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CONFECTIONERY FROM PAGE 50 have been filling shelf gaps with products to promote touch points with consumers, with confectionery amid cleaning products being a familiar sight. Despite all these measures, Ms Olliver- Burnside emphasises that price is a big driver of sales in and out of a pandemic, especially in impulse categories where the objective is to get people to pick confectionery off a shelf on impulse. “Price is a keen motivator, no doubt,” she said. “However, there’s a relaxing here when it comes to more flavourful formats and nostalgia around certain products. “The nostalgia sees people reaching for old favourites or revamped versions of old favourites, especially when feeling vulnerable, or in times of crisis such as now.” Coronavirus aside, she says emerging trends evident in wider snacking and confectionery include health, sustainability and premiumisation. “Premiumisation is all about people looking to the next level when it comes to treating themselves,” Ms Olliver- Burnside said. “However, there’s been a shift in confectionery in that while it’s seen as a way for people to treat themselves, it’s also seen as a luxury. “This concern with pricing in the premium range offering has led people to step down into a more general space where core ranges reside.” According to Nielsen, as unemployment levels increase and economic and business forecasts plunge, two types of consumers are emerging. There are those relatively unaffected by health problems or income loss who have unchanged or even more discretionary income through being unable to spend on out-of-home eating, entertainment, travel, etc. In contrast, a second group of consumers have had their income and spending significantly curtailed or constrained due to unemployment, furloughing or other COVID-19-related challenges. IRI Lead Consultant Jan-Willem Verstraten comments that before the advent of coronavirus he would have confidently predicted a slight decline in sugar consumption over the next couple of years given the focus on health and a trend towards more expensive and premium products. “This decline in sugar consumption would’ve been evident in the units and kilograms people usually go for,” he said. “But when people are down and out, stuck at home and often worrying about their job and finances, they can find themselves in survival mode and less concerned than usual about health and sustainability. “So, with everything changing so dramatically, consumer priorities too have shifted. All of a sudden they’re much more concerned about their financial and mental wellbeing than their physical wellbeing. “How the picture will end up I can’t say for sure, but I’d guess coronavirus is going to give a bit of a longer-term bump to the category.” Both Mr Verstraten and Ms Olliver- Burnside underscore that promotion of the ‘stay at home and treat yourself’ message during this time of restriction is a marketing tool that could be powerful. “The confectionery category really has the opportunity to play in the area of escapism associated with treats because people are looking for comfort, reassurance and normality at this time,” Ms Olliver-Burnside said. “And what we’ve found is that chocolate bites and chocolate share bags work really well in this category as they lend themselves well to portion control, especially in scenarios where parents are working remotely and have their children at home with them. “This focus is coming though now, and we foresee it continuing strongly into the future.” What about organic and Australian made? Ms Olliver-Burnside says organic confectionery tends to sit in the health food aisle of supermarkets, which is “one of the fastest growing aisles in supermarkets”. “These organic and better-for-you brands aren’t challenging confectionery yet because they originate from smaller suppliers, have a one- to two-year shelf life, and get mixed up in all the churn because there’s not a lot of stability in the category,” she said. “This means that they’re not big players or threats yet, but it’s a space to watch.” Mr Verstraten says he suspects the message of ‘Australian made’ on packaging hasn’t achieved much in the past in terms of trading up a product. He believes, however that at the close of the pandemic, whenever that may be, the ‘Australian made’ message will be much more relevant for products because of the perception of health around it. “The ingredients in the product could be cheaper to make and have the same effect on the consumer that the idea of organic has,” he said. According to Nielsen, local origin has become an important accelerator in brand/product decision-making during the COVID-19 era and will remain a major choice driver into the future. Much of this has been due to interrupted global supply chains, as well as the need for local transparency and trust of ingredients and sourcing. Nielsen says consumers will adjust how they allocate their available spend depending on their circumstances. For some, initial cutback measures will be precautionary, but as living restriction 52 RETAIL WORLD AUG, 2020