CARMI, Ill. -- About five years ago, the folks at Huck’s Convenience Stores, Carmi, Ill., started to up the ante on chocolate king-size offers at a time when this movement seemed downright prescient.
What put the bug in the category manager’s ear? It was when the Hershey’s category management team approached the chain about the upside of chocolate king-size varieties as a core inclusion to the set. King sizes are typically the domain of supermarkets, drug and mass merchandisers. But tell that to Randy Adams, center store category manager for the 116-store Huck’s chain.
Eventually, they made a decision to remove one 12-foot section of gum and mint and allocate that space to king-size chocolate varieties.
The confection steward has seen his share of fluctuations in store departments across the chain, and the trend shifts continue unabated.
Since catching up with Adams two years ago, Convenience Store Products looked into the tweaks and adjustments that the company has made since to the set, and what is driving the category at Huck’s overall.
Convenience Store Products: In downsizing of gum and mints, you reduced this section yet saw gum and mint sales remain the same—actually relinquishing 30 gum/mint SKUs in that swap-out.
Adams: We just finished reviewing the category, and we’re still slightly up on the gum category, which is unusual in our channel. Mints have been up also, but we are about in line with the rest of the c-store world.
Q: The nonchocolate confection offers such as Skittles and Starburst in king sizes had once been dominant prior to the shift to king-size chocolate. Have you made any shifts with these king varieties based on trends?
A: This is where I’m seeing the most growth in my in-line set. The only problem with most of the new king-size packages is the physical size of the packs. They take up a lot of room on the shelf, but they are such good sellers that I almost can’t ignore them.
Q: The mini bagged candy still seems to be maintaining momentum. Have you gone in any new direction with these packs?
A: If you’re talking about stand-up bags, we have gone in to these in a big way, and it has been a very successful decision. I started with one 4-foot shelf, expanded quickly to two shelves, and this spring will be adding a third shelf. The sales are very strong, and the ring is higher than most of the [rest of the] candy department.
Q: Has there been any decisions to shift plan-o-gram decisions based on healthy-snacking trends?
A: In terms of healthy candy, no. We added what we call a Good4U set a few years ago to capitalize on all of the innovation in PowerBars, Kind Bars, Clif Bars, etc. and it has remained one of our fastest-growing sections year to year. I’m adding two shelves to that plan-o-gram this year, in fact.
Q: You had found that when it came to gum/mint people, the main thing is that they were “flavor loyal” more than brand or segment loyal. So offering a peppermint confection in chocolate instead of that peppermint in gum or mint meant nothing was lost in translation with customers. Any new category decisions around the flavor equation?
A: It seems as if “hot” is going to be the new direction. We did an in-and-out on a Tabasco chocolate that did very well, and I’ve looked at a few other items with that flavor profile. Others, such as salted caramel and sea salt, have been around a while now but show no signs of letting up in popularity.
Q: The top 10 candy brands have rarely changed positions. Based on new products hitting the market, have there been any newbies that have supplanted the top 10 order?
A: No, the top 10 have been the top 10 for as long as I can remember. It will take something truly innovative to knock one of them out.
Q: Finally, what type of lessons have you learned as a category manager about confection over this past year, when you and your team had to adapt, perhaps on the fly, to stay one step ahead of the game?
A: I think this applies not only to confection but to everything right now. I believe we’re in a very tough economy. I think people are watching every penny, but that doesn’t necessarily mean they’re buying less expensive items. I see people looking for value right now. I think that’s why the shift happened from concession candy to peg bags.
Customers knew there was much more value in the peg bags. I see the same movement now on the stand-up bags. Yes, they might be over $3 per bag, but the value is much better than a single-serve item. Customers are smart and they know a bargain isn’t always the cheapest thing on the shelf.
Click here to view a Convenience Store Products slideshow focused on Huck's candy strategy.
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