Sucker Battles, Choco 'Bites' Heat Up, As Premiums Seek Fans of 'Good Stuff'

Brandweek,  Oct 30, 2000  by Mike Beirne

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The great lollipop war between M&M/Mars and Chupa Chups on one side and Hershey's Jolly Rancher on the other will heat up by year's end, though the timing seems to be accidental. Media support for Jolly Ranchers will be the highest the brand has seen since Hershey acquired the franchise from Leaf in 1997. Previous advertising included the giant fruit TV spot from Ogilvy & Mather, a tie-in with a Target ad and lots of trade print.

Measured media spending for Hershey's No. 2 non-chocolate candy was $5.9 million through July and $3.8 million last year, per Competitive Media Reporting. Along with more TV support, new packaging and redesigned POP hit retail next month. Hershey and agency reps declined to disclose details.

Brokers at last week's National Association of Convenience Stores show in New Orleans contended that the Jolly Ranchers strategy was set long before the industry got wind last summer of the marketing and distribution pact between Mars and Chupa Chups (Brandweek, June 5). Yet, trade sources said the pairing brought a new sense of urgency for Hershey, which had already kicked off discounts and T-shirt promos on orders from retail customers.

Chupa, with sales of $1.3 million in the $174 million lollipop category per Information Resources Inc., is getting national distribution through Mars' network and will now have more reason to break out peg and lay-down bags for grocery and mass channels--a direction that should lash the Spanish candy maker more closely with the Halloween season next year. Print ads, sampling and events will be backed by $12 million (Brand-week, Sept. 4) to keep the sucker as the hip and saucy tongue toy for 12-24s and not a kiddie pop, though the cartoonish packaging is kid and mom friendly. D'Arcy, St. Louis, is the agency.

Chupa will aim for youngsters via the new Mobile Pop, a $3.99 sucker packed in a working calculator, and Two to One, a lollipop and bubble gum stick with a hollow bottom that contains a toy inside. Chupa also rolls more radio and pr for its Melody Pop next year and will study whether the SKU's parrot mascot, "PJ," is relevant to kids. Elsewhere, Sathers will make a bagged candy push in c-stores with a roster of eight 99-cent SKUs via its Life-Saver, Planters and Trolli marks.

Hershey, meanwhile, will roll national TV, print and radio ads from January through September for Heath and Kit Kat extensions of its Bites bagged candy shipping next month. The budget will be significantly more than the $11.4 million spent during 1999. TV spots, via DDB Worldwide, likely will be the 15-second bursts that bring the candy to life through animation. The extensions are expected to push more growth for unwrapped bagged chocolates, which jumped more than 30% this year. Hershey reps predict Kit Kat will be the No. 2 SKU in the Bites lineup behind Reese's while Heath Bites--based on the country's top-selling toffee bar--could leap to No. 3. Hershey has committed to delivering a truckload of Bites to 2,800 Wal-Mart stores, which are planning in-store holiday promos similar to the Oreo stacking and Dubble Bubble bubblegum-blowing contests,

Further along the chocolate front was more evidence that American tastes are leaning toward darker and more European styles. Already, retailers like Target are stocking checkout aisles with premium bars like Perugina, Milkas and Seattle Chocolate for consumers who are impulsive but, as seen with coffee, cheese and wine, willing to spend their growing disposable income on the good stuff.

Ferrero will spend $25 million on new Rocher ads from McCann-Erickson, N.Y., from holiday through next year. TV, print and FSIs to 50 million homes will continue Rocher's upscale positioning as the perfect treat for entertaining guests. On another front, Callard & Bowser-Suchard is ditching its "Made Exclusively for You" ads that tested on billboards and bus shelters in Portland, Ore., San Francisco and Washington for a global effort that hits seven countries, including the U.S., next year. Also, Tobler Chocolate Orange has been rebranded as Terry's Chocolate Orange, lending more consistency to a line that will add a Terry's Chocolate Raspberry flavor for the holidays Ads from Young & Rubicam, N.Y., will mention both SKUs and tweak the "Smashing Good Taste" tagline. Finally, Mars' Valentine and Easter roster will include a new extension: gold foil-wrapped Dove Truffle Eggs.

Candyland has long been home to small entreprenuers, but consolidation is making the road to shelves much longer. Slotting fees jumped more than 20% during the past year, per estimates. Such fees are the top expenditure for Schuster Marketing, a Milwaukee maker of Blitz Power Mints, which reports paying retailers $1.3 million over three years.

"I could have spent that money on advertising," said Steve Schuster, president. "I look around at these little guys trying to break in now and I wonder if they realize what they're up against."