ENGL 419 Chapter Notes -Aeration
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Montreaux Chocolate Case Study
Thursday, September 18, 2014
•Apollo has 4 branches, one of which is CFG (Confectionary Food Group).
•Montreaux wants to have a relationship with Apollo So it can break into the US market.
oCFG bought the rights to Montreaux and Montreaux wants to use this in order to
accomplish their market breakthrough.
oCFG pulled in $19.1 billion in revenue in 2011, about 1/3 of Apollo's total net
•David Raymond is head of Montreaux Chocolate USA, but our focus Is on Andrea -
•On December 10, Andrea is going to present how the American launch is going to take
•David wants Montreaux Chocolate to be nationwide and pull in abut .6% market share;
be in the top 25 sellers of chocolate.
•Andrea has a few things she needs to focus on to achieve her goals:
Summary of confectionary market in the US
•Premium chocolate breaking into mass market
•Dark chocolate's flavanols antioxidant benefits highly regarded
•Lower calorie options such as aeration and low-cap booming
•Bigger, economic, sharable pouches more popular
•Shareability, portion control, saving for later clearly labeled
•Increased prices due to increased commodity costs
•94.4% of the chocolate market is made up of 4 of the 7 segments:
1. Bar/bag/box > 3.5 oz.
3. Bar/bag/box < 3.5 oz.
4. Snack size
•Confectionary market $37B growth of 2.8% from 2007-2011
•Chocolate market $17B growth of 1.9% since 2010
•Lancaster leads while Fisher's is a good market competitor. Apollo is in confectionary but
not in chocolate per se, but seeing as chocolate is HALF The confectionary market, Apollo
wants to get up to Fisher's level.
•92% of confectionary-consuming adults in 2012 ate chocolate
•8 pieces per month of chocolate was the average consumption - needs clarification
•Females are 94% likely to eat chocolate vs. males at 90%
•45-64 age range is more likely to eat chocolate
•Higher income households go for boxed usually
•As one ages, the likelihood of purchasing dark chocolate increases
•Sale chocolate, especially premium, will attract older consumers
•Women buy chocolate as a reward for themselves
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