Candy Industry November 2011

Z.I. Le Closeau 5, rue Auguste Perdonnet 77220 Tournan-en-brie - FRANCE Tél. : +33-(0)1 64 84 50 00 FAX : +33-(0)1 64 84 50 01 www.dumoulin.fr E-mail : [email protected] RCS MELUN 582 045 852

LOGIX Hard coating sugar and sugarfree

Contents

Kristine Collins

Bernard Pacyniak

November 2011

Crystal Lindell

Volume 176, Number 11

16

Kristine Collins

CI 33

D E PA R T M E N T S

Associate Editor 847.405.4050 [email protected] ADVERTISING North American Sales 847.224.8944 [email protected] North American Inside Sales Manager 847.405.4017 [email protected]

Dee Wakefield

European Sales Manager + 44.207.792.3344 (London) Fax + 44.207.792.3331 [email protected]

Diana Rotman

Classified Sales Manager 847.405.4116 [email protected]

Jill L. DeVries

Corporate Reprint Manager 248.244.1726 [email protected]

Steve Pintarelli

Group Publisher [email protected]

Jennifer Allen

PUT THE SALES IN THE COCONUT Florida-based Anastasia Confections has taken a local treat and turned it into a candy line everyone craves.

EDITORIAL Editor-In-Chief 847.405.4004 [email protected]

Sharon Ward

COVER STORY 16

Publisher 847.224.8944 [email protected]

Sarah Zagacki

PRODUCTION Advertising/Production Manager 818.224.8035 x2214 [email protected] Art Director BNP CORPORATE DIRECTORS

John R. Schrei

Publishing

Rita M. Foumia

Corporate Strategy

Ariane Claire

Marketing

Vincent M. Miconi

Production

Lisa L. Paulus

Finance

Michael T. Powell

Creative

Nikki Smith

Directories

Marlene J. Witthoft

Human Resources

Scott Krywko

Information Technology

Beth A. Surowiec

Clear Seas Research

AUDIENCE DEVELOPMENT Amy Schuler Group Audience Development Mgr. Stacey Noocha Multimedia Coordinator Carolyn M. Alexander Audience Audit Coordinator

RC8

OPENING SHOTS

8

Dealing with Climate Change

A recent study about climate change and its impact on cocoa farming has Editor Bernie Pacyniak concerned about whether chocolate will remain affordable.

Kevin Collopy

Michael Costantino

NEWS & ANALYSIS

10

Hershey to Help Ghana Fight Malaria

The Hershey Co. expands its mobile phone outreach to cocoa farmers in the Ivory Coast.

INGREDIENT TECHNOLOGY

48

Gum Bases

Gum manufacturers now have the tools to address functionality, healthy, flavor fusion and medicinal opportunities.

Christopher Wilson

POSTAL AND EMAIL LIST RENTAL Sr. Account Manager 800.223.2194 x 684 [email protected] Sr. Account Manager 800.223.2194 x 748 [email protected] BNP CUSTOM MEDIA GROUP Christopher Wilson, 248.244.8264, [email protected]

For subscription information or service, please contact Customer Service at: Tel. 847.763.9534 or Fax 847.763.9538 or e-mail [email protected] or visit www.candyindustry.com.

CANDY WRAPPER

54

Standing Tall

With two Guiness World Records to his name, Alain Roby has created, as well as overseen, masterpieces that elevate pastry arts to a new level.

4 CANDY INDUSTRY November 2011

Printed in USA

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Contents

www.prosweets-cologne.com

ALSO IN

NEXT DATE:

THIS ISSUE ... RC24

The benefits of social media only begin when customers “like you” on your Facebook page, Associate Editor Crystal Lindell asserts. Follow-through is how the company can reward its “special” customer base.

29/ 01 – 01/ 02 / 2012

4 days

el to

in parall

ISM !

Sweet Talk

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New Products

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Industry Trends: The Chocolate Report

Jer’s Squares, Tropical Fruit Nut’s Probiotic Boost Blend, Chocolatique’s Designer Donuts, Gracious Gifts’ FunkyChunky, Brown & Haley’s Dark Chocolate Roca, Matador’s Peppered Beef Jerky and more are among this month’s featured introductions.

The big players in the chocolate market make small changes to well-known brands in safe attempts to innovate.

RC36

Cover Story: Sweet Catch

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Bits & Pieces

The international supplier show for the confectionery industry

Save time and money ! Register online now and order admission tickets free of charge at www.prosweets-cologne.com

Bass Pro Shops, the world’s largest outdoor sports retailer, understands that hunting and fishing aficionados also have a sweet tooth. Amidst gun and archery ranges, stocked rivers and fish tanks, shoppers find candy and snacks — the perfect impulse buy.

RC44

NACS Coverage

RC49

ECRM Coverage

Koelnmesse, Inc. 8700 W. Bryn Mawr Ave., Ste. 640N, Chicago, IL 60631 Phone +1 773-326 9922 [email protected] www.koelnmessenafta.com

RC 4

PS12_85x254_USA-Candy Industry 1

13.10.11 12:13

ChocoStarTM Compact. The new production line from Bühler Bindler – the Bühler centre of competence for chocolate moulding – offers smaller producers the opportunity to benefit from its vast knowledge in chocolate moulding at a very competitive price. The ChocoStar™ Compact grows with you and your demands. With production capacities from 500 up to 1,500 kg/h and thanks to its modular line concept the ChocoStarTM Compact is aligned to meet your future specific product and throughput requirements.

Bühler AG, Chocolate & Cocoa, CH-9240 Uzwil, Switzerland, T +41 71 955 11 11, F +41 71 955 35 82 [email protected], www.buhlergroup.com

ChocoStar™ Compact Benefits at a glance: – Reliable technology – Attractive price – Quick market access – Modular configuration – Flexible and easy product changeover – New hygienic solutions – Economical energy use

Innovations for a better world.

Opening SHOTS

Dealing with climate change By Bernie Pacyniak

I

’ll admit it, I was initially skeptical about the impact of climate change on the world. No doubt, it stemmed from my cynical and contrarian nature, one that prevents me from immediately joining a bandwagon. As with many issues I examine to form an opinion about, I typically reject simplistic solutions out-of-hand. Consequently, when climate change alarmists were warning the world about the dire implications to come several years ago, I thought they might be crying wolf. After all, as the U.S. Environmental Protection Agency points out on its website, “the Earth’s climate has changed many times during the planet’s history.” Moreover, past as well as recent snowfalls in Chicago seemed to suggest that global warming, as concerns the Windy City, didn’t apply. Nevertheless, the body of evidence continued to grow. Consider some of the facts I gleaned from the EPA: The Earth’s average temperature has increased by about 1.2° to 1.4° F during the last 100 years; the eight warmest years on record (since 1850) all have occurred since 1998, 2005 being the warmest; and the growing physical evidence detailing the shrinking of glaciers, rises in sea level, the thawing of the permafrost and disruptive changes in plant and animal life. No longer can I — although some politicians think otherwise — argue that life on this planet isn’t at risk because of climate changes stemming from human impact. And while the changes aren’t always immediately dramatic, they have, 8 CANDY INDUSTRY November 2011

during the course of the last few years, opened several eyes (including mine) about what’s going on. Recently, the International Center for Tropical Agriculture (CIAT) released a study saying that the planet’s current cocoagrowing topography will be very different in 2050. It cited significant changes in Cote d’Ivoire and Ghana, where more than half of today’s cocoa is sourced. Because of global warming, cocoa production will begin to tail off in those regions by 2030, the report says. As average temperatures increase, cocoa trees, particularly those without the benefit of a “green canopy” protecting them, will have a hard time drawing enough water to encourage cocoa pod development. Farmers — in an effort to ensure their survival — may opt to plant more heatresistant plants as a means of coping with these changes. In the end, there may be less cocoa available. Interestingly, the implications about global warming as it pertains to crops, surfaced just last week again. This time, however, the crop in jeopardy was coffee. Starbucks’ director of sustainability told the London-based Guardian newspaper that climate change is also threatening the world’s coffee supply. Like cocoa, coffee prefers a narrow range of temperatures. Unfortunately, as many can attest today, continued global warming will elicit temperature extremes. Thus, scientists expect heavier rains, longer drought periods, and higher insect infestations (sounds rather familiar, doesn’t it?) as a result.

As a Chicago resident, Editor Bernie Pacyniak can attest to an increase in climate extremes in his neck of the woods.

Are we looking at a world where my future grandchildren won’t be able to afford chocolate or coffee, the two becoming super luxury goods only the 1% can afford? Again, predicting exactly what will happen with regards to climate change remains a speculative art. But we can’t ignore these cries of wolf. He’s definitely lurking out there. However, it’s not all gloom and doom. Thanks to commitments by Mars, IBM and the USDA, the cocoa genome has been mapped out. It’s possible for researchers to breed cocoa trees at a faster pace, enabling them to select specific varieties that demonstrate a higher drought tolerance. Programs also are underway that encourage farmers to plant fast-growing fruit trees, such as banana and papaya, as well as preserve high canopy trees to provide adequate amounts of shade for the heat-sensitive cocoa trees. Nevertheless, the future of our industry depends on what we do today to ensure our grandchildren can enjoy and afford chocolate. So next time you change the temperature on your thermostat, remember, farmers — throughout the world — don’t have that ability.

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Grown from seed, hand-picked on the coast of Maine, flown in daily. Only one in ten makes the grade. Only Peter’s matches your passion.

I

n 1875, after eight years of experimentation and refinement, Daniel Peter of Vevey, Switzerland gave the world its first taste of milk chocolate. And the world of chocolate was changed forever. Today, nearly 130 years and many accolades later, Peter’s Chocolate continues to produce exceptional chocolate for the uncompromising few – for people like you.

THE MARK Phone 877-835-4243 www.peterschocolate.com

OF DISTINCTION™

News

& A N A LY S I S

Hershey to help Ghana fight malaria

T

he Hershey Co. soon will add disease prevention, cell phones for women farmers and solar chargers to the list of things its CocoaLink network provides. The new features for the network, which was launched in July, now include: • a partnership with the nonprofit organization Malaria No More — part of a global effort that seeks to end malaria deaths in Africa by 2015 — to leverage CocoaLink’s connection to rural cocoa villages. • an internal smart phone recycling program. Through the program, more than 500 smart phones no longer being used by Hershey’s U.S. employees willl be redeployed to women across Ghanaian cocoa communities by the end of the year to bridge a gender gap in mobile handset ownership. “CocoaLink: Connecting Cocoa Communities” is a unique farmer outreach program developed by Hershey, the World Cocoa Foundation and the Ghana Cocoa Board. It uses mobile voice and SMS text messages delivered in local languages or English to connect cocoa farmers with information about improving farming practices, farm safety, child labor, health, crop disease prevention, post-

harvest production and crop marketing. CocoaLink community trainers already have enrolled more than 2,500 farmers, putting the program on track to directly reach more than 8,000 Ghanaian cocoa farmers and community members by next year.

Malaria Prevention

As part of the new features, CocoaLink will join Malaria No More’s NightWatch program, which focuses on increasing the use of mosquito nets in malariaendemic communities. NightWatch is a communications campaign that broadcasts messages each night at 9 p.m., the time that malarial mosquitoes come out. The messages remind people to sleep under their mosquito nets and include information about healthy behaviors, such as the need to seek prompt malaria testing and treatment. Hershey and its CocoaLink partners will include NightWatch malaria prevention messages in its ongoing series of SMS texts to cocoa farmers. “By partnering with Malaria No More, we will be able to provide families with valuable information that can save lives and reduce suffering,” says Andy McCormick, v.p. of public affairs, for Hershey. “CocoaLink is a natural extension of Malaria No More’s commitment to connect families through new and emerging communications technology.” And, Kate Campana, managing director of impact programs for Malaria No More, hopes the new partnership, “will send a powerful message about the importance of preventing CocoaLink allows farmers to receive information malaria, especially among about improving farming practices, farm safety, young children.” child labor, health, crop disease prevention, As part of its efforts to reach post harvest production, crop marketing, and now, malaria prevention. women farmers, CocoaLink

10 CANDY INDUSTRY November 2011

recently became one of the first company programs to be endorsed by the U.S. Department of Labor as part of its $17-million Framework of Action campaign to combat the worst forms of child labor in Ghana and the Ivory Coast. The Hershey Co. is a founding partner and a sponsor of the Framework of Action. The CocoaLink program expansion will benefit families in cocoa communities, especially women and children. Today, Ghana’s mobile phone coverage spans more than 85% of the country and more than 65% of rural residents have access to mobile phones. However, because fewer than half of the women in the 15 CocoaLink villages have their own phones, Hershey will provide an initial 150 mobile phones to women farmers, using reconfigured phones collected from its employees. While mobile phones have become commonplace in rural cocoa communities, reliable access to electricity poses a challenge to many rural phone owners. Madeleine Blommer, a member of the Blommer Chocolate Co. family, the largest cocoa bean processor in North America, has contributed solar chargers to help ease this problem. And, Hershey and its CocoaLink partners will utilize the CocoaLink network of trainers and community leaders to help distribute the solar chargers. CocoaLink’s local trainers are also part of the successful WCF ECHOES Alliance’ functional literacy and numeracy training program, another on-the-ground program in which Hershey is actively involved. Solar chargers will also be distributed by Peace Corp volunteers, helping with CocoaLink farmer training and implementation. For more information on CocoaLink, visit: www.worldcocoafoundation. org/what-we-do/current-programs/ CocoaLink.asp www.candyindustry.com

News & Analysis

Blue Diamond moves forward with expansion plans

B

lue Diamond Growers has purchased 88 acres of land in Turlock, Calif., as part of a 15year expansion strategy. The company — the world’s largest almond marketer and processor — still will operate its Sacramento and Salidabased plants, and, in fact, upgrades are planned at both facilities. However, neither site had enough land to allow for expansion. As a result, the property in Turlock will serve as the major expansion location, and is expected to meet the company’s increasing global market opportunities and crop supply. The three-phased project will provide training and other new opportunities for

12 CANDY INDUSTRY November 2011

current employees in Sacramento, Salida and, eventually, in Turlock. “The California almond crop has doubled over the last decade,” explains Mark Jansen, Blue Diamond president and ceo. “The unprecedented growth in our Blue Diamond consumer brand and ingredient business requires us to expand our capacity beyond our Sacramento and Salida operations.” Janson says Turlock was chosen after an exhaustive search partially because the community’s city council was so helpful. “Turlock is exactly the pro-business partner we need to meet the difficult regulatory challenges in California,” he says. “Turlock has shown it can provide

the economic climate we seek so that we can grow together.” The phased project is designed to minimize initial construction costs and to build Blue Diamond’s growing consumer brand and ingredient business at a significant compounded return to the grower-owners of the cooperative over the next 15 years and beyond. The investment is focused on new automated technologies that will increase yields and reduce handling to provide additional cost savings at all locations. It also will provide opportunities to achieve the highest levels of a safe food environment for producing premium quality almonds.

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News & Analysis

Richardson receives Stroud Jordan award

A

t the American Association of Candy Technologists’ (AACT) Technical Seminar held in late September in Lincolnshire, Ill., Terry Richardson of Richardson Researches, Inc., was presented with the Stroud Jordan award, the association’s highest honor. Robert Boutin, principal and president of Knechtel Laboratories and last year’s Stroud Jordan recipient, presented Richardson with a framed certificate and medallion featuring the image of Stroud Jordan, a renowned confectionery scientist and co-founder of the AACT. Each year since 1951, the AACT presents the award to someone in the industry who’s contributed significantly in the area of education, organization or research. Richardson, who upon receiving the medallion from Boutin joked that he always wondered what Jordan looked like, thanked mentors and colleagues he’s worked with for the honor. Having spent 57 years in the industry, Richardson went on to tell those in the audience of several miscues in his career that helped him become a better confectioner. As he pointed out, those lessons stayed with him, noting, “A little fear [of failure] helps keep the creative juices going.” A graduate of the London Borough Polytechnic in Confectionery and Chocolate Technology and of the College of South West Essex in Business Management, Richardson held technical and production positions for several U.K and North American companies, eventually joining Knechtel Laboratories in the early 1960s. He then went on to establish his own consultancy business and continues to hold several patents for new products and processes. A Candy Hall of Fame inductee, Richardson is a Fellow of the Institute of Food Science and Technology (UK) and a member of AACT and the Institute of Food Technologists. Richardson Researches, Inc. specializes in chocolate and confectionery technology. The company also offers classes, in chocolate, confectionery and gourmet continental chocolate. For more information, visit www.richres.com and Terry Richardson, www.aactcandy.org. accompanied by his wife, (Continued on p. 50)

14 CANDY INDUSTRY November 2011

Rose Marie, proudly holds the Stroud Jordan award.

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Manufacturer Profile

Anastasia Confection’s Coconut Patties are a hit with Florida tourists and everyone else who tries them.

Put the sales

in the

coconut Florida-based Anastasia Confections has taken a local treat and turned it into a candy line everyone craves.

16 CANDY INDUSTRY August 2011

www.candyindustry.com

By Crystal Lindell Associate Editor

M

ike Constantine, e, CEO and President dent of Anastasia Confections, fections, recently attended ded his first ECRM Show. The targeted conference is basically a string of oneon-one meetings between candy buyers and confectionery manufacturers. Companies such as Anastasia set up in a hotel room — minus the bed — while buyers circulate from room to room every 20 minutes. It’s not cheap though. Manufacturers pay upwards of $15,000 to participate, so it’s important to make an impression.

At a Glance Anastasia Confections, Inc. Headquarters: Orlando Employees: 35 to 45 Plants: 80,000-sq.-ft processing plant in Orlando; additional 25,000-sq.-ft. warehouse. 2010 Sales: Candy Industry estimates $5 to $15 million. Annual output: 2.5 million lbs. of candy annually. Products: Coconut/chocolatebased confections, saltwater taffy, moulded chocolate products (Choc-o-Gators), enrobed chocolates, chocolate-covered pretzels and cookies, jelly citrus candies, and fudge. Rebagger of gummy and other novelty items. Brands: Anastasia Confections, Tropical Confections Management team: The Constantine family (MikePresident, Anastasia-v.p., Dimitri-v.p. operations, Katrinaaccounting/office mgr.), Jose Do Nascimento-production mgr., James Lascano-sales mgr., Pablo Sanchez-maintenance mgr.

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And maybe it was because the Orlando-based ed company had home field advantage at the show — held at the Marriott World Center Resort in Orlando, Fla. — that they did just that: The company’s Coconut Patties atties Bar was among the top five scanned items b by d it buyers at the event. Not a bad first try. Anastasia Confections clearly has a product people outside of its native Florida are interested in, and after recently moving into an 80,000-sq.-ft. plant, the company is well-positioned to take advantage of the attraction. Constantine – who now runs the company with help from his wife Anastasia and his children, Dimitri, 26, and Katrina, 24 – fi rst got into the candy business after buying a retail store in 1983. Soon, though, he started manufacturing products after noticing a glaring hole in the Florida confectionery market. “With millions of tourists visiting Florida annually, I wanted to create a product line related to the tourist industry,” he explains. “My first products were chocolate and fudge alligators.” Coconut patties soon followed and quickly outpaced the gators. “In the beginning we started doing the original coconut patties at home and then in a very small warehouse,” Constantine says. “It took quite a few years to turn the corner and make it profitable and successful, but we did it little by little.” The coconut products are still the most popular item, but the company also has since introduced a slew of Florida-themed treats, such as salt water taffy and jelly fruit squares. The sweets sell from anywhere between about $1 and $5.99. Anastasia Confections also expanded on its popular line of coconut patties, which now come in six flavors, including: key lime, almond, orange, pina colada, mango and, of course, original.

“It feels good every time you create he says. t a new product,” d t”h And, you can find Anastasia Confections at every airport, hotel and gift shop in Florida. “Our Coconut Patties have been a top seller for years in all of Florida’s airports,” Constantine says. He credits the quality of the product and the appealing packaging — some of which feature a map of Florida, while others have palm trees, sea shells or gators — with enticing travelers to pick it up on their way back home. “European visitors, traveling through the airports, don’t really know what a coconut patty is, but because of its attractive packaging, they’ll buy it as a Florida souvenir,” Constantine explains. But what would a Florida tourism candy be without a presence in the state’s most famous theme park? And there too, Anastasia Confections has succeeded. The company manufactures a private label product for a major theme park in Orlando. Anastasia Confections originally started at a manufacturing plant in Pompano Beach, which is in south Florida. Then, they moved to a 50,000-sq.-ft. facility in Orlando in 1997. “[It was] a more centralized location. Because the bulk of the Florida visitors come to Orlando’s theme parks, we wanted to be in the heart of it,” he explains. Outside of its home state, the company has expanded throughout the continental United States, and into Canada, and the Caribbean. In fact, Anastasia Confections has been particularly successful with a Coco Rhumbies treat in the Caribbean. November 2011 CANDY INDUSTRY 17

Manufacturer Profile

“We use part of our coconut paste and then we add other ingredients, including real cocoa and vanilla wafer cookies [which are crushed]; so it’s a very tasty product,” Constantine says. As for the company’s next stop on the map, Constantine says he doesn’t want to ship his confections too far because they have a limited shelf life, but he’s open to possibilities. “We do have a customer in South Africa that took the coconut patties there,” he says. “They love the product, but transportation costs, duties and logistics make it difficult to sustain a profitable distribution.” As for the specific retail carriers, Constantine says his biggest individual account excluding two key distributors, is Marmaxx, owners of T.J. Max and Marshalls and Home Goods. He’s also gotten the product into a number of drug stores, mass merchandisers, convenient stores and some supermarkets. “We hope to expand on all these markets in the future,” he says. The company also is looking to expand to Central American countries, where coconut is very popular. “We’ve been doing this for 27 years and people keep buying it, so it has established its own recognition,” he says. “Our best advertisement is the product itself.”

Where it’s all made But no matter where they ship to, it all starts out at the company’s new Orlando factory. The company moved there in 2009 from their 50,000-sq.-ft. facility, which has since been turned into a warehouse. Constantine says the new factory, which smells like warm coconut, features fully state-of-the art processing and packaging automation. Most of the equipment at the facility was purchased within the last five years, with well-known European and American suppliers installing the latest processing and packaging equipment. To make the coconut patties, an operator starts with a liquid slurry (sugar, corn syrup and water), which is made in steam kettles and mixed with coconut and other ingredients in the RMF Paddle Mixers to create a coconut paste. The paste is then extruded with a Reiser Vemags unit directly on to a 32-inch Nielsen (now part of Aasted ApS) enrobing line, which includes a chocolate melter, tempering machine, enrober and cooling tunnel. Once the coconut patties are enrobed and cooled, they go through a series of Transver smart conveyors (Pull nose and Chicane systems) before being fed directly into a Bosch Doboy Linium 301 flow wrappers at a speed of 250 pieces per minute. The fi nished wrapped pieces then go through a Loma metal detector or a Thermo X-Ray detection machine. A Kliklok ECT-625 carton former and a Vari-Right carton closer is used to pack and seal the final package while a Markem-Image laser coder burns the date code on the finished product. Final weights are verified using a hi-Speed Check Weigher. “The whole line is totally automated,” Constantine says. “The product is not touched by hands.” 18 CANDY INDUSTRY November 2011

After exiting a Nielsen enrober and cooling tunnel, Anastasia Confection’s Coconut Patties go through a series of Transver smart conveyors (top), then are run through a Bosch Doboy Linium 301 flow wrapper (second to top). The finished wrapped pieces then go through a Loma metal detector or a Thermo X-Ray detection machine to a Kliklok carton former and carton closer (second to bottom). A MarkemImage laser coder burns the date code on the finished product (bottom). Photos courtesy of Anastasia Confections.

www.candyindustry.com

Off to the side of the main manufacturing area is a small room where they can make the company’s original chocolate alligators, dubbed, “the chocolate room.” It features a Knobel one-shot depositor, an Aasted tempering unit, a Tinsley chocolate tank, and Savage chocolate melters. The factory also has an on-site machine shop and storage in the back, as well as an office area up front. The plant is not quite at capacity, but during winter months, the company runs extended hours with 1.5 shifts. As for ingredients, most of the more than 400,000 lbs. of coconut used annually comes from the Philippines, Indonesia, Sir Lanka and Vietnam, by way of brokers. The company also uses more than 400,000 lbs. of chocolate a year, which they get mainly through Cargill, Barry Callebaut and others; while the sugar, more than 300,000 lbs. annually, is sourced through local brokers. Constantine says ingredient price increases have hit his company hard. “It’s been tough,” he says. “In the last couple of years, commodities such as cocoa and sugar, along with coconut and everything else have gone up anywhere from 20% to 100%. These increases have

The company’s Masipack Bagging system includes a vibrating hopper, a bucket elevator, a 16-head scaling unit and a vertical form seal bagger with a takeoff conveyor and a turn table.

reduced our profit margin considerably and to keep our prices competitive we cannot pass it on to the customers.” Probably the hardest hit came from one of Anastasia’s main ingredients, coconut, which has doubled in price in the last couple years. Constantine explains the increase stems partly because of supply/demand issues, such as a greater demand for coconut oil, a growing demand for coconut water, typhoons in Philippines and fuel costs. “We’re eating most of that cost,” he says. Of course, Constantine says he

wouldn’t consider sacrificing quality to make up the difference. “Our model is to produce quality candy at a reasonable price. I would not make and sell anything that I would not give to my kids or my grandkids,” he says. And he hopes the business itself will remain a legacy for his grandkids’ children. “If you start something, like I did, I don’t want to sell it, I’d rather pass it on,” he says. As long as Anastasia continues to create products that appeal across the board, there’s no doubt, it will generate smiles for several generations.

Anastasia Confection’s 80,000 sq.-ft. facility features state-of-the art equipment, most of which was purchased within the last five years from well-known European and American suppliers.

www.candyindustry.com

November 2011 CANDY INDUSTRY 19

International

CONFECTIONER PROFILE

Pakistan’s First Ladies of Chocolate In taking over a fledgling chocolate business from her mother, Madiha Sultan, ceo of Lals Chocolates, has established the country’s first luxury chocolate enterprise, providing premium products and packaging to a growing market segment. By Saif Dewan

D

espite the country facing a host of economic, political and social problems, which range from extremism and terrorism to inflation and energy concerns, Pakistan continues to encourage entrepreneurism, both from aboard and at home. Throughout Pakistan, enterprises as well as professionals are pioneering innovation through their leadership. They are replacing the old command-andcontrol model of management with an inspire-and-communicate model. Madiha Sultan, the ceo of Karachi, Pakistan-based Lals Chocolates, provides one such example. After graduating from McGill University in Montreal in 2006, the Pakistan-born Sultan decided to lead her family enterprise. At first glance, Sultan doesn’t seem cut out for the role of audacious entrepreneur. The co-founder of Lals Chocolate firmly believes that the best way to professionalize a family business is by balancing hard-nosed business savvy with a compassionate heart. Lals Chocolate is not just a 20 CANDY INDUSTRY November 2011

chocolate producing company, she proclaims, “Lals is a culture, a philosophy.” Given the state of the premium chocolate market in Pakistan, it’s critical for a pioneering entrepreneur to be pragmatic, compassionate and persevering. Although the premium chocolate category in Pakistan is just beginning to evolve, it is a constantly growing segment. As a result, there’s clear growth potential for assorted gift and pouch items at a competitive price range. In recent years, many global packaged food and confectionery manufacturers have turned their eyes onto the Pakistani market. Like many parts of the world, particularly in emerging Asian markets, general confectionery items represent a fast growing and dynamic segment in Pakistan. The industry has grown at an average annual rate of 6.5% to 7.5% between 20022008. Though domestic confectionery brands enjoy the major chunk of market share (85%), foreign chocolates brands are also registering moderate growth in Pakistan’s major metropolitan cities, particularly in Karachi, Lahore, Islamabad,

Pindi and Faisalabad, where retail presence and sales are growing day by day. Growth in consumption of locally produced chocolates and acceptance of imported brands are mainly being driven by the increasing number of middle and upper class consumers in urban areas.

Lal Majid (left), founder and namesake of Lals Chocolates, looks to her daughter, Madiha Sultan, to grow the company as its ceo.

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Lals Chocolates has three retail locations in Pakistan, one in Karachi and two in Lahore. The emphasis at each shop focuses on premium chocolates and upscale packaging.

Moreover, Pakistan remains a relatively young country where the median age is 21.6 years, suggesting more change is inevitable. The supermarket revolution is also underway in these cities and is one of the chief reasons for stimulusincreased consumption of foreign chocolates brands. Supermarkets (here referring to all modern retail, which includes chain stores of various formats such as supermarkets, hypermarkets, and convenience stores) have now gone well beyond the initial upper- and middle-class clientele to reach the mass market. In Pakistan, making confections, especially chocolates, has been a forte of male-oriented, mass-produced manufacturers. Never before has there been a company that creates high quality chocolates that are not just edibles, but also gift items. Lals Chocolates, however, not only opted to tap into the unexplored potential of premium chocolates in the country, it’s also owned and managed by a female entrepreneur. As the only domestic luxury chocolate company in Pakistan, Lals Chocolates maintains a market-leading position, competing only with foreign and multinational chocolate companies based in Pakistan, such as Lindt. It started in July of 2006 with its flagship store in Karachi’s exclusive shopping district of Zamzama and has grown from a single-outlet company to a multi-channel supplier of www.candyindustry.com

high quality chocolates. Lals Chocolates’ products are sold through its two stores in Karachi, the Lals e-commerce portal, as well as through more than 200 retail outlets of the gift delivery arms of Pakistan’s leading courier service companies OCS and TCS, and other luxury goods retailers and providers in Pakistan. Its revenues have grown 300% since inception and profitability has been enhanced due to technological and systems innovation. Though Lals Chocolates’ products are delivered and available through the internet countrywide, it has plans to open more stores thereby offering its entire product range in all major cities throughout the country. The company also plans to work on regional partnerships to retail its products within the South Asian nations of India, Bangladesh and Sri Lanka.

In a Candy Industry exclusive, contributor Saif Dewan discusses the challenges of being one of Pakistan’s First Ladies of Chocolate with Maida Sultan:

DEWAN How would you describe Lals Chocolates and your role in the company? SULTAN Lals Chocolates is Pakistan’s first premium chocolate brand. It was started five years ago by my mother Lal

Majid in Karachi, Pakistan, with one retail outlet in the high-end shopping area of Zamzama. When she started, we weren’t sure if there was even a market in Pakistan for chocolates that are priced at $40 a kilo. She did not have any knowledge of producing chocolates either, but we knew what good chocolate tasted like, so she set out to find contract manufacturers that could produce a few basic recipes for us in small quantities under our brand. I joined the company around the time this search for producers was taking place. We also searched around to see what bulk chocolate manufacturers were around and discovered the likes of Barry Callebaut, Felchlin, Aalst, and various others. Callebaut was selected for its great taste, broad appeal and availability. Lals Chocolate is a small company that employs 16 dedicated individuals. We now own three retail locations, one in Karachi and two in Lahore. We currently offer 24 different types of moulded pralines (that are produced by our contract manufacturers based in Europe and the UAE) and we produce dipped and enrobed truffles in our kitchen. In addition, we recently introduced our newest and most popular pastry product, the French macaron, which is available in 10 flavors. Our chocolate and pastry production area occupies 500 sq. ft. Our packaging and gift wrapping area is also 500 sq. ft. and we have about 2,000 sq. ft. of warehousing space. Our business is primarily divided in half between retail and corporate sales and our innovative packaging options are a core selling point. We do, however, have a firm belief that what’s inside the package counts far more than what’s on the outside, so premium taste and quality remains a priority for us. DEWANHow has the business changed after your took over as the ceo? What steps did you take to accomplish the turnaround? SULTANI have been there pretty much since the start. Even though we are a small company in revenue, we keep a very international outlook. Both owners, my mother and myself, are graduates of the Professional Chocolatier program and the Quality Assurance program at Ecole Chocolat in Vancouver. We make it a point to travel to major food fairs or confectionery fairs to November 2011 CANDY INDUSTRY 21

International Confectioner Profile

keep abreast of new developments in machinery or products and general industry trends and develop supplier relations. We started out sourcing high quality packaging from China such as wooden boxes for our luxury line, tin boxes for our retail line and custom-designed cardboard boxes. This is not the norm for small chocolatiers anywhere in the world, but we did it because we’ve always believed in being ahead of the game. When we were just a year old we spent a considerable amount of money developing an e-commerce website with our entire product catalogue available for purchase from anywhere in the world to be shipped all over Pakistan. To date we are one of the very few Pakistani companies with an ecommerce site. We are currently working on redeveloping the site to create a smoother e-shopping experience for our customers. DEWANHow would you describe your own management style? SULTANI don’t think I know how to describe it. Suffice it to say, I like things to be organized; I prefer to have everything in writing. I prefer proper procedure in many ways so as not to be ad hoc, which is very easy for a small company to be, especially when there is no formal structure or departments, so I try to avoid that. I make it a point that any instructions I hand out are in the form of an e-mail, and responses to them are the same. I like to be approachable, and I mean right now we are a small company so that’s a necessity, but I would always like to be accessible to all employees and customers no matter how big we get. DEWANWhat’s been hardest for you? What did you find difficult to change? SULTANWhat’s been most difficult for me is getting people to follow protocol or to be organized. I have to tell my employees on a daily basis to write things down, to not walk into my office without a note pad. To read their emails in detail. 22 CANDY INDUSTRY November 2011

Each retail shop has a 500-sq.-ft. production area, where hand dipping of chocolate items, like truffles (left) occurs. The company also had high-end moulded items produced in Belgium and UAE by contract manufacturers.

I think it’s a cultural issue, and also a lack of formal education for the majority of the population. But the other problem I face is trying to get people to understand the importance of being organized. It’s also very difficult for me to understand the Pakistani obsession with all things imported. I would very much like to produce our entire range locally; however, one of the things I fear is that people covet imported items and it may reduce the value of our brand if our confections are moulded locally. DEWANIs there anything you did not want to change? SULTAN I like my mother’s approach to treating her employees like family, and sure sometimes it means we’re too “soft,” but we know that at the end of the day, we care for each and every person and they care for us. You won’t believe this, but some of our core people are not even locked in by contracts. We know they won’t leave and they know we would never take advantage of them. I wouldn’t change this. DEWANWhat sorts of projects are you involved in? SULTANCurrently, I am very busy developing a much more extensive e-commerce website. At the same time, I

am working on developing an operations manual and also looking for franchisees. We are also implementing a new accounting and inventory system and that’s not something I’m looking forward to because there is always opposition to change. DEWANWhat expectations do you have of your people and people around you? SULTANTo give everything their best, and to work hard and be honest. DEWANWhat is your most important job as chief executive? SULTANI think it’s to inspire the people who work at Lals Chocolates to keep working towards a better company. DEWANWhat are your most significant managerial concerns? SULTANTimely reporting in accounts and inventory. DEWANWhat do you think are your strengths as a young ceo of the company? SULTANEnergy, positivity, dedication and flexibility. DEWANWhat more would you like to accomplish at Lals Chocolates? When will you know you have accomplished your mission? SULTANTo see Lals Chocolates in the major urban centers of Pakistan, Bangladesh, Sri Lanka and, hopefully, India.

ABOUT THE AUTHOR Saif Dewan, a business development manager for Muller & Phipps Pakistan, has 15 years’ experience in sales, marketing and distribution management with leading organizations in Pakistan. Dewan received his B.A. (Hons.) and Master’s Degrees at the University of Karachi, where he majored in economics, with marketing and management. To contact the author, e-mail [email protected].

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Sweet TALK

Getting customers to

*

you

By Crystal Lindell Associate Editor

I

f you sell candy and you’re not on Facebook yet, then I have really bad for news for you — the world has passed you by while you did not pass Go and did not collect $200. But don’t take my 20-something word for it, just look at the data. An article at MyCustomer.com ranked UK companies’ Facebook pages by the number of fans who followed them (or clicked “like” on their pages). The results show just how sweet social media is — four of the top five were confectionery companies. With about 2.9 million fans, Skittles ranked number two, behind number one Burberry, which has more than 8.6 million fans. Coming in third was Cadbury Creame Egg, with about 2 million fans; followed by Cadbury Wispa, with about 1.8 million fans; and Maltesers at number 5, with about 1 million fans. I’d like to think the data means confectionery companies finally have figured out that they need to spend their time where their shoppers spend their time. That they finally understand how to be open-minded about the whole social media thing, and that there will never ever be a need for even one more column begging confectioners to sign on.

And we can all move on with our lives. The End. Of course though, that’s not the end. Because even when companies sign up for Facebook, and create charming profile pictures featuring their product and smiles, and then they amass large numbers of fans

It’s when confectioners can dramatically increase brand awareness, simply by posting things like, “I’m making a horror movie about a world without Skittles. What should I call it?”, and then receiving replies from people professing their love for your product, such as, — “The dark side of the rainbow,” and “No Skittles! No Rainbows! Know Skittles! Know Rainbows!” It’s when candy companies can finally market to the core of their customers by creating a fun dialogue that makes them want to buy Maltesers not just because they taste good, but because they feel like they’re purchase supports a friend they communicate with online. But, I think, most importantly, it’s when businesses can figure out how to keep customers who otherwise would “dislike” if not for the glorious opportunity to complain. Because when customers have the opportunity to complain, they’ve just given a company the greatest gift of all — the opportunity to resolve the issue. So go forth, and create the prettiest Facebook page ever, and then rack up a million fans. But don’t forget to engage, communicate and respond, because that my Facebook friends, is how you grow your consumer base one “fan” at a time.

Social media — that’s when the companies are given the wonderful gift of direct contact to consumers, and the marketing can start. simply because people like candy, that doesn’t mean the work is done. In fact, that’s when the social media work starts. Because unlike commercials or print ads, the job doesn’t end when you plop your message into the world and hope that someone, somewhere responds. Rather, with social media, that’s when the companies are given the wonderful gift of direct contact to consumers, and the marketing can start. It’s when brands can reach their audience at all hours in all places, whether it’s 11 a.m. at a desk via a computer, at 5 p.m. on the train via a laptop, or at midnight in the bathtub via a smart phone.

*Facebook Like Button RC24 RETAIL CONFECTIONER November 2011

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New Products Jer’s Squares

Jer’s Chocolates, Solana Beach, Calif. www.jers.com (800) 540-7265

Probiotic Boost Blend

Jer’s Chocolates, the leading innovator and distributor of gourmet peanut butter-chocolate candies, bars and gift boxes, announced the upcoming launch of Jer’s Squares; offering customers a “bite-size” piece of Jer’s All-Natural Peanut Butter Bars. Jer’s Squares will be available in the same combinations as the bar; with variations of milk and dark chocolate, peanut butter, toffee, pretzels and caramel. Ingredients: (Toffee Break) Dark chocolate (chocolate liquor, sugar, cocoa butter, milk fat, soy lecithin, pure vanilla), peanut butter (Valencia peanuts, palm oil, salt), toffee (butter, sugar, soy lecithin, pure vanilla), butter (pasteurized cream, salt), palm kernel oil, cocoa powder (Dutch process), mixed tocopherols (antioxidant). May contain trace amount of almonds, pecans, cashews and wheat flour. S.R.P.: (.45-oz. square) $.79 to $.89

Tropical Fruit Nut, Columbus, Ohio (800) 538-3941

Probiotic Boost Blend also is a tasty treat that combines dark chocolate cranberries, dark chocolate espresso beans and dark chocolate raisins with almonds. The makers claim it also supports digestive health with an active culture more effective than yogurt. Ingredients: Probiotic dark chocolate cranberries, [dark chocolate [sugar, chocolate liquor (processed with alkali), cocoa butter, milk fat, soy lecithin (an emulsifier), natural flavor (vanilla)], dried cranberries (cranberries, sugar, sunflower oil), corn syrup, modified starch (tapioca), confectioner’s glaze, probiotic added (bacillus coagulans GBI-30 6086)], dark chocolate espresso beans and dark chocolate raisins [dark chocolate [sugar, chocolate liquor (processed with alkali), cocoa butter, milk fat, soy lecithin (an emulsifier), natural flavor (vanilla)], espresso beans, raisins, corn syrup, modified starch (tapioca), confectioner’s glaze], almonds (with canola oil, salt), dried cranberries (with sugar, sunflower oil). *Contains tree nuts (almonds), milk and soy. **May contain traces of other tree nuts, peanuts, and wheat. S.R.P.: (8-oz.) $4.99 RC26 RETAIL CONFECTIONER November 2011

Bubble Bucket Bubblegum Ludo, LLC www.ludollc.com (440) 542-6000

Ludo, LLC, a kids’ candy manufacturer is launching a bucket full of bubblegum and each piece is filled with sour powder. The Bubble Bucket is a great impulse product for retailers. Ingredients: Sugar, gum base, corn syrup, corn starch, citric acid, soy lecithin, glycerin, malic acid, dextrose, artificial strawberry flavor, and artificial colors. (FD & C red 40, yellow 5 and blue 1). S.R.P.: $1.19 to $1.99 www.retailconfectioner.com

New Products

Combos Baked Snacks/ Buffalo Blue Cheese Pretzel

Perfect For Every Occasion

Mars, Hackettstown, N.J. (908) 852-1000 www.mars.com

The Combos Brand Buffalo Blue Cheese Pretzel limited edition was so popular that Mars is launching it as a permanent addition to the Combos line-up. The snack is a zesty combination of Buffalo wing and blue cheese flavors in a crunchy pretzel shell, oven baked to create a hearty snack that really satisfies. Packaging includes prominent Guideline Daily Amount (GDA) nutrition labeling that enables consumers to make an informed snack choice at the point of purchase. Ingredients: Wheat flour, vegetable oil (palm kernel oil, palm oil and/ or hydrogenated pal oil), whey, maltodextrin, food starch-modified, salt, less than 1.5% - buttermilk, corn flour, dextrose, tomato, baking soda, sodium, diacetate, sodium acid pyrophosphate, garlic, cayenne red peppers, soy lecithin, yeast extract, onion, spice, modified corn starch, sugar, artificial and natural flavors, vinegar, paprika extract, acetic acid. S.R.P.: (7-oz.) $1.89 – $2.39

Mentos Rainbow PREMIUM CHOCOLATE SINCE 1949 www.worldsfinestchocolate.com

1-888-821-8452 RC28 RETAIL CONFECTIONER November 2011

Perfetti Van Melle USA, Erlanger, Ky. www.perfettivanmelle.com (800) 283-5988

Mentos Rainbow offers 14 chewy mints in seven different flavors including: watermelon, cherry, orange, raspberry, grape, pineapple and strawberry. Each mint corresponds to the flavor on the outside so you always know what comes next. Ingredients: Sugar, glucose syrup, hydrogenated coconut oil, citric acid, manioc starch, natural and artificial flavors, gum Arabic, carnauba wax, sucrose esters of fatty acids, gellan gum, colors (carmine, turmeric oleoresin, bet-carotene, vegetable juice, annatto extract, beetroot red). S.R.P.: (1.32-oz.) $1 www.retailconfectioner.com

Matador Beef Jerky Peppered Beef Matador Beef Jerky, Minong, Wisc. www.matadorsnacks.com (800) 352-4477

Matador Beef Jerky has launched a Peppered Beef flavor. The new flavor is part of the company’s overall re-launch of the product, which now features a new logo and package design, and was created to encourage new consumers to pick up the product. The company also is launching new retail merchandising solutions, including floor and counter display, as well as caddy and clip strip options. Aside from peppered beef, the company also makes original, teriyaki, sizzling sweet, and smokin’ BBQ flavors. Ingredients: Beef, water, sugar, less than 2% salt, soy sauce powder (wheat, soybean, salt), flavoring monosodium glutamate sodium erythorbate, sodium nitrate. S.R.P.: (1-oz. stick) $1.29; (3-package) $5.99

America’s 1 Cordial #

Roca Dark

Brown & Haley, Tacoma, Wash. www.brown-haley.com (253) 620-3085

The makers of a variety of Roca flavors have introduced a dark chocolate option. The confection features the company’s signature nuts on the inside, which accentuates the flavor. And, like all of Roca’s other products, Roca Dark is all-natural. Ingredients: Sugar, butter (cream, salt), unsweetened chocolate processed with alkali, palm olein oil, almonds, cocoa butter, milk fat, cocoa processed with alkali, soy lecithin (emulsifier), and vanilla. Contains tree nuts, milk products and soy. S.R.P.: (4.6-oz.) $3.99; (9-oz.) $5.99 www.retailconfectioner.com

FINE FRUIT & CHOCOLATE SINCE 1948 www.queenannecandy.com

1-888-821-8452 November 2011 RETAIL CONFECTIONER RC29

New Products

Editor’s Choice Designer Donuts Choclatique, Los Angeles www.Choclatique.com (310) 479-3849 Hand-made chocolate truffles that look and taste like real, miniature doughnuts; they come in just about every favorite doughnut flavor available, including: Chocolate Sprinkles, Vermont Maple Crunch and Chocolate Caramel to name a few. Ingredients: (Dark chocolate devil’s food) Private-reserve dark chocolate, prestige milk chocolate, white chocolate, brownie crumbs, walnuts, sugar and cocoa powder. S.R.P.: (15 pieces) $35.00 — Crystal Lindell

FunkyChunky Gracious Gifts, Inc., Edina, Minn. www.funkychunky.com (888) IS-FUNKY (473-8659)

Dove D chocolate bar relaunch Mars Chocolate North America, Hackettstown, ackettstown, N.J. (908) 852-1000 www.mars.com

Dove Chocolate bars soon will feature a wider size, more chocolate, and a new chocolate mould design — all at the same price point as before. Beginning in January 2012, Dove Silky Smooth Milk Chocolate Singles and Dove Silky Smooth Dark Chocolate Singles will come in a re-designed Dove Chocolate Singles Bar that features a 10% increased weight and a more pleasing chocolate mould design. Mars also hopes the new size as well as new graphics will mean improved shelf impact, resulting in reduced find time for consumers on the go. Ingredients: (Milk Chocolate) Milk chocolate (sugar, cocoa butter, skim milk, milkfat, lactose, chocolate processed with alkali, soy lecithin, natural and artificial flavors). S.R.P.: $1.09 RC30 RETAIL CONFECTIONER November 2011

FunkyChunky’s line of Popcorn, Chip-Zel-Pop and Pretzels are now made with all-natural ingredients. The line includes: FunkyChunky Chocolate Popcorn, Chocolate Pretzels, FunkyChunky Caramel Corn, as well as Chip-Zel-Pop, which is a combination of Chip (crunchy potato chips), Zel (salty pretzel sticks) and Pop (fresh, buttery caramel corn). The potato chips, pretzels and caramel corn are then drizzled with chewy, rich caramel and a generous amount of dark, milk and white chocolates, and broken into bite-sized pieces perfect for snacking. Ingredients: (Carmel Corn) Caramel popcorn (sugar, brown sugar, corn syrup, popcorn, butter [cream, salt], almonds, cashews, pecans, salt, soybean oil, coconut oil), chocolaty drizzle (sugar, palm and palm kernel oil, cocoa powder processed with alkali, cocoa powder, milk, whey [milk], nonfat milk, buttermilk, lactose [milk], soy lecithin as an emulsifier, vanilla extract). S.R.P.: (2 oz.) $3.25; (5 oz.) $6; (8 oz.) $12.50; (12 oz.) $15; (2 lb.) $41

For more new products, visit www.retailconfectioner.com. There, you also can subscribe to our free e-newsletter, sweet & healthy, which features a “sweet of the week.”

Industry TRENDS

Small changes drive consumer chocolate trends Big players in the chocolate market make small changes to wellknown brands in safe attempts to innovate.

W

hen it comes to chocolate innovations, the big players in the market seem to constantly be coming up with new things – to drive sales as well as introduce excitement into the marketplace. This year’s launch from Hershey’s though is the most notable. The company literally added air to its chocolate to create Hershey’s Air Delights. The aerated chocolate is available as a bar or as Kisses, and the packaging features chocolate air bubbles. In a media release, Hershey says, “The smooth and creamy consistency of Hershey’s Air Delight Chocolate offers a surprisingly subtle, new way to enjoy pure Hershey’s chocolate. Its light and airy texture causes the chocolate to melt with ease over your tongue, making it the ultimate chocolate experience.”

RC32 RETAIL CONFECTIONER November 2011

Anna Lingeris, Hershey’s Air Delight spokeswoman, explains, “The masters at Hershey crafted Hershey’s Air Delight Chocolate for those looking for a unique and lasting chocolate taste experience.” The move was just the latest attempt by one of the big players in the chocolate market to add a fresh twist onto a staple product. And, the tendency to stick as closely to proven brands as possible makes sense after reviewing the top sellers in the main chocolate categories. The top selling chocolate weighing less than 3.5 oz. was Reese’s; the top selling chocolate weighing more than 3.5 oz. was M&M’s; and the top selling snack size chocolate was Snicker’s, according to data from SymphonyIRI Group, a Chicagobased market research firm. For Hershey, leveraging the power of its well-known brands meant more than just

adding air; the company also took some of its most famous treats and changed their shape. Specifically, Hershey launched a line of Hershey’s Drops, which are small pieces of Hershey’s favorites including Milk Chocolate and Cookies N’ Cream; and, they launched Reese’s Minis, with plans for Rolo Minis next year. Meanwhile, Mars was busy adding peanut butter to its Snicker’s, pretzels to its M&M’S and coconut to its 3 Musketeers. The company has had some success with coconut already, adding it to M&M’S at first temporarily and now permanently. And Mars cites data, from SymphonyIRI Group, showing that coconut is one of the fastest-growing flavors in the chocolate segment, up 9.5%. Continuing with its trend of tweaking it M&M’S, Mars also announced that it’s Dark Mint M&M’S – usually a staple of

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COMMAND DEMAND

Enhance your nutritional appeal

Boost your healthy profile Encourage a natural attraction

© 2011 Almond Board of California. All rights reserved.

Appeal to the hearts of millions

Connect with healthy consumers

Tap into a demand that’s going nuts

AND YOU THOUGHT YOU WERE JUST ADDING ALMONDS.

A lot goes in with a little almond. Start with 13 essential nutrients and a reputation for helping people maintain healthy cholesterol levels. Add in the fact that almonds are the number one nut introduced globally.* And finish with a tastier, crunchier creation that’s sure to appeal to millions in search of healthier products. Blend it all together and you’ve got the recipe for success. Good news about good fat: U.S. Dietary Guidelines recommend that the majority of your fat intake be unsaturated. One serving of almonds (28g) has 13g of unsaturated fat and only 1g of saturated fat. Scientific evidence suggests, but does not prove, that eating 1.5 ounces per day of most nuts, such as almonds, as part of a diet low in saturated fat and cholesterol may reduce the risk of heart disease. *Mintel Global New Products Database and Sterling-Rice Group, Global New Product Introductions Report, 2008.

Industry Trends

the holiday season – is becoming part of the permanent M&M’S line up. “It’s always been a great product, but we’ve only sold it at Christmas time,” explains Tim Quinn, National Sales Director for Mars. “So in January and February, our consumer hotlines go off the chart with people saying, ‘Where can I get it?’ And now, you’ll be able to get it year-round.” Like Hershey, Mars also changed the shape of a well-known product to create a fresh appeal. The company relaunched Dove Chocolate Bars, which now feature fresh graphics, and a wider size – with 11% increased weight for the same price. “We flatten the bar a little bit and then made two rows, so it’s still breakable and you can share or just eat it slowly, but it really shows a much, much larger presence,” Quinn says. Mars also launched Dove chocolatecovered raisins and Dove chocolatecovered peanuts. “It’s going to be outstanding,” Quinn says. And, while Nestle’s most publicized chocolate launch this year wasn’t a tweak to one of its staple candy products, it did involve a well-known brand. The company debuted Skinny Cow candies. The line includes Dreamy Clusters, which are bite-sized treats with crunchy crisps, drenched in caramel and covered in either milk or dark chocolate; and Heavenly Crisp bars, which are wafers layered with either chocolate or peanut butter, and covered with a chocolate coating. “Confectionery is a natural extension for Skinny Cow. We have created a delicious, low-calorie range of treats in satisfying portion sizes for consumers who want to enjoy the sweeter things in life without compromise,” explains Tricia Bowles, spokeswoman for Nestlé USA, Confections & Snacks Division As long as shoppers gravitate to what they know — and like — the major players in the chocolate market will no doubt continue to promote brands that already have a reputation for success. RC34 RETAIL CONFECTIONER November 2011

Top 5 Chocolate Candy Boxes / Bags or Bars weighing less than 3.5 oz.* (Latest 52 weeks ending Sep. 4, 2011) Dollar Sales

Dollar Sales %

Dollar Share of Type

Unit Sales

(in millions)

Chg. Vs. Yr. Ago

Chg. Vs. Yr. Ago

(in millions)

Rank

Brands

1.

Reese’s

$409.7

12.25

0.5

363.7

2.

Snicker’s

$406.4

17.47

1.07

420.5

3.

M&M’s

$401.4

9.94

0.22

398.7

4.

Hershey’s

$254.4

1.88

-0.51

262

5.

Kit Kat

$204.4

14.07

0.35

199.1

Total, including brands not shown

$3,049.7

8.07

-

3,031.2

Top 5 Chocolate Candy Boxes / Bags or Bars weighing greater than 3.5 oz.* (Latest 52 weeks ending Sep. 4, 2011) Dollar Sales

Dollar Sales %

Dollar Share of Type

Unit Sales

(in millions)

Chg. Vs. Yr. Ago

Chg. Vs. Yr. Ago

(in millions)

M&M’S

$346.5

4.78

-0.05

101.6

2.

Hershey’s

$201.7

0.95

-0.33

80.8

3.

Reese’s

$136.9

19.03

0.64

44.8

4.

Hershey’s Kisses

$101.5

1.68

-0.14

28.8

5.

Lindt Lindor

$84.5

16.83

0.34

26.2

Total, including brands not shown

$2,490.3

5.13

-

971.9

Rank

Brands

1.

Top 5 Chocolate Candy Snack Size* (Latest 52 weeks ending Sep. 4, 2011) Dollar Sales

Dollar Sales %

Dollar Share of Type

Unit Sales

(in millions)

Chg. Vs. Yr. Ago

Chg. Vs. Yr. Ago

(in millions)

Rank

Brands

1.

Snicker’s

$95.3

16.68

1.19

46.6

2.

Reese’s

$89.4

2.66

-0.56

45.6

3.

Nestle Butterfinger

$49.3

7.25

0.02

27

4.

All Hershey’s Products

$48.3

1.95

-0.36

6.6

5.

M&M’S

$43.8

-11.74

-1.39

19.1

-

307.2

Total, including brands not shown

$667.6

6.97

*All charts: Total US FDMxC (Supermarkets, Drugstores, Gas/C-Stores and Mass Market retailers excluding Wal-Mart). Source: Symphony/IRI Group, a Chicago-based market research firm.

www.retailconfectioner.com

Retailer Profile

Sweet

Catch

Bass Pro Shops, the world’s largest outdoor sports retailer, etailer, understands that hunting and fishing aficionados also have a sweet tooth. Amidst gun and archery ranges, stocked rivers and fish tanks as well as hundreds of stuffed game, shoppers find candy and snacks — the perfect impulse buy. By Bernard Pacyniak

I

t’s hard for a newcomer not to be overwhelmed when he or she first sets foot in a Bass Pro Shops (BPS) Outdoor World store. Beginning with the grand timber- and rock-lined entrance — typically featuring some kind of cascading water fall — shoppers are treated to a local wildlife safari, a combination of Disney entertainment and outdoorsy retail extravaganza that just doesn’t stop. With 55 stores scattered across 26 states, and store sizes ranging from 42,000 sq. ft. to

RC36 RETAIL CONFECTIONER November 2011

300, 000 sq. ft., BPS Outdoor World shops are a virtual paradise for every wannabe Grizzly Adams or Annie Oakley. But founder Johnny Morris, who can trace his beginnings to an 8-foot rack in his father’s liquor store in Springfield, Mo., never underestimated the need for fuel (personal fortification, that is) while fishing. Naturally, the ubiquitous outdoorsman’s snack, beef jerky, was always ready at the asking, be it at his dad’s Brown Derby spirits shop or

At a Glance Bass Pro Shops Headquarters: Springfield, Mo. Employees: 18,000 Retail stores: 55 Sales: $3.65 billion (Forbes magazine estimate for 2009) Founder: Johnny Morris Website: www.basspro.com

www.retailconfectioner.com

Retailer Profile

Morris’ first Outdoor World retail shop. And, as Larry Whiteley, BPS’s communication manager, points out, sweet as well as savory snacks were always part of the wild mix at Outdoor World. “Since we opened our first store in Springfield in 1984, we recognized the need to give our customers something to snack on while taking in all of the exhibits and activities,” he says. It’s no surprise then, that the company has — amidst giant aquarium tanks, gun and archery ranges, swiftflowing rivers with live native fish, and hundreds of stuffed wild animals — placed candies and snacks within easy reach of the shopper. “We dedicate every other register for immediate consumable treats such as candy bars, salty snacks, beef jerky,” Whiteley says. “Additionally, our store design teams have created lots of unique and nostalgic displays where we can really stack out candy, jerky, and salty

RC38 RETAIL CONFECTIONER November 2011

Shoppers to Bass Pro Shops are most likely to find the company’s private-label beef jerky products scattered throughout the store, be it at cash registers or at the General Store, where a broad range of food products are sold.

snacks. These include wagons, carts, and barrels. “Moreover, we have a dedicated specialty food section located within our gift department that features an array of immediate, as well as future consumable items, including baking goods, batters, sauces, jams and soups,” he continues. “Many of our stores also include a fudge counter where fudge is made fresh daily.”

As a result, candies and snacks represent the largest segment of impulse sales at BPS retail outlets. Whiteley cites two reasons for the demand: First, the unique nature of the product offering inspires a fair amount of impulse purchasing. Additionally, because of the nature of stores, enormous selection and a theatre-like environment, the customer visits tend to be quite lengthy, “which inspires a certain amount of needbased snacking.” Finally, the company ensures that all registers and register-driven aisles are loaded with candy, jerky, and plenty of salty snacks. And, while beef jerky ranks high amongst all snacks sold, BPS’s privatelabel line of bagged candies runs neck and neck with the traditional manly chew. Private-label candy and snack sales, in fact, comprise the largest segment of all confections sold through the 56 stores. Private label — packaged under the Uncle Buck’s logo — plays a significant role in BPS’s candy and snacks makeup, says Whiteley. “Uncle Buck was actually a real person,” he adds, noting that it was Throughout Bass Pro Shops, one can find several varieties va of nostalgic candies, such as circus Buck — Morris’ real uncle peanuts, hard candies, divinity fudge, pecan logs — who inspired a love of and brittle under the company’s Uncle Buck’s brand. fishing in BPS’s founder. www.retailconfectioner.com

Many of the Bass Pro Shops offer fudge made onsite, enhancing impulse sales while contributing to the theatre atmosphere and nostalgic experience.

THE FUTURE OF SWEETS The world’s leading trade show for the confectionery industry

Cologne, 1/29–2/1/2012 That’s not to say that BPS doesn’t carry other confections as well. The company offers a broad range of nostalgic candies, such as divinity fudge, pecan logs, circus peanuts, hard candy, and brittle as well as nostalgic national brand candies such as Valo Milk, Clark Bars, Cow Tails, and Necco wafers, which can often be found in the company’s “General Store” section within many of the BPS stores. As expected, seasonal promotions also play a role at BPS “While it is not a huge part of what we offer, we do deliver giftable items at Christmas and Father’s Day, items ranging from nostalgic tins of caramel corn to sauce and salsa gift packs, cocoa and baking mixes,” Whiteley says. “Plus, we really have a fun array of Christmasthemed items in our Santa’s Wonderland area. Additionally, we will flow seasonally appropriate candies such as jelly beans in spring, saltwater taffy in the summer, candy corn in the fall, and assorted Christmas candies in December.” To emphasize the experience of shopping at BPS, the company also provides a broad range of events at each store, ranging from fly fishing lessons and instructions on how to use a GPS system to guest appearances by professional anglers and hunters and assorted familythemed promotions, such as an Easter egg hunt. As Whiteley asserts, “Family and children are very important to us. We look for opportunities to teach them our love of the outdoors by creating several familyfriendly events each year. These include a www.retailconfectioner.com

www.ism-cologne.com

arallel: Four days in p logne ProSweets Co

The only thing that‘s old about ISM is its presentation of everything that‘s new. All the trends, all the themes, all the innovations: The world‘s biggest confectionery trade show will give a boost to your business as well!

on ticket online Buy your admissi to 35%! now and save up Your direct contact: t Phone +1 773-326 9922 • Fax +1 773 714 -0063 Koelnmesse, Inc. 8700 W. Bryn Mawr Ave, Ste. 640N Chicago, IL 60631 [email protected] www.koelnmessenafta.com

November 2011 RETAIL CONFECTIONER RC39

Retailer Profile

family summer camp, which is a fun way to expose families to camping, fishing, hiking, and all things outdoors, including S’mores making. During this event, we give away tens of thousands of S’mores.

Gift packs, featuring dried fruit and nuts, are also available to mail-order shoppers online.

“At Halloween we offer a safe, fun trick-or-treat experience complete with free photo-ops with the Great Pumpkin,” he adds. “Kids dress in costume and trick or treat throughout the store. Santa’s Wonderland, our largest store experience, features several thousand square feet of Christmas activities, featuring a free 4x6 photo with Santa Claus. Free cookies and cocoa are a key element of this experience.” Although gifting items don’t play a major role in candy and snack sales within the retail environment, they are a factor in the company’s mail-order sales, be it via catalogue or on-line, particularly during seasonal time slots. Given that BPS’s growth initially stemmed from its mail-order catalogue business first, the company continues to emphasize that segment of the business as well. A glance at

the company’s website reveals a broad range of individual and gift snack items. But despite a sizeable selection of candy and snacks available in retail and mail-order, BPS does not have a dedicated candy/snack buyer. As Whiteley says, “We have one buyer for all food. We are a one-stop shop.” New products, which Whiteley says are key to driving growth for candy and snack sales, are introduced via samplings and pricing promotions. The company also recognizes that there are opportunities for its line of private-label products beyond BPS outlets. “To date, we, along with our distribution partners, have had success selling Uncle Buck’s beef jerky and snack sticks to convenience stores and grocery chains,” say Whiteley. Clearly, shoppers and visitors to BPS have bought into the company’s bait and sweet philosophy.

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RC40 RETAIL CONFECTIONER November 2011

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‘Giving back with chocolate’ Brookside Foods is recognizing unsung heroes with a sweet reward — chocolate. From now through Nov. 6, Brookside’s team of traveling “Super Agents” will honor hard-working volunteers and organizations as part of the “Giving Back with Chocolate” U.S. coast-to-coast tour. Throughout the tour, the company also will surprise consumers who volunteer their time with random acts of kindness – be it by picking up their tab for groceries or gas, or stopping by a deserving local charity to make a donation. The tour began Oct. 1 in New York City, and will make its way across the country with stops in Philadelphia, Washington D.C., Baltimore, San Diego and Los Angeles, as well as additional markets along the way. Throughout the journey, Brookside will be offering samples of their Dark Chocolate Super Fruits product line - real fruit juice pieces dipped in pure dark chocolate, a natural source of flavanol antioxidants. Included will be Dark Chocolate Açai with Blueberry, Dark Chocolate Pomegranate, and new Dark Chocolate Goji with Raspberry. But the company isn’t stopping with candy. Consumers also can go to www.brooksidefoods.com and enter the “Giving Back with Chocolate” sweepstakes for the chance to win $15,000 to be donated to the charity of their choice, or to keep as a reward for themselves. For more information, visit www.brooksidefoods.com.

Top 5 Licorice Brands (Latest 52 weeks ending September 4, 2011) Brands

A candy ‘Situation’ A Las Vegas candy shop has quite “The Situation” on it’s hands. Mike Sorrentino, a.k.a. “The Situation,” has launched his very own Sugar Factory Couture Pop at Sugar Factory inside Paris Las Vegas. The “Jersey Shore” star was the first man to design a haute lollipop, joining the ranks of Britney Spears, Kim Kardashian, Nicole Scherzinger, The Pussycat Dolls and Mel B. “I am very honored and excited to have my own Sugar Factory Couture lollipop,” he says. “And also excited that I am the first guy with all these gorgeous ladies. The new lollipop’s design showcases Sorrentino’s love of his Italian heritage, featuring the red, white and green colors of the Italian national flag. “The Situation” Signature Couture Pop will be available for sale at all Sugar Factory retail stores and online at www. sugarfactory.com, for $25.

RC42 RETAIL CONFECTIONER November 2011

Dollar Sales Dollar Sales (in millions) % Chg. Vs. Yr. Ago

1. Twizzlers 2. Red Vines 3. Twizzlers pull n’ peel 4. Good & Plenty 5. Twizzlers Nibs Total, including brands not shown:

$182.2 $48 $27.1 $23.2 $13.3

8.16 9.43 8.15 -12.42 7.05

Dollar Share of Type Chg. Vs. Yr. Ago 51.21 13.46 7.61 6.52 3.74

$355.8

6.61

100

Unit Sales (in millions)

204.6

100.5 25.1 14.5 17.7 7.7

Total US FDMxC (Supermarkets, Drugstores, Gas/C-Stores and Mass Market retailers excluding Wal-Mart). In addition to excluding Wal-Mart, the FDMxC data also does not include sales at Club Stores or Liquor Stores. Source: SymphonyIRI Group, a Chicago-based market research firm.

Caught on the Web Find the latest in new products, promotions, commercials, games and other interactive resources on these clever URLs, and check out the next issue of Retail Confectioner for more websites worth visiting.

www.maltesers.com

http://starburst.com

www.retailconfectioner.com

Interpack NACS C O VR EE RVAI EGWE

The 2011 NACS Show

was held Oct.1- 4 at McCormick Place in Chicago. More than 22,300 attendees were at this year’s National Association of Convenience Stores (NACS) Show, including a record number of international attendees, who came from 58 countries. The show targets convenience store owners, with exhibits from confectionery, tobacco and beverage companies, among others.

‘Tis the season for convenience stores

C

hristmas candy and chocolate Easter bunnies aren’t just for classroom parties and hors d’oeuvres any more. As more consumers reach for single-serving seasonal treats, the big players in the chocolate world are adjusting their offerings and finding new sales avenues in convenience stores. For proof, look no further than Mars and Hershey’s booths at the NACS Show. Specifically, Mars expanded its 2012 seasonal lineup for the retail channel, citing data showing that the seasonal chocolate immediate consumption segment has grown 26% consum year-to-date in sales. year-to Recognizing this trend, Mars plans to introduce a variety of treats ideal for the Re c-store consumer that will include re-launching its singles shapes portfolio, including c-stor Snickers Eggs, Snickers Peanut Butter Eggs and Milky Way Simply Caramel Bunnies, all Snick of which are 1.1 ounces. Meanwhile, Hershey pushed its seasonal line at the show full-size Easter Bunny, dressed in a Reese’s with a fu T-Shirt and handing out Reece’s Easterthemed Reese’s Peanut Butter Cups. The company claims to be the leader in Easter candy sales, with its Reese & Cadbury Eggs bringing more dollars to the category than the next d 100 ranked Easter items. It’s a statistic 10 Hershey no doubt hopes will help the He company convince more convenience com stores to carry their seasonal candies. stor

44 CANDY INDUSTRY November 2011

www.retailconfectioner.com

Editor’s Choice

SWEET NEW PRODUCTS

Nature Valley Fruit Twists General Mills, Golden Valley, Minn. www.generalmillsconvenience.com 800-767-5404

General Mills has put a fun twist on snacking with the introduction of Natural Valley Fruit Twists, developed exclusively for the convenience channel. An ideal fit for the candy or snack aisle, Nature Valley Fruit Twists are available in cherry and d strawberry varieties. Each 1.27-oz. package delivers two servings of fruit, and is 100% natural and gluten-free. S.R.P.: (1.27-oz. stick) $1.39

Ice Breakers Duo The Hershey Co., Hershey, Pa. www.ice-breakers.com (800) 468-1714

Mentos UP2U

Perfetti Van Melle USA, Erlanger, Ky. www.perfettivanmelle.com (800) 283-5988

Mentos has introduced new gum package that allows consumers to change their mind. UP2U features two flavors and come in four verities, including: Sweet Mint/Bubble Fresh, Daylight Mint/Midnight Mint, Berry Watermelon/Fresh Mint and Mandarin Strawberry/Spearmint. S.R.P.: (14 pieces) $1.49

Warheads Sour Twists Impact Confections, Littleton, Colo. www.impactconfections.com/ (303) 626-2222

The latest Warheads product is pretty twisted. Sour Twists feature a twisted extruded chewy candy with a fruity center and just-right sour coating. Three delicious flavors of lemon, green apple, and watermelon are twirled in every twist, which can be eaten as one, or pulled apart and enjoyed one flavor at a time. S.R.P.: (2 oz. package) $.99 to $1.29. www.retailconfectioner.com

Ice Breaker’s latest treat combines two flavor experiences in one mint, for a “fruit + cool” flavor. Specifically, one side of the mint is fruit-flavored and textured, while the other is a cooling and smooth with flavor crystals. The confection comes in n either Strawberry or Raspberry flavors and will be available in April. S.R.P.: N/A

3 Musketeers Coconut Mars Chocolate North America, Hackettstown, N.J. (908) 852-1000 www.mars.com

Following the success of its M&M’s Coconut product, Mars has introduced the flavor to another fan favorite, 3 Musketeers. Coconut lovers will enjoy the experience of the flavor in the signature light and fluffy chocolate nougat wrapped in rich, milk chocolate. S.R.P.: (1.49-oz.) $1.09

DeMets Hazelnut Turtle

DeMet’s Candy Co., Stamford, Conn. www.demetscandy.com/ (203) 329-4545

DeMets has enhanced its signature Turtle by adding hazelnut, which shines without drastically changing the Turtle’s classic milk chocolate and caramel flavor profile. Also is available in holiday packaging. S.R.P.: (2.9-oz.) $2.49, (6.4-oz.) $4.79 November 2011 CANDY INDUSTRY 45

NACS Coverage

Catalina announces expansion to convenience stores

O

n-site coupons are about to become even more convenient — literally. Catalina, which makes printers that issue coupons right at the store, announced at the National Association of Convenience Stores (NACS) convention that it is expanding into convenience stores. The move follows a successful pilot program with technology partner, Outsite Networks. Specifically, Catalina has been piloting C-store brand building programs over the past year in nearly 500 stores using a system specially designed for the channel. It features a consumer-facing printer that can rapidly issue relevant promotional messages and coupon offers directly to consumers based on their individual purchase behavior. “The convenience channel is an ideal growth area for Catalina and we look forward to a very successful rollout,” says Ed Kuehnle, Catalina Marketing Services president. So far, consumers have proven to be highly responsive to the program and brands are seeing results as they attempt to generate trial for new products and volume growth for established ones. Meanwhile, retailers are seeing increased trips and sales driven by the promotion programs sourced and designed by Catalina’s team of brand consultants. Joe Vonder Haar, managing partner of iSee Store Innovations, says the system is fully compatible with all scanner-based C-store POS systems. For more information, visit www.catalinamarketing.com.

SWEET STATS:

22,300 Number of attendees at this year’s NACS show

1.5% Increase over last year’s attendance of 22,312.

58 Number of countries the attendees came from

387,000 Size of the exposition floor (sq. ft.)

1,333 Number of companies that exhibited on that floor

324

160 million

Number of new companies at this year’s show.

Number of customers the U.S. convenience store industry serves daily.

6,750 Number of people who attended one of the educational workshops

72 tons Amount of leftover product from exhibitors that was donated to two charitable organizations: the Greater Chicago Food Depository, a local food bank, and Operation Interdependence, which provides goods to the military troops and their families.

146,341

Number of convenience stores in the United States. That works out to one for every 2,100 people.

$575 billion

Amount of sales those convenience stores see annually — similar to competing channels often thought of to be much greater, including restaurants ($583 billion), supermarkets ($563 billion) and drug stores ($222 billion, not including prescriptions).

Oct. 7-10 Dates for the 2012 NACS Show, which is slated to be held in Las Vegas. *All data provided by NACS

46 CANDY INDUSTRY November 2011

www.retailconfectioner.com

FROM COCOA BEAN TO CHOCOLATE

Royal Duyvis Wiener B.V., P.O. Box 10, 1540 AA Koog a/d Zaan, The Netherlands, T. +31 75 6 126 126, F. +31 75 6 158 377, [email protected], www.duyviswiener.com F.B. Lehmann GmbH, Daimlerstraße 12, 73431 Aalen, Germany, T. +49 73615620, F. +49 7361 56260, [email protected], www.fblehmann.de

Ingredient

TECH NOLOGY

Technology driving gum base developments Gum manufacturers now have the tools to address functionality, health, flavor fusion and medicinal opportunities.

G

um base suppliers continue to respond to developments within the chewing gum market, many of which reflect trends applicable to a variety of food sectors, such as health and added value. Currently, the chewing gum sector has three drivers: functional gums; filled gums; and “fusion” gums, which offer consumers a new flavor experience by combining flavors together in one piece, says Montse Cirera, marketing and business development manager for Cafosa. These trends should continue to evolve during the coming years, particularly as gum manufacturers focus on introducing healthy ingredients that offer consumers even more benefits, she says. One of the strongest trends to emerge during the past three to four years involves filled gums for adults, Cirera says. “By adapting the flavors, the packaging and the sensorial profile, the filled gums appeal to the adult market,” she adds. The success of this approach correlates directly with the number of new products launched within the category: In only two years, more than 200 products made their debut. “Our gum bases are playing a very important role on the new types of chewing

Photo courtesy of Cafosa.

48 CANDY INDUSTRY November 2011

gum as they are more ‘technologically’ dependent,” Cirera says. In the case of filled gums and “fusion” gums, the ingredients used in the gum base are selected to affect the final performance of the gum not only during production, but during its entire product shelf life as well. Selecting the appropriate application matters, be it to improve the physical properties of the gum base (elongation and elasticity) thereby streamlining productivity of the gum on a filled gum line, or, as in the case of the ‘fusion’ gum, choosing ingredients to help control the release of the aromatic substances, she explains. Even with the emergence of “fusion” gums, the popularity of functional gums remains unabated. Cafosa offers All in Gum, a directly compressible powder gum that streamlines development of a broad range of compressible/functional chewing gums. Medicated chewing gums also are beginning to have an impact within this category. One of its innovations, Healthy in Gum, was developed specifically for the pharmaceutical market: As an excipient or carrier, this directly compressible powder gum contains a mix of ingredients that enables a pharmaceutical company to add active principles easily. This provides a new means of delivering drugs for consumers and signals yet another niche within the chewing gum sector. Moreover, given the ongoing technological breakthroughs inherent in gum bases, such as removable and degradable chewing gum, the category remains both vibrant and exciting.

Gum waste resolved Singapore may have to change its laws about chewing gum. The city state prohibits the sale of chewing gum as a result of excessive waste found on sidewalks and in rapid transit stations. Revolymer, however, has introduced Rev7, the world’s first and only removable and degradable chewing gum uniquely formulated to discourage waste. The UKbased company claims the gum disintegrates into a fine powder using mild water and agitation, which motivates “social responsibility and heightens environmental responsibility among consumers.” But does it taste like chewing gum? Here, too, the company says that its Rev7 has incredible longlasting flavor (it comes in peppermint, spearmint and cinnamon varieties) and provides an exceptional chew that does not get hard or stiff for the duration of the chewing experience. According to Revolymer, its innovative proprietary approach involving the formulation of novel polymers allows it to accomplish this breakthrough. For more information, visit www.revolymer.com

www.candyindustry.com

Destination: ECRM helps with ‘Annual Candy Planning’ This year’s ECRM Annual Candy Planning held Sept. 18-21 at the Orlando World Center Marriott Resort in Orlando, Fla., featured a slew of new products. For more information, visit www.ecrm.marketgate.com.

C

andy Industry co-sponsored with ECRM a Buyer’s Choice award at this year’s show. Buyers were able to turn in write-in ballots with their favorite products in three different categories, including: Best Chocolate Product, Best Non-Chocolate and Best Novelty. Candy Industry gives its warmest congratulations to the winners, which are listed below.

BEST NEW CHOCOLATE CANDY

Chocolate-Covered Licorice Lucky Country, Inc., Lincolnton, N.C. www.lucky-country.com (828) 428-8313 Lucky Country’s new chocolate-covered licorice features the company’s signature Aussie Style Soft Gourmet licorice covered in chocolate. Dark chocolate coats the black licorice, while milk chocolate coats the strawberry licorice, making for two delicious treats. S.R.P.: (4.2-oz. bag) $2.99; (1-lb. club bag) $9.99

BEST NEW NOVELTY CANDY

BEST NEW NON-CHOCOLATE CANDY

Sour Smog Balls

Cream Swirl Lollipop

Candy Dynamics, Carmel, Ind. www.toxicWasteCandy.com, (888) 400-7606 This soft and sour jaw breaker is the latest creation for the Toxic Waste candy line. They’re a crunch candy with a sour, chewy center. S.R.P.: (3-oz.) $1.29 to $1.99

Original Gourmet, Salem, N.H. www.ogfc.net (603) 894-1200 Original Gourmet’s cream swirl lollipops are made with real cream and come in a variety of flavor combinations, such as Strawberry Shortcake, Cherry Cheesecake, Orange Creamsicle, Butterscotch Sundae, Lemon Meringue Pie, Apple Pie Ala Mode, Mocha Latte, Root Beer Float, Peaches and Cream, Blueberries and Cream and Cinnamon Bun. S.R.P.: N/A

Top items scanned by buyers at the event: 1 2 3 4 5

Milk chocolate Coconut Patties Bar 2-oz. Tangy Zangy’s Sour Wild Fruit Twist Sticks 5.64-oz.

sia Confections Anastasia

Gimbal’s Sour Lovers 3-oz., 12ct.

’s Fine Candies Gimbal’s

Slush Puppie Dip-n-Lik 12-ct.

Koko’s Confectionery

Star Wars Lightsaber-assorted .8-oz.

Galerie

www.candyindustry.com

Morris National, Inc.

November 2011 CANDY INDUSTRY 49

News & Analysis

Agencies launch African Cocoa Initiative

T

hree well-known agencies are joining forces to invest in a new sustainable cocoa program in West Africa. The World Cocoa Foundation (WCF), the U.S. Agency for International Development (USAID) and the Sustainable Trade Initiative (IDH) have launched the African Cocoa Initiative (WCF/ACI), a Global Development Alliance partnership. The five-year, $13.5-million WCF/ ACI program will target Côte d’Ivoire, Ghana, Cameroon and Nigeria and address four critical areas in those cocoa-producing countries. Specifically, it will: foster public-private cooperative investments in cocoa and agriculture; emphasize improving the genetic quality and productivity of the cocoa varieties under cultivation; expand farmer education and training programs; and work to improve the agriculture input supply chains that serve the farmers. Through WCF/ACI, the partner institutions are donating funding and expertise to improve farmer incomes, alleviate poverty, strengthen government and regional institutions, and help

advance food security throughout the region. The program ties into the U.S. government’s Feed the Future Initiative, which aims to increase agricultural productivity and the economic well-being of smallholder farmers. Each of the nations targeted have endorsed WCF/ACI and are committing their agencies to participating and investing in its sponsored activities. Additionally, important international organizations also will be contributing to its implementaAs one of its goals, the new $13.5-million African Cocoa Initiative will seek to expand farmer tion, including the International education and training programs in Cote Institute of Tropical Agriculture d’Ivorie, Ghana, Cameroon and Nigeria. (IITA), the Alliance of Cocoa Producing Countries (COPAL) and the companies ADM Cocoa, Barry Callebaut, IFDC. All three will play a key role in providBlommer Chocolate Co., Cargill, ing expertise in genetics, cocoa policy and Continaf BV, Ferrero, Guittard Chocolate fertilizers, respectively, to the program. Co., The Hershey Co., Kraft Foods, The program will be headquartered at Lindt & Sprüngli, Nestlé, and Olam WCF’s office in Accra, Ghana to support International Ltd. activities across the region. For more information, visit Private sector funding for this www.worldcocoa.org. program comes from WCF member

F.B. Lehmann welcomes guests to ‘Open House’ On Oct. 12-14, F.B. Lehmann GmbH welcomed customers and guests to its “Open House” in Aalen, Germany, as a means of providing them an update on new and existing technologies. The move was also intended to demonstrate the synergies that have developed as a result of the merger between F.B. Lehmann and Royal Duyvis Wiener in 2010. Visitors to the F.B. Lehmann headquarters and production area saw the company’s new integrated 2&5-roll chocolate refiner, which was introduced during Interpack earlier this year as well as the company’s

50 RETAIL CONFECTIONER November 2011

latest technology for grinding cocoa powder. In addition, the company emphasized its ability to supply a complete cocoa production line, which includes Lehmann cocoa bean roasting, sterilizing and winnowing technologies. Such lines have been already delivered to well-known chocolate producers in Europe and others are in production for other customers. F.B. Lehmann managing directors Solvej Schenk and Volker Kaul, were both “very satisfied” with the the success of the

F.B. Lehmann’s 2&5-roll refiner, which was on display during the company’s “Open House” last month.

company’s “Open House,” which also showcased the close working relationship between its staff and the Royal Duyvis Wiener crew.

www.retailconfectioner.com

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FOR S A LE

HELP WANTED New Zealand's leading confectionary retailer and wholesale importer is seeking an export agency based on the west coast of the USA or Canada who can:

Call Bob at 330-877-3322 or email [email protected]

CONSULTING

• Operate accounts with major & minor manufacturers • Consolidate product for loading into containers • Manage shipping and documentation

Nationwide pick up since 1993 Call Jon (954) 649-7857 e-mail: [email protected] web www.whamcloseoutfoods.com

Must be well-established with a proven trading history and references.

For more information, please contact: [email protected] www.remarkablesweetshop.co.nz

ww w.c a ndyi ndust r y. co m CI1110Wham.indd 1

52 CANDY INDUSTRY November 2011

10/29/10 3:48 PM

www.candyindustry.com

To place your classified ad in Candy Industry call Diana Rotman at 847-405-4116 Fax: 248-502-9083 E-mail: [email protected] EQUIPMENT FOR SALE

CONTRACT MANUFACTURING

Introducing the NEW Model AC 1000 Caramel Cutter

Costas Candies Since 1922

Co-Manufacturing & Private Label Providers

Heavily built power unit for small and medium size shops.

B ridger Metal, LLC www.bridgermetal.com [email protected] • (406) 580-7984

We specialize in cold extrusion and enrobing of all types of items including Sandwich Bars, Nutrition Bars, Candy Bars and Easter Eggs. • • •

25+ yrs. Formulation Experience SMALL Minimum Production Requirements Enrobing of both Compound and Tempered Chocolates.

Contact // Bob Stahl or Ryan Stahl at: 1-800-507-1008 [email protected] [email protected] 130 West Bacon St. Pottsville, PA 17901

CANDY INDUSTRY (ISSN 0745-1032) is published 12 times annually, monthly, by BNP Media II, L.L.C., 2401 W. Big Beaver Rd., Suite 700, Troy, MI 48084-3333. Telephone: (248) 362-3700, Fax: (248) 362-0317 No charge for subscriptions to qualified individuals. Annual rate for subscriptions to nonqualified individuals in the U.S.A.: $115.00 USD. Annual rate for subscriptions to nonqualified individuals in Canada: $149.00 USD (includes GST & postage); all other countries: $165.00 (int’l mail) payable in U.S. funds. Printed in the U.S.A. Copyright 2011, by BNP Media II, L.L.C. All rights reserved. The contents of this publication may not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for product claims and representations. Periodicals Postage Paid at Troy, MI and at additional mailing offices. POSTMASTER: Send address changes to: CANDY INDUSTRY, P.O. Box 1080, Skokie, IL 60076. Canada Post: Publications Mail Agreement #40612608. GST account: 131263923. Send returns (Canada) to Pitney Bowes, P.O.Box 25542, London, ON, N6C 6B2. Change of address: Send old address label along with new address to CANDY INDUSTRY, P.O. Box 1080, Skokie, IL 60076. For single copies or back issues: contact Ann Kalb at (248) 244-6499 or [email protected]

KOSHER Third Party Audited

AD INDEX ADM Cocoa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.adm.com Almond Board of California. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 . . . . . . . . . . . . . . . . . . . . . . . . . . www.almondboard.com American Air Filter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .www.aafintl.com Blommer Chocolate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.blommer.com Buhler. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 . . . . . . . . . . . . . . . . . . . . . . . . . . . www.buhlergroup.com Cafosa Gum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.cafosa.com Candy Dynamics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.candy.com Dumoulin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.dumoulin.fr ECRM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 . . . . . . . . . . . . . . . . . . . . . . .www.ecrm.marketgate.com ISM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 . . . . . . . . . . . . . . . . . . . . . . . . . . . www.ism-cologne.com Lindt & Sprungli . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .www.LindtUSA.com Lucky Country. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 . . . . . . . . . . . . . . . . . . . . . . . . . . www.lucky-country.com Ladco/MacIntyre Chocolate System. . . . . . . . . . . . . . . . . . . . . .11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.macintyre.co.uk National Confectioners Assn. . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 . . . . . . . . . . . . . . . . . . www.sweetsandsnacksexpo.com Original Gourmet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.ogfc.net Peter’s Chocolate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 . . . . . . . . . . . . . . . . . . . . . . . .www.peterschocolate.com

Also publishers of Beverage Industry, BrandPackaging, Dairy Foods, Flexible Packaging, Food & Beverage Packaging, Food Engineering, Industria Alimenticia, The National Provisioner, Prepared Foods, Private Label Buyer, Refrigerated & Frozen Foods Retailer and Snack Food & Wholesale Bakery.

Petzholdt Heidenauer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 . . . . . . . . . . . . . . . . . . . . . www.petzholdt-heidenauer.de Prosweets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 . . . . . . . . . . . . . . . . . . . . . www.prosweets-cologne.com Duyvis Wiener . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.duyviswiener.nl Russell Stover Candies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 . . . . . . . . . . . . . . . . . . . . . . . . . . . www.russellstover.com Savage Brothers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.savagebros.com Thermo Fisher . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.thermo.com Union Confectionery Machinery Company . . . . . . . . . . . . . . . .55 . . . . . . . . . . . . . . . . . . . . . . . . www.unionmachinery.com Wire Belt of America. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.wirebelt.com Worlds’ Finest Chocolate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,29 . . . . . . . . . . . . . . . . . . . www.worldsfinestchocolate.com

www.candyindustry.com

November March 2011 CANDY INDUSTRY 53

CANDY WRAPPER Standing Tall With two Guiness World Records to his name, Alain Roby has created as well as overseen masterpieces that elevate pastry arts to a new level.

C

hef Alain Roby has won more than 20 culinary awards, been featured on the Food Network and even served as the head pastry chef at the NFL Commissioner’s Super Bowl Party for the past 19 years. But it’s his most recent achievement that he claims as the highest honor of his career – earning The Guiness Book of World Records honors for the World’s Tallest Cooked Sugar Building and World’s Tallest Chocolate Sculpture. His sugar building was 12 ft.,10 in. tall, while his chocolate sculpture was 20 ft., 8 in. tall. Roby is the only pastry chef to hold two Guinness World Records. Among his other achievements, Roby studied and learned his culinary art in Paris from the world famous Pastry Chef Lenotre and is a certified master chef of pastry and sugar artistry. He also has been named as a permanent committee member of the Societe D’Escofier Chicago and has served as the private pastry chef to the Shah of Iran. In addition to working in London, Tokyo, New York and finally Chicago, Roby also served as the private pastry chef for the admiral of the Jeanne d’Arc cruiser — the flagship of the French Navy. Roby has won more than 20 culinary awards, including The Grand Prize Gold Medal of Paris offered by the French First Minister Medaille des Nautes and the Best of Show by the National Restaurant Association Culinary Salon 1988, in Chicago. 54 CANDY INDUSTRY November 2011

He’s worked for the Hyatt Regency Chicago for 24 years, most recently as the Senior Corporate Pastry Chef for Hyatt Hotels overseeing the pastry division for all Hyatt Hotels and Resorts. Now, he owns and runs Chef Alain Roby’s All-Chocolate Kitchen, which is in downtown Geneva, Ill., near Chicago. What did you think you would be when you grew up? I went to law school and wanted to be a notary. Name one of your favorite movies. Lawrence of Arabia with Peter O’Toole. Describe your perfect dream vacation. A cruise around the world with family. What book are you currently reading? I’m not reading at this time, the store is keeping me busy. But my favorite author is Balzac. Aside from a family member, whom would you most want to be stranded with on a deserted island? The survivor man from the Discovery Channel [Les Stroud]. What is your pet peeve? My Chihuaha Luna, she is my girl. Candy Industry: Oh! I’m sorry. Pet peeve, not pet.

Chef Alian Roby pours chocolate (top). He holds the record for the tallest chocolate Christmas tree, (bottom), which he created in Hong Kong. It stands 23-ft. tall. Photos provided by Roby.

Roby: Oh! People with no passion for their job, who are in it just for the paycheck. I’d give anything to meet: Neil Armstrong. The best piece of advice I’ve received: Reach for your dreams, life is short What excites you most about your job? Freedom of creativity and pleasing people with good food.

www.candyindustry.com

NEW, USED AND REBUILT CONFECTIONERY PROCESSING & PACKAGING MACHINERY

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48” Stainless Steel Pan with Ribs

New TINSLEY Belt Coaters 24” to 74” Tinsley Chocolate Tanks 100 to 20,000 lbs.

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Merckens—the canvas for your masterpiece. You’re more than a confectioner. You’re an artisan. A creator of candy that’s as enticing to look at as it is to taste. That’s why Merckens has been the trusted brand of chocolate and coatings for discriminating candy makers for more than 85 years. They deliver the consistency and quality artisans need to create crave-worthy works of art.

Find the inspiration for your next masterpiece by visiting us at adm.com/merckens.

For customers around the world, ADM draws on its resources—its people, products, and market perspective—to help them meet today’s consumer demands and envision tomorrow’s needs. © 2011 Archer Daniels Midland Company

1-800-MERCKENS | [email protected] | www.adm.com