Spotlight on Candy and Chocolate Products

Whether it’s a handful of jelly beans enjoyed on Easter or a wedge of chocolate consumed after a stressful day candy and chocolate satisfy a person’s cravings for something indulgent in a way nothing else can.

But unlike many other products, candy and chocolate often are purchased on impulse, meaning consumers aren’t necessarily determining what brand to buy before a shopping trip. So if they want their store brand candy and chocolate products to sell, retailers need to make sure the products are in plain view and look absolutely scrumptious.

To see what retailers are doing well and not so well here, we visited the candy and chocolate section of three supermarkets: a Hy-Vee store in Sycamore Ill. operated by West Des Moines Iowa-based Hy-Vee Inc.; a Schnucks store in DeKalb, Ill., operated by Schnuck Markets, St. Louis; and a Kroger store in Ottawa, Ill., operated by Kroger Co., Cincinnati. Our visits took place in the early and midafternoon on a weekday in early April.

Hy-Vee

General observations: This Hy-Vee stores candy products are located on one side of an aisle that runs horizontally across part of the store’s left-hand side (looking into the store from the front entrance), dividing the top and bottom halves of the store (aisles in which run mostly vertical). To the right of the aisle is a smaller display for chocolate products. Foot traffic was moderate for the early afternoon.

Of the three stores we visited, the Hy-Vee store has the widest selection of store brand candy and chocolate. We counted 35 SKUs of store brand candy in smaller bags (roughly 6 to 8 ounces) under two brands: Hy-Vee Candy (gummy bears and worms, gumdrops and more) and Hy-Vee Classic Candies (containing pieces of classic candies such as Nik-L-Nip, Sugar Daddy and more). We also found SKUs of store brand candy in larger bags (roughly 16 to 20 ounces) under the Hy-Vee Candy brand (mints, orange slices and candy corn) and Hy-Vee brand (licorice twists and pieces). As for chocolate, we found four SKUs (chocolate-covered cherries, almonds and more) in 16-ounce tubs under the Hy-Vee Select brand.

The upside:

• ■ The section was clean and well-organized.
• ■ The store prints NuVal nutritional program scores on price tags for all store brand and national brand candy and chocolate products.
• ■ The store hangs its bags of Hy-Vee Classic Candies and smaller bags of Hy-Vee Candy in a block fashion, giving the brands powerful exposure, especially next to the smaller block of Brach’s bagged candies to the right.
• ■ The store sells the bags of Hy-Vee Classic Candies and smaller bags of Hy-Vee Candy in a two-for-$3 deal and communicates the deal via price tags and on Hy-Vee Candy bags. A number of the Brach’s counterparts sell for $1.99 each.
• ■ The bags of Hy-Vee Classic Candies sport retro graphics, giving the products nostalgic appeal.
• ■ We found shelf talkers cross-merchandising $9.99 Hy-Vee Spring Bling flower bouquets on the candy shelves.
• ■ The store placed bulk bags of Hy-Vee licorice twists and pieces next to their Twizzler brand counterparts, then discounted the store brand items by 20 cents and communicated the deal via “Price Decline” tags.

The downside:

• ■ We spotted several out-of-stock store brand items.
• ■ The store hangs clip strips holding candy bags at the ends of various aisles throughout the store, but none of the bags are under a private brand.
• ■ The store’s special section for natural and organic products houses a number of chocolate and candy products, but none are under a Hy-Vee brand.
• ■ None of the products in the store’s special Easter display were under a Hy-Vee brand.

Schnucks

General observations: The Schnucks store we visited houses its candy and chocolate treats on one side of a vertical aisle that runs down the middle of the store, starting near the checkout area in the front (looking into the store from the front entrance). One side of the neighboring aisle on the left housed Easter-themed candy and chocolate — all under national brands. Foot traffic was moderate for the early afternoon.

All store brand chocolate and candy sells in small bags (6 to 8 ounces, roughly) under the Schnucks Sweet Shop brand. We counted close to 30 SKUs of candy and five SKUs of chocolate-covered treats.

The aisle was pretty clean, organized and well-stocked.

The upside:

• ■ The store hangs all of its Schnucks Sweet Shop bags in block fashion, helping the products to stand out as a family.
• ■ The store was offering a 10-for-$10 deal on the bags of candy, and communicated the deal via a tag beneath each facing.

The downside:

• ■ Several national brands were offering products in 10-for-$10 deals, making the discount on Schnucks Sweet Shop products less enticing.
• ■ None of the products in the store’s special Easter display and section were under a Schnucks brand.

Kroger

General observations: The chocolate and candy section at the Kroger store we visited takes up much of one side of a vertical aisle on the left-hand side of the store (looking into the store from the front entrance). Foot traffic was moderate for the midafternoon.

Of the three stores, the Kroger store has the smallest selection of store brand candy and chocolate. In fact, we couldn’t find any store brand chocolate products. All store brand candy sells in small bags (6 to 8 ounces, approximately) under the Kroger brand. We counted close to 20 SKUs of store brand candy

The upside:

• ■ The store hung yellow tags underneath its store brand bags of candy to communicate 10-for-$10 deals.
• ■ Kroger brand candy products are merchandised in block fashion, making them easy to spot.

The downside:

• ■ The majority of products had yellow tags communicating deals beneath them, making the 10-for-$10 tags underneath the Kroger brand products hard to spot.

Not all about price

Placing a quality product in ho-hum packaging and simply throwing it on shelves isn’t enough to make it sell. Barry Rosenbaum, president of Nassau Candy, Hicksville, N.Y., says retailers also need to communicate the quality of those products to shoppers.

To do so, retailers need to understand and believe in packaging’s marketing potential — and invest in hiring a talented package designer, says Brad van Dam, president and CEO of Hollister, Calif.-based Marich Confectionery.

“Store brands increasingly look like smaller artisan specialty brands with high-quality styling and design,” he states.

Design could include imagery of a product’s ingredients — such as fruit, nuts, etc. By featuring such imagery on the front of the pack, retailers offer shoppers an “immediate visual signal” that communicates the product’s flavor profile, says Kerry Laramie, vice president of the Praim Group, Salem, Mass.

In terms of placement, Rosenbaum notes that retailers need to make sure they’re giving their own-brand candy and chocolate products prime space.

“Your product needs to be in a high-traffic, well-lit area,” he says.

“Front-and-center” placement is critical, as are multiple placements, adds Sheila Shechtman, CEO of Shrewsbury, Mass.-based Hebert Candies.

At-checkout displays are especially useful for selling private label candy and chocolate, Laramie says. She also recommends that retailers make sure point-of-purchase (POP) displays let the products speak for themselves.

As for placement within their primary section of the store, don’t assume that the traditional “next to the national brand equivalent” placement always is the way to go.

“The brand should be merchandised in a way that stands out as a collection,” Shechtman states, “not randomly placed in between national brands in singular fashion.”

And don’t underestimate the power of cross-merchandising, Shechtman says.

“For larger retailers and c-stores, cross-promoting with another product category is [a] great way to generate sales and maximize exposure,” she explains.