Stepping into the premium chocolate segment, THE HERSHEY COMPANY entered into an agreement to acquire SCHARFFEN BERGER CHOCOLATE MAKER, INC. The Hershey, PA-based firm sees an opportunity in catering to increasing consumer demand for distinctive, high-end chocolate and for the antioxidant benefits of dark chocolate. Berkeley, CA-based Scharffen Berger's high-cacao content, signature dark chocolate bars and baking products are sold online and in a broad range of outlets, including specialty retailers, natural food stores and gourmet centers throughout the U.S. Scharffen Berger also owns and operates three specialty stores located in New York City, Berkeley and San Francisco.
Meanwhile, MARS INC. is focusing specifically on the flavanols found in cocoa--molecules credited for the 'hearthealthy' benefits of certain cocoa and dark chocolate. It recently revealed scientific research that indicates flavanols may also in the future help treat diabetes, strokes and vascular dementia, and could soon be available to pharmaceutical companies for development into new medications. Researchers said their findings point toward a potential major new class of medications, based on novel synthesized flavanols, to help prevent or treat serious illnesses. Additionally, Mars scientists have discovered that entire 'libraries' of cocoa flavanols can be synthesized, and that new flavanols can be developed from natural flavanols, enhancing their feasibility for use in pharmaceutical medications.
Mars is holding serious discussions with large pharmaceutical companies for a licensing or joint venture agreement that could enable some of these compounds to be developed as prescription drugs.
Mars recently created a new business unit, Mars Nutrition for Health & Well-Being, dedicated to the development of new foods, snacks, beverages and lifestyle support to better serve the nutritional and well-being needs of consumers. The unit launched its first nutrition bar called CocoaVia.
In April, ARS scientists revealed that cocoa powder contains more beneficial antioxidants than other chocolate products, but that processing decreases their contents. The study examined the total antioxidant capacity (TAC) and procyanidin levels of six chocolate and cocoa products: natural (unsweetened) cocoa powders, Dutch processed (alkalinized) cocoa powders, unsweetened baking chocolates, semi-sweet chocolate baking chips, dark chocolates, and milk chocolates.
Chocolate and cocoa powder are derived from beans that contain large quantities of natural antioxidants called flavonoids. The researchers found natural cocoa contains the highest capacity of the antioxidant procyanidin.
Natural cocoa powders contained the highest levels of TAC and procyanidins, which were found to be the dominant antioxidant in chocolates. Milk chocolates, which contain the least amount of cocoa solids, had the lowest TAC and procyanidin levels. Baking chocolates contained fewer procyanidins, because they contained more fat than natural cocoa. Alkalinization, used to reduce the acidity and raise the pH of cocoa, such as Dutch chocolates, was found to markedly reduce procyanidin content.
Chocolates containing higher amounts of cocoa ingredients have higher procyanidin contents, therefore, higher antioxidant capacities, researchers concluded.
CHOCOLATE CANDY MARKET LEADERS (1) (Source: Candy Industry) Dollar Sales % Chg. Vs. % Market Brand ($ Millions) Prior Year Share Hershey $1,834.8 4.9% 43.6% Mars $1,112.4 -0.6% 26.4% Nestle $369.1 2.0% 8.8% Russell Stover $270.0 -5.6% 6.4% R.M. Palmer $59.2 -10.2% 1.4% Ferrero $51.7 3.1% 1.2% Private Label $43.2 8.5% 1.0% Tootsie Roll $40.5 2.6% 1.0% Lindt & Sprungli $40.5 32.9% 1.0% Total (2) $4,207.8 1.9% (1) Based on combined sales of top selling brands (2) Including companies not shown Information Resources Inc. data for the 52 weeks ending Dec. 26, 2004 in food, drug and mass merchandisers.
