Drumming up business: the gorilla may have worked wonders for block milk chocolate but it's been a mixed bag in confectionery, as steep raw material price increases add extra bite to the credit crunch

Grocer, Oct 4, 2008

Terrible news, given that children consume more sweets than any other age group, while pensioners consume fewest. However, pensioners and older working adults often have sizeable disposable incomes and the key for sweet manufacturers is to find the right way to target the older market.

"Strong brands with heritage have consistently performed well," says Fox's marketing manager Jon Dixon. "Much of this is down to the fact that these more traditional sweets are frequently purchased by older consumers, who have strong brand loyalty."

Mintel research suggests consumption habits change significantly with age. While older consumers are more brand loyal and less likely to try new products, there are signs that tastes and preferred formats can change. Retirees are more likely to choose biscuits or cakes over sweets and chocolate, but could be won back with less sweet alternatives, it says. Smaller, premium chocolate bars perform well with older adults, it adds. This group is also more likely to eat dark chocolate over milk.

Older people are also more likely to agree that dark chocolate has health benefits. When buying sweets, travel and sharing formats typically win out over indulgence, where sweets are rarely seen as a significant treat.

Yet despite the growth potential in the older market, few companies have made moves to target it. One exception is Fox's Confectionery, which is re-engineering its sugar ranges with the older consumer in mind.

The aniseed and liquorice sweet Fox's Glacier Dark had a particularly good year, with sales growth of 35% year-on-year by volume [9 August 2008], says Dixon.

Another company banking on tradition is Tangerine Confectionery, which relaunched its Taveners Proper Sweets range this year.

"Traditional and retro are big trends," says group marketing manager Helen Sears. "But to add value in such a competitive market you need an added benefit, such as natural colours and flavouring. Healthier is becoming a major point of difference."

Traditional or otherwise, refinements to sugar sweet ranges this year have focused on permissibility and sharing.

Category leader Cadbury cashed in on both the retro and traditional sweet trends with a relaunch of its classic Juice Loose 'bout This Hoose wine gums campaign. It also released Maynards Wine Gums Light, containing half the sugar and 30% fewer calories than the standard version.

Rowntree's also focused on permissibility to target the 618m [pounds sterling] shared bags category and achieved 14% growth year-on-year [Nielsen]. Its jelly lines now display functional messages, including 25% fruit juice content. The company claims to have been the first major confectioner to remove artificial colours and flavourings from its lines.

Mints have had a tougher year, though, with volume sales falling as much as lo% year-on-year, according to IRI. Cadbury's Trebor mints continued to dominate, with 54% market share [Nielsen], and Trebor Extra Strong Mints are the top-selling product.

But it's another 'extra strong' product that has riotously bucked the category's decline. Fox's XXX mints have risen 42% year-on-year in volume due to a shift in consumer tastes towards stronger mint flavours, says a spokesman. Fox's has launched a campaign for the mints targeting 18 to 30-year-old men, and will sponsor next month's National Curry Week.