Bulk Candy

Bulk Candy
Basics are the best way to 'bulk up' — but above all, keep the section clean and pristine.
Bulk Candy Estimated U.S. Retail Market Size
$1.5 - $2.0 billion
Source: Confectioner estimate based on input from industry players
Overview
When thinking about bulk candy, think “B”
for basics. Well known varieties of candy are really the backbone of the
business; it seems the better the selection of basics, the more bulk candy
sells.
Because health concerns are always an issue, many
leading players are providing a complete selection of best-selling candies
— wrapped.
Adjacencies
It has been reported that bulk candy sells about 30
percent better in supermarkets if placed in the produce department. In
stores of about 45,000 square feet or more and/or stores achieving annual
sales of $30 million or more, placing a secondary fixture has been shown to
work well. A secondary display in or around the dairy department is one
such example. Cross-promotion opportunities, especially for higher-end bulk
candy, also exist in and near video, CD, book and magazine departments.
Floor or power displays near snacks and chips have also worked well for the
category.
Seasonal Opportunities
Bulk candy is not known for its “super
seasonality,” however, it can be positioned as a great way for
consumers to fill up Easter baskets and other home-made holiday gifts. But
perhaps the best seasonal opportunity the bulk candy fixtures deliver is
this: they can be utilized as a merchandiser of the unsold contents of
packaged seasonal candy — which can later be placed in the bulk bins
and sold for full price.
Outlook
The bulk candy business has not come close to its full
potential say our sources; one player estimates that the ideal market would
include all supermarkets with 25,000 square feet or more of space, which
also achieve an annual volume of $10 million or more per store —
certainly not all a part of the bulk scene today. Nevertheless, the
category is enjoying double-digit growth of late. This is expected to
continue. n
Merchandising Musts
Go big on the basics. Right now, gummy
bears, worms, peach rings and sour worms have all joined the ranks of the
tried and true — such as Tootsie Rolls, milk caramels and the like.
Expectations for the peanut brittle category are also rising. While it is
good to look for new products to keep the category current and fresh, it is
more important to maintain a wide variety of basic, recognizable candies.
Clean it up.
Candy buyers need to trust their bulk candy vendors to make suggestions and
help manage the category, especially when it comes to issues of health and
sanitation. Many are recommending moving to all-wrapped candies. But even
without that strategy, retailers need to maintain the most pristine bulk
appearance — always.
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