CHOCOLATE PART 2 CHOCOLATE SWEETS MARKET REVIEW 2020

CHOCOLATE - PART 2 CHOCOLATE SWEETS MARKET REVIEW 2020

CONTENTS OVERVIEW VARIETY OF SENSES HEALTH & ETHICS EASTER Top trends & flavours p. 03 Major chocolate brands p. 04 Fruity flavours p. 06 Spicy flavours p. 07 Flavours inspired by cakes p. 08 Flavours inspired by beverages p. 09 Sweet & Salty p. 10 Truffles p. 11 Healthy treats p. 12 Chocolate coated fruits p. 13 Nuts & Pulses p. 14 Sustainable p. 15 Chocolate Easter eggs p. 16 Chocolate Easter figures p. 17 www. expressions-aromatiques. com Regulation on Chocolate confectionery is specific and varies greatly depending on the country. We highly recommend you to check in details the regulation specific to your market regarding the use of flavours in these products. 2

TOP TRENDS & FLAVOURS Top Ingredients / Flavours (Innovative NPD 2019 -2020) Milk chocolate Chocolate (undefined) Dark chocolate Hazelnut White chocolate Almond Praline + Hazelnut Salted caramel Caramel Strawberry Orange Sea salt / Salted (except caramel) Milk & Dark chocolate Raspberry Candies Matcha Ruby chocolate Blueberry Overall, the main trends driving new products development are SUGAR REDUCTION and VEGAN & VEGETARIAN. Being healthy and active has become an essential part of the MODERN LIFESTYLE. Consumer preferences are shifting toward foods that are more ORGANIC, made from NATURAL INGREDIENTS and FREE FROM controversial ingredients to keep them healthy. Chocolate providers seek to increase the healthiness of their products while using FLAVOUR and TEXTURE to keep the category appealing. Source : XTC Innovations & The World of Food Ingredients 3

MAJOR CHOCOLATE BRANDS As major brands continue to dominate confectionery sales, INNOVATION concerns FLAVOUR EXTENSION and LIMITED EDITIONS rather than clear breakouts. SMARTIES BUTTONS (Nestle) United-Kingdom – 02/2020 Chocolate buttons with inclusions of SMARTIES confectionery. In a bag to share. MILK CHOCOLATE & ORANGE MALTESERS (Mars) United-Kingdom – 02/2020 KINDER MAXI (Ferrero) France – 02/2020 KINDER BUENO (Ferrero) United-States – 03/2020 Chocolate confectionery buttons with crunchy malty inclusions. Chocolate bar with a milk filling. In limited edition. Candy bar with white chocolate and grated coconut. MINT DARK & MILD CHOCOLATE COCONUT www. expressions-aromatiques. com KINDER SCHOKO-BONS (Ferrero) France – 03/2020 Chocolate confectionery with a creamy and crunchy hazelnut filling, coated in white chocolate. WHITE CHOCOLATE Source : XTC Innovations 4

MAJOR CHOCOLATE BRANDS Nestle continues the PREMIUMIZATION of Kit. Kat chocolate bars with INNOVATIVE FLAVOURS, visually appealing and indulgent products often in LIMITED EDITIONS. LION Nestle (France – 04/2020) Chocolate wafer coated with white chocolate. In limited edition. BLACK & WHITE SNICKERS Mars (France – 04/2020) Peanut and caramel bar coated with white chocolate. In limited edition. KITKAT (Nestle) France – 04/2020 KITKAT (Nestle) France – 11/2019 KITKAT bar with a taste of caramel cappuccino flavour in a refined packaging. KITKAT bar wrapped in white chocolate with matcha green tea flavour inspired by Japan. CARAMEL CAPPUCCINO MATCHA GREEN TEA KITKAT (Nestle) Japan – 03/2020 KIT KAT sweets with ruby chocolate and pieces of almonds and cranberry. With fruity and slightly bitter taste. RUBY CHOCOLATE, NUTS & CRANBERRY WHITE CHOCOLATE www. expressions-aromatiques. com Source : XTC Innovations 5

FRUITY FLAVOURS Overall, there is an interest for GOURMET and ARTISAN-STYLE options with UPMARKET additional ingredients and flavours. MICHEL CHATILLON France – 09/2019 MORINAGA DARS Japan – 10/2019 Chocolate bites with strawberry from Plougastel (Brittany). Strawberry ganache topped with heart-shaped strawberry fruit paste. Chocolate bites with selected citrus filling. In pouch with Ishigaki-jima Island themed decorations. Individually wrapped. Limited edition. STRAWBERRY SHIKWASA TSINGDAO DINGKANGYI FOOD CO. China – 10/2019 Matcha white chocolate bites with original stuffing. In refined bag. www. expressions-aromatiques. com DURIAN FUJIYA Japan – 10/2019 Double layer chocolate bites with sparkling candy bits. With Sicilian lemon juice. Individually wrapped. LEMON SQUASH Source : XTC Innovations 6

SPICY FLAVOURS The move to more UPMARKET and INDULGENT options is also reflected in the use of more complex flavours such as SPICES. PATIENCE Canada – 02/2019 Organic chocolate bites with slow-dried cranberry flakes and crunchy brown rice. Rich in fibre and iron. Gluten free. DARK CHOCOLATE & CHAI SPICES LAMONTAGNE Canada – 03/2019 Roasted almonds coated with white chocolate and spices. PUMPKIN SPICE MAISON GUINGUET France – 09/2019 Sausage-shaped chocolate confectionery. Praline with hazelnuts, peanuts and Espelette chili pepper coated with milk chocolate and icing sugar. ESPELETTE CHILI PEPPER www. expressions-aromatiques. com GOODIO Finland – 11/2019 Organic vegan chocolate square infused with gluten-free oats. 24% of oats. CHILI PEPPER Source : XTC Innovations 7

FLAVOURS INSPIRED BY CAKES Chocolate innovation as a whole is thriving on INDULGENCE and FLAVOUR CREATIVITY such as those recent launches inspired by CAKE FLAVOURS. “Birthday cake” flavour has been enjoying increased popularity in the United States and the trend is expected to cross over to other markets. CLOETTA POLLY Sweden – 10/2019 MEIJI Japan – 10/2019 Assorted filled chocolates for coffee break. Bamboo shoot shaped flavoured sweets. Biscuits with strawberry shortcake flavoured chocolate coating. Limited edition. CINNAMON BUN MUD CAKE (American chocolate cake) BLUEBERRY PIE STRAWBERRY SHORTCAKE KITKAT (Hershey) United-States – 03/2020 KITKAT (Nestle) United-Kingdom – 03/2020 Birthday cake flavoured chocolate with a crisp wafer and colourful assortment of sprinkles. Limited edition. Crispy wafer bars with indulgent filling, in milk chocolate coating. BIRTHDAY CAKE www. expressions-aromatiques. com COOKIE DOUGH MILLIONAIRE’S SHORTBREAD Source : XTC Innovations 8

FLAVOURS INSPIRED BY BEVERAGES Several recent chocolate confectionery launches featured flavours and recipes inspired by the BEVERAGE CATEGORY. BAILEYS (Ireland – 01/2020) Heart-shaped chocolates filled with liqueur. STRAWBERRIES & CREAM LUTTI SPLEND'OR France – 11/2019 Assortment of chocolates with tea flavoured melting heart. Made in France. LOTTE CHARLOTTE (Japan – 03/2020) Chocolate filled with fruit tea flavoured jelly. With a layer of ganache. FRUIT TEA DARK CHOCOLATE + MATCHA + PRALINE MILK CHOCOLATE + MATCHA WHITE CHOCOLATE + GREEN TEA + RASPBERRY ASDA STORES LIMITED United-Kingdom – 02/2020 Whisky and spicy rum truffles with a glittery sprinkle. Made with UTZ certified cocoa. WHISKY & SPICED RUM www. expressions-aromatiques. com MARKS & SPENCER United-Kingdom – 03/2020 Assortment of pint shaped chocolates filled with selected beer: salted caramel beer, London porter beer and Cornish pale ale. BEER Source : XTC Innovations 9

SWEET & SALTY COMBINATIONS are gaining momentum as SALTED CARAMEL and SEA SALT were amongst the top trendy flavours in recent launches. FUJIYA (Japan – 10/2019) Chocolate bites with salted ice cream flavours. Selected salts from Lorraine & Tuscany. SALTED VANILLA or SALTED CARAMEL TRUFFETTES DE FRANCE (Chocmod) France – 01/2020 SNICKERS (United-States – 11/2019) INDECISIVE SNICKERS chocolate bar with a sweet and salty taste. With salted caramel nougat. Chocolate balls coated with salted pretzel pieces. SALTED PRETZEL CHOCO SNACK MONEY ON HONEY United-States – 11/2019 TIROL CHOCO Japan – 03/2020 Chocolate bites filled with wildflower honey caramel. Caramel made from honey instead of corn syrup. Made with fair trade certified ingredients. Chocolate bites with 5 cheeses and croutons in limited edition. With gouda, emmental, camembert, gorgonzola and cheddar powder. FRENCH SEA SALT 5 CHEESES SALTY & SWEET www. expressions-aromatiques. com Source : XTC Innovations 10

TRUFFLES Chocolate truffles are also ON-TREND as they are often associated with PREMIUMIZATION. Recent INTRIGUING launches included co-branding between Heinz and Fortnum & Mason. MAISON BOUTARIN France – 09/2019 Chocolate truffles with black garlic. Single origin cocoa. BLACK GARLIC BEYERS South Africa – 07/2019 Handmade gin truffles in a decorated box. CRANBERRY & HONEYBUSH GINGER & LEMONGRASS GIN & TONIC CEMOI France – 11/2019 Fancy truffles in a colourful box. Made in France. Drawing of a rooster on the packaging. COCOA, HAZELNUT or ORANGE www. expressions-aromatiques. com HEINZ X FORTNUM & MASON United-Kingdom – 02/2020 QUALITY STREET (Nestle) United-Kingdom – 03/2020 Chocolate truffles filled with HEINZ ketchup in co-branding. In heart-shaped box. Limited edition. Milk chocolate truffles with hazelnut flavoured centre covered with caramelized hazelnut pieces. TOMATO KETCHUP PRALINE TRUFFLE Source : XTC Innovations 11

HEALTHY TREATS Apart from functional ingredients, busy lifestyles are putting a spotlight on confectionery that can offer some STRESS RELIEF and MOOD BALANCING effects. CREATIVE NATURE United-Kingdom – 01/2020 Allergen-free crispy pea protein bites coated in chocolate. Low in sugar. Vegan. SALTED CARAMEL GOOD DAY CHOCOLATE United-States – 12/2019 GLICO GABA (Japan – 03/2020) Chocolate sweets enriched with GABA (gamma-aminobutyric acid) promoting relaxation. CBD-enriched chocolate confectionery for well-being. Help support stress. Contains 10 mg cannabidiol and 1 mg melatonin per chocolate confectionery. NATURAL LAWSON Japan – 03/2020 Almonds in a strawberry flavoured chocolate coating enriched with inulin. Low in carbohydrates. SLEEP CBD STRAWBERRY GLICO LIBERA Japan – 03/2020 Milk chocolate bites enriched with astaxanthin for eye health. 1 serving contains 6 mg of astaxanthin helping reduce eye strain. In resealable pouch. MILK CHOCOLATE FOR SLEEP www. expressions-aromatiques. com Source : XTC Innovations 12

CHOCOLATE COATED FRUITS Chocolate providers seek to increase the healthiness of their products. As such, CHOCOLATE COATED FRUITS are gaining momentum as an indulgent better-for-you snack. GREEN & BLACK'S United-Kingdom – 09/2019 GOOD & GATHER United-States – 12/2019 HENRY LAMBERTZ Germany – 01/2020 Dark chocolate balls with fair trade cocoa and fruit center. Natural flavour. Fair trade dark chocolate-coated banana chips. In resealable standup pouch. Natural flavour. Cornflakes coated with dark chocolate with cranberry and aronia. Fair trade cocoa. BLUEBERRY 54% COCOA & BANANA CRANBERRY & ARONIA www. expressions-aromatiques. com SIGNORA FELLINI Bulgaria – 01/2020 Assortment of raw fruit bites coated with chocolate. PINEAPPLE & HEMP; DRAGON FRUIT & FLAXSEED; MANGO & COCOA FREY FRUITY COATIES (Migros) Switzerland – 02/2020 Fruit balls coated with dark chocolate. Made with fair trade cocoa. Natural flavour. APPLE & PEACH Source : XTC Innovations 13

NUTS & PULSES CHICKPEAS THE HAPPY SNACK COMPANY (Australia – 12/2019) MY SWEET CHICKPEA United-Kingdom – 12/2019 Roasted chickpeas coated with dark chocolate and coconut. Vegan and gluten free. Roasted chickpeas coated with chocolate in bags-to-go. Vegan, gluten, nut and dairy free. DARK CHOCOLATE & RASPBERRY COCONUT & DARK CHOCOLATE THE GOOD BEAN United-States – 03/2020 Chocolate covered chickpeas. Contains 3 g of protein and 130 kcal per serving. Made with fair trade ingredients. MOCHA CHOCOLATE NUTS MAISON GUINGUET France – 09/2019 HENRY LAMBERTZ Germany – 01/2020 LAMONTAGNE Canada – 03/2020 Hazelnuts coated with chocolate. Hazelnuts from South West of France. Peanuts coated with white chocolate and sea salt. Fair trade cocoa. Pistachios with chocolate and a touch of Himalayan pink salt. MILK CHOCOLATE & CRÊPE DENTELLE WHITE CHOCOLATE & SEA SALT MILK CHOCOLATE & PINK SALT www. expressions-aromatiques. com Source : XTC Innovations 14

SUSTAINABLE Companies increasingly commit to meeting ever-growing consumer expectations around SUSTAINABILITY. TONY'S CHOCOLONELY United-States – 11/2019 PIP & NUT United-Kingdom – 12/2019 The confectionery is decorated with a broken chain as the brand wants to put an end to modern slavery and illegal child labour in the chocolate industry. Chocolate cups filled with real peanut butter. Ethically-sourced single origin Colombian chocolate. Gluten free, Vegan friendly, natural ingredients & high in fibre. CARAMEL SEA SALT FAZER Finland – 01/2020 Handmade pralines in compostable packaging, without microplastic. Made from wood chips and biodegradable binding agents. PEANUT BUTTER www. expressions-aromatiques. com 3 CHOCOLATES THEO CHOCOLATE United-States – 02/2020 Fair trade organic chocolate cup with indulgent filling. COFFEE & CREAM PEANUT BUTTER & JELLY Source : XTC Innovations 15

CHOCOLATE EASTER EGGS HONEYCOMB and HOT CROSS BUN flavours are definitely on-trend. A Hot Cross Bun is a spiced sweet bun usually made with raisins; while Honeycomb is a crispy puffed caramel. DIVINE United-Kingdom – 01/2020 Milk chocolate Easter egg with raisins and spiced cookies. With mini milk chocolate eggs inside. Fair trade. HOT CROSS BUN NOMO NO MISSING OUT United-Kingdom – 02/2020 Gluten-free vegan chocolate egg and bar in a colourful packaging. Dairy, egg and nut free. ALDI United-Kingdom – 03/2020 Alcohol infused milk chocolate egg. PROSECCO & RASPBERRY CARAMEL & SEA SALT www. expressions-aromatiques. com ASDA United-Kingdom – 03/2020 GALAXY (Mars) United-Kingdom – 03/2020 Allergen-free vegan chocolate eggs. Gluten, milk and egg free. No artificial colours or flavours. Chocolate eggs with caramel chips rolled in rose gold coloured coating. HONEYCOMB ENCHANTED EGGS Source : XTC Innovations 16

CHOCOLATE EASTER FIGURES are a good option for children and adults as well, when they feature more COMPLEX FLAVOUR PROFILES. SMARTIES (Nestle) United-Kingdom – 01/2020 SMARTIES chocolate bunny with a funny design. MILK CHOCOLATE & CANDIES COCOA LIBRE United-Kingdom – 01/2020 KITKAT (Nestle) United-Kingdom – 01/2020 Rabbit-shaped duo of vegan chocolates. No dairy. No wheat, nuts or peanuts. No gluten. Rabbit-shaped KIT KAT chocolate confectionery. Chocolate with crunchy wafer pieces. Fish, hen or egg-shaped organic Easter chocolate. ORANGE MILK & DARK CHOCOLATE EASTER BREAK DARK or MILK CHOCOLATE www. expressions-aromatiques. com CEMOI France – 02/2020 LINDT LAPIN OR France – 02/2020 Rabbit-shaped 70% cocoa dark chocolate for Easter. Covered with golden paper, with a bell around the neck. 70% COCOA Source : XTC Innovations 17