Talking Shop with...John H. Downs Jr.

John H. Downs Jr., National Confectioners Association’s new president and CEO, provides a pulse check on how the candy industry is performing.

What have you observed of the confectionery industry so far?

John H. Downs Jr.: I have visited with about 40 NCA members at this point on my Learning and Listening tour and there are some key themes that recur on each visit. First is that everyone would like NCA to address the industry’s number one priority—protecting and enhancing the image and reputation of chocolate, candy and gum. Second is that the industry would value an even stronger public policy and advocacy message. The industry wants NCA to engage with policy makers to advance the positive narrative for the business with Congress. The members of NCA, and our industry’s retail customers, would like us to enhance our data, analytics and insights so that we can help everyone better prepare for what lies ahead. NCA’s events, especially the Sweets & Snacks Expo, are important to everyone. We need to continue to improve on those experiences while determining how to better utilize them as communications assets to tell our compelling story. Finally, none of this is possible unless we invest in the communications capacity of the Association and so we will be focusing on what that looks like in the future.

You mentioned using your communications assets to share the industry’s story. What is that story?

Candy is part of America’s great manufacturing tradition. It is made in every state in the country by more than 70,000 people. Candy is, by and large, made by small- and medium-sized businesses. About two-thirds of NCA members are small, family-run companies. However, candy is also made by multi-national companies whose brands are loved around the world.  Then there are the emotional connections associated with our products and brands. Candy is part of life’s celebrations. Our products are an honest, authentic, transparent treat. NCA’s recent shopper survey found that while consumers are concerned in general about sugar and sugar consumption, they are less concerned about sugar in candy. That is because people expect to find sugar in our products, they plan for it, and they are already eating it in moderation just two to three times per week—averaging less than 50 calories a day. The bottom line is that candy is unique and special.

What is your vision for the industry?

We have taken a fresh look at NCA’s mission, vision, goals and objectives. We had broad, diverse input from NCA’s constituencies to develop our new vision for the future: The public understands and appreciates candy’s unique role in a happy, balanced lifestyle.

How is the candy industry performing during this economic recovery period?

With more households than ever focusing on saving money, nearly 40% of shoppers still choose to spend more on groceries or little luxuries. So it is no surprise that candy ranks as No. 3 in the top-selling categories in-store. Our research shows consumers still want to “treat” themselves to small indulgences. 

It is also one of the few categories that show strength and consistency during a tough economy. Candy is a $34 billion contributor to the U.S. marketplace with a 98% household penetration rate.

What is NCA doing to help grocery retailers understand the importance of candy?

Supermarkets continued to be a solid category driver posting 1.8% sales growth during 2014. However, with consumers continuing to shop across many outlets, grocery retailers need to be poised to not only retain, but also grow their confectionery market share. In addition to following NCA’s Sweet Insights e5 principles for everyday candy sales growth, we have identified five key drivers in today’s market for increased sales: have frequent new item introductions; expand premium offerings; highlight sharable, re-closeable pouches; maximize line extensions and cross branding; and fine tune seasonal execution. Of course, the easiest, most efficient (and fun) way to find out what retailers can do to maximize sales is attend our annual Sweets & Snacks Expo May 19-21 held at Chicago’s McCormick Place.

Tell us more about the Sweets & Snacks Expo.

Sweets & Snacks Expo is the premiere global marketplace featuring more than 630 exhibitors and welcoming 16,000 industry professionals from 90 countries. Ninety percent of candy and 75% of snacks sales happen here. Beyond nearly four acres of product innovation, attendees also walk away with actionable insights from our all new knowledge-building series designed to grow business.