Like a lot of people, Nate Towne is cutting back on spending. He’s carpooling to work and only shops at grocery stores that take coupons or offer discount “rewards” cards.
But even in this economy, he remains a self-described “candy snob.”
“I’m serious when I say I’ll pay a premium for my top favorites because in the grand scheme of things, it’s only a few bucks,” says Towne, a 37-year-old public relations consultant in Madison, Wis.
He’s not the only one who’s stuck on candy. Americans buy billions of dollars worth of the stuff each year — with more than $29 billion in retail sales in 2007, according to the National Confectioners Association. That’s about a 3 percent increase from the previous year.
That sizable sweet tooth is a big reason many analysts say the candy business is likely to fare better than other nonessentials in these economically trying times, even as prices for commodities such as sugar, milk and cocoa have risen.
Analysts at The Nielsen Co., which tracks consumer habits, go as far as calling the candy business “recession-proof,” compared with other discretionary items, such as tobacco and carbonated beverages (though beer also tends to do well when the economy is hurting).
They note that consumers are cutting back on longer-distance shopping trips to save gas. As a result, they are spending more at drug and convenience stores with big, easy-access candy sections.
Then there’s the “feel good” factor.
Photo by abasketcase.com.
A Sweet Spot In Sour Economy
June 30, 2008 by Rich | 2 Comments
In Downturn, Economy, Sales
Angela on June 30th, 2008 at 5:52 pm
I have to agree here, I am a bit of a candy-holic at times, too. No matter how much things go up, candy will always have a sweet spot in the candy-holic’s heart.
cassy on June 30th, 2008 at 11:49 pm
I have a friend who’s passion is making homemade candies. I like her” sweet potato candy”, its delicious at the same time its nutritious!