Shoppers spent about $4 billion on candy for loved ones in 2022, and spending is projected to increase in 2023. Here’s how Godiva and Ferrero are working to make sure people choose their confections.
According to the National Confectioners Association, 92% of Americans celebrate Valentine’s Day with chocolate and candy. According to IRI statistics cited by the trade group, this holiday accounts for about $4 billion in sales, and the sector expects sales to grow 5% this year from 2022.
Starting in mid-January, store shelves are full of decorative heart-shaped boxes of chocolates. According to Instacart, chocolates are the most likely item to be purchased through the grocery delivery platform on Valentine’s Day. Several manufacturers, ranging from those that produce everyday candy favorites such as Hershey and Mars to those that produce high-end chocolate gift boxes, capitalize on the holiday,
So how do high-end confectioners cut through the sea of choice on Valentine’s Day?
Mark Wakefield, senior vice president of marketing at Ferrero, said that they usually prepare for Valentine’s Day 15 months in advance, meaning they are already looking at ideas for 2024.
Ferrero has a large portfolio of recognizable brands that are perfect for Valentine’s Day. Ferrero Rocher candy boxes have transparent plastic through which consumers can see the iconic pieces wrapped in gold foil. And Fannie May chocolates have a trademarked red bow and brand inscription.
“Packaging is critical,” Wakefield said. “It’s the queen, it’s critical. It has to be on the shelf, and it has to work.”
Packaging is one of the factors that helped Ferrero increase its market share for Valentine’s Day. Wakefield said the company’s premium chocolate brands – Ferrero Rocher and Fannie May – sold $57 million worth of chocolates during Valentine’s Day 2022. According to him, this represents a 17% increase compared to 2021 figures. This year, some retailers have increased the amount of Ferrero chocolates they sell by almost a third.
Godiva, which accounts for 13% of annual North American sales on Valentine’s Day each year, has more than a century of history and name recognition to drive sales, according to CEO Nurtak Afridi. But thanks to a diversified retail strategy – taking the brand from boutiques to retailers ranging from in-house stores to big box stores – there are more places where the brand needs to garner attention. According to Afridi, Godiva has increased its distribution points by 26% over the past year.
“We believe that not only our beautiful boxes, but also the Godiva content is very appealing to our customers because of their attractiveness, their high premium quality,” Afridi said. “You want to make an impression. You want to share the love.”
Ferrero does a lot of research on what consumers are looking for on Valentine’s Day. Part of this is based on the emotions consumers hope to convey with their Valentine’s Day sweets. But it’s also based on the types of candy consumers are looking for.
“When you give someone a gift on Valentine’s Day, you want to give them something that you think they will like. And that’s where we have to stay with universal flavor,” Wakefield said.
He said people in the US tend to like the flavor of nuts, making Ferrero Rochers an easy choice. Fannie May’s Pixies, which are caramel-covered pecans covered in chocolate, also fit the bill.
At Godiva, Afridi said that six of the top 10 chocolate flavors in any season are classic flavors – several varieties of dark, milk and white chocolate will appear in any package at any time of year.
But a variety of flavors and new ideas also attract consumers.
Wakefield said Ferrero Rocher has a variety of boxes that mix hazelnut chocolate balls in gold packaging with white creamy Rafaello balls with almond shapes and dark chocolate Rondnoir candies. Fannie May, which also has more than a century of confectionery history, offers a wide range of premium chocolates in a variety of boxes.
Godiva’s various boxes include seasonal favorites – people tend to want berry flavors for Valentine’s Day, while they are more interested in peppermint for Christmas, Afridi said – with trendy new chocolates developed by the company’s top chocolate makers. Some of these new products have edible glitter and different colors.
Another thing Godiva and Ferrero are doing to build brand loyalty is creating Valentine’s Day confections for a variety of relationships. While there are romantic partners for whom you can buy chocolate, there are many other loved ones you can give chocolate to.
The slogan of Ferrero Rocher’s Valentine’s Day advertising campaign: “Celebrate the moment”. Wakefield said that Ferrero aims to capitalize on all the moments people experience and can emphasize this with chocolate. But these moments, he said, are not all true romance. They are moments between friends, celebrating “Valentine’s Day” between women, and moments spent last weekend watching the Super Bowl.
Godiva has recently expanded its portfolio and availability.
“We have different types of gift portfolios for different household incomes, for different purposes, and for different ways of expressing your emotions,” Afridi said.
This means the company aims to make all kinds of choices available to a variety of loved ones on Valentine’s Day, she said, including those who want to treat themselves.
Although Valentine’s Day is a huge event for Godiva, Afridi said that what the company tries to do at this time of year is really no different than any other time of year.
“The goal of every day, not just during Valentine’s Day, but every day, is to delight our consumers and deliver on the Godiva promise. The Godiva miracle. Eat high quality ingredients, high quality chocolate and the diverse flavors that are the Godiva trademark,” said Afridi.
Ferrero has seen financial growth and market share gains every year recently. Wakefield said that higher chocolate sales and the opportunity to increase revenue are signs of a successful Valentine’s Day season. But the real marker of success comes today.
“We’re very pleased when we see empty shelves on February 14, because that means we did it right,” Wakefield said.