The months to come will see c-store operators increasingly taking steps to restore or replace flagging sales of gum, either by crafting a more persuasive marketing message for older consumers or replacing some SKUs with popular mints.
In the 52 weeks ending Nov. 30 2014, the regular gum segment—with $510.6 million in sales—remained much smaller than the sugarless segment, which had $2.6 billion in sales in the period. But regular gum outperformed sugarless, whose sales dropped by 3.44%, according to Information Resources Inc. (IRI) data.
As baby boomers have aged, many have left their desire to chew gum behind and manufacturers have yet to come up with a sufficiently compelling case to bring them back. Many attempted to stimulate new interest by rolling out a boatload of flavors, but that only added to already crowded store sets, leaving sales to dwindle.
Industry research shows that chewing gum sales fell by about 11% to $3.71 billion from 2009 to 2013.
Ray Johnson, operations manager for Speedee Mart Inc. in Henderson, Nev., said gum manufacturers didn’t anticipate what would happen when they decided to increase the amount of product in each package more than a year ago.
When Speedee Mart executives saw gum sales dipping, they decided to get more aggressive with mints, such as Breath Savers, Tic Tacs, Lifesavers and Altoids, broadening their selection with shelf space formerly used for gum. Johnson advised other convenience store operators to do the same.
THE RIGHT VARIETY
“To me, gum has more SKUs than their sales dictate,” Johnson said. “Mints have really been under-SKU’d when you look at the sets that are recommended by the manufacturers. I’ve gone more after the mints.”
Mints are more socially acceptable, and exciting new flavors like cucumber, watermelon and ginger have helped stimulate interest. Some consumers use mint packaging to make a fashion statement.
Ryan Mathews, founder and CEO of Detroit-based Black Monk Consulting, said the question of marketing gum can be multifaceted, but can benefit from promotion and creativity.
“If I were a major c-store operator, I would work directly with manufacturers like Wrigley to change the narrative line.”
One possible marketing narrative for gum, Mathews suggested, could be relaxation and an easily accessible sense of well being that resonates with community-minded consumers. “A more culturally-based approach, say advertising in Spanish for example, might be another,” he said.
Cause marketing is another strategy retailers can use to inject new life into gum. “Perhaps, ‘a nickel from every pack sold goes to restoring the rainforest’ might work,” said Mathews, referring to a bold environmental marketing ploy that c-store chains can consider.
Retailers may also increasingly be able to position gum as a healthy product. In January, researchers at Netherlands University of Groningen reported that chewing gum traps bacteria and can be eliminated when the gum is discarded.
“The bottom line: this is a category that screams for vendor leadership,” said Mathews. “We’ve long since passed the point where point-of-sale placement to stimulate impulse sales makes any sense as a growth vehicle. It is time for manufacturers and retailers working together to reinvent the category before it gets stuck under the desk of history.”
