According to the 2009 NACS State of the Industry report (SOI), the confections category in a typical convenience store contributes $44,820 to sales and $21,336 in gross margin dollars, for an average gross margin of 47.6%.
Top performers in the important non-chocolate confections category, according to the 60 category buyers to participate in CSD’s 2010 Brand Preference Study were Wrigley, Cadbury Adams and Hershey’s. Honorable mentions were Farley & Sathers, Just Born and Perfetti Van Melle.
These key suppliers are helping to grow the category. The confectionery retail market has matured across all trade channels, but convenience stores have outpaced the overall retail market, followed by club stores, dollar stores and chain drug stores, according to the National Confectioners Association (NCA) 2009 State of the Industry report.
In terms of dollar share, chocolate candy (58%) by far accounts for the lion’s share of candy sales, followed by non-chocolate (33%) and gum (9%), according to NCA.
For c-stores, though, 12% of the key industry buyers to participate in CSD’s Brand Study, 12% reported no sales presentations from non-chocolate candy suppliers in the last two months. Nearly 68% of buyers reported less than five presentations from the 22 companies in the market.
Focus on Best Practices
Repositioning candy to the highest traffic aisle in the store could significantly boost sales, according to the “Convenience, Candy & Profit” study conducted by Kit Dietz, of Dietz Consulting. Other key findings include:
• Keeping core brands in stock at all times.
• Improving in-store product placement and new item strategies, and developing exit strategies for poor performing items.