Retail listing for a brand glow-up

Sweets start-ups often evaluate their own products based on how much they impress their customers: Are they new, do they taste good, is their story compelling? The trade assesses them from a different perspective, namely whether a product works: in economic terms, logistically and on the shelf. For example, whether the product generates solid margins, whether there are reliable supply chains and whether the product image is clearly defined.

Furthermore, the retail trade constantly weighs up potential risks. A stable product secures the trade turnover and makes efficient use of limited shelf space. For instance, Lindt & Sprüngli's chocolate, gold bunnies and co. have a fixed place in the premium range and record continual growth: In the year 2024, the turnover increased organically by 7.8 percent from 5.2 up to 5.47 billion Swiss Francs. For young companies this means creativity alone doesn't suffice for a product. The product has to be clearly classifiable for the trade and promise realistic sales.

The product maturity manifests itself in how stable the item is – i.e. to what extent the product is plannable for the trade. Sufficient shelf life, consistent quality and the start-up's ability to produce sweets in large volumes also play a role. Young companies have to be able to provide clear information on their raw materials, work processes and their production capacities. Without this security, the chances of a successful collaboration with the retail trade decrease.

The price of a product has to fit in with the existing price segment of a product category and is often based on comparable goods. Costs for logistics and campaigns, such as transport costs or discounts due to promotions, are further factors that influence the pricing. If these aspects are not taken into account by young brands and they offer sweets for example at a higher price without any apparent added value, the risk doubles for the trade: significant need for explanation and lower profitability. Only realistic product calculations and a clearly comprehensible pricing strategy ensure long-term chances of a retail listing.

On the shelf, the first impression, which is formed within seconds, is what counts. Packaging provides orientation: What kind of product is it? Which product category does it belong to? Which target group does it address? The colour design is a further key decision-making criterion. Studies, including one from the International Journal of Market Research, show that packaging colours must arouse attention and have to match the product and the product category.

In addition to the visual impact, the significance of sustainable packaging solutions is also rising. These frequently reach economic or technical limits, for example through higher costs or shorter shelf lives. Hence, young brands have to find the balance between sustainability and profitability in order to reach their target group, obtain listings and achieve a convincing shelf performance in appropriate supermarkets.

Tony's Chocolonely is a successful example. The brand unites a striking design with recyclable packaging and a social mission. As a result, it reaches consumers worldwide and generates high sales volumes in stores like REWE or Kaufland. This is reflected in the revenue: According to the Annual FAIR Report 2023/2024, the brand recorded a total net profit of over 200 million Euros.

A wide product range may seem ambitious, but it actually poses an economic risk for the trade. Each item represents a shelf life risk, own order, own shelf and storage place. The trade prefers manageable concepts with products, whose shelf position is "readily explainable". Because a smaller range is simpler to list, manage and evaluate. The decision to list a product often has little to do with the enthusiasm for individual products. Instead, the trade weighs up the following: Is there currently any demand? Is the revenue expectation realistic? Will the economic risk remain manageable? Young brands can increase their chances of being listed, if they understand this logic and actively take it into account.

Did you know? ISM offers start-ups numerous possibilities for an active exchange, for instance about how similar brands position themselves. The trade fair also gives them the opportunity to engage with buyers directly and thus establish an initial contact to the trade.

The right time to enter the retail market is not when a product is finished, but when a brand is economically viable as a whole. Those, who consider the product maturity, pricing and retail range when developing acumentheir sweets innovations, increase their chances of being listed.