Candy Makers Pin Hopes on Power of Confection
Normally, it’s a pretty sweet job.
But this year, U.S. candy makers and sellers are getting down to business like never before. As the industry gathers for a three-day trade show that opens today in Anaheim, there is concern about how the recession and war jitters will affect people’s sweet tooths.
Industry officials say they are hoping the adage holds true: that in times of trouble, people will turn to chocolate for comfort.
“People may cut out movies or trips, but they will treat themselves to this other little happiness in life,” said Spaulding Goetze, vice president of Goetze’s Candy Co. Inc., which has been churning out caramel creams in Baltimore for 95 years.
As the aroma of chocolate and sawdust filled the air Wednesday, Goetze--the great-great-grandson of the company’s founder--was busy unpacking crates to get ready for the show. About 25 major candy manufacturers and 375 smaller companies are expected to attend the event, which is closed to the public.
Because of concern about the economy, some manufacturers have spent months wooing wholesalers to the show. And many are cutting back on expenses by leaving their families at home this year, said David Strachan, executive vice president of the National Candy Wholesalers Assn., the show’s sponsor.
One bright spot for the industry has been increased interest from such major retail chains as K mart and Wal-Mart, which are attending the show, Strachan said. He said these and other retailers plan to use holiday candy displays to help lure customers in an otherwise-sluggish retail environment.
“People come in because of the Valentine’s Day display, and they might pick up a bathroom scale as well,” Strachan said.
But the general retail slump is bound to take a bite out of candy sales, said A.G. Atwater, president of Amurol Products Co., an Illinois manufacturer of gum and candies.
“Ours is largely an impulse business, so if retailers are promoting less often, we’re not going to go unscathed,” he said. “Also, people tend to stay home more during hard times. If they’re not exposed to confectionery as often, then you have troubles.”
The trade show, which is usually held in California, opens this year on Valentine’s Day. A summer show is held east of the Mississippi each July.
Dick Einert, manager of sales administration for E.J. Brach Corp. of Oakbrook Terrace, Ill., said the timing of the winter show has not been lost on his wife. For the past several years, the couple have celebrated Valentine’s Day on Feb. 7.
Brach’s, the nation’s third-largest candy company with projected sales of $600 million in 1991, hopes to drum up sales by appealing to customers’ patriotism. It will introduce a line of hard candy with the image of the American flag in the center.
The company sent boxes of the candy to Americans serving in the Persian Gulf and plans to sell them in retail outlets soon, said Thomas J. Snyder, senior vice president for Brach’s.
Snyder is optimistic about the future of candy sales. As health-conscious Americans give up other vices, like smoking and drinking, they may want to munch more candy.
“Our research shows people still have an oral fixation,” he said. “Candy will always be looked at as an OK indulgence if you’re doing other things right in your life. It’s a very affordable treat.”
And trade group publicists are quick to point that some candy has fewer calories than most people think. A red lollipop, for example, has only 30 calories; a conversation heart, just 9 calories; and a chocolate-covered cherry has 48 calories, the group says.
Goetze, the Baltimore candy maker, scoffs at the concerns over calories and says people want more candy, not less. For five generations his family-run business has made only two products, caramel creams and Cow Tales (caramel creams for children). His formula for getting through tough times is simple.
“When things slow down, you increase the size of your . . . candy bars,” he said. “We increase the weights. People can tell they’re getting more when they pop them in their mouths. In a month or two, sales are back where they were. Then we bring the weights back down.”
SWEET SALES The annual sales and per capita consumption of candy in the United States have been rising steadily in the last four years. Sales In billions of dollars 1987 11.3 1988 11.8 1989 12.0 1990 12.25* Per capita consumption In pounds 1988 19.1 1989 19.7 1990 20.7 *Projected Source: National Candy Wholesalers Assn. Inc.
