Looking to reenergize candy sales
Candy-makers are expanding into the energy and fitness markets
- Keith Nunes
- Food Business News June 28, 2005
CHICAGO – Fitness is not a word that comes to mind when thinking about candy. For decades, candy was viewed as the ultimate source for athletes and others looking for a quick energy boost. First to energy bars and then to energy drinks, candy has lost this position over the last two decades. But several exhibitors at this year’s All Candy Expo indicated that confectionary products may regain its energy source status by taking a page from the new-age playbook.
One impetus for confectioners to consider these new markets is the growth of the beverage industry’s energy segment. The success of drinks such as Red Bull, Hansen’s Monster, Rockstar and SoBe’s No Fear products have created a market segment worth $991 million, according to the Beverage Marketing Corp., New York. Confectioners now are angling for a share of the segment.
“We’re out to create the Red Bull of the breath mint category,” said Shaun Park, director of marketing for Warp Micro, sugar-free hyper-charged mints. “Beverage companies are coming out with one energy drink after another. We thought why does it always have to be a beverage? Why not bring the energy concept to a completely new category?”
The “new category,” as Mr. Park calls it, is growing quickly. The exhibition floor at the All Candy Expo featured a slew of product introductions, including products such as Warp Micro breath mints, Blitz Energy Gum, Arctic Blast breath strips, Cherry Bomb energy strips, XLR8 Energy Chews and Sport Beans.
Introduced by Big Sky Brands, Toronto, the Warp Micro mints are infused with a formulation of herbal elements that include ginseng and guarana.
“Our target market is the same as the energy drinks, 16 to 30 year olds,” said Steve Yacht, director of sales and marketing and an owner of Big Sky Brands. “We know from past experience that the market skews a little older and younger than our target.”
In terms of consumer usage, Mr. Yacht describes it as “being all over the map.”
“It really depends,” he said. “Some people are bringing it out at night, at the office or while they are competing in athletic events.”
Sold via retail, Warp Micro is featured in a variety of outlets, including apparel and sporting goods stores such as Urban Outfitters and REI. Other venues include GNC and Tower Records.
However, while the product is being sold as a breath mint with a kick, Mr. Yacht said the company considers its primary competitor to be other breath mints.
“We differentiate ourselves by offering two products in one,” Mr. Yacht said. “Consumers can get a breath mint and boost without having to purchase an energy drink.”
Sublingual Sensations
Laura King, vice-president of marketing for BDI, said the company decided to develop and sell strips rather than tablets, because users would feel the effects much faster with a strip. “The strips are consumed ‘sublingually,’ which is the fastest way to get the product into the blood stream,” Ms. King said. “Tablets or pills need to be ingested with water and take up to 30 minutes before consumers feel an effect.”
The Arctic Blast breath strip contains caffeine while the Cherry Bomb does not. The Cherry Bomb product is also not a breath freshener.
“We know some consumers are staying away from caffeine and wanted to give them a choice,” Ms. King said. “With either product, consumers can get the quick energy boost they are seeking.”
While BDI Marketing chose a strip to deliver its product, Schuster Marketing Corp., Milwaukee, introduced Blitz, and energy gum with caffeine. Like BDI Marketing, the company is marketing the product as being faster acting than coffee or energy drinks, because the caffeine in the gum is absorbed through the membrane on the inside of the mouth during chewing.
According to the company, this delivery system is three times faster in delivering results than drinking coffee or energy drinks, and it maintains 100% of its potency.
In addition, Blitz gum is manufactured using a compression technology that distributes the caffeine uniformly in an exact dosage under extreme pressure. The result is the caffeine becomes bonded to the gum and is released uniformly as it is chewed.
According to Schuster Marketing, Blitz will appeal to a wide market because 80% of consumers use caffeine daily. The product will be available for shipment on July 1 with the suggested retail price of $1.99 for 10 2-gram tablets. The pricing per pack is equivalent to five cups of coffee or 6.25 8-oz cans of energy drink.
BestSweet, Inc., Mooresville, N.C., a processor of nutritional, pharmaceutical and confectionary products, announced it has joined forces with Dale Earnhardt, Inc. (D.E.I) and Dale Earnhardt Jr. to manufacture and market XLR8 Energy Chews.
XLR8 combines taurine, ginseng, guarana, caffeine and B vitamins with a cherry flavor to provide energy when consumers need it. XLR8 is available in a two-serving package that packs the same results as two 8-oz. energy drinks. The individually wrapped, soft chew format makes XLR8 an energy source for people who don’t have time to stop and pick up a cold energy drink every time they need a boost.
Available in October 2005, the energy chews will be distributed to all major retail channels. The suggested retail price is $1.99. |