Key findings

Mars takes over the Hotel Chocolate retail chain

Leveraging the significant opportunity offered by the premium segment, Mars has announced the acquisition of Hotel Chocolat. The move is expected to enable Hotel Chocolat to expand its presence and open 20 more stores by the end of 2025. The player is focusing on a new concept of bricks-and-mortar stores that will help highlight the wide variety of its brand offerings, from chocolate confectionery to hot drinks.

“Shrinkflation” to prevent price rises

“Shrinkflation” has been seen in snacks in France, with players reducing their pack sizes in order to maintain their profit levels without raising their prices, eg some brands of ice cream switching from 1-litre tubs to 900ml tubs. Another strategy is so-called “cheapflation”, with product prices staying the same, but ingredients changed for cheaper alternatives.

Discounters and private label moving forward in lockstep

The discounters distribution channel was one of the major winners during the recent cost-of-living crisis across much of Western Europe, increasing its share of retail value sales to almost 21% in 2024. Consumers appreciate the low prices available in such outlets, as well as their extensive range of private label products.

HFSS driving reformulations

The HFSS regulation, which took effect in the UK in October 2022, has limited the in-store and online visibility of products that are high in fat, sugar and salt. This is placing further pressure on the performance of products like savoury snacks or confectionery that used to be widely positioned in prominent store locations, such as at points of sale. When possible, manufacturers are therefore reformulating their products to make them HFSS-compliant.