A Sticky Situation

Gum and mints are expected to face a tough year, but product innovation and extra value could turn the tide

In the wake of a tough recession, confectionery products had a sweet comeback in 2011 and that trend is expected to continue this year. However, not all candy products are doing as well as others.

Per-store sales of chewing gum dropped nearly three percent in 2011, with only a minor gain forecasted for 2012, according to data from the Convenience Store News 2012 Forecast Study. Mints did slightly better and saw a small sales increase in 2011, but a 3-percent decline is expected this year.

What's giving gum and mints such trouble? Attendees at this year's CSNews Forecast Council offered several possible reasons, such as a lack of category innovation and consumer resistance to price increases.

Other convenience store retailers, though, speculate that the root cause might be more indirect.

"I think one of the bigger reasons for decline is the continued volume reduction of cigarettes being sold," said Paul Casadont, Americas merchandising manager for Chevron Corp.'s ExtraMile. "Market basket data often shows high correlation with gum/mints and cigarette purchases, and with cigarette volumes continuing to decline, it's not unexpected that gum and mint sales would decline as well."

Casadont noted that many tobacco users have switched to other tobacco products (OTP), a category that is seeing strong growth in c-stores. "Some of these other tobacco products being purchased are similar to gum or mints, he said, "so these consumers may not be purchasing gum or mints as a result."

And he isn't the only one to see a possible connection between mints and OTP. In September, the Colorado Department of Health requested that R.J. Reynolds voluntarily stop selling dissolvable tobacco products, such as its Camel Orbs, within the state's borders, citing the potential that they might be confused for mint candy.

In the eyes of at least one candy supplier, however, the reason for the decline of gum is more straightforward. "The gum category is experiencing softness given the economy and lower consumer spending. Fewer trips to the store mean fewer gum purchases," said Jennifer Jackson-Luth, The Wrigley Co.'s senior manager, North American corporate affairs. "But as the leader in gum, we feel good about the past year having seen growth from Orbit, Extra and Wrigley's brands."

Jackson-Luth emphasized that despite the downward trend, Wrigley has its eye on long-term growth rather than short-term ups and downs. Still, she acknowledged that it's an uphill climb for the subcategory right now.

"In the next decade, we expect the online global marketplace to grow by 110 percent, which will certainly affect impulse purchases like gum that don't typically make a virtual shopping list," she said. "We are working closely with our retail partners to ensure we're able to understand these insights and adapt accordingly."

Both industry insiders offered several suggestions on what suppliers and retailers can do to improve gum and mint sales in the convenience store channel:

• Innovation — Choice is key and shouldn't stop at just the choice between spearmint, grape or tutti-frutti gum flavors — gum is not a one-size-fits-all category. "We know flavor innovation just isn't good enough anymore," said Jackson-Luth. "Consumers want choices for everything — flavor, size, price, packaging and functional benefits."

One new development from Wrigley is its addition of split packs for pellet gums such as Eclipse, Orbit White and Juicy Fruit. Consumers can leave the gum as a single item or separate the packs to have gum in more places. "At least 52 percent of gum chewers run out of their favorite gum at least once per day, so making it available — at work, in the car, at home, at school — is essential to category growth," noted Jackson-Luth. "Wrigley's recent packaging innovation does that."

Revolymer is another company that's innovating around gum, by appealing to consumers' tidiness-minded sides with its removable, degradable Rev7 chewing gum. Along with offering longer-lasting chew and flavor, according to the company, Rev7 can disintegrate into a fine powder using water and mild agitation, making it easier to clean and removing some of its environmental impact. Judging by its recent distribution deals with QuikTrip and Fas Mart convenience stores, the double appeal of flavor and cleanliness may be catching on.

• Price and Value — Suppliers have begun adding a greater variety of price points to suit consumers' needs. In 2012, Wrigley will offer smaller packs for under a dollar to attract impulse chewers, while Kraft Foods has already launched five-stick packs of Trident and Stride gums for 50 cents each, with standalone displays designed specifically for the c-store market.
• Advertising — It might sound redundant that a c-store product needs to emphasize convenience, but if consumers are unlikely to make a store visit just to purchase gum or mints, suppliers and retailers must make them more attractive when a purchase opportunity arrives.

"Advertisement could be better targeted to heavy c-store users to stimulate demand," said Casadont. "I'm not convinced current advertising is hitting the heavy c-store consumer in a way that would stimulate demand."

To that end, Orbit is launching two new promotions this spring. Consumers who purchase gum packs with special codes can visit Spring.orbitgum.com to sign up for special Spring Fling prize alerts. Once an alert goes out, the code can be used to enter a drawing for free Orbit gum. Spring Fling alerts also will come via Orbit's Facebook page and @TheOrbitGirl on Twitter. Additionally, Orbit's new "Eat. Drink. Chew." retail marketing plan will include c-store signage that reminds consumers to "Clean up that dirty mouth feeling" with Orbit.

Will it be enough? If recent years' changes in sales figures show anything, it's that consumer preferences can always shift. Suppliers are optimistic, but convenience retailers should keep a close eye on the category, as gum and mints may remain troubled for the foreseeable future.

"Unless we see a better value equation for retailer and consumers, along with stronger innovation, I do not think these products will gain momentum," concluded Casadont.

For comments, please contact Angela Hanson, Assistant Editor, at [email protected].

"Unless we see a better value equation for retailer and consumers, along with stronger innovation, I do not think these products will gain momentum."

— Paul Casadont, Chevron Corp.'s Extra Mile