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August 22, 2006
Cailler sees the Darkness
Since undergoing a marketing makeover earlier this year, Cailler chocolate has battled a deadly, but predictable, consumer and retailer backlash to its eco-unfriendly packaging and aggressive pricing policies. The local press smells blood in the water and has taken to frequent and dire predictions (link in German) for Nestlé, Cailler, and, most notably, Nelly Wenger, the Nestlé marketer behind the makeover.
Indeed, a most ominous dark cloud hangs over Cailler. As soon as the new Cailler bar hit store shelves, environmental groups were in an uproar over the plastic packaging, as reported by NZZ:
...about a month after the relaunch a consumer association from French-speaking Switzerland, the FRC, published the results of a study into the amount of non-recyclable waste that the sexed-up chocolate would create. It dropped a bombshell: the wrapping around 100g of Frigor chocolate, a popular Cailler brand, weighs 50g.
Sales were down 20 percent from January to May and local retailers have taken their case to the consumer with below-the-belt advertising about Cailler. The discounter Denner was particularly nasty, while being creative, with a poster campaign announcing:
Cailler sells packaging. Denner sells chocolate.
Having completely alienated its traditional consumer base in Switzerland, Nestle is apparently moving forward with an export strategy for its battered Cailler brand. Sweets Global Network reports that the importer Wilms/Impuls intends to launch Cailler chocolates in the German market.
In fact, these tribulations in the Swiss market might be worth it, if Nestlé could achieve sufficient growth in international markets to compensate for its losses domestically. Unfortunately for Nestlé, Cailler is a pretty "Swiss" product. Exports have accounted for only 5 percent of Cailler's turnover until now, meaning there is hardly any international presence to leverage for new, immediate sales.
Nestle insists it is too early for a post-mortum and notes that the coming holiday season traditionally accounts for the majority of sales. To be fair, it is indeed too early to pass judgement, but one has wonder if the execs in Vevey might just be praying for a little miracle now.
Last updated on August 22, 2006 08:17 PM
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