Price/value ratio plays the leading role on the fondant candy market

This year’s fondant candy season may bring significant price increase. Both base material and energy prices increased, affecting branded products and private labels alike. Volume sales are practically guaranteed to fall, but well-established and adequately supported fondant candies may do well in the shops. It is revealed by retailers’ feedback that last season’s sales fell below expectations, but with the disappearance of a formerly significant manufacturer, Sweet Point, producers did quite well. – The fact that Sweet Point quit did not shake the market. Probably because retailers forecast consumer demand better and order products accordingly – says Balázs Pászti, a member of Szamos Marcipán’s group of advisors. According to Ilona Boldizsár Halászné, product manager at market leading Bonbonetti Kft., their expectation is to realise similar fondant candy sales to last year’s. Consumers will focus more on price/value ratio, perhaps buying less, but good quality products. She predicts a price increase around 10 percent, partly due to the VAT increase. Private labels’ market share has been stable in the past few years, but the price increase affects them as well; since their brand value is lower, they may end up losing ground. In 2008, Bonbonetti Kft’s three brands improved sales revenues: Bonbonetti by 8 percent, tibi by 20 percent and Nosztalgia by 57 percent. – This year, we focus on the same three brands and add Mártott Konzum to our assortment. We are also launching a promotion campaign with Disney, drawing valuable prizes on 1 December and 12 January – says Ilona Boldizsár Halászné. Szamos Marcipán also did very well at the end of last year, by selling 50 percent more fondant candy in terms of volume. Their selection of flavours widened, besides a high almond-content marzipan product they came out with its orange and pistachio version as well. According to Balázs Pászti, their spectacular new in-store display was part of their success. This year, in a few highlighted stores and hypermarkets they are going to build even more elegant and exclusive displays. Along fondant candy, they are also going to place exclusive dessert products on these. This year their communication strategy will focus on in-store activities instead of ATL tools.