Gum & Mints Feature for S Rehm

gums & mints

By Lisa White These categories are being revitalized with value offerings, innovative flavors and new packaging options.

he gum and mint categories have always been Gum sales in c-stores decreased about 2 percent Tabout innovation and new flavors, which have to $1.19 billion in the 52-week period ending kept sales of these products strong. April 14, 2012 compared with a year prior, accord- Unfortunately, the climate has changed. In ing to a report by Nielsen, based in New York, recent years, with consumers’ limited discretionary NY, and the National Association of Convenience income, purchases have been more stagnant than Stores. Unit volume also dropped 4 percent during usual for these items. the same period. Candy rolls mint drops fared better, with the category growing 6 percent in c-stores to almost $335 million this year, despite unit volume decreas- ing about 1.3 percent, according to the report. “Mints are performing very well in c-stores, and while gum showed some strength at the beginning of the year, sales in this channel have been relatively flat in recent months,” says Jeff Beckman, director of corporate communications for The Hershey Co., based in Hershey, PA. With manufacturers focusing on new products, innovative packaging and developing lines that are New packaging innovations, including micropacks from on trend with what today’s consumers are seeking, Wrigley, are helping to drive sales for value-priced gum. the tide may be about to turn for gum and mints.

Timely Trends Today’s consumers want choices for everything, including flavors, sizes and price, packaging and functional benefits. “Innovation is key to the gum and mints category, but it needs to be more than just about new flavors and pack forms,” says Jennifer Jackson- Luth, senior manager, corporate affairs for Wrigley, a subsidiary of Mars Inc., based in Chicago, IL. “We know that fewer people are chewing gum and that those who do are chewing less.” This is because other categories, like food, bev- erages and entertainment, are competing for limited front end space, and new and more technology Functional product lines, like Angel Mints, have sales devices mean less pocket space. potential in c-stores. To help reenergize the category, Wrigley is developing solutions that provide long-term, sustainable growth, like giving retailers appropriate “It’s difficult to pinpoint individual flavor trends, pack types at point of sale to maintain front end since many don’t stay around long.” space where impulse purchases are made. Like with gum, peppermint is still the most pop- As part of this effort, the company has devel- ular mint flavor, although fruit varieties continue to oped “Eat. Drink. Chew.”, an in-store retail display grow. from its Orbit brand that highlights the benefits of “Fruit flavors do well, but have a shorter life chewing gum after eating to get rid of excess food cycle,” Geist says. “It’s important [for distributors in the mouth. and retailers] to have innovative fruit flavors in “Gum and mint trends are centered around gum and mints, but to have extra strategy and life smaller sizes and stronger flavors,” says Alan Webb cycle management behind that.” owner of Webb Candy, based in Eagan, MN. There is such a thing as offering too many fla- The gum category also is moving more towards vors from a wholesaler perspective. perceived value, with smaller offerings at lower “There are so many new gum and mint flavors, retails. that there is no particular one that is selling stron- In response to this trend, a growing number of ger than the other,” says Brigitte Long, a buyer for manufacturers are launching lines priced under a Dowlings Inc. dollar. Dowlings Inc., a distributor located in Milton, VT, has begun carrying a 69-cent gum line from Wrigley. “Gum is one of the only categories that doesn’t have a value entry price point, but now we’re seeing premium and value-priced lines,” says Josh n Consumers want choices when it comes Geist, category manager at Perfetti Van Melle to flavors, sizes and price, packaging USA, based in Erlanger, KY. “There are three tiers and functional benefits. to look at with value—value as price, value as a bonus and value as perception or brand value and n Due to the economy, value-priced gum equity.” and mint lines have become more In terms of gum and mint flavor trends, pepper- prevalent. mint and spearmint continue driving the catego- n Packaging innovations have centered ries, while cinnamon has experienced a resurgence. around large bottles and smaller pack “The combination flavors are definitely big right sizes. now,” says Chris Tamillo, vice president, sales and marketing, for Dayton, OH-based Revolymer Inc.

With the proliferation of new products, there many consumers are looking at the products they has been much innovation in gum and mint pack- buy and want them to satisfy in terms of taste, but aging over the last year, including new and unique don’t want harmful effects to themselves or the formats. planet.” “Chicklet-style gum has remained strong in In addition to breath mints, novelty products the category, as multi-pack sales have leveled off,” in this category are popular, especially during the Tamillo says. “Smaller value packs also are showing holidays. strong sales.” Atkinson Candy Co., based in Lufkin, TX, Focusing on value, more gum lines are being produces traditional peppermints, including 2-lb. offered in bigger bottles that are geared for heavier peppermint sticks that are strong sellers around gum chewers. Christmas. Bottled gum pellets have become big sellers in “This has been [a top] selling seasonal item in all retail channels, with the exception of c-stores. c-stores for two years running,” says Eric Atkinson, “This is the one gum category these retailers president of the company. “It is a big ring relative haven’t focused on, and there is opportunity to sell to other items in this channel, and a strong impulse larger gum containers in c-stores,” Geist says. item.” Products that capitalize on the all-natural trend Functional gum and mint lines have been a have gained a foothold in c-stores. tough sell, especially in the convenience channel. Glee Gum, based in Providence, RI, is not Bucking this statistic is Florida Candy Factory’s carried by many c-stores, but is positioned for Angel Mints, which are currently being sold in consumers looking for an all-natural gum free of Wawa stores and have been on 7-11 shelves over preservatives and allergens. It is produced with rice the years. syrup, as opposed to corn syrup. Manufactured by the Clearwater, FL-based “The trends we’re seeing that impact the gum company since 1984, the mints were first created category are clean ingredients, functionality, arti- in New Jersey back in 1919. Those with digestive sanal or hand-crafted production and sustainable and stomach conditions, as well as cancer patients packaging,” says Deborah Schimberg, president of undergoing chemotherapy, say they find relief with Verve, which manufactures Glee Gum. “Overall, this product.

Novelty mints, like these from Webb Candy, are strong impulse items in c-stores.

“The pure sugar and peppermint oil help relieve innovative items, which can increase incremental the metallic taste of those undergoing chemo and sales in the category.” can reduce cramping associated with celiac disease Looking ahead, new technologies are focusing and irritable bowel syndrome,” says Scott Rehm, on expanding the varieties for both gum and mints president of the company. and product formulations that deliver longer-last- ing flavor. New Product Launches “The future will include more new product Manufacturers have recently unveiled a number of introductions, since consumers have been trained new gum and mint products geared toward the cur- to seek these out,” Geist says. “This is crucial to rent consumer trends in the marketplace. the growth in these categories. Gum and mints are In the c-store channel, Wrigley is focusing on infinitely expandable in terms of consumption, and value, pack size and in-store placement with its new by making these products part of consumers’ every six-tab Orbit and 5 gum brand micro packs, which day, the category will grow.” are priced under a dollar. Distributors and c-stores that make an effort to “We’ve seen our traditional five-stick packs fall expand selections and include new gum and mint off shelves in the last decade,” says Jackson-Luth. brands and flavors, can help grow the category. A quarter of the size of a traditional gum “Where we’ve had trial, we’ve seen success,” pack, this line is offered in Rain, 5 Cobalt, Orbit Tamillo says. “It’s important to not just look for Spearmint and Orbit Strawberry Remix varieties. flavor differences, but brand options in the catego- Also, in response to the growing popularity of ry. Consumers are seeking truly innovative prod- pellet gum with adults, Wrigley has introduced split ucts, not just new packaging or flavors.”  packs and mini bottles of 5 in Cobalt and Rain flavors Lisa White, a regular contributor to Convenience and Orbit in Spearmint and Wintermint varieties. Distribution™, is a freelance writer based in Cary, IL. Revolymer, which produces nicotine, caffeine and removable/degradable gum lines, launched a 10-piece chicklet product under its Rev7 brand that features value pricing. Addressing the growing value segment, Perfetti Van Melle USA’s newest product is a 69-cent Atkinson Candy Co., Lufkin, TX, (936) Mentos line. The company also has introduced 639-2333; www.atkinsoncandy.com curvy bottle packaging for these products. Last year, Verve added a sugar-free version to Dowlings, Milton, VT, (802) 893-5111; its Glee Gum line that is sweetened with xylitol as www.dowlingsinc.com opposed to aspartame. Florida Candy Factory, Clearwater, FL, On the mint side, there has been much promo- (727) 446-0024; www.angelmint.com tional backing for The Hershey Co.’s Ice Breakers The Hershey Co., Hershey, PA, (717) line extension. 534-3660; www.hersheys.com “Ice Breakers Duo combines a textured fruit- Perfetti Van Melle USA, Erlanger, flavored side in either a strawberry or raspberry fla- KY (859) 283-1234; vor, along with a cooling smooth side that features www.perfettivanmelleusa.us a mint flavor with cooling crystals,” Beckman says. The new line is available in 1.3-oz. tins. Revolymer, Dayton, OH, (937) 747-4520; Webb Candy has unveiled a number of new nov- www.revolymer.com elty mint lines in recent months, including Doodle Verve, Providence, RI, (401) 351-6415; Mints, State Mints, Find Your Pet Mints and www.gleegum.com Identity Mints. Webb Candy, Rosemount, MN, (651) “Gum and mints are basket builders, which can 322-8201; www.webbcandy.com be tied into unique promotions,” Geist says. “We Wrigley, a subsidiary of Mars Inc., Chica- did an analysis and found there are 60 gum items go, IL, (312) 644-2121; www.wrigley.com that make up 80 percent of sales, which leaves 20 spots for c-stores to focus on. This should include