Premium Chocolate Confectionery - US - March 2007

TABLE OF CONTENTS

• Scope and Themes
• What you need to know
• Definition
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• The bottom line
• Trends to watch
• Premium chocolate is growing in popularity for a number of reasons
• Food, drug, and mass merchandisers sell premium in four segments
• Top manufacturers through FDM are both European and American
• Sales through FDM account for about a third of total sales
• Almost all respondents eat chocolate in one form or another
• Price sensitivity exists in the realm of premium chocolate...
• ...but more than two in five respondents eat premium chocolate...
• ...purchased through myriad channels, for themselves and for others
• What respondents know and believe about premium chocolate
• Industry standards are critical to the products' lasting success
• Expanding the gift-giving horizon
• Mintel expects the market to grow to $3.5 billion by 2011
• Market Drivers
• Growing interest in chocolate flavors and intensity
  • Figure 1: Type of premium chocolate preferred by respondent, January 2007
  • Figure 2: Total U.S. retail sales of dark chocolate, at current and constant prices, 2003-06
  • Figure 3: Flavor/kind of premium chocolate preferred by respondent, January 2007
  • Figure 4: Interest in/experience with gourmet chocolates with unusual flavors, January 2007
• More chocolate, more channels
• Mainstream manufacturers move to premium
• Chocolate and health
• Price of sugar has an impact
• Market Size and Trends
• Market size
  • Figure 5: Total U.S. retail sales of premium chocolate, at current and constant prices, 2001-06
• Market trends
  • Figure 6: New chocolate product releases, 2001-06
• Wider variety of flavors
  • Figure 7: New product releases, by flavor, 2001-06
• Single origin, fair trade, organic
• Higher cacao content
• Functional/healthier chocolate
• Chocolate tastings
  • Customizing/personalizing
• Market Segmentation
• Introduction
  • Figure 8: FDM sales of premium chocolate, segmented by type (FDM channels only), 2004 and 2006
• Premium seasonal chocolate
  • Figure 9: FDM sales of premium seasonal chocolate, at current and constant prices, 2001-06
• Premium bars/boxes/bags equal to/more than 3.5 ounces
  • Figure 10: FDM sales of premium chocolate bars/boxes/bags equal to/more than 3.5 ounces, at current and constant prices, 2001-06
• Premium gift box chocolates
  • Figure 11: Sales of premium gift box chocolates, at current and constant prices, 2001-06
  • Figure 12: Sales of premium gift box chocolates, at current and constant prices, 2002-06
• Premium bars less than 3.5 ounces
  • Figure 13: FDM sales of premium chocolate bars less than 3.5 ounces, at current and constant prices, 2001-06
• Supply Structure
• Companies and brands
  • Figure 14: Manufacturer sales of premium chocolate in the U.S., 2004 and 2006
• Seasonal premium chocolate
  • Figure 15: Manufacturer brand FDM sales of seasonal premium chocolate in the U.S., 2004 and 2006
• Premium bars/boxes/bags equal to/more than 3.5 ounces
  • Figure 16: Manufacturer brand FDM sales of premium chocolate bars/boxes/bags equal to/more than 3.5 ounces in the U.S., 2004 and 2006
• Premium gift boxes
  • Figure 17: Manufacturer brand FDM sales of premium chocolate gift boxes in the U.S., 2004 and 2006
• Premium bars less than 3.5 ounces
  • Figure 18: Manufacturer brand FDM sales of premium chocolate bars less than 3.5 ounces in the U.S., 2004 and 2006
• Major manufacturers
• Russell Stover
• Lindt & Sprüngli
• Mars, Inc.
• Ferrero S.p.A.
• Nestlé S.A.
• Hershey Co.
• Advertising and Promotion
• Russell Stover
  • Figure 19: Russell Stover ad, 2006
• Lindt & Sprüngli
• Figure 20: Ghirardelli ad: Moments of Timeless Pleasure, 2006
  • Figure 21: Lindt Lindor ad, 2006
• Hershey Co.
• Mars, Inc.
  • Figure 22: Dove ad, 2006
• Retail Distribution
• Introduction
  • Figure 23: U.S. retail sales of premium chocolate by channel, 2004 and 2006
• Supermarkets
  • Figure 24: U.S. supermarket sales of premium chocolate, at current and constant prices, 2001-06
  • Figure 25: U.S. supermarket sales of premium chocolate, at current and constant prices, 2002-06
• The Consumer
• Introduction
• Summary
• Chocolate consumption rates
  • Figure 26: Frequency of chocolate consumption, January 2007
  • Figure 27: Frequency of chocolate consumption, by age, January 2007
  • Figure 28: Frequency of chocolate consumption, by race/Hispanic origin, January 2007
• Price chocolate eaters are willing to pay for premium chocolate
  • Figure 29: Price per piece respondents would be willing to pay for premium chocolate, January 2007
  • Figure 30: Price per piece respondents would be willing to pay for premium chocolate, by age, January 2007
  • Figure 31: Price per piece respondents would be willing to pay for premium chocolate, by income, January 2007
• Premium chocolate users
  • Figure 32: Consumption of premium chocolate, January 2007
• Price premium chocolate eaters are willing to pay for premium chocolate
  • Figure 33: Price per piece premium chocolate eating respondents would be willing to pay for premium chocolate, January 2007
• Frequency of purchasing premium chocolate
  • Figure 34: Frequency of chocolate consumption, by propensity to purchase premium chocolate, January 2007
• Venues in which premium chocolate is purchased
  • Figure 35: Purchase venues for premium chocolate, January 2007
  • Figure 36: Purchase venues for premium chocolate, by age, January 2007
  • Figure 37: Purchase venues for premium chocolate, byhousehold income, January 2007
  • Figure 38: Purchase venues for premium chocolate, by for whom premium chocolate is bought, January 2007
• Recipients of premium chocolate
  • Figure 39: Recipients of premium chocolate, by gender, January 2007
  • Figure 40: Recipients of premium chocolate, by age, January 2007
  • Figure 41: Recipients of premium chocolate, by income, January 2007
  • Dark chocolate and health
  • Figure 42: Opinions about dark chocolate and health, by gender, January 2007
  • Figure 43: Opinions about dark chocolate and health, by age, January 2007
• Opinions about storing premium chocolate
  • Figure 44: Opinions about storing premium chocolate, by gender, January 2007
• Single origin chocolate
  • Figure 45: Knowledge of single origin chocolate, January 2007
• Premium chocolate preferences: dark, milk, or other
  • Figure 46: type of premium chocolate preferred by respondent, by gender, January 2007
  • Figure 47: type of premium chocolate preferred by respondent, by age, January 2007
• Premium chocolate preferences: with or without additional ingredients
  • Figure 48: Flavor/kind of premium chocolate preferred by respondent, by age, January 2007
• Exploring new premium chocolate opportunities
  • Figure 49: Interest in new premium chocolate opportunities, January 2007
• Future and Forecast
• Future trends
• Competition at different price points detracts from super-premium market
• A need for industry standards
• From chocolate to snacks and cookies: the "premium" effect
• Expanding the gift-giving horizon
• Cocoa and drinking chocolate may be the next big growth area
• Future focus on packaging to appeal to chocolate connoisseurs
• Market forecast
• Premium chocolate
  • Figure 50: Forecast of total U.S. sales of premium chocolate, at current and constant prices, 2006-11
• Premium seasonal chocolate
  • Figure 51: Forecast of U.S. FDM sales of premium seasonal chocolate, at current and constant prices, 2006-11
• Large premium chocolate bars, boxes, and bags
  • Figure 52: Forecast of U.S. FDM sales of large premium chocolate bars, boxes, and bags, at current and constant prices, 2006-11
• Premium gift-box chocolates
  • Figure 53: Forecast of U.S. FDM sales of premium gift-box chocolates, at current and constant prices, 2006-11
• Small premium chocolate bars
  • Figure 54: Forecast of U.S. FDM sales of small premium chocolate bars, at current and constant prices, 2006-11
• Forecast factors
• Appendix: Trade Associations
• Appendix: New Product Briefs
• Mars: Dove Jewels
• Ghirardelli: Ghirardelli Dark Decadence Assortment
• Alpine Confections: Hallmark Premium Chocolates
• Chocolates By Imagination: Chocolates By Imagination "To Die For"
• The Hershey Company: Cacao Reserve by Hershey's
• World's Finest Chocolate: World's Finest Chocolate Dark Deluxe
• Belfine: Belfine Chocolate
• Dynamic Chocolates: Botticelli Signature Chocolate
• Liberty Richter: Elizabeth Shaw Tequila Shots
• Neuhaus: Neuhaus Orange Extra Dark Chocolate