Brands and Christmas Battle

Christmas represent a market of 552 millions euros or 20% of total sales of the year. The chocolate is the first product during celebration and have strongly increased its price during the last 3 years (+12%) and each brand is fighting to impose its product over the market.

This is mainly the case for Kraft, even if it is second in the market in France thanks to its leadership in bars market, Kraft represent only 5% of the segment chocolate during Christmas. Leaders are Ferrero and Lindt. Indeed, their products “Champs Elysées” “Pyrénéens” (Lindt), Escargots de Lanvin (Nestlé) and Ferrero Rocher have a strong christmas personality .

To achieve its objectives (become the 3th brand for Christmas chocolate segment) Kraft is betting on Suchard and Milka. To face Kraft and its new ambitions, Nestlé rely on the diversity if its portfolio: news flavors ( After Eight Cassis) and new packaging .

Those seosonal strategy are valorising brands in order to dynamise the market mainly against small size chocolate makers.

Source: http://www.lefigaro.fr/conjoncture/2011/12/16/04016-20111216ARTFIG00495-roi-des-tablettes-kraft-veut-imposer-ses-chocolats-de-noel.php