New Chocolate Brand Set To Suit Customers’ Tastes And Pockets
Original Post : Sunday Times – 15 May 2022
Recently opened factory plans to produce 20m bars in the next two years, employ 150 staff.
Market research company Euromonitor said that, historically, consumers were loyal to brands owned by Mondelez SA, which makes Cadbury chocolates, and Nestle whose brands include Aero and KitKat. These manufacturers stood out as leaders of the chocolate confectionery industry, Euromonitor said.
“However, in recent years value for money along with premium chocolate confectionery products launched in South Africa shook up the status quo. Economic pressures as a result of rising costs, unemployment and the weak local currency forced consumers to seek value-for-money offerings.”
Euromonitor added that South Africans have a “love affair with chocolate” and their acquired taste for more premium offerings has resulted in brands such as Lindt and Ferrero Rocher growing strongly despite financial pressures.
There has also been a shift in the value equation, it said. “Sales growth of chocolate confectionery has shifted to the extreme with the premiumization and value for money trends growing simultaneously. Mid-market brands like Beacon are struggling as a result.”
Euromonitor said that, as was seen during the 2008 global financial crisis, affordable treats can thrive under tough economic circumstances as people look for small ways to indulge themselves.
Richester Foods partnered with international chocolate masters from Switzerland to produce Coco Bongo.
Cassim said Richester aims “to serve customers the best quality products possible at affordable prices and build our brands over time. We first want to tempt customer’s pockets, and when they taste the quality of our products, we believe that they will return for repeat purchases without question”.
Richester distributes to wholesalers, distributors, and resellers. Talks are under way to enter major retail stores.
“That process has started, and we will be in convenient stores, retailers and typical spaza shops in rural areas that maybe selling single units not only the wholesalers,” said Cassim.
“We’ ve reverse-engineered the price tag to ensure that our clients are able to make up to 100% profit, while simultaneously selling Coco Bongo at a highly affordable price for consumers,” he said.
Euromonitor said inflation, the rising cost of electricity and raw materials have contributed to an increase in average unit prices for chocolate confectionery in the past several years.
The global price of palm oil has reached record highs which means several snack products that use it as a raw material will see price increases. Soy oil, an alternative, has also seen steep price increases globally, so identifying alternatives will be difficult, Euromonitor said.