Candy

Drug Store News,  May 20, 2002  

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No where was the candy business sweeter in 2001 than in chain drug stores, where sales grew at a rate at least twice the overall average pace set across the three channels combined.

A lot of that was driven by rather healthy seasonal sales, particularly, later in 2001 during the Christmas holiday period. In fact, according to Information Resources Inc. data compiled for the National Confectionery Association, the drug channel set the pace at Christmas. The business grew 4 percent during that period, reaching more than $178 million, and outpacing both food and mass outlets (excluding Wal-Mart), both of which were trending flat to negative.

And that is one trend that has continued into 2002. This past Valentine's Day period saw sales increase 6.7 percent versus the same time last year, topping $172 million and racking up $20 million more than supermarkets in Valentine candy.

Another 2001 trend worth noting, occurred in the gum category, where the business grew 9 percent in chain drug stores, fed by the continued emergence of newer, more advanced breath freshening gums. Most of this growth was sparked on the sugarless side of the equation, which was up in the 20 percent-range in drug stores last year, according to NCA, fed by brands such as Wrigley's Eclipse and Orbit and Adams' Dentyne Ice, which were up in the high double digits.

Top 10 brands in drug

Brand/segment                        $ sales (*)  % change

Altoids--breath freshener             $34.2         -9.7
Wrigleys Extra--sugarless gum          29.8         15.1
Hersheys--chocolate candy              28.7         10.4
M&Ms--chocolate candy                  27.6         -3.2
Lifesavers Creme Savers--hard sugar    25.0         17.9
candy
M&Ms--chocolate candy                  21.6         -3.1
Trident--sugarless gum                 20.9          2.3
Tic Tac--breath freshener              18.8         -1.7
Dentyne Ice--sugarless gum             17.8         34.3
Starburst--non chocolate chewy         16.7          6.8
candy

(*)Sales in millions
Top 10 gainers in drug

                                       $          %       $ (*)
Brand/segment                        sales (*)  change  change

Wrigleys Eclipse-sugarless gum       $16.6       82.0%   $7.5
Dentyne Ice--sugarless gum            17.8       34.3     4.5
Wrigleys Extra--sugarless gum         29.8       15.1     3.9
Lifesavers Creme Savers--             25.0       17.9     3.8
hard sugar candy
Snickers Cruncher--chocolate candy     3.9      587.8     3.3
Ferrero Rocher--chocolate candy       12.3       35.7     3.2
Hersheys--chocolate candy             28.7       10.4     2.7
Riesen--chocolate candy                7.4       57.3     2.7
Carefree Koolerz--sugarless gum        2.6         NA     2.6
Orbit--sugarless gum                   2.6         NA     2.6

Source: Information Resources Inc. for the 52 weeks ended Dec. 30

(*)Sales in millions
Candy scorecard

                          Total F/D/M (*)            Drug stores
Category/                $         % chg.         $         % chg.
segment              sales (**)  vs. yr. ago  sales (**)  vs. yr. ago

Chocolate candy      $4,087.9        2.0%     $1,055.9        2.9%
Non-chocolate candy   2,445.8        0.2         675.2        0.8
Gum                     864.6        3.7         199.2        6.6

                        Drug chains only
Category/                $         % chg.
segment              sales (**)  vs. yr. ago

Chocolate candy      $859.6          4.7%
Non-chocolate candy   561.0          2.5
Gum                   167.8          9.0

Source: Information Resources Inc. for 52 weeks ended Dec. 30

(*)Total F/D/M excludes Wal-Mart

(**)Sales in millions

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