Boxed-candy sweet spot evades mass brands - Food & Consumables - Brief Article

DSN Retailing Today, March 24, 2003

Sales of boxed chocolates as gifts have shifted from value-priced brands toward upscale and imported lines as consumers become more discerning in their tastes.

Everyday brands, such as Whitman's and Russell Stover, are primarily sold at mass, grocery and drug store outlets. These retail outlets, excluding Wal-Mart, reported a 1.5% decline in sales of boxed chocolates last year to $338 million, according to Information Resources Inc.

"Our boxed business has been growing, but not growing like we'd like to see it grow," said Mark Frame, vp of sales for Russell Stover.

And while sales of premium chocolate are more difficult to measure, some candy vendors report strong gains. Lindt & Sprungli, for example, noted double-digit gains in U.S. sales last year, while Maxfield Candy Company has reported increasing interest in premium chocolates, especially dark.

Among the retailers that have benefited is Costco. The retailer, which sells imported Belgium chocolates by Bouchard L'Escaut, saw sales of this brand grow 52% last year to $6.4 million.