KANSAS CITY – The market has an appetite for healthier chocolates and candies, a trend underscored by strategic transactions and new product launches announced throughout the year.
In June, the Hershey Co. paid $ 425 million to acquire Lily’s, a brand of low-sugar chocolate products. Lily’s markets a variety of chocolate bars, baking chips and other treats such as coated peanut butter and nut cups and stevia-sweetened popcorn.
The addition to the Hershey portfolio is based on the company’s multi-pronged approach to providing better snacks and treats for you. In February, the company shared plans to expand its portfolio to offer more plant-based, organic and lower-sugar alternatives.
“Our sugar-free platform has performed well and we believe this will allow us to reach more homes and provide consumers with more delicious ways to enjoy their favorite Hershey brands,” said Michele G. Buck, President, President and CEO. . The Hershey Co. official “And while the organic chocolate market is small, it is growing rapidly and we are excited to offer consumers great tasting organic versions of Reese’s and Hershey’s through this specific launch.”
Mondelez International, Inc. purchased Hu Products, a manufacturer of organic chocolate formulated with coconut sugar, earlier this year. The financial terms of the transaction were not disclosed. Glen Walter, executive vice president and president of Mondelez International North America, said the agreement “provides more opportunities for growth in the chocolate industry.”
American Licorice Co., maker of the Red Vines and Sour Punch brands, acquired Torie & Howard, which offers a range of vegan treats made with organic ingredients.
Producing lightly chocolate-coated crispy quinoa bunches, Undercover Snacks raised $ 13.7 million in equity for a minority stake in the company led by Octagon Capital Holdings, 900 Chocolate Investors and the company’s founders. The company planned to use the funds for marketing, retail expansion and increased production capacity.
New product trends
Meanwhile, category innovation that hit the market during the year focused on reducing calories and sugar or eliminating unfavorable ingredients.
Russell Stover Chocolates launched Joy Bites, a collection of sugar-free chocolate bars. Made with fair trade cocoa and sweetened with stevia extract, the chocolate bars are made with no artificial flavors, preservatives, or added colorings. They feature breakable bites and are available in five filled and solid varieties, including Chocolate Caramel, Chocolate Peanut Butter, Smooth Creamy Chocolate, Dark Chocolate Sea Salt Caramel, and Dark Chocolate Roasted Almonds.
Perfetti Van Melle North America introduced Fruit-tella, a line of soft and beneficial gummies made with fruit puree. The company positioned the line as a clean label, noting that the products are not formulated with high fructose corn syrup or gelatin.
Nestlé launched a vegan version of its KitKat bar in test markets across Europe. KitKat V was developed by chocolate experts at Nestlé’s confectionery research and development center in York, UK. The certified vegan product took approximately two years to develop.
“There is a quiet food revolution underway that is changing the way people eat,” said Alexander von Maillot, Nestlé’s head of confectionery. “We want to be at the forefront of that, championing the discovery of plant-based foods and beverages. What better way to do it than by offering a vegan version of one of our most famous and beloved brands? “
SkinnyDipped, a manufacturer of coated almonds, peanuts, and cashews, debuted in chocolate bars and peanut butter cups with a blend of maple sugar, cane sugar, and allulose. The candy contains up to 79% less sugar than leading brands and is made without stevia or sugar alcohols, according to the company.
The team behind Halo Top ice cream unveiled Gatsby, a brand of chocolate with fewer calories and less sugar than traditional chocolate. Available in milk chocolate and dark chocolate almond varieties, Gatsby products are formulated with allulose and esterified propoxylated glycerol, a modified vegetable oil that tastes and works like fat with fewer calories. Other ingredients include medium chain triglycerides, milk, sugar, and cocoa.
Flavor innovation
More than 450 exhibitors showcased innovation at Sweets & Snacks Expo 2021, which took place June 23-25 in Indianapolis. The National Association of Confectioners identified four trends at the fair.
Smaller package sizes containing 200 calories or less were predominant, pointing to consumer demand for smaller portion sizes for a more mindful snack.
Tropical flavors flourished in new product launches, with pineapple and coconut taking center stage.
Mix-and-match offerings give consumers the best of both worlds, allowing for a mix of sweet, salty, fruity, or sour flavor profiles.
Burning flavors like chili, sriracha, jalapeño, and habanero heated up the show floor, popping up in spicy mango candies, jelly beans, and more.
“The Sweets & Snacks Expo is where the major candy and snack companies showcase their newest products, and this year is even more important as we get back in business,” said John Downs, president and CEO of the National Confectioners Association. “While consumer buying habits may have changed to adapt to the new environment, manufacturers are exceeding expectations with new products, flavors and innovations.”
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