why food is the “answer to all the industry’s issues”

Nestlé International Travel Retail (NITR) doubled down on its belief in the future of the food category at the company’s annual press briefing, during the TFWA World Exhibition & Conference in Cannes earlier this month, while revealing ambitious plans for its flagship KitKat brand and acknowledging the challenging headwinds facing the wider confectionery category.

The Swiss multinational highlighted findings from a recent m1nd-set study that showed food was now the fastest-growing category in travel retail and a key driver of footfall and average transaction value (ATV). “Food is the answer to all the industry’s issues,” insisted Nicola Wells, NITR Global Head of Category Development, revealing that 37% of travellers now buy food in travel retail, up from 31% in 2021.

Nicola Wells

She added that food was also the most popular category among Gen Z travellers, the demographic least engaged with the overall travel-retail offer. “By 2027, they will be the biggest travelling population,” she explained. “Gen Zs and seniors are the least likely to go to the store, so they’re a big opportunity. Food has a broad appeal. It’s number one with Gen Zs and number two with everyone else.”

As part of this drive to grow the food category, NITR continues to focus on coffee which is growing at double-digits in travel retail with the Nescafé Roastery brand proving particularly popular with travellers. This month, the company is also trialling Nescafé Farmers Origins coffee machine capsules with Dubai Duty Free with the range offering single-origin beans from Colombia, India, Brazil and Africa.

Aura Sanchez

NITR continues to trial its vitamin, minerals, and supplements range in travel retail, initially focusing on Europe but with an eye to expansion into new markets. “We are learning what are the functional benefits that the traveller is looking for,” revealed Aura Sanchez, NITR Marketing Manager. “We started already with exploring immunity, energy, sleep and well-being, and we will be now adding two more– beauty and hydration.”

Sanchez stressed that confectionery remains the “beating heart” of the company’s product offer in travel retail. She revealed that NITR has big plans to leverage the global recognition of its KitKat brand, which she described as “the most influential chocolate bar of all time.”

NITR introduced three new travel retail exclusive Kit Kat products in Cannes– the 372g KitKat Mix Pouch, containing four flavours, Peanut Butter, Salted Caramel, White and Classic;

the 161g KitKat Senses Miniatures, offering Milk, Caramel and Hazelnut variants, and KitKat Ball, milk chocolate balls with a crunchy cereal centre.

The travel retail-exclusive Nestlé Sustainability Sourced Cocoa line, first unveiled in Cannes last year, has augmented its range with a new product: the 170 g Dark Chocolate Thins, which features 20 individually wrapped squares in three varieties – 70% Cocoa, Cocoa Nibs and Salted Caramel.

During the briefing, Sanchez acknowledged that NITR was being affected by the high commodity prices that have impacted the wider confectionery sector this year. “In the short term, let’s say 2025, we need to protect our range of the core value proposition,” she explained. “We are going to reframe the grammage basically to protect the money in the pocket of the travellers, so our product needs to continue being affordable. So, that’s why we are reframing this product proposition without damaging the value perception.”

Wells also admitted that falling average transaction rates continued to be a problem in travel retail with the average spend per traveller falling to US$129 in the first quarter of 2024, down from US$143 last year. She said NITR’s six identified industry growth drivers– travel retail exclusives, sense of place, experiential retail, personalisation, sustainability and digitalisation–could help address this concerning issue.

On the sustainability front, NITR has a target of reducing its carbon footprint by 50% by 2030. The company continues to implement various initiatives to reduce its environmental impact, including responsible cocoa sourcing and packaging. Its Nestlé Sustainably Sourced range of chocolate products is a testament to this commitment.

Nestlé also continues to support local cocoa-growing communities through initiatives such as implementing eco-friendly agroforestry practices and the multinational’s income accelerator programme for cocoa farmers, which has benefited 30,000 cocoa-farming families in West Africa to date.