales of chocolate increased 5.9 percent in 2009. In America, the home of potential buyers Kraft and Hershey, people bought 2.6 percent more chocolate this year than last.
“Chocolate is a small, affordable indulgence for shoppers who are cutting back on spending elsewhere. Even in countries not known for chocolate consumption, sales are on the rise,” said Marcia Mogelonsky, global food and drink analyst at Mintel.
U.S. consumers spend $55 each a year to satisfy their cravings. Across the pond, those in Britain spend $106 each. The big spenders? Mintel said the Swiss buy the equivalent of $206 worth of chocolate per person annually.
What can chocoholics look forward to? More milk chocolate and smaller bars are some of the potential outcomes as companies try to mitigate the impact of soaring cocoa prices.
Check Out Line: Clink, clink! Wine consumption to rise
Check out all the wine drinking going on.
Two-thirds (67 percent) of Americans surveyed said they partake in wine on holidays and special occasions while at home, while another 58 percent drink wine at home with dinner on an ordinary night, according to consumer trend tracker Mintel.
The wine market has grown 20 percent from 2004 through 2009 despite the recession, but at the peak of the slowdown in 2008 it declined 3.2 percent, Mintel said. With consumers slowly feeling better about the economy, the firm expects the wine market to increase by 2.1 percent this year.
“The future of the wine market looks bright, at least for moderately priced segments,” Mintel senior food and drink analyst Sarah Theodore said in a statement. “Value wines have helped consumers rethink their perceptions about wine.”
And how does wine stack up vs beer?
Mintel said so far this year nearly half (47 percent) of survey respondents say they drink beer compared to 35 percent who drink imported and domestic wines. Champagne and sparkling wines are next at 17 percent, followed by port, sherry and dessert wines at 7 percent.
Certainly wine was on the minds of analysts and executives on Hormel’s earnings conference call on Tuesday.
Check Out Line: Stores launch more of their own food
Check out the rise in private label foods.
These days, retailers are keen on turning consumers looking for value into shoppers willing to buy. One tactic is bringing out more products under their own labels.
Mintel has tracked nearly 1,800 new U.S. private label foods popping up in stores so far this year. Those items account for 27 percent of all the food products that have been launched this year. Private label foods comprised only 13 percent of new food product launches back in 2005.
Today’s private label products are not like the nondescript items in white boxes we remember from years ago. Shelves at Wal-Mart, Kroger, Safeway, Supervalu and other chains are packed with more upscale foods and meals packed in convenient on-the-go sizes. “Private label manufacturers realize ‘value’ means more than ‘low price’ to consumers, so they’re wisely creating new products that deliver on some of today’s most exciting food trends,” said Krista Faron, senior analyst at Mintel. The U.S. market for private label food soared 9.3 percent in 2008, compared with 4.5 percent growth in branded food sales. Mintel expects private label to see an 8.1 percent rise this year. Also in the basket:
Fortune Brands profit beats estimates
Many private labels are good quality products at a low price, they are a good alternative if you need to economise.
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Resident Shop Talk Expert
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To my knowledge, the Swiss are the largest consumers of chocolate by gross value only.
Due to the massive amount of swiss chocolate exported out of the nation, the price of Swiss chocolate is terribly high in Swiss shops. So they have to pay through the nose for their own local products.
Of course, they could always buy cheap imported chocolate.
But that would be like a Frenchman importing wine, or an Italian eating at a Chuck E Cheese.