According to an article in the Wall Street Journal, Nestle’s strategy of diversifying it’s KitKat brand has fallen flat on its face, to the tune of an 18% drop in overall sales. Nestle, who released 12 different KitKat varieties in the UK, has canceled all but 2, Tiramisu and Caramel, which were the 2 best performing of the 12.
The company blames brand dilution and over saturation, and the executive in charge of the varieties has been fired. Nestle also set up a consumer hotline to field calls and hear what consumers thought of the new flavors, where most responded with “It was nice to try them once, but I’m not sure I’ll buy them again.” Which I often find myself saying when trying some obscure limited edition flavor of a long established brand. They said that they will continue to make minor changes in the brand, but nothing drastic as releasing 12 different flavors. They have since launched a Peanut Butter Chunky Kat bar.
Also, in the article is a line where they mention that the Caramel KitKat will be coming out in America sometime this year…so keep you eyes peeled for that – it sounds great!
- WSJ article in the Post-Gazette
- WSJ article in MoneyWeb
- More KitKat coverage at Candy Addict
- KitKats at Wikipedia