Sweet News For Chocolate Lovers

Studies suggest that chocolate offers health benefits, giving retailers an opportunity to position store brand chocolate as a healthful indulgence.

For all the chocoholics out there, the news is sweet.

The England-based University of Cambridge released a study last year that found people who consumed the most chocolate had a 37 percent lower risk of developing heart disease and a 29 percent lower risk of suffering a stroke than those who consumed less chocolate. The study examined the consumption of dark chocolate, as well as milk chocolate and other chocolate confectionaries.

Also, another new study, this time funded by the National Institutes of Health, revealed that people who eat chocolate regularly tend to be thinner than those who never or very rarely consume chocolate.

Trends with traction

That's great news not only for chocolate lovers, but also for chocolate manufacturers such as Hicksville, N.Y.-based Nassau Candy.

"Wellness and better-for-you products are the trend," says Barry Rosenbaum, president of Nassau Candy, "and there's a segment of the marketplace that wants to indulge but wants to ensure that the product has some benefit. Chocolate fits right in with this trend, particularly dark chocolate.

Daniel Granderson, market research analyst with the Packaged Facts division of Rockville, Md.-based MarketResearch.com, coneurs.

"When it comes to chocolate candy, chocolate-makers will continue to capitalize on health benefits," he adds. "We are seeing a trend featuring better-for-you chocolate treats that seek to piggyback on the numerous reports touting the benefits of chocolate. Chocolatiers are going all-natural, are adding antioxidants, and are creating fruit-centric chocolate products."

Rosenbaum adds that significant growth is occurring in premium chocolate products in a number of retail channels.

"The premium product interest is in self-consumption at impulse price points," he says.

Matthew Hudak, U.S. research analyst at Euromonitor International, Chicago, adds that not only will there be more upscale chocolate products, but that sizes will be smaller, too.

"It's going two distinct ways for chocolate," Hudak explains. "First, there will be more premium offerings with unique flavors, like bacon inside a chocolate bar. Second, [there will be] smaller sizing all around with more bite-size and small-portion offerings."

Hudak says a consumer preference for convenience and new taste sensations is driving these trends.

Rosenbaum adds that Nassau Candy is following the trend toward smaller confections by providing many miniature products.

"From a consumer point-of-view, it has a higher-perceived value because you are getting more pieces per pound," he says.

Trends on the horizon

An up-and-coming trend in candy and confections that retailers might want to keep an eye on for future store brand product development is appearing in the foodservice industry, says Mary Chapman, director, product innovation for Chicago-based market research firm Technomic.

"Restaurant applications include dessert toppings, including frozen yogurt bars," she explains.

Dessert toppings go hand-in-hand with dessert flavors, adds Rosenbaum, noting that Nassau supplies chocolates with flavors such as tiramisu.

"Red velvet caramel and flavors such as pumpkin spice are also some of our most popular," he notes, "just like the cakes."

In terms of packaging, premium chocolate has been looked at as a seasonal item, Rosenbaum says, but Nassau doesn't see it this way — and retailers might want to look outside seasonal opportunities as well.

"We ask ourselves how to bring an indulgent product to the consumer in a way that he or she can try it on an everyday basis at a popular price point," he says.