Candy Land A national craving for Gummy Bears and lemon drops bulks up candy store sales.

You know the feeling--that irrepressible craving that hitsaround 3 o'clock in the afternoon. Or maybe it's a trip tothe movies that triggers the uncontrollable urge. Perhaps you neverthink about it until you come face to face with a sweet treat atthe mall--and then you absolutely have to have it. No matter whenit strikes, America's sweet tooth needs to be sated.

Sure, Americans are spending billions on diets and lo-cal andfat-free foods. But if everyone is so hell-bent on eating right,why did we gobble up an average of more than 24 pounds of candy in1996 compared to 17.9 pounds in 1983?

We don't know the answer to that question, but we do knowthis: The nation's bulk candy purveyors are grateful our sweettooth isn't decaying. This confection affection is part of thereason bulk candy stores are popping up in malls, strip centers andfood courts around the country and why grocery stores, movietheaters, airports, university student unions and other primelocations are adding bulk candy bins to the mix of goodies theyalready carry.

Says Pete Podolski, marketing communications director forNational Bulk Food Distributors Inc., a Taylor, Michigan-based bulkcandy distributor, "Candy is here to stay."

Sweet Deals

A sweet tooth is what lured Moustafa Badawi into the bulk candybusiness. "I love candy myself, and as a father, we couldnever pass by a candy store without my children stopping in,"he says. "When I looked at how much we were spending, Ithought, `This is a great business.' "

That's when Badawi, 42, started researching distributors andmanufacturers and scouting out locations for a retail shop. Helanded a plum spot on a trendy Long Beach, California, shoppingstreet that has heavy foot traffic.

Although his store is still too new to predict annual salesfigures, Badawi says that since he opened Candy Land's doorslast November, hordes of customers have been plunking down anaverage of $1.50 to $3 per sale for bags of the more than 175different kinds of candy the store carries.

In the land of candy stores, 175 kinds of candy is on the lowside: Many retailers stock more than 700 varieties of sweets. DaveErvin, owner of two Candy Express locations--one in Columbia, SouthCarolina, and the other in the Charlotte-Douglas InternationalAirport in Charlotte, North Carolina--claims there are 10,000different kinds of candy on the market.

Sounds like a lot of product to manage, but retailers freelyadmit that operating a candy store isn't brain surgery. Badawi,who also owns an art store, says, "Paintings andart . . . you really have to sell that, but candy?Candy sells itself."

The ease of operation is what led Joel Rosenberg to franchisethe Candy Express concept in the first place. The former owner of aclothing store chain was considering opening a new location next toa bulk candy store and thought to himself, "This looks a loteasier than what we're doing." After testing the conceptin a local shopping center--with rave reviews--in 1990, Rosenbergcreated the Columbia, Maryland-based Candy Express Inc. franchiseoperation that boasts 40 U.S. locations and licensing agreements in20 countries.

Bite-sized Business

Opening a bulk candy store isn't the only way to get a tasteof the candy market. Many existing retailers--those who owngreeting card shops, grocery stores, flower shops and more--areadding bulk candy sections. A study by the National ConfectionersAssociation shows that bulk candy sales in supermarkets totalled anestimated $387 million in 1996, which translates to about 187pounds of bulk candy sold per week, per store.

"Bulk candy can be a real profit center when it's soldin other retail environments," says David Sill, owner ofCandicopia Inc., a multimillion-dollar national candy and snackfoods marketer and distributor based in
Blue Bell, Pennsylvania.

He should know. The 35-year-old distributor has seen firsthandhow his account list has expanded over the past few years toinclude nonbulk-candy venues. "There were very few peopleselling bulk candy when I started as a distributor in 1991, but nowthere are hundreds of accounts out there, including institutionalsnack bars and college cafeterias," Sill says.

Sill started his distributorship after a two-year stint as abulk candy retailer left him frustrated with problems finding goodbulk candy distributors. "We would run out of stock on themost popular items and would have to wait several days until thescheduled weekly delivery date rolled around," Sill recalls."In the meantime, there was nothing I could do but losesales."

Running out of your customers' favorites can be devastatingfor a candy retailer, so finding a reliable distributor, one withadequate inventory and quick turnaround, is critical. But above allelse, the key is to operate in a high-traffic location."Location is the most important factor in creating asuccessful candy business," says Ervin, 47.

Location has played a big part in the quick success ofErvin's two Candy Express stores--one in a mall, the other inan airport. Nontraditional locations, such as airports, areappealing to consumers and thus to retailers.

While malls may provide another ideal location, you'll haveto use some creativity to get in without paying their exorbitantrents. For instance, Sill, while still in the retail end of thebusiness, managed to find a way to avoid sky-high mall rents bysqueezing a freestanding bulk candy store into an unused space nearthe staircase. "[The mall management] had nevereven thought about renting out that space, so I got areally good deal on the rent," he says. Lower rent and greatfoot traffic meant lower overhead and increased profit margins forthis candy entrepreneur.

While the candy crowd touts the ease of operation and goodmargins, they admit there are some drawbacks to being acandypreneur. For instance, increased competition is beginning tocut into sales for existing business owners. Retailers also notethat no matter how many tasty treats your store carries, customerswill inevitably request something you don't stock.

And then, of course, there's the other danger that'sunique to the candy biz. "You have to watch out becauseit's easy to get addicted to your product," warns Badawi.You mean there's something wrong with having licorice forbreakfast, Runts for lunch and Gummy Worms for dinner?

For More Information

• The National Confectioners Association/Chocolate ManufacturersAssociation in McLean, Virginia, provides news and statistics onthe candy industry. Call (703) 790-5750 or visit the Web site athttp://www.candyusa.org

• Candy Industry Magazine is a monthly publication for theconfection manufacturing industry. Call (218) 723-9477 orcheck out the Web site at http://www.candyindustry.com

• Professional Candy Buyer is a trade journal for retailand wholesale candy buyers. Call (847) 427-9512 or visithttp://www.candybuyer.com

• Manufacturing concerns and confectionary industry trends areaddressed in the trade journal Manufacturing Confectioner.Call (201) 652-2655 or visit http://www.gomc.com

• Business Trend Analysts Inc., a Long Island, New York, marketresearch firm, compiles reports on the candy industry. For moreinformation, call (516) 462-5454 or visit http://www.businesstrendanalysts.com

• Statistical information on the candy industry is also availablethrough the U.S. Department of Commerce. Call (301) 457-4626or visit http://www.doc.com

Sugar, Sugar

Compiled by Liza Potter

The following franchise companies can help you get started:

Bourbon Street Candy Co. Inc.
266 Elmwood Ave.,#287
Buffalo, NY 14222
(905) 894-4819

Candy Express
10480 Little Patuxent Pkwy.,#320
Columbia, MD 21044
(410) 964-5500

Sweets From Heaven/Candy Hqtrs.
1830 ForbesAve.
Pittsburgh, PA 15219
(412) 434-6711

Tropik Sun Fruit & Nut
37 Sherwood Terrace,#101
Lake Bluff, IL 60044
(847) 234-3407

Frances Huffman, a freelance writer in Pacific Palisades,California, is a former senior editor for Entrepreneur.

Contact Sources

Candicopia Inc., 653 Skippack Pike, #222, Blue Bell, PA19422, http://www.candicopia.com

Candy Express Inc., (704) 492-2307, fax:(704) 492-2307

Candy Land, 5217 E. Second St., Long Beach, CA 90803,(562) 590-8982

National Bulk Food Distributors Inc.,(800) 421-NBFD, fax: (888) FAX-NBFD