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Montreaux Usa

In: Business and Management

Submitted By bobdyl
Words 974
Pages 4
Background With over $35 billion in revenues in 2011 and a growth rate of 2.8%, the confectionery industry in the U.S was an attractive market, and chocolate, comprising almost half the market at $17.6 billion, held some promise for new entrants. Apollo Foods, a California-based, global confectionery producer, acquired the well-known Swiss Montreaux Chocolate Company with the intention to expand its number-two position in the global confectionery business by launching a new product in the U.S. market. This venture would become Montreaux Chocolate USA, with new product development headed by Andrea Torres. While ambitious, Apollo aimed to achieve national distribution, $115 million in annual sales, and a 0.6% market share with their new product by 2015. In order to achieve their objectives, Apollo would have to gain greater penetration into the chocolate industry, a diverse and mature global industry. One of the greatest distinctions within the industry was between dark and milk chocolate. Globally, darker chocolates with higher concentrations of cocoa were perceived to have greater health benefits, and the U.S market was especially honing in on fitness and health in their consumption habits. The U.S. market was fragmented into multiple segments, with the largest being chocolates sold in bars/bags/boxes greater than 3.5oz at $7.149 billion in revenue in 2011. Moreover, convenience plays a huge role in purchasing decisions, as mass market chocolate dominates with 80% total market sales over premium, and 45% of chocolate sales are through grocery, drug, convenience stores, and Walmart. With U.S. trends pushing for healthier chocolate, more portion-conscious packaging and labeling, and increases in pricing, it was clear that Torres had to develop a product tailored to the U.S. marketplace.

Market Analysis Aside from being very health conscientious, the U.S.

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