Candy vendors go sweet on adults - Food Merchandising

Discount Store News, Nov 4, 1996 by Laurie Freeman

Candy manufacturing are sweetened the pitch for adult candy lovers with both "lite" alternatives to regular brands and boxed chocolate selections for everyday eating and gift-giving.

The reason: There are definite signs that more adults are consuming candy bars and manufacturers want that behavior to continue. According to the NPD Group's national Eating Trends Service, the percentage of adults consuming candy bars at home over last three years has increased.

For instance, only 9.38% of adults ages 45 to 55 ate candy at least once over a two-week period in '93, while in '96, that percentage climbed to 12%. Among adults 18 to 34, 12.6% ate candy regularly in '93, but 13.1% did so in '96, according to NPD.

Children ages six to 12 are by far the greatest consumers of candy, with 17.1% of them feeding their sweet tooth; teens ages 13 to 17 are not far behind, with 15.1% enjoying candy, chocolate or gum at least once in two-week period.

"The amount of candy we eat continues to grow every year," said George Rosenbaum, president, Leo J. Shapiro & Associates. "There's been a tendency to underestimate the importance of adults to the candy market, but that is definitely changing."

Rosenbaum points out that while adults are making efforts to cut down on fat, sugar and salt, many still indulge in candy and other treats.

According to information Resources Inc., candy sales were up 4.7% for the 52-week period ended Aug. 11, 1996.

Fueling that increase are such programs as M&M/Mars' campaign for Milky Way Lite, planned to be a $50 million brand by yearend, Leaf's adult focus to its Jolly Rancher brand and Hershey's new Pot of Gold boxed chocolate program.

Milky Way Lite is being targeted to women ages 18 to 49 and advertised as the "Bet You Can't Tell It's a Lite" candy bar. "We have found that [adults] want to eat candy, but they feel guilty about eating full-fat, full-calorie candy," said Pat D'Amato, public relations manager, M&M/ Mars. "Milky Way Lite is a way to bring these candy eaters back into the category."

Also getting an adult focus is Leaf's Jolly Rancher. "We discovered its appeal was much stronger with adults than we had previously realized," said Greg Barratt, senior vp, marketing.

With research in hand, Leaf expanded its target audience for Jolly Rancher to include adults 18 to 34 and made a slight change in its advertising approach, while keeping the integrity of its previous message. Leaf is currently airing commercials on TV featuring visual images of active adults, over-sized fruit flavors and music from the Kinks singing, "All Day and All of the Night."

Leaf's Health brand also has undergone some changes. The packaging now has a new, upscale look that is expected to appeal to the brand's primary consumers, young women. And for the first time in many years, Leaf, through its Health brand, will offer a Valentine's Day package that uses Heat Miniatures packaged in an upscale, romantic-looking box.

Armed with research showing that adults not only tend to eat more chocolate as they get older but also indulge more in chocolate gift boxes, Hershey Foods is introducing nationally Hershey's Pot of Gold chocolates, its first domestic brand of chocolate candy packaged in a gift box. The line, already sold in Canada, will be on store shelves by November in time for the holidays.

Hershey's Pot of Gold will compete directly against Whitman's and Russell Stover boxed chocolates, which dominate sales in discount and drugstores. According to IRI, boxed chocolate sales rose 11.8% to $143 million for the year ended Aug. 11. Russell Stover and Whitman's control the market with a combined 66.9% share.

Candy industry executives reported that consumers spend some $330 million on boxed chocolates annually. That kind of spending doesn't surprise Roger Mazzullo, Eastern regional sales manager for Brown & Haley, which has seen a tremendous response to its boxed chocolates program through Service Merchandise.

The boxed candy program began as a Holiday offering at Service's checkouts, but it was expanded earlier this year for year-round display.

Adults also seem to be spending more on seasonal candies, both for themselves and for children. "We've seen a tremendous amount of interest on the part of retailers to ask us for candies that are in seasonal tin canisters, or wicker baskets, anything that might be considered a gift item," added Jim Tucker, vp, sales and marketing, R.M. Tucker. "It satisfies everyone. The retailer who's looking for higher-ticket ring, and the consumer, who's buying candy both as a gift and for their own enjoyment."