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Nestlé enters traditional trade channels in Singapore with DKSH

By Oliver Nieburg+

Last updated on 04-Sep-2014 at 14:38 GMT2014-09-04T14:38:46Z

Nestlé hopes to gain on market leader Ferrero by expanding distribution in growing Singaporean market
Nestlé hopes to gain on market leader Ferrero by expanding distribution in growing Singaporean market

Nestlé has extended its partnership with expansion services firm DKSH to bring confectionery brands such as Kit Kat, Milo Confectionery and Uncle Toby’s to traditional trade channels in Singapore.

DKSH already provides Nestlé sales and marketing support in Thailand, Vietnam and New Zealand. The partnership has now been expanded to cover Singapore’s traditional trade channel.

Fast growing channels

“This is an opportunity to increase accessibility and availability of their products in these fast growing channels,” said Lai Ming Kong, general manager of consumer goods for DKSH Singapore.

Last year, DKSH announced a deal to provide marketing, sales, merchandising, distribution, logistics, and back office support to Lindt in the Singaporean market.

DKSH also has market expansion partnerships with other confectioners in the region. In Burma, it has a deal with Chupa Chups maker Perfetti Van Melle and holds a partnership with Hershey in Malaysia.

Singapore’s chocolate market

Ferrero is the leading chocolate confectionery manufacturer in Singapore with a 25% value share in 2013, according to Euromonitor International. Ferrero dominates due to the strength of the Ferrero Rocher, Kinder Bueno and Kinder Joy brands.

Euromonitor expects a constant value compound annual growth rate (CAGR) in Singapore’s chocolate market of 3% over the next five years, but notes that consumers are becoming more health-conscious.

Nestlé entered the Singaporean market in 1912 when it began trading condensed milk. It now sells confectionery brands such as Kit Kat, Crunch and After Eight.

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