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new product trends

Confronting
Confectionery
Chocolate lovers are certainly not afraid of the dark,
and sour flavors are driving sales of confections for
adults and children. The candy market continues to
grow, capitalizing on the latest trends and benefiting
from a number of ingredient innovations.

Marcia Mogelonsky, Contributing Editor

A mericans love candy, purchasing more than $27
billion of it in 2005. Additionally, the outlook for
2006 is very sweet indeed: the National
Confectioners Association (NCA) predicts confectionery
sales in the U.S. were close to $29 billion by the end of 2006.
Leading the innovation
wave among confections are
companies that specialize in
child-targeted products,
billion in 2005, an increase
of 28% since 2003. Almost
all gourmet/premium choco-
late is dark, and almost all
dark chocolate is gourmet/
The sales encompass all types of candy: chocolate, gum, premium. However, there are
mints and the wide range of non-chocolate confectionery including many novelty items. some small exceptions,
products that includes gummies, licorice and other sweets. many of which lean heavily
Retail sales of confectionery in the U.S. topped $27.9 bil- on concepts rather than products.
lion by the end of 2005, according to the NCA. This repre- The major focus in the chocolate industry is in terminol-
sents a one-year increase of 1.8%. Chocolate confectionery ogy: how does one define gourmet or premium chocolate,
was the top seller, racking up $15.7 billion in sales (up 2% and where is the dividing line between mass market and
over 2004), while non-chocolate candy saw sales of $8.7 bil- gourmet/premium?
lion (up 0.9%) and sales of gum totaled $3.5 billion, a one- Some key factors are accepted by all. First, it is accept-
year increase of 4.1%. able to use the terms “gourmet” and “premium” inter-
The buzzwords for chocolate confectionery in the past changeably. These higher-quality chocolates are usually,
year are dark, darker and darkest. Also driving sales are gour- but not always, dark (containing a higher cocoa content
met and premium chocolate (most of which tends to be dark), than mass market products). They also are distinguished by
chocolate with high cocoa content (dark again) and single- their price, quality, consumer perception and, to an extent,
origin chocolate (and dark once more). their retail positioning.
Sales of dark chocolate topped $1.62 billion in 2005, more A definition gaining acceptance in the market is that pre-
than 10% of the overall chocolate market, which includes mium or gourmet chocolate retails for $8 per pound or more
everything from mass marketed chocolate bars to handmade (which equates to about $0.50 per ounce), but there are dif-
truffles. This represents an increase of 28% since 2003. ferent thresholds for different types of premium chocolate:
Gourmet or premium chocolate sales amounted to $1.79 products that retail for between $8 and $16 per pound are

www.PreparedFoods.com ● January 2007 11

great masking and the price can go sky high if the source is rare enough. the trend has gained traction in the past couple of years. These products are special—not everyday special. used to identify fine wine and gourmet coffee. being too fancy. Masking color or package. It allows for a 10:1 Super premium products. The key phrase is “single origin. DE 19801 benefit. development Number of New Sugar Confectionery Indeed.PreparedFoods. BeFlora Plus® has an oligofructose base so it considered “mass premium products.roxlor. single-origin chocolate’s pedigree allows for a point of differentiation from the “everyday brands. which The perfect ingredient for your features a limited-edition low carbohydrate products. Request a Chocolate as Health Food sample now for For many chocoholics. Sweet It Out your product come justification for their habit. 2000-2005 projects. much scientific effort has been Products* Launched in the U. expended in proving that chocolate is a legitimate “health food. a product that can 2002 678 be beneficial in reducing high blood pressure and the risk of heart disease. Single-origin chocolates are appearing improved as bars (Dagoba’s Sambirano 65% Single Origin Madagascar) and as single pieces (as taste. “Mass premium” products are priced also to be an affordable luxury for con- sumers wanting a reward or a special treat on an ordinary day: they are fancy without most applications. country or even plantation. the health ben- efits of dark chocolate provide a wel. but very special. elegant. includes mints or white chocolate) has this nutritional Source: Mintel’s GNPD Wilmington. new product trends Low Carb Limited-edition products and… are something of a “test” Great to see if consumers will accept a new flavor. on the other hand.com ● January 2007 ..” While it may 2005 842 not find its way onto any “superfood” 2004 873 list. excellent for blending with Origin Stories high intensity Another point of differentiation in the chocolate universe is the source of the cacao used sweeteners to to make the product. it can tory. Or.” Think Sumatra instead of drip coffee or It also has Shiraz instead of red wine. Such is the case with Skittles. come with super premium prices.com www.” and the concept is similar to that improve taste. Lindt and other top European chocolatiers began identi- fying their products by origin. then the chocolate made with this special vari. hand-made chocolates and truffles tend to be perishable and precious: some sugar and is even come topped with real gold leaf or other expensive ingredients.” those meant to attract con- performs almost sumers who may be unfamiliar with the premium chocolate market and reluctant to identically to sugar in invest in it. even more as the passion for quality chocolate has grown. its own. Like fine wine or gourmet coffee.S. texture. region. The term refers to the origin of the cocoa variety used for producing the chocolate. ice cream variety. For chocolate lovers. sweeten on ety of cocoa beans can be described as a single-origin chocolate. there is 302-778-4166 www. Valrhona. but not outrageously priced. Market Street only dark chocolate (not milk chocolate Suite 401 * Excludes chewing gum and chocolate. substitution of Artisanal. the taste is distinctive. in the “tasting kit” of single-origin chocolates by La Maison du Chocolat). properties for In the late 1980s. The moniker gives the product cachet. If that can be reduced to a well-defined terri. dark chocolate is credited with 2003 731 being an antioxidant. 2001 879 The scientific findings emphasize that 2000 616 1300 N.

combining a hint of sour and CAP Candy. Savers Crème Savers have line Source: Mintel/National Confectioners Association tors’ items because of their short extensions including Crème Savers 14 January 2007 ● www. which have an "interactive candy" manufacturers in the world. be challenging for category man- Sugar-free candy. by 2006.41 and ice cream novelties. Flavors Dark Continent include cherry/orange. These companies are challenged continuously to keep up with children’s rapidly changing tastes. CAP Candy launched spice or sour and sweet. what must be weighed began as a limited-edition tie-in product against the fat and has become a long-term proposition. the quest for the most sour. strawberry/apple and Making the ordinary special is a 2003-2005.40 $1. in Billions mango/lemon. are turning up in candies for kids 187 new sugar confectionery products between 2000 and and adults. as demonstrated by the fact that turers as well as consumers. the benefits meet the fate of Mega M&Ms. but candy manufactur. sin. new flavors and types of licorice. one of the first products to pioneer the concept of Fizzing Whizbees popping candy and Incredibles Pic-Tastix extremely strong-flavored mints. Vying for the “sourest candy award” emits gorilla roars and has eyes that flash). TV The intensity battle continues. cycle through the stores quickly. most extreme candy fla- As an example. between 2003 and 2005. but non-chocolate already-crowded candy aisle can confectionery has not been resting on its laurels. a subsidiary of Hong Kong. which have made favored but unexciting product 2005 $1.9 billion. ing display vehicles which themselves can become Sales of non-chocolate confectionery increased 17% sought-after collectibles.62 their way through a number of other and give it a new spin. the company’s extremely sour powder inside a sour hard shell. many manufacturers are helping gle-serve seasonal offerings and limited-edition pack. While finding space for Chocolate confectionery has seen major these temporary items in an growth over the past year. blue rasp- Limited Editions Sales of Premium and Dark Chocolate. Many of their Extreme Flavors: Sour.” Dandy Candy shelflife. have been introduced per year since 2000 on average. through stores quickly. One of the largest Hershey’s Jolly Rancher Sour Bolt Blasts. including many novelty now has become a long-term proposition. The cate. While some parents may have shows and video games. consider the innovations presented by vor continues. Tropical and More products feature tie-ins with popular children’s movies. Not all extreme flavors are sour: ers have found a way to take a Premium Chocolate Dark Chocolate tropical tastes. others meet with enough Market-leading companies are not necessarily the top acceptance to extend their stay. the powdered candy center.PreparedFoods. which began as a limited-edition tie-in product and specialize in products for children. but others tentially can be bene- ficial. has added to its line of sour 3D Lollipops.56 $1. While some limited-edition products may according to Mintel’s GNPD. and these companies must adapt hoped that the mouth-puckering trend would have died down continually to remain current with the latest trends. Strong flavors. agers. Limited-edition products have advantages for manufac- gory thrives on innovation. retailers find space for these new items by offer- ages are all top of mind for candy connoisseurs. items. Such is the case with Mega innovators: leading the innovation wave are companies that M&Ms. texture. The products become their own more than 700 new non-chocolate candy and mint products “test” to see if consumers will accept a new flavor.26 ing in candy as well: Hershey’s Life Cream Skittles—become collec. and a Nintendo are Jolly Rancher Double Blasts. color or package. challenge. come in a recent introductions include a Kong candy dispenser (which host of “sour” flavors. candies—moving from orange to mango and raspberry. food products such as beverages edition candies—such confections 2004 $1. to a total of $8.com . Limited. calorie “negatives. which have one flavor in Marshmallow Jelly Pop featuring the hard shell and another infused in Mario Brothers characters. a subsidiary of Hasbro. are appear- as Icy Burst Starburst and Ice 2003 $1.79 $1. new product trends also a caveat: while Some limited-edition products cycle dark chocolate po. berry/lime. Sweet. The number-two company in terms of new product These adult-positioned sour treats may be considered tame launches was Au'some Candies. beside some of the kid-focused sour candies on the market: based Candy Novelty Works Limited. most of them novelty items such as Harry Potter Altoids. 2005.

Banana & Crème and Mango & Crème. as more adults try to indulge with- out overdoing. combining a hint of sour and spice or sour and sweet. cherry and traditional black licorice flavors. twist- wrapped pieces of soft. is gaining traction. of Twizzlers.com . mint or gum. Hershey extended its line Crème. watermelon. See Food Master-INGREDIENTS. Goetze’s Candy Company’s classic Cow Tales caramel chew now is available in strawberry as well as the original caramel flavor. According to the NCA. blue raspberry. partnered with 7-Eleven this year to provide edible cherry- flavored drinking straws to accompany the c-store’s Slurpees.PreparedFoods. and new product Taking the candy out of the package is another new depar- ture: American Licorice Co. Also new is Tootsie Roll’s Sugar Mamas. most extreme candy flavor continues. Chew on This Twizzlers Rainbow Twists has six distinct flavors and New product innovations are not restricted to hard colors including grape. grow significantly over the past year. be it chocolate. Sugar-free Gains Ground Sugar-free confectionery. sales The quest for the most sour. p. are turning up in candies for kids and for adults. new product trends Tropicals available in multi-serve bags of Pina Colada & launches also are increasing. non-chocolate. 98 16 January 2007 ● www. chewy caramel. Making a straw a candy is not the only twist: other products are being transformed as well. candy: licorice and caramel candies have seen sales lemonade. orange and strawberry. Strong flavors. which for years were available only in strawberry.

Call us today at 201-784-7311 or email The introduction of new flavors helped generate news and bol- flavors@takasago. The majority of new gum introductions dur- working with you to create break. such as Wrigley’s Eclipse and Hershey’s Ice Breakers. The major forces behind the increase At Takasago we focus on key markets. New sugar substitutes through confectionery products. to develop winning flavors New Products Push Gum Sales Sales of gum (both sugared and sugar-free) increased just under • New Sensory Testing Center: focused 9% between 2003 and 2005 through food. development Among the big players who have embraced the sugar-free market are Nestlé. nation of health and diet trends. Hershey and Storck USA. focused on new product improve the taste of diet candy—and the enthusiasm for it. have driven consumers to find less-fattening ways to indulge. dedicated confectionery application candy. all of which introduced • Consumer Insight & Marketing Research: sugar-free versions of their most popular candy brands.com ster sales. it’s all about focusing on Hershey’s Ice Breakers in 2002 and Cadbury’s Dentyne Fire in the things that we do best…including 2003. While sugar-free chocolate has not done well against strong pre- mium and dark chocolate competi- tion. longer-lasting flavor and cavity prevention. At Takasago. including focused on collaborating with consumers Nips. non-chocolate candy and sugar- free gum both have increased. Our dedication to success is demonstrated as well as improvements in sugar substitutes. watermelon. including Wrigley’s Orbit in 2001. drug and mass mer- on identifying the taste trends that chandiser channels. A new range of sugar substitutes has attracted consumers to diet • New. Overall. Hershey extended its line of Twizzlers with Rainbow Twists. ing this period were in the sugarless sector. fueled growth. the losses in that sub-segment are outweighed by major gains in sugar-free candy and gum. Werther’s.com . six distinct flavors True-to-Fruit Flavors and colors including grape. lemonade. of sugar-free chocolate have declined over the past year. and Chewing Gum orange and strawberry. Sugar-free gum makers took a lesson from the success of Altoids (the “curiously strong mint”) and began introducing their own intense mint-fla- vor products. new product trends High Impact. but sales of sugar- free. sales of sugar-free confec- tionery through food. An influx of new products.8 million intensity Vivid flavors™ and sensates. Many sugar-free gum brands capitalized on the popu- January 2007 ● www. through exceptional high impact. in sales come from a combi- including confections and chewing gum. New sweeteners such as sucralose and xylitol have helped laboratories. according to the American Diabetes Association—no doubt has Our commitment is evident in the strategic. high The incidence of Americans with diabetes—20. sucralose and xylitol gave sugarless gum an edge in terms of taste. helped grow sugar-free candy sales. blue for Confections raspberry. especially in the sugar-free segment.PreparedFoods. bringing the market for these products to lead to market success $958 million. drug and mass merchandiser channels topped $986 million in 2005. Concerns with obesity also ongoing expansion of our US facilities. High Intensity. Jolly Rancher and Twizzlers.

mintel. August 2006. the auto parts store and even the and Hubba Bubba. gum were relatively flat between 2003 and 2005.” launch of Bubble Tape Triple Treat. others stepped up efforts with exist..S. as front of consumers are almost endless. buy candy in just about every outlet from the convenience ing regular gum brands: Wrigley continued to invest in and store and movie theater (where one would expect to find grow two of its biggest youth-targeted brands. new flavors including Strappleberry. com for more information or call the desires of a fad-conscious public. Other Chewing Gum. big-box pet store. Sour flavors now are faded and to continue growth. The possibilities for placing products in vigorated through the introduction of a new pellet form. 3 20 January 2007 ● www. have the right confectionery product in the right place at Grapermelon and Tropikiwi Kick. Wrigley’s Hubba Bubba bub- blegum brand also grew sales. changing the dynamic between While sugar-free gum sales increased. p.PreparedFoods.” Please visit The confectionery industry is constantly changing to meet http://reports.S. January 2006.. Juicy Fruit candy) to the bookstore. For consumers seeking unique flavors. new product trends larity of fruit in candy products by adding new fruit flavors during the low-carb fad and was able to regroup when the fad that appeal to kids.S. introduced in 2005.S. flavor. teens and Hispanics. New challenges include grow- becoming more popular.” “Sugar Confectionery—U. the first sour Juicy Fruit the right time.com . thanks to the 2004 introduc. gum issues facing the industry are the demographic changes that makers have begun creating unusual combinations like Orbit have led to an increasing senior population and a declining Citrusmint and Dentyne Vanilla Ice. While An increasingly blurred retail arena has led to the avail- some players decided to switch to sugar-free rather than fight ability of confectionery in multiple channels—one can the sugared gum fight. (forthcoming). “Gum and Mints—U. child and tween population. Sales of Juicy Fruit brand have been rein. sales of sugared chocolate and non-chocolate confectionery. This article contains information from the Mintel reports tion of Hubba Bubba Max Cherry-Lemonade and the 2005 “Seasonal Chocolate Confectionery—U. evidenced by new introductions ing anxiety in the nation about the obesity crisis and the like Wrigley’s Juicy Fruit Tropikiwi Kick and Altoids Sour growth of Type 2 diabetes among adults and children.. The only trick is to well as unique. May 2006” and “Premium Chocolate Room for More Confectionery—U. The industry did well Mintel at 312-932-0400. See Food Master-INGREDIENTS.

com is so easy! Simply go to www.PreparedFoo ds.PreparedFoods. Call 845-358-8600 or email rfi@rfiingredients.com ● January 2007 21 . We look forward to hearing from you! www.indd 1 12/7/06 3:44:09 PM Signing up for (or renewing) a FREE subscription to Prepared Foods www.overseal. www.PreparedFoods.com and click on the "Free Subscriptions" link.com Tastier strawberries with Talin® Enhancing flavours naturally to give you a longer lasting taste.com for more information Overseal is part of the Natraceutical Group PFX01074Overseal.