Nestlé ITR to share food category mission and VERSE model in Cannes
Nestlé ITR is returning to its Beach Village location at TFWA WE Cannes with a clear mission: to build food into the #1 category in travel retail.
As the world’s leading food company, Nestlé believes it is best placed to champion this growth strategy. Stewart Dryburgh, General Manager at Nestlé ITR, says it is clear that industry retailers agree with this principle. “During 2022 we have been engaging directly with our retail partners, who are embracing the opportunity to grow sales by thinking of food beyond confectionery,” he comments.
Following the launch of its strategy, Nestlé commissioned m1nd-set to further validate the opportunity and understand the appeal of different categories and the key shopper occasion across major food subcategories.
Key headlines from the research include the fact that food (including confectionery) has the highest appeal of any category at 69% with beauty second at 59%. Furthermore, Millennials show an even higher number at 75%. The likelihood to buy coffee was overwhelmingly positive (81%) with biscuits also performing strongly.
During the event, Nestlé ITR will unveil more details and discuss directly with retail partners how this extensive study can inform the category assortment and drive growth.
“Food, including confectionery, is already the number one driver of cross-category purchase and the second most purchased category. This gives us a very strong platform from which to build. In Cannes, we will be discussing these opportunities with our partners including a focus on both coffee and the fast-emerging health and wellness segment – incredibly relevant yet extremely under-developed within our distribution channel,” adds Dryburgh.
Nestlé’s food strategy will be delivered via its VERSE model: Value, Engagement, Regeneration, Sense of Place and Execution.
“Each of these drivers is critical in achieving our goal and giving the consumer the best shopping experience. Fast rising inflation and cost of living are of great concern, but we are confident that the combination of accessible price points and high consumer appeal means that the food category can be a key growth driver. In fact, it has been one of the most resilient categories during previous downturns,” Dryburgh explains.
During customer meetings Nestlé will unveil investments across all the levers including products that will create Value, driving Engagement across the journey, with digital tools from the digitally connected shopper, as well as Sense of Place initiatives.
In terms of Regeneration, a key focus for all TR stakeholders, the trade show also provides the perfect opportunity for Nestlé to showcase its world-leading sustainable packaging strategy.
Last year, Smarties introduced recyclable paper packaging across all of its confectionery products, globally. This year, the company introduced its KITKAT Vegan traveler’s pack and Nestlé Income Accelerator Plan, which helps farmers to reach a living income,
Finally, visitors to the stand (Beach 7) will also be able to view Nestlé’s full travel retail product portfolio of global icons such as KITKAT – including its SENSES range – Smarties and Nescafé. These will show alongside travel retail exclusive brand Nestlé Swiss and local favorites After Eight and Quality Street.
“The whole team at Nestlé are delighted to be back in Cannes. We know there are still major challenges facing the industry, but we also know that there is a strong consumer desire to travel. This year we have experienced increases in footfall in Europe, the Middle East, and North America, while it’s also good to see most of Asia now starting to open up. We’re looking forward to a very busy and productive week in Cannes as we continue our mission to make Food the No 1 most purchased category in travel retail,” concludes Dryburgh.