Nestlé claims it will double travel-retail confectionery market by 2009

Nicole Mezzasalma

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“Unique category management approach” cited as reason for the company’s success

Nestlé International Travel Retail (NITR) has claimed it will double the size of the confectionery market by the end of 2009. The company originally set the goal in 2003, setting 2008 as the deadline for the duplication of its sales, but has now set the date back a year owing to “the weak dollar compared with 2003”. According to NITR’s statement, its “unique category management approach” would be crucial to achieving the benchmark. The company believes confectionery sales will have achieved an 80% increase (to $2.35bn) by the end of 2008, with the planned 100% increase (to $2.6bn) expected by the end of 2009.

NITR general manager Catherine Saurais said: “Category management works for the confectionery category, and we have proved that it works. At Nestlé we have combined our vast knowledge of the channels and the category with our own insight and innovation. But it’s a two-way street and without the cooperation and interest of our retail partners, we would not have been able to have achieve half as much as we have. NITR’s approach is that of joint business planning. In practice, that translates into exciting ideas that we put into practice with our partners – with dynamic results.”

The company statement added that confectionery is the fourth largest category in the travel-retail sector, but the second-fastest in terms of growth. NITR expects sales figures for 2007 to exceed the $2bn barrier for the first time.