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horizons extend, these measures will become mandatory as incomes are further compressed and strained. Insulated consumers, predominantly those in the middle to higher income bracket with minimal or no employment impact as a result of COVID-19, will have more freedom to buy what they want and need and may even trade up in certain categories to replace the out-of-home experience that has been out of reach during the restrictions. However, as horizons expand, even this group will become increasingly cautious with their spend, thinking ‘they may be next’, resulting in a focus on savings and cutting back on higher-value discretionary spend, the data analytics company points out. Constrained consumers, often those with lower income, although not exclusively, will be looking for value and seeking ways to make savings in their everyday lives given their new financial restrictions. As their uncertainty extends depending on the length of this situation, their cutbacks will begin to become more desperate and even small indulgences will be scaled back as they seek cheaper alternatives or avoid certain purchases altogether. On the upside, Nielsen says this situation offers retailers and brands the chance to rethink and reset their direction. Everyday low prices, shallower discount levels, and economy or bonus packs may be better ways to incentivise loyalty to both brands and retailers as consumers continue to limit their number of shopping trips and visits to multiple stores once stock levels begin to stabilise. The company says brands will need to truly differentiate themselves to ensure they deserve to be on shelf, with a focus on new consumer priorities through offering true incrementality for each item in a given range. Online shopping shows its appeal As a result of the coronavirus restrictions, people have become more comfortable with online shopping, Ms Olliver-Burnside says. IRI, she adds, expects to see high rates of online shopping continue when lockdowns are lifted and people become aware of its appeal as a “solution to their weekly shop”. This poses a challenge to categories such as confectionery, which is often an impulse purchase. “Online shows steady and consistent growth,” she said. “That’s the trend that manufacturers and retailers are monitoring closely.” CONFECTIONERY MONDELĒZ DOES ITS BIT FOR ENVIRONMENT Mondelēz Australia says it is well aware of the importance of sustainable products, recently trialling its first wholly sustainable and recyclable paper flow- wrap packaging on chocolates produced for overseas delivery, to test the wrapper’s operational durability in transit. The global snacks company used its factory in the Perth suburb of Claremont as its trial site, with Cadbury Energy, which the company produces for export to New Zealand, chosen for the trial. The packaging material comprises fully sealed paper flow-wrap material to act as a barrier to protect food and ensure freshness without using laminates, foils or plastics. Mondelēz says this compares with many current paper-based food wraps that have a thin plastic film to protect the product. Mondelēz’s Cadbury ANZ Director of Marketing Paul Chatfield says the company is committed to making all its packaging recyclable by 2025. “With waste being just one part of the lifecycle of a product, we need to ensure the total environmental impact of a packaging material is considered,” he said. “There’s no point adopting an alternative packaging material that minimises waste but has a larger carbon footprint.” The trial’s objective was to test the ‘durability and effectiveness’ of the packaging in transport as well as gather consumer feedback about it. To date the trial is claimed to have been successful. Initial feedback from consumers who trialed the packaging has been positive, Mr Chatfield says, with trials on the cards to test the material with different products in different conditions and situations. This is not to say that plastic will no longer be used by the company, as it will still play a role in delivering products to consumers with the freshness and shelf life they expect, but emerging material technologies heralds eco-friendly alternatives for some products, he adds. In addition, Mondelēz aims to source wholly sustainable cocoa for its chocolate snack brands, such as Cadbury, and reduce water use, food waste and carbon dioxide emissions. Wholly renewable energy the order of the day The confectionery company has also stated it intends to use wholly renewable electricty at two of its factories in Melbourne, which manufacture treats including Cadbury Cherry Ripe, Crunchie and Picnic bars, Cadbury Easter eggs and bunnies, The Natural Confectionery Company jellies, and Pascall lollies such as Pineapple Lumps. This will involve Mondelēz partnerships with Victorian organisations and businesses, such as RMIT University, CBUS Property, ISPT, Fulton Hogan, Citywide Asphalt and Deakin University, to establish a power purchasing agreement to invest in local renewables. This goal to significantly reduce its carbon footprint has been facilitated by the City of Melbourne. AUG, 2020 RETAIL WORLD 53