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candy

can·dy / ˈkandē/ • n. (pl. -dies) a sweet food made with sugar or syrup combined with fruit, chocolate, or nuts. ∎  sugar crystallized by repeated boiling and slow evaporation. • v. (-dies, -died) [tr.] [often as adj.] (candied) preserve (fruit) by coating and impregnating it with a sugar syrup: candied fruit.

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candy

candy
1. Crystallized sugar made by repeated boiling and slow evaporation.

2. USA; a general term for sugar confectionery.

See also toffee.

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Candy

Candy

to form into congelationsJohnson, 1755; to be in a congealed state.

Example: candied with iceShakespeare.

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candy

candy XVIII. — F. (sucre) candi SUGAR-CANDY.

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candy

candy: see confectionery.

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candy

candybaddy, caddie, caddy, daddy, faddy, kabaddi, laddie, paddy •alcalde, Chaldee, Fittipaldi, Vivaldi •Andy, bandy, brandy, candy, dandy, Gandhi, glissandi, handy, jim-dandy, Kandy, Mandy, modus operandi, Nandi, randy, Río Grande, sandhi, sandy, sforzandi, shandy •cadi, cardy, Guardi, Hardie, hardy, jihadi, lardy, Mahdi, mardy, Saadi, samadhi, tardy, Yardie •foolhardy • autostrade •already, Eddie, eddy, Freddie, heady, neddy, oven-ready, ready, reddy, steady, teddy, thready •bendy, effendi, Gassendi, modus vivendi, trendy, Wendy •Monteverdi, Verdi •Adie, Brady, lady, milady, Sadie, shady •landlady • charlady • saleslady •beady, greedy, needy, reedy, seedy, speedy, tweedy, weedy •wieldy •biddy, diddy, giddy, kiddie, middy, midi •higgledy-piggledy •Cindy, Hindi, indie, Indy, Lindy, Rawalpindi, shindy, Sindhi, Sindy, windy •perfidy • raggedy • tragedy • remedy •comedy, tragicomedy •Kennedy • Cassidy • accidie • subsidy •bona fide, Heidi, mala fide, tidy, vide

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Candy

Candy

INDUSTRIAL CODES

NAICS: 31-1340 Nonchocolate Confectionery Manufacturing

SIC: 2064 Candy and Other Confectionery Products (nonchocolate confectionery)

NAICS-Based Product Codes: 31-13401001, 31-13401004, 31-13401007, 31-13401015, 31-13401021, and 31-13401026

PRODUCT OVERVIEW

While the demand for chocolate continues to be strong, non-chocolate candy also finds frequent favor with consumers seeking to satisfy a sweet tooth. The human love of sweet treats can be traced all the way back to cavemen who extracted honey from beehives, according to a timeline prepared by the National Confectioners Association (NCA). In Europe's Middle Ages, sugar candy was a delicacy available only to the rich, but by the seventeenth century boiled sugar candies were popular in both England and the American colonies. By the mid-1800s almost 400 American factories were producing candy, which usually took the form of penny candy sold loose from glass cases. Americans also enjoyed homemade hard candies such as peppermints and lemon drops. By the late 1800s the discovery of sugar beet juice and the development of more efficient mechanical equipment led to the introduction of such products as candy corn in the 1880s and Tootsie Rolls in 1896.

Other items on the timeline include: peppermint sticks, 1901; NECCO Wafers, 1901; Conversation Hearts, 1902; Life Savers, 1912; the chewy candies that would eventually be called Gummi Bears, 1922; Tootsie Roll Pops, 1931; Marshmallow Peeps, 1954; Atomic Fireballs, 1950; Starburst Fruit Chews with Vitamin C, 1960; and Lemonheads, 1962.

According to the NCA, the stories behind some of the most popular candies are as follows:

Candy Canes

Candy canes can be traced, or so goes the legend, to 1670 when the choirmaster of the Cologne Germany Cathedral handed out sugar sticks to his singers. It wasn't until the beginning of the twentieth century, however, that red and white stripes and peppermint flavor became the accepted norm.

Candy Corn

Candy corn was invented in the 1880s by George Renninger, who worked for the Wunderlee Candy Company. The revolutionary three-color design was very popular, but the candy was produced only seasonally from March to November. The machinery was needed for other products during the remaining years. Candy corn has remained a Halloween favorite.

Conversation Hearts

Conversation hearts, usually sold for Valentine's Day, can perhaps trace their origin to homemade candies made by American colonists, who scratched love notes on the surface for Valentine's gifts.

NECCO Wafers

NECCO Wafers were first produced in 1912 by the New England Confectionery Company, with the name derived from the company's initials. The company was formed by the merger of three candy companies, including Chase and Company, which had been producing mints in Canada since 1847.

Lifesavers

Lifesavers were developed in 1912 by Cornelius Crane, a chocolate manufacturer, as a product to be sold in summer when chocolate sales were down. A malfunctioning machine created holes in the centers of the candies, and the company kept the design, naming the new confection for it.

Cotton Candy

Cotton candy can be attributed to several sources. John Wharton and William Morrison received a patent for a cotton candy machine in 1899, and they took their invention to the St. Louis World's Fair in 1904. Thomas Patton received a patent in 1900 for a machine that used a different process to spin the cotton candy threads. A more reliable machine was introduced in 1949 by Gold Medal Products, which made the confection widely available at circuses, amusement parks, and fairs.

Gummi Bears

Gummi bears and other Gummi candies were invented in Germany in 1922 by Hans Riegel, who formed the Haribo Company. In 1981 the Herman Goelitz Company, which later became the Jelly Belly Candy Company, began making Gummi Bears in America. Gummi worms were introduced in 1981, and a wide variety of shapes followed. In 1985 Walt Disney introduced the cartoon show, The Adventures of the Gummi Bears.

Jelly Beans

The jelly center of jelly beans is generally traced to Turkish Delight, a Middle Eastern treat since Biblical times. The shell coating became possible in the seventeenth century when the panning process was invented in France to make Jordan Almonds. Objects such as almonds or the jelly centers are coated by being rocked in large rotating pans of syrup. Jelly beans were popular penny candies in the United States. They have been associated with Easter since the 1930s because of their egg-like shape.

Licorice

Licorice, which comes from the glycyrrhiza plant, was enjoyed as long ago as the time of the pharaohs. Crusaders brought the candy back to England from the east, and an English monastery eventually began making it. The colonists brought a number of licorice recipes to America.

Lollipops

Lollipops, hard candies on a stick, may have made their first appearance during the U.S. Civil War, when pieces of candy were placed on the ends of pencils for children. George Smith invented one version of the modern lollipop in 1908, putting hard candies on a stick and naming them after his favorite racing horse, Lolly Pop. The Racine, Wisconsin, Confectioners Machinery Company created a machine that could make 40 lollipops per minute. In 1916, Samuel Born, a Californian, invented another version that he called the Born Sucker machine.

Marshmallows

Marshmallows trace their history to ancient Egyptians, who made a special treat from the mallow plant that grows in marshes. In France in the mid-1800s, candy stores began painstakingly whipping the mallow sap into fluffy texture to fill molds. In the late 1800s, the starch mogul system was invented in which the candies were formed by machines in molds of modified corn-starch, and candy makers replaced the mallow root with gelatin. The Girl Scout Handbook in 1927 printed the first known recipe for s'mores, which combined toasted marshmallows, chocolate, and graham crackers. In 1948 an extrusion process was invented by Alex Doumak in the United States, and the marshmallow became very popular as an ingredient in many recipes in the 1950s. Americans are now the main consumers of marshmallows.

Taffy

Taffy has been popular in American since the late 1800s, and salt water taffy first appeared in Atlantic City, New Jersey, at the end of the nineteenth century. One version of the story traces the treat to an 1883 storm that flooded the boardwalk and led storekeeper David Bradley to jokingly offer his soaked candy as salt water candy. Many manufacturers of salt-water taffy, popular in seaside resorts, still add a little salt to the taffy.

MARKET

The United States is the world's biggest candy market. The U.S. Census Bureau reports on candy makers in a report titled Confectionery: 2006. This publication reported that candy producers shipped more than 1 million tons of non-chocolate confectionery in 2006, merchandise with a wholesale value of $4.733 billion. The National Confectioners Association (NCA) estimated that non-chocolate retail sales in 2006 totaled $8.9 billion, compared to $15.6 billion in retail sales of chocolate candy and $2.7 billion in sales of gum.

The Confectionery: 2006 report broke down the $4.733 billion in industry shipments of non-chocolate candy as follows: hard candy, $1.32 billion; chewy candy, including granola bars, $1.47 billion; soft candy, $887 million; iced/coated candy, $33 million; panned candy, $756 million; and licorice and licorice type, $257 million.

The U.S. International Trade Administration (ITA) calculates export value as the total transaction price at seaport, airport, or border ports of exportation, including transportation costs to the port, insurance, and other expenses. Using this method, the United States exported $356.5 million worth of non-chocolate candy in 2006, with $186.9 million of that going to Canada. Other export destinations included Mexico, $35.78 million; Australia, $14.65 million; Korea, $11.44 million; and the United Kingdom, $10.57 million.

The ITA reported $1.44 billion in customs value of imports of non-chocolate candy, including $553.48 million from Canada; $385.35 million from Mexico; $101.34 million from China; $43.78 million from Brazil; $40.15 million from Spain, and $31.96 million from Germany.

Candy Industry reported in June 2007 that while the United States remained the world's biggest spender on candy, other segments of the global market were increasing rapidly as consumers with rising incomes developed a taste for sweets. In response, manufacturers increasingly began supplying products catering to local tastes. The growth of a modern distribution and retail infrastructure in many countries also contributes to rising sales.

Using figures obtained from Euromonitor International, a London-based research firm, Candy Industry said that 2006 confectionery sales in Asia-Pacific rose 9 percent over 2005, in Eastern Europe 18 percent, and in Latin America 23 percent. Euromonitor figures placed 2006 global sales of chocolate candy at $74.1 billion and non-chocolate at $43.6 billion.

The candy category has a number of attributes that promote sales, Confectioner reported in 2006. One is impulse consumption, with a high percentage of consumers buying front-end display confectionery products. Another is the product's expandable nature, as opposed to items with finite usage such as toothpaste. Affordability is also important, with 79 percent of snacks that are sold through the food/drug/mass/convenience channels costing less than $1.

Andrew Lazar, a packaged foods analyst for Lehman Brothers, spelled out some of the challenges threatening the market in a keynote address at the 2006 NCA State of the Industry Conference in Orlando, Florida. He warned that costs of ingredients, energy, and packaging were going up, forcing price increases. He called consumers schizophrenic and demanding. "The consumer who will spend $4 on a latte is the same consumer who will stand in line at Costco to save on a pack of paper towels," he said.

Consumers were also variety-seeking, he said, making constant innovation necessary. He stressed that candy makers were not just competing with other candy companies. "Every one of you is competing with Procter & Gamble and Pepsico … because they all want that retail space, and they're good at getting it," he said. In another sense, candy companies are also competing against the whole snack market, with impulse buyers making such choices as candy versus chips for a quick break.

Another important factor in the U.S. candy market is seasonal sales. The NCA reported that non-chocolate candy sales increased 12.3 percent for Easter 2007 compared to 2006. Valentine's Day non-chocolate sales increased 11.9 percent for 2007. Halloween 2006 non-chocolate sales were 1.2 percent higher than 2005 sales. Candy sales at Christmas, however, were facing greater competition from gift cards and other purchases, the NCA said. While total candy sales were up 1 percent for Christmas 2006 over 2005, sales of non-chocolate candies were down 2.8 percent.

KEY PRODUCERS/MANUFACTURERS

The 2002 Economic Census listed 475 companies in the United States that manufactured non-chocolate candy. These ranged from corporate giants to small owner-operated firms that reported a payroll for any part of the year. Figure 42 lists the top ten companies in the confectionery industry in the United States. A profile of the top four companies follows.

Company Sales in million dollars Percent of market
Hershey Company32.9013.64
Wrigley Company29.6012.27
Masterfoods USA23.709.82
Just Born, Inc.17.607.29
Nestle USA, Inc.16.106.67
Brach's Confections, Inc.13.905.76
Tootsie Roll Industries, Inc.6.502.69
Ferrero USA, Inc.5.402.24
Jelly Belly Candy Company5.092.11
Cadbury Adams USA, LLC4.801.99

Hershey Company

Although The Hershey Company is generally thought of as a chocolate maker, Hershey was also the leading non-chocolate candy maker in terms of 2006 U.S. sales at supermarkets, drug stores, and mass merchandisers (excluding Wal-Mart). With sales of $32.9 million, Hershey accounted for 13.64 percent of the market.

On a dollar basis, Hershey's sales are about 75 percent chocolate and 25 percent non-chocolate products. In fact, the first product produced by Milton S. Hershey, the company founder, was caramel candy, not chocolate. Non-chocolate products now include breath mints Ice Breakers and Breathsavers, Twizzlers (which represents 87.8 percent of vending machine licorice sales), Good & Plenty, and Jolly Rancher. Located in Hershey, Pennsylvania, Hershey is the largest North American candy maker, and it employs more than 13,000 people worldwide.

Wrigley Company

Ranked second in the U.S. market is Wrigley with $29.6 million in non-chocolate sales and 12.27 percent of the market. Wrigley markets Life Savers, the top brand of non-chocolate candy and mints. Other products include Airwaves, Altoids mints, Crème Savers, Eclipse, and Orbit mints. Chicago-based Wrigley, which is the world's largest manufacturer of gum, has global sales of more than $4 billion.

Masterfoods USA

The third largest U.S. candy maker is Masterfoods with $23.7 million in U.S. candy sales and a 9.82 percent market share in 2006. Masterfoods is a division of leading candy maker Mars, which is privately held by the Mars family. The non-chocolate candies made by Masterfoods include Skittles and Starburst.

Just Born Inc.

With 2006 U.S. candy sales of $17.60 million Just Born had a 7.29 percent market share. Just Born is a privately owned company founded in 1923 and located in Bethlehem, Pennsylvania. The company has more than 560 employees and markets its candy in more than 50 countries. Products include Marshmallow Peeps, its original product, as well as jelly beans and movie favorites Mike and Ike, Hot Tamales, and Zours.

MATERIALS & SUPPLY CHAIN LOGISTICS

The largest categories of ingredients used by the non-chocolate candy industry are sugar, corn sweeteners, dairy products, peanuts, and tree nuts such as almonds and walnuts. The delivered cost of the materials used in 2002 by the 475 companies in the United States that made non-chocolate candy was $1.9 billion, according to the 2002 Economic Census. Figure 43 provides a detailed breakdown of the costs of materials used by U.S. candy makers in 2002.

Ingredients and Materials Cost (thousands of dollars)
1 Data are from the 1997 Economic Census
Ingredients
Cane and beet sugar solids194,000
Dextrose and conr surup123,900
Essential oils and flavors144,300
Sugar substitutes94,600
Milk and milk products31,700
Raw nutmeats31,700
Fats and oils27,800
Chocolate coatings26,000
High fructose corn surup21,300
Processed nutmeats19,500
Fruits, fresh and dry19,380
Cocoa3,600
Unsweetened chocolate liquor3,600
Dry fructose918
Nuts in shell1890
Packaging Supplies
Paper and coated film198,300
Paperboard containers176,000
Aluminum foil25,370
Plastic containers11,000
Metal cans, tins, and lids8,860
Glass containers8,400
All other packaging materials381,800

As can be seen in Figure 43, sugar in various forms is a key ingredient for the candy industry, and the cost of sugar is a major problem. In 2005 Congress directed the Secretary of Commerce to report on whether jobs had been lost because of the differential between U.S. and world sugar prices. The resulting report stated that the U.S. used 17.8 billion pounds of refined sugar in 2003, down from 18.5 billion pounds in 1999, with about 85 percent of the sugar produced domestically and the rest imported. Employment in sugar-containing products decreased by more than 10,000 jobs between 1997 and 2002. The three main sugar-using industries were non-chocolate confectionery, chocolate and chocolate confectionery, and breakfast cereal.

In 2004 the price of U.S. refined sugar was 23.5 cents per pound compared to the world price of 10.9 cents, with the U.S. price kept high by price supports and quotas. As a result a number of U.S. manufacturers closed or relocated, with many going to Canada or Mexico. The report calculated that for every agricultural job saved by the price supports, three manufacturing jobs were lost. In addition, the loss of manufacturing was contributing to the trade imbalance, with imports of sugar-containing products growing from $6.7 billion in 1990, to $10.2 billion in 1997, and then to $18.7 billion in 2004.

The NCA has worked to bring this issue to the attention of legislators and has lobbied in support of trade agreements such as CAFTA (the U.S. Central American-Dominican Republic Free Trade Agreement) that allow U.S. manufacturers to purchase some sugar from Central American growers at world market prices.

Also of concern to the NCA are federal labeling regulations for food ingredients that are common allergens. The organization has initiated an education program for its industry members and works with the Food and Drug Administration (FDA) and its members to be sure that labeling is sufficient to ensure safety. About 5 to 8 percent of children have food allergies, according to the NCA. The ingredients that cause 90 percent of allergic reactions are milk, eggs, peanuts, tree nuts, soy, wheat, fish, and shellfish.

The growing interest in health issues has also affected the nature of materials purchased by the industry. Confectioners are using more fruits, nuts, and seeds, particularly ingredients such as blueberries and almonds, both known to carry high levels of antioxidants.

There also has been an interest in value-added ingredients that contain functional substances such as prebiotic and probiotics (substances that improve health through beneficial bacteria), calcium, antioxidants, and vitamins. These ingredients can create new manufacturing concerns such as avoidance of temperatures that break down important enzymes.

Candy Industry reported in 2006 that the increased demand for healthy and organic products had led to shortfalls and supply chain issues. The magazine quoted the Organic Trade Association's 2006 Manufacturer Survey, which said that 52 percent of respondents had reported that a "lack of dependable supply of organic raw materials has restricted their company from generating more sales of organic products." The magazine predicted that the shortfalls would persist, with milk and almonds, organic ingredients of particular interest to confectioners, being in particularly short supply.

DISTRIBUTION CHANNEL

Candy is sold widely in venues ranging from super-size warehouse stores to concession stands at Little League baseball games and vending machines in hospital waiting rooms. Bed, Bath & Beyond sells candy that it markets for instant consumption, at home use, and gifts. Even Amazon.com now sells candy from suppliers around the world.

In its Confectionery Industry Review 2006 Year End, the NCA reported sales in the following channels for 2006, including the percentage increase or decrease over 2005: Supermarkets, $4.3 billion, +0.1 %; Wal-Mart, $3.2 billion, +6.7 %; Mass other than Wal-Mart, $1.3 billion, +1.5 %; Convenience Stores, $4.2 billion, +9.4 %; Drug no change; vending machines, $1.2 billion, +0.5 %; bulk sales, $1.5 billion, −0.4 %.

The wide range of sellers makes candy distribution networks particularly important. In 2005 an estimated 60.7 percent of candy was sold directly by manufacturers to retail stores, and 39.3 percent went through retail distributors known as brokers.

For the brokers, the first decade of the twenty-first century has been a time of economic turmoil as such major corporations as Hershey Foods, Amurol Confections Company (a subsidiary of Wrigley), and Willy Wonka Candy Factory took their sales in-house, removing business from brokers. In early 2004 Professional Candy Buyer quoted one estimate that nearly $1 billion had been sucked out of the candy brokerage business. Others noted, however that the business is cyclical. Masterfoods, for example, dropped its internal sales force in favor of brokers at the same time that Hershey took its sales force direct.

The companies that went to in-house sales said they were making the move to benefit retailers by cutting costs and offering a single point from which to order and distribute. Some brokers noted bitterly that they had built up small candy companies by distributing their products widely, only to see these companies go to direct sales. They also questioned whether in-house systems would overlook small retailers such as local ballparks and swimming pools. Brokers claim that the loss of sales through small retailers could have a long-term negative impact since sales through these local outlets are known to build children's brands.

Distributors, whether in-house employees or brokers, push for the maximum shelf space, the most effective displays, and valuable checkout-line space for their products. One issue of concern to these distributors is a growing tendency to install self-checkout lines in supermarkets. Customers busy scanning their groceries have little time to think about impulse buys. In addition, installation of self-checkout lines, which usually requires eliminating three or four traditional checkout lines, is generally done by the operations department with little consultation with the store's merchandising team.

Representatives of candy companies are working to convince stores that with a little creativity, it is possible to place effective display racks near self-checkout lines. They point out that candy, gum, and mints account for 32 percent of front-end sales and almost 34 percent of front-end profits.

One distribution issue that has been of concern to the industry is an October 2005 decision by the National Motor Freight Traffic Association to change the freight classification for candy. The price of sending less-than-truckload shipments is negotiated based on this classification. The Freight Association ruled that candy packages were less dense than indicated by their classification, which meant the product was taking up more space in trucks. The new rating resulted in higher shipping rates for the entire industry. The NCA appealed, and while it did not get candy back to its old classification, it obtained an agreement with the trucking industry on a sliding classification based on actual density. This meant that shippers of dense packages were charged less.

KEY USERS

Almost everyone eats candy. The NCA estimates that 99 percent of U.S. households purchase candy during the year. Children are an especially important market for non-chocolate candy makers, and many products are developed especially to appeal to younger customers. With a variety of sugar-free products, as well as organic candy and candy formulated to deliver nutrients such as calcium, even the health conscious, diabetics, and dieters can enjoy candy in moderation.

ADJACENT MARKETS

In addition to chocolate candy, non-chocolate candy competes with a large array of snack foods that are generally eaten between meals. In this sense, candy competes with ice cream bars, frozen fruit bars, fruit rolls, single-serving containers of yogurt, energy drinks, granola bars, cup cakes, cookies, and even beef jerky. Many of these snack foods aim for the same checkout-line impulse buyers who drive up candy sales.

Although these products can be found under various headings in government reports, there is a NAICS (North American Industrial Classification System) code for snack food manufacturing that includes nuts, chips, pretzels, popped popcorn, and even pork rinds. In 2005 U.S. snack food producers shipped $20.8 billion in products, compared to $15.1 billion for all confectionery products except gum and $4.7 billion for non-chocolate candy.

The snack food industry, like the candy industry, has been affected by the growing interest of American consumers in health and diet, with many more products featuring whole grains and an expanding list of snacks available in 100-calorie individual serving packs.

RESEARCH & DEVELOPMENT

The NCA collects information and supports research of interest to both the chocolate and the non-chocolate candy industry. It also conducts education programs in areas of interest to its members. The NCA, for example, sponsored research presented at the 2006 All Candy Expo on techniques to grow confectionery sales. The organization sponsored a multi-year, in-store study by Dechert-Hampe, Inc., aimed at learning more about the category and consumers, establishing benchmarks on best practices, and identifying opportunities to increase sales in the overall category.

Much of the research undertaken by manufacturers is aimed at innovative new products and packaging. This is particularly important for companies targeting children, who as a group have substantial spending money to help them keep up with the latest innovations. Tung Toos, one such innovative product, creates temporary tattoos on the tongues of those eating the candy.

Batman Projector Pops actually project the Batman signal on a flat surface when the child pushes a button. The lollypop itself also lights up. Pops Rocks Candy Laboratory comes with a plastic test tube. The child puts the rocks in the tube and adds Secret Ingredient 1 to create a color change. Adding Secret Ingredient 2 sets off a foaming action. The child can then drink the citrus-flavored magic potion.

Manufacturers also seek new products to increase their share of the adult market. One report in 2003 listed more than 2,000 new candy, chocolate, and gum products that same year. Hershey reported in May 2006 that it had increased its share of the mints market category seven points to 35 percent over the past year by introducing new products. At the same time, Hershey acknowledged that too many new or special edition products can push a company past the point of diminishing returns. The flood of new products also creates problems for retailers who have only limited space.

Masterfoods tackled the problem of shelf space and display by sponsoring extensive research by Forbes Consulting on designing the most effective display for the 2006 Easter season. The research included consumer surveys, focus groups, and one-on-one interviews with approximately 1,000 people. The result was a visually appealing area, coated with Easter colors. The goal was to attract customers and keep seasonal purchases in the candy aisle.

The growing interest in organic and natural products has spurred research to bring such products to market. Research by color companies at the end of the twentieth century, for example, made the use of natural colors—colors created from fruits and vegetables—more practical and less expensive. These colors work particularly well in hard candies or gummy-type products.

CURRENT TRENDS

Major trends in the candy industry cater to the health-conscious and those on diets. The NCA reported on its Web site roundup of 2004/2005 trends that diet candy represented only about 3 percent of the overall candy market, but that the diet candy market segment was growing rapidly—90 percent for the twelve months that ended in April 2005.

Organic candies also cater to this health trend, including value-added organic alternatives among such favorites as lollipops, licorice, and gummies. Candy Industry reported in November 2006 that the organic market had grown 45 percent to $149 million for the year, compared to 1.8 percent for the conventional candy market. Manufacturers also continue to introduce bite-size and portion controlled products to appeal to those who want to limit their candy consumption.

Sales of licorice are growing, and manufacturers are also increasing the number of sour varieties they offer. SweeTart Gummy Bugs from Nestlé, for example, come in a variety of bug shapes and combine two sour flavors. In general, new candy flavors are stronger and more unique, according to the NCA, including such offerings as berry blasts, tropical twists, and sweet and sour. Jelly Belly's new lineup included Mint Trio and even Baked Beans. Super fruit flavors, derived with fruits believed to have antioxidants or other beneficial compounds, are gaining popularity. They include blueberry, pomegranate, black currants, guava, and lychee.

In another trend, candy makers are trying to take advantage of strong sales of candy for seasonal holidays by broadening the appeal of their products. In 2003 the company Just Born celebrated the 50th anniversary of its marshmallow Peeps with a marketing campaign featuring a yellow Peeps chick dressed up for Valentine's Day, Halloween, and Christmas as well as for Easter. Jelly bean makers, too, are attempting to broaden the appeal of these traditional Easter candies for other holidays.

Meanwhile, private label non-chocolate products are expanding. This is in part because of the strength of Wal-Mart, which carries many of these private label products.

The results of many of these trends were seen in Professional Candy Buyer's 2005 "What's Hot" list, which included portable pocket-size packs, indulgent and natural, trans-fat-free, extreme cooling peppermint, bright packs in primary colors, and almonds. Its "What's Not" list contained bizarre flavor blends, unidentifiable ingredients, synthetically derived, spearmint and wintergreen, and walnuts.

TARGET MARKETS & SEGMENTATION

Although almost everyone eats candy, not all population groups are tempted by the same products. Candy makers aim their products at a number of target markets. The children's market is huge, with sales of non-chocolate kids' candy estimated at $500 million in 2006. With more than 40 million children between the ages of 6 and 14 in the United States, children's brands represented 18 percent of sales in 2005, according to ACNielsen data. Packaged Facts reported that the purchasing power of children tripled in the 1990s, with the direct buying power of children expected to exceed $51.8 billion in 2006. This group tends to favor stronger, more intense flavors than those chosen by adults. They also like sour flavors.

Candy aimed at children is marketed with advertisements in publications or television programs aimed at the young. Buzz marketing—word of mouth marketing—is often effective in groups vulnerable to peer pressure. Internet blogs, news groups, and chat rooms can also help spread the word about a new product.

Given the expense of licensed products (an average 10 percent of the wholesale price), candy makers try to choose a handful of the most popular evergreen and television characters, with perhaps an occasional family movie, to license.

The evergreens are particularly effective in appealing to mothers for products with a positive value—portion-control packaging or added nutritional and/or low calorie content, highlighted prominently on labels. These products must compete with organic low glycemic snacks and dried fruit wraps, also marketed to mothers.

Innovative interactive candy products are the fastest growing segment of the kids' candy market. Light pops, pops attached to tubular handles through which lights shoot when a button is pressed, are popular. Other innovations include a Star Wars liquid candy light saber, Pez dispensers that play music, lollipop lipstick, and a candy harmonica.

While candy makers are eager to market to children, they do not want to be blamed for the growing epidemic of childhood obesity. On its Web site, the NCA has created confectionery marketing guidelines for its members, which the organization says can bring balance to marketing materials and help educate children and adults about nutrition.

Other products are marketed to different target groups. The primary target age for breath freshener mints is between 18 and 34. One mint product aims to expand that to the teen and pre-teen—often called 'tween—audience by using packaging that can be attached to a key ring, backpack, or purse.

Meanwhile women aged 25 to 64, are the primary jelly bean consumers, but specialized colors and flavors are aimed at the kids and the teens markets. As has been seen, candy makers target the health conscious and the dieting with sugar-free and organic products and with candies said to contain healthful substances.

Not surprisingly candy designed for Hispanics is gaining market share, considering a 2000 Census that showed that the population of Hispanics grew from 22.4 million to 32.8 million from 1990 to 2000. Hispanics are expected to account for more than 15 percent of the population by 2010. The market is complicated, however, since Hispanics from different countries have different taste preferences.

Given the importance of the Hispanic market, companies such as Montes USA Inc., Bimbo Snacks USA, and Arcor—all with Hispanic roots—are finding retailers eager to handle their products. The packaging is generally bilingual, with Spanish used since the largest group of Hispanics in the United States comes from Mexico. Mainline companies such as Hershey are also aware of the trend, offering bilingual packaging for retailers in areas with large Hispanic populations.

RELATED ASSOCIATIONS & ORGANIZATIONS

American Association of Candy Technologists, http://www.aactcandy.org

National Confectioners Association, http://www.candyusa.org

Pennsylvania Manufacturing Confectioners Association, an International Association of Confectioners, http://www.pmca.com

Retail Confectioners International, http://www.retailconfectioners.org

BIBLIOGRAPHY

"Best Practices Boost Retail Sales." Professional Candy Buyer. July-August 2006, 36.

Brewster, Elizabeth. "Sweet Success for Sours: Non-chocolate Candies See Growth in Sours, Diet Products, All-Occasion Treats." Confectioner. May 2003, 62.

"Brokers: A Vanishing Breed? Millions of Dollars Are Disappearing from the Broker Community as Suppliers Go Direct." Professional Candy Buyer. January-February 2004, 50.

"Confectionery: 2006." Annual Survey of Manufactures. U.S. Department of Commerce, Bureau of the Census. Available from 〈http://www.census.gov/industry/1/ma311d06.pdf〉.

"Confectionery Industry Review 2006 Year End." National Confectioners Association. Available from 〈http://www.ecandy.com/ecandyfiles/2006_Annual_Industry_Review_February_2007.ppt〉.

"Confectionery Timeline." National Confectioners Association. Available from 〈http://www.candyusa.org/Classroom/timeline.asp〉.

Covino, Renee M. "What's Up—and Down in the Candy Universe." Confectioner. April 2006, 42.

"Employment Changes in U.S. Food Manufacturing: The Impact of Sugar Prices." U.S. Department of Commerce, International Trade Administration. Available from 〈http://www.ita.doc.gov/td/ocg/sugar06.pdf〉.

Fuhrman, Elizabeth. "Color My World: Candy Colors Send Consumers Signals Triggering Subconscious Responses." Candy Industry. May 2004, 56.

"In-aisle Strategy to Boost Seasonal Sales: Consumer Research Results in a Revolutionary Approach to Seasonal Merchandising by Masterfoods USA." Professional Candy Buyer. July-August 2005, 25.

"Kids' Candy Brands: Wooing Today's Youthful Confectionery Consumers Is More Challenging than Ever Before but—considering their significant spending power—Potentially More Rewarding As Well." Confectioner. January-February 2006, 32.

Kuhn, Mary Ellen. "Candy Plays Catch-Up in Self-Checkout Aisles: This Rapidly Growing Retailing Paradigm Requires Effective Front-End Merchandising to Avoid Big Losses in Confectionery Sales." Confectioner. March 2006, 52.

Lazar, Andrew. "Candy's Challenges Catalogued." Confectioner. April 2006, 10.

Lazich, Robert S. Market Share Reporter: 2007. Thomson Gale, 2007, 582.

"Licensed Candy: Hot Licenses Can Sell More Candy-but Retailers Have Become Much More Selective in Their 'Picks.'" Confectioner. January-February, 2006, 36.

"A Little Candy History!" National Confectioners Association. Available from 〈http://www.candyusa.org/Classroom/timeline.asp〉.

"Nonchocolate Confectionery Manufacturing: 2002." 2002 Economic Census. U.S. Department of Commerce, Bureau of the Census. Available from 〈http://www.census.gov/prod/ec02/ec0231i311340.pdf〉.

"Processed Foods Index Page." U.S. Department of Commerce, International Trade Administration. Available from 〈http://www.ita.doc.gov/td/ocg/food.htm〉.

Rehan, Kelly. "Bolstering Benefits: Functional Confectionery Continues to Thrive as Manufacturers Reach Out to the Growing Health-Conscious Consumer Base." Candy Industry. July 2007, 50.

――――――. "Harvesting Health: Though Traditional Favorites Like Peanuts and Almonds Show No Signs of Going Out of Style, Many Manufacturers Have Taken Advantage of Consumers' New Willingness to Try More Unusual Offerings." Candy Industry. January 2007, 42.

Rogers, Paul. "One Sweet World: Demand in Developing Nations Drives Global Confectionery Revenues and Creates a Platform for Future Growth." Candy Industry. June 2007, 32.

Thompson, Stephanie. "Hershey Reaches Limits of Limited-Edition Candy; Innovation: CEO Lenny Slashes 25% of Portfolio, Pledges to Seek Platforms." Advertising Age. 2 May 2006, 12.

Vreeland, Curtis. "Special Report: Organic Confectionery Market." Candy Industry. November 2006, 34.

see also Chocolate, Snack Foods

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