Sweet Inspirations

Premium ingredients, unique flavor combinations and eye-catching packaging are bringing the candy category to life.  

Few aisles in a grocery store have the ability to evoke powerful emotions for shoppers like the candy aisle.

For generations, confections have served as tasty indulgences—enjoyed in moderation, of course—during life’s milestones and the moments in between. From the one night a year dedicated to collecting it, to grandma sneaking a piece of chocolate to her grandchild, to treating oneself during a stressful day, candy has found its place in consumers’ lives. Industry observers say that grocers that can trigger that warm feeling candy creates for shoppers as they browse the candy aisle can boost sales in the category.

“When you think about moments, celebrations and times with family, when candy is part of that, you remember where you were, who you were with and the candy you were eating,” says Larry Wilson, vice president of industry affairs for the National Confectioners Association, based in Washington, D.C. “There are few categories that lend themselves to that deep of an emotional connection. The retailer’s opportunity is to unlock that emotion with inspiration in the aisle.”

Retailers can find inspiration for their candy assortments through trends in product and packaging innovation. Observers say a variety of trends are propelling category growth. “Candy continues to grow larger than total store sales,” says Dan Bukowski, director of insights driven performance for The Hershey Co., based in Hershey, Pa. “Front end and center store aisle reinvention, seasons, promotional support and new innovation are driving category growth.”

Observers say it is an exciting time for the candy category as the market has seen a lot of innovation in chocolate, non-chocolate confections, mints and gum this year. Candy manufacturers are experimenting with interesting flavor combinations to reignite consumer interest, and several trends are connecting and engaging consumers with the category. 

For chocolate lovers, premium and dark chocolates are all the rage. “Small batch, fine chocolates with unique characteristics are definitely on the rise,” says Brian Jefferson, CEO of Clinton Township, Mich.-based Sanders & Morley Candy Makers. “Adults have become much more discriminatory about what they eat. People are looking for better ingredients and retailers are demanding them.

“We never stopped making our candies the old-fashioned way, which involves less processing and the use of more real ingredients,” Jefferson adds. “Our partners can expect us to continue striving for clean ingredient decks.”

Kane Food Group, maker of Kane Candy, is another company that has offered clean ingredient decks since its inception. The company uses real chocolate and cocoa butter in its chocolate dessert cups, which offer consumers the opportunity to be creative with their treats. “Consumers can fill our chocolate cups with mousse, yogurt or a chocolate ganache, and top it with a berry or chocolate shavings,” says Joe Kane, owner of the Fort Lauderdale, Fla.-based company. “It’s very quick and easy to make any desserts with our products.”

Kane Candy’s premium chocolate dessert cups retail for $6.99-$8.99 and come in a variety of flavors, shapes and sizes. “That’s not an inexpensive product, yet we’ve seen a 32 percent uptick in sales, so that tells me the consumer is not balking at higher retail prices for a better quality product.” 

Dark chocolate is the fastest-growing major segment within chocolate, according to Larry Lupo, vice president of sales–grocery, convenience and drug channels for Mars Chocolate North America, based in Hackettstown, N.J. Lupo adds that fruit is the No. 1 snack in the country, growing 12.8 percent over last year, and spiced nuts are another popular snack, growing 11 percent from the previous year.

“Driven by consumer insights like these, Mars Chocolate North America is expanding its product portfolio to include a range of innovative snacking options to meet consumers’ goals for health and wellness,” Lupo says. The company unveiled Dove Chocolate Fruit & Nut this month, which features real fruit and spiced nuts joined with Dove Chocolate to create a combination of flavors and textures. Three flavor combinations are available: Raspberry & Honey Roasted Almond, Blueberry & Vanilla Cashew, and Strawberry & Cocoa Almond.

Pucker Up

Different flavor and texture combinations are not only making a statement in the chocolate category; non-chocolate chewy confections makers are also presenting a mix of flavors that are piquing consumer interest. “The latest candy trends involve fun and festive flavors and thinking outside of the candy box,” says Matthew Pye, vice president of corporate affairs and trade relations for Just Born Quality Confections, based in Bethlehem, Pa. “We are seeing significant innovation in the flavor space, with growth among intense flavors such as sour/spicy, as well as unique flavor combinations and internationally inspired flavors.” 

Just Born is responding to these trends with the introduction of Hot Tamales Tropical Heat, which combines the bold flavor of its Hot Tamales candy with tropical fruit. The company’s new Mike and Ike Zours feature a sweet/sour combination. “We’ve also seen an interest in nostalgic flavors, which Just Born brands have been able to deliver on due to our rich heritage,” Pye adds.

Sour flavors are outpacing category growth, says Kurt Laufer, vice president of U.S. sales for Chicago-based Wrigley. “Specifically in gum, sour options have been shown to bring gum into more households,” he says. “To respond to this trend, in 2016, Wrigley is introducing sour products in both gum and confections, including Juicy Fruit Sour Green Apple, 5 Gum Flood Sour Strawberry, Juicy Fruit Bubble Gum Sour Watermelon, Skittles Sweets & Sours, and Starburst Sweets & Sours.”

Premium ingredients and flavors are just one way manufacturers are bringing innovation to the category. Eye-catching packaging is also helping retailers captivate shoppers in the candy aisle. “We’re seeing stand-up bags, some of them individually wrapped or some of them not wrapped, as well as smaller versions for portion control,” Wilson says. “In addition to giving portion control to the consumer, it gives better presence on the shelf to the retailer, in terms of the billboard effect. It’s a challenging section to shop with lay-down bags, but with stand-ups, now you have the branding fully visible.”

The Jelly Belly Candy Co. has seen significant growth in the last year, and the company attributes its packaging as one of the reasons for that. “Our BeanBoozled product has seen incredible growth, while our licensed products continue to generate excitement through unique and eye-catching packaging,” says Dennis Spiller, vice president of national sales for the Fairfield, Calif.-based company. “A large portion of our sales in grocery channels comes from our single-serve bags. Our one-ounce bags are well-suited for this trend in smaller sizes, as one ounce of Jelly Belly jelly beans is just 100 calories.”

Product and packaging innovation will continue to influence the candy category in the coming year, says Wilson. “There are certain categories that are well-equipped to bring center store areas to life, and what better category than candy? It is colorful, nostalgic, has new premium flavors and there’s excitement around the seasons,” he says. “As retailers look to differentiate from other classes of trade, including digital, that in-store experience is going to be critical, and when they look at the in-store experience, consider confections, because it’s a tremendous opportunity to really unlock inspiration and engage shoppers.”