Confectionery Juggernaut

With 63.6%¹ annual growth and recognised as the fastest-growing major supplier of confectionery in the UK², Rose Marketing UK has become a confectionery juggernaut. With an ever-expanding and impressive portfolio that includes novelty confectionery, ambient desserts, license branded confectionery and ambient ice pops, Rose is the go-to confectionery supplier.

Novelty confectionery remains at the heart of the business as demonstrated by Candy Castle Crew Category Management customers whose sales continue to outgrow the category average at 20% year on year. Alongside this, the self-proclaimed ‘Kings of Liquid Candy’, sold over 9 million units (almost 550,000 litres) of liquid candy which has been redeveloped to remove 35 tonnes of sugar in a year.

Licensed products are also an integral part of the business: 73.4% of consumers are more likely to buy a licensed brand product for their children³. And, with a strategy to only work with the biggest and best-loved brands, Rose Marketing is licensee to the likes of Robinsons, Vimto, Swizzels, Chupa Chups, SLUSH PUPPiE and Tango.

Rose’s diverse collection also includes ambient desserts like jelly pouches and pots as well as ambient Eezy Freezzy Ice Pops.

Turning attention to 2023 and to keep pace with prodigious demand, Rose have recently opened a larger head office and recruited new talent. A packed programme of NPD is planned and also specific launches for licensed brands.

Q&A with Managing Director of Rose Marketing UK Steven Watt:

How has your sector of the confectionery category performed over the past year and have impulse sales continued to remain strong or have you noticed a visible trend back to multipacks as consumers stay at home more during a tough inflationary environment?

Rose Marketing UK has seen a very strong performance across all sectors and within novelty confectionery in particular. The Rose Marketing confectionery range delivered a sales increase of 63.6% last year, compared to the industry average of 19.8%. (Nielsen total average, 52 weeks, 17^th December 2022). Sales continue to suggest that consumers like to reward themselves with small treats on a fairly regular basis and the retail price of novelty confectionery provides them with a very affordable option. Impulse purchases have remained firm as novelty confectionery continues to be purchased as an unplanned treat. This appears to be preferable when compared to something like a pre-planned multipack purchase.

What key trends have you seen in the market of late in terms of plant-based or free-from confectionery? Have you seen any notable innovation in this sector, such as in gelatin-free formulations, for example?

At Rose Marketing, we keep fully updated on the latest consumer and industry trends. The vegan and vegetarian trend continues apace across the entire industry and whilst many of our products already fall within this category, as part of our approach to new product development and our own brand standards, we aim to make the majority of our ranges suitable to vegan /vegetarian diets.

What other trends have you noticed in terms of nostalgia and NPD/innovation? Are you continuing to see growing demand for reduced-sugar or energy/mood-boosting/functional confectionery?

The cost-of-living crisis that many households are facing is having a definite bearing on future trends. Consumers, especially those with young families, are opting for more affordable options, and for things that have a combined or multi-use. This is when novelty confectionery comes into its own and gives consumers a two-for-one product: a confectionery element and a subsequential toy that children can play with once the sweets have been eaten. Essentially, by choosing these kind of options, consumers are getting more bang for their buck – at a price they can afford..

Last year, tropical and citrus flavours, along with chocolate orange were to the fore. What flavours or styles of sweets do you feel will become increasingly popular in the market over the next year and why?

Blue Raspberry was a top flavour trend for Rose Marketing in 2022 and we see this continuing into 2023 and beyond. According to our sales data for 52 weeks 31.12.22, perhaps surprisingly Blue Raspberry outsells Orange by two to one. Kids simply love the unconventional blue colour, particularly when they see their tongue! This is such a fun element that kids never seem to tire of

What has your experience been of the implemented HFSS legislation so far? Has it had a distinct impact on your impulse sales and have you seen success with any alternative strategies implemented to mitigate the impact? If so, what? Also, how do you feel the upcoming legislation on volume limits in October this year will impact sales?

Since the implementation of the HFSS regulations, our sales have remained strong. It is still very early to say whether there will be any long-term impact for the business. Because we mainly sit within the novelty confectionery arena, because of our usual positioning in-store, the upcoming legislation on volume limits is unlikely to affect us. We are however very conscious of the legislation and as such are looking at HFSS-friendly versions of our top-selling lines. We have already revised our liquid candy range removing 35 tonnes of sugar from 2021 – 22.

At the end of the day, if consumers wish to reward themselves or their families, they will decide what that will be and potentially seek it out in-store.

How is your brand addressing increasing consumer concerns over sustainability and the environment, particularly for sourcing of ingredients and what advances have you made in the past few months?

Rose is developing its positioning on sustainability because we believe that to embed sustainability into everything that we do is in our long-term interest. We have a responsibility to ensure that we are providing the best product to our customers. To achieve this, we strive to use high-quality, responsibly sourced ingredients. Our vision is to provide customers with a range of sweet treats to healthier alternatives which are produced to the highest standards and responsibly marketed. We have completed a number of initiatives to support our packaging reduction programme and improved recyclability across a number of core lines, whilst engaging and working closely with our supply chain to follow our design for recyclability guidelines and ensure we are sustainable from the start.

What marketing or merchandising support are you putting behind your brand to ensure greater consumer awareness and shelf stand-out? Is social media an important part of your strategy?

Our customers have access to effective point of sale that helps pull confectionery lines from the main fixture. We have invested in header panels, side fins and shelf wobblers for the Candy Castle novelty range which is provided free of charge to customers. Some retailers have reported that after the installation of the dedicated point of sale, their sales have increased by as much as 20%.

Social media remains an integral part of our overall marketing strategy. As a growing business with a very extensive product range, social media remains a cost-effective communication tool. We are utilising the most effective platforms, depending on the user. So, for example, LinkedIn is a vital source to reach customers whilst our Instagram account allows us to also interact with end consumers.

We also utilise email marketing as an effective way to advise of new product launches and promotions.

What recent NPD have you launched or do you plan to launch over the year ahead and what’s your prognosis for the confectionery category in the months to come?

2023 is set to be exceptionally busy for Rose Marketing UK and there is a full programme of NPD launches planned throughout the year. As a licensed partner with many of the UK’s biggest brands, in the first half of 2023, we have planned launches for Swizzels Squashies Jelly Pouches as well as new lines within SLUSH PUPPiE that include SipzLiquid Candy and Candyfloss.

The outlook for confectionery sales remains very positive. Over the past 12 weeks, sugar confectionery has grown over 8.9%.

¹ Nielsen total coverage, 52 weeks 17^th December 2022.

² Nielsen, sugar confectionery, 52 weeks w/e 17^th December 2022.

³ Vypr Survey Results (508 participants, 5^th Jan 2023)