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Australia - Confectionery 0125 - 0710 - 2018

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MarketLine Industry Profile

Confectionery in AustraliaFebruary 2019

Reference Code: 0125-0710

Publication Date: February 2019

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EXECUTIVE SUMMARYMarket valueThe Australian confectionery market grew by 3.7% in 2018 to reach a value of $3,450.8 million.

Market value forecastIn 2023, the Australian confectionery market is forecast to have a value of $4,186.4 million, an increase of 21.3% since 2018.

Market volumeThe Australian confectionery market grew by 2.1% in 2018 to reach a volume of 224 million kilograms.

Market volume forecastIn 2023, the Australian confectionery market is forecast to have a volume of 247.4 million kilograms, an increase of 10.4% since 2018.

Category segmentationChocolate is the largest segment of the confectionery market in Australia, accounting for 70.4% of the market's total value.

Geography segmentationAustralia accounts for 8.3% of the Asia-Pacific confectionery market value.

Market shareMondelez International, Inc is the leading player in the Australian confectionery market, generating a 33.4% share of the market's value.

Market rivalryThe Australian confectionery market experienced moderate growth during the review period (2014-2018). Players in this market are often quite diversified, but generally tend to depend heavily on the food and beverage market. This, and the low cost of switching for end consumers, drives rivalry, although the latter can be mitigated to some extent by strong branding. Overall, the degree of rivalry in this market is assessed to be moderate.



TABLE OF CONTENTSExecutive Summary......................................................................................................................................................... 2

Market value ................................................................................................................................................................ 2

Market value forecast ..................................................................................................................................................2

Market volume ............................................................................................................................................................. 2

Market volume forecast ...............................................................................................................................................2

Category segmentation ...............................................................................................................................................2

Geography segmentation ............................................................................................................................................2

Market share................................................................................................................................................................ 2

Market rivalry ............................................................................................................................................................... 2

Market Overview.............................................................................................................................................................. 7

Market definition .......................................................................................................................................................... 7

Market analysis............................................................................................................................................................ 7

Market Data ..................................................................................................................................................................... 9

Market value ................................................................................................................................................................ 9

Market volume ........................................................................................................................................................... 10

Market Segmentation ....................................................................................................................................................11

Category segmentation .............................................................................................................................................11

Geography segmentation ..........................................................................................................................................12

Market share.............................................................................................................................................................. 13

Market distribution .....................................................................................................................................................14

Market Outlook .............................................................................................................................................................. 15

Market value forecast ................................................................................................................................................15

Market volume forecast .............................................................................................................................................16

Five Forces Analysis .....................................................................................................................................................17

Summary ................................................................................................................................................................... 17

Buyer power .............................................................................................................................................................. 18

Supplier power........................................................................................................................................................... 19

New entrants ............................................................................................................................................................. 20

Threat of substitutes ..................................................................................................................................................21

Degree of rivalry ........................................................................................................................................................ 22

Leading Companies....................................................................................................................................................... 23



Chocoladefabriken Lindt & Sprungli AG ....................................................................................................................23

Mars, Incorporated ....................................................................................................................................................26

Mondelez International, Inc. ......................................................................................................................................28

Nestle SA................................................................................................................................................................... 32

Macroeconomic Indicators.............................................................................................................................................36

Country data .............................................................................................................................................................. 36

Methodology .................................................................................................................................................................. 38

Industry associations .................................................................................................................................................39

Related MarketLine research ....................................................................................................................................39

Appendix........................................................................................................................................................................ 40

About MarketLine ......................................................................................................................................................40



LIST OF TABLESTable 1: Australia confectionery market value: $ million, 2014–18 .................................................................................9

Table 2: Australia confectionery market volume: million kilograms, 2014–18 ...............................................................10

Table 3: Australia confectionery market category segmentation: $ million, 2018..........................................................11

Table 4: Australia confectionery market geography segmentation: $ million, 2018 ......................................................12

Table 5: Australia confectionery market share: % share, by value, 2018......................................................................13

Table 6: Australia confectionery market distribution: % share, by value, 2018 .............................................................14

Table 7: Australia confectionery market value forecast: $ million, 2018–23..................................................................15

Table 8: Australia confectionery market volume forecast: million kilograms, 2018–23 .................................................16

Table 9: Chocoladefabriken Lindt & Sprungli AG: key facts..........................................................................................23

Table 10: Chocoladefabriken Lindt & Sprungli AG: key financials ($) ...........................................................................23

Table 11: Chocoladefabriken Lindt & Sprungli AG: key financials (CHF)......................................................................24

Table 12: Chocoladefabriken Lindt & Sprungli AG: key financial ratios ........................................................................24

Table 13: Mars, Incorporated: key facts ........................................................................................................................26

Table 14: Mondelez International, Inc.: key facts ..........................................................................................................28

Table 15: Mondelez International, Inc.: key financials ($) .............................................................................................30

Table 16: Mondelez International, Inc.: key financial ratios...........................................................................................30

Table 17: Nestle SA: key facts ......................................................................................................................................32

Table 18: Nestle SA: key financials ($)..........................................................................................................................33

Table 19: Nestle SA: key financials (CHF) ....................................................................................................................33

Table 20: Nestle SA: key financial ratios .......................................................................................................................34

Table 21: Australia size of population (million), 2014–18 ..............................................................................................36

Table 22: Australia gdp (constant 2005 prices, $ billion), 2014–18...............................................................................36

Table 23: Australia gdp (current prices, $ billion), 2014–18 ..........................................................................................36

Table 24: Australia inflation, 2014–18 ...........................................................................................................................37

Table 25: Australia consumer price index (absolute), 2014–18 ....................................................................................37

Table 26: Australia exchange rate, 2014–18.................................................................................................................37



LIST OF FIGURESFigure 1: Australia confectionery market value: $ million, 2014–18 ................................................................................9

Figure 2: Australia confectionery market volume: million kilograms, 2014–18..............................................................10

Figure 3: Australia confectionery market category segmentation: % share, by value, 2018 .........................................11

Figure 4: Australia confectionery market geography segmentation: % share, by value, 2018......................................12

Figure 5: Australia confectionery market share: % share, by value, 2018 ....................................................................13

Figure 6: Australia confectionery market distribution: % share, by value, 2018 ............................................................14

Figure 7: Australia confectionery market value forecast: $ million, 2018–23 ................................................................15

Figure 8: Australia confectionery market volume forecast: million kilograms, 2018–23 ................................................16

Figure 9: Forces driving competition in the confectionery market in Australia, 2018 ....................................................17

Figure 10: Drivers of buyer power in the confectionery market in Australia, 2018 ........................................................18

Figure 11: Drivers of supplier power in the confectionery market in Australia, 2018.....................................................19

Figure 12: Factors influencing the likelihood of new entrants in the confectionery market in Australia, 2018...............20

Figure 13: Factors influencing the threat of substitutes in the confectionery market in Australia, 2018........................21

Figure 14: Drivers of degree of rivalry in the confectionery market in Australia, 2018 ..................................................22

Figure 15: Chocoladefabriken Lindt & Sprungli AG: revenues & profitability ................................................................24

Figure 16: Chocoladefabriken Lindt & Sprungli AG: assets & liabilities ........................................................................25

Figure 17: Mondelez International, Inc.: revenues & profitability...................................................................................30

Figure 18: Mondelez International, Inc.: assets & liabilities...........................................................................................31

Figure 19: Nestle SA: revenues & profitability ...............................................................................................................34

Figure 20: Nestle SA: assets & liabilities .......................................................................................................................35



MARKET OVERVIEWMarket definitionThe confectionery market consists of the retail sale of chocolate, gum and sugar confectionery products. The chocolate segment consists of all chocolate based products, including boxed chocolates, chocolate countlines, chocolate straightlines, molded bars and novelties. The gum segment consists of all bubble and chewing gum. Moreover, the sugar confectionery products consists of hard boiled sweets, mints, caramels & toffees, gums and jellies, marshmallows, fudges and medicated throat lozenges. The market is valued according to retail selling price (RSP) and includes any applicable taxes. Any currency conversions used in the creation of this report have been calculated using constant 2018 annual average exchange rates.

For the purpose of this report the global figure comprises of North America, South America, Europe, Asia-Pacific, Middle East, and South Africa.

The Americas comprises Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru and the United States.

North America comprises Canada, Mexico, and the United States.

South America comprises Argentina, Brazil, Chile, Colombia and Peru.

Europe comprises Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Spain, Sweden, Turkey, Ukraine, and the United Kingdom.

Scandinavia comprises Denmark, Finland, Norway, and Sweden.

Asia-Pacific comprises Australia, China, Japan, Indonesia, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Hong Kong, Taiwan, and Thailand.

Middle East comprises of Saudi Arabia, Egypt, Israel and the United Arab Emirates.

Market analysisThe Australian confectionery market recorded moderate growth during the review period (2014-2018). The growth of the market is expected to accelerate over the forecast period (2018-2023).

High brand loyalty and premiumization, combined with aggressive marketing strategies, have contributed to market growth. Moreover, rising awareness of health and nutrition is influencing consumption choices in the Australian confectionery market. Therefore, sugar-free innovations, dark chocolate product line extensions and innovative packaging are attracting consumers. The young, particularly students, will drive value growth in the confectionery market through greater consumption.

The Australian confectionery market had total revenues of $3,450.8m in 2018, representing a compound annual growth rate (CAGR) of 3.2% between 2014 and 2018. In comparison, the Japanese and Chinese markets grew with CAGRs of 1.4% and 6.7% respectively, over the same period, to reach respective values of $9,505.2m and $17,859.1m in 2018.

Market consumption volume increased with a CAGR of 2.1% between 2014 and 2018, to reach a total of 224.0 million kilograms in 2018. The market's volume is expected to rise to 247.4 million kilograms by the end of 2023, representing a CAGR of 2.0% for the 2018-2023 period.

Chocolate sales accounted for the highest value in the Australian confectionery market in 2018, with total sales of $2,429.8m, equivalent to 70.4% of the market's overall value. In comparison, sales of sugar confectionery reached a value of $758.5m in 2018, equating to 22.0% of the market total.



The performance of the market is forecast to accelerate, with an anticipated CAGR of 3.9% for the five-year period 2018 - 2023, which is expected to drive the market to a value of $4,186.4m by the end of 2023. Comparatively, the Japanese and Chinese markets will grow with CAGRs of 1.5% and 6.0% respectively, over the same period, to reach respective values of $10,238.7m and $23,893.7m in 2023.



MARKET DATAMarket valueThe Australian confectionery market grew by 3.7% in 2018 to reach a value of $3,450.8 million.

The compound annual growth rate of the market in the period 2014–18 was 3.2%.

Table 1: Australia confectionery market value: $ million, 2014–18

Year $ million A$ million € million % Growth2014 3,043.3 4,077.2 2,579.52015 3,126.2 4,188.3 2,649.8 2.7%2016 3,213.4 4,305.1 2,723.7 2.8%2017 3,328.8 4,459.7 2,821.5 3.6%2018 3,450.8 4,623.1 2,924.9 3.7%

CAGR: 2014–18 3.2%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: Australia confectionery market value: $ million, 2014–18




Market volumeThe Australian confectionery market grew by 2.1% in 2018 to reach a volume of 224 million kilograms.

The compound annual growth rate of the market in the period 2014–18 was 2.1%.

Table 2: Australia confectionery market volume: million kilograms, 2014–18

Year million kilograms % Growth2014 205.92015 210.4 2.2%2016 215.0 2.2%2017 219.5 2.1%2018 224.0 2.1%

CAGR: 2014–18 2.1%


Figure 2: Australia confectionery market volume: million kilograms, 2014–18




MARKET SEGMENTATIONCategory segmentationChocolate is the largest segment of the confectionery market in Australia, accounting for 70.4% of the market's total value.

The Sugar confectionery segment accounts for a further 22% of the market.

Table 3: Australia confectionery market category segmentation: $ million, 2018

Category 2018 %Chocolate 2,429.8 70.4%Sugar Confectionery 758.5 22.0%Gum 262.5 7.6%

Total 3,450.8 100%


Figure 3: Australia confectionery market category segmentation: % share, by value, 2018




Geography segmentationAustralia accounts for 8.3% of the Asia-Pacific confectionery market value.

China accounts for a further 43.2% of the Asia-Pacific market.

Table 4: Australia confectionery market geography segmentation: $ million, 2018

Geography 2018 %China 17,859.1 43.2Japan 9,505.2 23.0India 4,314.0 10.4Australia 3,450.8 8.3South Korea 1,356.0 3.3Rest of Asia-Pacific 4,870.5 11.8

Total 41,355.6 100%


Figure 4: Australia confectionery market geography segmentation: % share, by value, 2018




Market shareMondelez International, Inc is the leading player in the Australian confectionery market, generating a 33.4% share of the market's value.

Mars, Incorporated accounts for a further 24.6% of the market.

Table 5: Australia confectionery market share: % share, by value, 2018

Company % ShareMondelez International, Inc 33.4%Mars, Incorporated 24.6%Nestle SA 14.4%Chocoladefabriken Lindt & Sprüngli AG 5.3%Other 22.3%

Total 100%


Figure 5: Australia confectionery market share: % share, by value, 2018




Market distributionHypermarkets & Supermarkets form the leading distribution channel in the Australian confectionery market, accounting for a 57.7% share of the total market's value.

Convenience Stores accounts for a further 28.6% of the market.

Table 6: Australia confectionery market distribution: % share, by value, 2018

Channel % ShareHypermarkets & Supermarkets 57.7%Convenience Stores 28.6%Food & drinks specialists 5.1%“Dollar Stores” and Variety Stores 3.6%Other 5.0%

Total 100%


Figure 6: Australia confectionery market distribution: % share, by value, 2018




MARKET OUTLOOKMarket value forecastIn 2023, the Australian confectionery market is forecast to have a value of $4,186.4 million, an increase of 21.3% since 2018.

The compound annual growth rate of the market in the period 2018–23 is predicted to be 3.9%.

Table 7: Australia confectionery market value forecast: $ million, 2018–23

Year $ million A$ million € million % Growth2018 3,450.8 4,623.1 2,924.9 3.7%2019 3,585.3 4,803.4 3,039.0 3.9%2020 3,727.4 4,993.7 3,159.4 4.0%2021 3,876.7 5,193.7 3,285.9 4.0%2022 4,030.2 5,399.4 3,416.1 4.0%2023 4,186.4 5,608.6 3,548.4 3.9%

CAGR: 2018–23 3.9%


Figure 7: Australia confectionery market value forecast: $ million, 2018–23




Market volume forecastIn 2023, the Australian confectionery market is forecast to have a volume of 247.4 million kilograms, an increase of 10.4% since 2018.

The compound annual growth rate of the market in the period 2018–23 is predicted to be 2%.

Table 8: Australia confectionery market volume forecast: million kilograms, 2018–23

Year million kilograms % Growth2018 224.0 2.1%2019 228.6 2.0%2020 233.2 2.0%2021 237.9 2.0%2022 242.7 2.0%2023 247.4 1.9%

CAGR: 2018–23 2.0%


Figure 8: Australia confectionery market volume forecast: million kilograms, 2018–23




FIVE FORCES ANALYSISThe confectionery market will be analyzed taking manufacturers of chocolates, gum and sugar confectionery as players. The key buyers will be taken as retailers, and cocoa farmers and other raw material producers as the key suppliers.

SummaryFigure 9: Forces driving competition in the confectionery market in Australia, 2018


The Australian confectionery market experienced moderate growth during the review period (2014-2018). Players in this market are often quite diversified, but generally tend to depend heavily on the food and beverage market. This, and the low cost of switching for end consumers, drives rivalry, although the latter can be mitigated to some extent by strong branding. Overall, the degree of rivalry in this market is assessed to be moderate.

Buyers in the confectionery market range from small independent retailers to large, often multinational supermarket and hypermarket chains. With extensive distribution infrastructure and financial muscle, larger buyers are able to exert a strong degree of power; in turn, due to the high importance of branding in the market, these buyers are heavily influenced by consumer demand.

Suppliers to this market vary, from farmers and ingredient manufacturers, to the producers of machinery. There is also significant diversity within each supplier category. An example of this is that ingredient producers vary in terms of the ethical standards to which they adhere, the ingredients they offer, or the geographic locations in which they operate.

For new entrants, fairly high operating and entry costs, along with the considerable importance of brand power, create barriers to entry. Despite this, it is possible to enter this market on a smaller scale, with higher value products, for instance.

Finally, in terms of substitutes, an array of alternatives exists. However, for retailers, stocking potential substitutes tends to bring some disadvantages in terms of storage space or the need for specialized equipment, such as chilled display units.



Buyer powerFigure 10: Drivers of buyer power in the confectionery market in Australia, 2018


Hypermarkets and supermarkets constitute the major buyers in the Australian confectionery market, accounting for 57.7% of total sales value in 2018. Convenience stores are also significant and accounted for a further 28.6%. Such large, often multinational buyers are able to exert a strong degree of buyer power, since they control extensive distribution systems. Moreover, switching costs for buyers are usually not significant, as market players need to distribute products widely.

The confectionery market includes a wide range of product categories, with opportunities for manufacturers to diversify their products from competitors in each segment, such as sugar free snacks or products addressing diabetics. Due to an increase in health awareness, snacks offering health benefits, for instance, with no artificial colors or the inclusion of additives such as vitamins, present new areas of expansion. As most retailers in this market offer a wide variety of products, with confectionery being only a small part of the company’s product range, buyer power is increased.

As branding is a significant factor within this market, enforcing the market players’ negotiating position against buyers, manufacturers invest heavily in advertising to build strong brand awareness. The existence of strong, established brands mitigates buyer power to some extent, as consumer preferences compel retailers to respond to demand and stock popular products.

While it is rare (though not unheard of) to see a market player forward integrate into food retail, many large supermarket chains offer self-owned private labelled confectionery. The potential for larger retailers integrating backwards further increases buyer power.

Overall, buyer power is assessed as moderate.



Supplier powerFigure 11: Drivers of supplier power in the confectionery market in Australia, 2018


The key inputs in the confectionery market are ingredients including sugar, cocoa beans, and their derivatives (cocoa butter, cocoa liquor, or cocoa powder).

Suppliers to this market are cocoa farmers, along with producers of various other raw materials such as sugar, and the machinery required for production and packaging, among others.

Within the market, there is a degree of diversification; cocoa is sold in a variety of grades, and market players must often source ingredients from around the world. Many cocoa-based raw materials are sourced from countries including Cote d'Ivoire, Ghana, Indonesia, and Brazil, which increases supplier power to some extent in the confectionery market.

Manufacturers may also choose to adopt international Fair Trade standards, which ensure that farmers receive a 'fair' price for their products, and that the working conditions are not considered exploitative. As end consumers may opt for Fair Trade certified products over alternatives with weaker ethical credentials, some retailers and market players are compelled to source from Fair Trade suppliers. This further increases supplier differentiation, resulting in supplier power.

Despite this, market players do have alternatives: suppliers also exist in other East Asian, West African, and South American equatorial regions, where existing inventory in domestic markets acts as a supply buffer.

Supplier power dropped during the review period, as the price of sugar remained low. Moreover, major producers, including India, Thailand, and China, were affected by El Nino, experiencing a huge fall in sugar output. This may result in a global rebound of sugar prices going forward.

Raw materials, such as those used by confectionery producers, are bought on commodity markets. While confectionery companies are unlikely to have much control over supplier prices, they are able to use financial techniques such as hedging in order to reduce the impact of price rises on their margins.

Overall, supplier power is evaluated to be moderate.



New entrantsFigure 12: Factors influencing the likelihood of new entrants in the confectionery market in Australia, 2018


In order to enter this market, high levels of capital are required to set up production facilities, as most confectionery products are mass-marketed and must be manufactured in substantial volumes to be profitable. However, it is also possible to enter the market on a smaller scale with a higher value, 'artisanal' product.

As existing players have established strong brands, consumers may be reluctant to swap their favorite snack for a completely new product, which in turn will make it harder for new manufacturers to find distribution channels.

There is a significant risk of large retailers - particularly supermarket chains - backward integrating, attaining a position by manufacturing self-owned private label products, and cutting into players’ revenues, usually at the lower end of the market. However, private label products are only sold in the retailer’s own outlets, and therefore gain only limited brand recognition.

As branding is a significant factor in this market, players tend to focus more on expanding current product lines rather than developing entirely new ones.

Due to health concerns, there are various regulations in place. In Australia, the food market is regulated by Food Standards Australia New Zealand (FSANZ), which implements regulations that require products to be safe to eat, produced under sanitary conditions and contain no harmful substances. Having to comply with these regulations makes it harder for newcomers to enter the market.

A moderate rate of market growth during the review period will encourage new entrants in the Australian confectionery market. Overall, the threat from new entrants is assessed as being moderate.



Threat of substitutesFigure 13: Factors influencing the threat of substitutes in the confectionery market in Australia, 2018


Most confectionery products are purchased by end-users as snack food. As such, substitutes include savory snacks and fresh fruit.

For retailers, potential substitutes tend to bring disadvantages; in regards to storage of snacks such as potato chips, they require more shelf space per item than most confectionery, whilst fruit is biodegradable and can require expensive chilled display units. This reduces the risk of substitution.

On the other hand, switching costs are reduced for many food retailers due to the standard practice of stocking an array of confectionery and potential substitutes. Rebalancing the product line-up to meet consumer demand is not particularly problematic. Increasing public awareness regarding the health hazards associated with poor dietary practices - particularly diets high in fat and sugar - is a major factor in steering consumers away from confectionery products and towards healthier substitutes.

Furthermore, some forms of confectionery are purchased by consumers as luxury or gift items, rather than quick snacks for personal consumption. In such cases, the substitutes are more varied, and may include certain gift items of a similar value.

Overall, the threat from substitutes is deemed to be moderate.



Degree of rivalryFigure 14: Drivers of degree of rivalry in the confectionery market in Australia, 2018


The Australian confectionery market is fairly concentrated, with the top four players, Mondelez, Mars, Nestlé, and Lindt, controlling 77.7% of the market. Notably, the top two leading players Mondelez and Mars secured 58.0% of the total market share in 2018.

Leading companies have diverse product lines, although food and drink products tend to be central to the businesses. This intensifies rivalry, as profit depends largely on their success in this market.

Switching costs for consumers and retailers are low. The threat from private labels, which offer a cheaper alternative to branded products, tends to increase during times of economic downturn or slowdowns, as consumers become increasingly price-conscious.

However, product differentiation, bolstered both by inherent characteristics and by strong branding, enables players to maintain a hold over customers to some extent, alleviating rivalry.

In a business where automated, high-volume manufacturing is the norm, capacity increases are relatively easy to implement, and fixed costs are high, this results in enhanced rivalry.

Moderate growth rate during the review period worked to alleviate rivalry, with rivalry in the confectionery market being assessed as moderate overall.



LEADING COMPANIESChocoladefabriken Lindt & Sprungli AG

Table 9: Chocoladefabriken Lindt & Sprungli AG: key facts

Head office: Seestrasse 204, Kilchberg, CHETelephone: 41 447 162 233Fax: 41 447 153 985

Local office: Lindt & Sprungli (Australia) Pty. Ltd., Level 7, 299 Elizabeth Street, Sydney, New South Wales, AUS

Telephone: 61 282 680 00Fax: 61 292 837 26Website: www.lindt-spruengli.comFinancial year-end: DecemberTicker: LISNStock exchange: SIX Swiss

SOURCE: COMPANY WEBSITE M A R K E T L I N E

Chocoladefabriken Lindt & Sprungli AG (Lindt) manufactures and distributes chocolate products. The company offers chocolates, milk chocolates, dark chocolates, tablets and pralines under Lindt, Ghirardelli, Caffarel, Hofbauer, Kufferle, Russell Stover, Whitman's and Pangburn's brands name. The Company has 12 manufacturing facilities in the US and Europe. It distributes its products through 100 independent distributors and 24 subsidiary companies and branch offices to reach its 300 stores located over 120 countries across the globe.

In Australia, the company sells its products under Lindt, Lindor, Creation and other brand names.

Key MetricsThe company recorded revenues of $4,178 million in the fiscal year ending December 2017, an increase of 4.8% compared to fiscal 2016. Its net income was $461 million in fiscal 2017, compared to a net income of $429 million in the preceding year.

Table 10: Chocoladefabriken Lindt & Sprungli AG: key financials ($)

$ million 2013 2014 2015 2016 2017Revenues 2,945.6 3,459.5 3,733.3 3,986.3 4,177.9Net income (loss) 309.6 349.9 388.7 428.9 460.6Total assets 3,965.7 5,703.7 6,396.0 6,569.5 7,128.3Total liabilities 1,273.3 2,637.9 2,834.2 2,822.1 2,850.4

SOURCE: COMPANY FILINGS M A R K E T L I N E



Table 11: Chocoladefabriken Lindt & Sprungli AG: key financials (CHF)

CHF million 2013 2014 2015 2016 2017Revenues 2,882.5 3,385.4 3,653.3 3,900.9 4,088.4Net income (loss) 303.0 342.4 380.4 419.7 450.7Total assets 3,880.7 5,581.5 6,259.0 6,428.8 6,975.6Total liabilities 1,246.0 2,581.4 2,773.5 2,761.6 2,789.3


Table 12: Chocoladefabriken Lindt & Sprungli AG: key financial ratios

Ratio 2013 2014 2015 2016 2017Profit margin 10.5% 10.1% 10.4% 10.8% 11.0%Revenue growth 8.0% 17.4% 7.9% 6.8% 4.8%Asset growth 46.9% 43.8% 12.1% 2.7% 8.5%Liabilities growth 31.6% 107.2% 7.4% (0.4%) 1.0%Debt/asset ratio 32.1% 46.2% 44.3% 43.0% 40.0%Return on assets 9.3% 7.2% 6.4% 6.6% 6.7%


Figure 15: Chocoladefabriken Lindt & Sprungli AG: revenues & profitability




Figure 16: Chocoladefabriken Lindt & Sprungli AG: assets & liabilities




Mars, IncorporatedTable 13: Mars, Incorporated: key facts

Head office: 6885 Elm Street, McLean, Virginia, USATelephone: 1 703 821 4900Local office: Mars Petcare Australia, Wodonga, Victoria 3689, AUSTelephone: 61 260 555 200Website: www.mars.com


Mars, Incorporated (Mars) primarily produces and distributes food products worldwide. The company offers chocolates, candies, chewing gums, rice, sauces, and beverages, among others. Additionally, it provides dog and cat food. Mars operates across North America, Europe, Asia Pacific, South America, Africa and the Middle East.

The company operates through six businesses: Mars Petcare, Mars Wrigley Confectionery, food, drinks and symbioscience.

The Mars Petcare business offers a wide range of pet food products under 50 brands. Some of the brands marketed by this business include Pedigree, Royal Canin, Whiskas, Banfield, Cesar, Sheba, Temptations and IAMS, among others. With presence in more than 55 countries, the business provides products for fishcare and horsecare; petservices; and operates the Waltham Centre for Pet Nutrition.

Under the Mars Wrigley Confectionery, the company offers a wide variety of chocolates, chewing gum, mints, and fruity confectionsa wide variety of chocolates in 180 countries worldwide under 29 brands including M&M's, Snickers, Dove, Galaxy, Mars, Milky Way, Twix, 3 Musketeers, Balisto, Bounty, Orbit, Wrigley's Spearmint, Juicy Fruit, Altoids, Life Savers, Doublemint, Skittles, BigRed, Winterfresh, Extra, Starburst, Freedent, Hubba Bubba, Eclipse and Amicelli among others.

Mars’ food business offers rice, sauces, herbs and spices, recipe bases, marinades, relishes, mustards, cheese and ready-made meals in over 28 countries including the US, Canada, Brazil, Australia, Europe, and South Africa. The business segment has 12 manufacturing sites and 13 food brands in more than 30 countries. These products are offered under several brands Uncle Ben's, Dolmio, Masterfoods, Miracoli, Suzi Wan, Kan Tong, Seeds of Change, Royco, Ebly, Abu Siouf, Raris and Pamesello.

Under the drinks business, Mars offers coffee, tea and hot chocolate drinks. Major brands of Mars’ drinks business include Alterra, The Bright Tea Co., and Dove. The company also offers hot drinks machines under Flavia and Klix brands. The segment’s single-serve range includes ALTERRA Coffee Roasters coffees, THE BRIGHT TEA CO. teas and DOVE Hot Chocolate.

The symbioscience segment constitutes the health and life sciences business of Mars. This segment includes brands such as CocoaVia, a cocoa extract supplement; and Cocoapro, a process developed and patented by Mars scientists, which helps in preserving the cocoa flavanols present in cocoa beans, among others. The segment in collaboration with world’s leading scientific institutions has published more than 150 peer-reviewed scientific papers and approximately 100 patents globally in the field of cocoa flavanols.

Geographically, the business operates in more than 70 countries in six regions including Africa, Asia, Australia, Europe, North America and South America. The company has brand presence in 180 countries.

In Australia, the company sells its products under Bounty, Life Savers, Pods and other brand names.



Key MetricsAs a privately held company, Mars, Incorporated is not obliged to publish its financial statements.



Mondelez International, Inc.Table 14: Mondelez International, Inc.: key facts

Head office: Three Parkway North, Deerfield, Illinois, USATelephone: 1 847 943 4000

Local office: Mondelez Australia Pty Ltd., Level 6, South Wharf Tower, 30 Convention Centre Place, South Wharf, VIC 3006, AUS

Telephone: 61 3 9676 5555Fax: 61 3 9676 5597Website: www.mondelezinternational.comFinancial year-end: DecemberTicker: MDLZStock exchange: NASDAQ


Mondelez International, Inc. (Mondelez) manufactures and markets snack food products, biscuits (cookies, crackers and salted snacks), chocolate, gum and candy, cheese and grocery products and powdered beverage products. It operates in more than 80 countries and produces these products through 140 manufacturing and other facilities. It also distributes them in approximately 160 countries worldwide.

The company classifies its product offerings into five categories: Biscuits, Chocolate, Gum and Candy, Beverages, and Cheese and Grocery. Major international brands include Oreo, belVita, Cadbury Dairy Milk, Milka, and Trident and regional brands such as LU biscuits in Europe, Lacta chocolate in Brazil, and Sour Patch Kids in the US.

Under the Biscuit category, the company offers cookies, crackers and salted snacks. The company’s product portfolio comprises of soft biscuits, breakfast biscuits, bear shaped biscuits for kids aged 3 years, graham crackers in original, reduced fat, cheddar, cracked pepper & olive oil, fire roasted tomato & olive oil, garden herb, deli-style rye, roasted garlic, thin crisps, and rosemary & olive oil variants, biscuit sticks in milk, chocolate, dark chocolate and white chocolate flavors, cookies and crackers, chocolate chip cookies in original, chewy, chunky and candy blast flavors, wholesome snack made with fruit, cremefilled sandwich cookies, saltine crackers in unsalted tops, original, fat-free, low-sodium, soup & oyster and multi-grain variants, biscuits filled with vitamins and minerals, wheat crackers in sundried tomato & basil, multigrain and parmesan basil flavors, snack bars, buns and sandwich-style treats in sweet and savory flavors, wholesome snacks, fruit thins and fruit crisps in strawberry and raspberry flavors, wafers in original, reduced-fat and mini variants. These products are marketed in Russia, Ukraine, Poland, Australia, Belgium, France, Netherlands, New Zealand, the UK, the US, Brazil, Canada, China, Ecuador, Malaysia, Mexico, Philippines, Portugal, Puerto Rico, Spain, Thailand, Venezuela, Argentina, Colombia, Dominican Republic, Paraguay, Peru, Uruguay, Germany, Italy, Sweden, Switzerland, Indonesia, Romania, Taiwan, Vietnam, Hong Kong, European Union, Eastern Europe, South Africa, Egypt and Gulf Cooperation Council (GCC). In FY2017, the biscuits market accounted for 41.6% of the company’s total revenue.

Under the chocolate category, Mondelez produces and markets milk chocolate bar, caramel chocolate, premium chocolate and chocolate wafers. The company markets these products under the brands of Alpen Gold, Cadbury, Cadbury Creme Egg, Cadbury Dairy Milk, Cadbury Roses, Cadbury Eclairs, Cote d'Or, Lacta, Marabou, Milka, 5 Star, Freia, and Toblerone. These products are marketed in Brazil, New Zealand, Russia, Ukraine, the UK, Australia, Canada, India, Ireland, Malaysia, Philippines, Vietnam, South Africa, China, Egypt, Belgium, France, Germany, Italy, Middle East, the Netherlands, Denmark, Finland, Sweden, Argentina, Austria, Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Spain, Turkey, Switzerland and Thailand. In FY2017, the chocolate category accounted for 31.3% of the company’s total revenue.



Under the gum and candy Category, it offers chewing gum, cough-drop gum, candy, oral health gum, and soft gummy candy products. It markets these products in the UK, Australia, Mexico, Portugal, Spain, India, South Africa, China, Canada, Malaysia, Thailand, the US, Russia, Kazakhstan, Ukraine, Azerbaijan, Baltics, Brazil, Philippines, France, Belgium, Denmark, Holland, Sweden, Switzerland, New Zealand, Nigeria and Egypt. In FY2017, the gum and candy products accounted for 14% of the company’s total revenue.

Under the beverage category, the company offers coffee, tea, malted drinks, packaged juice drinks and powdered beverages. These products are offered in various flavors and sizes. The company markets these products in India, Nigeria, Brazil, Canada, China, Colombia, Mexico, Argentina, Middle East, New Zealand, Philippines, Puerto Rico, Turkey, Venezuela, Vietnam and Germany. In FY2017, the beverages market accounted for 5.3% of the company’s total revenue.

Under the cheese and grocery category, it offers natural cheese, cream cheese, pudding and baking powders and sliced cheese. It offers these products in regular, light, fat-free and flavored cream cheese variants. It offers these products in Australia, Austria, Argentina, Brazil, Belgium, Denmark, Finland, Germany, Greece, Ireland, Italy, Netherlands, New Zealand, Norway, Spain, Sweden, Switzerland and the UK. In FY2017, the cheese and grocery markets accounted for 7.8% of the company’s total revenue.

Mondelez sells its products to supermarket chains, supercenters, wholesalers, club stores, mass merchandisers, distributors, gasoline stations, convenience stores, drug stores, value stores and other retail food outlets and distributes its products through direct store delivery, company-owned and satellite warehouses, distribution centers and other facilities.

The company's research and development (R&D) develops innovative products using enhanced safety and quality techniques that ensures superior consumer satisfaction and reduced costs. The company operates through 2,450 scientists and engineers, of which approximately 1,900 focused on research and development and the remaining on quality assurance and regulatory affairs. Mondelez has technology centers in: East Hanover, New Jersey, Bournville, the UK, Curitiba, Brazil, Mexico City, Mexico, Reading, the UK, Thane, India and Suzhou, China. In FY2017, the company invested US$366 million for its R&D activities, which as a percentage of revenue stood at 1.4%.

Geographically, the company classifies its operations into four reportable segments: North America, Latin America, Europe and Africa, Middle East and Asia (AMEA). In FY2017, Europe accounted for 37.8% of the company’s total revenue, followed by North America (26.2%), AMEA (22.2%) and Latin America (13.8%).

In Australia, the company sells its products under Cadbury, Crunchie, Roses and other brand names.

Key MetricsThe company recorded revenues of $25,938 million in the fiscal year ending December 2018, an increase of 0.2% compared to fiscal 2017. Its net income was $3,381 million in fiscal 2018, compared to a net income of $2,828 million in the preceding year.



Table 15: Mondelez International, Inc.: key financials ($)

$ million 2014 2015 2016 2017 2018Revenues 34,244.0 29,636.0 25,923.0 25,896.0 25,938.0Net income (loss) 2,184.0 7,267.0 1,659.0 2,828.0 3,381.0Total assets 66,815.0 62,843.0 61,538.0 62,957.0 62,729.0Total liabilities 39,065.0 34,831.0 36,377.0 36,963.0 37,092.0Employees 104,000 99,000 90,000 83,000 80,000


Table 16: Mondelez International, Inc.: key financial ratios

Ratio 2014 2015 2016 2017 2018Profit margin 6.4% 24.5% 6.4% 10.9% 13.0%Revenue growth (3.0%) (13.5%) (12.5%) (0.1%) 0.2%Asset growth (7.9%) (5.9%) (2.1%) 2.3% (0.4%)Liabilities growth (2.7%) (10.8%) 4.4% 1.6% 0.3%Debt/asset ratio 58.5% 55.4% 59.1% 58.7% 59.1%Return on assets 3.1% 11.2% 2.7% 4.5% 5.4%Revenue per employee $329,269 $299,354 $288,033 $312,000 $324,225Profit per employee $21,000 $73,404 $18,433 $34,072 $42,263


Figure 17: Mondelez International, Inc.: revenues & profitability




Figure 18: Mondelez International, Inc.: assets & liabilities




Nestle SATable 17: Nestle SA: key facts

Head office: Avenue Nestle 55, Vevey, Waadt, CHETelephone: 41 219 241 111Fax: 41 219 244 800

Local office: Nestle Australia Ltd., Building D, 1 Homebush Bay Drive, Rhodes, New South Wales, AUS

Telephone: 61 287 562 000Website: www.nestle.comFinancial year-end: DecemberTicker: NESNStock exchange: Virt-X


Nestle SA (Nestle) is a food and beverage company offering more than 2,000 branded products across 189 countries.

The company classifies its business operations into six reportable segments: Zone Americas (AMS); Zone Europe, the Middle East and North Africa (EMENA); Zone Asia, Oceania and sub-Saharan Africa (AOA); Nestle Waters; Nestle Nutrition; and Other Business, which accounted for 31.7%, 18.4%, 18.1%, 8.9%, 11.5% and 11.4% of the company's total revenue.

It offers products under seven categories: Powdered and Liquid Beverages, Water, Milk Products and Ice Cream, Nutrition and Health Science, Prepared Dishes and Cooking Aids, and Confectionery and PetCare.

The company manages R&D operations through a network of 40 R&D centers with 4,800 scientists and researchers, and product technology centers globally. Nestle maintains 25 regional testing labs, which offer analytical data and quality assurance.

Nestle operates 418 factories in 86 countries including Asia-pacific, Europe, Americas and Middle East regions. In FY2017, the company generated 61.6% of the total revenue from Rest of the World, followed by the US (29.7%), Greater China (7.3%), and the remaining 1.4% was contributed by Switzerland.

Product Categories:

Powdered and Liquid Beverages

Offers a variety of coffee and tea products under various brands including Nescafe, Special.T, Nespress, Nestea, Nescafe Coffee Mate and Nescafe Dolce Gusto.

Nutrition & Health Science

Offers a broad range of nutritional products to aid various medical conditions. Its major brands include Nestle Skin Health, Cetaphil, Epiduo, Restylane, Galderma, Illume, Nestle Gerber, S-26, Nestle Nan, Nestle Nestum, Nestle Materna, Nestle Cerelac, Nestle Beba and Nestle Lactozen.

Milk Products & Ice Cream

Offers milk products, ice creams and other extended varieties under Nestle Nido, Nestle LC1, La Laitiere, Dreyer’s, Nestle Nescau, Nestle Milo, Nestle Nesvita, Nestle Carnation, Nestle Nesquik, Haagen-Dazs, Movenpick, Yinlu and Nestle Drumstick brands.

Prepared Dishes & Cooking Aids



Offers personalized food and beverage solutions for diversified customers: restaurants, fast-food establishments, cafes, hospitals, schools and vending machine operator. Major brands include: Maggi, Buitoni, Stouffer’s, Herta, Totole, Original Wagner, Lean Cuisine, Thomy, Digiorno, Chef and Minor’s.

PetCare

Offers puppy food, senior dog food, dry dog food, healthy weight dog food, dog treats, natural dog food, Cat food (wet and dry) under Purina Beneful, Purina Cat Chow, Purina Dog Chow, Purina Felix, Purina Friskies, Purina Gourmet, Purina One and Purina Pro Plan brands.

Confectionery

Offers a broad range of dark and milk chocolates under Nestle, KitKat, and Cailler.

Water

Nestle offers water in three varieties: Prepared, Natural Mineral, and Spring Waters, through its International, Local brands and other beverages categories such as Nestle Pure Life, Perrier, S.Pellegrino, Vittel, Doland Spring, Acqua Panna, Poland Spring, Buxton, Sao Laurenco, La Vie and Erikli.

In Australia, the company sells its products under Crunch, Kit Kat, Smarties and other brand names.

Key MetricsThe company recorded revenues of $91,757 million in the fiscal year ending December 2017, an increase of 0.4% compared to fiscal 2016. Its net income was $7,340 million in fiscal 2017, compared to a net income of $8,718 million in the preceding year.

Table 18: Nestle SA: key financials ($)

$ million 2013 2014 2015 2016 2017Revenues 94,175.5 93,617.6 90,728.7 91,427.7 91,756.7Net income (loss) 10,234.2 14,772.5 9,264.5 8,717.8 7,340.3Total assets 123,078.7 136,371.5 126,706.4 134,788.6 136,126.2Total liabilities 59,133.8 64,706.2 63,003.7 68,784.6 73,835.8Employees 333,000 339,000 335,000 328,000 323,000


Table 19: Nestle SA: key financials (CHF)

CHF million 2013 2014 2015 2016 2017Revenues 92,158.0 91,612.0 88,785.0 89,469.0 89,791.0Net income (loss) 10,015.0 14,456.0 9,066.0 8,531.0 7,183.0Total assets 120,442.0 133,450.0 123,992.0 131,901.0 133,210.0Total liabilities 57,867.0 63,320.0 61,654.0 67,311.0 72,254.0




Table 20: Nestle SA: key financial ratios

Ratio 2013 2014 2015 2016 2017Profit margin 10.9% 15.8% 10.2% 9.5% 8.0%Revenue growth 2.7% (0.6%) (3.1%) 0.8% 0.4%Asset growth (4.3%) 10.8% (7.1%) 6.4% 1.0%Liabilities growth (10.8%) 9.4% (2.6%) 9.2% 7.3%Debt/asset ratio 48.0% 47.4% 49.7% 51.0% 54.2%Return on assets 8.1% 11.4% 7.0% 6.7% 5.4%Revenue per employee $282,809 $276,158 $270,832 $278,743 $284,076Profit per employee $30,733 $43,577 $27,655 $26,579 $22,725


Figure 19: Nestle SA: revenues & profitability




Figure 20: Nestle SA: assets & liabilities




MACROECONOMIC INDICATORSCountry data

Table 21: Australia size of population (million), 2014–18

Year Population (million) % Growth2014 23.1 1.1%2015 23.3 1.1%2016 23.6 1.1%2017 23.8 1.0%2018 24.0 1.0%


Table 22: Australia gdp (constant 2005 prices, $ billion), 2014–18

Year Constant 2005 Prices, $ billion % Growth2014 936.5 2.8%2015 963.2 2.8%2016 992.6 3.1%2017 1,021.7 2.9%2018 1,052.2 3.0%


Table 23: Australia gdp (current prices, $ billion), 2014–18

Year Current Prices, $ billion % Growth2014 1,483.2 (1.5%)2015 1,554.2 4.8%2016 1,643.9 5.8%2017 1,733.0 5.4%2018 1,827.4 5.4%




Table 24: Australia inflation, 2014–18

Year Inflation Rate (%)2014 2.5%2015 2.3%2016 2.6%2017 2.6%2018 2.5%


Table 25: Australia consumer price index (absolute), 2014–18

Year Consumer Price Index (2005 = 100)2014 127.92015 130.72016 134.12017 137.72018 141.1


Table 26: Australia exchange rate, 2014–18

Year Exchange rate ($/A$) Exchange rate (€/A$)2014 1.1097 1.47282015 1.3316 1.47742016 1.3456 1.48902017 1.3036 1.47432018 1.3397 1.5806




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Industry associationsNational Confectionery WholesalersUnit 2, 80 96 South Park Drive Dandenong South, VIC 3175, PO Box 4587 Dandenong South, VIC 3175Tel.: 03 9538 0280Fax: 03 9545 6655http://www.ncw.com.au/

Related MarketLine researchIndustry ProfileConfectionery in China

Confectionery in Japan

Confectionery in Singapore

Confectionery in the United Kingdom



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