Hershey’s, Smucker’s, Kraft, and Nutella Want To Advertise On Your Toast

If Hershey’s, Smucker’s, Kraft And Nutella could advertise on your toast, they would. Here’s why…

The US “Spreads” category, which includes peanut butter, marmalade, and the like, is a $3.4 billion category. There is one segment of this food category that is on fire, that’s the Chocolate Spreads.


This category has been dominated by Nutella with something like a 70% market share in the US. According to Euromonitor the Chocolate Spreads market alone is worth about $300 million a year. No doubt that’s why Hershey’s, Smucker’s and Kraft have set their sights on this category.

Hershey’s entered this market at the end of last year with; Chocolate, Chocolate with Almond, and Chocolate with Hazelnut spreads.

Hershey's Chocolate Spread Advertising 2014
Hershey’s CEO, John Bilberry said he is “personally very excited about” the company’s entrance into spreads category.

Smucker’s entered with Jif-Hazelnut and is gaining market share quickly. Kraft has brought out a couple of different flavors under the Philadelphia brand.

KraftAdvertisingChocolateSpread2014

 

 

So we took a look at theadvertising in the trade magazines in C-Store, Foodservice and Grocery Markets to see what the advertising activity looks like in this category.

We can see that this category is blowing up, you see almost triple the ad pages from the previous 12 month period.

Ferrero keeps it’s 22 pages in play in Foodservice as Kraft and Smucker’s jump in with 19 and 13.67 pages in the last 12 months.

Competitive Ad Tracking Reports

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And in the Grocery market Ferrero bolsters its share of voice with 14 new ad pages. And Hershey’s spreads a mere 6 pages into this media.

Competitive Advertising, Nutella, Hersheys, Kraft
We see this as just the beginning of an advertising and marketing battle that is important to watch. Right now it’s one of the fastest growing categories in the food business.

Hershey’s is said to have “big advertising plans”. Perhaps most of the efforts will be focused on the consumer markets.

But no matter what, Hershey’s is the 800 pound gorilla in the US, it sells “40% of the dark chocolate and controls 43% of chocolate and confectionary sales”, according to Roberto Ferdman in a qz.com article.

We are going to keep an eye on this advertising category. Can you predict what will happen here? Leave a comment and tell us what you think this will look like in the next 12 months.

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