If you’ve ever spent a significant amount of time in continental Europe, you’ll most likely be well-acquainted with Ritter Sport’s extensive range of chocolate products – but in the UK, the brand is still a relative newcomer.
Wildly popular in its native Germany, where it commands around 25% of the 100g chocolate bar market – second only to the mighty Milka, the company has now set its sights firmly on British expansion, a decade on from its first proper foray across the Channel.
Speaking exclusively to Food Manufacture, the confectioner’s UK and Ireland head of sales Christian Boulter lays bare Ritter Sport’s ambitious plans to cement and grow its presence throughout the British Isles.
And while our domestic chocolate market might be a crowded one, Boulter believes the brand has what it takes to cut its own path and carve out a dedicated niche among a nation undeniably passionate about all things chocolate.
How to turn heads and win consumers
As head of sales, Boulter’s main aim for Ritter Sport in the UK is simple – expanding its customer base.
Over the last 10 years the brand has built strong, steady momentum and has now become a well-established presence in the major supermarket retailers.
Its biggest opportunity, says Boulter, lies in increasing household penetration – and he reveals that the firm is aiming to add over one million new UK households each year by pushing more consumers to try what the brand has to offer.
“There’s so much headroom to go with consumers, we’ve got a really good footprint in grocers from a distribution point of view. Our priority is to continue that,” enthuses Boulter.
“We think we’ve got the best quality chocolate on the market, and it’s driving some real incremental value, and consumers are naturally going towards our product as they care more about what’s in their chocolate.”
And it’s this ironclad trust in the quality of its product that Ritter Sport believes is its biggest differentiator in a crowded market.
According to Boulter, the chocolatier’s steady success lies in its uncompromising chocolate quality, sustainable cocoa sourcing, distinctive square format, and unique range of flavours.
He argues that Ritter Sport’s product fulfils a natural consumer demand for premium products that use quality ingredients.
Boulter continues: “The key to us is we’ve got to be true to what makes Ritter Sport different. We offer exceptional quality, a unique flavour group, and I think the distinctive square format plays a part as well.
“We have to be different to what the other guys are doing. The fundamentals of the business are no compromise in any way on quality, a tremendous sustainability ethos right at the top of the business, and really great innovation. We’ve got some terrific flavours out there that aren’t replicated anywhere else.”
Outstripping the competition
You could argue that this focus on quality, acting as the brand’s key differentiator, is beginning to pay dividends in what is undeniably a saturated market. Boulter reveals that Ritter Sport is currently growing at around 37% in value terms, with volume growth now exceeding 20% year on year.
This is in direct contrast to the prevailing economic conditions within the UK block chocolate category, Boulter adds, which is seeing value growth primarily due to the impact of inflation but is experiencing an overall decline in volume sales as customers tighten their belts on more indulgent products such as chocolate.
Even more encouraging for Ritter Sport, it is also seeing small but clear growth in its market share in a nation where it has traditionally had a limited footprint.
“From a block chocolate point of view, our last market share was just over 2%,” says Boulter. “Last year we were at 1.5%, so we’re growing really strongly.
“From a sales point of view, when the category is up about 10% in value, we’re up about 37%, growing nearly four times the market at the minute. We’re one of the few brands actually growing in volume; our volume growth is over 20% year on year, where the category is down about 5%.”
In a bid to build on these strong growth figures, the company is also keen to refocus on convenience channels rather than relying heavily on larger supermarket retailers.
Currently, around 85% of the brand’s sales come from major grocery outlets, but Ritter Sport has identified convenience stores as a key area for expansion.
In continental Europe it has a notable presence in this channel, and Boulter explains that the firm is working to strengthen relationships with wholesale partners to improve distribution in independent retailers.
“If you look at our business at the minute, we’re 85% grocery multiple, so we’re well established in those core supermarkets. Distribution is over 98% across the major retailers, and we have a good footprint on which to grow.
“The convenience channel is something that needs more work, and we’ve got a really strong strategy to build on that. This year we’ve started to re-engage with a small number of strategic wholesale partners to connect better with independent retailers. We’re confident expanding distribution there will drive visibility and penetration.”
Innovation, collaboration and GLP-1s
But it is not just convenience that Ritter Sport is targeting for future growth. Like any food manufacturer, the key will lie in continuing to develop new products.
Logically, Boulter explains that product innovation remains central to the brand, with a pipeline of new flavours and upcoming brand collaborations planned.
The ability to attract new shoppers and build loyalty will revolve around the fairly simple premise of offering products that are not easily replicated by competitors.
“Innovation’s a key strength for Ritter Sport. It’s been our lifeblood and, if you’ve been to Germany or France, you’ll see probably a full bay of 30 or 40 SKUs,” Boulter says.
“Having those flavours and unique innovations is always going to be part of our life, and that’s why people love the brand. We’ve also got some extremely exciting collaborations. We know collaborations are extremely popular at the minute – people love to see two great brands come together.”
NPD and collaborations are, of course, strong ways to grow a brand’s appeal and popularity, but Ritter Sport is also focusing on the premium chocolate category, which has become a greater priority for consumers with the advent of GLP-1s.
With a growing proportion of the UK population set to take up weight-loss medication, Ritter Sport believes that chocolate consumption occasions will diminish, but that consumers will favour more premium products when they do make a purchase.
By positioning itself as a premium alternative to more mainstream rivals, Boulter adds, Ritter Sport can establish itself within a new segment of the market.
He continues: “When we speak to consumers about this, they say they’re eating less chocolate, which means when they eat chocolate, they’re going to make sure it’s the best chocolate they can find, and that will only put us in a strong position.
“Some of the other legacy brands are probably going to suffer most because of the volume of product they sell. People are now realising that if they’re eating less chocolate, they want to make it the best chocolate they’ve got, so we think we’re in a really strong place.”
So, all things considered, it’s looking rather peachy for the German upstart and, although its market share remains small, it is clearly doing something right in the UK market. Boulter believes that Ritter Sport has the potential to truly disrupt the British block chocolate category.
With the dawn of GLP-1s thrown into the mix, as well as a complex economic landscape to boot, the segment is in something of a state of flux at the minute, and perhaps a shake-up from a true outsider is exactly what the category needs to feel refreshed.
One thing’s for certain – the impact of GLP-1s on the market will make for a fascinating watch in the months and years ahead, and brands like Ritter Sport could put a real spanner in the works for the big players if it plays its cards right.
