Issue #17: Spices from the New World
Good morning everyone, Issue #17 is here with a lot of interesting news across the confectionery world. Fall is in full force and Halloween is upon us. This seems like a silly and unimportant holiday in terms of historic value but it is certainly one of the most important dates for confectionery, as it is estimated that it is the date where the most amount of candy is consumed over the year given its inherent importance on such traditions such as trick or treat.
Therefore, we must appreciate the work the confectionery do all year long to prepare for this special date, so we will certainly have some cool news surrounding Halloween and how confectioners are anticipating the big day.
Sweet Spotlights ??
Cash fish
Campbell Soup Company is experiencing a significant shift, placing a strategic bet on its snacking portfolio. The company's recent financial results highlight the success of this strategy, with Goldfish Crackers emerging as a clear leader in driving "outsized growth."
Goldfish, the iconic fish-shaped cracker synonymous with childhood, has become a major growth engine for Campbell's. The brand has achieved nearly $1 billion in annual sales, demonstrating its enduring appeal and market dominance. Notably, over the past five years, Goldfish sales have grown by an impressive 50%.
Campbell's success with Goldfish isn't solely based on brand recognition. The company is actively driving growth through a focus on innovation. New product launches have expanded the Goldfish offerings beyond the traditional cheddar flavor. Consumers can now enjoy Goldfish in a variety of textures (like crisps) and exciting flavors (like spicy and seasonal options).
While Goldfish takes center stage, Campbell's focus on snacks isn't limited to this single brand. The company is implementing similar growth strategies across its entire snacking portfolio. This includes brands like Pepperidge Farm and Cape Cod, which are also experiencing positive sales figures.
Campbell's success isn't merely a product of innovative offerings. The company is also leveraging strategic marketing campaigns to reach specific consumer demographics. Recognizing that a significant portion of Goldfish consumption has shifted to older demographics who enjoyed the product in their childhood, Campbell's marketing efforts are targeting these groups.
Campbell Soup's focus on snacks signifies a long-term commitment to this growing market segment. The success of Goldfish and the positive results across other snacking brands suggest that this strategy is paying off. By remaining innovative, adapting to consumer trends, and effectively marketing its products, Campbell's is well-positioned to maintain its leadership role in the snacking industry.
Goldfish is also set to make a historic entrance in Mexico after a few successful double-digit growth years in Canada. This move will be the first core competitive test of the Goldfish brand as it will have to face a new sea of consumers and competitors across a whole other culture.
Campbell bets big on snacks with Goldfish, innovations across brands driving ‘outsized growth’ (foodnavigator-usa.com)
Big Cookies ahoy!
Modelez Chips Ahoy! has expanded its offerings with the introduction of jumbo-sized cookies. These oversized treats are designed to satisfy cravings for a larger portion of the iconic chocolate chip cookie. This move aligns with the growing trend of indulgence and consumer desire for more substantial snacks.
Chips Ahoy! is responding to current consumer trends and preferences. The focus on larger portion sizes and trendy flavors demonstrates the industry's commitment to providing consumers with products that meet their evolving needs and desires. A big trend for this is the idea of snacking and substituting meals as a whole. The new generations are looking for simpler, faster, and more convenient ways to satisfy their hunger or replace their meals as a whole.
These cookies like chocolate chip cookies are a filling option, and with Chips Ahoy controlling 53% of this particular market, they are not slowing down in terms of making up new innovations in terms of size and flavors.
The new cookie will have 4 times the amount of chocolate chips and will come in 3 flavors: the original chocolate chip, Chocolatey brownie, and Chocolatey caramel, which will offer a variety of options for consumers to indulge in.
Cocoa Culture ??
Cocoa Price as of 17/10/2024
Cocoa futures traded around $7,900 per tonne, holding close to their highest since late September, amid persistent worries over global supply. Intense rainfall in major cocoa-producing areas of West Africa has led to flooding, preventing farmers from accessing their fields and delaying the harvest. These downpours have not only disrupted the harvest but also complicated the drying process, reducing quality, and delaying the transport of beans to ports. Meanwhile, dealers noted growing concerns that Ghana, the world’s second-largest cocoa producer, is likely to face a poor crop this season due to major challenges, including crop disease and illegal mining. So more worries around the cocoa trade supply across the next weeks... so brace yourselves.
Hershey's expanding Penn operations
The news from Pennsylvania is sweet indeed! Hershey Co., the iconic chocolate manufacturer, is nearing the completion of its latest candy production facility in Dauphin County. This new plant signifies a significant expansion for the company and is poised to contribute to the region's economy while satisfying the global demand for Hershey's beloved treats.
Hershey's has been a cornerstone of Pennsylvania for over 130 years, growing from a single factory to a global confectionery giant. The new Dauphin County plant represents a strategic move, offering increased production capacity, job creation, and potential for innovation.
The plant's benefits extend beyond Hershey's. It promises to boost Dauphin County's economy, create jobs, and foster community development. Hershey's reputation for philanthropic initiatives suggests potential positive impacts on local projects and organizations.
While the new plant offers exciting opportunities, it's important to consider factors like environmental impact and potential effects on existing facilities. Nonetheless, the future looks bright for Hershey's and Dauphin County. The plant's opening signifies continued growth, innovation, and a commitment to satisfying the global demand for Hershey's sweet treats.
Spooky Prices
This Halloween season, the ghosts and goblins of rising costs may be the scariest part for many consumers. A recent surge in confectionery prices threatens to put a damper on trick-or-treating traditions and candy bowl generosity.
The culprit behind the candy price increase is a confluence of global issues impacting the industry. Sugar prices have skyrocketed due to extreme weather events in key growing regions like India and Thailand. While the U.S. relies heavily on domestic sugar production, the global price rise still affects the overall cost of candy manufacturing.
Another significant factor is the rising cost of cocoa (as we have covered countless times before), a key ingredient in many popular Halloween treats. Supply chain disruptions and unfavorable weather conditions in major cocoa-producing countries like C?te d'Ivoire and Ghana have driven cocoa prices to new highs. These rising costs are inevitably passed on to consumers in the form of higher candy prices.
The impact of these factors isn't solely theoretical. According to the article, industry analysts predict a potential price increase of up to 13% for Halloween candy compared to last year. This translates to a significant jump in overall spending for consumers who stock up on treats for trick-or-treaters or family gatherings.
Despite the price hike, Halloween remains a major holiday for the confectionery industry. National Retail Federation data indicates that consumer spending on Halloween candy is projected to reach $3.6 billion this year, reflecting continued demand for these seasonal delights.
So, how will consumers react to these inflated prices? Some may opt for smaller quantities of their favorite candies, while others may choose budget-friendly alternatives or even forego purchasing candy altogether. It's also possible that consumers will prioritize purchasing classic and well-known brands over newer or premium options.
This situation presents both challenges and opportunities for candy manufacturers. Mitigating the impact on consumers requires creativity and strategic adjustments. While some manufacturers may resort to reducing product size to maintain price points, others may explore alternative ingredients or sourcing strategies to manage costs.
Looking beyond the immediate price hike, the article posits that this situation might lead to long-term changes within the Halloween candy market. Manufacturers may prioritize establishing more resilient supply chains to reduce reliance on volatile global markets. Additionally, consumers may become more cost-conscious, seeking out value-oriented options in the future.
Despite the challenges, Halloween remains a time for celebration and indulgence. While the price hike may put a strain on wallets, it's unlikely to completely extinguish the spirit of the holiday. Consumers and manufacturers alike will likely adapt and find ways to keep the tradition of Halloween candy alive.
Flavor Fusion ??
Football is for nerds
With football season way on its course, Ferrara has released limited edition Nerds candy to celebrate the occasion. It's combined with gummies By releasing the new Nerds gummy clusters, Nerds has seen a rise in popularity. Along with the popular football season, they have released their "Blitz" version with a change of packaging reflecting the nerd's caricatures with football outfits. The flavors will come in Grape Strawberry Blitz and Berry Punch Rush.
This is an amazing output by Ferrara to keep innovating on the Nerds forefront, which we had featured here before as a legacy candy in American history. The new version will also allow fans to enter sweepstakes contests all the way through March 2025 which will also serve as a boost for sales over the course of the football season.
Bar Pringles
Pringles is back with new limited-edition flavors that imitate new and unique snacking experiences. They are kind of people pleasers with 2 iconic flavors: Texas BBQ Brisket and Cheesy Jalapeno Poppers, which are bold new flavor profiles for the recently acquired Kellanova brand. According to the brand, these new flavors will have the goal to accentuate and test new savory options as they accelerate their innovation pipeline for their products
Pringles has a bold and innovative schedule ahead of 2025 as they test out new experiential savory flavors to gather data and consumer behavior to develop more stable flavors that will appeal to most people.
Pringles introduces Texas BBQ Brisket, Jalape?o Popper | Snack Food & Wholesale Bakery (snackandbakery.com)
Hot and Cheesy
General Mills is not getting behind on the snacking frontier, as it is also making some hot introductions in its portfolio. The company, mostly known for its cereal, has other ventures that amplify its portfolio to venture into different aisles of convenience stores and supermarkets. One of its biggest products in this differential equation would be the famous Bugles, the tornado or Pyramid (depending on how you look at it) shaped tortilla corn chip.
With the rise of more adventurous palates, Bugle is partnering up with Tabasco to introduce a hot and cheesy version of the original snack, which will add a spinoff to the already savory snack. The item will be exclusively sold in 7/11 chain stores at first and then expand to other retailers as the product rotates.
General Mills takes on tailgating with snack releases | Snack Food & Wholesale Bakery (snackandbakery.com)
Sugar Rush (Facts and Stories about your favorite snacks and candies)??
Slugger
There are iconic candy bars that can be spotted worldwide, but not all candy bars are global; that does not mean that they are not iconic or hold some inherent importance within the confectionery world. A good example for this would be the Baby Ruth candy bar, which Chicago's own Ferrara currently distributes candy company.
The Baby Ruth candy bar has a rich history dating back to the early 20th century. Its name, origin, and flavor profile have been the subject of much debate and speculation over the years. While many believe it is named after Babe Ruth, the legendary baseball player, there is no concrete evidence to support this claim. Some historians suggest that the name is a tribute to Ruth St. Denis, a famous dancer of the era. Others believe it may simply be a catchy and memorable name chosen for its alliteration.
Despite the uncertainty surrounding its name, the Baby Ruth candy bar has captured the hearts and taste buds of millions. The classic version consists of a nougat center coated in caramel and peanuts, then dipped in rich milk chocolate. This combination of textures and flavors has made it a popular choice for candy lovers of all ages.
The Baby Ruth candy bar was introduced in 1922 by Curtiss Candy Company. It quickly gained popularity and became a staple in American candy shops and vending machines. Over the years, the candy bar has undergone various changes and adaptations. Different flavors and variations have been introduced, such as the peanut butter Baby Ruth and the Baby Ruth S'mores bar.
The Baby Ruth candy bar has become a cultural icon, appearing in movies, television shows, and popular songs. It has been featured in countless advertisements and promotions, solidifying its place in the hearts of consumers.
The enduring appeal of the Baby Ruth candy bar can be attributed to its unique combination of flavors and textures. The nougat center provides a chewy texture, while the caramel adds a sweet and gooey element. The peanuts provide a satisfying crunch, and the milk chocolate coating offers a rich and creamy finish. This combination of elements creates a truly satisfying and enjoyable candy experience.
The Baby Ruth candy bar is a classic American confectionary with a rich history and enduring appeal. While the origin of its name remains a mystery, its delicious flavor profile and cultural significance have ensured its continued popularity for over a century. Whether you're a nostalgic fan or discovering it for the first time, the Baby Ruth candy bar is sure to satisfy your sweet tooth.
There it goes, October is almost done. I am actually excited for Halloween, I got this cool poncho I got from my travels to Chile so I will partake in some sort of Halloween party dressed up as a Western Gunslinger as I have been watching one too many westerns over the last few weeks.
But I will certainly come back soon with more amazing news from the confectionery world and the lastest trends surrounding the industry!