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CONFECTIONERY REVENUE MANAGEMENT FACES HEADWINDS Basket penetration is now the name of the game in a favourite category, but not at the expense of the most valuable products. By Exceedra APAC Sales Director Simon Elsby. The past 12 months have been challenging for one of Australia’s favourite categories, confectionery, with sales likely to remain subdued. IBISWorld forecasts 0.3 per cent category growth during 2020-20211 and Illuminera Australia suggests 21 per cent of households intend to consume less confectionery in the next 12 months.2 But by using revenue management principles there are ways to ride out the perfect storm of consumer and shopper trends. Consumer and shopper trends impacting confectionery Pantry stocking of indulgent treats earlier in the pandemic, combined with consumers working from home snacking on anything and everything, resulted in consumer ‘Covid kilo’ weight 3 gains. According to Illuminera Australia , this led consumers to shift to healthier snacking alternatives from around August, including baking their own. This acceleration of healthier alternatives places increasing emphasis on new products in the category, including sugar free and vegan alternatives. Extended working and cooking at home has meant consumers are looking for variety and to experiment, with some “roaming the supermarket, looking for inspiration”.4 This again is an opportunity to play up interesting new products, and possibly promote more premium items. Earlier in the pandemic, consumers shifted to mainstream well-known brands due to financial uncertainty. However, a degree of trading up was observed, so premium brands can still play a role. The trend of shopping local and hyperlocal means ranging opportunities for small-scale local players, especially those with interesting niche and healthier alternatives. Entertaining at home reduced substantially and remains subdued, but a big shift to outdoor events and get- togethers has occurred, which represents an opportunity for bag confectionery and chocolate, and box chocolate, in picnic style sharing occasions. 52 RETAIL WORLD APR, 2021