February 1, 2005
General line candy/peg bag programs remain popular for their variety and good value—but there’s room for higher quality.
Rebagged confections are currently swinging on their store pegs, as happy, crowd-pleasing candies. Confectioner’s exclusive industry survey last summer found the category to be gaining in popularity. Of the nearly 85 percent of retail/wholesale respondents that had a rebagged program in place, more than 95 percent felt it was an important contributor to overall candy category sales and profit. And numerous retailers mentioned wanting to increase the section with either a new or expanded private label line.
Without variety or value, there would be no general line candy. Indeed, these two factors are tantamount to its success. The private label approach is one way retailers are ensuring the future of both. Buyers claim that with private label rebagged lines, they can have better control over making product adjustments. The goal is to have variety for consumers without overcrowding the pegs. One forward-thinking retailer is making its packaging “tighter and shorter” so the chain can better accommodate innovative candy SKUs.
Quality is expected to step up a peg or two in rebagged candy for the near future. Retailers already claim to be getting more discriminating when choosing lines. Basically, anything that is catching on with in-line candy has crossed over into rebagged as well. As long as it’s a perceived value with updated variety, rebagged candy is expected to remain a clear winner for the candy consumer. n
Play up pricing.
Dollar stores have probably partly dictated the most popular price point in rebagged candy right now—a buck. Two bags for a dollar or one bag for 99 cents are the most popular price levels currently. That’s not to say that higher prices aren’t working right in line with that. They are, according to retailers who have started emphasizing more upscale candy. Chocolate and non-chocolate prices are key here. Some believe they could go as high as $2.99 with chocolate pricing, especially if it were merchandised alongside branded chocolate candy.
Remember the young; remember the old.
Rebagged candy is popular with a variety of ages because of its clear (literally) value. Therefore, it would be wise to merchandise some popular hard candies such as butterscotch and starlite mints for the older set, or perhaps no-sugar rebags for diabetics, and more current candy such as sours and wild gummy shapes, for the kids. This is where secondary spinner racks might work—merchandising no-sugar varieties by the pharmacy, for example.