Peg Pleasers
General line candy/peg bag programs remain popular for their variety and good value—but there’s room for higher quality.
Rebagged confections are
currently swinging on their store pegs, as happy, crowd-pleasing candies. Confectioner’s exclusive
industry survey last summer found the category to be gaining in popularity.
Of the nearly 85 percent of retail/wholesale respondents that had a
rebagged program in place, more than 95 percent felt it was an important
contributor to overall candy category sales and profit. And numerous
retailers mentioned wanting to increase the section with either a new or
expanded private label line.
Imperatives
Without variety or value, there would be no general
line candy. Indeed, these two factors are tantamount to its success. The
private label approach is one way retailers are ensuring the future of
both. Buyers claim that with private label rebagged lines, they can have
better control over making product adjustments. The goal is to have variety
for consumers without overcrowding the pegs. One forward-thinking retailer
is making its packaging “tighter and shorter” so the chain can
better accommodate innovative candy SKUs.
Outlook
Quality is expected to step up a peg or two in
rebagged candy for the near future. Retailers already claim to be getting
more discriminating when choosing lines. Basically, anything that is
catching on with in-line candy has crossed over into rebagged as well. As
long as it’s a perceived value with updated variety, rebagged candy
is expected to remain a clear winner for the candy consumer. n
Merchandising Musts
Play up pricing.
Dollar stores have probably partly dictated the most
popular price point in rebagged candy right now—a buck. Two bags for
a dollar or one bag for 99 cents are the most popular price levels
currently. That’s not to say that higher prices aren’t working
right in line with that. They are, according to retailers who have started
emphasizing more upscale candy. Chocolate and non-chocolate prices are key
here. Some believe they could go as high as $2.99 with chocolate pricing,
especially if it were merchandised alongside branded chocolate candy.
Remember the young; remember the old.
Rebagged candy is popular with a variety of ages
because of its clear (literally) value. Therefore, it would be wise to
merchandise some popular hard candies such as butterscotch and starlite
mints for the older set, or perhaps no-sugar rebags for diabetics, and more
current candy such as sours and wild gummy shapes, for the kids. This is
where secondary spinner racks might work—merchandising no-sugar
varieties by the pharmacy, for example.