Published March/April 2012 in Candy & Snack TODAY
Gummies prosper in peg candy sets, but retailers have more flexibility with count goods, theater boxes and standup bags, while flavor updates and product launches are driving trial. Associate Editor Kelli Fontenot reports.
Gummi sales are increasing, sources report, and updated pack types are taking products beyond peg bags to give retailers more flexibility in terms of merchandising. Filled varieties and interesting flavors in addition to classic bears and worms are driving growth, while industry sources agree new items with unique shapes and a point of difference promote gummies as a key player in non-chocolate candy.
“Gummies are one of the fastest growing non-chocolate segments, and if you go into your typical retailer, they’re devoting many facings to the segment,” reveals Marty Cline, national sales and administrative manager for Mederer U.S.A., Inc. New products and a variety of pack options are compelling growth in the sector, Cline adds.
Supporting this, John Leonardo, senior brand manager, Farley’s & Sathers Candy Co., Inc., cites strong sales growth as a factor in this merchandising shift. Sales of gummies were up 12 percent...
for the four weeks ending December 25, according to Farley’s & Sathers’ SymphonyIRI Group, Inc. data, and year-on-year sales reached about $625 million in 2011, Leonardo says.
Product launches including more exotic varieties and liquid-filled, dual-flavor pieces have been driving trial, according to Haribo of America, Inc. President Christian Jegen. Capitalizing on this, Haribo introduced Fruity- Frutti, filled gummies in mango, raspberry and orange. Jegen notes the company has seen double-digit sales growth for the past few years.
“New products help grow the category,” he says. “A filled gummi might win over a new consumer who has never eaten a standard Gold- Bear or a Happy Cola.”
Mederer is seeing significant growth in the U.S. market, Cline says. He tells Candy & Snack TODAY: “The company had record sales last year, growing more than 30 percent.” The company relaunched its peg line in 2011, featuring a range of shapes including jalapeños, watermelon pieces and Gummi Bear-Rings.
“If your typical consumer sees a gummi product that’s unique and very high quality they’re going to say ‘Wow,’ come over and take a look at it, and buy it,” he explains.
Traditional shapes continue to pull in sales — classic assorted-flavor Gold-Bears, Happy Cola, Raspberries and Peaches are still among Haribo’s top sellers, Jegen says — but within the past year, suppliers have also been updating the traditional bear concept.
For example, Vidal Candies USA introduced tri-color Sour Triple Bears, which are layered sour, sugar-sanded gummies, according to Mitchell Bernstein, national sales director. He says: “You’re always going to have people looking for something different.”
Trolli Big Bold Bears from Farley’s & Sathers are about four times the size of a regular gummi bear and offer play value, according to Leonardo. “We also added flavors that aren’t typically found in gummies, such as a blue raspberry and green apple,” he notes.
Filled gummies are another growth area, according to Mike Cavalier, vice-president of sales and marketing for Imaginings 3, Inc. “You get an extra burst of flavor or you get a different flavor inside,” Cavalier says.
Wm. Wrigley Jr. Co.’s Jennifer Jackson Luth, marketing communications, says: “Within the industry, gummies continue to be a popular form that encourages play value. As a result, we are seeing new shapes, new textures such as chewy and soft in one, and new experiences such as dual-flavor, sweet/sour, and liquidfilled.”
Unexpected combinations are also popular, she adds, explaining Starburst GummiBursts Flavor Duos offer one flavor on the outside and a different liquid flavor on the inside.
“Life Savers Gummies Collisions were launched in September 2011 and are the first Life Savers Gummies variety to bring consumers two flavors together in one bite,” she adds.
Similarly, Life Savers Gummies Sweet Strings ‘N Sour Rings also feature fruit-flavor fusions.
Exploring New Pack Formats
Gummi sales are increasing, sources report, and updated pack types are taking products beyond peg bags to give retailers more flexibility in terms of merchandising. Filled varieties and interesting flavors in addition to classic bears and worms are driving growth, while industry sources agree new items with unique shapes and a point of difference promote gummies as a key player in non-chocolate candy.
“Gummies are one of the fastest growing non-chocolate segments, and if you go into your typical retailer, they’re devoting many facings to the segment,” reveals Marty Cline, national sales and administrative manager for Mederer U.S.A., Inc. New products and a variety of pack options are compelling growth in the sector, Cline adds.
Supporting this, John Leonardo, senior brand manager, Farley’s & Sathers Candy Co., Inc., cites strong sales growth as a factor in this merchandising shift. Sales of gummies were up 12 percent...
for the four weeks ending December 25, according to Farley’s & Sathers’ SymphonyIRI Group, Inc. data, and year-on-year sales reached about $625 million in 2011, Leonardo says.
Product launches including more exotic varieties and liquid-filled, dual-flavor pieces have been driving trial, according to Haribo of America, Inc. President Christian Jegen. Capitalizing on this, Haribo introduced Fruity- Frutti, filled gummies in mango, raspberry and orange. Jegen notes the company has seen double-digit sales growth for the past few years.
“New products help grow the category,” he says. “A filled gummi might win over a new consumer who has never eaten a standard Gold- Bear or a Happy Cola.”
Mederer is seeing significant growth in the U.S. market, Cline says. He tells Candy & Snack TODAY: “The company had record sales last year, growing more than 30 percent.” The company relaunched its peg line in 2011, featuring a range of shapes including jalapeños, watermelon pieces and Gummi Bear-Rings.
“If your typical consumer sees a gummi product that’s unique and very high quality they’re going to say ‘Wow,’ come over and take a look at it, and buy it,” he explains.
Traditional shapes continue to pull in sales — classic assorted-flavor Gold-Bears, Happy Cola, Raspberries and Peaches are still among Haribo’s top sellers, Jegen says — but within the past year, suppliers have also been updating the traditional bear concept.
For example, Vidal Candies USA introduced tri-color Sour Triple Bears, which are layered sour, sugar-sanded gummies, according to Mitchell Bernstein, national sales director. He says: “You’re always going to have people looking for something different.”
Trolli Big Bold Bears from Farley’s & Sathers are about four times the size of a regular gummi bear and offer play value, according to Leonardo. “We also added flavors that aren’t typically found in gummies, such as a blue raspberry and green apple,” he notes.
Filled gummies are another growth area, according to Mike Cavalier, vice-president of sales and marketing for Imaginings 3, Inc. “You get an extra burst of flavor or you get a different flavor inside,” Cavalier says.
Wm. Wrigley Jr. Co.’s Jennifer Jackson Luth, marketing communications, says: “Within the industry, gummies continue to be a popular form that encourages play value. As a result, we are seeing new shapes, new textures such as chewy and soft in one, and new experiences such as dual-flavor, sweet/sour, and liquidfilled.”
Unexpected combinations are also popular, she adds, explaining Starburst GummiBursts Flavor Duos offer one flavor on the outside and a different liquid flavor on the inside.
“Life Savers Gummies Collisions were launched in September 2011 and are the first Life Savers Gummies variety to bring consumers two flavors together in one bite,” she adds.
Similarly, Life Savers Gummies Sweet Strings ‘N Sour Rings also feature fruit-flavor fusions.
Exploring New Pack Formats
Sharing sizes and count goods alike are also expanding this sector’s appeal, though the majority of sales continue to come from the peg format, sources agree.
“Pegs bags dominate, hands down,” says Andrew Paulson, brand manager, Ferrara Pan Candy Co., Inc. He says they can be sold on clip strips and in power panels, endcaps, and shippers in high foot traffic secondary locations in addition to the everyday candy section.
However, there are other options. Haribo’s Jegen points to laydown bags and tubs, as well as single-serve packs priced to fit into candy bar sets at c-stores.
Jelly Belly Candy Co. offers packs specifically intended to appeal to adults, according to John Pola, vice-president of specialty sales, who notes gummi bears in grab-and-go, tie-top, and new standup gift bags are debuting this fall.
“We want adult consumers to be comfortable finding the product they want without having to go to the novelty set, so the bags will be offered at high-end department stores and merchandised as more of a gift item,” Pola says.
Pack types and sizes continue to be a key decision factor when people buy gummies, Jackson Luth confirms.
“We know gummi consumers enjoy the single pack size, as well as the sharability of some of our larger pack offerings like theater boxes and peg bags,” she says, adding: “For some customers, it’s more convenient to purchase larger packs and be able to have candy on hand at home, in the office, or anywhere in between.”
Recognizing this trend, in December 2011, Wrigley upped the pack size of its Life Savers Gummies brand, replacing two-ounce pouches with 4.2-ounce Share Size packs of Collisions, a five-flavor assortment, and Mix O Reds Sours.
Also capitalizing on the popularity of sharing, YummyEarth, Inc. recently debuted reclosable four-ounce bags of organic gummi bears and sour worms, according to Rob Wunder, co-founder. “Moms tell us they love being able to hand out a few to the kids and seal up the bag for later,” he says.
Targeting the sharing segment, standup boxes of holly-berry shaped gummies from Imaginings 3 will debut for Christmas 2012 and feature Mickey Mouse graphics, according to Cavalier, who notes the license has broad appeal.
In May, The Promotion In Motion Cos., Inc. will launch reclosable, peggable standup bags holding between eight and 10 ounces of gummies, according to Josh Shapiro, vicepresident of marketing. With a SRP range of $1.99 to $2.99, the bags capitalize on the sharing trend, he says, noting: “It’s a very relevant, convenient pack type.”
The segment is also expanding its availability with count good packs, Leonardo says. “Gummies are getting away from just the peg bag section and into more parts of the stores,” he notes. Two-ounce bags of Trolli Sour Brite Crawlers are new and meet the SRP range of 99 cents to $1.19, he says. “We introduced that to make the product more broadly available to consumers; by not having the bestselling gummi product in the market available in that pack format you’re missing out on sales,” he explains.
Updating packaging, Mederer is introducing 2.78-ounce theater boxes containing the same gummies as e.frutti Lunch Bags: mini burger, hot dog, gummi fries and cola bottles. Earlier this year, the company also debuted 240-ct tubs in four SKUs: gummi worms, sour neon worms, Fried Eggs and Peach Rings. Individually wrapped pieces are also popular, he says, noting they are suitable for birthday party treat bags.
“Our best seller is the theater box,” says Russ Asaro, vice-president of sales & marketing for Healthy Food Brands, LLC. The supplier rolled out Angry Birds Gummies in this format as well as peg bags this past year, he says, explaining the gummies are shaped to resemble characters from the number one game app for smartphones and the iPad.
“There are a lot of gummies out there,” he says. “A theater box presents retailers with a different option.” To that end, Healthy Food Brands is debuting a full line of theater boxes at the SWEETS & SNACKS EXPO to tie in with the new Angry Birds Space game, Asaro says.
Peg bags of Jolly Rancher Gummies from The Hershey Co. are getting a redesign in 2012, according to Jeff Beckman, director of corporate communications. He tells Candy & Snack TODAY packs will feature updated graphics, and the makeover will extend to all other products in the Jolly Rancher portfolio as well.
“We are really excited about this new look for the brand,” he says, adding dollar sales for Jolly Rancher Gummies grew by a high double-digit percentage in 2011, driven by distribution gains with key customers. They were also one of the top 10 fastest growing gummi items this past year in terms of dollar sales growth, according to Hershey’s The Nielsen Co. data.
Regardless of the format, packaging needs to present exactly what consumers are getting, according to Au’some, Inc.’s Luciano Nascimento, marketing assistant. “Fun, exciting and tasty need to jump from the packaging and into the consumers’ minds in less than a second,” he says.
Merchandising Boosts Gummi Sales
To capture attention quickly, a variety of alternatives to the peg set exist. Putting gummies at the register is one option, according to Bert Cohen, president, Tru Sweets, LLC. He notes that for natural and organic gummies, dedicated natural candy sets are the best merchandising method because they highlight the products’ points of differentiation.
“If you’re going to have a generics haped gummi that isn’t tied to a license, season or theme, your best bet is the candy aisle,” Nascimento says, but adds: “Cross merchandising Super Mario 3-Dees gummies near the Super Mario video games or entertainment section is going to drive more traffic because of the relationship of the items with the character.”
Angry Birds Gummies are often cross merchandised with branded plush toys, keychains and other items with the license, Asaro says. A strong license can drive sales, he agrees, noting that on the day after Christmas, the game Angry Birds was reportedly downloaded more than seven million times. And regular updates that only cost $1 make it accessible and continually remind consumers of the brand, he adds.
Shippers also draw attention, Jegen says, explaining that while consumers know what gummi products they already like, there is still potential to increase brand awareness and drive loyalty.
To support its merchandising efforts, the supplier is offering 30-cents-off coupons through coupons.com, launching a Haribo USA Facebook page, and recently unveiled a new TV spot called “Big Order.”
“We’re looking to grow recognition of the Gold-Bears brand, and we’ve seen over the last year that TV advertising has had very good results,” he says.
TruSweets offers passive sampling kits as well as active staff demos for its Gummy Swirls, which are vegan, contain vitamin C, and have a daily allowance of calcium. “The challenge we have is that because it’s so unique a lot of consumers don’t know what it is until they sample it,” Cohen says.
In addition to sampling, price promotions are occasionally used to draw in consumers, but it’s important for gummies to represent a good value at everyday prices as well, according to Cohen. TruSweets’ 2.75- ounce bags have a SRP range of $1.99 to $2.29, he notes.
Price points are important, he says, because the economy has driven consumers to consider value before purchasing.
“Consumers in all income ranges are more focused on getting a better value than they were in the past,” Cohen says. “Even though candy and snacks tend to be smaller purchases, it’s still something to think about.”
Vidal’s Bernstein says when buyers add a display, velocity reports will show which products sell the best, allowing them to make a strategic business decision on what to add to permanent distribution.
Theater boxes are the best format for in-and- out endcap, shipper and powerwing merchandising, Cavalier confirms. The packs also work well in bins with other candy items, he notes.
Cross-merchandising is key for Jelly Belly’s novelty gummies, Pola notes. He says products such as the new Gummi Pet Cockroaches sell well when displayed with other items in the company’s line he deems “wacky,” such as BeanBoozled jelly beans, and placing the products near games and toys can also drive sales.
Also offering merchandising options, Farley’s & Sathers is introducing 48-ct powerwings. “Anytime you can do displays that are going to be in a prominent location with a lot of traffic, that will definitely drive sales,” Leonardo says, noting gummies are strong sellers year-round and during the holidays.
Gummies can be added to candy dishes for holiday parties, and are also used as snacks at home, in the car, at events, and sometimes as toppings, which Ferrara Pan’s Paulson confirms gives them broad appeal.
Shapiro points out different gummies appeal to different audiences. “We’ve found it’s a very broad demographic and that’s going to vary by what brand it is,” he says, explaining: “We have a brand called Buddy Bears, which is very geared toward younger kids, and we have a brand called Original Gummi Factory, which is geared more toward adults.”
Appealing To A Broad Demographic
“Gummies bridge the gap between old and young consumers,” Haribo’s Jegen tells Candy & Snack TODAY.
Farley’s & Sathers’ Leonardo confirms: “One of the things that’s appealing about gummi bears is that mom could buy it for her kids, but it’s also something she really enjoys herself.”
Tweens are an important demographic, Vidal’s Bernstein adds, stating they look for items that are unique, such as “wackier,” unusual shapes.
There has been a major push for licensed gummies during the past few years, according to Au’some’s Nascimento.
“Some licenses that have transitioned into the gummi world are Super Mario, Madagascar, Kung Fu Panda and Angry Birds,” he says. “The general consumers of gummies are males and females between the ages of 12 and 17, and their first impression needs to be familiar, whether it’s a brand or license.”
Shipping in May, new Spider-Man Gummies from Imaginings 3 are timed with the launch of The Amazing Spider-Man movie in July. Theater boxes hold gummies shaped to resemble spiders and webs. The company is also debuting Disney Fairies theater boxes holding both butterfly- and flower-shaped gummies.
Cavalier points out: “Kids are exposed to gummi candy at an early age, and tend to prefer it over chocolate.” Sour gummies are a growing segment, he adds.
Shapiro confirms, pointing to doubledigit sales growth for Promotion In Motion’s Nuclear Sqworms and Sour Jacks. He adds changemakers of both items, introduced in 2011 with a SRP of 25 cents have been successful in c-stores and bodegas.
Fruit Flavors Dominate Assortments
While chilies with chocolate and other unusual pairings have penetrated some segments in the candy category, the gummi segment remains focused on time-tested mainstream options, sources report.
Until 2012, Frankford Candy LLC’s Krabby Patties came in one fruit flavor, but the company recently introduced Sour Krabby Patties and Krabby Patty Colors in cherry, blue raspberry, green apple and grape. “These new additions are selling well and producing incremental growth,” Kurt Dungan, vice-president of marketing says.
Haribo’s Jegen says: “We have in the past added a blueberry flavor to one of our items, and we’re currently looking at some more exotic flavors, including tropical flavors.” He points to Tropi Frutti, Haribo’s assortment of watermelon, pineapple, banana, strawberry, black currant and orange-mango gummies.
As Cohen says: “We’re not seeing anything too crazy, but definitely blueberry, açai and pomegranate. Given that the consumer group for this segment is young adults and children, I don’t think they’re necessarily looking for gourmet gummies.”
Fruit flavors are still the leaders, Cavalier confirms, pointing to watermelon, cherry, strawberry, green apple and blue raspberry.
“There’s consumer demand for nonchocolate, chewy, fun items in great flavors and shapes,” Shapiro says. “Gummies are classic items that are as relevant today as they were when they were invented.”
