
All Eyes On Theater Boxes
By Renee M. Covino
The “billboard effect” of these
increasingly popular candy boxes is just one of the ways the packaging has
made it a perfect mass retail fit.
A bucket of
popcorn, a giant soda, and a box of candy — in a specific rectangular
flat shape that displays quite nicely under glass at concessions stands
— those are the standard trio of treats enjoyed by America’s
moviegoers. A few years ago, that special-sized candy box was incorporated
into the candy sets at video rental stores with much success; more
recently, mass retailers everywhere are realizing the profit and display
potential of what is now known as “theater box candy.”
In addition to the 35-40 percent profit margins they
typically carry, the display-friendly nature of a theater box is top on its
list of attributes for the mass retail trade. “Retailers and
manufacturers have quickly jumped on the category due to the fact that the
profit margins tend to be larger — based on lower-ounce weights, and
that the packaging lends itself to billboard-like shelf presence,”
says a spokesperson for Blueberry Hill Foods, which recently introduced the
first “general line candy approach” to theater boxes.
The category’s familiar “billboard
effect” is also known as block setting —when the whole candy
set is faced, the combination of all the SKUs together gives the section a
poster-like image.
“Consumers are drawn to this, and it makes them
feel they are getting their money’s worth with the purchase,”
says Dan Johnson, director of sales for Candy Planet, which is just
entering the theater box arena with three offerings of “very
special” gummies: Gummy Cats and Gummy Dogs (donating 10 percent of
the profits to “no kill” shelters) and “We Care”
Gummy Pink Ribbons of Hope (donating 10 percent of the profits to breast
cancer research and awareness programs).
It seems theater box items can fit just about anywhere,
and so that’s exactly where they’re showing up — at the
checkout rack, in a candy gondola, on sidekicks and speed tables, and
neatly positioned into a permanent candy set.
“Because of the ease of display of the theater
box format, most retailers have been able to incorporate it into their
existing displays,” maintains Johnson. “Retailers have
definitely changed sets for these items; the profit margins and competition
pressures have really pushed this product to the plan-o-grams,” adds
Blueberry Hill’s spokesperson.
Retailers that have been particularly praised for their
efforts in the category include the Circle K (convenience store) division
in Arizona, which has added permanent sidekick racks designed exclusively
for theater boxes. Dollar Tree has built a “huge” section of
theater boxes in its stores, and at discounted prices, has really enhanced
the value perception of the category for its customers.
Overall, the drugstore class of trade is very fond of
theater boxes, reportedly allocating the most linear feet. Walgreens, CVS
and Brooks have repositioned a lot of facings to theater box candy.
“Drugstores have shown the highest increase in
sales over the last year, according to our IRI data,” relays Donald
Houston, brand manager for Hot Tamales and Mike and Ike, two of the
category’s “originals” from Just Born, with a 32 percent
share in the category. The company recently introduced two new
“big” theater boxes in 6-ounce and 9.5-ounce sizes.