Kraft responsible report

To counter the decline, manufacturers focused on more premium products that were sold at higher prices.

Kraft responsible report

The latter, together with limited access to credit due to tougher credit regulations introduced by the National Credit Bureau, placed a further strain on the spending potential of consumers.

In response, cash-strapped shoppers, especially lower-middle income groups, cut down on non-essential goods.

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Moreover, commodity costs rose due to a rapidly weakening rand, while the worst drought in 23 years contributed greatly to increasing Kraft responsible report costs. This in turn forced manufacturers to pass rising costs onto consumers in the form of increased unit prices, and chocolate confectionery was no exception.

Prospects Rising consumer awareness and increasing disposable incomes among middle-income consumers, product innovation as well as channel development by manufacturers to reach a wider consumer base will be instrumental to Kraft responsible report growth in chocolate confectionery over the forecast period.

Moreover, chocolate confectionery is likely to continue being premiumised as the category becomes more expensive. Leading manufacturers may choose to focus on cross-branding in order to leverage on popular brand names in one category by moving into others.

This is considered a lower cost way of growing brand share. For instance, Cadbury Crunchie has crossed over into a biscuit format globally and may also be available in South Africa in the forecast period.

Growing demand for sugar-free and chemical-free products has pushed companies to rebrand, relaunch and rethink their marketing strategies to focus on brands that will appeal to changing demand. Moreover, the economic climate led consumers to purchase gum less frequently or to drop out of the category altogether.

Thus retail volume growth declined in and manufacturers streamlined their portfolios, focusing on their core brands. Prospects In order to retain consumer interest in the gum category, manufacturers will continue to invest in flavour extensions or rotations replacing one flavour with another.

For instance, the popularity of bubble mint flavour could be replicated by other players who may also choose to introduce this flavour variant.

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Other options would be to combine other flavours with mint, such as strawberry mint and melon mint. Sour flavours which are popular in sugar confectionery may also be extended to gum over the forecast period. Much of this focus was on launching products that had been popular in the past, focusing on nostalgia and appealing to memories of childhood.

Both manufacturers and retailers also increased their commitment to novelty, expanding their ranges of products and dedicating larger shelf space to the category, a factor that further contributed to category growth in Candy Tops and Mister Sweet fell into third and fourth positions, respectively, both stable in comparison to Prospects During the forecast period, innovation will be the driving force in sugar confectionery in the country.

Manufacturers are expected to ride the wave of economic consolidation through higher investment in infrastructure, logistics and research and development.

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Product differentiation will take many forms, including new flavours, textures, formats and packaging, the incorporation of functional ingredients, as well as higher interaction with new technologies. However, in February the Finance Minister, Pravin Gordhan, announced a sugar tax on sugar sweetened beverages, to be implemented by 1 April This sugar tax aims to help curtail rising obesity levels in South Africa.

The tax on sugar is expected to result in a decline in sugar usage and thus serve to lower domestic sugar prices, a negative for the South African sugar industry. As such, industry players will need to tie in their brands with health trends, and possibly offer smaller portions.

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Kraft responsible report

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Confectionery in South Africa