As new parts of the global market warm up, the U.S. candy
industry's profits get sweeter by the day. According to the
National Confectioners Association (NCA), however, only 5 percent
of U.S. manufacturers (more than 90 percent of which are small and
midsized businesses) are selling internationally, which means
there's still room for would-be Willie Wonkas in this $21
billion industry.
"Everybody likes candy," says James Johnson, the
NCA's director of international marketing services. "No
matter what the culture is, there's a good feeling attached to
it."
But who has the biggest sweet tooth? Per capita, the NCA reports
it's Switzerland, followed by Austria and Germany. But
don't start dreaming in euros: Europe is up to its eyeballs in
chocolate. With the Asian market still sour, Latin America is
emerging as the next hot spot for U.S. confections. The NCA, in
fact, plans to conduct trade missions to Argentina, Brazil and
Chile this fall. "More and more people there have
discretionary income," Johnson says, "and they're
looking to purchase feel-good products."
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These and many other countries view sweets as prestige products,
opening the export door for small U.S. candy manufacturers.
Philadelphia's Goldenberg Candy Co. and Adams & Brooks Inc.
in Los Angeles are two such businesses. While neither make public
their annual revenues, both say they've boosted sales by 5 to
10 percent by exporting their sweets.
"Our export sales are growing, and they continue to offer
great opportunities," says David Goldenberg, 44, president of
the family candy business that bears his last name. "It's
not the biggest part of what we do, but it's
important."
Unfortunately, no secret formula exists for getting your candy
product on foreign shelves. "Just because [your product] is
American doesn't mean people will stock it," warns Tempe
Brooks, export sales administrator for the 68-year-old Adams &
Brooks. And when it comes to food products, there's no end to
the hurdles you have to clear. Among them:
- Labeling. Every country has its own requirements. For
example, Canada requires all packages to have information in both
French and English. Brooks tackles this problem by creating her own
labels on a PC.
- Weight measurements. Most of the world, of course, is on
the metric system, so Brooks uses metric weights on all
international orders and labels.
- Pricing. While some U.S. manufacturers feel the strong
dollar requires them to slash prices, Johnson says many small
companies find international success by marketing their candy as a
premium product--and selling it at premium prices. "People are
willing to pay for quality," says Johnson.
Overcoming these obstacles may not be simple, but for companies
confident their products have a shot in the international market,
it's the first step to sweet success.
Christopher D. Lancette is a journalist in Atlanta who covers
international topics for Hispanic Business and other
publications.
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