ALL CANDY EXPO 2009

Wednesday, 17 December 2008

Susan Fussell reports on the ALL CANDY EXPO 2009 and explains how it can help you to find all the products you need to increase sales and profits, as well as finding out about all the latest confectionery trends Sweets and snacks are a $300 billion category worldwide, profitable even during difficult economic times.  Around the world, retailers consistently realise yearly sales increases for the category in the 3 to 4% range. In terms of volume, the global retail confectionery market grew by 2.5% overall in 2007. Chocolate showed the largest increase at 3.1% while gum posted a 2.5% tonnage increase and non-chocolate confectionery grew a by a strong 1.9%.  Additionally, other sweet and savory snacks grew by 2.8% in 2007. Overview of US confectionery sales Despite rising commodity prices, higher transportation costs and sky-rocketing energy bills, 2007 brought an overall sales increase for U.S. confectionery of 3%, with chocolate confectionery, non-chocolate confectionery and gum all posting gains.  U.S. gum sales posted gains of 6.3% overall, with sugarless gum climbing an impressive 13.5%.  Chocolate sales also outpaced the overall category increase at 4.3% with large boxes and bars and seasonal chocolates all performing extremely well.  Non-chocolate confectionery experienced at 1.4% increase with hard candy, licorice and chewy candy complimenting robust seasonal sales.   In supermarket, drug stores and mass merchants, the chocolate, candy and gum category is ranked third among all packaged food categories based on sales just behind milk and carbonated beverages. Confectionery also ranks third among the most frequently purchased categories with an average of 22 purchases per year.  Over the past few years, convenience stores and mass merchandise stores / Wal-Mart have shown the most growth in U.S. retail trade channels posting sales increases of 4.2% and 3.8% respectively for the 52-week period ending 13th July 2008, according to Information Resources, Inc. “Confectionery and snack products are one the best bets for any retailer,” said National Confectioners Association President Larry Graham. “Confectionery has a large gross profit margin, expandable consumption and a high rate purchase on which retailers can rely.”  By maximizing on confectionery’s key qualities and using best in store practices, Graham added, the U.S. confectionery industry alone has the potential to grow by another $10 billion dollars. Seasonal sales are critical to confectionery sales around the world.  In the U.S, the major sales drivers are Halloween, Easter, Christmas and Valentine’s Day. Halloween sales account for about $2.3 billion of annual confectionery sales with trick-or-treat confectionery items making up a large portion of holiday sales.  According to the National Retail Federation, nearly a third of money the average household spends at Halloween will be spent on candy. The trade group estimates that 74% of U.S. homes pass out candy to the costumed children who trick or treat at their doors. Easter, Christmas and Valentine’s Day are also important holiday sales drivers in the U.S. with sales for the three holidays combined reaching $5 billion. New products introductions also drive industry sales.  Recent estimates indicate 30% of all new food and beverage SKU introduced each year in the U.S. are confectionery items.  Recent research by NCA indicates that nearly a third of all U.S. candy and gum sales are produced by the new items introduced in the past two years. Global confectionery overview Moving east to the UK, 2007 retail value sales grew a strong 4.8% while tonnage sales grew 2.1% according to Euromonitor International.  Chocolate sales grew 2%, non-chocolate confectionery grew 2.3% and gum sales increased 1.6% in 2007. Other sweet and savory snacks grew 2.6% during the year.  Western Europe represents nearly 28% of global confectionery sales (tonnage) and demonstrated 1.1% growth in 2007.  North America represents 22% of the global market (tonnage) while the Asia Pacific region, representing 18 % of the global market, grew 5.3% in 2007. On a global basis, chocolate confectionery grew 3.1%; non-chocolate grew 1.9% and gum grew 2.5% in tonnage sales. Globally, chocolate is the fastest growing confectionery sector at the moment leading the category as consumers focus on luxury and indulgence with premium and dark chocolates contributing to the growth factor.  Consumers are paying a higher price per pound to enjoy their favorite new products. Worldwide trends in chocolate In terms of global confectionery tonnage sales in 2007, chocolate accounts for about 50% of the market share.  The majority of chocolate confectionery is consumed by the North America and Eastern and Western Europe. Sales in these three regions account for 78% of the global chocolate market.  From 2003 – 2007, chocolate sales around the world showed a 16% increase.  Chocolate’s popularity and increased sales growth is attributed in large part to the growing middle class around the world (prior to the 2008 economic trouble, at least) that can more easily afford chocolates especially those in the premium category. In the U.K. and the U.S. sales of large chocolate bar and premium boxes have exploded in recent years. U.S. chocolate sales reached $16.4 billion in 2007.  In the past five years the category has seen a $2.5 billion sales increase.  Gourmet and dark chocolates have averaged more than a 30% increase in the last three years.  Organics and natural chocolates also have seen significant sales increases. Many top growth trends are centered on the chocolate category, according to NCA. “Top trends include dark chocolate, premium and luxury candy like large format chocolate bars with unusual ingredients and high cocoa content chocolates,” said Graham. “Cocoa and dark chocolate are increasingly viewed and promoted as healthier snack options due to lower sugar content and recent news about the flavanol, or antioxidant, content. At the same time, they also represent a desire to indulge ourselves with little pleasures – especially when tough economic conditions call for consumers to scale back in other ways.” Everyday luxury chocolates which can be found at many mass and convenience retailers offer the consumer a high-end treat at an affordable price. Luxury confectionery sales are following the trends in other categories featuring upscale such as fine wines, high end coffee and artisan bread. Worldwide trends in non-chocolate confectionery In tonnage, non-chocolate candy generates nearly 42% of the global confectionery market while gum rounds out the category with just over 7% market share.  However, in terms of volume of growth, gum grew over 17% from 2003 thru 2007 while non-chocolate candies rose nearly 10%. Non-chocolate confectionery is driven largely by flavor, and as a result chewy candy and sugar free gum, both of which categories have seen tremendous introductions of highly flavored products, are performing well around the world.  In a pattern also reflected in the chocolate category, non-chocolate confectionery with a focus on indulgence, like toffee, is also increasing in sales. A clear choice The sales data is clear – confectionery is one of the most profitable and reliable categories for retailers. The ALL CANDY EXPO is the best place to discover your next biggest-selling products and the merchandising techniques that will lead to sales growth – not only in the confectionery category, but also for the complimentary savory and sweet snack categories as well. Because today’s retailers need to focus on categories that drives sales and profits, they are turning to confectionery and snacks in high numbers. Confectionery and snacks are one of the most frequently shopped categories in stores with high turnover rates and extremely high margins and profits. The category also enjoys higher than average sales lift when merchandised. “Confectionery and snacks are natural places for customers to turn when looking to increase store sales,” says ALL CANDY EXPO Chairman Tom Joyce, Vice President of Customer and Industry Affairs for The Hershey Company.  “The category is incredibly expandable – the more you merchandise, the more consumers will buy.  Confectionery and snacks also are major sales drivers at key holidays and have very loyal and satisfied customers.”     ALL CANDY EXPO attendees are able to see a the largest variety of these high performing products including chocolate, candy, gum, salty snacks, cookies, biscuits, popcorn, granola bars, breakfast snacks, nutrition bars, meat snacks, fruit snacks and nuts. Retail merchandising, emerging consumer trends, gourmet everything and thousands of new products headline the next ALL CANDY EXPO, May 19-21, 2009 in Chicago, Ill., USA. As the largest confectionery, cookie and snack show in the Americas, the EXPO welcomes thousands of industry professionals each year to discover the latest and greatest in confectionery industry trends, products and merchandising methods. “Now in its twelfth year, the EXPO is better than ever with more to offer attendees on every front,” says Joyce.  “Our education is top-notch – a real highlight of the show.  The quality of products offered by exhibitors is first rate and the added value of features like the New Product Showcase, the retail merchandising displays and the Gourmet Marketplace make the ALL CANDY EXPO a must-attend event.”  ALL CANDY EXPO attendees are able to see a the largest variety of these high performing products including chocolate, candy, gum, salty snacks, cookies, biscuits, popcorn, granola bars, breakfast snacks, nutrition bars, meat snacks, fruit snacks and nuts. Attendance at trade shows like the ALL CANDY EXPO makes tremendous sense any time, but especially during periods of economic difficulties when travel budgets are tight and both manufacturers and retailers may be under more time pressure to perform with   fewer employees dedicated to the task. The ALL CANDY EXPO is an efficient way to see a maximum number of customers or vendors in one location in a short time period.  High quality attendance In 2008 over 5,000 pre-qualified buyers attended the EXPO. The ALL CANDY EXPO is the only show in the U.S. that attracts all of the major retail and wholesale trade channels in the confectionery and snack industry in one location.  EXPO attendees include buyers/buying teams, merchandisers, category and operations managers, store owners, importers, exporters, suppliers and brokers. They come from all classes of trade including supermarkets, drug stores, vending, convenience stores, wholesalers, warehouse clubs, theatres, mass merchants, distributors, food service and specialty and department stores. International buyer attendees are in for an enhanced experience this year with special activities geared toward learning more about U.S. confectionery opportunities.  An informational seminar highlighting U.S. confectionery trends, merchandising ideas, and seasonal trends, retail store visits and an exclusive breakfast for international customers and U.S. manufacturers are offered at the 2009 ALL CANDY EXPO.  In addition to direct access to 500 confectionery manufacturers, ALL CANDY EXPO attendees can take advantage of some valuable show features Merchandising solutions The Retail Merchandising Solution Center is a dynamic destination at the EXPO features the latest cutting edge retail merchandising displays used to promote confectionery and snacks including permanent floor displays, counter displays and shippers.  New in 2009, the EXPO will feature the Magic of Merchandising display gallery, an area devoted to exhibitors’ off shelf displays, where customer attendees can view and compare the merchandising display offerings at their own pace. New product solutions More than 30% of sales in the confectionery and snack categories are items that have been introduced to the market in the past two years and more than 3,000 confectionery items are introduced each year in the U.S. Timely and effective merchandising of new products are a key to maximizing your sales and profit potential and the New Product Showcase at the EXPO boasts the largest collection of new confectionery and snack items anywhere before they hit the shelves. Gourmet marketplace The Gourmet Marketplace features more than 60 gourmet and specialty companies, ranging from small family-owned businesses to multi-national corporations. 'A Taste of Gourmet' is an experience area within the Gourmet Marketplace that features exclusive events, including tastings, samplings and pairings. Knowledge is the key to success Keep ahead of the curve and learn from industry professionals on hot issues and opportunities with the confectionery and snack industries. Topics include: Better for You Snacking, New Product Trends, Candy and the Economy, Front End Focus and the Future of Retailing. For more information about the ALL CANDY EXPO, visit the web site at www.AllCandyExpo.com or contact NCA’s UK representative David Hill at +44 (0)1223 701461 or dch@cocoda.biz

 

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