Page 42 - Retail World April 2020

CONFECTIONERY HI-CHEW LAUNCHES IN AUSTRALIA Hi-Chew fruit chews, claimed to be the most popular soft candy in its home country, Japan, is now available for distribution throughout Australia. The candy was created in 1975 by Morinaga & Company, one of Japan’s ‘big four’ confectionery companies. The primary distributor in Australia is Grocery Corporation of Sydney. According to Grocery Corporation Brand Manager Lucas Frigo, the company is “bringing a range of four sticks and three bags” for a total of nine flavours in the range. “We’ll have some new and exciting flavours such as Mango and Grapefruit, which are quite different for this category,” he told Retail World. “One of the key things that Morinaga has been focused on \[overseas\] is flavour innovation through market progression. “This translates into starting off with a core range of products and reinventing as we progress through the market. This helps to keep the brand relevant and ensure consumers are engaged. Markets like the US now have flavours such as Kiwi, Acai Berry and Dragon Fruit. “This is testament to the extent of flavour innovation Morinaga brings to the market and focus on ensuring flavours are true to life.” He emphasises that the chew is not a typical lolly but could be described as “sitting between a gum and a lolly”, ie, having a similar texture and chew to gum while being able to be swallowed. “Hopefully, all those things help to create incremental sales in the category,” Mr Frigo said. The confectionery will be available through select Coles stores, with planograms launching in May. There will also be a focus on increased distribution and ranging in supermarkets, which the company will fully support through sampling and POS activation displays. Grocery Corporation Managing Director and CEO Anthony King says the company is looking forward to launching the Hi-Chew brand in Australia this year. “Hi-Chew has gained a strong and loyal following over the past decade, particularly in the US and New Zealand,” he said. “We look forward to tapping into this global sentiment and replicating international success with the brand locally.” According to Morinaga Asia Pacific Company Managing Director and CEO Terry Kawabe, the chews, a top seller throughout Asia, “have achieved success worldwide, including fast sales growth in various Western markets such as the US”. Hi-Chew has been distributed in New Zealand for seven years, where it is sold in chains such as Pak’nSave and New World. “New Zealand sales have exploded by a factor of 11 over six years, and recent research shows Hi-Chew has a market share of 2.2 per cent in the sugar confectionery category, ahead of such legendary brands as Skittles, Mentos and Extra,” Mr Kawabe said. “And over the past five years, Hi-Chew sales have more than tripled in the US. “We’re in virtually every major retail chain in that market, including Costco, Walmart, Target, Kroger, Albertsons, HEB, Publix, Walgreens, CVS, 7-Eleven, and AM/PM. Our candy is highly popular among young people, so we regularly exceed sales targets.” According to Mr Frigo, Hi-Chew fruit chews as a brand has been growing at more than 30 per cent year on year in the US, and currently is worth more than $60m. He adds that through 2019, Hi-Chew enjoyed second-fastest growth as a non-chocolate brand in the US. FROM PAGE 39 opportunities and circumstances when they might want to enjoy the snack. “It also gives you a good platform for marketing activity – a reason for speaking to the media, or directly to your consumers and increasing buzz and talkability.” In line with this, the confectionery company recently launched a new flavour of Menz FruChoc: Mango. “It’s proving really popular and is now available at \[South Australia’s\] OTR stores and various other service stations,” Ms Love said. “South Australians are very loyal to local brands, and as the number one choc-bite product in the state, we want to keep our fans enthused by releasing new formats and flavours for them to enjoy the FruChoc in different ways and on different occasions.” On a national scale, she adds, the company is attracting further growth for its Violet Crumble product. “We launched a 50g Dark version of the bar last year, which is proving popular, and \[this year\] we launched the new Violet Crumble Dark 180g (bites) Bag into Coles,” she said. “Brands are continuing to release new formats to attract new audiences or get them to think differently about a product. The public love something new and being the first in their social group to introduce it to their friends. “Confectionery has always been about fun, and the appetite for something creative and cute doesn’t seem to be slowing down anytime soon.” 40 RETAIL WORLD APR, 2020