27 May 2013 Trends out of America’s biggest snack & candy expo

With snacking the predominant consumption trend in the US, there was an ebullient mood at last week’s annual National Confectioners Association’s Sweets & Snacks Expo in Chicago. Marketers showed off more than 2 000 new offerings in a trade show that covers three acres and attracted some 14 000 manufacturers and many thousands of candy buyers and other visitors.

In a sugary stampede, American candy makers big and small are rushing hundreds of new products to market this year hoping the innovations will bring sweet profits, reports AdAge.com. And no wonder: New product launches helped propel the $26-billion sweets and snacks industry to 2.5% growth in the year ending April 17, which is about double the growth of all grocery categories, according to SymphonyIRI.

Candy is “an affordable indulgence,” said Lawrence Graham, president of the NCA. “We are not recession-proof, but we are recession resistant.”

In other words, consumers might not be able to afford a big night on the town or a tropical cruise, but they still need their candy fix. Yet they are fickle, constantly searching for that new flavour or crazy combination – like sweet and spicy chili-covered hard candies and lollipops by a company called Triunfo-Mex.

Others are attempting to give consumers new excuses to eat candy — look no further than Sleep Squares, a bite-sized chocolaty treat by Slumberland Snacks that claims to help “snackers fall asleep fast”. And not surprisingly, plenty of companies are seizing on the nutrition trend, with gluten-free products especially popular.

The fastest-growing segments are toasted corn-nut snacks, up 18.3% in the last 52 weeks; nutritional health bars, up 15.1%; and chocolate-covered salted snacks, up 10.6%, according to SymphonyIRI data cited by the association.

Indeed, one of the most-successful launches last year was M&M’s Pretzel Chocolate Candies by Mars Chocolate North America. The pretzels will get a big push by the marketer this year, along with the company’s other big recent launch — Snickers Peanut Butter Squared, a mix of peanuts, caramel, nougat and milk chocolate, said Debra Sandler, Mars’ chief consumer officer.

While the candy category has always been peppered with innovations, “we are looking to do bigger innovations and make them last longer,” as opposed to relying on limited-time offerings, Sandler said. At the same time, Mars is looking to boost its Snickers-branded Marathon protein bar line with a line extension called “Smart Stuff”, which is “fortified with a blend of eight essential vitamins and minerals”.

Hershey Co, meantime, will next month launch a new twist on its classic Hershey bar and Kisses brand with a line extension called Air Delight, a new “aerated” chocolate, punctured with tiny holes on the inside meant to give the treats a “light and airy texture.”

Nestle USA is launching a Skinny Cow candy line, following up on the brand’s ice cream and frozen snack offerings. Hitting stores are Dreamy Clusters, crisps drenched in caramel and covered in chocolate, and Heavenly Crisp candy bars, wafers layered in chocolate or peanut butter and coated with more chocolate.

At 110 to 120 calories each, the marketer is trying to hit the “sweet spot between indulgent treats and better-for-you snacking,” said Tricia Bowles, manager for division and brand affairs in Nestle’s confections and snacks division.

Wm Wrigley Jr Co, owned by Mars, is expanding its Extra gum Dessert Delights line with Apple Pie, set to debut in September, following the recent launch of Orange Creme Pop, while introducing a tropical flavour called Swerve to its 5 gum lineup.

Not to be outdone, Jelly Belly is re-releasing its Bertie Bott’s Every-Flavour Beans line in a tie-in with the final film in the “Harry Potter” movie series set to hit theatres soon. The beans come in Soap, Sausage, Dirt, Black Pepper, Grass and, yes, Rotten Egg. “All these flavours taste exactly like they’re named,” said Jelly Belly spokeswoman Tommi Holt. “It’s a very shocking experience.”

Trending view from Euromonitor

Matthew Hudak, Research Analyst at Euromonitor, visited the Sweets & Snacks Expo and lists these four key trends in snacks and candy:

1. Healthy offerings ie plenty of veggie chips or candy products with added vitamins or antioxidants.
2. Candies getting smaller, with miniuturised versions of key brands.
3. Meat snacks are getting ever spicier; anything to add bold flavour. New on the market is Turkey Jerky.
4. Chip makers making more meat-flavoured options, ie hot dog, ribs, steak.

Trending view from www.confectionerynews.com

High-end chocolate

With all signs pointing toward the global economy coming out of the doldrums, chocolatiers are coming out with an increasing number of premium-positioned chocolate bars, with snazzier ingredients and higher price points than the supermarket checkout standbys.

Let’s get small

Downsizing (whether in the interest of satisfying smaller appetites, serving diet-conscious consumers or simply being adorable) is a frequent theme in new products this year. Among the most notable: Hershey has launched Kit Kat Minis (winner of the 2013 Chocolate Innovation Award), unwrapped miniscule versions of its chocolate-and-wafer bar poured into a flexible pouch.

Rival Mars hopes to hit it big by going small with Snickers Bites and Milky Way Bites; under its Wrigley umbrella, the company is also offering Starburst Bites and Lifesaver Bites.

Hot stuff

Consumers and retailers alike have a hankering for spicy treats, whether they come from the sweet or the savoury end of the spectrum. Jelly Belly now offers Tabasco as one of its jelly bean flavours (winner of the 2013 Novelty Innovation Award). Additionally, the American Gourmet Group’s Chipotle Dark Chocolate Bar imparts chocolate with a spicy, smoky flair.

New traditions

With an increasing number of consumers concerned about sustainably grown ingredients, interested in exploring new flavour territories, and diagnosed with food allergies (such as celiac disease), new ingredients and flavours are showing up in confections and snacks. Quinoa, a grain that’s been making an appearance in snack chips for the past few years, is starting to show up on the sweet side of things — one such product is I Heart Keenwah’s Chocolate Sea Salt Quinoa Clusters.

Source: AdAge.com; Euromonitor, www.confectionerynews.com

Winners of the Innovation Awards at Sweets & Snacks 2013