UK: Nestlé: climbing aboard the shrink-the-size bandwagon (COMMENT)
Nestlé Rowntree is entering the bite-sized sector with the launch of Kit Kat Kubes. Over the last few years, there has been a proliferation of bite-sized innovations at a time when consumers are becoming increasingly concerned about health and well-being. However, with small sizes that take the guilt out of eating, brands can capitalise on those consumers who are struggling to act upon their well-meaning aspirations.
Although still at the planning stage, the 'big launch' of Kit Kat Kubes is expected to be in October. This coincides nicely with the Christmas period when sales of bite-sized confectioneries do particularly well. One of the sizes on offer is expected to be a cube shaped gift box especially for Christmas, although the project rollout will involve several size formats.
As with the launch of Kit-Kat Chunky, Nestlé is again squaring up to Mars, which is regarded as a market leader in the bite-sized market.
News of Nestlé's venture follows a similar announcement from Fox's Biscuits, which, supported by a "multi million pound" marketing campaign, is soon to be introducing a mini version of the Rocky brand.
It is perhaps no surprise that manufacturers and retailers are latching on to the bite-size phenomenon. Not only is snacking an increasing source of consumers' daily food intake, consumers across Europe are increasingly conscious of their calorie intake. Bite-sized products provide the opportunity for controlled self indulgence, removing the guilt associated with traditional full-sized chocolate bars.
However, the strong sales performance of such products suggests consumers could well be deceiving themselves – by actually eating and spending more.
The proliferation of bite-sized innovations comes at a time when the population of Europe is growing fatter. Only 1% of the 230.6 million people across Europe who attempted a diet in 2002 achieved permanent weight loss. This is because the vast majority of consumers diet sporadically; 32% find it just too hard.
With confectionery manufacturers employing techniques that continue to melt consumer will power it seems likely that consumers will continually seek out dietary products advice. If Nestlé can successfully manipulate consumers' feelings of guilt, it is likely that Kit Kat Kubes will establish a strong presence in a growing market.
(c) 2003 Datamonitor. All rights reserved. Republication or redistribution, including by framing or similar means, is expressly prohibited without prior written consent. Datamonitor shall not be liable for errors or delays in the content, or for any actions taken in reliance thereon.
The new health consciousness of consumers is believed to be one of the reasons for stagnant value growth of ice cream sales in Western Europe. But with new and unusual combinations of flavours, more p...
Innovation is king - or is it? Fear of legislation or simple lack of imagination has depressed innovation in the food sector for a couple of years. Brand extensions and me-too copycats are not the sam...
Police in the Australian state of New South Wales are investigating a threat to contaminate Snickers and Mars bars, they said today (Friday)....
Swiss food giant Nestlé has announced that its Australian unit will cease manufacturing milk powder, while it has also sold a powdered milk factory in the Netherlands....
Swiss food giant Nestlé has decided to delist its shares from Euronext Paris's Eurolist and the London Stock Exchange....
Israeli food manufacturer Osem-Nestlé Israel posted revenues of NIS617.7m (US$140.8m) for the first quarter of 2005, compared with NIS615.7m in the corresponding period in 2004, an increase of 0.3%....
Nestlé UK has announced that from June 2005 every box of Nestlé breakfast cereals will be made with whole grain....
Nestlé sales in the first quarter of 2005 were up and on target to reach the company's full year goals it said today (Monday)....
- General Mills sales woes continue - analysis
- Why personalisation will take-off in US food
- Comment: Meal kits in US - don't believe the hype
- US food next wave on display at Winter Fancy Food
- Column: Kraft Heinz, Unilever and sustainability
- Unilever 'lining up spreads sale'
- UK own-label firm Park Cakes sold in MBO
- Immigration crackdown "risk" for US dairy industry
- BRF plant suspended amid bribery allegations
- Fonterra cuts earnings forecast