Special Series: The U.S. Market for Chocolate, Candy, Gum & Mints, Volumes I-III

SUMMARY

Volume I: The U.S. Market for Chocolate Candy

November 2002

Abstract:

In a data-intensive yet compact new format, this Packaged Facts reportanalyses the $14 billion market for chocolate candy, covering the mass-marketand gourmet sectors as well as retail and direct sales. Providing comprehensivesales, pricing, retail promotion, national advertising, and consumer data, thereport focuses on growth segments, brand competition, and new product trends inan industry where sophisticated market-driven strategies are essential to everyplayer. This report first quantifies the chocolate candy market, covering marketsize and composition for 1998-2002 as well as projected market growth for2003-2007. An analysis of the competitive situation follows, addressing marketerand brand shares, consumer demand for product variety and innovation, retailerclout and private-label prospects, and Internet marketing strategies. Next comedetailed individual profiles of leading mass marketers, gourmet chocolatiers,and candy shop retailers. The final chapter tabulates and analyzes demographicsfor chocolate candy overall as well as by consumption level, candy type, andbrand line. Use this compact but comprehensive report to keep up with industrydevelopments relating to target marketing, the seasonal/holiday market, brandmaintenance and line extensions, novelty and licensed products for kids,nutritional concerns and the nutraceutical segment, and the fast-shiftinge-commerce marketplace.

Volume II: The U.S. Market for Non-Chocolate Candy

January 2003

Abstract:

In a data-intensive yet compact new format, this Packaged Facts reportanalyzes the $8 billion market for non-chocolate candy, covering the mass-marketand gourmet sectors as well as retail and direct sales. Providing comprehensivesales, pricing, retail promotion, national advertising, and consumer data, thereport focuses on growth segments, brand competition, and new product trends inan industry where flat growth is challenging all players, as reflected in afresh wave of mergers and acquisitions.

This report first quantifies the non-chocolate candy market, covering marketsize and composition for 1998 to 2002 as well as projected market growth for2003 to 2007. An analysis of the competitive situation follows, addressingM&A activity, marketer and brand shares, consumer demand for product varietyand innovation, retailer clout and private-label prospects, and Internetmarketing strategies. Next come detailed individual profiles of leading massmarketers and novelty and gourmet candymakers. The final chapter tabulates andanalyzes demographics for non-chocolate candy overall as well as by consumptionlevel, candy type, and brand line. Use this compact but comprehensive report tokeep up with industry developments relating to target marketing, theseasonal/holiday market, brand maintenance and line extensions, novelty andlicensed products for kids, nutritional concerns, and the uses of the Internet.

Volume III: The U.S. Market for Gum, Mints & Breath Fresheners

January 2003

Abstract:

In a data-intensive yet compact new format, this Packaged Facts reportanalyses the $3 billion market for gum, mints, and breath fresheners. Providingcomprehensive sales, pricing, retail promotion, national advertising, andconsumer data, the report focuses on growth segments (sugarless/value added gum,breath strips, fruity mints, novelty products), brand competition, and newproduct trends in a market increasingly characterized by free-for-allcompetition between product segments.

This report first quantifies the market, covering market size and compositionfor 1998 to 2002 as well as projected market growth for 2003 to 2007. Ananalysis of the competitive situation follows, addressing consolidation andacquisition/divestment activity, marketer and brand shares, the adult vs. thekid market, the new wave of product benefits, and Internet marketing strategies.Next come detailed individual profiles of leading mass marketers across the gum,mint, and breath freshener segments. The final chapter tabulates and analyzesdemographics for the market overall as well as by consumption level, producttype, and brand line. Use this compact but comprehensive report to keep up withindustry developments relating to target marketing, gum/mint/breath freshenersynergies and encroachments, brand maintenance and line extensions, novelty andinteractive products for kids, product benefit advances, and the uses of theInternet.

TABLE OF CONTENTS

I. Executive Summary

II. The Market

Market Size And Composition
• Market Definition
• NCA/CMA Members' Shipments Of Chocolate Candy
• Doc Manufacturers' Shipments Of Chocolate Candy
• Per Capita Consumption Of Chocolate Candy
• Chocolate Imports And Exports
• Table: U.S. Retail Sales Of Chocolate Candy, 1998-2002
• Tables/Figures: Mass-Market Chocolate Candy Sales By Category, 1997-2001

Projected Market Growth

• Consumption Trends
• Demographic Mix And Market Growth
• Mass Vs. Gourmet Growth
• Nutritional Concerns & Feel-Better Chocolates
• Role Of Distribution Channels
• Role Of Internet
• Table: Projected U.S. Retail Sales Of Chocolate Candy, 2002-2007

III. Competitive Situation

Marketer And Brand Shares
• Mass Vs. Gourmet
• Tables/Figures: Mass-Market Shares

Product And Promotion Trends

• Number Of New Product Introductions
• Flavor Trends
• Packaging And Sizing Trends
• Kids, Licensed, And Novelty Products
• National Ad Expenditures
• Examples Of Consumer Advertising And Promotion

Retail And Internet Trends

• Tables/Figures: Mass-Market Shares And Growth By Retail Sector
• Focus On Mass Merchandisers
• Focus On Supermarkets
• Focus On Drugstores
• The Role Of The Front-End
• Gourmet/Specialty Retailing
• Working The Web: Brand Building And E-Commerce
• Examples Of Marketer Sites: www.hersheys.com; www.mms.com; www.godiva.com;www.sees.com; www.ethelm.com
• Role Of Third-Party Sites

IV. Competitive Profiles

• Archibald Candy Corp.
• Brach's Confections, Inc.
• Godiva Chocolatier, Inc.
• Hershey Chocolate Usa
• Lindt & Sprüngli
  • Lindt Chocolates
  • Ghirardelli Chocolates
• M&M/Mars
• Nestlé USA, Inc.
• Russell Stover Candies, Inc.
• See\'s Candies
• Tootsie Roll Industries, Inc.

V. The Consumer

• Demographics For Chocolate Candy Overall, By Consumption Level, By CandyType, And By Brand
• Consumption By Gender
• Consumption By Race/Ethnicity
• Consumption By Age Bracket
• Consumption By Household Composition
• Consumption By Household Income & Individual Income

Appendix I: Examples Of Advertising And Promotion

Volume II:

I. Executive Summary

II. The Market

Market Size and Composition
• Market Definition
• Table: U.S. Retail Sales of Non-Chocolate Candy, 1998 to 2002
• Table: U.S. Shipment Volume for Non-Chocolate Confections
• Tables/Figures: Mass-Market Non-Chocolate Candy Sales by Category, 1997 to2001

Projected Market Growth

• Consumption Trends
• Non-Seasonal vs. Seasonal Candy Trends
• Demographic Mix and Market Growth
• Role of Kids Candies
• Nutritional Concerns, Juice Candies, and Diet Products
• Role of Distribution Channels
• Table: Projected U.S. Retail Sales of Non-Chocolate Candy, 2002 to 2007

III. Competitive Situation

M&A Activity
• Hershey Foods Corp. Up for Sale
• Hershey sells Heide brands to Farley's & Sathers
• Catterton Partners buys Farley's & Sathers from Kraft Foods
• Sherwood Brands purchased Asher Candy, KR Candy Corp.

Marketer and Brand Shares

• Tables/Figures: Mass-Market Shares

Product and Promotion Trends

• Number of New Product Introductions
• Flavor Trends
• Packaging and Sizing Trends
• Kids, Licensed, and Novelty Products
• National Ad Expenditures
• Examples of Consumer Advertising and Promotion

Retail and Internet Trends

• Tables/Figures: Mass-Market Shares and Growth by Retail Sector
• Focus on Mass Merchandisers
• Focus on Supermarkets
• Focus on Drugstores
• The Role of the Front-End
• The Convenience Store Sector
• Gourmet/Specialty Retailing
• Working the Web: Brand Building and E-Commerce
• Examples of Marketer Sites

IV. Competitive Profiles

• Bobs Candies, Inc.
• Brach's Confections, Inc.
• Chupa Chups
• Farley's & Sathers Candy Co., Inc.
• Hershey Chocolate USA
• Jelly Belly Candy Co.
• Just Born, Inc.
• Kraft Foods
• M&M/Mars
• Nestlé USA, Inc.
• Pez Candy, Inc.
• Spangler Candy Co.
• Sherwood Brands
• Tootsie Roll Industries

V. The Consumer

• Demographics for Non-Chocolate Candy Overall, by Consumption Level, byCandy Type, and by Brand
• Consumption by Gender
• Consumption by Race/Ethnicity
• Consumption by Age Bracket
• Consumption by Household Composition
• Consumption by Household Income & Individual Income

Appendix I: Examples Of Advertising And Promotion

Volume III:

I. Executive Summary

The U.S. Market for Gum, Mints, & BreathFresheners
• Wholesale Dollar Shipments and Per Capita Consumption
• Overall Retail Sales at $3.7 Billion
• Pockets of Growth
• Projected Market Growth
• Top Marketers and Brands
• Top Advertisers
• Wrigley in the Catbird\'s Seat
• New Products and Market Saturation
• Overview of Flavor Trends
• Novelty, Licensing, and Packaging Strategies
• Consumer Demographics
• Figure 1-1: Top Gums and Breath Mints by Brands Most Often Used, 2002 (%of U.S. households)

II. The Market

Market Size and Composition
• Note on IRI Market Data and Packaged Facts Figures
• Market Definition
• Wholesale Gum Shipments at $1.7 Billion
• Wholesale Per Capita Gum Consumption at $6.27
• Overall Retail Sales Approach $3.7 Billion
  • Sales of Gum at $2.9 Billion
  • Sales of Mints/Breath Fresheners at $746 Million
• 10% Compound Annual Growth Rate for Sugarless Gum
• Backward Steps for Breath Fresheners
• Sugarless Gum at 64% of Category
• Supermarkets at 21% Market Share
• Figure 2-1: U.S. Retail Sales of Gum, Mints, and Breath Fresheners,1998-2002 (dollars)
• Figure 2-2: U.S. Manufacturers\' Pound and Dollar Shipments of ChewingGum, Bubble Gum, and Chewing Gum Base, 1997-2001 (pound and dollar)
• Figure 2-3: Wholesale Dollar Value/Pound U.S. Manufacturers\' Shipmentsof Chewing Gum, Bubble Gum, and Chewing Gum Base, 1997-2001 (dollars)
• Figure 2-4: U.S. Per Capita Consumption of Chewing Gum, Bubble Gum, andChewing Gum Base: Pounds and Wholesale Dollar Value, 1997-2001 (pounds anddollar)
• Figure 2-5: U.S. Retail Sales of Gum, Mints, and Breath Fresheners,1998-2002 (dollars)
• Figure 2-6: U.S. Retail Sales by Product Category: Gum vs. BreathFresheners/Mints, 1998-2002 (dollar)
• Figure 2-7: IRI-Tracked Retail Sales by Product Segment: Sugarless Gum vs.Regular Gum, 1998-2002 (dollar)
• Figure 2-8: IRI-Tracked Retail Sales by Product Segment: Breath Freshenersvs. Plain Mints 1998-2002 (dollar)
• Figure 2-9: Sugarless Gum vs. Regular Gum Share of Combined Sales ThroughIRI-Tracked Outlets, 1998 vs. 2002 (percent)
• Figure 2-10: Breath Freshener vs. Plain Mint Share of Combined SalesThrough IRI-Tracked Outlets, 1998 vs. 2002 (percent)
• Figure 2-11: Share of U.S. Gum, Mints, and Breath Fresheners Market byChain Retail Channel, 2002 (percent): 4 Types of Retail Channels, All Others

Market Forecasts

• Pockets of Growth
  • Growth Strategies
  • "Extra Duty" Sugarless Gums
  • A Fiftysomething Future
  • Hispanic Market in the Spotlight
  • The Wal-Mart Express
• Projected Market Growth
• Overall Market to Exceed $4.2 Billion in 2007
• Figure 2-12: Sugarless Gum vs. Regular Gum Share of IRI-Tracked Wrigley/AmurolSales, 1998 vs. 2002 (percent)
• Figure 2-13: Projected U.S. Population by Age Bracket, 2000-2010 (number):From Age Under 5 to Age 75 and Over
• Figure 2-14: Population Projections for Selected U.S. Racial/EthnicPopulations, 2000-2020 (number): Non-Hispanic White, Non-Hispanic Black,Hispanic, Non-Hispanic Asian/Pacific Islander
• Figure 2-15: Projected U.S. Retail Sales of Gum, Mints, and BreathFresheners, 2002-2007 (dollars)
• Figure 2-16: Projected U.S. Retail Sales by Product Category: Gum vs.Breath Fresheners/Mints, 2002-2007 (dollar)

III. The Marketers

Marketer and Brand Shares
• Top Marketers and Brands
  • Extra Sugarless Gum at Over $150 Million in IRI-Tracked Sales
  • Wrigley Claims Over Half of Gum Category
  • Kraft Claims One-Third of Breath Freshener/Mint Category
• Consumer Advertising Expenditures
  • Wrigley a $110 Million Plus Advertiser
  • Adams and Kraft Follow in $60-$70 Million Range
  • Other Top Advertisers
• The Competitive Situation
  • M&A Activity
  • Wrigley in the Catbird\'s Seat
  • New Products and Market Saturation
• Marketing and New Product Trends
  • Flavor Trends
  • Novelty Products
  • The Nutraceutical Scene

• Figure 3-1: Top Marketers of Gum, Breath Fresheners, and Plain Mints byIRI-Tracked Share, 2002 (percent): 5 Marketers, Private Label, Others
• Figure 3-2: Top Brands of Gum, Breath Fresheners, and Plain Mints by IRI-TrackedShare, 2002 (percent): 22 Brands, Private Label, Others
• Figure 3-3: Selected Brand Lines of Gum, Breath Fresheners, and PlainMints by IRI-Tracked Sales, 2002 (dollar): 29 Brand Lines
• Figure 3-4: Top Marketers of Gum by IRI-Tracked Share, 2002 (percent): 3Marketers, Private Label/Others
• Figure 3-5: Top Marketers and Brands of Sugarless Gum by IRI-TrackedShare, 2002 (percent): 4 Marketers/15 Brands/Others
• Figure 3-6: Top Marketers and Brands of Regular Gum by IRI-Tracked Share,2002 (percent): 6 Marketers/40 Brands, Others
• Figure 3-7: Top Marketers of Breath Fresheners and Plain Mints by IRI-TrackedShare, 2002 (percent): 6 Marketers, Private Label, Others
• Figure 3-8: Top Marketers and Brands of Breath Fresheners by IRI-TrackedShare, 2002 (percent): 9 Marketers/14 Brands, Private Label, Others
• Figure 3-9: Top Marketers and Brands of Plain Mints by IRI-Tracked Share,2002 (percent): 8 Marketers/10 Brands, Private Label, Others
• Figure 3-10: Selected Gum, Mint, and Breath Freshener Product Lines by12-Month Increase in IRI- Tracked Sales, Second-Quarter 2002 (dollars): 19Product Lines

IV. Marketer Profiles

Competitive Profile: Adams (Cadbury SchweppesPlc)
• Company Overview
• Running with Wrigley
• Competitive Review
  • Product Launches
  • Advertising and Promotions
  • Internet Operations

Competitive Profile: Ferrero U.S.A., Inc. (Ferrero SpA, Italy)

• Company Overview
• Product Line-Up
• A Breath Mint Recipe for Success
• Competitive Review
  • New Products Intros, in Lime and Silver
  • Advertising and Promotions
  • Internet Operations

Competitive Profile: Hershey Foods Corp.

• Company Overview
• #1 U.S. Candy Marketer
• Sharper Focus in Non-Chocolates
• Removing Kinks in the System
• Competitive Review
  • Product Launches and Promotions
  • Internet Operations

Competitive Profile: Kraft Foods

• Corporate Overview
• Building Big-Bang Brands
• Product Line-Up
• Competitive Review
  • New Product Launches
  • Advertising and Promotion
  • Internet Operations

Competitive Profile: Wm. Wrigley Jr. Co./Amurol Confections

• Company Overview
• The Wrigley Product Lineup
  • The Amurol Contingent
• A New Attitude
• Competitive Review
  • New Product Launches
  • Tinkering with the Tried and True
  • Amurol Novelty Gums Banking on Extreme Flavors, Christmas Variants
  • Extreme Flavors Also at Work in Sugarless Segment
  • Advertising Strategies
  • Internet Operations

V. The Consumer

Gum and Breath Mint Demographics
• Note on Simmons Survey Data and Figures
• Overview of Household Consumption
  • 57% of Households Use Gum, 62% Use Breath Mints
  • Preference Rates: Regular vs. Sugarless
  • tic tac the Top Brand by Household Preference
• Figure 5-1: Overview of Household Usage: Gum and Breath Mints, 2002 (% ofU.S. households)
• Figure 5-2: Top Gums and Breath Mints by Brands Most Often Used, 2002 (%of U.S. households)

Consumer Focus: Chewing and Bubble Gum

• Overview of Household Consumption
  • 12% of Households Use 3-4 Pieces Weekly
  • Regular vs. Sugarless Profiles
• Patterns and Variations for Mass-Market Brands
  • Gender Patterns
  • Age Patterns
  • Adams Stronger Among Hispanic Consumers
  • Trident Is Exception to Regional Pattern
  • Educational, Occupational, and Household Income Patterns
  • Patterns by Household Composition

• Figure 5-3: Household Usage Rates for Chewing and Bubble Gum: Overall andby Type, Usage Level, and Brand, 2002 (% of U.S. Households)
• Figure 5-4: Demographic Characteristics Favoring Heavy Use of Gum: 11 orMore Pieces in Last 7 Days, 2002 (U.S. Households)
• Figure 5-5: Demographic Characteristics Favoring Use of Regular Gum, 2002(U.S. Households)
• Figure 5-6: Demographic Characteristics Favoring Use of Sugarless Gum,2002 (U.S. Households)
• Figure 5-7: Household Usage Rates for Selected Gum Brands: By Gender, 2002(% of U.S. Households)
• Figure 5-8a: Household Usage Rates for Selected Gum Brands: By AgeBracket, 2002 (% of U.S. Households)
• Figure 5-8b: Household Usage Rates for Selected Gum Brands: By AgeBracket, 2002 (% of U.S. Households)
• Figure 5-9: Household Usage Rates for Selected Gum Brands: ByRace/Ethnicity, 2002 (% of U.S. Households)
• Figure 5-10: Top Gum Brands by Household Usage Rates: Black vs. Hispanic,2002 (% of U.S. households)
• Figure 5-11: Household Usage Rates for Selected Gum Brands: By Region,2002 (% of U.S. Households)
• Figure 5-12: Household Usage Rates for Selected Gum Brands: By EducationalAttainment, 2002 (% of U.S. Households)
• Figure 5-13: Household Usage Rates for Selected Gum Brands: By Occupation,2002 (% of U.S. Households)
• Figure 5-14a: Household Usage Rates for Selected Gum Brands: By HouseholdIncome Bracket, 2002 (% of U.S. Households)
• Figure 5-14b: Household Usage Rates for Selected Gum Brands: By HouseholdIncome Bracket, 2002 (% of U.S. Households)
• Figure 5-15: Household Usage Rates for Selected Gum Brands: By HouseholdSize, 2002 (% of U.S. Households)
• Figure 5-16: Household Usage Rates for Selected Gum Brands: By Age ofChildren in Household, 2002 (% of U.S. Households)

Consumer Focus: Breath Mints

• Overview of Household Consumption
  • 20% of Households Use One Roll Monthly
  • Regular vs. Sugarless Profiles
• Patterns and Variations for Mass-Market Brands
  • Gender Patterns
  • Age Patterns
  • 27% Rate for LifeSavers Among African-Americans
  • 21% Rate for Altoids in the West
  • Educational, Occupational, and Household Income Patterns
  • Patterns by Household Composition

• Figure 5-17: Household Usage Rates for Breath Mints: Overall and by Type,Usage Level, and Brand, 2002 (% of U.S. Households)
• Figure 5-18: Demographic Characteristics Favoring Heavy Use of BreathMints: 8-13 Rolls in Last 30 Days, 2002 (U.S. Households)
• Figure 5-19: Demographic Characteristics Favoring Use of Regular BreathMints, 2002 (U.S. Households)
• Figure 5-20: Demographic Characteristics Favoring Use of Sugarless BreathMints, 2002 (U.S. Households)
• Figure 5-21: Household Usage Rates for Selected Breath Mint Brands: ByGender, 2002 (% of U.S. Households)
• Figure 5-22a: Household Usage Rates for Selected Breath Mint Brands: ByAge Bracket, 2002 (% of U.S. Households)
• Figure 5-22b: Household Usage Rates for Selected Breath Mint Brands: ByAge Bracket, 2002 (% of U.S. Households)
• Figure 5-23: Household Usage Rates for Selected Breath Mint Brands: ByRace/Ethnicity, 2002 (% of U.S. Households)
• Figure 5-24: Household Usage Rates for Selected Breath Mint Brands: ByRegion, 2002 (% of U.S. Households)
• Figure 5-25: Household Usage Rates for Selected Breath Mint Brands: ByEducational Attainment, 2002 (% of U.S. Households)
• Figure 5-26: Household Usage Rates for Selected Breath Mint Brands: ByOccupation, 2002 (% of U.S. Households)
• Figure 5-27a: Household Usage Rates for Selected Breath Mint Brands: ByHousehold Income Bracket, 2002 (% of U.S. Households)
• Figure 5-27b: Household Usage Rates for Selected Breath Mint Brands: ByHousehold Income Bracket, 2002 (% of U.S. Households)
• Figure 5-28: Household Usage Rates for Selected Breath Mint Brands: ByHousehold Size, 2002 (% of U.S. Households)
• Figure 5-29: Household Usage Rates for Selected Breath Mint Brands: By Ageof Children in Household, 2002 (% of U.S. Households)

VI. Looking Ahead

Trends and Opportunities
• Growth Strategies
• Border Crossings and Brand Extensions
• Flavor Trends in Focus
• Sales Growth in Novelty Products
• Sales Growth in Hispanic Market

Appendix I: Examples Of Consumer Advertising And Promotions

Appendix II: Addresses Of Selected Marketers