July 5 2024  |  Industry News

Lindt & Sprüngli sets trajectory with 20.1% organic growth

By Hibah Noor

Lindt & Sprüngli’s most recent Diwali campaign capitalized on the popularity of the luxurious LINDOR among Indian consumers, and made readily available the LINDOR Tube in Milk and Assorted, as well a special gifting Trio Bag developed specifically for the season

Lindt & Sprüngli’s global travel retail business is riding a wave of success, reporting an impressive 20.1% organic growth in the 2023 financial year. This Swiss chocolatier, renowned for its premium offerings, is capitalizing on the resurgence of global travel and evolving consumer preferences to solidify its position in the travel retail confectionery market.

Peter Zehnder, Head of Global Travel Retail at Lindt & Sprüngli, attributes the robust growth to strong performances across all regions. He highlights the company’s focus on “enchanting activations, a new Category Vision and numerous novelties” as key drivers of this success. Notable achievements include Lindt’s largest-ever travel retail activation at Heathrow Airport, an extended Diwali campaign and product innovations tailored to diverse target groups and consumption moments.

Zehnder expresses optimism about maintaining this growth trajectory given the company’s strategy, which revolves around engaging in-store activations, strategic collaborations and a strong seasonal focus. Zehnder points to the recent launch of the travel retail-exclusive Napolitains Captain Cocoa and Captain Skyla range as an example of the company’s innovative approach, stating that it has garnered positive feedback so far. “We’re excited to see how the range performs throughout the rest of this year,” he says.

The new travel retail exclusive Napolitains Captain Cocoa and Captain Skyla range offers premium chocolates that appeal to families and younger travelers

The pillars in action

Lindt & Sprüngli’s ambitious vision of “adding confectionery to every basket in travel retail” underlines its commitment to making travel more indulgent. This goal hinges on two key pillars: gifting – the “Delight” pillar – and impulse purchases. Zehnder emphasizes the year-round opportunities in the gifting segment. “The majority of gifts are not purchased to celebrate a particular holiday but simply to show someone that you care,” he explains, highlighting the importance of maintaining a robust gifting offer throughout the year.

Impulse purchases, driven by the accessibility and universal appeal of confectionery, are another crucial element in Lindt’s strategy. The company is advocating for increased visibility of confectionery at multiple points in duty free stores, including checkouts. Zehnder notes, “As a universal product category, we know that confectionery can be a major footfall driver and deliver high conversion rates.”

Lindt & Sprüngli recognizes the importance of on-the-go consumption in travel retail, with the “Recharge” snacking pillar accounting for over 30% of purchases. The company has been focusing on developing this segment, which Zehnder believes still has room for growth. “We have been working hard to ensure our offer, in terms of formats and placement locations, reflects how important this segment is,” he says. “Shoppers are looking for something that is practical and that will combat hunger, low energy or even boredom straight away.”

Tailored campaigns and offerings

Understanding regional nuances is paramount in the global travel retail market. Lindt & Sprüngli’s approach involves tailoring marketing campaigns and product offerings to specific regions and cultural events. “For example, in APAC, we emphasize seasonal events like Chinese New Year, highlighting key brands such as LINDOR and Swiss Masterpieces, while also offering specific solutions such as Pasalubong bags in the Philippines and sense-of-place packaging for LINDOR Pick & Mix in Hainan,” says Zehnder.

The company is particularly attuned to the burgeoning Indian travel market. Zehnder reveals that chocolate and confectionery is the most purchased category by Indian duty free shoppers, with 35% making such purchases – five percentage points higher than the global average. Recognizing the cultural significance of gift-giving in Indian society, Lindt & Sprüngli is focusing on the “Delight” segment to engage this growing demographic.

Lindt’s Salted Caramel range limited edition demonstrates the company’s focus on product innovation, catering to evolving consumer tastes in the travel retail market

As for the rising Gen Z demographic, Lindt & Sprüngli is adapting its approach to meet their demands. Zehnder states, “We focus on innovative packaging formats, sustainable practices and engaging in-store campaigns. Quality, innovation and sustainability drive our approach to meet Gen Z’s demands.”

Innovation remains at the forefront of Lindt & Sprüngli’s future plans. The company is committed to creating novel flavor profiles, implementing sustainable practices, and developing captivating packaging across various price points. Retailtainment also plays a crucial role in their strategy. Zehnder concludes: “We’re committed to enhancing in-store experiences – interactive displays, tastings and sense-of-place packaging – to engage and delight our customers. By combining innovation and retailtainment, we ensure Lindt & Sprüngli remains a top choice for chocolate enthusiasts worldwide.”

Lindt’s eye-catching pop-up activation delights and engages travelers through exciting retailtainment

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