AWMA UPDATE
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Gearing Up for Gummies

The gummi category remains strong, as new shapes and flavors continue to debut
By Lisa White

Although gummi candy does not have a long history in the United States, these chewy confections have been around for quite awhile.

According to the National Confectioners Association (NCA), based in Vienna, VA, the gummi bear was invented in Bonn, Germany, by candy maker Hans Riegel back in 1922.

It was many years later, in 1981, that this candy arrived in America via the Herman Goelitz Company, which is now Jelly Belly Candy Company.

Gummies took a whole new form in the 1980s, when Trolli gummi worms were created, according to the NCA. This was the beginning of a new market in which new and unusual shapes were developed for kids.

According to Michael Rosenberg, president and CEO of Promotion in Motion, based in Closter, NJ, there are differences between gummies produced in Europe and those made in the U.S. "There are two schools with gummies. The European formula has a higher gelatin content and is rubbery in its consistency. American gummies are softer and chewier, the way U.S. consumers prefer them," he says.

Despite these differences, flavors are universal. Rosenberg says traditional gummi varieties include strawberry, pineapple, orange, lemon and lime. "People look for a traditional flavor mix. Consumers are not looking for bags with just one gummi flavor," he says.

However, the NCA reports that red gummies, in particular, are the most popular.

There is sometimes confusion as to the difference between gummies and fruit snacks, which can look and taste similar, depending on the product line. "Many people lump-in gummi candy with fruit snacks, and there are gummies that look like fruit snacks," says Rosenberg. Yet, while fruit snacks can contain fruit juice, fruit, vitamin C and other wholesome ingredients, gummies are made of gelatin and contain starch-based ingredients. "If a product doesn’t contain fruit, it is not a fruit snack."

Soft and chewy candy like gummies is the leading segment in non-chocolate candy and growing, says Bill Higgins, vice president, marketing, for Cadbury Adams USA in Parsippany, NJ.

Gummi trends
Although manufacturers say there are no groundbreaking trends in this segment, there are new flavor developments.

Higgins says sour candy is showing particularly strong growth at twice the rate of the total non-chocolate segment. "There are now more consumers going to the shelf and looking specifically for new sour candies. Many retailers are devoting sections to sour candy in response," he says.

The biggest consumers of these sour flavors are kids. Jodi Bentele, director of marketing at Round Lake, MN-based Farley’s & Sathers, says, "Sour has been the leading trend in new gummi launches over the past year, with products ranging in intensity from a tangy burst of flavor all the way to mouth puckering levels. Nevertheless, fruit flavors continue to be the best selling items."

Rose P. Downey, vice president of operations at Monmouth Junction, NJ-based Au’Some Candies, concurs that sour flavors are big sellers. "We also are seeing much more private label gummies. There is much more of a selection in shapes, textures and flavors than years ago," she says.

This private label trend is universal in the confection industry, as national chains continue to develop their brand strategies over the past year, says Bentele. "Retailers need to be cautious when implementing these changes so they do not alienate consumers loyal to a national brand. They should offer a mix of private label and national brand gummies in their candy sets to maximize impulse purchases," she says.

According to Tom Taunton, vice president of sales at Gurley’s Foods, located in Willmar, MN, this category is influenced by imports, particularly from China. "There is still the 80/20 rule with gummies, because bear and worm shapes are a predominant share of the market and always have been," he says.

Another big trend is that an increasing number of companies that did not previously offer gummi candy are seeing the potential for these products and adding lines to their offerings. For example, The Hershey Company recently expanded its Jolly Rancher hard candy line to incorporate a gummi version.

"The reason is that there are few barriers for entry into this category," says David Plotnik, marketing manager at Ford Gum & Machine Company in Lincolnshire, IL. "There are endless ideas for new designs and they are selling. Also, retailers are opening up their shelves for new, innovative gummi sizes and shapes. It is an easy category to get into, and the grosser the product, the better."

One of the reasons this category sustains its popularity is that it crosses a wide demographic boundary. "Kids love them and adult women love them," says Rosenberg. "The sour side of the gummi business, in particular, has grown nicely in the last five to 10 years. And there seems to be a decent market for novelty gummies in almost any shape imaginable. However, this is a smaller part of the market, with bears and worms continuing to be the main sellers. Our phones ring off the hook for these products."

New products and packaging
There have been a number of new gummi product introductions recently, most centering around unusual and innovative shapes.

Sour Patch Extreme is the latest soft and chewy confection launched by Cadbury Adams. The line combines different flavor combinations in each piece of candy, including sour apple and strawberry; orange and blue raspberry; and watermelon and grape.

Ford Gum & Machine Company recently unveiled its Lunchbox Gummies Taco Factory line featuring a variety of flavored ingredients to make four complete gummi tacos. Kids can construct their own gummi tacos with the kit’s candy taco shells, meat, cheese and tomatoes.

Plotnik says retailers respond to creative product design and packaging. "Gummi manufacturers are getting innovative with packaging. Retailers support large one-piece gummies and multi-piece blisters," he says.

Licensing agreements, popular in the confection segment, also have had an effect on gummi introductions. For example, Au’Some Candies recently launched its line of Nintendo Gummis, which are three-dimensional gummies in the shape of Nintendo characters. "We produce them in both our Nintendo Game Boy Advance containers and in peg bags, which are a big trend. We also created a Nintendo Game Cube novelty package filled with fruit flavored gummies," Downey says.

Bigger bags of these chewy candies also support bigger rings at the register. Although Gurley’s Foods has stuck with the traditional bear and worm gummi shapes, the company has focused on updating its packaging in this segment. "We offer larger bags with line extensions, similar to the king-size candy bar," says Taunton. These include a two-for-a-dollar bag and a 99 cents bag. "In the last two years, we moved up to a $1.99 bag, which is not a barrier for convenience stores."

Farley’s & Sathers introduced a number of new gummi items at this year’s National Association of Convenience Stores (NACS) show in Las Vegas. These include three Trolli theater boxes, Sour Brite Crawlers, Trolli Classic Bears and Trolli Squiggles, along with Trolli King Size Sour Brite Crawlers and Trolli Classic Bears. Two Trolli pre-packed shippers are available that can be used as part of a floor display or hung on an end cap or side kick.

Although Buddy Bear Gummi Bears are its flagship product, Promotion in Motion has had a lot of interest in its Nuclear Squirms sour gummi worm line, according to Rosenberg. "Business is growing rapidly, particularly in the convenience store segment. We also are noticing more distribution of fun-size gummies for Halloween," he says.

Assistance for c-stores
Higgins says there has been strong growth of soft and chewy candies in the convenience store channel. "The key is to carry a variety of formats and flavors, since that's what consumers are looking for," she says.

"Single-serve or immediate consumption packages continue to be the top performers across food, drug, mass and c-store channels," says Bentele. "C-stores ‘speed to market’ allows these retailers to react more quickly to item introductions, as they focus on delivering what is new in the category to their frequent shoppers. Gummies, initially thought to be a short-lived fad, have become as much a staple item as orange slices and Starlight mints. [For this reason], these items should be merchandised in multiple locations throughout the store."

Gurley’s Taunton agrees that gummies are a natural fit for c-stores. "They are an impulse item that retailers are accustomed to and have grown to like and trust," he says. "We do a number of things to assist retailers, including providing pricing support and assistance at the retail level with counter racks, floor displays and shippers."

Ford Gum & Machine also provides different merchandising options for its gummi lines, including shoppable counter and floor displays and sidekicks. "Our largest support is with trade advertising. The most important thing is that the product is priced under $1," he says.

Manufacturers predict a bright future for this candy segment. "Gummies will enjoy solid growth like in the past," says Taunton. "These products have universal appeal across all nationalities. For example, they are one of the top-selling items for Hispanics."

Plotnik of Ford Gum & Machine says the gummi category will continue experiencing growth and innovations in product and packaging design. "We may start seeing different categories combining with gummies to create new products," he says.

Farley’s and Sathers’ Bentele agrees. "As newer manufacturing technology is implemented, consumers can expect to see growth in liquid filled gummies and multiple flavored gummies," she says.

For a relatively new candy segment by industry standards, these positive predictions will keep gummies at the forefront of the non-chocolate segment for the foreseeable future.

Lisa White is a freelance writer based in Cary, IL, and a regular contributor to Distribution Channels magazine.


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