Candy is a high-impulse item in convenience stores. In fact, many shoppers (49 percent) report that their candy purchases are unplanned, according to global research firm Envirosell.
U.S. convenience stores sell approximately 15 percent of all candy sold at the retail level – and an even greater percentage of chocolate. According to Nielsen data, convenience stores sell 41 percent of the unit volume of chocolate in the United States (excluding Walmart). Total convenience store sales for candy reached $4.5 billion in 2008.
Candy is the fifth most profitable in-store category in convenience stores, based on gross profit dollars. The average store has monthly candy sales of about $3,900 and profit of more than $1,900.
Chocolate bars lead all candy sales in convenience stores, followed by gum; bagged, repacked peg candy; candy rolls; mints and drops; non-chocolate bars; and novelties/seasonal.
According to an AC Nielsen recession vulnerability analysis, candy is one of the most recession-resistant categories. In fact, during the Great Depression, the unemployment rate exceeded 25 percent, yet the nation’s candy companies thrived, introducing products that remain favorites today: Snickers, Tootsie Pops, Mars bars with almonds and the Three Musketeers bar.
Almost 80 years later, candy remains a popular American indulgence. Envirosell founder and CEO Paco Underhill comments in an Associated Press article that although consumers are cutting back on major purchases, like cars and other big-ticket items, they still want to treat themselves with small indulgences or small rewards, such as chocolate.
Dark Chocolate: Dark chocolate has been generating positive publicity ever since researchers discovered that it contains about eight times the number of antioxidants as found in strawberries.
Candy makers such as Hershey say that the antioxidant capacity of a single serving of Hershey’s Extra Dark Chocolate (37g) equals three cups of tea, two glasses of red wine or 1-1/3 cups of blueberries. Hershey also funded a study at Yale University’s Prevention Research Center, which found that eating dark chocolate could result in short-term improvements in arterial function and blood pressure.
A University of Illinois study found that, as part of a balanced, low-fat diet, the daily consumption of Mars Inc.’s CocoaVia dark chocolate bars significantly lowered total cholesterol by 2 percent and LDL cholesterol (or “bad” cholesterol) by 5.3 percent in individuals with elevated cholesterol.
Portion control: According to the National Confectioners Association, candy manufacturers emphasize moderation and portion control through smaller candies and re-sealable packaging. Smaller-sized candies, many of which are individually wrapped, enable consumers to eat a little at a time, and re-sealable packaging helps promote moderation.
Better for you: Candy makers continue to launch new products that can be healthy, but without sacrificing flavor. Novelties have hit the market that are either new or brand extensions of existing products that tout “better for you” ingredients such as real fruit juice concentrate or sugar substitutes derived from the stevia plant, and the use of sweeteners such as sucralose. These products are popular among diabetics and dieters, or consumers looking to reduce their caloric intake.
Retro candy: What’s old is new with “old-fashioned” retro candy, products that have survived the test of time and are still popular favorites among Baby Boomers and considered unique to today’s younger generation.
Gross-out factor: These novelties feature unusual products such as candy boogers, acne, alien secretion, bugs, scabs, snakes, dirt — all of the things that might “gross out” an adult, but are entertaining to kids.
Bold flavors: Intense flavors such as fiery cinnamon, sweet and sour, or just plan sour, are kicking candy up a notch to keep up with evolving taste buds, as well as attract different demographics to the candy aisles.
Many candy makers rely on popular holidays such as Halloween, Easter, Valentine’s Day and Christmas to launch new products or offer limited-edition products. Candy makers also add excitement to their seasonal products with themed packaging or additional flavors. Seasonal confections add excitement to the candy category and increase brand awareness throughout the year. The limited-run products also give consumers something to look forward to.
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