Easter egg vines shrink in supermarkets

The combination of rising inflation and falling purchasing power has made Brazilians increasingly exchange the traditional Easter egg for bonbons and chocolate bars. With this, the preparation of supermarkets for Easter has changed: the old vines full of eggs have become leaner spaces, up to 30% smaller compared to the pre-pandemic period.

On the other hand, retailers are now displaying bars and chocolates in “islands”, mounted at the entrance or at strategic points of the stores. Abras (Brazilian Association of Supermarkets) expects a 5% increase in volume in egg sales, to 9,500 tonnes, which will still be below the 10,000 tonnes sold in 2019, before the pandemic.

Already the average price of chocolates should jump 12% this year, says the association. In addition to being more expensive, the value of eggs varies greatly. To give you an idea, the 100 gram Easter egg from Ferrero’s Kinder Ovo brand, one of the children’s favorites, can be found from R$53 to R$80 a unit.

“The sale of Easter eggs has been falling year after year,” he told sheet Fábio Iwamoto, director of Chama Supermercados, a chain with 15 stores in the east side of São Paulo. “Consumers are not willing to pay dearly for an egg if they can consume the same chocolate in the form of bars or bonbons”, he says, who has bet on islands of chocolates and colombas at strategic points in the stores.

At Chama Supermercados, the space dedicated to egg vines this Easter was reduced by about 30% compared to 2019, says Iwamoto.

According to Diego Pereira, economist at Apas (Associação Paulista de Supermercados), the inflationary scenario has made the public look for cheaper alternatives in all categories.

“Easter eggs, especially those with toys, take up a lot of space in the store and are very expensive for the average family,” says Pereira. “Hence the fact that more and more retailers opt for the reduction of the areas occupied by the vines and the installation of islands of products with more competitive prices”, he says.

Carrefour’s bet is on the chain’s own brand eggs. Produced by the manufacturer from Paraná, Barion, Carrefour eggs are on average 30% cheaper than those of traditional brands. “This Easter, the number of private label items increased from nine to 17”, says Allan Hock Gate, Carrefour’s own brand director.

Among the novelties, a premium own brand, Selection. “We are also expanding the lines of chocolates and truffles, which are cheaper options to give away than eggs”, says Gate, who also has Carrefour branded colombas, produced by Romanato Alimentos, from São Bernardo do Campo (SP). ).

A recent survey by Asserj (Association of Supermarkets of the State of Rio de Janeiro) indicated that more than 80% of consumers are substituting more expensive products for brands with lower prices on supermarket shelves.

For Guilherme Mercês, consultant to Asserj, the removal of restrictions this year, with more families getting together, should help sales, but inflation still makes a good part of the public opt for chocolates with lower prices. “This must be a trend for Easter”, says Mercês.

In the evaluation of Marcio Milan, vice president of Abras, the consumer will not stop buying chocolates for the get-together, but should look for more offers and items with lower prices.

“There were important increases in the pandemic. Packaging went up a lot. We also had highs in ingredients used in the production of chocolates. The advance of 12% [dos preços] is a sum of that”, says Milan.

Village stopped producing eggs this year

The traditional Village brand, which since 2000 has supplied Easter eggs at more competitive prices than the leaders, will stop offering the product this year. The increase in the price of inputs, especially packaging, made the operation unfeasible, according to the commercial director of the Village, Reinaldo Bertagnon.

“We will only offer eggs at Cepam”, says the Executive, referring to the traditional bakery in the east of São Paulo that gave rise to the Village brand. “With the pandemic, the rate of Easter returns was terrible. Last year, we already reduced the supply of eggs. And this year we decided not to launch the product”, says Bertagnon.

The Executive draws special attention to the increase in prices of aluminum foil (50%) and cocoa (47%) in the last year. “A 130-gram egg for R$69 is too expensive for most families,” he says. “Nobody is ripping money, people cut the superfluous.”

Already the market leader Lacta, brand of the multinational Mondelez, launched eggs filled with chocolate of 54 grams, with a suggested price of R$ 11.99, in addition to keeping other traditional products of the date and those with larger packaging.

“We are bringing options that start at R$ 4, R$ 5, even a larger egg. They range from souvenirs to eggs to gift and impress”, says Renata Vieira, marketing director for chocolates at Mondelez Brazil. According to her, the expectation is to advance by 10% in sales compared to last year.

Alê Costa, founder and president of Cacau Show, follows the same line. According to him, the brand has expanded the product line for Easter, which starts from prices below R$ 10 to eggs above R$ 100. “We serve all types of pocket”, he says.

Costa says that the network intends to increase sales by 60% compared to last year’s Easter, surpassing pre-pandemic levels. The growth comes in the wake of the chain’s opening of franchises. Last year, the Cacau Show opened 500 stores. This year, there will be 1,000 new units, says the company.

Sale of Easter Eggs

Source: Abicab; *Abras forecast

Temporary job offers dropped 27% this year

Due to the reunion of families at Easter this year, celebrated on April 17, large chocolate manufacturers see conditions for sales growth in 2022. “It’s going to be a good Easter, but we don’t expect to go back to much earlier times, when inflation was lower, and GDP [Produto Interno Bruto]bigger”, says Ubiracy Fonsêca, president of Abicab (Brazilian Association of the Chocolate, Peanut and Candy Industry).

“Last year, even with stronger restrictions, we had a positive scenario for sales. This year, we expect a better time”, says Marcos Freitas, seasonal marketing manager at Nestlé Brazil.

The brand expects a “double-digit” growth in revenue with Easter 2022, according to the Executive. “We bring a very varied portfolio, with different flavors and formats”, he points out.

The seasonal job offer is leaner this year: down 27% over 2021, to 8,500 vacancies, according to Abicab. The calculation involves both open positions in factories and in points of sale.

The association considers that the number “remains relevant”, despite having become smaller. Temporary hires began in the second half of 2021.