This year’s “Double 11”, after the new members joined the Ferrero starting lineup is worth looking forward to.
Editor’s note: This article is from WeChat public account “small food generation” (ID: foodinc ), the author of the small food generation.
Ferrero, who is willing to take the Danish blue can cookie, is making more plans for the Chinese business.
A few days ago, the Italian chocolate candy giant officially announced that its subsidiary CTH has completed the acquisition of the Kelsen Group, which took over the Nørre Snede and Ribe in Denmark. After the two production plants, the management and employees of the two plants will be retained.
This is the second time Ferrero has taken the acquisition this year. In April, it announced that it would acquire Kellogg’s cookies and fruit snacks for $1.3 billion, including a range of cookie brands including Keebler and Famous Amos.
After having more chips on hand, Ferrero also began to hurry in the Chinese market. “In the upcoming 2nd China Import Expo, we will bring new products to meet with consumers.” The company said in response to the inquiry of the snacks.
Billions of Market Cakes
The snack foods learned from Ferrero that the company has no plans to integrate Kelsen into the Ferrero Group, and the two companies will remain independent.
Ferrero said to the small food generation that he hopes to seize the important growth opportunities in the boutique cookie market by investing in Kelsen. “The current work is still in its infancy, and we believe there will be significant growth opportunities in the future,” the company said.
Although Ferrero did not disclose the current performance of Blue Can Cookies in the Chinese market and its future development goals, we can still get a general understanding of relevant market data.
The snacks are noticed,Hong Kong’s local cookie brand “Cutter Quartet” parent company once hit the IPO of the Hong Kong Stock Exchange in August last year. The company cited the analysis of the independent market research company Ipsos in the prospectus at the time, indicating that between 2013 and 2017 The sales value of cookies in Mainland China increased from RMB 26.584 billion to 35.11 billion, which is in line with the annual growth rate of approximately 7.2%.
” Cookie products have always been one of the most popular gift choices for Chinese people, especially during the Lunar New Year and other festivals to provide stable demand for the market.” The company pointed out in the above prospects.
The Cookie Quartet also predicted in the prospectus that with the support of the rapid development of Internet retail and electronic commerce in mainland China, the market demand for cookie products is expected to be between 2018 and 2022. A compound annual growth rate of about 5.7% has steadily increased. At the same time, the Ipsos report also predicts that the sales value of Chinese cookie products will increase from approximately RMB 37.288 billion in 2018 to approximately RMB 46.624 billion in 2022.
Explore more consumer scenarios
In Ferrero’s view, the Blue Can Cookies, which are the two core sales markets in Mainland China and Hong Kong, will help them achieve higher growth in the traditional gift market such as the Spring Festival.
“Kelsen’s Danish House and Danish Blue Can Cookies have become important products for holiday gifts, enjoy high brand awareness among consumers and take the lead in the category of cookies.” The company said . According to the data, the Kelsen Group’s sales in the past 12 months were approximately US$157 million (approximately RMB 1.122 billion).
In fact, the blue cans from the Hong Kong region to the mainland market opened up brand awareness in the South China market earlier, and also have a group of loyal consumers, but they still need in the northern market. Increase market expansion efforts.
Information shows that the brand has established official Weibo and official WeChat since 2012, and opened the Tmall flagship store at the end of 2013. On the one hand, it hopes to use social marketing to increase its popularity, and also hopes to use the e-commerce platform to pull big data. Sales.
The small food generation recently looked at the official flagship store of Blue Can Cookies, and the brand is also working hard to open up more consumer scenes. For example, in addition to the introduction of gift box packaging to meet wedding gifts and traditional festivals and other gifts, Blue Can Cookies also launched small package products for office casual snacks, breakfast, afternoon coffee breaks and even working overtime and night.
At the end of last year, the brand also introduced the new taste of chocolate caramel sea salt. At the same time, Blue Can Cookies also actively expands the layout of e-commerce channels such as Tmall and JD.com, including the introduction of holiday-customized gift boxes.
However, the products of another Danish house owned by Kelsen are currently sold in some of the purchasing channels of Jingdong and Tmall, and there is no official flagship store yet.
More widespread layout
In early April of this year, Mauro De Felip, general manager of Ferrero China, told Xiaoshang that Ferrero China’s new goal is to double its size in the next five years. At the time, he also made it clear that the company hopes to expand its product category beyond chocolate. Three months later, Ferrero officially announced the acquisition of Keppel Group, a subsidiary of Campbell Soup, for $300 million (approximately RMB 2.062 billion).
Mauro De Felip, General Manager of Ferrero China
Although Ma Rucheng said that Ferrero is growing at a rate that is about three times higher than the industry average in China, as of the end of last year, the company’s market share growth in China, both in terms of sales volume and sales, “leads the market”. “. However, it is worth noting that the growth of confectionery products in the Chinese market in recent years is also facing challenges.
Marketing company Mintel pointed out in the report “Candy-China-December 2016” that the candy market fell 5.1% during 2015-2016, mainly due to slower economic growth and consumers coming The more you worry about excessive sugar intake.
And through the acquisition of Ferrari, which continues to add cookies and other biscuit businesses, it is clear that it hopes to expand its core category.And brand combination, and become a new growth engine. So, in the future, how does the company plan to expand the biscuit snack business after taking down the business of blue cans and other businesses?
In this regard, Ferrero said to the small food generation: “At present, the company continues to carry out localization innovation not only in the existing product lines such as Ferrero Roger and Jianda, but also actively explores the wider growth in the field of packaged confections. Opportunity. However, it did not disclose the specific ideas for the blue can cookie, only described the latter as “any future business relationship will be based on the nature of the contract.”
At present, there is only one month left in the “Double 11”, one of the major sales nodes of the year. The sales season of the Spring Festival next year has also entered the preparation stage. Can Ferrero, with its new brand lineup, play the biggest role in this sales war? energy? let us wait and see.