By Bernard Pacyniak
Editor-in-Chief
Candy Industry

Getting fresh: Chocolate: It's on

About a week or so ago, New York City-based Packaged Facts released its latest report on chocolate: “Chocolate Market in the U.S.: Trends and Opportunities in Premium, Gourmet and Mass Chocolate Products.”
 
After reading the press release, I asked the good folks at Packaged Facts if they could send me an executive summary for review. After all, being a member of the media should have some privileges.
 
 Naturally, they agreed, knowing I’d source them for all the information provided. But before I throw out some positive numbers, let me first point out one stat that caught my eye: Per capita chocolate consumption by volume peaked at 12.6 lbs. in 2005, falling off 6.4% to 11.8 lbs. in 2009. The value of per capita consumption, however, increased 1.9% to $56.27.
 
Essentially, the American consumer is buying less chocolate, but spending more. That’s one of those good news/bad news scenarios. Actually, from my perspective, it more of a “golden opportunity” for the industry. That “gold” stems from chocolate’s upside marketability, a product that contains a broad range of positive health attributes. I believe that the potential hasn’t been fully tapped, and that’s where the industry’s challenge lies.
 
But let me toss out some other stats -- a more complete summary will appear in the September issue of Candy Industry -- and highlight some trends that the analysts at Packaged Facts have identified as growth avenues.
 
First, retail sales of chocolate topped $17.3 billion in 2009, a 2.8% jump from 2008 … and a new record. Volume was up 3.1%, but that stems in large part from increased imports, the researchers note.
 
Second, Packaged Facts predicts that sales will top $19 billion in 2014, averaging a 3% growth rate in sales.
 
Third, premium chocolate sales in 2009 ranged between $2.1 billion and $2.4 billion in 2009, accounting for 12-14% of all chocolate sales.
 
As the writers of the report emphasize, the “demand for premium chocolate will continue as a leading growth trend in the U.S. chocolate industry, especially when the economy recovers.”
 
Now, if we can only get that economic recovery out of first gear. But hey, that’s a topic for another time. Finally, just some bullet points on up-and-coming trends within the premium chocolate market:
 
 -- Craft chocolate making, sometimes referred to as craft, bean-to-bar or micro-batch chocolate
 
-- Savory-inspired flavors: everything from olive oil, bacon and cheese to curry and chipotle in bonbons and truffles
 
-- Exotic flavors: It’s about experiences, not just consumption.
 
-- Raw cacao products: a reaction to over-processed, over-engineered foods
 
-- Vegan chocolate: According to Packaged Facts, new vegan-labeled chocolate products have increased 52% per year (a 5-year CAGR) to a forecasted 32 new products in 2010 or 1% of all new product reports.
 
-- Wine-themed chocolate products: Chocolate without wine, like a day without sunshine.
 
-- Upscale chocolate candy bars: It’s not just indulgent. it’s healthier and portion-controlled.
 
-- Exotic delivery methods: Le Whif’s the trailblazer.
 
-- Beyond bars: Artisan chocolatiers are serving up “tasting tiles” and disks as a means of differentiating their products.
 
-- Extreme milk chocolate: Dark milk chocolate -- above 40% cocoa mass -- combines silkiness with less sugar, more antioxidants.
 
-- Use of alternative distribution channels: Think Tupperware parties, aka Mars’ Dove Chocolate Discoveries.

Two trends that Packaged Facts believes are beginning to wane: extreme dark chocolate and single-origin chocolates. I think there’s more play there; it’s just a matter of education, another industry challenge.
 
I know, a lot to digest, but it’s all good and healthy for you.
 
For more info about the report, visit www.packagedfacts.com.


Tic Tac partners with CancerCare

Ferrero USA’s Somerset, N.J.-based Tic Tac brand has announced the launch of its Shake, Share & Care program in support of Breast Cancer Awareness and those affected by cancer. As part of a 6-year partnership with CancerCare, an organization focused on raising awareness of the affect cancer has on people with the illness, caregivers, loved ones and the bereaved, Tic Tac has made an initial donation of $100,000. It also has created an official Facebook page to encourage fans to Shake, Share & Care by posting their kind acts in an effort to help the brand reach its goal of an additional $100,000 in funding.
 
Tic Tac will contribute additional funds on behalf of consumers who get involved in an effort to spread CancerCare's mission of helping those affected by cancer. Fans are encouraged to visit www.facebook.com/tictacusa and share their acts of caring -- for example, driving a patient to and from treatments or bringing a home-cooked meal once a week to someone with cancer. For each person who shares an act of caring, the Tic Tac brand will donate $5 to CancerCare, up to an additional $100,000.
 
 The kick-off of Shake, Share & Care also marks the introduction of the brand's limited-edition Pink Grapefruit flavor Tic Tac as part of the brand's ongoing support of CancerCare. It will be available at select drug, grocery, mass merchandiser, warehouse club and convenience stores through October.   


"We are delighted to partner with the Tic Tac brand to help raise awareness and support for individuals affected by a cancer diagnosis," says Christina Wyman, director of corporate relations at CancerCare. "Together, we hope the Shake, Share & Care program will go far in offering professional support services for anyone whose life has been affected by cancer."
Tic Tac Category Manager Noah Szporn, of Ferrero U.S.A., Inc. has expressed her excitement about the partnerhip.
 
"CancerCare is a remarkable organization, and the Tic Tac brand is thrilled to continue its support of such a great cause, Szporn says. "The Shake, Share & Care program not only raises money for a great cause, but allows consumers to share their inspiring stories to generate greater awareness of the effect cancer has on people's lives.”
 
To help bring the message of Shake, Share & Care to a broader audience,Tic Tac also was a supporting sponsor of the GBK Luxury Gift Suite in Honor of the 2010 EMMY Awards Nominees and Presenters. The suite gave celebrities and influencers the chance to upload their own acts of caring to Facebook. In addition, each celebrity who visited the suite walked by the 8x12-ft. Tic Tac wall featuring a diamond pattern made entirely out of limited-edition Pink Grapefruit and Freshmint Tic Tacs.
 
For more information about Tic Tac, visit www.tictqacusa.com. For more information about CancerCare, visit www.cancercare.org.


Hauser Chocolatier purchases Tom & Sally's Handmade Chocolates

Rudi Hauser Jr. of Hauser Chocolatier has announced his company’s purchase of Tom & Sally’s Handmade Chocolates. The acquisition, Hauser’s second in five years, closed in mid-August; Hauser has since relocated Tom & Sally’s operations to its Westerly, R.I. facility.
 
"This is a bittersweet moment, but we feel the long-term success of the company would best be served by merging the company with another well-established chocolate manufacturer," ays Tom Fegley, co-owner of Tom & Sally’s. "Tom and Sally's will be in very good hands with this second-generation, family-run, chocolate manufacturing business. Hauser has an outstanding reputation in the industry."
 
As Tom & Sally look forward to their next challenge, all employees were invited to join Hauser Chocolatier.
 
Tom and Sally's Handmade Chocolates opened for business April 29, 1989, in a storefront in downtown Brattleboro, V.T. The business expanded over the next 10 years. In 2000, Tom and Sally's consolidated its operations at 485 West River Road.
 
Tom and Sally's manufacturers high-end chocolates and novelty candies for sale mainly via the wholesale market. The company boasts thousands of accounts throughout the United States and abroad. Known for its high quality, Tom and Sally's won fourteen national awards, including "Finalist for Outstanding Confection" at the New York Fancy Food Show; the company also was named Small Business Persons of the year by the State of Vermont in 1998.
 
Most recently, the company ventured into the manufacture of 100% organic chocolates. The company's line of fourteen flavors of "100% Organic Skinny Bars" has experienced major commercial success, having been placed in the North East Region of Whole Foods Markets and Nordstrom Espresso Bars on a national basis.
 
Hauser Chocolatier is a manufacturer of fine truffles and assorted chocolates, sold wholesale through its Rhode Island facility as well as at retail through its stores in Westerly and Bethel, Conn., and online at www.hauserchocolates.com. Hauser also makes dessert sauces, chocolate dessert cups and hollow chocolate truffle shells, specializing in private label and co-manufacturing. The company has had a working relationship with Tom & Sally’s for the past 18 years, producing its famous, original Chocolate Body Paint.
 
“We have known Tom & Sally for many years and have always admired the creativity and whimsy of their products,” says Rudi Hauser, Jr., President of Hauser Chocolatier. “Tom and Sally’s product line will be a wonderful addition to ours.”


Endangered Species Chocolate names new director of finance

Indianapolis-based Endangered Species Chocolate has added a new member to its team, Director of Finance Carl Dodds, who will be responsible for managing all accounting and financial activities, with an immediate focus on implementing an enterprise resource planning (ERP) system.
 
Dodds possesses more than 25 years of experience in the areas of financial and accounting management, cash management and financial modeling analysis, and has acted as project leader for ERP implementation.
 
“Dodds’ impressive experience in managing ERP systems along with financial modeling will allow ESC to make well-informed financial management decisions quickly and accurately,” says Endangered Species CEO Curt Vander Meer.
 
Prior to joining ESC, Dodds was finance director for Diversified Systems, Inc., where he identified and developed cash forecasting, financial modeling, cash management and various reporting tools that provided timely, valuable information to decision makers within the company.
 
For more information about Endangered Species Chocolate, visit www.chocolatebar.com.


CHOCOLATE TECHNOLOGY 2008 captured worldwide interest.

CHOCOLATE TECHNOLOGY 2010 to draw world-wide attendance

ZDS invites suppliers to attend Europe’s biggest symposium on everything to do with chocolate, CHOCOLATE TECHNOLOGY 2010, to be held Dec. 7-9 at the Congress-Center Nord of KölnMesse in Cologne, Germany.
 
More than 400 participants from all over the world are expected at the event. There, they will have the opportunity to inform themselves about the newest trends and developments in chocolate production through more than 30 high-class expert presentations given by international speakers. To date, more than 40 exhibitors will feature a mix of raw material, technology and products. For the first time, a comprehensive product exhibition will give attendees an overview of the chocolate market and its newest trends and developments.


The meeting point for chocolate economy: CHOCOLATE TECHNOLOGY 2008.

In addition to discussing world-wide market trends and technological developments, themes such as “Processing High Viscosity Chocolate,” “Sustainability“ and “Carbon Footprint“ are expected. Presentations will be simultaneously translated into German, English and French.
 
The current convention program as well as all registration documents can be accessed online at www.zds-solingen.de.
 
 
 
 
 
 
 


sweet of the week: Askinosie Chocolate Hazelnut Spread

Askinosie Chocolate, a small-batch chocolate manufacturer based in Springfield, Mo., has introduced Hey, Hey, Hazelnut: a made-from-scratch chocolate hazelnut spread with direct-sourced hazelnuts from Lynden, Wash. In addition, Company Founder Shawn Askinosie travels to Mexico, Ecuador and the Philippines to work directly with farmers to source cocoa beans for the chocolate, also enabling them to profit-share with Askinosie Chocolate. This new spread can be used on anything from toast to bananas, or as a filling for pastries and cakes. To quote Chef Rick Bayless, “Don’t even dare to compare it with Nutella.” The suggested retail price is $13 per 6.5-oz. jar.
 
For more information, call 1-417-862-9900 or visit www.askinosie.com.