This website requires certain cookies to work and uses other cookies to help you have the best experience. By visiting this website, certain cookies have already been set, which you may delete and block. By closing this message or continuing to use our site, you agree to the use of cookies. Visit our updated privacy and cookie policy to learn more.
This Website Uses Cookies
By closing this message or continuing to use our site, you agree to our cookie policy. Learn More
This website requires certain cookies to work and uses other cookies to help you have the best experience. By visiting this website, certain cookies have already been set, which you may delete and block. By closing this message or continuing to use our site, you agree to the use of cookies. Visit our updated privacy and cookie policy to learn more.
Candy Industry logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Candy Industry logo
  • News
    • Candy and Snack Trends
    • Supplier News
  • Candy & Confections
    • Chocolate
      • Gourmet Chocolate
    • Better-for-you confections
      • Energy/Snack/Nutrition Bars
    • Gums & Mints
    • Gummies & Jellies
    • Hard Candies
    • Licorice
    • Novelty Candies
    • Snacks
    • Sugar-Free Candy
    • Vegetarian
  • New Products
    • Chocolate New Products
    • Non-Chocolate New Products
    • New Novelty Candy
    • New Snack Products
  • Ingredients
    • Artificial and Natural Sweeteners
    • Candy Flavorings
    • Cannabis
    • Chocolate Ingredients
    • Fats & Oils
    • Fruits & Nuts
    • Healthy Additives
    • Natural Candy Colors
    • Starches
    • Sustainability
  • Top 100
  • Technology
  • Shows
    • Events Calendar
    • Show Coverage
  • Kettle
    • Kettle Awards
    • Kettle Recipients
  • Opinion
    • Blog
  • The Magazine
    • Current Issue
    • Digital Editions
    • Buyers Guide
    • Single Copies
    • Classifieds
  • More
    • Video
    • Classifieds
    • Market Research
    • Webinars
    • eNewsletters
    • Associations
    • Candy Industry Store
    • Custom Content & Marketing Services
    • Top 100 & Sweet 60
  • Contact
    • Advertise
Home » Blogs » Candy Industry Blog » 'Premium…not an attribute, an attitude'
Berniepacyniakheadshot
With more than 30 years experience in B-to-B reporting, writing and editing — the bulk of which was dedicated to covering the bakery, confectionery and snack industries — Pacyniak has chronicled changes within the food industry since the early 1980s. A Boston University journalism degree graduate, he worked for a variety of publications before joining BNP Media in 1994 as editor of Snack Food & Wholesale Bakery magazine. In 2001, he took over as editor-in-chief of Candy Industry until 2018.
Opinion

'Premium…not an attribute, an attitude'

April 20, 2011
Bernie Pacyniak
No Comments
Reprints


I admit, it was bit strange not being in Hershey, Pa. for the PMCA’S 65TH Production Conference. For the past 10 years, I’ve been making reservations at the Hershey Lodge, always noting that I’d like to stay in the “Towers” section.
 
Bill Ryan, an early mentor of mine when I first took stewardship of the magazine in 2001, advised me to stay in that section of the Lodge to facilitate comings and goings. Ryan, who’s retired from the industry but continues to consult for ADM Cocoa, was right on the money. (Belated thanks Bill for that advice and much more!).
 
Hence, driving up to Lancaster from Philadelphia required a new set of MapQuest directions. As with every change, there’s always an adjustment period. But overall, the new venue passed muster and will only continue to improve as both parties become more familiar with each other’s needs and wants. What didn’t change at this year’s PMCA Production Conference was the caliber of presentations. In fact, I think this year’s group of speakers was one of the best slates that I can remember.
 
Thomas Linemayer, president and ceo of Lindt USA, and the keynote speaker for the organization’s annual awards dinner, provided attendees with an excellent overview of the premium market as well as his company’s positioning.
 
One of the comments he made that stood out for me was: “Premium is not an attribute; it’s an attitude.” It’s a truism that premium consumers ― about 20% of the buying populace seeks out premium products ― latch onto. Moreover, as Linemayr points out, everyone from baby boomers and highly educated and high-income buyers to ethnics and millennials are drawn to going premium.
 
This range of buyers in premium dovetails with different rationales for premium chocolate. Gifting accounts for about 15% of the premium chocolate purchases. These purchases, however, account for 40% of the category’s revenue. Self-consumption, however, represents 85% of purchases made in the premium sector, delivering 60% of the dollars.
 
What’s clear here is that premium chocolate purchases have become, as Linemayr says, “a daily affordable luxury,” one that encompasses self-reward as well as sharing.
 
Currently, in the food, drug store chain and mass merchandiser segments, premium purchases account for about 9.8% of all dollars spent. Within chocolate, nearly 17% of all growth comes from premium.
Despite the Great Recession, premium chocolate ― albeit buffeted by the economic storm ― still posted solid gains. Now that all of us have survived the downturn (I’m still waiting for my T-shirt), we are more willing to reward ourselves for working harder, shopping more scrupulously and saving more.
 
There’s nothing like a good piece of chocolate to deliver, as Linemayer says, the ultimate reward. According to Packaged Facts, premium chocolate category will grow at an annual rate of 5.3% between 2009 and 2014. Lindt USA, as well as its sister company, Ghirardelli Chocolate (which will be featured in Candy Industry’s May issue), have remained true to their “DNA,” which is a long and storied heritage involving creating and perfecting premium chocolate.
 
Anyone who wanders the candy aisle in today’s supermarkets can’t help but notice how the premium chocolate segment has shrunk, from 8 ft. to 4- and even 2-ft. sections. Sure, the economy was partly to blame. But the greatest factors involving the shakeout stemmed from consumers and retailers.
 
Excessive variety slowly gave way to value. Again, it’s important to recognize that value isn’t synonymous with lower price. Rather, it entails quality and consumer satisfaction first, both of which are framed by realistic pricing. As consumers tried a broad range of products, many encouraged by couponing, it became clear that many products weren’t delivering premium. Trial purchases weren’t followed by return purchases. Simply put, consumers don’t want “wannabe” premium products. And they’ve shown time and time again that they’ll pay for good chocolate, good flavors and innovative pairings with chocolate.
 
Finally, toward the end of his presentation, Linemayr showed a graph that detailed per capita consumption of chocolate and premium chocolate throughout the major global markets. The United States stood at 11.3 lbs. per capita, with premium a mere 0.3 lbs. All of the major chocolate consumptions nations, beginning with Switzerland at 23.7 and ending with Australia at 13.1, had much larger premium chocolate consumptions rates, from 4.3 lbs. (Switzerland) to 1.6 lbs. (Australia).
 
It’s debatable whether the U.S. confectionery industry can boost per capita consumption of chocolate in America to much higher rates (although it’s been there in the past). Nevertheless, it’s clear that there’s tremendous upside to per capita premium chocolate consumption. After all, who doesn’t want a better piece of chocolate? Large and small companies that can deliver that consistently will grow both the category and their businesses.

Blog Topics

Bernie Pacyniak

Crystal Lindell

Alyse Thompson

Recent Comments

Nutraceutical Product - Renatus NOVA

It is important to eat healthy lunch. According...

Mushroom

Buy from online shopping store or restaurants...

chocolate Stone Melangers and Nut Butter Grinders

Berniepacyniakheadshot
With more than 30 years experience in B-to-B reporting, writing and editing — the bulk of which was dedicated to covering the bakery, confectionery and snack industries — Pacyniak has chronicled changes within the food industry since the early 1980s. A Boston University journalism degree graduate, he worked for a variety of publications before joining BNP Media in 1994 as editor of Snack Food & Wholesale Bakery magazine. In 2001, he took over as editor-in-chief of Candy Industry until 2018.
You must login or register in order to post a comment.

Report Abusive Comment

Subscribe For Free!
  • eNewsletter
  • Online Registration
  • Subscription Customer Service
  • Mobile App

More Videos

Popular Stories

Kinder surprise candy

Kinder brand seeing success in U.S. confectionery market

Sugarfina

Bristol Luxury Group buys Sugarfina for $15.1M

John Downs NCA

NCA’s John Downs on cannabis: ‘Things are happening so fast’

FDA logo

FDA: CBD not generally recognized as safe for human, animal food

Mars Galaxy vegan bars

Mars’ new vegan Galaxy chocolate bars highlight growing trend

CIN_ProductOfWeek_360-1.jpg

Events

January 1, 2030

Webinar Sponsorship Information

For webinar sponsorship information, visit www.bnpevents.com/webinars or email webinars@bnpmedia.com.

View All Submit An Event

Poll

Healthier Food Options

A recent Nielsen report shows that consumers are calling for healthier options from food manufacturers. Do you think consumers will actually buy healthier versions of their favorite candy and snacks if they’re made available?
View Results Poll Archive

Products

Natural Food Flavors and Colorants, 2nd Edition

Natural Food Flavors and Colorants, 2nd Edition

Although many foods are appealing, and even perceived as natural, in spite of containing synthetic additives, consumer increasingly prefer food products which are fully natural.

See More Products

CIN_ProductSubmissions_360.jpg

Candy Industry Magazine

june 2019 cover

June 2019

The June 2019 issue features an interview with a natural candy color specialist, a look at how chocolate bar makers can stand out from the crowd, our global state of the candy industry, and more.
View More Create Account
  • Resources
    • Archives
    • Buyers Guide
    • Current Issue
    • Contact Staff
    • Food and Beverage Group
    • List Rental
    • Media Kit
    • Newsletter
    • Order Reprints
    • Subscribe
    • Survey And Sample
  • Helpful Links
    • Global Top 100
    • North American Sweet 60
    • New Product Form
    • Connect
    • Want More
    • Privacy Policy
  • Multimedia
    • Videos
    • Galleries
  • Advertise

Copyright ©2019. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing