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On Your Radar > Recession effects

Recession effects

Consumers are reigning in spending as recession bites into grocery budgets. The big questions are: Will confectionery be the first items knocked off cost-conscious shoppers’ lists? Or will cheap, edible treats offer comfort when more expensive luxury goods are out of reach?

AAK's speciality strategy shows recession resilience

18-Feb-2010 - Cost savings and a strategy that fits with chocolate eating habits in the recession have meant for an acceptable full year for AAK, topped off with an especially good Q4.

Slump in sales for Swiss chocolatiers in 2009

15-Feb-2010 - 2009 proved a challenging year for the Swiss chocolate industry with manufacturers recording losses for the first time in six years, reports industry body Chocosuisse.

Dispatches from Pro Sweets

Ecomec claims hike in demand for used confectionery equipment

04-Feb-2010 - The second hand confectionery equipment market is buoyant, with strong demand noted in the past 12 months, reports used machinery supplier Ecomec, who added that lack of access to credit within the industry is a predominant factor for the sales hike.

Lindt expects input cost pressures to continue

22-Jan-2010 - The drop in demand for premium products in Europe impacted sales for Swiss chocolate maker Lindt & Sprüngli last year and the company expects pressure on margins to continue due to higher input costs.

Callebaut confident in face of flat chocolate market

13-Jan-2010 - The worst of the global economic crisis on chocolate is over but global market volumes will remain flat throughout 2010, predicts Barry Callebaut – which itself is expecting to outperform the market.

Volume sales of UK chocolate confectionery hit, report

21-Dec-2009 - Brands such as Kit Kat and Wispa are performing well but new data shows the UK chocolate confectionery market appears to be taking a hit from the economic downturn

Barry Callebaut profits grow as chocolate market shrinks

13-Nov-2009 - Chocolate maker Barry Callebaut has reported increased profits and sales volumes for the full 2008/09 fiscal year, despite shrinking global chocolate consumption.

Nostalgia boosts UK food market growth

16-Oct-2009 - Nostalgic and ‘retro’ foods have helped drive continued sales value growth in the UK food and beverage market even as the country entered recession, according to a new report from Leatherhead Food Research.

Lower phosphate and potash prices slash Cargill’s Q1 earnings

14-Oct-2009 - Cargill has reported a 65 percent drop in earnings for the first quarter of fiscal 2010 from the same period last year, partly due to the company’s investment in phosphate and potash suppliers The Mosaic Company.

Brits’ love of chocolate feeds sales growth

09-Oct-2009 - British people spend more money on chocolate than any other Europeans – and sales continue to grow, according to new figures from Mintel.

Recession not driving ethical spending underground

06-Oct-2009 - Tighter purses are not turning consumers away from ethical shopping with interest in all things sustainable or humane thriving despite the recession, according to market researcher, Packaged Facts.

Chocolate sales follow suppliers to Eastern Europe, says report

04-Sep-2009 - Supported by supplier migration, Eastern Europe has gained ground in the global chocolate market as health concerns eat into the Western European share, according to new research.

Cadbury plays down chocolate supply fears

03-Sep-2009 - Cadbury has insisted that potential strike action by its workforce will not affect chocolate supply, despite claims made by union officials.

Chocolate boom helps Cadbury beat market expectations

30-Jul-2009 - Buoyed by strong second quarter chocolate sales, Cadbury has beaten market expectations for the first half of the year.

Ingredients demand is stable, says Tate & Lyle

23-Jul-2009 - Food and beverage ingredient demand has been ‘stable’ in Tate & Lyle’s Q1, says the company in its interim statement, and the year so far has exceeded expectations.

Mars taps into nostalgia trend with Treets return

22-Jul-2009 - Mars is bringing back the Treets chocolate snack in the UK to capitalise on the growing popularity of old classics.

Healthy chocolate and candy products to beat the recession

29-Jun-2009 - Confectionery product ranges featuring new flavours, flexibility and variety will help manufacturers grow consumer purchases over the next five years despite economic uncertainty, according to the National Confectioners Association's (NCA) Confectionery Industry Trend Report 2009.

Dispatches from IFT

Take advantage of recession, says former White House director

12-Jun-2009 - Food firms can benefit from the downturn by taking advantage of lower advertising and input rates and positioning for recovery, said economic expert at IFT.

Cadbury announces plant closure deal in operations shake up

28-May-2009 - Cadbury says it has reached an agreement with some of its workforce to close a Barcelona-based gum factory as part of an operational shake up of its operations.

Mars' confidence for confectionery in the recession

30-Apr-2009 - Confectioners are expected to benefit as shoppers change their behaviour in tough economic times and cut back on necessities for a little indulgence, according to consumer trends research from Mars Chocolate UK.

Mars turns recession trends to its advantage

28-Apr-2009 - Mars is poised for continued growth this year, according to its UK head, as the long-held belief that chocolate is relatively recession proof still rings true in the current climate.

News in brief

Recession-hit consumer turns to chocolate, more evidence

10-Mar-2009 - Further evidence to suggest that when the going gets tough, the tough eat chocolate with upmarket London department store Selfridges claiming chocolate sales are up a colossal 80 per cent on last year's figures.

Chocolate makers witness price dip for cocoa

03-Mar-2009 - Marginal relief for cocoa inputs is in view, with costs for this soft commodity dipping after the soaring 24-year price highs registered last month.

News in brief

Recession-hit consumers turn to Cadbury's chocolate

26-Feb-2009 - Evidence that people do turn to chocolate during an economic downturn as number one UK chocolate maker Cadbury reports worldwide global chocolate sales were up 6 per cent in 2008, and the group's British chocolate market share rose by 0.5 percentage points to nearly 30 per cent.

Hopes for recovery as French chocolate market dips

15-Jan-2009 - Growth in the French chocolate confectionery market fell sharply in 2008 but it is forecast to recover this year, helped by sales of premium products, according to Snapshots, a market reports company.

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