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Snickers Chocolate's Global Share

By hkhrunjha Nov 30, 2012 1144 Words
Global Candy Sales
| | |Market Share |$ Sales in Millions | |Brand |Company |2011 |2012 |2011 |2012* | |Snickers |Mars Inc |1.7 |1.8 |$3,286 |$3,572 | |M&M's |Mars Inc |1.8 |1.8 |$3,380 |$3,494 | |Trident |Kraft Foods Inc |1.8 |1.7 |$3,354 |$3,321 | |Reese's |Hershey Co, The |1.3 |1.4 |$2,553 |$2,679 | |Galaxy/Dove |Mars Inc |1.3 |1.3 |$2,407 |$2,597 | |Milka |Kraft Foods Inc |1.3 |1.3 |$2,530 |$2,510 | |Cadbury Dairy Milk |Kraft Foods Inc |1.3 |1.3 |$2,414 |$2,506 | |Orbit |Mars Inc |1.3 |1.3 |$2,441 |$2,501 | |Extra |Mars Inc |1.1 |1.2 |$2,115 |$2,231 | |Kit Kat |Nestlé SA |1.0 |1.0 |$1,933 |$1,979 | |Mentos |Perfetti Van Melle Group |0.9 |0.9 |$1,649 |$1,711 |

U.S. Candy Sales
| | |Market Share |$ Sales in Millions | |Brand |Company |2011 |2012 |2011 |2012* | |Reese's |Hershey Co, The |7.6 |7.7 |$2,479 |$2,603 | |M&M's |Mars Inc |6.8 |6.8 |$2,238 |$2,300 | |Snickers |Mars Inc |5.5 |6.0 |$1,815 |$2,020 | |Kit Kat |Hershey Co, The |2.8 |2.8 |$917 |$948 | |Twizzlers |Hershey Co, The |2.3 |2.4 |$746 |$801 | |Trident |Kraft Foods Inc |2.2 |2.0 |$732 |$674 | |Twix |Mars Inc |1.8 |1.9 |$598 |$655 | |Extra |Mars Inc |1.8 |1.8 |$598 |$610 | |Orbit |Mars Inc |1.7 |1.6 |$561 |$549 | |Milky Way |Mars Inc |1.6 |1.6 |$516 |$539 | |Galaxy/Dove |Mars Inc |1.6 |1.5 |$523 |$504 | |Starburst |Mars Inc |1.3 |1.4 |$433 |$467 | |Godiva |Yildiz Holding AS |1.1 |1.2 |$373 |$391 | |*2012 figures are projections. Source: Euromonitor Internationa | | | | | |Snickers Surging to Top of Global Candy Race | |Mars-Owned Candy Bar Set to Pass Sibling M&M's, Kraft's Trident in New Euromonitor Ranking | |By: E.J. Schultz Published: September 20, 2012 | |208share this page | |[pic][pic][pic][pic] | |There is a new candy kingpin. | |Snickers will pass M&M's as the top international confectionery brand by the end of the year, giving the 82-year-old candy bar a satisfying | |victory in the global chocolate wars, according to a projection by Euromonitor International. | |Snickers is "definitely on target to surpass M&M's," Lee Linthicum, Euromonitor's global head of food research, told Ad Age. He cited U.S. | |innovations and strong growth in emerging markets as factors in moving the candy bar from No. 3 to No. 1, also surpassing Trident. Going | |forward, the race for the top is now a sibling rivalry because Mars Inc. owns Snickers and M&M's, which are separated by a razor-thin | |margin. | |While a win for Mars, the rankings are a loss for Kraft Foods' Trident. The gum brand fell from second to third place as projected 2012 | |worldwide sales slipped to $3.32 billion from $3.35 billion in 2011. Kraft remains the global leader with 14.7% share when all confectionery| |brands are totaled. But the food giant's share of the category fell from 14.8% in 2011, while No. 2 Mars jumped to 14.4% from 14.1%, | |according to Euromonitor. | |The shift at the top was first reported by Candy & Snack Today, a publication by the National Confectioners Association. | |Among individual brands, the worldwide candy battle remains close and fragmented, with only a fraction of a share point separating the top | |10. | |Snickers is expected to surge from $3.29 billion in global sales last year to $3.57 billion for 2012, capturing a 1.8% share, according to | |Euromonitor projections. The brand, whose ad agency is BBDO, has been backed with major media investments in recent years, including Super | |Bowl spots featuring Betty White and Roseanne Barr, who have both stared in the ongoing "You're Not You When You're Hungry" campaign. | |But M&M's -- which Mars featured in this year's Super Bowl spot-- is not far behind, growing from $3.38 billion to $3.49 billion in global | |sales, according to Euromonitor projections. | |Mr. Linthicum attributed Snickers' climb to its strong performance in the U.S., which accounts for a huge share of the global candy market. | |Domestically, the candy bar has aggressively pushed a line extension called Snickers Peanut Butter Squared, which launched last year and | |features two square-shape bars that adds peanut butter to the familiar mix of peanuts, caramel, nougat and milk chocolate. | |Globally, the brand is benefiting from strong growth in Eastern Europe. In Russia, sales have doubled since 2007 to $300 million, partly as | |a result of distribution gains Mars has made by acquiring some ex-Soviet chocolate companies, he said. While that should also help M&M's, | |the bite-size candies face more competition in the region, where smaller candies are more established and familiar, Mr. Linthicum said. By | |contrast, candy bars like Snickers are more of a novelty, he said. | |In the U.S., Hershey Co.'s Reese's is expected to remain the top brand, with a projected $2.6 billion in sales capturing 7.7% market share | |for 2012, according to Euromonitor, which uses a variety of sources to track all sales channels, from Walmart to vending machines. M&M's, | |which is also handled by BBDO, is projected to hold onto the No. 2 slot stateside with 6.8% share, followed by Snicker's (6%) and Hershey's | |Kit Kat (2.8%). | |Still, Reese's remains stuck in fourth place globally with 1.4% share, according to Euromonitor projections. The reasons are twofold: | |Hershey has less of a global footprint than Mars, Mr. Linthicum said. Also, peanut butter is not as popular in Europe as it is in the | |States. It is a "very uniquely American thing," he said. "That sweet-savory juxtaposition of flavors is something of an acquired taste." | |Mr. Linthicum pinned Trident's struggles on stiff competition from Wrigley 5, the Mars-owned brand that launched in the states in 2007 with | |slick packaging, innovative flavors and a highly produced ad campaign by Energy BBDO called "Stimulate Your Senses." | |The flashy appeal has resonated globally. "It's even gaining share in Greece of all places," Mr. Linthicum said. "Everywhere they release it| |around the world ... it's worked." In the U.S., Wrigley 5 is now the 4th-largest gum brand with a 7.43% share, according to SymphonyIRI, | |which excludes Walmart. | |Kraft, which on Oct. 1 will split off its candy and snacking business into a company called Mondelez International, is fighting back with | |its first global ad campaign for Trident by Saatchi & Saatchi that is more emotional than previous efforts, which had touted functional | |benefits such as oral health and vitamins. Meanwhile, in the States Kraft recently rolled out "ID Gum by Stride," featuring artsy packaging | |and a gimmick-filled campaign by Droga5. |

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