Transcript Confectionery Industry Review January – June 2006 August, 2006 USA Market 2006 First Six Months Retail Performance.

Confectionery Industry
Review
January – June 2006
August, 2006
USA Market
2006 First Six Months
Retail Performance
2006 Retail Confectionery Sales
52 week sales estimates July 2005 – June 2006
%
$
Change
Confectionery
$28.6
+3.2%
(Chocolate, Sugar, Gum)
Sales in billions
Estimates are based upon interpretation of IRI retail sales data, NCA Shipment Data, and
Euromonitor
2006 Retail Channel Performance
Based on 52 Week Sales – July 2005 – June 2006
Channel
2006 $ Sales
Supermarkets
$4.3
*Wal-Mart
$3.2
Mass X Wal-Mart
$1.3
Convenience Stores
$4.1
Drug Stores
$2.4
*Warehouse Clubs
$3.1
*Dollar Stores
$.8
Vending
$1.1
*Bulk
$1.4
2006 % Growth
-0.6%
+3.8%
+2.1%
+7.2%
+4.1%
Even
+0.2%
-0.4%
Even
* Source: Sales figures are compiled by National Confectioners Association based on input from Information Resources, Inc.
NCA/CMA Monthly Shipment Reports and U.S. Department of Commerce
2006 Retail Category Sales
Category
Misc. Snacks
Coffee
Snack/Granola Bars
Candy & Gum
Salty Snacks
Bakery Snacks
Carb. Beverages
Ice Cream
Cereal
Cookies
Milk
Dry Fruit Snacks
$ Sales Growth
+30.0%
+7.8%
+4.7%
+1.2%
+0.6%
-0.4%
-0.9%
-1.2%
-1.5%
-2.1%
-3.5%
-6.6%
Information Resources 52 week sales through July 16, 2006
Category Size (000 millions)
$197
$3,001
Supermarkets,
$1,873
Drug and
Mass Only
$7,921
$7,320
$839
$13,409
$4,376
$6,082
$3,901
$10,895
$511
Candy and Gum Rank 3rd
Among Food Categories
$ Billions
$0.0
$3.0
$6.0
$9.0
-0.9%
Product Categories
Carbonated Beverages
-3.5%
Milk
+0.6%
Salty Snacks
Ice Cream
Cookies
-1.5%
-1.2%
-2.1%
$15.0
$13.40
$10.90
$7.80
+1.2%
Candy& Gum
Cereal
$12.0
$7.40
$6.10
$4.40
$3.90
IRI Food, Drug & Mass
Excluding Wal-Mart 7/16/06
2006
Seasonal Performance
Confectionery Seasonal Sales
(** in millions of dollars)
$ Sales
2006 Valentine’s Day
$971
2006 Easter
$1,884
2005 Halloween
$2,088
2005 Christmas
$1,375
Results and Projection as of June 2006
Source: Sales figures are compiled by National Confectioners Association
based on input from Information Resources, Inc. NCA/CMA Monthly Shipment
Reports and U.S. Department of Commerce
Seasonal Confectionery Trends
2006
2005
2004
2003
2002
VALENTINE’S
+0.1% -4.0%
-3.0%
-7.6%
+6.5%
EASTER
+7.0% -7.6%
+5.5%
+2.2%
-2.2%
HALLOWEEN
+2.3%
+2.4%
+0.7%
-0.4%
CHRISTMAS
+2.4%
-3.5%
-1.4%
-3.0%
* IRI FD&M
USA Market
2006 First Six Months
Manufacturer Performance
2006 Confectionery Performance
Manufacturers’ Shipments
January – May 2006
Category
Manf. Sales
Chocolate
Non-Choc.
$2.5 billion
$1.4 billion
NCA Monthly Shipment Reports January – May 2006
%
-0.2%
+6.8%
USA Market
New Trends
Trends - What's
for 2006/07
 Limited Editions
 Dark Chocolate
 High End and Gourmet Candy
 High Cocoa Content Chocolates
 Single Origin Chocolates
Gourmet Chocolates are hot!
It all depends on your definition of gourmet.
Combined, Dove, Ferrero, Ghirardelli,
Hershey Dark, Lindt, Mon Cheri and
Perugina grew 32.2% in 2005
Trends - What's
for 2006/07
 Sugar Free Gums
 Licorice
 Single Serve Seasonal Offerings
 Breath Fresheners
USA Market
2005 Annual
Confectionery Performance
2005 Confectionery Performance
Category
Retail Sales
Manf. Sales
%
Total
$28.1 Billion
Chocolate $15.8 Billion
Non-Choc.
$8.9 Billion
Gum
$2.6 Billion
$18.3 billion
$10.3 billion
$5.8 billion
$1.7 billion
+2.6%
+3.2%
+7.0%
-12.4%
NCA Estimates base on 2006 U.S. Dpt. Of Commerce 311D Report and NCA Monthly Shipment Reports
Differences based on estimation and “Not specified by kind” category.
2005 Confectionery & Snack Sales
The 2005 U.S. Retail Market
Confectionery
(Chocolate, Sugar, Gum)
Savory Snacks
Biscuits & Crackers
Sales in billions
NCA Shipment Data and Euromonitor
$
$28.1
%
Change
+2.6%
$27.5
$11.1
+4.4%
+1.3%
Retail Landscape Changing
Channel
2005 $ Sales
Supermarkets
$4.3
*Wal-Mart
$2.8
Mass X Wal-Mart
$1.2
Convenience Stores
$3.8
Drug Stores
$2.3
*Warehouse Clubs
$3.2
*Dollar Stores
$.8
Vending
$1.2
*Bulk
$1.5
*estimates
2005 % Growth
-1.1%
+3.8%
+0.7
+8.8%
+1.0%
+3.6%
Even
-1.9%
-0.5