Report: Special Series: The U.S. Market for Chocolate, Candy, Gum & Mints, Volumes I-III TOC

Volume I:

I. Executive Summary

II. The Market

Market Size And Composition

Market Definition
NCA/CMA Members' Shipments Of Chocolate Candy
Doc Manufacturers' Shipments Of Chocolate Candy
Per Capita Consumption Of Chocolate Candy
Chocolate Imports And Exports
Table: U.S. Retail Sales Of Chocolate Candy, 1998-2002
Tables/Figures: Mass-Market Chocolate Candy Sales By Category, 1997-2001

Projected Market Growth

Consumption Trends
Demographic Mix And Market Growth
Mass Vs. Gourmet Growth
Nutritional Concerns & Feel-Better Chocolates
Role Of Distribution Channels
Role Of Internet
Table: Projected U.S. Retail Sales Of Chocolate Candy, 2002-2007

III. Competitive Situation

Marketer And Brand Shares

Mass Vs. Gourmet
Tables/Figures: Mass-Market Shares

Product And Promotion Trends

Number Of New Product Introductions
Flavor Trends
Packaging And Sizing Trends
Kids, Licensed, And Novelty Products
National Ad Expenditures
Examples Of Consumer Advertising And Promotion

Retail And Internet Trends

Tables/Figures: Mass-Market Shares And Growth By Retail Sector
Focus On Mass Merchandisers
Focus On Supermarkets
Focus On Drugstores
The Role Of The Front-End
Gourmet/Specialty Retailing
Working The Web: Brand Building And E-Commerce
Examples Of Marketer Sites: www.hersheys.com; www.mms.com; www.godiva.com; www.sees.com; www.ethelm.com
Role Of Third-Party Sites

IV. Competitive Profiles

Archibald Candy Corp.
Brach's Confections, Inc.
Godiva Chocolatier, Inc.
Hershey Chocolate Usa
Lindt & Sprüngli
- Lindt Chocolates
- Ghirardelli Chocolates
M&M/Mars
Nestlé USA, Inc.
Russell Stover Candies, Inc.
Seefs Candies
Tootsie Roll Industries, Inc.

V. The Consumer

Demographics For Chocolate Candy Overall, By Consumption Level, By Candy Type, And By Brand
Consumption By Gender
Consumption By Race/Ethnicity
Consumption By Age Bracket
Consumption By Household Composition
Consumption By Household Income & Individual Income

Appendix I: Examples Of Advertising And Promotion

Volume II:

I. Executive Summary

II. The Market

Market Size and Composition

Market Definition
Table: U.S. Retail Sales of Non-Chocolate Candy, 1998 to 2002
Table: U.S. Shipment Volume for Non-Chocolate Confections
Tables/Figures: Mass-Market Non-Chocolate Candy Sales by Category, 1997 to 2001

Projected Market Growth

Consumption Trends
Non-Seasonal vs. Seasonal Candy Trends
Demographic Mix and Market Growth
Role of Kids Candies
Nutritional Concerns, Juice Candies, and Diet Products
Role of Distribution Channels
Table: Projected U.S. Retail Sales of Non-Chocolate Candy, 2002 to 2007

III. Competitive Situation

M&A Activity

Hershey Foods Corp. Up for Sale
Hershey sells Heide brands to Farley's & Sathers
Catterton Partners buys Farley's & Sathers from Kraft Foods
Sherwood Brands purchased Asher Candy, KR Candy Corp.

Marketer and Brand Shares

Tables/Figures: Mass-Market Shares

Product and Promotion Trends

Number of New Product Introductions
Flavor Trends
Packaging and Sizing Trends
Kids, Licensed, and Novelty Products
National Ad Expenditures
Examples of Consumer Advertising and Promotion

Retail and Internet Trends

Tables/Figures: Mass-Market Shares and Growth by Retail Sector
Focus on Mass Merchandisers
Focus on Supermarkets
Focus on Drugstores
The Role of the Front-End
The Convenience Store Sector
Gourmet/Specialty Retailing
Working the Web: Brand Building and E-Commerce
Examples of Marketer Sites

IV. Competitive Profiles

Bobs Candies, Inc.
Brach's Confections, Inc.
Chupa Chups
Farley's & Sathers Candy Co., Inc.
Hershey Chocolate USA
Jelly Belly Candy Co.
Just Born, Inc.
Kraft Foods
M&M/Mars
Nestlé USA, Inc.
Pez Candy, Inc.
Spangler Candy Co.
Sherwood Brands
Tootsie Roll Industries

V. The Consumer

Demographics for Non-Chocolate Candy Overall, by Consumption Level, by Candy Type, and by Brand
Consumption by Gender
Consumption by Race/Ethnicity
Consumption by Age Bracket
Consumption by Household Composition
Consumption by Household Income & Individual Income

Appendix I: Examples Of Advertising And Promotion

Volume III:

I. Executive Summary

The U.S. Market for Gum, Mints, & Breath Fresheners

Wholesale Dollar Shipments and Per Capita Consumption
Overall Retail Sales at $3.7 Billion
Pockets of Growth
Projected Market Growth
Top Marketers and Brands
Top Advertisers
Wrigley in the Catbirdfs Seat
New Products and Market Saturation
Overview of Flavor Trends
Novelty, Licensing, and Packaging Strategies
Consumer Demographics
Figure 1-1: Top Gums and Breath Mints by Brands Most Often Used, 2002 (% of U.S. households)

II. The Market

Market Size and Composition

Note on IRI Market Data and Packaged Facts Figures
Market Definition
Wholesale Gum Shipments at $1.7 Billion
Wholesale Per Capita Gum Consumption at $6.27
Overall Retail Sales Approach $3.7 Billion
- Sales of Gum at $2.9 Billion
- Sales of Mints/Breath Fresheners at $746 Million
10% Compound Annual Growth Rate for Sugarless Gum
Backward Steps for Breath Fresheners
Sugarless Gum at 64% of Category
Supermarkets at 21% Market Share
Figure 2-1: U.S. Retail Sales of Gum, Mints, and Breath Fresheners, 1998-2002 (dollars)
Figure 2-2: U.S. Manufacturersf Pound and Dollar Shipments of Chewing Gum, Bubble Gum, and Chewing Gum Base, 1997-2001 (pound and dollar)
Figure 2-3: Wholesale Dollar Value/Pound U.S. Manufacturersf Shipments of Chewing Gum, Bubble Gum, and Chewing Gum Base, 1997-2001 (dollars)
Figure 2-4: U.S. Per Capita Consumption of Chewing Gum, Bubble Gum, and Chewing Gum Base: Pounds and Wholesale Dollar Value, 1997-2001 (pounds and dollar)
Figure 2-5: U.S. Retail Sales of Gum, Mints, and Breath Fresheners, 1998-2002 (dollars)
Figure 2-6: U.S. Retail Sales by Product Category: Gum vs. Breath Fresheners/Mints, 1998-2002 (dollar)
Figure 2-7: IRI-Tracked Retail Sales by Product Segment: Sugarless Gum vs. Regular Gum, 1998-2002 (dollar)
Figure 2-8: IRI-Tracked Retail Sales by Product Segment: Breath Fresheners vs. Plain Mints 1998-2002 (dollar)
Figure 2-9: Sugarless Gum vs. Regular Gum Share of Combined Sales Through IRI-Tracked Outlets, 1998 vs. 2002 (percent)
Figure 2-10: Breath Freshener vs. Plain Mint Share of Combined Sales Through IRI-Tracked Outlets, 1998 vs. 2002 (percent)
Figure 2-11: Share of U.S. Gum, Mints, and Breath Fresheners Market by Chain Retail Channel, 2002 (percent): 4 Types of Retail Channels, All Others

Market Forecasts

Pockets of Growth
- Growth Strategies
- gExtra Dutyh Sugarless Gums
- A Fiftysomething Future
- Hispanic Market in the Spotlight
- The Wal-Mart Express
Projected Market Growth
Overall Market to Exceed $4.2 Billion in 2007
Figure 2-12: Sugarless Gum vs. Regular Gum Share of IRI-Tracked Wrigley/Amurol Sales, 1998 vs. 2002 (percent)
Figure 2-13: Projected U.S. Population by Age Bracket, 2000-2010 (number): From Age Under 5 to Age 75 and Over
Figure 2-14: Population Projections for Selected U.S. Racial/Ethnic Populations, 2000-2020 (number): Non-Hispanic White, Non-Hispanic Black, Hispanic, Non-Hispanic Asian/Pacific Islander
Figure 2-15: Projected U.S. Retail Sales of Gum, Mints, and Breath Fresheners, 2002-2007 (dollars)
Figure 2-16: Projected U.S. Retail Sales by Product Category: Gum vs. Breath Fresheners/Mints, 2002-2007 (dollar)

III. The Marketers

Marketer and Brand Shares

Top Marketers and Brands
- Extra Sugarless Gum at Over $150 Million in IRI-Tracked Sales
- Wrigley Claims Over Half of Gum Category
- Kraft Claims One-Third of Breath Freshener/Mint Category
Consumer Advertising Expenditures
- Wrigley a $110 Million Plus Advertiser
- Adams and Kraft Follow in $60-$70 Million Range
- Other Top Advertisers
The Competitive Situation
- M&A Activity
- Wrigley in the Catbirdfs Seat
- New Products and Market Saturation
Marketing and New Product Trends
- Flavor Trends
- Novelty Products
- The Nutraceutical Scene
Figure 3-1: Top Marketers of Gum, Breath Fresheners, and Plain Mints by IRI-Tracked Share, 2002 (percent): 5 Marketers, Private Label, Others
Figure 3-2: Top Brands of Gum, Breath Fresheners, and Plain Mints by IRI-Tracked Share, 2002 (percent): 22 Brands, Private Label, Others
Figure 3-3: Selected Brand Lines of Gum, Breath Fresheners, and Plain Mints by IRI-Tracked Sales, 2002 (dollar): 29 Brand Lines
Figure 3-4: Top Marketers of Gum by IRI-Tracked Share, 2002 (percent): 3 Marketers, Private Label/Others
Figure 3-5: Top Marketers and Brands of Sugarless Gum by IRI-Tracked Share, 2002 (percent): 4 Marketers/15 Brands/Others
Figure 3-6: Top Marketers and Brands of Regular Gum by IRI-Tracked Share, 2002 (percent): 6 Marketers/40 Brands, Others
Figure 3-7: Top Marketers of Breath Fresheners and Plain Mints by IRI-Tracked Share, 2002 (percent): 6 Marketers, Private Label, Others
Figure 3-8: Top Marketers and Brands of Breath Fresheners by IRI-Tracked Share, 2002 (percent): 9 Marketers/14 Brands, Private Label, Others
Figure 3-9: Top Marketers and Brands of Plain Mints by IRI-Tracked Share, 2002 (percent): 8 Marketers/10 Brands, Private Label, Others
Figure 3-10: Selected Gum, Mint, and Breath Freshener Product Lines by 12-Month Increase in IRI- Tracked Sales, Second-Quarter 2002 (dollars): 19 Product Lines

IV. Marketer Profiles

Competitive Profile: Adams (Cadbury Schweppes Plc)

Company Overview
Running with Wrigley
Competitive Review
- Product Launches
- Advertising and Promotions
- Internet Operations

Competitive Profile: Ferrero U.S.A., Inc. (Ferrero SpA, Italy)

Company Overview
Product Line-Up
A Breath Mint Recipe for Success
Competitive Review
- New Products Intros, in Lime and Silver
- Advertising and Promotions
- Internet Operations

Competitive Profile: Hershey Foods Corp.

Company Overview
#1 U.S. Candy Marketer
Sharper Focus in Non-Chocolates
Removing Kinks in the System
Competitive Review
- Product Launches and Promotions
- Internet Operations

Competitive Profile: Kraft Foods

Corporate Overview
Building Big-Bang Brands
Product Line-Up
Competitive Review
- New Product Launches
- Advertising and Promotion
- Internet Operations

Competitive Profile: Wm. Wrigley Jr. Co./Amurol Confections

Company Overview
The Wrigley Product Lineup
- The Amurol Contingent
A New Attitude
Competitive Review
- New Product Launches
- Tinkering with the Tried and True
- Amurol Novelty Gums Banking on Extreme Flavors, Christmas Variants
- Extreme Flavors Also at Work in Sugarless Segment
- Advertising Strategies
- Internet Operations

V. The Consumer

Gum and Breath Mint Demographics

Note on Simmons Survey Data and Figures
Overview of Household Consumption
- 57% of Households Use Gum, 62% Use Breath Mints
- Preference Rates: Regular vs. Sugarless
- tic tac the Top Brand by Household Preference
Figure 5-1: Overview of Household Usage: Gum and Breath Mints, 2002 (% of U.S. households)
Figure 5-2: Top Gums and Breath Mints by Brands Most Often Used, 2002 (% of U.S. households)

Consumer Focus: Chewing and Bubble Gum

Overview of Household Consumption
- 12% of Households Use 3-4 Pieces Weekly
- Regular vs. Sugarless Profiles
Patterns and Variations for Mass-Market Brands
- Gender Patterns
- Age Patterns
- Adams Stronger Among Hispanic Consumers
- Trident Is Exception to Regional Pattern
- Educational, Occupational, and Household Income Patterns
- Patterns by Household Composition

Figure 5-3: Household Usage Rates for Chewing and Bubble Gum: Overall and by Type, Usage Level, and Brand, 2002 (% of U.S. Households)
Figure 5-4: Demographic Characteristics Favoring Heavy Use of Gum: 11 or More Pieces in Last 7 Days, 2002 (U.S. Households)
Figure 5-5: Demographic Characteristics Favoring Use of Regular Gum, 2002 (U.S. Households)
Figure 5-6: Demographic Characteristics Favoring Use of Sugarless Gum, 2002 (U.S. Households)
Figure 5-7: Household Usage Rates for Selected Gum Brands: By Gender, 2002 (% of U.S. Households)
Figure 5-8a: Household Usage Rates for Selected Gum Brands: By Age Bracket, 2002 (% of U.S. Households)
Figure 5-8b: Household Usage Rates for Selected Gum Brands: By Age Bracket, 2002 (% of U.S. Households)
Figure 5-9: Household Usage Rates for Selected Gum Brands: By Race/Ethnicity, 2002 (% of U.S. Households)
Figure 5-10: Top Gum Brands by Household Usage Rates: Black vs. Hispanic, 2002 (% of U.S. households)
Figure 5-11: Household Usage Rates for Selected Gum Brands: By Region, 2002 (% of U.S. Households)
Figure 5-12: Household Usage Rates for Selected Gum Brands: By Educational Attainment, 2002 (% of U.S. Households)
Figure 5-13: Household Usage Rates for Selected Gum Brands: By Occupation, 2002 (% of U.S. Households)
Figure 5-14a: Household Usage Rates for Selected Gum Brands: By Household Income Bracket, 2002 (% of U.S. Households)
Figure 5-14b: Household Usage Rates for Selected Gum Brands: By Household Income Bracket, 2002 (% of U.S. Households)
Figure 5-15: Household Usage Rates for Selected Gum Brands: By Household Size, 2002 (% of U.S. Households)
Figure 5-16: Household Usage Rates for Selected Gum Brands: By Age of Children in Household, 2002 (% of U.S. Households)

Consumer Focus: Breath Mints

Overview of Household Consumption
- 20% of Households Use One Roll Monthly
- Regular vs. Sugarless Profiles
Patterns and Variations for Mass-Market Brands
- Gender Patterns
- Age Patterns
- 27% Rate for LifeSavers Among African-Americans
- 21% Rate for Altoids in the West
- Educational, Occupational, and Household Income Patterns
- Patterns by Household Composition
Figure 5-17: Household Usage Rates for Breath Mints: Overall and by Type, Usage Level, and Brand, 2002 (% of U.S. Households)
Figure 5-18: Demographic Characteristics Favoring Heavy Use of Breath Mints: 8-13 Rolls in Last 30 Days, 2002 (U.S. Households)
Figure 5-19: Demographic Characteristics Favoring Use of Regular Breath Mints, 2002 (U.S. Households)
Figure 5-20: Demographic Characteristics Favoring Use of Sugarless Breath Mints, 2002 (U.S. Households)
Figure 5-21: Household Usage Rates for Selected Breath Mint Brands: By Gender, 2002 (% of U.S. Households)
Figure 5-22a: Household Usage Rates for Selected Breath Mint Brands: By Age Bracket, 2002 (% of U.S. Households)
Figure 5-22b: Household Usage Rates for Selected Breath Mint Brands: By Age Bracket, 2002 (% of U.S. Households)
Figure 5-23: Household Usage Rates for Selected Breath Mint Brands: By Race/Ethnicity, 2002 (% of U.S. Households)
Figure 5-24: Household Usage Rates for Selected Breath Mint Brands: By Region, 2002 (% of U.S. Households)
Figure 5-25: Household Usage Rates for Selected Breath Mint Brands: By Educational Attainment, 2002 (% of U.S. Households)
Figure 5-26: Household Usage Rates for Selected Breath Mint Brands: By Occupation, 2002 (% of U.S. Households)
Figure 5-27a: Household Usage Rates for Selected Breath Mint Brands: By Household Income Bracket, 2002 (% of U.S. Households)
Figure 5-27b: Household Usage Rates for Selected Breath Mint Brands: By Household Income Bracket, 2002 (% of U.S. Households)
Figure 5-28: Household Usage Rates for Selected Breath Mint Brands: By Household Size, 2002 (% of U.S. Households)
Figure 5-29: Household Usage Rates for Selected Breath Mint Brands: By Age of Children in Household, 2002 (% of U.S. Households)

VI. Looking Ahead

Trends and Opportunities

Growth Strategies
Border Crossings and Brand Extensions
Flavor Trends in Focus
Sales Growth in Novelty Products
Sales Growth in Hispanic Market

Appendix I: Examples Of Consumer Advertising And Promotions

Appendix II: Addresses Of Selected Marketers