Milling & Baking News Corporate Profiles - October 2011 - (Page 58)

Confectionery Confectionery High raw materials prices don’t stop companies from expanding S ugar and cocoa prices have been anything but kind to confectioners in 2011. Severe weather, natural disasters and civil unrest in major producer countries, in addition to global economic concerns, have contributed to volatile futures prices and strong cash values for both commodities. Complications from rising crude oil prices due to ongoing unrest in Libya was expected to pull more sugar into the ethanol sector early in the year, but slower-than-expected new crop cane harvest in Brazil limited available cane supplies and strong sugar prices actually resulted in a shift in favor of sugar as the year progressed. In March, weather impacted sugar supplies from Florida and Mexico. Australia also had floods. Tight global supplies supported sugar futures, at least until the second half of the year when commodities in general succumbed to global economic pressure, but cash sugar prices remained firm. The trend in the United States toward higher use of sugar compared to corn sweeteners continued, although a few companies quietly switched back to corn sweeteners due to high sugar prices. Meanwhile, other countries such as Mexico went the opposite direction, significantly boosting their use of corn sweeteners in 2011. The U.S Department of Agriculture extended by one month past the end of the 2010-11 sugar marketing year for exporting countries to ship tariff rate quota sugar into the United States. Exporters had until Oct. 31, 2011, to ship T.R.Q. sugar without having to pay additional duties. The U.S.D.A. also allowed 2011-12 T.R.Q. sugar to be imported one month before the start of the new marketing year. The agency made the moves to help ease tightness in the U.S. sugar market, but bulk, refined sugar prices in the United States held firm at about 10% above year-ago values as the third quarter ended, even though sugar futures prices declined. On the legislative front, a renewed effort to transform U.S. sugar policy was under way. box/bag/bar <3.5 oz unit sales by brand M&Ms Snickers Reese’s Hershey’s 175,733,800 148,154,700 142,821,100 chocolate candy 196,710,500 Leading Kit Kat 97,749,410 Twix 3Musketeers Milky Way Nestle Butterfinger Hershey’s Cookies ’n’ Creme Source: SymphonyIRI 55,353,490 48,066,870 43,714,120 38,901,710 34,751,090 Senator Richard Lugar of Indiana introduced the “Free Sugar Act,” which would repeal preferential sugar loan programs, eliminate price supports and end sugar marketing quotas. Recovery appeared on the horizon for cocoa markets after violence subsided in the Ivory chocolate candy vendors BOX/BAG/BAR <3.5 OZ 1 2 3 4 5 6 7 8 9 The Hershey Co. Mars, Inc. Nestle USA, Inc. Ferrero USA, Inc. Ghirardelli Chocolate Co. DeMet’s Candy Co. Godiva Chocolatier Whitman’s Endangered Species Private label Total Dollar sales $488,567,900 $442,577,600 $79,047,950 $12,650,270 $11,763,310 $9,645,491 $8,470,116 $7,951,416 $6,215,760 $7,371,111 $1,143,254,000 LEADING % change from year ago 7.6% 13.7% 4.3% -4.1% -8.4% 12.8% 57.8% -16.9% -2.1% 9.5% 9.0% chocolate candy brands BOX/BAG/BAR <3.5 OZ 1 2 3 4 5 6 7 8 9 10 M&Ms Snickers Reese’s Hershey’s Kit Kat Twix 3 Musketeers Milky Way Hershey’s Cookies ’n’ Creme Nestle Butterfinger Total Dollar sales $155,626,700 $132,074,500 $122,039,800 $107,832,100 $76,968,070 $43,696,360 $36,339,600 $30,518,320 $26,615,490 $24,918,850 $1,143,254,000 LEADING % change from year ago 18.2% 16.2% 7.4% 2.2% 24.0% 7.3% -3.1% 15.1% 4.3% -4.1% 9.0% Data for 52 weeks ended Aug. 7, 2011 Total U.S. - Supermarkets, Drugstores and Mass Merchandisers excluding Wal-Mart Source: SymphonyIRI 58 \ October 2011 Milling & Baking News • Food Business News • Baking & Snack • Meat & Poultry Corporate Proﬁles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - October 2011

Milling & Baking News Corporate Profiles - October 2011