Ideas and input from ISM: Giant candy and snack show spotlights European market trends and more.

Confectioner attended and exhibited at ISM, the world's biggest candy and snack trade show. Retailers and manufacturers from around the globe participate in ISM, making the show a great opportunity to spot trends that may have an impact on the U.S. market.

The following are some observations

* Halloween, the biggest of U.S. candy holidays, has begun gaining more significant momentum in Europe. England, France, Belgium, the Netherlands, Luxembourg and now Germany are embracing Halloween. Halloween-themed confections are becoming much more widely available.

The increasing popularity of Halloween in some international markets certainly presents opportunities for U.S. retailers to operate stores in these markets, but also may provide some opportunity for U.S. candy suppliers who have been marketing Halloween products for years.

* The January 1, 2002 conversion to the Euro among 12 of the European Union member states (Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, The Netherlands, Portugal, Spain, and Greece) has had immediate impact on the confectionery industry in Europe and potentially significant ramifications for the global economy.

Candy and snack suppliers, along with the rest of the consumer goods industry, are working hard to create consistent packaging sizes and pricing across the European Union. It was not uncommon for pricing and pack sizes to vary considerably across Europe. Prior to the implementation of the Euro, these inconsistencies were not as apparent. However, with the Euro in place, substantial price differences across the Euro participating countries are very easy to spot, driving the need for more consistency.

More than 300 million people (greater than the population of the United States) currently use the Euro, and millions more will follow as the remainder of the European Union implements the new currency. The European Union will be the largest global economy after the "waiting list" countries convert to the Euro. If the European Union is able to behave as a somewhat unified entity, it will be a larger force in the global economy than the United States.

* Ritter Sport, a leading German chocolate company, has introduced a limited edition chocolate bar containing miniature Nestle Smarties. The bar tastes great, and the packaging is very nicely designed. Are there untapped opportunities of this nature in the United States?

* Functional candies -- candies fortified or enhanced to provide a therapeutic benefit -- continue to gain momentum.

* Dark chocolates, particularly dark chocolates with a higher than normal proportion of cacao, continue to grow in popularity.

* Gummies in all shapes, flavors and sizes continue to maintain popularity. Trolli's new gummy eyeball, which I must say is very realistic, is a great example of gummy innovation.

RELATED ARTICLE: 2002 Category Driver Awards

In the April issue, Confectioner will be announcing the winners of this year's Category Driver Awards. The editors of Confectioner solicited cooperation from retailers and distributors across the food retailing industry to recognize candy marketers who are doing an exceptional job of "driving the candy category."

We asked retailers to name Category Drivers in several subsectors of the candy category. The criteria retailers were asked to think about include merchandising excellence, product innovation, customer service, ability and willingness to meet unique customer needs, fulfilling delivery promises, etc.

I hope you will join me next month in congratulating the companies that industry retailers and distributors believe are "driving" growth and prosperity for the candy category.

Trends from ISM 2002

* Multi-dimensional texture and flavor characteristics in chocolate bars

* Grape-based infusions, such as Riesling, red wine and balsamic vinegar in chocolates

* Higher cacao content (55% to 95%) chocolates

* Exotic flavor sensations, such as green pepper, red pepper,, green aniseed, rosemary, thyme or even an Indian masala spice mixture in chocolates

* Hollow chocolate moulds used as containers for treats, such as biscuits

* More creativity in chocolate moulded items, i.e. Easter bunnies on skate boards, Santas on cell phones, Three Kings, etc.

* Continued emphasis on Halloween, with emphasis on goblins, ghosts, pumpkins, "shock" items, i.e., bloody eyeballs, blood gum, etc.

* Natural fruit flavors to emphasize wellness and health

* "Smoothie" and creamy flavors in hard candies and lollipops

* "Cocktail" bonbons such as Pina Colada and Caipirinha.

* Continued licensing tie-ins to toys, movies, cartoons