Easter: adults consume more chocolate than children – 02/04/2023 – Market

Consumption of chocolates in Brazil has proven to be resilient to any economic crisis and goes well beyond Easter. In 2022, according to a survey carried out by the NIQ consultancy (formerly Nielsen), while food sales as a whole fell by 2.5% in volume, chocolates increased by 4.7%.

What has been driving this increase are filled chocolate bars (“candy bar”, with emphasis on brands with more competitive prices, such as Trento of 32 grams, from Rio Grande do Sul Peccin) and chocolate-covered wafer biscuits (such as Bis, da Lacta) —segments that registered an increase of 22% and 12% in volume, respectively.

On the other hand, other segments traditionally aimed at children, such as chocolate eggs (such as Kinder Ovo, by Ferrero) and shaped chocolates (such as Tortuguita, by Arcor), have been registering a decline —recessions of 10% and 6% , in that order, by volume.

“The numbers indicate that adult consumption is pulling the high in sales of chocolate, more than children”, says the director of analytical service at NIQ, Domenico Tremaroli Filho. The Executive recalls that the chocolate category is indulgent, that is, it is not in the basic basket and is considered a “reward” for the consumer.

“But, in times of restricted spending, the way out for the Brazilian has been to seek the most economical options”, he says.

Logic holds at Easter. According to NIQ, the traditional Easter eggs represent only 3.5% of the volume of chocolates consumed at the time and 10% of sales in value.

“What we see at Easter is an increase in the sale of giftable chocolates, such as bonbons and tablets, with less outlay”, says Tremaroli. “Considering that, in Brazil, 70% of households cannot afford the monthly cost of the basic basket, it is essential to offer a product whose price fits in the pocket”, citing a survey by NIQ.

Last year, Easter was celebrated on April 17th. In the month, the sale of chocolates (without considering the traditional Easter eggs) advanced to 50.7 tons (compared to 24.5 tons in March). In the same period, the average price per kilo fell from R$53.10 to R$46.50. “This means that cheaper segments are selling more in the period”, says Tremaroli.

Billing as a whole, however, takes a leap at Easter. In April of last year alone, retailers sold R$2.36 billion in chocolate, up 82% over the R$1.30 billion in March, according to NIQ data.

The seasonality of chocolate consumption is stronger in artisanal products. At Di Siena in São Paulo, for example, 70% of the year’s sales volume is linked to Easter. The company predicts an increase of between 5% and 10% in volume in 2023, without the restrictions of the pandemic.

After Easter and Christmas, the third main date for Di Siena is the Jewish New Year, usually celebrated in September.

“Mother’s Day, Valentine’s Day, Women’s Day and Father’s Day follow”, says Fernando Parisan, general director of Di Siena. According to the executive, the worst month is January. “After the holidays, the combination of heat and holidays makes the public look for other consumption options, and the movement in the store drops a lot.”

Created in 1988 by the Marconi family, with a store and factory in the neighborhood of Perdizes, west of São Paulo, Di Siena launched its virtual store five years ago. A second unit was inaugurated last year in Tatuapé, on the east side of the capital.

“But with the cold, the movement goes well, especially in mountain towns, such as Monte Verde (MG), Itatiaia (RJ) and Campos do Jordão (SP), where we have representatives”, he says.

The Executive claims that Di Siena’s chocolate, made with cocoa from the Belgian manufacturer Callebaut, does not use hydrogenated fat, like most commercial brands —and is cheaper.

“A 200-gram Easter egg from Di Siena costs R$27, while brands like Nestlé sell for R$45”, says Parisan, who considers other crafts such as Lugano and Munik as its main competitors, in addition to the popular Cacau Show.

Throughout the year, the so-called “institutional sales”, to companies, are Di Siena’s strong point, representing around 35% of the year’s revenue. The manufacturer has a portfolio of around 400 clients, including hotels, law firms, pharmaceutical industries, hospitals and schools.

Who also discovered the strength of consumption by companies was Lacta, a brand of the multinational Mondelez. “We have just opened a business to business channel in Lacta’s e-commerce to serve those companies that give gifts to customers and employees”, says Fabiola Menezes, marketing director for chocolates at Mondelez Brasil.

“Last year, many companies had already approached us to anticipate purchases, seeking to guarantee products of the same standard for all their audiences.”

According to her, in addition to Easter, other important seasonal moments for the chocolates category are Mother’s Day, Valentine’s Day and Christmas. “It has a product for the whole year, in different formats, for all budgets”, she says.

Alongside snacks, which cost less, institutional sales have helped chocolate consumption to take off year after year in the country. According to data from the international consultancy Euromonitor, in Brazil, the sale of chocolates grew 18% to R$ 22 billion last year. Compared to 2018, the leap in revenue was 57% (nominal values, without discounting inflation).

“Other categories of products considered indulgent, such as biscuits, for example, do not have the same performance as that of chocolates”, says Marconi, from NIQ. The sale of biscuits fell 3.6% in volume, while that of chocolates grew 9%. “The chocolates have more sales appeal, precisely because they have giftable versions”, he says.

At Easter time, gift items go up less in price than the traditional chocolate egg. This is what a preliminary survey carried out by Fipe (Fundação Instituto de Pesquisas Econômicas) shows. In the Easter basket, chocolate eggs were 23.68% more expensive this year, while the price of bonbons rose 14.47% and chocolate bars, 8.57%.

According to Fipe, in addition to high seasonal demand, production costs (which involve inputs such as packaging and raw materials such as cocoa) have been putting pressure on the final price since last year.

Manufacturer is already preparing for Easter 2024

Lacta has been registering the diversification in Easter purchases far beyond chocolate eggs. “The sale of boxes of varieties grew 25% in 2022 compared to the previous year”, says Fabiola Menezes, from Mondelez.

“Throughout the year, people buy the boxes to share, but at Easter they also buy them as gifts, after all, Easter is the third most important date for family celebrations in Brazil, after Christmas and Mother’s Day”, he says. .

With an eye on the trend, the company launched new boxes of chocolates, such as the Oreo cookie, another Mondelez brand.

“In Easter week, the Brazilian consumes an average of 300 grams of chocolate, five times more than the traditional 60 grams that he consumes per week for the rest of the year”, says Fabiola.

The executive points out that the Lacta brand, created in 1912, was the one that created the first vine of Easter eggs, in the 1980s, an invention that would become traditional in supermarkets across the country.

“During the Easter period, we hired 1,500 promoters to work at the main points of sale throughout the country”, he says. The company starts preparing for the date a year and a half before.

“Now, for example, we are in full preparation for Easter 2024”, he says. “We start by studying consumer behavior to understand what kind of product he will want to see on the shelves.”

For Easter this year, Lacta hired 530 people for the factory in Curitiba, where egg production began in October last year and lasted until mid-February this year. The chocolate egg production process is completely different from that of bars: it requires other machines, packaging and even logistics.

“From end to end, from the factory to the distribution center, all the Easter egg logistics are air-conditioned”, says Fabiola. The same treatment started to be offered this year to products sold from the brand’s ecommerce, which should respond, along with other partner sites, for 20% of sales in the period. “The egg goes in special packaging, with plastic protection and a refrigerated plate”, says Fabiola.

This year, the company created an official page on Market Livre and oiled the logistics of Easter eggs.

“We make the delivery in 48 hours in the capitals and in up to five working days in the other cities”, says Fabiola.