Nestlé is set to make waves at this year's TFWA World Exhibition in Cannes as it announces pivotal initiatives aimed atpositioning Food as the number one most purchased category in travel retail. Additionally, the company will introduce an exclusive sustainable brand, showcased at Beach Village 02.
Within its VERSE model (Value, Engagement, Regeneration, Sense of place, Execution), Nestlé will introduce brand and category initiatives, featuring a remarkable lineup of eight new travel retail exclusive products. These initiatives are geared towards accelerating industry growth by addressing unmet consumer needs within the expansive Food category. Among these initiatives, the spotlight shines on the launch of the travel exclusive brand, NESTLÉ Sustainably Sourced Cocoa. Debuting in Cannes, this brand is a tangible outcome of Nestlé's collaboration with the Rainforest Alliance, aiming to support cocoa farmers and their communities.
Nestlé ITR General Manager, Stewart Dryburgh, shared the promising results of these strategies, stating, "The fantastic news is that the strategy is already working and has been embraced by many of our key retail partners across the industry. We are delighted to report that m1nd-Set research for H1 2023 shows that the purchase penetration of food (including confectionery) has increased from 30% to 35% of duty-free buyers. This is the fastest growth of any category. Critically we are seeing this growth from both confectionery and non-confectionery, with additional sales being incremental; in other words, with zero cannibalization."
While confectionery remains a core element of the Food category, it's the non-confectionery sector, encompassing vitamins/minerals and health supplements, that is experiencing the most rapid growth among all travel retail subsectors. With a higher conversion rate compared to other sectors, especially among the fast-growing Gen Z traveler demographic, the future of the food category appears exceptionally promising.
Nestlé ITR remains committed to sustaining this growth momentum, leveraging its VERSE model to boost sales. The TFWA World Exhibition serves as the ideal platform to unveil these significant initiatives to retail partners on a global scale.
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