Candy trends: reduced fat and sugar free

Drug Store News, Feb 12, 1996 by Barbara White

Drug chains should find the candy category a lot sweeter, thanks to healthier introductions that have the potential to tempt more consumers to purchase sweet snacks.

Among the biggest news in the chocolate segment is M&M/Mars' new Milky Way Lite, the first nationally advertised candy bar to proclaim "lite" status on its labeling. The bar contains half the fat of its traditional counterpart. Retailers have high expectations for reduced-fat chocolate products, and if the success of reduced-fat lines in other snack food segments is a good indicator, they have reason to be optimistic.

"Fat-free products are already outselling sugar-free products in other food segments," said Andy Horn, buyer at Harco. "I think this will open the gate for a big reduced-fat trend in the candy category."

Said Jim Corcoran, director of trade relations for the National Confectioners Association, "M&M/Mars is putting a lot of clout behind this piece."

A consumer thumbs-up to low-fat chocolate will be a boon for the segment, since growth in the chocolate segment of the candy category has fallen behind overall category growth.

Overall, the category has been strong at drug store with dollar sales of candy and mints up 5.9 percent to $1.6 billion, according to Information Resources Inc. Sales in the drug channel accounted for 26 percent of industry volume.

But while retailers carefully watch sales of low-fat chocolate bars for clues to the future of the category, they aren't about to eliminate any high-fat, sugar laden products from their mix. "The reduced-fat Milky Way is very good, but we would never stop carrying the original," said Ken Fossececa, buyer at Medic Discount.

Sugar-free sales up

Sugar-free products are also growing, but from a smaller base. "Growth in this segment has been phenomenal but hasn't added up to much since it started from zero," said NCA's Corcoran. That may all change now that Planters Life Savers, the No. 1 hard roll candy in the country, has entered the picture with Life Savers Delite, a sugar-free hard candy in four flavors. The products offer consumers a reduced-calorie candy without an artificial aftertaste.

Sugar free or sugar filled, the non-chocolate segment of the category is looking good. Sales of chocolate products account for 52.5 percent of the category while non-chocolate products account for 35.6 percent. Gum sales generate 11.9 percent of the overall category.

Gummy/jelly products have been strong since Life Savers introduced Gummi Savers and Hershey introduced Amazing Fruit. Industry analysts expect further growth since Hershey purchased Henry Heide, Inc. as part of Hershey's objective to increase its presence in non-chocolate candy.

Hershey's first quarter introduction of TasteTations, the company's first foray into hard candy, includes four flavors in 5-, 7- and 11-ounce bags as well as 1.8-ounce rolls. The product will be promoted with 25- and 99- cent variety packs.

Another continually growing area has been novelty products. Leaf's gum and other candy products, which retail in the $.99 to $1.99 range, were cited by retailers as strong performers. "I think other manufacturers will emulate Leaf by putting nondescript candies into toys so the product has a play value," said one retailer. "I'm seeing a lot more of that from smaller manufacturers."