CSP Magazine

Candy: Chocolate Candy 2014

Where the Gains Are

C-store sales, 52 weeks ending Dec. 29, 2013

Candy overall had a sweet year—relatively—in 2013, with chocolate posting a 1.4% increase in c-store unit sales, according to IRI, after a decline in 2012. The larger package sizes—3.5 ounces and greater—saw units up nearly 12%. Nielsen reports a 3% increase in chocolate unit sales, with king-size up more than 7%, as more consumers trade up from standard.

Nielsen and IRI figures differ on the performance of nonchocolate: IRI shows a 1.2% dip in unit sales, while Nielsen reports a nearly 3% increase. Both agree on the weak state of gum, however. IRI reports a nearly 8% decrease in c-store unit sales, and Nielsen figures show a nearly 6% decline.

C-store sales of seasonal candy rose 14%, according to Nielsen, with units up more than 5%.

SegmentC-store sales
($ millions)
PCYACase sales
(millions)
PCYA
Total chocolate$2,552.95.1%1,821.71.4%
--Less than 3.5-oz.$2,162.83.6%1,597.70.3%
--Greater than 3.5-oz.$314.214.5%163.611.5%
Nonchocolate$1,864.63.9%1,518.6-1.2%
Gum$1,106.3-7.1%834.2-7.9%

Source: IRI

SegmentC-store sales
($ millions)
PCYACase sales
(millions)
PCYA
C-store sales, 52 weeks ending Dec. 28,2013    
Total chocolate$2,677.96.1%1,856.03.0%
--King-size$1,505.59.2%890.87.2%
--Standard$946.7-0.3%873.0-1.0%
Nonchocolate$1,532.85.7%1,210.02.8%
Gum$1,021.3-6.8%763.6-5.9%
Breath fresheners$243.04.7%154.81.3%
Seasonal (total candy)$114.714.0%89.95.6%

Sources: The Nielsen Co., The Hershey Co.


Distributor Data: Candy Shipments

Calendar year 2013

In 2013, king-size and hand-to-mouth chocolate, bagged candy and nonchocolate posted decent dollar gains in shipments from McLane.

SegmentAverage shipments per store per week (in dollars)Average shipments per store per week
(dollar growth)
PCYA
Total chocolate bars$190.84$4.602.5%
--King$112.42$5.695.3%
--Standard$68.25-$4.72-6.5%
--Hand to mouth$9.59$3.4857.0%
--Multipack$0.57$0.1433.9%
Gum$89.60-$6.19-6.46%
Bagged candy$76.57$7.7611.3%
Nonchocolate$57.98$5.119.7%
Candy rolls/mints/drops$22.58$0.210.9%
Seasonal candy$8.61-$3.35-28.0%
Theater pack candy$6.03-$0.86-12.5
Premium/large/giant bars$5.64$2.86102.4
Change makers/penny$4.72$0.317.0
Novelty candy$3.21-$0.81-20.1
Other candy$6.86$4.36173.9

Source: McLane Co.

Market Share by Pack Size

C-store sales, 52 weeks ending Dec. 28, 2013

King-size gained nearly 2 points in share of c-store candy sales by both dollars and units, according to Nielsen figures. Single gum and standard loose candy gave up the most ground. Hand-to-mouth pouches, while contributing less than 1% of category sales, still posted strong enough growth to gain in share of dollar and unit sales.

Pack sizeShare of
dollar sales
Point
change
Share of
unit sales
Point
change
King-size31.1%1.825.2%1.6
Standard loose27.6%-1.037.8%-0.7
Single gum17.8%-2.118.7%-1.4
Peg11.7%0.59.4%0.3
Breath freshener4.4%0.13.9%0.0
Theater box1.8%-0.41.5%-0.3
Hand-to-mouth pouches0.8%0.60.3%0.2
XL/giant bars0.7%0.10.4%0.0
Portable gum0.5%0.10.3%0.1
All other3.6%0.22.6%0.2

Sources: The Nielsen Co., The Hershey Co.


Latest Quarter: Chocolate UPCs

C-store sales, 13 weeks ending Dec. 29, 2013

The final quarter of 2013 saw a 3.3% bump up in unit sales of chocolate candy, according to IRI. The 2.8-ounce Reese’s Peanut Butter Cups—followed closely by the 3.29-ounce Snickers—were the top-selling UPCs.

UPCC-store sales
($ millions)
PCYAUnit sales
(millions)
PCYA
Reese’s Peanut
Butter Cups (2.8-oz.)
$27.71.4%16.10.3%
Snickers (3.29-oz.)$27.02.8%16.02.5%
Snickers (1.86-oz.)$24.1--21.9--
M&M’s Peanut (3.27-oz.)$17.52.7%10.10.5%
Kit Kat (3-oz.)$15.5-1.0%8.9-2.1%
Twix 4 To Go (3.02-oz.)$15.35.9%8.84.2%
Reese’s Peanut
Butter Cups (1.5-oz.)
$13.50.8%11.8-0.6%
Reese’s Sticks (3-oz.)$12.320.0%7.119.0%
Kit Kat (1.5-oz.)$12.3-7.8%10.7-8.8%
M&M’s Peanut (1.74-oz.)$12.06.7%10.79.1%
Total (including
UPCs not shown)
$606.86.0%427.93.3%

Source: IRI


Seasonal UPCs

C-store sales, 52 weeks ending Dec. 28, 2013

C-store sales of seasonal candy rose 14% in 2013, with units up nearly 6%, according to Nielsen figures. Reese’s Peanut Butter Eggs were the Nos. 1 and 2 top-selling UPCs in this segment.

UPCC-store sales
($ millions)
PCYAUnit sales
(millions)
PCYA
Reese’s Peanut
Butter Egg (2.4-oz.)
$13.94.0%7.010.8%
Reese’s Peanut
Butter Egg (1.5-oz.)
$12.8-9.5%14.2-11.3%
Reese’s Peanut
Butter Cup Holiday (1-lb.)
$9.966.6%0.872.0%
Reese’s Peanut
Butter Pumpkin (2.4-oz.)
$8.520.3%6.021.1%
Cadbury Crème Egg
(1.2-oz.)
$8.1-10.0%8.5-10.6%
Reese’s Peanut
Butter Pumpkin (1.2-oz.)
$7.3-2.0%7.7-6.7%
Reese’s Peanut
Butter Tree (2.4-oz.)
$6.424.2%4.218.4%
Reese’s Peanut
Butter Tree (1.2-oz.)
$4.93.3%5.0-1.5%
Cadbury Scream Egg
(1.2-oz.)
$2.6-20.1%2.9-13.9%
Cadbury Candy-
Coated Mini Eggs (2.2-oz.)
$2.4--1.7--
Total (including
UPCs not shown)
$114.714.0%89.95.6%

Sources: The Nielsen Co., The Hershey Co.


Category Management Best Practice

C-store shoppers move through the c-store and make buying decisions quickly, so secondary displays are key, says Larry Lupo, vice president of sales for the convenience and drug channels for Mars  chocolate North America.

“These second, third and fourth interruption points create an opportunity for a larger, more profitable ring,” says Lupo. He cites “hot spots” such as the register, the coffee rack and in the cooler vault.

C-stores should also capitalize on what Lupo describes as “dwell time.”

“Nearly one-third of c-store shoppers wait in line to check out, so floor displays near the checkout area—such as those advertising promotions and seasonal confections—will convert shoppers into  buyers,” he says.

Chocolate UPCs, Standard and King-Size

C-store sales, 52 weeks ending Dec. 28, 2013

C-store sales of king-size chocolate candy rose more than 9% in 2013, while standard-size sales failed to reverse the long-term erosion affecting that package size, according to Nielsen.

King-size    
UPCC-store sales
($ millions)
PCYAUnit sales
(millions)
PCYA
Reese’s Peanut Butter
Cups (2.8-oz.)
$145.39.7%86.67.6%
Snickers (3.29-oz.)$134.2-1.6%80.0-4.7%
M&M’s Peanut (3.27-oz.)$88.1-2.9%52.1-7.1%
Kit Kat (3-oz.)$81.38.0%48.16.4%
Reese’s Sticks (3-oz.)$62.520.0%35.421.5%
Twix Caramel (3.02-oz.)$62.4-3.0%36.3-5.7%
Reese’s Big Cup (2.8-oz.)$58.614.9%34.414.4%
Hershey’s Milk Chocolate
with Almonds (2.6-oz.)
$46.84.3%27.73.2%
Reese’s Fast Break (3.5-oz.)$46.112.6%27.211.8%
Reese’s Minis (2.5-oz.)$45.0106.8%27.37.9%
Total (including
UPCs not shown)
$1,505.59.2%890.87.2%
     
Standard    
Snickers (1.86-oz.)$98.7-1.0%86.2-0.8%
Reese’s Peanut
Butter Cups (1.5-oz.)
$60.03.5%53.00.6%
Kit Kat (1.5-oz.)$56.0-0.4%48.7-1.2%
M&M’s Peanut
(1.74-oz.)
$49.64.5%43.54.9%
Hershey’s Milk
Chocolate (1.55-oz.)
$39.57.2%34.15.6%
Hershey’s Milk
Chocolate with
Almonds (1.45-oz.)
$34.57.4%29.65.6%
Twix Caramel (1.79-oz.)$29.9-6.2%26.0-6.0%
M&M’s Milk
Chocolate (1.69-oz.)
$27.71.8%24.41.7%
Hershey’s Cookies
‘n’ Crème (1.55-oz.)
$26.91.4%23.00.1%
Nestlé Butterfinger
(2.1-oz.)
$23.16.6%20.34.9%
Total (including
UPCs not shown)
$946.7-0.3%873.0-1.0%

Sources: The Nielsen Co., The Hershey Co.


Market Share by Candy Type

C-store sales, 52 weeks ending Dec. 28, 2013

Chocolate is coming closer to providing one-half of c-store candy sales, according to figures from Nielsen.

SubcategoryDollar sharePoint change
Chocolate48.9%1.3
Non-chocolate28.0%0.6
Gum18.7%-2.0
Breath fresheners4.4%0.1

Sources: The Nielsen Co., The Hershey Co.


Category Management Best Practice

With seasonal sales on the upswing, c-stores have a big opportunity to get a piece of the action. Lupo of Mars Chocolate North America suggests convenience-store retailers follow these practices to maximize the seasonal opportunity:

  • Create permanent off-shelf seasonal fixture space.
  • Place boxes or counter units of best-selling seasonal brands next to the cash registers.
  • Use seasonal merchandising vehicles to create points of interruption to maximize impulse sales.
  • Take advantage of manufacturers’ point-of-sale materials to generate in-store excitement.

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