
Licorice: More Luxurious?
By RENEE M. COVINO
The category seems to have more adult allure.
Even in the days of penny
candy, licorice has been a core confectionery item, and chances are, it
will remain so for quite a long time. But recently, there has been a more
upscale marketing push, which seems to be garnering incremental adult sales
and shaping a more diverse twist to licorice.
For the 52 weeks ending Feb. 20, 2005, licorice
boxes/bags greater than 3.5 ounces amounted to a $154 million category
across food, drug and mass retailers excluding Wal-Mart, according to the
latest data from Information Resources Inc. Overall, the category saw a 3.5
percent dollar sales gain and a 3 percent unit sales gain across the three
channels vs. year ago. Of those three channels, drugstores were the most
impressive “gainers” in the category lately, experiencing a
10.7 percent dollar sales increase (totaling $42 million) and a 12.4
percent unit sales increase for the same 52 weeks ending Feb. 20, 2005.
But what IRI does not track is the fact that some of
the specialty retail players such as Cost Plus and Trader Joe’s have
boosted items like licorice to a new level, thanks to more adult packaging
(tubs and tins) and flavors that focus on a more sophisticated palate
(original and all-natural black licorice). Those trends are just starting
to trickle down to the mass level.
Naurally good
New World Marketing, which manufactures Panda brand
licorice bars, chews and comfits (small and perfumed licorice bites),
appeals to the adult consumer with ingredients such as molasses, wheat
flour, licorice extract and anise oil. Products are also touted to be
“all-natural” and “kosher.” The company plays
upon the idea that mankind has used licorice for thousands of years, and it
was thought to prolong life and endow strength. In addition to its all
natural varieties, Panda licorice is also available in licorice raspberry
flavors (chews and bars) and licorice herbal chews.
Adding some snap!
American Licorice is appealing to the nostalgic side of
adult consumers. The company has recently brought back its original Snaps
licorice brand due to “tremendous consumer demand,” according
to the company, but with an updated twist—a new Snaps tin. With a
suggested retail of $5.99, each Snaps tin displays “dynamic graphics
with a great nostalgic look and feel,” is topped with a lid embossed
with the Snaps logo, and contains a 12-ounce bag of Snaps. Snaps also are
available in hanging bags, count goods and theater boxes.
Individually wrapped licorice in bulk displays is
another way the category has grabbed adult attention, and Kenny’s
Candy Company is adding new flavors and expanding its offerings of
individually wrapped product. “We feel there is great opportunity in
individually wrapped bulk items since adult consumers are more conscious
about cleanliness and sanitation and the take-along aspect of
treats,” says Shane Kangas, vice president of sales and marketing.
The company has also re-launched its 10-ounce Juicy
Twist product line with completely new film and graphics for more overall
consumer appeal. “Our pineapple bag has pictures of real pineapple on
it, the green apple bag has pictures of real green apples on it, and so
forth,” says Kangas.
Where retailers go with some of these new
“twists” to licorice is up to them. “The category is
definitely becoming more diversified,” maintains Kangas. “But I
would like to see more retailers allocate space for more variety in their
licorice section from the smaller players,” he adds.