NESTLÉ RESPONDS TO COVID-19 WITH CONSUMER DRIVEN INNOVATION

In a year that has tested the travel retail industry like no other, Nestlé International Travel Retail (NITR) is gearing up for 2021 with continued faith in the sector’s resilience and ability to recover. Reacting to the latest m1ndset consumer insights, NITR remains committed to the category growth drivers announced last year to drive industry growth. “Our industry has always shown itself to be resilient over the long-term, ” says NITR general manager Stewart Dryburgh.“Identifying the correct growth drivers to meet the needs of the post-Covid 19 travelling consumer are critical to moving forward and our innovations for 2021 reflect this – notably the economic effect that Covid-19 is having on disposable incomes.” KITKAT® to drive recovery KITKAT® has become an iconic brand since its launch in 1937 and is now available in over 100 countries with accelerating growth in travel retail. Not surprisingly, therefore, KITKAT® is NITR’s key strategic brand to drive recovery in 2021. KITKAT® Senses has been a key driver of growth and 2021 sees this range extended with a new TR exclusive that meets the needs of travellers for Uplifting Breaks. Appealing to travellers looking to indulge at a low out-of-pocket price, KITKAT® Senses Tablets offer a delicious multi-sensorial break on-the-go. Available in three indulgent flavours, Caramel Crisp, Cookie Crumble and Hazelnut Crunch, inside each bar is a shareable treat with 10 rows of irresistible inclusions on a classic KITKAT® wafer, enrobed in a smooth milk chocolate coating. A chocolate lover’s delight, this decadent combination is the perfect, special addition to any travel break and ideal for placing in the confectionery merchandising sector or at the cash till point for impulse buy. Availability is from March 1, 2021. “KITKAT® Senses Tablets create a complete brand portfolio with products available to suit any occasion within the Elevated Experience and Deeper Connections need-states,” explains Dryburgh. Bringing the KITKAT® portfolio to life in 2021 will be the V.I.B Lounge concept initially introduced to retailers at TFWA World Exhibition last year and implemented highly successfully for Chinese New Year during January 2020 at Singapore Changi Airport Terminal 2 in partnership with Lagardère Travel Retail. Using the taglines #liveyourbreak and @THE V.I.B. LOUNGE, the lounge will be supported by new design FSUs and an updated KITKAT Bus with digital and non-digital versions to provide safe, effective and refreshing consumer engagement in 2021. SMARTIES® moves to paper packaging Sustainability remains a key motivation for Nestlé, leading with SMARTIES® as the focus of its 2021 ambition to remove all single use plastic packaging. This year saw the introduction of the SMARTIES® Travel Retail Exclusive Music Creator with a new carton box and digital content. The year to come will see its full core confectionery range change to recyclable paper packaging as follows: Giant Tube: plastic lid replacement with cardboard closing and shape change to giant hexatube with paper sticker; Toppers: Giant tube change to new giant hexatube (same weight) with paper sticker; Plastic bag/pouch: complete change to sturdy paper with protective qualities. “This move is a great example of Nestlé taking the lead in sustainability,” continues Dryburgh. “We were the first confectionery brand to use 100% sustainable cocoa for KITKAT®. Now with SMARTIES® we are the first children’s global confectionery brand to move to paper across all formats” NITR will also be moving to starting the roll out of recyclable packaging for all its travel retail Nestlé Mixes & Quality Street pouch and sharing bags during 2021. Nestlé aims to have 100% of its packaging recyclable or reusable by 2025. A travel retail exclusive success story NESTLÉ SWISS® has been a true success story, driving category growth by adding real value to the tablets and informal gifting segments, delivering 100% Swiss chocolate and a true brand experience. In 2019 NESTLÉ SWISS® launched its Indulgent Tablets in three flavours: Dark chocolate with candied orange peel pieces and cocoa nibs, Milk chocolate with cranberries, hazelnuts and almonds, and Milk chocolate with grapes, almonds and hazelnuts. Based on consumer feedback, indicating a desire for a more self-indulgent size, the collection has been right-sized in 2020 from 195g to 170g. Importantly, the ingredient level (nuts and fruits) remains the same, retaining the ‘bursting with flavours’ and indulgent perception. The three existing flavours are now joined by NESTLÉ SWISS® Dark Blueberry 170g. Perfect for sharing, it combines dark Swiss chocolate with blueberry, Almonds and Hazelnuts in an exciting new creation which received highly favourable feedback in Cannes last year. The product brings together more than 100 years of chocolate-making expertise with sustainably sourced cacao and visible fruit and nuts for a truly indulgent experience. The NESTLÉ SWISS® portfolio will be supported in global travel retail with strong merchandising and POS displays that promote the Swiss lifestyle concept. Exciting new flavours for an enduring star This year saw the successful launch of a London-themed travel retail exclusive design of AFTER EIGHT® indulgent after-dinner mint treats. The unique, 400g box highlights the UK origins of the iconic chocolate by bringing the London skyline to life, presenting buyers with a sophisticated and striking gift opportunity. Meeting a key Nestlé ITR driver for category growth - all year-round gifting – its success has inspired the introduction of four new limited edition AFTER EIGHT® 400g flavours for 2021: Strawberry, Dark, Irish Coffee and Orange. “The luxury allure and sense of heritage around the AFTER EIGHT® brand is undeniable and we look forward to rolling out these new indulgent flavours in 2021,” says Dryburgh. “They are sure to appeal to travelling gift buyers who want an impressive gift item from a brand that they know, trust and love.” Innovation in food “We have gone to great lengths to ensure that our 2021 Innovations are relevant across all category growth drivers, taking into account the changing pattern of travel,” continues Dryburgh. “Innovation, however, is not just about confectionery. The category also encompases fine foods and to that end we continue to present opportunites from across our group’s portfolio. It is therefore with great pleasure that we announce the launch of NESCAFÉ® GOLD into travel retail for 2021. Launched in 1938 NESCAFÉ® has grown to become a global icon, to the tune of 5,500 cups drunk every second. This makes it a natural for travelling consumers and our offer will include product for all buying levels: premium, standard and value.” Additionally, NITR is also planning to introduce a range of premium infant products under the illuma brand to travel retail, targeted at the Chinese consumer. “Covid-19 may be having a most dramatic impact on our industry, but we at Nestlé believe in the future of travel retail and our category, thanks to the passion for the experience and discovery that travel brings to each and everyone of us.”

September 14, 2020

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