Nestlé International Travel Retail General Manager Devrim Cöbek
has called on the travel retail industry to broaden its focus beyond the
traditionally higher-spending Chinese traveller and turn its attention to other
nationalities. And he has also warned that the consolidation among travel
retailers seen over the past few years has made the current confectionery
business “unsustainable”.
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| Nestlé International Travel Retail Manager Devrim Cöbek |
A very challenging year
“There are a lot of challenges this year; a lot of
pressure,” Cöbek told journalists at a media briefing during the TFWA World
Exhibition in October 2015, citing currency fluctuations as one such concern. “Global
travellers’ needs are changing. We’ve seen the consolidation of the industry,
so 2015 is a very challenging year. We see the industry declining this year
after years of growth. Confectionery is getting tougher and the business is not
at a sustainable level because of the consolidation of the retailers.” Cöbek
also listed regulatory complexity in terms of packaging and labelling as further
challenges faced by the confectionery sector.
He said it was “very important” to put travellers at the
heart of everything, from the time they depart until they return home from
their journey. “The industry forgets this,” he declared, listing as examples
the airport authority concession fee structure and the focus on one nationality
– the Chinese – at the expense of others. “We focus on one nationality and
forget about others.”
He told the media that Nestlé would make changes, while
working alongside the other stakeholders. In terms of product, he believes there
has been too much focus on luxury and not accessible products. “We need to
introduce a wider range of products, meeting different needs and different
price points.” Nestlé’s ambition, he concluded, could be summarised in the
tagline “Creating special moments for today’s travellers”.
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| Smarties tube for Chinese New Year 2016 |
New product
developments
Nestlé is set to introduce a raft of new products, with the focus
on different occasions, experiences and emotions. They will include different
pack formats for KitKat, emphasising break moments, and introducing peanut
butter flavour as a standalone variant (in 2016, a new KitKat travel activation
will be introduced, in line with the global brand campaign); Smarties, focused
on fun and imagination, incorporating a striking new, red Chinese New Year tube; Nestlé Swiss, a “very important” brand for the company;
and After Eight. Travel retail will see exclusive colours and formats, including
an orange, summer-themed limited-edition Smarties tube.
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| KitKat Chunky in peanut butter flavour |
First super-premium chocolate brand
Nestlé’s Cailler brand was re-launched internationally in
October 2015 as super-premium chocolates – the firm’s first global
super-premium brand in its 110-year history. The super-premium segment has been
growing faster than other regular, mainstream chocolates, according to Nestlé.
Cailler will be selectively distributed in Europe (for example, Geneva and
Zurich), the Middle East (Dubai) and Asia (including Singapore). The brand,
featuring milk and dark chocolates, will make its debut on Amazon in the US, UK
and German markets, with China to follow. In line with its elegant story-telling
approach, local artists will be creating designs on the packaging.
