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"Sugar confectionery is one of those rare categories enjoyed by consumers of almost every age and demographic - it's a marketing woman's dream." So says Tracey Mattock, marketing manager at Fox's Confectionery.
And it's not just the marketeers - sales indicate that consumers' love affair with confectionery shows no signs of abating.
"The confectionery category as a whole has been flat for a fairly sustained period, but over the past year we have seen the market grow by £53m to £1.2bn [Nielsen Scantrack, January 2008]," says Herwig Vennekens, MD of gums and jellies giant, Haribo Dunhills (Pontefract).
The gums and jellies sector, which accounts for around 25% of sugar confectionery sales, has also turned in a buoyant performance in the past 12 months, with sales value up by 4.3% and volume by 3.6%, evidence of its increasing popularity.
While around 80% of children aged five to 15 enjoy eating gums and jellies, penetration levels among adults are only slightly lower, with seven out of 10 adults aged 16 to 44 and six out of 10 in the 44-64 age group buying them [ACNielsen].
"Gums and jellies consumption isn't just confined to children," says Vennekens. "They remind adults of their childhood in a positive way."
Despite the growth of sugar confectionery - also buoyed by the strong performance of chewing gum - much of the activity in the sector has centred on improving health credentials. Manufacturers have made concerted efforts to 'naturalise' products using real fruit juices as flavourings in a wide range of confectionery and launching new products with 'healthier' credentials.
In May last year, for example, Cadbury Trebor Bassett launched Maynards Wine Gums Light, which contained half the sugar and 30% less calories than a standard pack, while still boasting the same taste. Rowntree's was the fastest- growing top 20 confectionery brand of 2007, with sales up 23%, driven by the success of increased levels of real fruit juice in Rowntree's Fruit Pastilles, Fruit Gums and Jelly Tots.
Meanwhile, Haribo has responded not only in terms of NPD such as Haribo Lite, free from artificial colours, but also by reviewing existing recipes. Since 2006, the company has been removing artificial colours from its gums and jellies and by January 2008 all Haribo bags of gums & jellies produced in the UK used non-artificial colours.
"Confectionery is very much under scrutiny because of widely publicised concerns over obesity," says Vennekens. "Consumers are now looking more closely at the nutritional content of all products, and manufacturers have responded by introducing 'healthier' products."
Vennekens says 'lower in' products appeal to a certain segment of the market - mostly diet-conscious consumers - and there is definitely a role for 'healthier' confectionery products, but that segment is small at present. "It's difficult to forecast how the sector will continue to grow and develop," he adds.
It's not just about changing ingredients but communicating this to consumers. Fox's, and other responsible manufacturers, have adopted clear labelling policies with suggested portion controls and GDA panels on confectionery products. Indeed, increasing sales show that, despite the obesity debate, enjoying treats as part of a more considered, balanced diet is the answer for consumers, not abstinence.
"We know we're a sugar product - and we wouldn't want to hide that," says Fox's Mattock. "But we want to make it as easy as possible for consumers to make informed choices. We also use premium ingredients (added Vitamin C) and natural flavourings (mint oil). It may not be the main reason for buying our products, but it's an added selling point."
On the NPD front, Vennekens says developments tend to be more 'evolutionary than revolutionary', down to a couple of reasons. The Ofcom regulations ruling out TV advertising to under-16s have made it more difficult for a new brand to become established. And there are limits to what can be achieved - in gums and jellies, for example, NPD is centred on new flavours and shapes, pack sizes and formats. "There is a lot of brand evolution and extension, but there's little in the way of true innovation," he says Vennekens. "Using no artificial colours is really more about continuous product improvement." Mars' upcoming launch of liquid-centred Starburst Twisted may however be more innovative than most.
The gums and jellies sector might be limited in its innovation, but chewing gum can boast high levels of NPD - in fact, a third of Wrigley's sales come from products that are less than five years old. The chewing gum category is worth £277.8m, with total sales up by 16.1% in 2007 [ACNielsen, December 2007].
Wrigley claims an 88.6% share of the total gum category, although CTB's high profile launch of Trident looks as though it might have some tougher competition going forward.
Since launch, £38m of incremental sales value has been added, with 75% of this delivered by Trident [ACNielsen, December 2007]. Trident has not only attracted two million new users to the gum category, but also encouraged existing users to buy more frequently. "Gum is driven by innovation," says Kate Harding, trade communications manager at CTB. "In other markets, the top 10 gum skus will regularly change, and this has been seen in the UK since Trident's launch."
The 'innovation rate' jumped from 6% to 25% in just six months of 2007. Wrigley's Extra Fusion, launched in June, capitalised on consumer demands for enjoyment and freshening, while ?CTB has launched two fruit flavour combinations, and Trident Soft Spearmint?.
While the gum category is expanding, the UK mints market is broadly stable and worth nearly £128m [ACNielsen, May 2007] in retail sales. Trebor remains the biggest brand, with a 47% share. n
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