Milling & Baking News Corporate Profiles - October 2012 - (Page 54)

Confectionery Confectionery Cocoa, sugar prices level off W hile an atmosphere of frugality still dominates the consumer marketplace, confectionery manufacturers may feel pressure to raise prices in order to absorb their own increased costs at the wholesale level. Raw materials prices are no longer speeding ahead, but there are other costs to consider. Will the marketplace balk at paying more? Confectioners have reason to believe that demand for their products will remain strong as consumers continue to want good-tasting, relatively inexpensive snacks to brighten their day. Sugar and cocoa prices have begun to right themselves toward more traditional levels in 2012, despite some of the same negative events such as political unrest and unfavorable weather that boosted prices to near-record levels in 2011. Industry efforts to contain costs at the manufacturing level and a better outlook for the U.S. sugar beet crop have contributed to a moderation in demand that has lessened upward pressure on prices. Despite civil unrest in top chocolateproducing Ivory Coast and drought conditions in Ghana’s cocoa regions, lower prices for one of the key confectionery ingredients — cocoa powder — along with lower sugar prices had a meaningful impact on a key segment of the sweet snacks industry: chocolate candy. Volatility always seems to be a factor of the cocoa market, and 2012 was no exception. Cocoa futures, which had been rising in price throughout 2012 on tight supplies and continuing outbreaks of violence, continued to ﬁrm following late-summer incidents where at least 14 people were killed in attacks on the police and army in the Ivory Coast. In turn, Ghana, another major African producer of cocoa, was battling drought. That Leading chocolate candy box/bag/bar <3.5 oz unit sales by brand M&M’s Snickers Hershey's Reese's Kit Kat Twix 3 Musketeers Milky Way York Dove Source: SymphonyIRI 170,045,400 158,107,900 125,525,500 124,748,400 86,288,640 41,981,620 38,218,480 36,201,800 30,617,370 26,390,770 52 weeks ended Aug. 12, 2012 country had to lower its outlook for the 2011-12 crop year that ended Sept. 30 to 900,000 tonnes and to 800,000 tonnes for the 2012-13 marketing year. These fundamentals, which seemed to LEADING LEADING chocolate candy vendors BOX/BAG/BAR <3.5 OZ 1 2 3 4 5 6 7 8 9 The Hershey Co. Mars, Inc. Nestle USA, Inc. Ferrero USA, Inc. Russell Stover Candies, Inc. DeMet’s Candy Co. Endangered Species Ghirardelli Chocolate Co. Whitman’s Chocolates Private label Total Dollar sales $496,289,700 $449,385,600 $83,467,860 $14,330,700 $11,828,350 $10,225,100 $8,375,373 $8,235,907 $6,600,760 $6,812,876 $1,178,947,000 % change from year ago 1.2% 1.4% 5.4% 10.3% 47.3% 6.1% 34.2% -29.5% -16.7% 2.1% 2.1% chocolate candy brands BOX/BAG/BAR <3.5 OZ 1 2 3 4 5 6 7 8 9 10 M&M’s Snickers Reese’s Hershey’s Kit Kat 3 Musketeers Twix Milky Way Dove York Total Dollar sales $153,572,200 $136,269,100 $120,057,300 $110,498,000 $77,823,930 $32,830,560 $32,792,490 $29,301,640 $28,097,770 $25,986,220 $1,178,947,000 % change from year ago -1.0% 2.4% -2.4% -1.7% 1.6% -9.5% 2.8% -3.9% 34.1% 6.1% 2.1% Data for 52 weeks ended Aug. 12, 2012 Total U.S. - Supermarkets, Drugstores and Mass Merchandisers excluding Wal-Mart Source: SymphonyIRI 54 \ October 2012 Milling & Baking News • Food Business News • Baking & Snack • Meat & Poultry Corporate Proﬁles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - October 2012

Milling & Baking News Corporate Profiles - October 2012