Milling & Baking News Corporate Profiles - November 2013 - (Page 52)

Confectionery Confectionery Segment in recovery, but new challenges beckon S ales of chewing gum, sugar candies and chocolates appear to be recovering from the worst of the Recession, but the confectionery category still faces challenges, despite improving macroeconomic conditions worldwide. Global sales, which were $185.5 billion in 2012, recently were projected by Euromonitor International to reach $206 billion by 2016. Other challenges include inflation, employment rates, government regulation and shifting consumer preferences. One of the winners in this evolving marketplace is chocolate, especially dark chocolate. From 2007 to 2012, the whole chocolate confectionery market grew 19%, said market research company Mintel. Mintel's market research in 2013 has shown that dark chocolate, which contains less sugar and more chocolate than milk chocolate and features antioxidants, is gaining in popularity. About 35% of adult consumers in 2013 favor it, up from 33% in 2011. A total of 73% of all chocolate consumers are aware that dark chocolate may be a healthier choice. This attitude toward chocolate - with consumers viewing an indulgent product through the lens of good-for-you eating - is indicative of the key trends to hit confectionery: health and wellness. Manufacturers are facing how to make items that are often impulse purchases with little clear nutritional value seem "better for you" than before. To this end, they have experimented with portion size, sweeteners and formulas incorporating dried fruits and nuts as well as using dark chocolate. The confectionery marketplace also is creating indulgent foods that coopt other current food trends, such as melding salt and sweet and adding hot, spicy flavors to chocolate. To this end, some interesting flavors have been created of late, such as a Tabascoflavored jelly bean, candy with added LEADING chocolate candy vendors BOX/BAG/BAR <3.5 OZ 1 2 3 4 5 6 7 8 9 The Hershey Co. Mars, Inc. Nestle USA, Inc. DeMet's Candy Co. Russell Stover Candies, Inc. Ferrero USA, Inc. Lindt & Sprungli A.G. Tootsie Roll Industries, Inc. Whitman's Chocolates Private label Total Dollar sales $1,911,832,000 $1,480,372,000 $195,052,000 $36,681,590 $30,506,580 $28,580,220 $20,200,710 $19,645,270 $11,632,530 $11,192,120 $3,903,790,000 % change from year ago 9.1% -4.2% 7.6% -1.3% 86.2% 15.6% 36.7% -7.4% -10.9% 51.0% 3.8% bacon flavor and a big expansion of chocolate candies with sea salt added to high-quality dark chocolate. Consumers have shown a greater willingness to pay extra for top-quality ingredients in confectionery foods that most people use to reward themselves. A sticking point for domestic chocolatiers is that, recovering economy or not, Americans consume less LEADING chocolate candy brands BOX/BAG/BAR <3.5 OZ 1 2 3 4 5 6 7 8 9 10 Reese's M&Ms Snickers Hershey's Kit Kat Twix 4 To Go 3 Musketeers Hershey's Cookies 'N Creme Milky Way Peter Paul Almond Joy Total Dollar sales $509,854,400 $500,816,100 $456,907,600 $324,634,600 $306,505,100 $116,131,500 $101,271,100 $100,700,700 $93,457,100 $82,245,800 $3,903,790,000 % change from year ago 7.7% -3.2% -3.0% 7.8% 22.2% -4.6% -9.6% 1.7% 5.2% 1.9% 3.8% Data for 52 weeks ended Sept. 8, 2013 Total U.S. - Multi-outlet with C-Store (Supermarkets, Drugstores and Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains) Source: Information Resources, Inc. 52 \ November 2013 Milling & Baking News * Food Business News * Baking & Snack * Meat & Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - November 2013

Milling & Baking News Corporate Profiles - November 2013