Businesses in the UK Confectionery Retail Market (Edexcel A Level Business): Revision Note

Mondelēz International

• Mondelēz owns Cadbury, one of the best-known confectionery businesses in the UK

  • Cadbury’s long heritage gives it strong brand loyalty

• Mondelēz uses this to defend market position in the UK's mature, competitive market

Target markets

• Mondelēz targets a wide mass market, but it also targets specific occasions and segments, such as:

  • Everyday treats (small bars, countlines)

  • Sharing (bags and larger formats)

  • Gifting and seasonal products (especially Easter and Christmas)

Business objectives

• Mondelēz typically aims to protect and grow sales through:

  • Brand strength and availability in supermarkets and convenience stores

  • Product innovation and seasonal ranges to keep demand high

  • Premiumisation where possible, to protect profit margins when costs rise

Recent performance

• In 2024, Mondelēz reported worldwide revenue of $36.4bn

• Mondelēz has been in the UK news for product range decisions, including the reported discontinuation of a dark Toblerone bar in the UK

Mars Wrigley

• Mars is a family-owned multinational with a long history in confectionery

• It is strongly embedded in UK retail with a range of famous brands

Target markets

• Mars targets large mainstream segments, including:

  • Impulse and convenience shoppers (single bars at tills)

  • Sharing occasions (bags and tubs)

  • Family and seasonal buying (Easter eggs and Christmas tubs)

• Business objectives

  • Strengthening its premium position, not just mass market confectionery

  • Expanding its snacking range, which is why Mars has pursued major acquisitions

• Recent performance

  • Mars is privately owned, but in 2024 sales topped $54bn

  • It completed the acquisition of Hotel Chocolat in January 2024, giving it a stronger position in premium chocolate and gifting

  • Mars has also been linked to shrinkflation, changing pack sizes during recent periods of cocoa price inflation

Ferrero

• Ferrero is an Italian family-owned confectionery multinational best known for premium gifting and family brands

• It has steadily expanded internationally and competes strongly in chocolate and seasonal products

Target markets

• Ferrero’s UK target markets are often clearer than some rivals because its products cluster around:

  • Family and child-focused chocolate, such as Kinder

  • Premium gifting, such as Ferrero Rocher

  • Brand extensions, such as Nutella chocolate products

• Business objectives

  • Expanding into new categories and formats while protecting its quality image

  • Growing internationally and strengthening supply chains for key ingredients, especially hazelnuts

• Recent performance

  • Ferrero reported €18.4bn revenue in 2023/2024, an 8.9% increase year-on-year

  • Ferrero has recently been reported in business news linked to hazelnut supply pressures, as it uses 25% of the global supply of hazelnuts

Willie’s Cacao

• Willie’s Cacao is a UK-based independent chocolate business founded by Willie Harcourt-Cooze

• It specialises in single-estate chocolate, meaning cocoa comes from one identifiable farm or region

Target market

• Premium chocolate consumers

• Ethically minded buyers

• Food enthusiasts interested in provenance

Business objectives

• Maintaining high quality rather than high volume

• Educating consumers about cocoa origins

• Sustaining long-term relationships with growers

Performance and challenges

• The brand has strong recognition in premium food retail but faces challenges from:

  • rising cocoa prices

  • limited economies of scale

  • competition from premium ranges launched by larger firms

Montezuma’s

• Montezuma’s is a UK independent chocolatier known for bold flavours and ethical sourcing

• It has grown through a mix of increased retail presence and online sales

Target market

• Consumers looking for premium but accessible chocolate

• Shoppers interested in ethical and sustainable products

• Gifting customers during seasonal periods

Business objectives

• Brand differentiation through flavour innovation

• Maintaining ethical credentials

• Balancing growth with independence

Recent performance and context

• Like many independents, Montezuma’s has had to manage:

  • higher ingredient and energy costs

  • cautious consumer spending

• This makes premium positioning essential to protect profit margins

Divine Chocolate

• Divine Chocolate is distinctive because it is part-owned by cocoa farmers, making it one of the most ethical chocolate brands in the UK

Target market

• Ethically conscious consumers

• Fairtrade supporters

• Shoppers willing to pay more for values-led brands

Business objectives

• Support farmer incomes

• Raise awareness of ethical supply chains

• Compete in the premium chocolate segment without compromising values

Performance and challenges

• While the brand has strong ethical credibility, it faces:

  • intense competition from multinational ethical brands

  • limited marketing budgets