Milling & Baking News Corporate Profiles - 2019 - 44

INDUSTRY REVIEW: CONFECTIONERY

Hazelnut Spread candies. Developing the proprietary technology to produce
the candies was a multi-year effort and among the company's largest technical
endeavors.

Investing in quality
Longstanding brands are introducing new formulations and forms to remain
relevant to today's consumer. Boyer Candy Co., Altoona, Pa., the maker of Clark
Bar, launched Clark Cups, which are peanut butter cups incorporating the century-old chocolate bar brand's signature crunch. Boyer, which produces the Mallo
Cup, bought the rights, recipes and equipment for the Clark Bar brand in 2018
after its previous owner,The New England Confectionery Co., filed for bankruptcy.
The Chick-O-Stick from Atkinson Candy Co., Lufkin, Texas, features an updated recipe with simple ingredients and more peanut butter. The product,
characterized by its flaky, crunchy combination of peanut butter and toasted
coconut, originated in the 1940s. Atkinson said it has removed artificial red
and blue coloring in favor of colors derived from turmeric and vegetable juice
concentrate.
Ferrero North America, Parsippany, N.J., is benefiting from investments in
increased marketing and recipe improvements for the chocolate brands formerly owned by Nestle USA, Arlington, Va., including Butterfinger, Baby Ruth
and Crunch.
"The United States is the No. 1 confectionery market in the world," said Paul D.
Chibe, president and chief executive officer of Ferrero North America. "We believe
there is still significant opportunity to grow the business here as people look for
quality. Our company is known for quality. And that's where the megatrend is.
"People are looking for better products in every class of food, beverage and
at home. We happen to be a company that has a 70-year legacy of being maniacally focused on quality, and it's playing to our strengths right now."
Millennials are changing the purchasing patterns for chocolate and are more
likely to choose small-batch products with unique flavors and textures and

LEADING

Mars Wrigley
Mondelez International, Inc.
The Hershey Co.
Perfetti Van Melle
Ferrero USA, Inc.
Project 7, Inc.
The Pur Co., Inc.
The Topps Co., Inc.
Xlear, Inc.
Starbucks Coffee Co.
Total

Dollar sales
$948,119,196
$357,304,317
$236,977,621
$203,073,200
$33,288,599
$6,238,390
$2,278,152
$552,977
$485,911
$416,241
$1,789,748,708

Cannabis in candy
Cannabis is a friend and foe to the confectionery industry, said Marcia Mogelonsky, Ph.D., director of insight at Mintel Food & Drink, Mintel. The effect of
a growing recreational marijuana market may create major challenges as well
as opportunities for manufacturers.
"The most popular way to enjoy recreational marijuana is through edibles,
including chocolate and candy," Dr. Mogelonsky said during a presentation at
the Sweets & Snacks Expo, held May 21-23 in Chicago.
Recreational marijuana is legal in 10 states and the District of Columbia,
Canada and several European markets. In a survey of legal cannabis users,
58% said they are interested in chocolate candy edibles, and 47% are interested in sugar confectionery edibles, according to Mintel.
"There's going to be lots of room to develop chocolate and gummies and gum
with recreational marijuana in them," she said. "There's a synergy ... and it's
especially popular among the youngest cannabis users. They're in fact trading
alcohol use for cannabis use, and they're getting their cannabis through candy."
In the case of cannabis, established confectionery companies may develop
completely new brands marketed to adults for the edibles market, she said.
"That has got to be key, is making sure these things do not appeal to kids,"
she said. CP

LEADING

sugarless gum vendors
1
2
3
4
5
6
7
8
9
10

high-quality ingredients, according to a report released by the National Confectioners Association.
"We found that the fine chocolate consumer is generally younger, more socially conscious and more driven by experimentation and trial, even if they
already have a favorite chocolatier," said Bill Guyton, executive director of Fine
Chocolate Industry Association. "Fine chocolate consumers believe small-batch
chocolate has a superior taste and are willing to seek it out, visiting farmer's
markets, festivals and specialty online channels more frequently than other
chocolate consumers."

sugarless gum brands
% change
from
year ago
3.6%
-4.8%
7.8%
8.1%
37.1%
-13.6%
31.2%
-28.0%
-28.3%
-3.3%
3.2%

1
2
3
4
5
6
7
8
9
10

Wrigley's Extra
Ice Breakers Ice Cubes
Trident
Orbit
Mentos Pure Fresh
Wrigley's Eclipse
Wrigley's 5 Cobalt
Wrigley's 5 Rain
Orbit White
Trident White
Total

Dollar sales
$390,196,080
$236,924,615
$233,883,342
$193,266,728
$149,156,687
$90,118,905
$70,671,170
$58,505,636
$42,421,970
$38,501,152
$1,789,748,708

% change
from
year ago
11.4%
7.8%
-8.4%
-8.2%
10.7%
-8.8%
11.6%
6.1%
-3.5%
-9.3%
3.2%

Data for 52 weeks ended Aug. 11, 2019
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.

44 \ November 2019

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