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Research and Markets: Recently Announced Acquisition of Category-Leading Supplier Wrigley by Confectionery Giant Mars, Inc. Is Likely To Trigger a Similar Deal Between Cadbury and Hershey

DUBLIN, Ireland-(Business Wire)-July 2, 2008 - Research and Markets (http://www.researchandmarkets.com/research/2dc641/gum_mints_and_bre) has announced the addition of the "Gum, Mints and Breath Fresheners in the United States 2008" report to their offering.

The gum, mint and breath freshener category has experienced steady growth in recent years. The successful string of new flavor line extensions and new brand launches in the dynamic and highly competitive sugarless gum segment are largely attributed to this market growth.

Mintel provides insight into recent marketing activity in the category and analyzes sales results in order to help retailers and marketers plot a course for continued growth.

This report includes:

- Analysis of category sales by segment, retail channel, key manufacturer, and brand- including brand profiles of major category competitors

- Discussion of recent new product introductions from major competitors

- An overview of advertising in the category

- Examination of the recently announced acquisition of category-leading supplier Wrigley by confectionery giant Mars, Inc. and how the merger is likely to trigger a similar deal between Cadbury and Hershey, the category's number-two and three competitors.

Key Topics Covered:

Scope and Themes

What you need to know

Definition

Data sources

Sales data

Consumer survey data

Abbreviations and terms

Abbreviations

Terms

Executive Summary

Market size

Two major suppliers dominate

Mergers may make the strongest stronger

Category marketing activity is concentrated in sugarless gum

Recent innovation has focused on flavor

Expanding distribution outlets equals expanding sales

Key advertising themes delivered with a dose of irreverence

Kids, teens, young adults control the category

Market Size and Forecast

Key points

Sugarless gum leads category growth

More retail outlets means more chances to pick up gum

Figure 1: Total U.S. sales and forecast of gum, mints, and breath fresheners at current prices, 2002-12

Figure 2: Total U.S. sales and forecast of gum, mints, and breath fresheners at inflation-adjusted prices, 2002-12

Competitive Context

Corporate dealing changes the category playing field

Segment Performance

Key points

Spurred by new brands and innovation, sugarless gum has become the format of choice for the category

Figure 3: U.S. sales and forecast of gum, mints, and breath fresheners at current prices, by segment, 2002-12

Figure 4: U.S. sales of gum, mints, and breath fresheners, by segment, 2005 and 2007

Segment Performance—Sugarless Gum

Key point

Sugarless gum has become the focus of innovation for the category

Figure 5: U.S. sales and forecast of sugarless gum, 2002-12

Segment Performance — Regular Gum

Key points

Buoyed by kids ... but for how long?

Figure 6: U.S. sales and forecast of regular gum, 2002-12

Segment Performance — Breath Fresheners

Key points

Breath fresheners left out in the cold as consumers turn to gum

Figure 7: U.S. sales and forecast of breath fresheners, 2002-12

Segment Performance — Plain Mints

Key point

A quiet segment receives little attention, but keeps on rolling

Figure 8: U.S. sales and forecast of plain mints, 2002-12

Retail Channels

Key points

Riding a wave of convenience

Figure 9: U.S. sales of gum, mints, and breath fresheners, by retail channel, 2005 and 2007

Retail Channels — Convenience Stores

Key points

Along for the ride

Figure 10: U.S. sales of gum, mints, and breath fresheners at convenience stores, 2002-07

Retail Channels — Supermarkets

Key point

Gum and mint sales flat as channel struggles to redefine itself

Figure 11: U.S. sales of gum, mints, and breath fresheners at supermarkets, 2002-07

Retail Channels — Drugstores

Key point

Category helping spur front-end sales growth

Figure 12: U.S. sales of gum, mints, and breath fresheners at drugstores, 2002-07

Retail Channels — Other

Key points

A collection of growing channels leads to growing sales for the category

Figure 13: U.S. sales of gum, mints, and breath fresheners at other channels, 2002-07

Market Drivers

Shifts in population composition by age and race/ethnicity will impact the market

Figure 14: U.S. population, by age, 2002-12

Figure 15: U.S. population, by race and Hispanic origin, 2002-12

Interest in healthy eating

Figure 16: Attitudes towards healthy eating, 2002-07

Leading Companies

Key points

The strongest may be getting stronger

Figure 17: FDMx Sales of leading gum, mints, and breath fresheners companies, 2005 and 2007

Brand Share — Sugarless Gum

Key points

In with the new ...

Figure 18: FDMx brand sales of sugarless gum, 2005 and 2007

Brand Share — Regular Gum

Key points

Rapid share declines may be difficult to reverse

Figure 19: FDMx brand sales of regular gum, 2005 and 2007

Brand Share — Breath Fresheners

Key points

Looking for a leader ... and a big idea

Figure 20: FDMx brand sales of breath fresheners, 2005 and 2007

Brand Share — Plain Mints

Key points

Not quite candy, not quite breath fresheners

Figure 21: FDM brand sales of plain mints, 2005 and 2007

Brand Qualities

A whole new Orbit

Older brands reinvented

Dentyne

Trident

Wrigley's classics on the ropes

Innovation and Innovators

A flow of new fruit flavors and combinations

Back to the future - new gums that go squirt

Two new brands offer new flavor experiences

Hershey tries to extend Ice Breakers beyond core category benefits

Advertising and Promotion

Overview

Figure 22: Media expenditure of selected gum/mint brands, 2005-06

Oral Care

Figure 23: Orbit television ad, 2007

Figure 24: Orbit television ad, 2007

Figure 25: Orbit White television ad, 2007

Figure 26: Trident White television ad, 2007

Figure 27: Trident Original television ad, 2007

Flavor

Figure 28: Trident Watermelon Twist television ad, 2007

Figure 29: Wrigley 5 television ad, 2007

Figure 30: Stride television ad, 2007

Figure 31: Extra television ad, 2007

Figure 32: Ice Breakers Ice Cubes television ad, 2007

Figure 33: Altoids Mints television ad, 2007

Fresh breath

Figure 34: Ice Breakers Ice Cubes television ad, 2007

Figure 35: Eclipse Gum television ad, 2007

Usage

Incidence of use highest among kids, teens

Figure 36: Usage of gum and breath mints/strips — adults, teens and kids, May 2006-June 2007

Figure 37: Usage of gum and breath mints/strips — adults, by age, May 2006-June 2007

Figure 38: Usage of gum and breath mints/strips — adults, teens and kids, by race/ethnicity, May 2006-June 2007

Kids and teens prefer sugared gum. Adults evenly split between sugared and sugarless

Figure 39: Type of gum chewed — adults, teens and kids, May 2006-June 2007

Figure 40: Type of mints eaten — adults, and teens May 2006-June 2007

With many brands chewed per week, loyalty appears to be low

Figure 41: Brands of gum chewed — adults, by age, May 2006-June 2007

Figure 42: Brands of gum chewed — teens, May 2006-June 2007

Figure 43: Brands of gum liked best — kids, May 2006-June 2007

Fewer mints/strips brands used

Figure 44: Brands of breath strips/mints used — adults, by age, May 2006-June 2007

Figure 45: Brands of breath strips/mints used — teens, May 2006-June 2007

Figure 46: Brands of breath strips/mints liked best — kids, May 2006-June 2007

Usage patterns: teens chew most frequently

Figure 47: Average amount of gum/mints used — adults, teens, and kids, May 2006-June 2007

Attitudes and Motivations

Considerable interest in trying new flavors of gum and mints

Figure 48: Trying new flavors of gum and mints, by age, March 2007

Gum and mints are an everyday thing ... except for business meetings

Figure 49: Attitudes towards and opinions about gum, by gender and age, March 2007

Long-lasting flavor highly valued in gum

Figure 50: Attitudes towards and opinions about gum, by age, March 2007

Interest in functional gum strongest for oral-care benefits

Figure 51: Interest in functional gum for oral health/care, by age, March 2007

Figure 52: Interest in functional gum for purposes other than oral care, by age, March 2007

Gum appropriate for a wider array of uses than mints

Figure 53: Uses for gum and mints, by age, March 2007

Appendix: Trade Associations -0- *T Companies Mentioned: - Wm. Wrigley Jr. Company - Cadbury Schweppes Americas Confectionery - National Association of Convenience Stores - The Stride Rite Corporation - Hershey Company, The - The National Confectioners Association of the U.S. (NCA) - Ferrero U.S.A. Inc. - Mars Incorporated - Wal-Mart Stores (USA) - Cadbury Adams USA LLC - Topps Company, Inc., The - National Confectioners Association - Berkshire Hathaway Inc - U.S. Bureau of the Census - Johnson & Johnson - U.S. Bureau of Labor Statistics - Public Broadcasting Service - Wawa, Inc - CVS Corporation - Tootsie Roll Industries Inc. - Brach's Confections Inc. - Perfetti Van Melle USA Inc. - American Dental Association - YouTube, Inc. - Chocolate Manufacturers Association - American Nutraceutical Association (ANA) - Retail Confectioners International - American Association of Candy Technologists (AACT) - National Association of Chewing Gum Manufacturers (NACGM) - National Confectionery Sales Association (NCSA) - Confectionery Manufacturers Association of Canada (CMAC) *T

For more information visit http://www.researchandmarkets.com/research/2dc641/gum_mints_and_bre.

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