An unscientific consumer poll reveals that consumers don't think 'confections' or 'candy' when asked to name 'health and wellness' foods. It's a sure bet that results would be the same in a scientific poll. Candy might be good for the soul, but teeth, blood sugar, waistlines? No way.
Still, the category that conjures fun and indulgence hasn't ignored health. In fact, there are certain elements in the confectionery category that are boldly declaring health and wellness.
New product growth is robust in the confectionery category. New candy product totals for the year ended June 2007 were 3,500, according to Mintel's Global New Product Database, up from 2,403 for the same period in 2006. More than 38 percent (1,342) of new product confectionery launches through June 2007 contained a health claim, compared with nearly 27 percent (639) bearing a health claim for the year ended June 2006. Total retail confectionery sales for 2006 were $28.9 billion, a 2.8 percent increase over the prior year, according to the National Confectioners Association.
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The real excitement--healthy or indulgent--centers on chocolate.
According to Mintel, sales of chocolate through all channels increased 129 percent from 2001 to 2006, from $896 million to $20.5 billion. It's growing at a rate of about 14 percent a year. The impetus for consumers, it seems, is self-gifting/reward, as well as the positive health appeal of dark chocolate.
The light side of dark
'In years past, milk chocolate was more popular than dark. Now it's the opposite,' says Allyson Myers, director of sales for specialty chocolate manufacturer and retailer Lake Champlain Chocolates, Burlington, Vt., who has seen sales of dark chocolate surge.
'Consumers are reading about the great health benefits of dark chocolate, including antioxidants, how it can lower blood pressure or help pregnant women have healthy babies,' says Myers.
It's not hard to find good news about dark chocolate. A study from the University of Cologne, Germany, published in The Journal of the American Medical Association, indicates that dark chocolate lowers high blood pressure.
Another study, from the National Institute for Food and Nutrition Research, Rome, as reported in Nature, reveals that dark chocolate is a potent antioxidant, capable of gobbling up pesky free radicals that are a chief culprit of heart disease and other ailments.
While consumers might be drawn to chocolate for satisfaction, they are wary of fat and calories. Research concedes that to gain the benefits from the chocolate, less of something else should be consumed to offset the added fat and calories. Marcia Mogelonsky, a chocolate expert and author of a Mintel chocolate report, says consumers are okay with eating small quantities of good chocolate, but because they're consuming less, they're more likely buying up when they do indulge. That in turn has led to higher sales of premium and super premium chocolate. Premium chocolates are those priced at $8 or more per pound ($0.50 or more per ounce).
Mintel reports that dark chocolate sales are up 49 percent between 2003 and 2006, from $1.26 billion to $1.88 billion, and premium chocolate sales are up 91 percent between 2002 and 2007.
While antioxidant tags are appearing with greater frequency on packages, more companies seem happy to focus on high cacao content.
'We label the cocoa content, because consumers are now savvy enough to know it refers to higher chocolate content, but we see ourselves as a luxury first, with health as a bonus,' says Lake Champlain's Myers.
Hershey's Cacao Reserve line, for example, displays the cocoa content on the label of its signature products, as do products in the Lindt Excellence line, Ghirardelli Intense Dark, E. and Guittard Chocolate Co., among others.
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Everybody wins
It's not just premium chocolate companies that are cashing in on dark chocolate's healthy glow. Hershey's Special Dark, for example, is a mass market product with a lot of consumer appeal. The product's sales through FDM channels (excluding Wal-Mart) were up 88 percent between 2004 and 2006, according to Information Resources Inc. In May, Hershey launched Special Dark Nuggets with Almonds.
Other mainstream brands hope for the same growth. New under the M&M's banner are dark chocolate peanut candies, launched in June. Snickers Dark and Snickers Almond Dark launched in April. Dove launched Extra Dark Chocolate with High Cacao Content in June, in both 63 percent cocoa and 71 percent cocoa content varieties. Dove promotes its new Dark Chocolate as a natural source of cocoa flavanols.
While currently not resonating with consumers on a large scale, other chocolate trends that tend to keep premium safely separated from mass market include single origin, organic and fair trade.
Mogelonsky says these practices, along with ethics, go hand in hand. 'For now, in the big wide world it's not that big a deal,' says Mogelonsky, whose research indicates these tags resonate most with consumers under the age of 35. She, like other industry observers, believes organic and fair trade will gain in importance in the coming years.
'We find the fair trade message resonates with almost all consumers once they have an understanding of what it means. Consumers who are already aware and looking for the Fair Trade seal include those most attuned to social justice and environmental issues,' says Debra Music, vice president of sales and marketing at Theo Chocolate, Seattle. Theo Origin Bars feature premium dark chocolate from Venezuela, Ghana, Ecuador, Madagascar and the Ivory Coast.
Interesting inclusions are no longer strictly the domain of boutique and artisinal chocolatiers, either. Lavendar or goat cheese may still be in the boutique stage, but other herbs, nuts and berries are going mainstream. On the fringe between artisinal and mainstream are superfoods, such as goji berries and green tea. Currently hitting the mass market are Hershey's Goodness Chocolate's Hershey's Extra Dark Cranberries, Blueberries and Almonds, and Hershey's Extra Dark Macadamia Nuts and Cranberries. Each contains natural flavanol antioxidants and features 60 percent cacao dark chocolate.
Milk chocolate
Dark chocolate may be the darling, but milk chocolate isn't letting go of the spotlight without a fight.
Milk chocolate is in a statistical tie with baked goods and ice cream/frozen yogurt as the most popular of nine sweet foods one could eat to satisfy a craving, according to Mintel. Dark chocolate comes in second.
Mogelonsky reports that milk chocolate still holds a lot of potential, particularly in the premium category.
The strategy being exercised by the Hershey Co., Hershey, Pa., is to extend the healthy message of dark chocolate to milk chocolate. The company is expanding its Goodness Chocolate line with Hershey's Antioxidant Milk Chocolate and Hershey's Whole Bean Chocolate. These products join Hershey's Extra Dark Chocolate and 60-calorie Hershey's Sticks in offering Hershey's chocolate with good-for-you benefits.
'Consumers are very interested in the goodness benefits of chocolate, including the antioxidants found naturally in dark chocolate,' Michele Buck, Hershey's senior vice president, chief marketing officer, said in a statement. 'Hershey's Antioxidant Milk Chocolate and Hershey's Whole Bean Chocolate bring the goodness benefits of dark chocolate to the broader milk chocolate category.'
Hershey's Antioxidant Milk Chocolate features more flavanol antioxidants than the leading dark chocolate while staying true to the taste of Hershey's Milk Chocolate.
Blurred lines
New formats, such as sticks, as well as inclusions--fruits, nuts and other textures--are evidence that the lines between confections and snacks are blurring.
'When asked why they selected chocolate, 56 percent of consumers said it was because they wanted a dessert or snack, so there is the thought that it can be a snack,' says Mogelonsky. 'It's not just a chocolate bar, it's also Luna and Pria that are chocolate ... there's a lot of competition, from ice cream, cookies, pies, etc.'
Mars Inc. is making sure it can provide a snack option for any day part. The Hackettstown, N.J., company has revamped a number of its noted brands to comply with guidelines established by the Alliance for a Healthier Generation, a joint initiative of the American Heart Association and the William J. Clinton Foundation. Companies meeting the Alliance's criteria for healthy foods stand a much better chance of regaining valuable vending space in schools across the nation.
Mars is calling the snacks Generation Max, and the line includes such iconic brands as M&M's, Snickers, Twix and 3 Musketeers. Generation Max products include cereal clusters, cookies, brownie bars, crackers and pretzel products, all 150 calories per serving or less, with less than 35 percent of calories from fat, 10 percent of calories from saturated fat, and 35 percent by weight of sugar per serving, along with additional nutrients.
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Kids' choice
Candy, predominantly in the nonchocolate arena, is about kids. Here, where the lines blur between toys and candy, health is worming its way in. Atlanta-based Innovative Candy Concepts took the bold move last year of removing sugar from its products and adding the SmartChoice tag to its popular brands that include Too Tarts and Screaming Sour Powder Pods. These 'better-for-you' sour candies in fruit flavors contain 18 calories per serving.
'As a manufacturer of confectionery products, I believe we have a responsibility to offer healthier alternatives while not just preserving, but actually enhancing the taste profiles of those products so that kids and adults alike will like them,' says Armand Hammer, president and chief executive officer of Innovative Candy Concepts. 'Traditionally, products that were categorized as 'healthier' or 'sugar-free' were perceived as tasting terrible. We strive to change that perception.'
Aside from the notion of sweet treat, Hammer says 'interactive, fun, colorful packaging resonates with kids.' He says that extreme sour remains big with kids, but he's also betting on the success of new spray candies, for kids and adults.
For kids: Melted Ice-Cream Spray Candy, in strawberry, blueberry and banana split melted ice cream flavors. 'These sprays are creamy, rich and taste spot on like the real thing, however, they are sugar free, diabetic-friendly and only 10 calories per serving and the sprays are super-sized, offering more candy for the cost,' says Hammer.
Just as the line between candy and snacks is blurred, so too is the line between candy and the package. Although sales are flat in the novelty sub-category, there's still plenty of excitement.
Funose Inc., Istanbul, Turkey, markets Vitviti Fun and Lollipocus products. Vitviti Fun chocolates are packaged in multiple-part tubes that convert to interconnecting pieces. Different tubes contain different parts that can be connected together for creative play. Lollipocus consists of a line of lollipops with moving parts imbedded in the candy.
Indulgence and fun reign
Health and wellness has permeated the confectionery category, but it hasn't diminished the indulgent nature of the category. Rather, a new emphasis on health and wellness has opened up the confectionery category to more consumers. But at the end of the day, it's all about taste and experience.
'Why do people eat chocolate? For no reason at all; they feel like it,' says Mogelonsky.
Unscientifically speaking, that goes for the whole category.
Sugar lows
Fifty-two percent of shoppers aged 65 or older find the claim 'lower in sugar' extremely or very important on labels, compared to 33 percent of shoppers aged 18-39 years old.
'Considering the greater concerns that older shoppers have about their diets, and the propensity for diabetes to increase with age, sugar concerns are higher amongst older shoppers.'
--Barbara Katz, HealthFocus International
Top 10 SKUs Company No. of New Product 1. The Hershey Co. 114 2. MasterFoods 102 3. Wrigley 79 4. Nestle 67 5. Cadbury Adams 55 6. Hershey Canada 49 7. Godiva 47 8. Starbucks Coffee 45 9. Regal Confection 40 10. Laura Secord 38 TOTAL CONFECTIONS SAMPLE 3,500 SKUs launched June 2006--June 2007 in North America. Source: Mintel Global New Products Database Category counts with health claims * Sub-Category No. of New Products Chocolate Confectionery 747 Gum 121 Sugar Confectionery 474 TOTAL SAMPLE 1,342 Total new product introductions June 2006--June 2007 in North America. * List of health claims can be found on page 6 Source: Mintel Global New Products Database Category counts Company No. of New Product Chocolate Confectionery 1,740 Gum 235 Sugar Confectionery 1,525 TOTAL SAMPLE 3,500 Total new product introductions June 2006--June 2007 in North America. Source: Mintel Global New Products Database
