There were some predictable and some surprising outcomes in Confectioner’s sixth annual Category Driver Awards honoring excellence among candy vendors.

Who steers the most popular categories in the candy industry? The results are in: the “Mario Andrettis” of confections have crossed this year’s finish line of excellence, resulting in Confectioner’s 2007 Category Driver Awards, honoring these gold/Category Driver top-place, as well as Silver Circle second-place, winners.

The course was a slightly changed one this year, and many had to add a slightly new skill set and/or master a few more twists and turns beyond their core roadmap, thanks to the increasingly predominant industry trends of premium confections, dark chocolate, functional options, sugar-free selections and seasonal add-ons.

Indeed, the line has somewhat blurred in terms of traditional suppliers leading core categories — because many players are now intentionally crossing paths. Mint suppliers have delved into chocolate; mainstream chocolate companies have acquired premium players; premium players have gone mass, and many of the mass brands have dabbled in functional and sugar-free options.

Nevertheless, these industry winners stayed on track as supreme partners, according to our diverse group of retailer/distributor respondents.

And so, with a category change in place (“premium” has gotten so hot we gave it two categories — gift boxes and bars) and with perhaps a few surprise winners to report, we are proud to present the top confectionery suppliers driving the growth of the candy industry in the retail marketplace for 2007.

Category Driver/Silver Circle winners are chosen from a tally of unaided interviews. Votes were tabulated from confidential retail and distributor sources, which, all together, represent over 40,000 stores within the food, drug, mass, convenience, wholesale club, dollar store, specialty, and other alternative channels. This year’s survey produced a record number of responses, adding even more credibility to its results.

Looking at them in more detail, here are our 2007 categories/winners with some top highlights and praise for the achievements that took them there.

Gold: Wm. Wrigley Jr. Company
Silver: Cadbury Adams USA LLC

It should come as no surprise — Wrigley as the category driver for breath-freshening, which includes gum and mints. The company has won in this segment, as well as in the chewing gum category, every year since the program began. This year it received more single votes than any company mentioned in our entire survey. In this category it is perhaps because its brands such as Eclipse and Orbit are often synonymous with fresh breath. Just as importantly, it has kept its packaging, flavoring, and line extensions current; some say it is “a trendsetter,” which is no easy feat for such an established company.

While other breath-fresh products have come and gone, Cadbury Adams (from Certs to Dentyne to Trident) has maintained a loyal following in the category, too. It has had a very strong year and is focused on continuing that with innovation and line extensions. “Cadbury Adams is working to gain market share with some excellent products and very savvy marketing,” according to one mass market buyer.

Once again, Wrigley takes top honors with Cadbury Adams right behind it. Wrigley’s Orbit gum franchise continues to expand; the brand’s signature tab envelopes are as strong as ever, even in multi-pack formats that allow retailers to play a value aspect up in the main candy aisle. “Wrigley and Orbit have done the best job going from store distribution of two flavors to as many as seven,” believes a major candy distributor. An electronics store candy buyer maintains that, “Wrigley has always been very helpful to us as an alternative channel retailer; they get it!”

Cadbury Adams is chewing up its fair share, too. They have had a very strong year, profit-wise and innovation-wise, especially with the long-lasting gum brand, Stride. With perhaps a play on words, a c-store buyer states that “Cadbury Adams has really made huge strides in the gum game. They’re really reshaping the industry, they’ve done a fabulous job, and I think that their improved market share shows that.”

Cadbury Adams’ Trident White has allowed the industry to view “functional” confections, which is still sometimes misunderstood, in a very mainstream way. And the fact that the packaging is very accessible and eye-catching, along with continued flavor introductions, including fruit flavors, makes it a more buyer-friendly category.

In second place, Gum Runners’ Jolt gum, is becoming something of an icon in the category, thanks to a well-understood and well-defined brand name. Distribution is becoming more widespread. “Jolt sells well everywhere we have placed it,” says a major candy distributor.

Some in the industry believe the novelty confections category is waning, while others just see it as a maturing process with natural consolidation and a weeding out of all but the strongest players. Clearly then, Kandy Kastle has the legs for novelty, while Topps has always been synonymous with kids’ candy. They are a fine example of how young and established companies can not only co-exist, but bring their own magic to a category.

One distributor mentions that, “Kandy Kastle has done an excellent job in introducing unique and exciting novelty items into the marketplace. They have done a very good job at keeping price points where they need to be, while still delivering a solid consumer value.”

Topps’ kids’ brands resonate with its young/tween crowd, even more so now that the company has revamped promotions and advertising. “Topps is by far the winner in kids’ candy,” says a major distributor. “Their items are the top-selling ones in every one of our accounts.”

For all the years Confectioner has conducted its Category Driver survey, Hershey has won, hand’s down, in the chocolate category. And that remains true, even with premium chocolate on the rise in mass retailers. Hershey has totally kept in step with the dark side of chocolate and other category trends to still be “the best at what it knows best — chocolate, period,” according to a supermarket candy buyer.

From a convenience store perspective, “Overall, chocolate is still the king of candy in c-stores and Hershey, for us, continues to be the runaway leader in that category,” says a candy buyer.

But Masterfoods is a solid second-place leader, and has been for several years, holding its own and also very much keeping up with the chocolate times. One distributor, who voted for both Hershey and Masterfoods, stated: I think from the perspective of innovation, I would have to give things to Hershey. From the standpoint of actual market growth and focus on core brands, it has to go to Masterfoods.” Another distributor gives kudos to the second-place winner: “Masterfoods’ chocolate items dominate most of our sets because they are the items that consumers connect with in our stores: great brands with great advertising.”Non-Chocolate

This was perhaps one of the hardest categories for respondents to vote for, as there were so many different companies mentioned. One distributor actually responded first with “excellent question,” implying he, himself, was not sure who the clear-cut winner was. But our survey did produce a leader that was slightly ahead of everyone else: Masterfoods definitely eeked out the most votes, with Hershey and Just Born, close behind and tied.

The traditional gift box category is declining, but when you add the word “premium” to it, things change. Many respondents believe that Lindt is the reason why its customers have “discovered” premium — and it brings a new creativity to the term “gift box candy.”

Lindt’s Petits Desserts are attracting a lot of portion-control attention — for a gift and/or self-indulgence. The selection of 41 bite-sized pieces features seven “gourmet” flavors: Meringue, Crème Brulee, Macaroon, Brownie, Chocolate Log, Lemon Tart, and Tiramisu.

Meanwhile, Russell Stover, long the mass-market king of the boxed category, is changing with the times, too. The Russell Stover Elegant Assortment box is line-priced with its standard bowline at $7.99, however, it is different than the traditional bowline boxes in that the packaging will look completely different (not white; no prominent bow) and all the pieces in this assorted chocolates box are decorated.  Russell Stover will also introduce a completely new line of premium assorted chocolates featuring single-origin chocolate, unique centers and artistically-decorated and molded pieces. The packaging features “the energy and essence of urban living” and offers more than one design in each case. The Whitman’s brand will additionally introduce a new line of premium boxed chocolates called Soho. 

The premium bar category is getting its own special shelf space at many mass retailers, including supermarkets, and therefore, it deserves a special award all its own. The praise for Ghirardelli in this category is impressive, literally: “Ghirardelli has been the most impressive supplier; they have good products, service, program creativity and people,” says a major distributor. Another candy wholesaler says: “They have worked with our customers on developing the business at a much greater level than their competitors. Their team is a creative bunch.”

And as for the product,“Ghirardelli simply makes a better chocolate bar,” says one alternative channel retailer.

Lindt has long been known for its bar displays, carved out in many a mass retailer — even before premium got its extra push. Today, they have been praised for further improving upon the presentation while maintaining a well-defined brand.

Holidays are happy times for Hershey; respondents recognized the brand for its continual roll-out of new seasonal SKUs and addressing consumer trends directly, at holidays as in everyday.

Lindt’s seasonal win is attributed to its “creative, upscale selections” — obviously a sign of the times that premium is getting more candy play on the shelves and in the mouths of consumers. The company has done well with its Lindor balls in holiday themes such as pumpkins, as well as its Lindt Gold Bunny and Lindt Gold Reindeer chocolate figures wrapped in gold foil and hand-finished.

The way Russell Stover smoothly transitioned away from “low-carb” and towards sugar-free was a phenomenal strategy, praised a number of respondents. The company has not skipped a beat in innovation, either: Whitman’s will be introducing its first extension of its category-leading Whitman’s Sugar Free Sampler box. The new items, which carry the distinctive green/silver sampler look, will be 3-ounce peg bags with individually wrapped pieces. Additionally, Russell Stover Private Reserve will offer its first two entries in the sugar-free category in 2007. This sugar-free line will stay true to its premium heritage in that it features the use of only 60% cacao dark chocolate candy.

Meanwhile, Hillside has earned its Silver spot (and first award) in our program with its flagship brand Golightly sugar-free candy. It received praise for its packaging and its taste — and an overall positive impression of the product. The company takes pride in its peg bags and the “beautiful wrappers” its uses for its candy. Respondents also applauded the company’s extended brand — GoNaturally, a line of 100% natural candy, not sugar-free, but in line with “healthier” options consumers are looking for. n

Breath Fresheners (Gum, Mints, Other)
Category Driver Winner: Wm. Wrigley Jr. Company
Silver Circle Winner: Cadbury Adams USA LLC

Chewing Gum (Not Functional)
Category Driver Winner: Wm. Wrigley Jr. Company
Silver Circle Winner: Cadbury Adams USA LLC

Functional/Fortified Confections/Gum
Category Driver Cadbury Adams USA LLC
Silver Circle Winner: Gum Runners LLC

Novelty/Interactive/Kids’ Confections
Category Driver Winner: Kandy Kastle Inc. and The Topps Company (tied)

Chocolate
Category Driver Winner: The Hershey Company
Silver Circle Winner: Masterfoods USA

Non-Chocolate
Category Driver Winner: Masterfoods USA
Silver Circle Winner: The Hershey Company & Just Born Inc. (tied)

Premium/Gourmet Gift Box Confections
Category Driver Winner: Lindt USA
Silver Circle Winner: Russell Stover Candies Inc.

Premium/Gourmet Candy Bars
Category Driver Winner: Ghirardelli Chocolate Company
Silver Circle Winner: Lindt USA

Seasonal Confections
Category Driver Winner: The Hershey Company
Silver Circle Winner: Lindt USA

Sugar-Free Confections
Category Driver Winner: Russell Stover Candies Inc.
Silver Circle Winner: Hillside Candy LLC