Transcript Document

The Confectionery Industry
Year in Review
2004
2004 Retail Confectionery Sales
Category
Retail Sales
Total
Manf. Sales
%
Lb. Sales
$26.3 Billion $17.1 billion
+2.3%
7.2 Billion
+1.9%
Chocolate
$15.1 Billion
$9.8 billion
+3.9%
3.4 Billion
+2.8%
Non-Choc.
$7.8 Billion
$5.1 billion
+1.6%
2.9 Billion
+1.8%
Gum
$3.3 Billion
$2.1 billion
+4.1%
0.5 Billion
+1.4%
NCA Estimates base on 2004 U.S. Dpt. Of Commerce 311D Report
%
Candy & Gum Retail Performance
2004 IRI Sales Results
As of December 26, 2004
Channel
52 Week
$ Sales
52 Week
% Change
Supermarkets
Drug
Mass X Wal-Mart
Convenience
Total Candy and Gum
$4.2 billion
$2.2 billion
$1.2 billion
$2.7 billion
$10.3 billion
+0.8%
+3.7%
+1.3%
+7.5%
+3.3%
IRI $ Sales as of 12/26/04 FDMC
Retail Landscape is Changing
Channel
2004 $ Sales
2004 % Growth
Supermarkets
$4.2
+0.8%
Convenience Stores
$2.7
+7.5%
Drug Stores
$2.2
+3.7%
*Wal-Mart
$2.6
+3.8%
Mass X Wal-Mart
$1.2
+1.3%
*Warehouse Clubs
$3.2
+3.6%
*Dollar Stores
$.8
+7.2%
Vending
$1.2
-1.9%
*Bulk
$1.5
-0.5
*estimates
Candy and Gum Ranked 3rd
Among 2004 Food Categories
$ Billions
$0.0
$3.0
$6.0
$9.0
-1.0%
Product Categories
Carbonated Beverages
+6.6%
Milk
Ice Cream
Cookies
-3.3%
$11.20
$6.10
-1.9%
+1.0%
$13.50
$7.10
+0.4
Salty Snacks
$15.0
$7.60
+1.6%
Candy& Gum
Cereal
$12.0
$4.40
$3.90
IRI Food, Drug & Mass
Excluding Wal-Mart 12/26/04
Candy and Gum Ranked 1st
Among 2004 Snack Categories
$ Billions
$0.0
$2.0
$4.0
+1.6%
Snack Categories
Candy & Gum
+0.4%
Salty Snacks
-3.3%
Cookies
Snack/Granola Bar
Bakery Snacks
Dry Fruit
Misc. Snacks
$6.0
+1.3%
$0.9
$0.5
$0.4
$8.0
$7.6
$7.1
$3.9
$1.8
+1.1%
+4.2%
+5.6%
+5.7%
IRI Food, Drug & Mass
Excluding Wal-Mart 12/26/04
What Affects Seasonal Sales?
•Date/Day of Holiday
•The Economy
•Consumer Confidence
•Consumer Mood
•Shopping Patterns/Habits
•Merchandising Strength/Visibility
Holiday Dates/Days
Holiday
2004
2005
2006
Valentine’s Day
Saturday
Monday
Tuesday
Easter
4/11
3/27
4/16
Halloween
Sunday
Monday
Tuesday
Christmas
Saturday
Sunday
Monday
Thanksgiving
11/25
11/24
11/23
Shopping Days
30
31
32
Seasonal Confectionery Trends
2004
2003 2002 2001 2000
1999
VALENTINE’S
-3.0%
-3.0%
-7.6%
-2.1%
EASTER
+5.5%
+5.5% +2.2% -2.2%
HALLOWEEN
+2.4%
+2.4% +0.7%
-0.4% +0.2%
+4.7%
+6.1%
CHRISTMAS
-3.5%
-3.5%
-3.0%
+1.7%
-0.8%
* IRI FD&M
-1.4%
+6.5% -0.5%
-2.4%
+0.7%
+4.7%
+11.0% -0.1%
Candy & Gum Retail Performance
2004 Sales Results 12/26/04
Confectionery
Chocolate
Everyday Sales
Seasonal Sales
Non-Chocolate
Everyday Sales
Seasonal Sales
Breath Fresheners
Gum
IRI $ Sales as of 12/26/04 FDM
+1.6%
+1.9%
+3.1%
-3.1%
-1.0%
-0.8%
-2.1%
-2.9%
+7.1%
Christmas Shopping Patterns
•Holiday shopping consolidated
Polarized Shopping
Thanksgiving – Christmas - Post
•Losing early impulse purchases
•Impact of Gift Cards
Starbucks, Department Stores
New Trends
•Sugar-free candy and gum
•Low-carb candies?
•Limited edition candies
•Brand line extensions
•Smaller sizes (servings)
•Increasing Dark Chocolate sales
New Trends
Sugar-free Candy and Gum
Low-carb Candies
+35%
+13%
New Trends
Limited Edition Candies
New Trends
Increasing Dark Chocolate Sales
+17%
New Trends
Brand Line Extensions
2004 Highlights
Retail Sales
+2.3%
Halloween Sales
+2.4%
Easter Sales
+6%
New Item Introductions
Strong
Confectionery Continues to Grow
• Consumers know what they are
buying
• Choice of sizes
• Variety of nutritional choices
• Candy fits in a healthy lifestyle
• Economy Improving
• 3 Favorable Seasonal Dates