Sugarless candy takes center stage at Chicago show

Reuters, 05.16.03, 7:25 AM ET

By Bob Burgdorfer

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CHICAGO, May 16 (Reuters) - Candy may not be a health food, but confectioners are quickly adding more sugar-free sweets to accommodate an aging population and parents who want their kids eating less sugar.

At the All Candy Expo this week in Chicago, large and small candy makers were touting sugar-free or low-calorie products.

"We are offering a lot of sugar-free offerings. It is really just looking at what consumers need and want and making sure there are products for everyone," said Susan Fussell, spokeswoman for the National Confectioners Association, which sponsors the Expo.

Industry data show sales of diet and sugar-free candies increased 23 percent this past year at a time when sales of all confections increased 1.5 percent. Sugar-free gum sales were up 7.9 percent, while regular gum sales slipped 6.3 percent.

Billed as the largest confectionary show in North America, the Expo is where retail stores shop for candy that will later be sold to the public.

Candy is a $24 billion business and while more traditional chocolates, mints, and novelty items were featured at this year's Expo, there were many candy makers showing off new sugar-free items.

Several vendors said concerns about obesity both in children and adults plus the aging population are behind the move toward sugar-free and low-calorie treats.

Swiss-based Nestle <NESZn.VX>, which makes Butterfinger and Baby Ruth chocolate bars among others, was featuring two new sugar-free versions of its Nips and Turtles. Nips is a caramel hard candy, while Turtles are chocolate-covered peanuts or pecans.

Although a small percent of the company's candy sales, the product line is growing.

"It is growing not only for Nestle but as an industry as a whole," said Patricia Bowles, spokeswoman for Nestle. "It is not only for the diabetic community, there are a lot of people today looking for a lower sugar product."

"As you get older, you need to have alternatives and hopefully you are not straying too far from the brands you grew up with," said Bowles.

At the Expo, Hershey Foods Corp. (nyse: HSY - news - people). was featuring sugar-free Reese's Peanut Butter Cups and sugar-free chocolate candy.

At the booth of gum giant Wm. Wrigley Jr. Co. (nyse: WWY - news - people) a spokeswoman said sugar-free gum has been a strong seller and accounts for much of the company's gum sales.

Another reason the sugar-free candy movement is gaining momentum is new sugar substitutes.

"What I've heard a lot of exhibitors say, is there has been a lot of advancements in the sweeteners that are available to them which make some of the products quite good," said Fussell. "What we have been seeing a lot of this year and this past year are the sugar-free chocolates."

Carbolite Foods, Inc., a Evansville, Indiana, company, displayed a variety of sugar-free and low carbohydrate chocolate bars.

"What we've done is create a market to put candy in the diet aisle," said Gerry Morrison, Carbolite president. "Our customer base is 70 to 75 percent women, average- to high-income, 23 to 55 years old."

While many of the sugar-free offerings are targeted at adults, there were some for children and young adults.

Schuster Marketing Corp. of Milwaukee was showing off its new youth-oriented, sugar-free Blitz Stoked Power Mints, aimed at 7- to 22-year olds, said Steve Schuster, president of Schuster Marketing Corp., which sells the mints.

"You have all of these action mentality people buying sugar-free now too," said Schuster.

Copyright 2003, Reuters News Service