Seasonal Chocolate Confectionery - US - August 2006

TABLE OF CONTENTS

• Introduction and Abbreviations
• Introduction
• Other relevant reports
• Definition
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Seasonal sales top $3.3 billion in 2005
• Participation in holidays drives sales
• Gourmet/premium chocolate presents seasonal opportunities
• Religious and secular holidays both contribute to overall sales
• Timing is everything
• Profiles of holiday celebrants
• Households with children
• Market segmentation
• Hershey controls 40% of tracked channel sales
• Advertising and promotion difficult to track
• Products sold through many channels
• Just under eight in ten consumers purchase seasonal chocolate
• Children and spouses prime recipients of seasonal chocolate
• Christmas is a major chocolate occasion
• Almost half of respondents buy seasonal chocolate at specialty stores
• Potential to increase sales in the future
• All segments will continue to decline
• Market Drivers
• Holiday participation
  • Figure 1: Holiday participation, by incidence of participation and spending, January 2005
• Premium chocolate as holiday gifts
  • Figure 2: Occasions/holidays given gourmet chocolates, December 2004
• Secular and religious holidays
  • Figure 3: Religious preference, church membership and attendance, 1980-2002
• Fixed and floating holiday dates
  • Figure 4: Number of days between Valentine's Day and Easter and impact on chocolate confectionery sales, 1999-2005
• Profile of holiday celebrants
• Christmas
  • Figure 5: Christmas participation, by celebration type, January 2005
• Valentine's Day
  • Figure 6: Valentine's Day participation, by celebration type, January 2005
• Easter
  • Figure 7: Easter participation, by celebration type, January 2005
• Halloween
  • Figure 8: Halloween participation, by celebration type, January 2005
• Households with children
  • Figure 9: Households with children under age 18 present, by age of householder, 1994-2004
  • Figure 10: Presence of children in households, by age of householder, 2003
• Market Size and Trends
  • Figure 11: Total U.S. retail sales of seasonal chocolate confectionery, at current and constant prices, 1999-2005
  • Figure 12: Graph: Total U.S. retail sales of seasonal chocolate confectionery, at current and constant prices, 1999-2005
  • Figure 13: Total U.S. retail sales of seasonal chocolate confectionery, at current and constant prices, 1999-2004
  • Figure 14: Total U.S. retail sales of chocolate confectionery, at current and constant prices, 1999-2004
  • Figure 15: Total U.S. retail sales of chocolate confectionery vs total U.S. retail sales of seasonal chocolate confectionery, 1999-2004
• Creating occasions for chocolate giving
• Primary gift augmented by chocolate
• Children and obesity
• Self-gifting cuts into seasonal sales
• Packaging encourages seasonal success
  • Figure 16: Reasons for buying gourmet chocolate, December 2004
• Market Segmentation
  • Figure 17: FDM sales of seasonal chocolate market, segmented by holiday, 2002 and 2004*
  • Figure 18: Graph: FDM sales of seasonal chocolate market, segmented by holiday, 2004*
• Easter chocolate
  • Figure 19: FDM sales of Easter chocolate, at current and constant prices, 1999-2005
• Christmas chocolate
  • Figure 20: FDM sales of Christmas chocolate, at current and constant prices, 1999-2004
• Valentine's Day chocolate
  • Figure 21: FDM sales of Valentine's Day chocolate, at current and constant prices, 1999-2005
• Halloween chocolate
  • Figure 22: FDM sales of Halloween chocolate, at current and constant prices, 1999-2004
• Other seasonal chocolate
  • Figure 23: FDM sales of other seasonal chocolate confectionery, at current and constant prices, 1999-2005
  • Figure 24: U.S. sales of seasonal greetings cards, by occasion, 2002 and 2004
• Supply Structure
• Companies and brands
  • Figure 25: Manufacturer FDM sales of seasonal chocolate confectionery in the U.S., 2002 and 2004
• Brand sales by segment
• Easter chocolate
  • Figure 26: Manufacturer brand FDM sales of Easter chocolate in the U.S., 2003 and 2005
• Christmas chocolate
  • Figure 27: Manufacturer brand FDM sales of Christmas chocolate in the U.S., 2002 and 2004
• Valentine's Day chocolate
  • Figure 28: Manufacturer brand FDM sales of Valentine's Day chocolate in the U.S., 2003 and 2005
• Halloween chocolate
  • Figure 29: Manufacturer brand FDM sales of Halloween chocolate in the U.S., 2002 and 2004
  • Figure 30: Seasonal chocolate confectionery market, by type of confectionery product (chocolate vs. non-chocolate), FDM only, 1999-2004
• Other seasonal chocolate
  • Figure 31: Manufacturer brand FDM sales of other seasonal chocolate confectionery in the U.S., 2003 and 2005
• Major manufacturers
• Hershey Foods Corporation
• Masterfoods (Mars, Incorporated)
• Nestlé USA, Inc.
• Russell Stover Candies, Inc.
• Advertising and Promotion
• Hershey Foods Corporation
• Masterfoods (Mars, Incorporated)
• Other companies
• Retail Distribution
• Introduction
  • Figure 32: Total sales of seasonal chocolate confectionery, by channel, 2002 and 2004
• Drug stores
• Convenience stores
• Mass merchandisers
• Natural food stores
• Other channels
• Supermarkets
  • Figure 33: Supermarket sales of seasonal chocolate confectionery, at current and constant prices, 1999-2005
• Drug stores
  • Figure 34: Drug store sales of seasonal chocolate confectionery, at current and constant prices, 1999-2005
• Mass merchandisers
  • Figure 35: Mass merchandiser sales of seasonal chocolate confectionery, at current and constant prices, 1999-2005
• Three-channel analysis of seasonal chocolate purchases
  • Figure 36: Share of FDM sales, by channel, for Easter, Christmas, Valentine's Day, Halloween, and other seasonal chocolate confectionery sales, 2002 and 2004
  • Figure 37: Distribution of Easter, Christmas, Valentine's Day, Halloween, and other seasonal chocolate confectionery sales, across FDM channels, 2002 and 2004
• The Consumer
• Introduction
• Purchase of seasonal chocolate by occasion
  • Figure 38: Purchase of seasonal chocolate confectionery, by occasion, June 2005
  • Figure 39: Purchase of seasonal chocolate confectionery, by occasion, by gender, June 2005
  • Figure 40: Purchase of seasonal chocolate confectionery, by occasion, by age, June 2005
  • Figure 41: Purchase of seasonal chocolate confectionery, by occasion, by household income, June 2005
  • Figure 42: Purchase of seasonal chocolate confectionery, by occasion, by presence of children in household, June 2005
• Recipients of seasonal chocolate
  • Figure 43: Persons for whom seasonal chocolate is purchased, June 2005
  • Figure 44: Persons for whom seasonal chocolate is purchased, by gender, June 2005
  • Figure 45: Persons for whom seasonal chocolate is purchased, by age, June 2005
  • Figure 46: Persons for whom seasonal chocolate is purchased, by household income, June 2005
  • Figure 47: Persons for whom seasonal chocolate is purchased, by presence of children in household, June 2005
  • Figure 48: Persons for whom seasonal chocolate is purchased, by marital status, June 2005
• Attitudes and opinions about purchasing/giving seasonal chocolate
  • Figure 49: Attitudes and opinions about purchasing/giving seasonal chocolate, June 2005
  • Figure 50: Attitudes and opinions about purchasing/giving seasonal chocolate, by gender, June 2005
  • Figure 51: Attitudes and opinions about purchasing/giving seasonal chocolate, by age, June 2005
  • Figure 52: Attitudes and opinions about purchasing/giving seasonal chocolate, by household income, June 2005
  • Figure 53: Attitudes and opinions about purchasing/giving seasonal chocolate, by presence of children in household, June 2005
• Purchase venues for seasonal chocolate
  • Figure 54: Purchase venues for seasonal chocolate, June 2005
  • Figure 55: Purchase venues for seasonal chocolate, by age, June 2005
  • Figure 56: Purchase venues for seasonal chocolate, by household income, June 2005
• Summary
• Future and Forecast
• Future trends
• Increasing "chocolate" holiday occasions
• Emphasizing premium seasonal chocolate
• Growing number of products at different price points
• Opportunities for natural and organic manufacturers
• Market forecast
• Seasonal chocolate confectionery
  • Figure 57: Forecast of total U.S. retail sales of seasonal chocolate confectionery, at current and constant prices, 2004-2009
  • Figure 58: Graph: Trends in sales of seasonal chocolate confectionery 1999-2009
• Easter chocolate
  • Figure 59: Forecast of U.S. FDM sales of Easter chocolate, at current and constant prices, 2004-2009
• Christmas chocolate
  • Figure 60: Forecast of U.S. FDM sales of Christmas chocolate, at current and constant prices, 2004-2009
• Valentine's Day chocolate
  • Figure 61: Forecast of U.S. FDM sales of Valentine's Day chocolate, at current and constant prices, 2004-2009
• Halloween chocolate
  • Figure 62: Forecast of U.S. FDM sales of Halloween chocolate, at current and constant prices, 2004-2009
• Forecast factors
• Market Size and Trends--Update
  • Figure 63: Sales of seasonal chocolate confectionery, at current and constant prices, 2001-06
• Market Segmentation--Update
• Overview
  • Figure 64: FDM sales of seasonal chocolate confectionery, segmented by type, 2004 and 2006
• Easter chocolate confectionery
  • Figure 65: FDM sales of Easter chocolate confectionery, at current and constant prices, 2001-06
• Christmas chocolate confectionery
  • Figure 66: FDM sales of Christmas chocolate confectionery, at current and constant prices, 2001-06
• Valentine's Day chocolate confectionery
  • Figure 67: FDM sales of Valentine's Day chocolate confectionery, at current and constant prices, 2004-06
• Halloween chocolate confectionery
  • Figure 68: FDM sales of Halloween chocolate confectionery, at current and constant prices, 2001-06
• Other seasonal chocolate confectionery
  • Figure 69: FDM sales of other seasonal chocolate confectionery, at current and constant prices, 2001-06
• Future and Forecast--Update
• Future trends
• Increasing "chocolate" holiday occasions
• Emphasizing premium seasonal chocolate
• Growing number of products at different price points
• Opportunities for natural and organic manufacturers
• Market forecast--Updated
• Seasonal chocolate confectionery
  • Figure 70: Forecast of total U.S. sales of seasonal chocolate confectionery, at current and constant prices, 2006-11
• Easter chocolate confectionery
  • Figure 71: Forecast of U.S. FDM sales of Easter chocolate confectionery, at current and constant prices, 2006-11
• Christmas chocolate confectionery
  • Figure 72: Forecast of U.S. FDM sales of Christmas chocolate confectionery, at current and constant prices, 2006-11
• Valentine's Day chocolate confectionery
  • Figure 73: Forecast of U.S. FDM sales of Valentine's Day chocolate confectionery, at current and constant prices, 2006-11
• Halloween chocolate confectionery
  • Figure 74: Forecast of U.S. FDM sales of Halloween chocolate confectionery, at current and constant prices, 2006-11
• Appendix: Trade Associations
• Appendix: New Product Briefs
• Hershey Foods: Milk Chocolate Easter Bunny Pop
• Nestlé USA: Grand Celeggbrations Hollow Chocolate Egg
• Joseph Schmidt Confections: Deco Easter Egg
• Russell Stover Candies: Net Carb Marshmallow Rabbit
• Hershey Chocolate USA: Special Valentine Design Chocolate Bar
• Marshall Field's Frango: Caramel Hearts
• Lindt & Sprungli: Lindor Truffles (Christmas Packaging)
• Appendix: Research Methodology
• Consumer Research
• Sampling & Weighting
• Technometrica TechnoExpresssm
• ICR Surveys EXCEL
• Simmons National Consumer Surveys
• Greenfield Online
• Presentation & Definition
• Further Analysis
• Trade Research
• Informal trade research
• Formal trade research
• Desk & Internet Research
• Sources
• Definitions
• Forecasts