Corporate Profiles - 2024 - 42

GRAIN-BASED FOODS
chocolate candy and snack-size chocolate candy saw dollar sales
increase 72% and 4.8%, respectively, to reach $42 million and
$1.44 billion, respectively.
Confectionery categories experiencing decreases in dollar sales
for the 52 weeks ended July 14 included sugar-free chocolate candy
(down 8.6% to $301 million), specialty nut/coconut candy (down
5.3% to $337 million), caramel/taffy apples/kits/dips (down 1.8%
to $144 million), regular gum (down 1.5% to $289 million) and
licorice box/bag (down 0.4% to $432 million).
Indulgence and chocolate are closely connected, with 90% of
people naming chocolate when asked what they tend to purchase
when they're looking for a treat, the NCA report said.
To maintain and expand market share, confectionery manufacturers,
like other consumer packaged goods companies, are investing in
R&D and innovating with new products.
In 2023, Mars, Inc. introduced frozen treats under its Dove, Twix
and M&M's brands, and the company said it hopes to generate $1
billion in frozen treat and ice cream sales by 2030. Hershey recently
innovated with hot cocoa kits and some plant-based options under
its Hershey's and Reese's brands, and Ferrero USA announced the
debut of a Tic Tac Chewy! sugar candy product in September. Those
are just a few examples of the trend.
When it comes to mergers and acquisitions, the confectionery
sector has been busy. Cadbury and Toblerone parent Mondelez International,
Inc. bought Clif Bar in 2022, as well as Grupo Bimbo's
Ricolino confectionery business. In 2023, the J.M. Smucker Co.
bought Hostess Brands, which manufactures Twinkies snack cakes.
However, the largest M&A deal involving the sector has yet to take
place, which is Mars' recently announced intention to acquire Kellanova
for nearly $36 billion. If the deal is completed in early 2025
as planned, Mars' business centered on chocolate and confectionery
- through its Snickers, M&M's and Skittles brands, among others -
would broaden to include Kellanova's extensive salty snacks portfolio.
While the confectionery sector offers many well-known and popular
brands, it is not without criticism and controversy. Sugar reduction
remains a target for CPG companies as consumers scrutinize added
sugar levels on product labels, sugar prices keep rising, reliance on
sugar imports continues, and alternative sweetener options grow.
Production issues also have attracted attention. A multi-year
study by researchers at George Washington University published
in July found elevated levels of lead and cadmium in a variety of
chocolate products, leading them to suggest consumers limit dark
chocolate consumption to one ounce per day.
The NCA responded by stating chocolate and cocoa are safe to
eat, and coverage of the study omitted " important context and has
left consumers with unanswered questions " about sources of lead
and cadmium in the diet such as tropical soils and dust.
CPG manufacturers in the confectionery category face a challenging
42 \ October 2024
balancing act as they attempt to meet consumer preferences, maintain and
increase market share and stay ahead of ever-increasing commodity and
production costs. The good news is consumers show no sign of slacking off in
their pursuit of sweet treats for any and all occasions. CP
LEADING
sugarless gum vendors
1 Mars, Inc.
2 Perfetti Van Melle
3 The Hershey Co.
4 The Pur Co., Inc.
5 Rev Gum LLC
6 Project 7, Inc.
7 Simply Gum LLC
8 The Bazooka Cos., LLC
9 Refresh X, Inc.
Private label
Total
LEADING
sugarless gum brands
1 Wrigley's
2 Trident
3 Ice Breakers
4 Mentos
5 Orbit
6 Pur
7 Dentyne
8 Rev Gum
9 Airheads
10 Hubba Bubba
Total
LEADING
regular gum vendors
2 Concord Confections Inc.
NO SUGARLESS
1 Mars, Inc.
3 The Hershey Co.
4 Simply Gum LLC
5 Ford Gum & Machine Co., Inc.
6 The Bazooka Cos, LLC
7 Sunny Days Entertainment LLC
8 Kidsmania Inc.
9 Chicles Canel's SA de CV
Private label
Total
% change
from
Dollar sales
$153,055,277
$60,809,516
$38,375,430
$7,568,332
$6,221,467
$3,966,861
$2,824,751
$2,804,920
$2,083,113
$2,134,889
$289,009,750
year ago
-1.8%
2.1%
15.5%
5.8%
-49.2%
5.0%
9.8%
60.1%
5.7%
112.1%
-1.5%
Data for 52 weeks ended July 14, 2024
Total US - Multi-outlet with C-Store (Supermarkets, Drugstores and Mass Market Retailers,
Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains)
Source: Circana OmniMarket Integrated Fresh
% change
from
Dollar sales
$917,648,860
$341,865,670
$329,436,645
$278,593,633
$231,170,566
$26,573,670
$17,637,479
$8,019,012
$4,202,096
$4,093,084
$2,169,353,621
year ago
7.0%
3.0%
-1.0%
7.7%
5.2%
92.4%
-15.5%
157.4%
-8.6%
NA
5.5%
% change
from
Dollar sales
$1,154,064,961
$642,299,444
$329,437,143
$26,573,670
$8,019,012
$1,063,324
$961,053
$735,624
$3,777,083
$2,169,353,621
year ago
6.8%
4.2%
-1.0%
92.4%
157.4%
6.7%
2.8%
20.2%
$554,127 1,332.8%
-16.2%
5.5%
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Corporate Profiles
INDUSTRY REVIEW: confectionery
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Corporate Profiles - 2024

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