New Line of 'Super-Premium' Chocolates Due From Nestlé
At a time when the high-end chocolate sector is the fastest-growing segment of the global confectionery market, with annual growth of 8 percent, a new player has decided to get in on the act. As reported by just-food.com, Nestlé, the second-largest chocolate company in the world, plans to make some up-market moves with "a swathe" of new products currently under development.
Although it has 13 percent of the world's chocolate sales under brands such as Butterfinger, Nestlé Crunch, Baby Ruth and Kit Kat, according to just-food, super-premium offerings represent only four percent of Nestlé's own total. But, a spokesperson told the website, "there is a clear market for premium and super-premium chocolates in industrialized countries."
Over the past few months, Hershey and new partner Starbucks, Ghirardelli and Mars have all decided to go for a chunk of the market. U.K.-based Cadbury plans to take its organic chocolate, Green & Black's, nationwide in the U.S. this year. More experienced at the top end are Lindt & Sprüngli and Godiva, sold by Campbell's in December 2007 to the Turkish Ülker Group.
In the face of such competition, food industry consultant, James Amoroso, told just-food.com that he finds it "difficult" to think of a "unique brand positioning" in the U.S. for a premium chocolate from Nestlé. It would have been better, he says, to have purchased Godiva to take advantage of what he says is "a century of competence in premium-quality chocolate - the company makes it for the Swiss mainly - and it has got the marketing muscle and the patience required."
Instead, Nestlé is working with Belgian master chocolatier Pierre Marcolini to develop what they describe as "a number of premium and super-premium top line chocolates with artisan qualities." The company's intention is to launch them in developed countries throughout Europe and Asia as well as the U.S. where consumers have greater spending power. No timescale or detailed description of the new products has been revealed. "We prefer to surprise our competitors," Nestlé told just-food.
Discussion questions: Given the perception of the Nestlé brand by consumers in the U.S., how would you brand their new line of upscale chocolate products? What's a smart strategy for them to tap growth in the gourmet chocolate sector?