Issue #13: The unlucky one
Issue 13! some cultures think of 13 as an unlucky number. I remember taking a yearly vacation with my family to Miami and we used to stay at this building in Boca Raton near the beach. It always amazed me that the building didn't have a 13th floor as to avoid "Bad luck". Think of all the hassles that the architects and engineers had to go through to comply with the superstition.
Luckily, there is not much superstition when it comes to confectioners. It is just a combination of confectionery science and good business practices, the rest is simply chance. So I'll take the chance to bring the best weekly news from the confectionery industry so enjoy these fresh new takes and articles from the confectionery world!
Sweet Spotlights ??
Flavor Inspiration
From bold and unexpected combinations to nostalgic flavors, the confectionery industry is buzzing with creativity and innovation, introducing new trends of flavors across all of their new upcoming products. Customers have demanded for a wider array of flavors and exotic patterns of textures and feelings to their palates. Therefore, let's explore the 5 top flavor trends for 2024:
1. Swicy Sensations: Sweet Meets Spicy In a delightful twist, “swicy” flavors have taken center stage. Imagine the scintillating fusion of sweetness and spiciness—a trend that surprises and delights consumers. Brands like Dolfin, Bake, and Vosque-Haut Chocolat have embraced this concept. Even popcorn brands like Bad Monkey have joined the party, creating a mix of kettle corn, caramel, and buffalo wing flavors.
2.seek flavors that evoke memories. While matcha tea from Japan has long inspired confectionery, spices from diverse cultures are now making their mark. Whether it’s the fizzy candies of childhood or beloved regional treats, these confections create a sense of connection.
3. Forever Floral: Blooms in Confectionery Floral flavors continue to enchant consumers with their elegance. Marzipan, custard, and sherbet infused with delicate floral notes take center stage. Whether it’s rose-infused truffles or lavender-flavored macarons, these confections offer a multisensory journey.
4. Global Inspirations: Spices and Exotic Flavors Consumers crave global adventures through their taste buds. Spices like cardamom, saffron, and turmeric find their way into confectionery, adding depth and richness.
5. Functional Delights: Health-Conscious Choices As health-consciousness grows, functional flavors gain prominence. Ingredients like matcha (rich in antioxidants) and probiotics (for gut health) find their way into confections. Brands are exploring guilt-free indulgence, offering dark chocolate with added superfoods or sugar-free options to cater to diverse dietary preferences.
Breaking the Habit
Celsius Holdings, a company that has carved out a significant niche in the energy drink market, traditionally dominated by giants like Monster and Red Bull, has made a huge statement in a market that seemed saturated with similar competition. John Fieldly expanded the view of what this company could be when he joined Celsius as CFO in 2012, the company was relatively unknown, with a market capitalization of just $5 million. Over the years, Celsius has grown exponentially, with annual revenue now exceeding $1.3 billion and a market share of about 11% in the $19 billion energy drink market.
Celsius’ success is largely attributed to its focus on health and fitness. Unlike many traditional energy drinks, Celsius offers products that are sugar-free and calorie-free, with ingredients that claim to provide workout and energy benefits without the crash. This health-conscious approach has resonated with consumers, particularly those who are fitness enthusiasts. The company has also differentiated itself with unique flavor combinations like Green Apple Cherry and Kiwi Guava, which have helped it stand out in a crowded market.
The were several strategic decisions and a bit of luck that have contributed to Celsius’ growth. One of the key strategies has been the company’s distribution partnerships. Celsius products are now widely available in various locations, including gyms, Dunkin’ Donuts, Walmart, and 7-Eleven. This widespread availability has significantly boosted the brand’s visibility and accessibility.
Another critical factor in Celsius’ success has been its marketing strategy. The company has leveraged social media and influencer partnerships to build a strong brand presence. This approach has helped Celsius connect with a younger, health-conscious demographic that is looking for alternatives to traditional energy drinks.
Wall Street values Celsius at $9 billion, a testament to the company’s rapid rise and strong market position. This valuation reflects investor confidence in Celsius’ ability to continue growing and capturing market share from established players like Monster and Red Bull.
Celsius Holdings has achieved remarkable growth by focusing on health and fitness, offering unique products, and making strategic distribution and marketing decisions. The company’s success story is a testament to the power of innovation and strategic planning in a competitive market.
Cocoa Culture ??
Cocoa Price as of 02/09/2024
Relatively stable prices since last week's peaks. There have been a lot of positive talks in terms of stability. Income accelerator programs have also empowered and provided confidence for farmers to pursue better harvests for the long term. We will have to check the sociopolitical panorama in the short term to revise how that affects the volatility of prices.
Hershey's Turn
Last week we covered Nestle's income accelerator program that represents a CSR approach intending to help cocoa farmers by providing more immediate benefits from their crop raising. The help can come in the form of straight cash and paychecks but it covers it more sustainably by also subsidizing different development aspects like education as well as nutrition. This week we cover Hershey's accelerator program that came just after Nestle's in an attempt to rival (in a friendly way) the Swiss company's approach to giving back to the cocoa farmers in Ivory Coast.
Hershey’s Income Accelerator Program (HIAP) was launched in April 2023 in C?te d’Ivoire. The program is designed to support cocoa farmers by providing supplemental income and promoting sustainable agricultural practices. Hershey has committed $40 million to this initiative, aiming to assist 20,000 households over a five-year period.
In its first year, the program successfully onboarded 1,850 farmers, with 1,426 of them receiving their first cash transfers directly to their mobile money accounts. These cash transfers are a crucial part of the program, intended to provide immediate financial relief and support for the farmers.
The HIAP focuses on several key areas to help reduce poverty among cocoa farming communities. These areas include financial literacy, joint decision-making within households, improving farm productivity, and providing access to affordable finance. By addressing these areas, the program aims to create a more sustainable and prosperous future for cocoa farmers.
One of the significant aspects of the program is its collaboration with various partners. Hershey is working closely with C?te d’Ivoire’s national governing body for cocoa, the Conseil du Café-Cacao, as well as international organizations like CARE International. These partnerships are essential for the program’s success, as they bring in expertise and resources to support the farmers effectively.
In 2024, the program plans to provide two additional cash transfers to the farmers. These transfers are intended to help cover education costs for the farmers’ children and to encourage the adoption of sustainable farming techniques. The ultimate goal of these cash transfers is to increase the income of cocoa farming households by 20%.
By providing financial support and promoting sustainable practices, the program is helping to improve the livelihoods of cocoa farmers in C?te d’Ivoire. The initiative is also contributing to the broader goal of creating a more sustainable and ethical cocoa supply chain.
Controlling the heat
One of the most challenging aspects of distributing chocolate in tropical countries like mine (Venezuela) is heat control and supplying enough cold temperatures to ensure the successful delivery of our products. In fact, heat resistance is a major component of the cost structure of chocolate distribution, as supplying a controlled temperature during the transportation is extremely expensive, especially when you are exporting to another country and you want your chocolate to remain in mint condition. However, we are getting great news from the scientific community which they have made a great breakthrough in the study of heat resistance
This new study on heat resistance in chocolate was conducted by researchers from the Department of Food Science at Pennsylvania State University in collaboration with Hershey’s Technical Centre. The study, partially funded by Hershey, was published in Food Science and Nutrition on July 9, 2024. It specifically focuses on white chocolate and aims to develop methods to enhance its heat resistance.
Chocolate’s melting point, typically between 34-36°C, poses a significant challenge for manufacturers, especially in tropical regions where temperatures often exceed these limits. The quality of chocolate can deteriorate during transportation and storage, leading to a loss of shape and texture. This issue is particularly pressing for companies like Hershey, which distribute their products globally, including in hot and humid climates.
The primary objective of the study was to explore curing conditions that could improve the heat resistance of white chocolate. The researchers aimed to create a product that could withstand temperatures between 33°C and 55°C without losing its structural integrity. The white chocolate used in the study contained 30% whole milk powder, 44% sucrose, and 26% cocoa butter.
The study found that specific curing conditions could significantly enhance the heat resistance of white chocolate. By exposing the chocolate to high humidity and elevated temperatures, the researchers were able to create a product that maintained its shape and texture even at higher temperatures. This finding is crucial for manufacturers looking to improve the shelf life and quality of their products in hot climates.
The results of this study have significant implications for the confectionery industry. Developing heat-resistant chocolate can help manufacturers reduce waste and improve the quality of their products in tropical regions.
领英推荐
While the study focused on white chocolate, the researchers noted that further research is needed to explore the heat resistance of other types of chocolate, such as milk and dark chocolate. Different types of chocolate have varying compositions, and the curing conditions that work for white chocolate may not be applicable to other varieties.
The study conducted by Pennsylvania State University and Hershey’s Technical Centre represents a significant step forward in the quest to develop heat-resistant chocolate. By identifying specific curing conditions that enhance the heat resistance of white chocolate, the researchers have provided valuable insights that can help manufacturers improve the quality and shelf life of their products in tropical climates. This research not only benefits companies like Hershey but also has broader implications for the global confectionery industry.
Flavor Fusion ??
Old Snicker new nut
Mars is delivering an exciting innovation in a product that we all know so well as Snickers. Traditionally, Snickers has always been about peanuts with some variations along the way like times they try other inclusions like almonds. this time, Mars is introducing a new Snicker variation with pecan inclusions.
The new inclusion will expand on greater textures and flavors thanks to the pecan's sweet-savory properties and its more crispy texture. The candy bar will be available soon in chains like Walmart, Dollar General, and C-Store to review the popularity of the confection before rolling it out to other chains and amplifying its distribution network.
A volcano has erupted
We get even more Hershey's in this edition! It ain't our fault they are innovating so much and participating in the market. Reese's still keeps being the innovation catalyst by introducing yet again another variation of their peanut butter cups line.
This time, the peanut butter cups are dwelling into the dessert line, and have introduced a chocolate lava big cup inspired by the traditional hot lava chocolate cake dessert that we all love. The cup will have a gooey chocolate filling to emulate the dessert's filling with the added flavor texture of the famous peanut butter filling and milk chocolate outside.
Go all out on innovation
Some confections are so traditional that we usually don't think much about whether they have innovated or not. We assume they will stick to their usual presentations and flavor. But sometimes we can get surprised.
Such is the case with the classical Wherther's original candies that have decided to launch a new line of mixed flavors with their original one such as:
-Maple soft Caramels
-Caramel Apple soft Caramels
-Pumpkin Spice soft Caramels
-Cinnamon Creme soft Caramels
-Caramel Apple filled hard candies
The line is set to celebrate seasonal fall flavors to spice up the Werthers caramel lines and offer distinct and new flavors for their candies.
Sugar Rush (Facts and Stories about your favorite snacks and candies)??
The Dispenser
Few companies can create a product that revolutionizes and deeply impacts our pop culture. Some may call it a fad, but it still remains an integral part of the history of confections and the joy and happiness it brought to so many people. Such is the impact of pop culture that they have become a cult collectible among many confectionery collectors worldwide. They also revolutionized the concept of toy candies. They were the first ones to truly exploit the "Razor and Blade" business model to capitalize on a complementary product (the candy) in the confectionery industry. Today we talk about the Pez Candy dispensers.
PEZ Candy was invented in Vienna, Austria, by Eduard Haas III in 1927. Originally, it was created as a peppermint-flavored candy intended to help people quit smoking. The name “PEZ” comes from the German word for peppermint, “PfeffErminZ,” taking the P from the first letter, E from the middle, and Z from the last letter.
In its early days, PEZ was sold in small tins, and the candies were round, known as “PEZ drops.” However, the shape was soon changed to the familiar brick shape that we know today. The first PEZ dispensers, which were designed to look like cigarette lighters, were introduced in 1949 at the Vienna Trade Fair. These dispensers were initially marketed to adults as a way to dispense breath mints.
PEZ made its way to the United States in 1952, where it quickly gained popularity. The company established its U.S. operations in New York City, and all goods were initially imported from Europe. In 1955, PEZ began to target children by adding character heads to the dispensers. The first character dispensers included Santa Claus, Popeye, Mickey Mouse, and Donald Duck.
Throughout the 1960s and 1970s, PEZ continued to innovate and expand its product line. The company introduced new flavors and designs, including the PEZ Pals series, which featured a detective character dressed up in various disguises. In 1973, PEZ began manufacturing candy in the United States, building a facility in Orange, Connecticut.
The 1980s and 1990s saw PEZ become a cultural icon, with dispensers featuring a wide range of characters from popular culture, including superheroes, cartoon characters, and movie icons. Collecting PEZ dispensers became a popular hobby, and the company continued to release new and limited-edition designs.
PEZ has also expanded its flavor offerings over the years, with a wide range of options including grape, cherry, orange, lemon, strawberry, raspberry, cola, and many more. The company continues to innovate with new dispenser designs and flavors, keeping the brand fresh and exciting for new generations of fans.
Overall, the history of PEZ Candy is a fascinating journey from a simple peppermint candy to a global cultural phenomenon. Its unique dispensers and a wide variety of flavors have made it a favorite among candy lovers and collectors alike.
That's it! Great week, great news! We finally overcame number 13th without a speck of bad luck. We officially enter the fall season and Q4 with a lot of interesting moves in the market that will define how confectionery will set the pace for 2025.
Over the next few weeks, we will see some interesting strategic moves and press releases over what the major players will intend to do for 2025 and such; it will set the expectations for the new year and, of course, this newsletter!