A Dramatic Sales Turnaround for a Heritage Brand

The State of the Brand

This heritage chocolate brand invented the sugar-free chocolate category during the 1980s with a product that tasted just like regular chocolate. Because it was marketed as a product for consumers with diabetes and other dietary concerns, it sold well but remained a niche product. As Russell Stover leveraged multi-decade distribution channels through mass-market food and drug chains, the brand built and led the sugar-free chocolate category.

That is, until a host of competitors, notably Hershey, started flooding the market and sent Russell Stover Sugar Free into a three-year sales decline. They came to us under threat from competitors and retail partners who were moving to reallocate their shelf space.

How We Helped

When the brand team came to us for help repositioning Russell Stover Sugar Free, our 360° Brand Development process revealed two opportunities: an untapped audience and a packaging positioning reset.

First, there was an emerging class of consumers looking to reduce sugar intake for all kinds of wellness and lifestyle reasons. Russell Stover Sugar Free wasn’t in their consideration set, and no other brands were meeting their needs, either. These consumers were seeking natural products; sugar alcohol substitutes weren’t cutting it.

We advised altering their ingredient deck by swapping natural stevia for sucralose. In research, consumers told us they’d rather reduce their chocolate intake than eat a product with artificial ingredients. An extensive testing and formulation process landed on a product that looked and tasted indulgent.

Second, the consumer insights we unearthed during our 360° Brand Development showed that the original packaging and positioning, as a diabetic-friendly product, signaled “diet” and deprivation. When it was launched, the predominantly green packaging played in the same category as other “diet” foods like SnackWell’s and Healthy Choice.

But for the broader market of chocolate lovers (which is pretty much everybody), the old packaging looked more like a lousy alternative than a treat. Our packaging renovation leaned heavily into the nostalgia that comes with the Russell Stover master brand and the company’s legacy of chocolate making. Copy highlighted that the product is made in small batches by chocolate artisans, just as it’s always been. Updated messaging centered around the emotional and celebratory occasions when people gift and enjoy chocolates — not around the sugar-free-ness.

By combining a new ingredient profile that appealed to a natural-oriented consumer with the brand’s emotional legacy, we created an unmatchable position of differentiation.

The Results 

Talk about a turnaround. Per their annual report, Russell Stover Sugar Free reversed its precipitous sales decline in just six months, producing 33% growth over that period. And they were able to stave off Hershey, which threw three brands at their sugar-free initiative. Channel partners, including their biggest outlet, Walmart, were energized by the brand’s evolution; the new products flew off shelves. Russell Stover Sugar Free pirouetted to become the category leader again, ranking #1 in dollar and product volume, #1 in repeat customers, and a host of other metrics.

If this kind of brand acceleration appeals to you, let’s talk about what we can do for your business.

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Founder, President, & Chief Strategist
David was two decades into a design career with a wall full of shiny awards and a portfolio of clients including Nordstrom, Starbucks, Nintendo, and REI. His rocket trajectory veered when his oldest child faced a health challenge of indeterminate origin. Hundreds of research hours later, David identified food allergy as the issue and convinced skeptical medical professionals caring for his child. Since that experience, David and Retail Voodoo have been on a mission to create a cleaner, healthier, more sustainable food system for all.

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