Top 5 Snacks & Candy Stories of 2016

CHICAGO -- Corporate changes, consumer trends and product innovations made news in the world of snacks and confection in 2016. Click through for a look at some key stories that affected the convenience retail channel ...

Big names in confection made news in 2016 when they agreed to team up—or not.

Mars Chocolate and Wrigley announced they will become Mars Wrigley Confectionery, with headquarters in Chicago starting next year. The combination came about when Mars bought out Berkshire Hathaway’s minority stake in Wrigley in late September to take full ownership of the longtime Chicago gum company.

Mars Wrigley Confectionery brings together the heritages of Hackettstown, N.J.-based Mars Chocolate and Chicago-based Wrigley. Among its brands are Snickers, M&M's, Dove and Twix chocolates; Doublemint and Extra gums; Altoids and Lifesavers mints; and Skittles.

At the other extreme, a Hershey-Mondelez merger was derailed when The Hershey Co. of Hershey, Pa., rejected a $23 billion takeover deal from Mondelez, and Mondelez dropped its pursuit. Mondelez, based in Deerfield, Ill., said it believed that bringing together "two iconic America companies would create an industry leader with global scale in snacking and confectionery and a strong portfolio of complementary brands." But it wasn't meant to happen, at least not in 2016.

One possible roadblock is the trust that controls Hershey. Pennsylvania's attorney general has threatened to take the trustees to court if they don't make governance reforms at the trust, and several longstanding board members have departed. The trust is likely to undergo a compete reconstitution before Hershey could become a player in a merger or sale, something that could happen in 2017.

Protein-rich foods and healthy, “mindful” snacks continue to grow, driven by ongoing consumer demand.

The natural trend is particularly noticeable among small and midsize companies, which continued to seize market share from larger CPG competitors. Quest Nutrition, Kind and Sargento Foods, makers of mindful snacks, are among the companies with annual sales of less than $5 billion that ranked among the CPG industry growth leaders.

Clean ingredients, including reduction or elimination of artificial colors, made news across snacks and candy in 2016.

Health-focused foods also brought out consumer activists in 2016, with class-action lawsuits filed against manufacturers over use of the words "all-natural" on the labels of products that may contain trace amounts of pesticide residue called glyphosate.

As the nation focuses on ways to combat obesity, especially in children, sugar continues to be a target. To that end, more candy makers banded together in agreement to not advertise to children under age 12.

A new initiative aimed at smaller confectionery companies—the Children's Confection Advertising Initiative (CCAI)—was developed by the National Confectioners Association (NCA) and the Council of Better Business Bureaus (CBBB) to promote responsible advertising to children.

Six companies that make popular brands of candies are the charter participants of CCAI: Ferrara Candy Co., Ghirardelli Chocolate Co., Jelly Belly Candy Co., Just Born Quality Confections, The Promotion in Motion Cos. Inc. and R.M. Palmer Co.

CCAI is modeled after the Children's Food & Beverage Advertising Initiative, another program with similar objectives that includes larger confectionery companies such as American Licorice Co., Ferrero USA, The Hershey Co., Mars Inc., Mondelez International and Nestle.

"America's leading confectionery companies are committed to marketing their products responsibly, and participating in this program further solidifies that commitment," said John H. Downs Jr., NCA president and CEO. "The candy companies that are members of CCAI and CFBAI make the majority of the candy on store shelves in the U.S."

More meat-snack manufacturers are vying for consumer attention, ushering in a rise in variety and innovation. 

Soft jerky and chewy sticks and bars featuring gourmet meats were on display at the NACS Show this fall. Innovations came from major jerky brands, such as Oberto's trail blend combining bits of fruit and jerky, and Hershey's Krave in flavors of chili lime and black cherry barbecue. New players continue to emerge, including Chef’s Cut and Matador, while longtime favorites such as Slim Jim introduce new formulas. Many of these meat-snacks products boast clean ingredients and gourmet meats flavored with citrus, spices and exotic flavors. 

Has the consumer's palate become numb? So it would seem as flavors in all types of snacks—candy, gum, chips and popcorn—get bolder.

Haribo, Ferrera, Wrigley's and Albanese all cranked up the sour in their gummies. Chewing gums got new flavors and a boost of energy from some new players, including birthday cake, coconut lime and champagne flavors from Project 7 and Blast Power Gum with 80 milligrams of caffeine in each piece.

Chips, crackers and popcorn added more sizzle to the crunch. Mondelez launched Good Thins potato, oat and corn chips in flavors of white cheddar, sweet oat and flax and sea salt. Kettlecorn debuted Himalayan pink salt-flavored popcorn to the U.S. market, and General Mills offered Hot Buffalo Bugles.

On the flip side, PepsiCo's Frito-Lay already offered chips in flavors Flamin' Hot and Sea Salt and Cracked Pepper. When it asked consumers to selected new flavors such as Fiery Roasted Habanero and Korean Barbecue, they voted to keep the lineup as is.