From chocolate bars to sour gummies, confectionery sales rake in more than $37 billion annually, according to the National Confectioners Association’s recent research report, “Sweet Insights: State of Treating 2020.”

Consumers continue to count on convenience stores as a source for their sweet indulgences. “The convenience channel was No. 2 in terms of market share for candy (35.7%), just slightly behind only grocery (37.3%) in 2018,” said Jayme Gough, analyst for NACS. The category continues to do well, with 3.17% of in-store sales, according to preliminary data from the NACS State of the Industry Report of 2019 Data, and sales held flat year-over-year.

At The Pop Stop, a drive-thru-only convenience store in Amarillo, Texas, candy is thriving. “It’s a great category for us, and people are snapping up treats for themselves all the time,” said owner Bobbie Jo Krutsch.

Candy by Convenience

“Sweet Insights” found that the top four reasons people purchase everyday sweets in a store other than a supermarket include better variety, lower prices, convenience and impulse buy. “When it comes to purchasing confections, shoppers have three key motivators—satisfying a craving, creating a fun experience and great taste,” said Jade Reddington, director of category management for candy company Ferrara. “We see c-stores honing in on these motivators through the variety of selection and innovation offered in their stores.”

“Consumers today are reaching more and more for confections and see it as a moment of permissible indulgence,” added Jim Dodge, vice president convenience at Mars Wrigley U.S. “When consumers enter a convenience store, they are looking for just that—convenience and to satisfy their needs quickly.”

Because of these factors, retailers consider candy to be an integral part of their in-store mix. “Candy is a good category for our store to have because it’s one of the last remaining profitable categories,” said Aaron A., manager of Pilot Mountain Grocery in Pilot, Virginia. “While confectionery sales have been flat lately, we still see candy as a viable category.”

Candy sales tend to spike four times annually: Valentine’s Day, Easter, Halloween and the winter holidays.

Candy by Trends

The chocolate subcategory provides the largest percentage of sales for the category at 45.6%, according to preliminary NACS State of the Industry data from 2019. The second-largest contributor was non-chocolate bars (20.4%), followed by gum (14.8%), bagged/repackaged peg (10.5%), rolls/mints/drops (5.0%) and novelties/seasonal (1.4%).

At Pilot Mountain Grocery, the tried-and-true candies still sell the best. “We’ll get a little pop for the new flavor or design, but then people revert back to their old favorites,” Aaron said.

That’s what The Pop Stop has found, too. “Our customers like to try new items, but we still sell a lot of the old standbys as well,” Krutsch said.

Candy innovations that combine different types of chocolate treats into one have been a boon for retailers, as well as mixing different textures, such as creamy and crunchy. “Flavor profiles like sour and fiery have sprung up, as well as adding a variety of nut butters other than peanut butter,” Gough said.

“Millennial consumers especially love mashups, and combining these flavor profiles has provided growth to the chocolate category,” said Glenn Frazier, Hershey’s director of category management for convenience stores.

“A key industry trend we’ve seen over the past year—and will continue to see—is the shift toward exciting flavor selections, including duo mashups with new and existing flavors,” said Brandi Unchester, marketing director for confections and seasonals for Promotion In Motion. “There’s also an obvious appetite for consumers to enjoy a familiar snack with a new twist.”

“People will go for the newest thing in candy, and that always gives us a little uptick in sales,” said Stuart Morton, owner of Allards Stage Stop in Saint Ignatius, Montana. “More of the popular lines have come out with multiple versions, which can help sales, too.”

The NACS Convenience Tracking Program (CTP) comprises consumer behavior analytics from more than 10,000 convenience store shoppers across 42 states, representing the most comprehensive consumer-driven metrics available to the industry.

To learn more about CTP and how to participate, contact Leroy Kelsey, director of industry analytics, at [email protected] or visit www.convenience.org/ctp.

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Seasonal Spikes

Candy sales tend to spike four times annually: Valentine’s Day, Easter, Halloween and the winter holidays. “More than 60% of the category’s sales come during those four periods, with … 16% of sales generated by seasonally coded items ... unique to the season because of colors, shapes, packaging or flavors,” reported “Sweet Insights.”

“Anything seasonal flies off the shelf in candy,” Aaron agreed. “We have great success with seasonal candy items.”

Retailers can capitalize on these holidays by bringing in seasonal flavors and varieties in attractive displays out of the candy aisle. “Retailers can also use one larger primary display around the holidays and secondary aisle displays that tie into the holiday theme to spur even more sales,” Gough said.

Mars Wrigley encourages retailers to think outside the four core holidays with targeted promotions and displays during other times of the year. For example, the company offers its “Red, White & Blue” products during the summer. “We want to meet consumer need in the moments that matter to them with a variety of seasonal products,” Dodge said.

Novelty candy selections for different holidays, plus movie tie-in candies, can entice parents and children to the category as well. At The Pop Stop, movie tie-ins for films aimed at kids do extremely well. “Those types of themed candy boost interest and sales in the category,” Krutsch said.

However, to take full advantage of seasonal offerings, “make sure you display the products early, as consumers react positively to seasonal shapes and colors,” Frazier said.

Perfect Placement

As many studies have shown, most confectionery purchases are made at the shelf. “We know that consumers have brands that they love and look for at shelf, but thoughtfulness in shelving can drive trial in the category,” said Reddington. “Retailers can also encourage purchases through a variety of consumer touchpoints, such as secondary displays, signage and cross-promotions.”

Allards Stage Stop put the candy aisle directly across from the register and as the main thoroughfare to soft drinks. “That placement helps to drive sales without a lot of extra effort on our part,” Morton said.

Because confectionery isn’t a planned purchase, retailers can leverage endcaps to encourage shoppers to enter the confectionery aisle. “They should also leverage highly visible destinations throughout the store to encourage consumers to treat themselves during their shopping journey,” Dodge said.

Speedy G’s Convenience Stores puts candy promotions closer to the register, which helps with sales. “That’s about all we do because the category sells itself,” said Julie Gilby, a manager with the chain’s trio of locations in Velma, Elmore City and Ringling, all in Oklahoma. “We are carrying more peg and bite-sized candy because more people are eating and driving and want the easier packaging and product size.”

Flavor profiles like sour and fiery have sprung up, as well as adding a variety of nut butters other than peanut butter.

Pilot Mountain Grocery has a 12-foot candy aisle, as well as candy racks on the counter and floor displays throughout the store. “We move the displays around frequently in order to keep interest in the category fresh,” Aaron said.

Hershey’s Frazier recommended optimizing the space with the right allocation of chocolate, non-chocolate, gum and mints to capture impulse candy sales. Using candy in cross-category promotions with fountain beverages and foodservice bundles also will build baskets. “Have candy within arm’s reach of transaction points by placing top-selling items at the register,” he added.

For The Pop Stop customers, Krutsch has “cute little signs with the candy packaging on it along the drive-thru lane, so as they’re waiting, they’re looking at those. We also post about the category often on social media and have additional displays right by the payment window.”

A Consistent Future

Confections continue to be a highly impulsive category with good margins for retailers. “Flavor innovations and a variety of package sizes are offering consumers more choices than ever before,” said Unchester with Promotion In Motion. “Consumers who shop for confections are looking for items that have a new and exciting element and are easily accessible to grab-and-go.”

“Candy is the ultimate convenience item,” said Morton. “When [customers] want candy, they’ll find something they like in the candy aisle or at the register—we don’t see that changing,” he said.

“Retailers continue to invest in driving experience for their shoppers, and the confection category is a fun and engaging one,” Frazier concluded. “Candy continues to dominate the category among all other snacking categories and has a bright future in the convenience channel.”

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