On paper launching a chocolate hazelnut spread is a terrible idea.
If you look at the product in a straightforward, linear way, it probably doesn’t add up.
For example. Here's some reasons why we shouldn't do it:
❌ Just under 60% of sales in the category go through on one brand - gulp.
❌ The products on shelf are really cheap. The average price in the chocolate spreads category is just 66p per 100g.
❌Chocolate pricing is (still) sky high - it’s up 300% vs 2021. Not going to help our pricing, especially given we invest in an ethical source via Tony's Open Chain.
❌ Hazelnuts cost £8180 per MT - that’s 510% more than peanuts. To put lots of nuts in to make it nutritionally better, it cost lots more.
❌ A natural product, without palm oil, will naturally separate (like our nut butters) - you could argue consumers won't accept it.
However, there's one main driver behind why we are doing it:
The market leader only contains 13% nuts and palm oil is the second ingredient, after sugar which is number one.
Consumers deserve better.
The problem is so clear.
And in this instance, we're hoping rather than work within the constraints of the category, we'll break some of the rules to cut through.
Wish us luck!
If you look at the product in a straightforward, linear way, it probably doesn’t add up.
For example. Here's some reasons why we shouldn't do it:
❌ Just under 60% of sales in the category go through on one brand - gulp.
❌ The products on shelf are really cheap. The average price in the chocolate spreads category is just 66p per 100g.
❌Chocolate pricing is (still) sky high - it’s up 300% vs 2021. Not going to help our pricing, especially given we invest in an ethical source via Tony's Open Chain.
❌ Hazelnuts cost £8180 per MT - that’s 510% more than peanuts. To put lots of nuts in to make it nutritionally better, it cost lots more.
❌ A natural product, without palm oil, will naturally separate (like our nut butters) - you could argue consumers won't accept it.
However, there's one main driver behind why we are doing it:
The market leader only contains 13% nuts and palm oil is the second ingredient, after sugar which is number one.
Consumers deserve better.
The problem is so clear.
And in this instance, we're hoping rather than work within the constraints of the category, we'll break some of the rules to cut through.
Wish us luck!
