|
|
Freshen Up
New packaging and flavors keep gum and mints fresh in minds of consumers
by Cecelia Blalock
Can an old staple still be fresh and appealing? It can if it continues to adapt to changing lifestyles and current trends. Nowhere is that more true than in gum and mints. These old favorites are hotter than ever, especially gum. Why? Because they offer what today’s consumers want – usefulness, affordability, convenience, portability, variety.
"More households are buying more gum more often," says Vicky Lozano, vice president, gum for Cadbury Adams, USA. "It’s rare to see this kind of growth and dynamic competition in a mature category such as gum."
In the 52 weeks ending August 11, 2007, dollar sales of gum were up 15.4 percent in major c-store markets, according to Nielsen Company. Continuing a trend of the past several years, the growth came in sugarless gum, while sales of traditional sugared gum continued to decline.
Fueling this growth is gum’s compatibility with today’s snack trends. "We see three consumer megatrends in the snacking world," says Lozano. "Consumers want manufacturers to make it healthy, make it exciting, and make it convenient. In gum, this is driving consumer need for and response to better flavors and new formats, as well as improved packaging."
Adding excitement to the gum category is new packaging innovations that make gum packs easier and more convenient to use, she says. Fruit and blended flavor gums are driving category expansion and satisfying consumers’ desire for new tastes. Gum offering an added benefit, such as teeth whitening or energy, is another way to appeal to consumers.
How does a company keep its familiar brands au courant while not alienating its traditional base?
"The key is to identify unmet consumer needs and deliver better offerings to the market," Lozano says, citing Trident® as a good example. "We have significantly improved product quality, introduced user-friendly packaging that addressed the number-one consumer complaint about the brand, and innovated with exciting flavors and formats." The 40+-year-old brand is growing faster than the category as a whole thanks to new varieties such as Trident Minty Sweet Twist™ and Trident Wild Blueberry Twist™.
A new kind of novelty
Innovative packaging and a value-added element (like whitening or energy) have made gum and mints adult novelties, observes Fred Scharar, general manager and national sales manager for SP Enterprises of Las Vegas. Novelty gum used to be aimed at children, but that market has grown so much smaller, he says.
"Kids now chew adult gums," Scharar says. "They have matured so much in the last years. Kids eat what’s trendy and what they see in commercials. Ten and older is the market for adult novelties now."
SP makes the popular Gold Mine gum that has reached nostalgia status, but holds the same appeal to kids as it always did. It still comes in a little burlap bag. But in general, the company is moving toward becoming more of a traditional candy company and eliminating a lot of its novelty-based lines. The problem with novelties, says Scharar, is the constant pressure to be different.
"We’re tired of hearing wholesalers and distributors say, ‘So what have you got that’s new?’" he says.
Fresh and fruity
Fruit flavors are big in both gum and mints when it comes to product expansions. They add a new dimension when combined with a mint flavor, especially when fruit flavors themselves are combined. The proliferation of a wide variety of fruits now available to consumers all year round has made these products attractive to those seeking new taste sensations.
"There is a definite trend in the mint category toward consumption of fruit flavors," says Dan Marquardt, Mentos marketing director for Perfetti Van Melle USA in Erlanger, KY. "For example, Mentos Fruit rolls are the fastest selling mint item in convenience stores and Mentos Strawberry rolls are not far behind." Sales of both have increased dramatically this year, with Fruit rolls up 38 percent and Strawberry rolls up 27 percent CYTD, according to IRI scanner data.
New from the Wm. Wrigley Jr. Company for its number-one selling Orbit gum is Orbit® Raspberry Mint, its first berry flavored offering. Also new is Orbit® Mint Mojito with its exotic cooling sensation. Wrigley Eclipse Fusion™ breath fresheners combine fruit flavors and mint in the new peppermint melon, peppermint berry and freshmint tropical varieties. Even Hubba Bubba® is going fruity with its new Max Island Punch.
The ever popular Tic Tacs has jumped on the fruit bandwagon with its new Cherry Passion flavor that combines cherry and passion fruit, as well as Bold Berry Sour.
Packaging a plus
The biggest area of innovation for gum and mints is packaging, which is being designed for eye appeal, convenience, portability, and even specific groups.
"Gum packaging has mimicked and copies what has happened in the mint segment," says Steve Schuster, president of Schuster Products LLC of Milwaukee, WI. "It’s one of the areas where you can innovate and differentiate yourself and get higher margins."
Schuster Marketing is working with its compressed gum technology to strengthen its Blitz energy gum, which is being repackaged with its blister pack in a slide tin. It correlates with energy drinks, Schuster points out.
Packaging provides a way for newer companies to try to gain a foothold in a category dominated by large, well-established manufacturers.
New Era Brands of Northbrook, IL, is using its Aura Clip ‘n’ Go Mints and Clip ‘n’ Go Gum as a way to make itself known in the marketplace, says Jeff Grossman, president. The products are designed to go on a key ring, back pack, purse or other object so it’s always instantly available.
"Our society is continually on the go," Grossman says. "Everyone wants to make sure they always have fresh breath. That is why we have developed our Aura Clip ‘n’ Go mint and gum line. It is a lifestyle brand for people on the go."
Being one of the newer players, Grossman feels that the "Aura Clip ‘n’ Go brand offers enough product innovation, with its packaging as a point of difference, that we are gaining a lot of off-shelf promotion, not just with our core line, but also with our special Breast Cancer pink container [where a percentage of the proceeds goes back to the National Breast Cancer Foundation], which provides a good promotional window for us to introduce our product to new consumers…because marketing is an effective way to market product in this category."
Capitalizing on the popularity of Bratz dolls, Au’Some Candies of Monmouth Junction, NJ, created its first mint for girls and put it in its Bratz Candy Compact, reports Rose Downey, sales support manager.
"The compact is filled with mints that are girl friendly," Downey says. "Not too overpowering, and they can attach it to their backpacks, purses or even their jean jacket belt loop. Bratz is known for little girls and little girls like to act like big girls. They imitate the older girls. Older girls prefer really minty products; younger girls like it a little less strong. Our mints are the perfect complement to the little girls’ taste buds."
Some companies have men in mind when designing their packaging, observes Scharar. "Men are more concerned about appearance these days," he says. "There has been an explosion in men’s products. A leading trend is small packaging for men. We make packages for the business person, the traveler and the person on the go so they can have fresh breath all the time. We think this trend will maintain itself. We make two packs and half rolls. The little flat packs have individually-sealed, small gum pellets inside, giving the appearance that people are getting more than they are. The package raises the price."
Also appealing to men is SP Enterprises’ Corona mints, which come in a container that resembles a Corona can. The company is planning to expand its product line-up to include more adult beverage themes. Other popular products include Cinnamon Hot Lips made with cinnamon oil, its USA Mints and its Poker Mints.
Smaller counts are becoming a trend as well, Scharar says. The amount of shelf and counter space is not as big as it once was. Manufacturers are being told that frontage space on shelves is relatively small. So, 24 to 36 ct. is going down to 12 or 18. Smaller counts also give the perception of selling through faster.
Some packaging has become larger. Wrigley’s new Big-E-Pak bottle container holds 60 pellets and has two re-closable openings, one to pour and share and the other for single servings. It fits in a car cup holder or can be placed on a desk or table top. Orbit White® Bubblemint, Orbit White® Melon Breeze and Eclipse® Polar Ice also come in this larger package.
Wrigley has given its popular Altoid mints a bath and created Altoid Dark Chocolate Dipped Mints. They are available in peppermint, cinnamon and ginger and come in the traditional tin or in a 4-oz. premium stand-up carton.
Distributors key
"Wholesalers and distributors are critical to gum/mint category success," declares Cadbury’s Lozano. "Their ability to work with both retailers and manufacturers as an unbiased third party puts them in the unique position of shaping what truly is the best possible outcome for the category."
Making the best use of retail space is critical. "Understanding the proper mix of gum and mint products based on current trends and growth drivers versus long-held biases toward keeping certain products listed will help determine category success," she says.
Consumers have different needs and different tastes at different times and choose gum or mints as well as different brands within each segment and different flavors within each brand depending on the situation, so both gum and mints are important, says Perfetti’s Marquardt.
"The biggest distribution opportunity with mints is ensuring that planograms include an assortment of brands as well as multiple flavors within each brand," he says.
Smaller companies in the manufacturing, retailing and distribution area being squeezed out, mostly through consolidation, says Scharar of SP Enterprises. Big retailers only buy from big distributors who only buy from big manufacturers. "If you only make one item, forget about it," he says. "Big distributors only want to buy many items from one person.
Distributors want to do orders every week rather than every couple of weeks. They don’t want peaks and valleys. They’re trying to level out the playing field. You don’t have many independent distributors any more. Big companies have slowly pushed independent guys out. Small candy companies are almost gone."
Smaller manufacturers also don’t have the wherewithal to "pay to play," often without a guarantee of orders, Scharar says. The distributors control everything, he adds.
The problem, in Scharar’s eyes, is that innovation in candy traditionally has come from the small companies who come up with the hot item, mostly often a novelty item. If it proves itself, bigger companies may follow suit with a similar product of their own. But bigger companies rarely take the risk of trying to come up with truly innovative products. Scharar predicts American consumers will grow tired of the same old products and there will be a backlash.
Merchandising is another important issue where distributors can play a significant role.
"Because of the impulse nature of the category, novelties are merchandised on the front-end locations by check out," Grossman says. "This space is very limited and we are working with some of our retailers on creating additional space where our product can be merchandised on those front ends with special displays and racks.
Because gum and mints play into current trends and lifestyles, their future looks bright. Companies will continue to find ways to capitalize on their popularity and expand the category.
Cecelia Blalock is a food industry writer based in Savage, MD. She is a regular contributor to Distribution Channels.
Gum and Mint Sources
- Au’Some Candies, (732) 951-8818
- Cadbury Adams USA (973) 909-2040
- New Age Brands (847) 559-0557
- Perfetti Van Melle USA (859) 283-8286
- Schuster Products LLC (414) 543-5555
- SP Enterprises, Inc. (702) 736-4774
- Wm. Wrigley Jr. Company (312) 577-1778
|
|
