From the Editor
‘Building food into the #1 most purchased category in travel retail’: that’s the grand ambition expressed by Nestlé International Travel Retail (NITR) to leverage the untapped potential of the food category.
It was an ambition outlined initially in a Moodie Davitt Spotlight Series eZine in 2021 – in these pages we update readers on the progress of that journey and examine how the company continues to invest in taking food centre stage and reigniting travel retail growth.
The latest m1nd-set data revealed that in H1 2023 food increased its percentage of buyers from 30% to 35%. This places food just behind beauty at 38%, making it the fastest growing category in global travel retail.
To achieve this goal, NITR has adopted a new way of looking at the food category. This means not simply focusing on the traditional and highly attractive confectionery sector, but also exploiting opportunities in other categories such as coffee, health supplements and local foods, alongside global food brands not widely present in travel retail.
The strategy is built around the VERSE growth model, the acronym representing the five pillars of Value, Engagement, Regeneration, Sense of Place and Execution. Each one has a vital role to play in ensuring that food is the most-purchased category by 2030, if not before.
We speak to NITR General Manager Stewart Dryburgh who gives us a timely update on the strategy’s implementation and impact. He also addresses the challenges facing Nestlé’s transition from its traditional focus on confectionery in travel retail to pioneering food as a broader category.
We look at how the different drivers of the VERSE model have driven this growth. We shine a particular spotlight on the Execution pillar with the exclusive launch of the Food #1 Store Concept. Here the brand owner plans to reshape the food travel retail environment and change industry thinking on the role food can play in optimising the customer experience and sales.
Portland Design Director Lewis Allen discusses the ground-breaking project and everything from initial inspiration, layout, offer and experience to how the companies plan to transform the shop floor into what he coins “the antidote to apathy”.
We hope you enjoy this special edition.
The Moodie Davitt Report Brands Director Hannah Tan-Gillies
Through its Food #1 strategy, NITR is reshaping how the travel retail industry views and perceive food and confectionery
Spotlight Series – September 2023