Definition of British chocolate

House of Dorchester highlighted an interesting point to us recently. What constitutes “British” chocolate these days and just how much of the chocolate claiming to be British actually is? Natalie Dimmock from House of Dorchester has some interesting thoughts to ponder.

 

“There was a time when big names associated with the UK chocolate industry could convincingly lay claim to their ‘British’ credentials, with companies like Cadbury taking on such a sizeable scale of production that the business built a whole town to accommodate the work force.

Fast track to today, when chocolate continues to dominate the confectionery market. With sales of chocolate increasing by 17% over five years, the popularity of chocolate products looks destined to increase. Growth can in part be attributed to the recession, which has fuelled the ‘cheap night in’ - a concept which inevitably incorporates a chocolate indulgence. However, in a year when ‘Brand Britain’ has taken on a whole new dimension, it has to be noted that a number of ‘chocolate players’ continue to trade on their British heritage. But, when you dig deeper, how many of these brands can truly be defined as a veritable and credible Team GB brand, flying the flag for British industry?

Firstly, it is important to identify what actually constitutes a thoroughly British chocolate brand. If we are to be literal about this, then being British should only apply if the company remains under British ownership. Anyone reading the financial pages of the nationals will be aware that a large number of British manufacturers are now under Icelandic or American ownership. There are many chocolate brands whose history is rooted in the UK or who may refer to the fact that they are UK based. Green & Blacks, Terry’s, Elizabeth Shaw, Bendicks, Cadbury’s, Rowntree – these are all popular brand names with an undisputed UK heritage. But to qualify as being a full-blown British chocolate brand, surely the relationship with Great Britain should permeate throughout the business rather than just relate to the origins of the company?

For me, to be eligible to cite the British chocolate brand claim, it needs to meet the following criteria:

• The parent company that owns the brand, must be British owned

• The chocolate product must be physically manufactured in the UK, accepting that the liquid chocolate / cocoa mass will need to be imported from cocoa growing countries

• The chocolate must be made according to an original, British derived recipe

• The packaging which supports the chocolate product should be sourced from the UK

• British transport companies should be used to transfer the product to its various retailers / consumer outlet destinations

• Added kudos can be derived from the formal approval of the product by British taste authorities such as the prestigious Great Taste Awards. The holding of a Royal Warrant and therefore the recognition of the product by the British Royal family will also go some way to asserting bona fide British brand status

In the current market, upon closer inspection, many chocolate brands which are inferring the ‘Buy British’ call to action, are in reality duping consumers. A number of players have moved their production out of the UK, citing the ability to streamline costs abroad, to locations such as Germany, Poland, Sweden, Slovakia or Belgium as the rationale for the relocation.

But surely in a society where companies are being encouraged to increase the level of transparency in their dealings with consumers, more should be done to put in place clearer British brand guidelines? When consumer research is telling us that brand integrity is being held in such high regard by our customers, how can so many chocolate brands be allowed to continue what effectively constitutes the dissemination of misinformation.

This becomes all the more critical when we examine the positive impact the true British brands play in the UK. Aside from the obvious benefits relating to the creation of jobs in roles across a myriad of disciplines ranging from manufacturing to marketing and sales, British brands also play a vital role in protecting our heritage. With so many UK chocolate players being acquired by international conglomerates, there is a real risk that the chocolate industry could leave our shores for good. We should be doing everything possible to ensure the chocolate making skills that have been honed and passed down from generation to generation remain an essential ingredient in Britain’s colourful culinary culture. And, at a time when we are seeing consumers re-embracing ‘artisan’ and choosing the passion and expertise associated with hand-crafted chocolate products over those manufactured on a mass production basis, smaller British chocolate brands should be allowed to enjoy some payback for their long term investment in UK industry.

House of Dorchester is certainly not the only British chocolatier to abide by the ‘British brand’ code of conduct and we congratulate all our colleagues who remain committed to maintaining the same high standards associated with authentic British chocolate. Our fear is that too many consumers, whilst believing they are supporting a British chocolate brand, are perhaps unwittingly adding to the demise of the UK chocolate making industry.

www.sweetretailing.co.uk

Creativity can profit

I was really interested to read this recent article about Aunt Nellie’s Sweet Shop in Ireland, creating a Willy Wonka style confectionery promotion of their own with some important football tickets to win. How creative! I bet it helped to bring many more people into the shop, which quite frankly is what every retailer wants these days.

Many businesses that retail confectionery rely solely on promotional opportunities offered to them by manufacturers or suppliers. Whilst this is clearly a good source of activity to take advantage of, there can surely be nothing better than your own bespoke promotional event to benefit your own specific locality? And it needn’t cost a great deal either.

Aunt Nellie had the right idea. A simple piece of paper was placed into the winning sweet bag whilst the tickets were kept safe and sound. The organisation of such a confectionery promotion need not be very taxing. Making use of in store displays, posters in windows, social media and good old conversation, the news of a fun promotion can quickly be spread in the locality at next to no cost.

So for a bit of fun, we got our thinking caps on for just a few minutes and came up with a little bit of basic inspiration, to get you thinking along the right lines. Of course, we’d love to hear from anybody that has created a successful bespoke confectionery promotion in their shop. Please just get in touch!

1. Make use of raffle tickets inside some bagged up sweet selections, offering a selection of smaller prizes which could be as simple as free stock, a small child’s toy (think Kinder Surprise!) or a percentage discount voucher on their next purchase.

2. If you sell pick and mix sweets from a display of jars, choose a secret winning sweet, different every week (hide a promotional card behind the jar!). If a customer buys some of these sweets they can win a voucher to have the same amount free or half price next week.

3. Create a simple prize draw. A customer is entered if they buy a certain amount of confectionery from a particular range or display. The prize could be a hamper selection of confectionery. Why not ask a supplier to get involved with you?

Find plenty more confectionery fodder at www.sweetretailing.co.uk

A point of difference?

I think that the objective of any UK confectionery retailer is to maximise their sales and stand out against the competition so that they have a point of difference. Nothing new there then.

It has always been said that price is only ever a short term point of difference – someone can always be cheaper. How true. But what about your product range?

A recent hot topic is American confectionery. Considered a niche sector of the UK confectionery market, American sweets and chocolates have really taken the market by storm in the last 12 to 24 months. More UK retailers and wholesalers have sprung up, dedicated to this profitable and different confectionery category whilst many confectionery retailers have been and continue to enjoy strong sales of these different and fun treats.

But what happens when the supermarkets get wind of it? We are about to find out. Asda has already leapt headlong into American confectionery, firstly with Hershey’s and Reese’s over a year ago and now with American Confectionery bays in 100 stores. It was revealed in The Grocer (4 August) that Tesco is to trial an American fixture in 10 of its stores. The range will include Hershey’s chocolate.

So is this the end of the advantage that smaller confectionery stores and retailers have on American confectionery or can they still use the category as a point of difference and benefit from the strong sales that exist? I guess that only time can tell and it certainly demonstrates the importance of keeping a close eye on the quality and uniqueness of your product range. It doesn't all have to been remarkably different of course, but you will want to be assured of those sectors and ranges that are.

Maximising the potential of any advantage that you have has never been so important. Smaller retailers are certainly able to do this, given that they can really get to understand their local shopper profile and what they want to buy from them. This is where they can truly stand apart, carving out a local position for themselves regardless of what the larger stores are up to. It never hurts to understand what’s going on behind your back though.

www.sweetretailing.co.uk

Rain makes customers grumpy

We are all getting fed up with it and none of us can do anything about it. The rain continues, ignoring the fact that our water table is full to the brim. Online feedback forum, Feefo, has recently revealed that the poor weather directly affects retailers in more ways than we think, with a greater amount of negative feedback being posted. Can there really be a link?

Feefo manages online feedback for all manner of UK retailers including Fat Face and The White Company, facilitating more than 1,000 reviews and ratings on a daily basis. From early June, the company noticed a significant uplift in the number of negative comments that their clients were receiving.

So confectionery retailers watch out! We are far more likely to take it out on the shops that we visit at the moment, as our spirits are dampened, not knowing whether summer is actually going to take place this year.

On the positive side of things, we know that confectionery has become a leading “pick me up” during the difficult economy and so perhaps it can reward your shoppers in the same way when the downpours show no sign of shifting? Perhaps you could actually turn it to your advantage, offering a special deal on every day that it rains? Downpour Deals! You heard it here first…

www.sweetretailing.co.uk

Can music increase sales?

Some very interesting UK market research has suggested that playing music in your store can ultimately increase sales. Is it that simple and can music boost sales for a confectionery retailer I wonder?

The research was undertaken by music licensing organisations PPL and PRS for Music. They talked to 1008 small and medium sized enterprises (many of them of course did NOT sell confectionery!). Here is what they discovered in a nutshell:

• 55% felt that playing music could increase your sales
• 79% believed that it could create a better atmosphere for customers
• 81% said that playing music increased staff morale
• 25% said that they would lose business without it
• 86% felt that music could help to relieve tension or awkward silences for their customers

Now I haven’t personally been into many stores selling confectionery (except the likes of department stores) and found their choice of music gently surrounding the sweets I might like to indulge in. Maybe we are missing a trick here? Has anyone tried music in their shop to positive or negative effect? We would love to know!

Retailing certainly needs to appeal to the senses and whilst confectionery retailing can easily appeal to sight and sometimes smell, why not our hearing too? But then what style of music would you play? Get it wrong and your customers will turn right round and leave before buying a thing! Retailers seeking that old fashioned look might wish to choose some suitably aged music to get their customers into the right time frame whilst shops targeting a younger audience might consider something a little more up to date. Could it work? There is only one way to find out. 

For more confectionery retailing thoughts please take a look at www.sweetretailing.co.uk 

Update...we received these interesting comments from Dawn at The Candy Cabin in Chesterfield. We welcome further thoughts!

Just a few thoughts on playing music in my candy store. I have a PPL license, I usually play Radio 2 as it covers a wide range of audiences. However some of the midday chat can be partly controversial at times so I then switch to my iPod. I usually play 80's or 90's soft pop; no rock or dance/trance stuff. Strictly 'top-40'. I had a comment from customers, all positive, on playing music. One customer told me he thought it was very cool walking into a sweet shop that plays 80's music!

I couldn't work in the shop without music. It would just be too quiet!! As long as the music is calm, uplifting and not too loud it can help the customer experience.

Thanks Dawn, it's good to know that music can actually have a positive impact in a sweet shop.

Sell sweets with a smile

We might all know that offering good customer service is a step in the right direction to a successful confectionery retail business, but it is always useful to find some factual reasoning behind this, especially when the UK high street is struggling to find its way. 

YouGov has recently undertaken a consumer poll to understand what brightens someone’s day – all the more important when the weather is so damp and dismal. Most of the key things that the poll highlighted don’t cost a penny and we think that bricks and mortar UK confectionery retailers can really excel in “day brightening” given that confectionery is generally a fun purchase. 

The top way to help someone’s day go well is to give them a nice big smile. What’s more, a smile is a two way thing as you tend to get a smile back and that brightens your own day too! High up on the list is to say “Good morning” – another simple winner. Other relevant key day brighteners include:

·         Offering a compliment

·         Giving them time to chat

·         Holding the door open for them

·         Listening 

These can all be implemented in a confectionery retail environment at NO cost whatsoever. The simple commercial logic is that if you can brighten someone’s day a little, they will enjoy coming into your shop, might buy more sweets and are more likely to come back and tell their friends - all helping you to sell more sweets. 

It really might seem obvious to many, but given some of the poor personal service and interaction I have received from many retailers in recent times, there is certainly no harm in stating the obvious when the opportunity arises! A high level of customer service will have a positive impact on your sales and comes at little or no cost to your business. 

What the YouGov research did underline is that not every simple action can be replicated in a retail environment. I don’t know many sweet shops that give you a hug, make you a cup of tea and buy you flowers whilst you decide what treats you decide to indulge in. 

So don’t let the weather get your confectionery sales down and focus on bringing the sun back into your customers’ days. 

For lots more talk about UK confectionery retailing visit our website at www.sweetretailing.co.uk 

Visit YouGov at www.yougov.co.uk

Discounted Thorntons chocolate

It is such a shame that Thorntons chocolate shops are still struggling, reporting a 2.7% drop in third quarter sales this week. And now the news that the UK chocolate manufacturer and retailer intends to turn a good number of its more troubled stores into factory outlets, selling off end of lines, shorted dated stock and over stocks at a typical discount of 50% (The Grocer 5 May 2012). 

When the UK confectionery market is generally demonstrating a positive course, it is sad to see such an established British chocolate icon struggle to take itself forward at the moment. Stock has a cost and as such it might be a wise move to develop a factory shop style outlet in order to facilitate its clearance, but I cannot help thinking that this will do little to help Thornton’s image. 

Long known as a specialist and most delicious British chocolate brand, will the existence of chocolate factory outlets diminish this image and develop Thorntons into yet another discount brand? I do hope not. On the other side of the coin, many quality clothing brands manage to balance full priced stores with factory outlet stores, poised to sell off their excess and less popular stock. 

From a financial point of view, it has to be good business sense to develop a route to market for sub standard and excess stock, freeing up the asset to become additional cash flow. From a brand perspective, it will be very interesting to see where Thorntons is to go next.

Visit the Sweet Retailing website.