Lindt repositions Russell Stover as everyday brand

Lindt began trimming Russell Stover’s 2,000-strong product portfolio late last year after acquiring the boxed chocolate business in 2014.

In April this year, it launched the Russell Stover Every Day line, which comprises bites, sugar-free bites, minis, snacking bark and individually wrapped pieces in bags

Retailers currently stocking some or all of the new range include Walgreens, CVS, Kroger, Albertons Safeway, Publix, Ahold, Target, Hy-Vee and Walmart.

All-year round

The line is designed for existing consumers to purchase the brand all-year round, overcoming dependence on Christmas, Easter and Valentine’s Day sales.

“Additionally, the Russell Stover Every Day range will tap into the growing hand-to-mouth snacking trend to introduce new shoppers to the brand by offering them innovative flavors and recipes in familiar packaging formats,” a spokesperson for Lindt & Sprüngli told ConfectioneryNews.

The bags and pouches are being positioned on shelf between mainstream pouches and premium brands such as Lindt’s Lindor and Ghirardelli.

Lindt supported the launch with sampling programs, as well as digital display and Facebook advertising. The range is also sold at Russell Stover’s online store and retail network.

Stover streamlining has initial impact on Group sales

Jean-Philippe Bertschy, an analyst at Bank Vontobel,said Russell Stover volumes declined over 20% in Lindt’s H1 results last month, “showing Lindt’s commitment to clean up the company’s product portfolio and discount structure”.

Russel Stover consequently had a negative impact on Lindt in H1. But the Lindt group continued to outperform the market.

It posted +4.4% organic sales growth during the period, but grew +6.6% excluding Russell Stover.

Bertschy said in an analyst note that Russell Stover reported flat growth last year as streaming the portfolio only began in Q4.

Russell Stover posted $475m sales in chocolate confectionery in the US in 2013, before the Lindt acquisition, according to Euromonitor International.

Integration complete in two years

The Lindt spokesperson told this site Russell Stover’s integration should be completed within two years .

“While a certain amount of restructuring in specific areas such as the adjustment of the product portfolio have already been put in place, the company was able to further strengthen its dominant position in the boxed chocolate category during the very important seasonal business at Christmas, Easter and Valentine's Day,” they said.