Candies: cheap success

By: trademagazin Date: 2006. 11. 20. 08:00

One out of three candies is a private label product. Average prices are falling, and larger size bags are becoming more popular. Candies seem to be getting „discounted”.
It is apparent from the graphs prepared by ACNielsen that the 401­–2500 square meter category takes an extremely high share (40 per cent) from the total sales of candies. Furthermore, it has gained 10 per cent in quantity, compared to the preceding period. This is a good illustration of how important price is for Hungarian customers, even in such an impulsive category. This is not exactly true for candies from Győri Keksz, according to Timea Kovacs, KAM assistent. – The most important channel for us is the under 200 square meter category, discount chains and hype markets only come second and third. – Gyori Keksz however, plays no role in the segment which is pulling the category towards discount chains.
Discounts have a 60 per cent share in the sales of gum, while the market share of private labels in the segment are over 50 per cent. – The spectacular growth of gum sales seem to be slowing down – says Imre Horváth, managing director of Sweet Point Kft. He believes that sugar free products have the best long term (5-10 years) prospects, untill consumers turn to sugar once again.

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