Holiday candy dancing in retailers' heads: with brand new confections debuting, sales season looks very merry - 1996 - Food Merchandising

Discount Store News, Oct 7, 1996 by Laura Liebeck

Christmas '96 could be one of the sweetest yet for candy producer and retailers. It will be the topping on what has been a prosperous sales year, one that will probably set a new record for consumption.

Leading the way will be a number of new introductions that include Hershey's new boxed candy program called Pot of Gold, Cap Toys' Buzz Lightyear Spin Pop, M&M/Mars' Snickers Christmas Tree and Tootsie Roll's Junior Mints with red and green centers.

"Candy is going to be very good at Christmas this year," proclaimed Whitney Hill of Whitney Hill & Assoc., a candy industry consultant. "The entire candy business is very healthy this year."

Hill said candy of all kinds should sell well, especially products geared specifically to children, continuing the trend of novelty candy, the combination toy and candy products forwarded by a number of companies.

When it comes to novelty candy, it seems nearly everyone is a child at heart. Comedian Jay Leno illustrated this on television recently when he featured Cap Toys' Power Pez on his show.

Power Pez was the first such "Power" item in Cap Toys' portfolio. Since then, Power M&M's has been added. The products are battery-powered, refillable candy dispensers that spin and then eject the candy from a housing. Both Power Pez and Power M&M's, under license with Pez and M&M/Mars, respectively, are packaged with candy and retail for $3.99.

Buzz Lightyear, the fictional superhero of Disney's megahit "Toy Story," will be rolled out on Cap Toys' Spin Pops this Holiday season, along with Bugs Bunny, Marvin the Martian and for the first time, a Santa and a Snowman.

Marshall Craig, vice president, sales for Cap Toys' confectionery division, looks for the Buzz Lightyear Spin Pop - with poseable wings - to be part of a merchandising bonanza related to the home video release of "Toy Story" next month.

Craig expects each of the featured items this year will be stocking stuffers.

This is great news for M&M/Mars, which views its licensing relationship with Cap Toys as a "great opportunity for the brand," said John Tuffin, trade development manager. "It creates a fun eating experience for children [and] allows us to enter new channels, like toy stores. By partnering with Cap, we get speed to market, category expertise and innovation." He said more co-branded products are on the way from M&M/Mars, with Cap Toys and other companies.

Already, M&M/Mars has licensing programs with Pillsbury for cookie dough; Smucker's for Dove toppings; and Oscar Mayer for its Edibles lunch program.

Brach & Brock also has a licensing agreement with Smucker's for Smucker's Jelly Beans, the first jelly bean made with real jelly.

For gift giving this Holiday season, Hershey is introducing Pot of Gold boxed chocolates to the U.S. market. This is Hershey's first attempt at boxed chocolates in the United States. It's boxed chocolate program in Canada has been in place since 1990. Although the name of the boxed candy program is the same as in Canada, the U.S. version has been reformulated for American tastes.

Pot of Gold will be available for the Holiday period only, launching in November for Thanksgiving through Mother's Day, said company spokesman Mike Kinney.

"We're looking to establish a presence in the U.S. market and build market share," he said, noting that Pot of Gold is Hershey's primary introduction for this Holiday season and is seen by Hershey as a "growth opportunity."

The candy, in milk and dark chocolate, is being marketed to adults 25 to 54 years old. It will be available in six varieties: Premium Assortment, Caramels, Pecan Caramel Clusters Almond Caramel Clusters, Truffles and All Nuts.

Pot of Gold will be packaged in gift boxes. Also available will be a premium assortment tin and heart boxes for Valentine's Day. Boxes are sized from 1.75 oz. for 79 cents to 12.3 oz. for $6.95. The premium assortment tin carries a suggested retail price of $7.95.

Candy is the fourth largest consumable product sold at discount stores, drugstores and supermarkets, according to the National Confectioners Association, trailing only carbonated beverages, milk and cereal. Christmas is the second biggest time of year for candy sales - Halloween is first.

Overall, candy is a $20 billion industry - $7.8 billion of which is sold in the mass market (discount, drug and supermarkets).

"People realize that confection can fit into a healthy diet," said Jim Corcoran, trade relations director for the National Confectioners Association. As such, they indulge, despite their otherwise more healthful diets.

Corcoran expects candy sales will increase for all of 1996, continuing the year-long trend of growing sales. Last year, Americans consumed 23.4 pounds of candy per person, up from 20.1 pounds per person in 1990.

Chocolate candy has the edge over nonchocolates. In 1995, Americans consumed 3.02 billion pounds of chocolate, compared to 2.73 million pounds of nonchocolate candy, an increase of 4.5% for chocolate and 2% for nonchocolate.

Among the many new products slated for introduction this Christmas are: * Peanut butter-filled Santa and Caramel Claus by R.M. Palmer, plus chocolate-covered Christmas candies and Beary Merry Christmas white chocolate teddy bears. * M&M's Chocolate Candies for the Holidays in red and green, Dove Truffles Gift Box, Snickers Canister, Sports Dispenser and Christmas Tree, all by M&M/Mars. This Holiday, M&M/Mars is featuring 46 skus for Christmas, 16 of them brand new items. * Candy Cane Rolls with chewy Tootsie Roll centers, Tootsie Roll 100th Anniversary Collector's Tin, Holiday Dots, red & green Junior Mints by Tootsie Roll Industries; * Red and green Clearly Fruit, Holly Jolly fruit snacks by Farley, plus its regular Holiday mix. * Jolly Rancher gift tin by Leaf.