Summary: The Fleer Chewing Gum Company
2.1 History:
A person called Walter E. Diemer, was an accountant for the Fleer Chewing Gum Company during the year 1928. The company which was located in Philadelphia, was experimenting with new gum recipes. One recipe was found and that recipe was less sticky and can be stretched more easily when compared to the regular chewing gum. This chewing gum became highly successful and was named by the president of Fleer as Dubble Bubble because of its stretchy texture. The original bubble gum was pink because that was the only dye Diemer had on hand at the time and it was his favourite colour. In the modern chewing gum manufacturing process, if natural rubber such as chicle is used, it must pass a number of purity and cleanliness tests. However, …show more content…
most of the modern chewing gum manufacturing company use synthetic gum based materials. These synthetic gum based materials allow for longer-lasting flavour, a better texture, and a decrease in tastelessness.
The American Indians chewed resin made from the sap of spruce trees. The New England settlers picked up this practice, and in 1848, John B. Curtis developed and sold the first commercial chewing gum called The State of Maine Pure Spruce Gum. Around 1850 a gum made from paraffin wax was developed and soon exceeded the spruce gum in popularity. William Semple filed an early patent on chewing gum, patent number 98,304, on December 28, 1869.
Modern chewing gum was first developed in the 1860’s, when chicle was brought from Mexico by the former President, General Antonio Lopez de Santa Anna, to New York, where he gave it to Thomas Adams for use as a rubber substitute. Chicle succeed as a replacement for gum, rather than replacement for rubber. The gum was cut into strips and marketed as Adams New York Chewing Gum in 1871. Black Jack (1884) and Chiclets (1899), it soon conquered the market. Synthetic gums were first introduced to the U.S. after chicle no longer fulfilled the needs of making good chewing gum.
Decline in popularity:
While chewing gum was widely accepted from the mid 20th century until the 2000s, in the early 2010s its sales has declined, falling 11% in the United States between 2009 and 2013 after peaking in 2009. Reasons for decline in the sales of chewing gums include more alternatives for fresh breath, a backlash against the mess gum makes, and poor marketing choices by gum companies.
Idea of adding flavours and Colours to the gums:
Various colours of bubblegum balls.
Bubble gum is available in various colours and flavours. A "bubblegum flavour" is the taste of the unflavoured gum, made from chemicals, extracts of the fruits and others, although the exact ingredients were kept secret to the customers. When blended, the chemicals and extracts combine to make a sweet, pleasant flavour. Gums made with coconut, vanilla, peppermint and almond extracts are available.
Flavours include strawberry, lemon, blue raspberry, cherry, apple, watermelon, cinnamon, cotton candy, peppermint, banana and grape. Malic acid is used for apple flavour, acetophenone is used for cherry, cinnamic aldehyde is used for cinnamon, ethyl propionate is used for fruit punch and allyl hexanoate is used for pineapple. More unusual flavours such as cola, berry, peach, lemon lime, tropical fruit, pineapple, orange or fruit punch can also be found, as well as novelty tastes such as bacon or popcorn.
In taste tests, children tend to desire strawberry and blue raspberry flavours, rejecting more complex flavours as they say these make them want to swallow the gum rather than continue chewing.
Timeline of Chewing gum Industry:
• The first commercial chewing gum was made in the year 1848 and was sold by John Bacon Curtis. He experimented with spruce tree resin and prepared a sticky, rubbery material, which could be chewed. This gum was called the State of Maine Pure Spruce Gum.
• In 1850, John B. Curtis added flavour to the gum and paraffin for soft and rubbery feel. These flavoured paraffin gums becoming more popular than spruce gums.
• The first patent for the chewing gum was received by Amos Tyler on July 27, 1869 but he never sold his gum commercially.
• William Finley Semple of Mount Vernon, Ohio obtained the first chewing gum patent in December 1869 (patent number 98,304). However, Semple never commercially prepared chewing gums.
• In 1869, Mexican General Antonio Lopez de Santa Anna told his idea of chicle (for chewing gum) to Thomas Adams.
• In the same period, Tomas Adams simply added flavour to the chicle. This was the first mass marketed chewing gum, called Adams New York Chewing Gum.
• Weaton W. Kilbourn got his patent on September 27, 1870 (number 107,883) for a tobacco substitute gum.
• Thomas Adams got his patent on February 14, 1871 (number 111,798) for a process to manufacture gum.
• A machine which manufactures the gum was patented by Thomas Adams in 1871. Same year Adams created a licorice-flavoured gum called Black Jack.
• In the 1870s, Adams & Sons sold "Sour Orange" flavoured gum as an after supper candy.
• Later during 1880’s problem with holding flavour was fixed, when William White mixed sugar and corn syrup with chicle.
He also added extracts of peppermint for better taste. This peppermint-flavoured gum was called Yucatan gum.
• In the year 1880, Frank Fleer and Henry Fleer experimented with chicle from sapodilla tree. Fleer brothers made cubes of the chicle substance and overlaid the cubes with sweet material. They called it as Chiclets.
• In the year 1888, Thomas Adams’ chewing gum, Tutti-Frutti, was the first chewing gum that was sold from a vending machine. This first chewing gum vending machine was located in one of the New York City subway stations.
• In the year 1891, William Wrigley Jr came up with Wrigley Chewing Gum.
• In the year 1892, Mr. Wrigley got the idea of providing two packages of chewing gum with each can of baking powder. This offer was a huge success.
• In the year 1893, the first two brands of Wrigley’s were Vassar and Lotta and Wrigley's Spearmint was launched later that same year.
• Dr Edward Beeman invented gum that was supposed to serve as a “digestive aid” by adding pepsin powder. This kind of gum is still available today.
• In the year 1899, New York druggist Franklin V. Canning invented Dentyne gum. These gums helped to overcome the oral-care …show more content…
problems.
• In the late 19th century, there was big competition on USA chewing gum market.
• By the early 1900s, gum was well on its way to its current popularity. Wrigley brands became world famous.
• In the year 1906, Frank Fleer invented the world’s first bubble gum called Blibber-Blubber gum. Since that gum was too sticky it never sold well.
• In the year 1914, Wrigley’s Doublemint, popular brand was created when William Wrigley and Henry Fleer added mint and extracts of fruits to a chewing gum with chicle. Wrigley’s Doublemint factories were started in Canada in the year 1910, Australia in the year 1915, Great Britain in the year 1927 and New Zealand in the year 1939.
• In the year 1928, an accountant for the Fleer gum company Walter Diemer accidentally founded bubble gum that was not sticky. He named it Double Bubble. This pink coloured gum was based on original Frank Fleer formula.
• In the year 1950, Sugarless gum was introduced. The new idea behind sugar free gum belongs to a dentist, Dr. Petrulis.
• In the year 1951, the Topps Company reinvented the popularity of bubble gum by adding baseball cards to a package, replacing their previous gift of a single cigarette.
• In the late 1960's, the first sugar free bubble gum called Blammo was introduced.
2.2 Evolution of Chewing gum Industry:
Chart No.2.1
Industry Snapshot
The American chewing gum industry has undergone a strong periods of growth and decline through the twentieth century. Since the 1970s, this industry grew at a faster pace overseas than in the United States. The industry's total success was the effect of aggressive marketing campaigns and low manufacturing costs.
As one of the best performers in the candy industry, chewing gum continues to be a desired product among U.S. consumers. Consumers, including seniors, adults and children alike continue chewing various types of gum for various reasons, thereby adding to the market demand in this industry. Innovations such as smoking-cessation gums and dental gums, which promise to clean or whiten teeth, entered the industry in the late 1990s. The National Confectioners Association reported in 2006 that 72% of the total gum market involved sugarless gum, with the remaining 28% for regular gum.
In the late 2000s, it was observed that demand for regular gums was decreased and demand for sugarless gum brands increased. In fact, Information Resources, Inc., reported in May 2009 that sales for regular gum in the prior 52 weeks fell 10.9% whereas sugarless gum sales increased 9.6% to $1.14 billion during the same period. The sugarless gum market posted strong results even as the global economic downturn showed no sign of waning, climbing 7.3% in 2009. In addition, chewing gum manufacturers introduced 114 new products, most of which were considered "Fresh-N-Fruity."
2.3 Present Scenario:
Though chewing gum bases are basically synthetic in the 2000s, gum was originally extracted from natural sources such as tree resins and saps. American Chicle's Trident and LifeSavers' CareFree appeared in the mid-1960s and conquered the early sugarless gum market. In the year 1980, Wrigley's Extra gum was launched, and in the year 1990, it controlled 40% of the $480 million sugar-free gum market.
Sugar-free gums began using xylitol, an artificial sweetener, in the late 1970s. However, in 1978, the U.S. Food and Drug Administration started investigating possible links between cancer and xylitol. Although no link was ever recognized, products made with xylitol were reformulated using other artificial sweeteners. Further xylitol was reintroduced by Leaf Specialty Products, which manufactured XyliFresh, a chewing gum proposed for fighting plaque.
In the 1980s, chewing gum sales had increased by advertisements that promoted chewing gum as an alternative to smoking. Other advertisements have endorsed sugar-free gums as being good for teeth. In addition to advertisements on radio, television and in newspapers, companies in this industry use sales representatives to market their products. These representatives frequently meet retailers and help them with display designs and layouts.
In the twentieth century, companies launched novelty bubble gums, which were packaged in different shapes and unusual forms, such as school lockers and toothpaste tubes. In the early 1990s, sour gum became famous with kids. These chewing gums have an extremely sour taste that becomes sweet and eventually has a neutral or tangy taste. Children often used these gums to play jokes on friends or to prove their mettle. In the year 1992, sour gum brought in an estimated $70 million in retail sales. Moreover, as the demand for sour gum caught suppliers by surprise, a black market for the product emerged.
In the year 1993, LifeSavers made industry news with its pioneering approach to selling bubble gum. Its Bubble Yum product was promoted through a travelling virtual reality arcade game, and LifeSavers was the first company to use the game as a marketing tool. The game, called Planet Bubble Yum, featured chunks of bubble gum flying around in three-dimensional animation. Bubble Yum charged proof of purchase seals for admission. The tour travelled to shopping malls in major American cities, with an standard attendance of 1,100 people per place.
After a slump in the 1970s and 1980s, chewing gum manufacturers entered the 1990s on a slight upswing. A new interest in chewing gum emerged in the United States of America when gum was promoted as an substitute to smoking in public places where smoking was increasingly prohibited. Domestic per capita consumption of chewing gum increased from 168 sticks in 1986 to 183 sticks in 1992, resulting in a 1.3% average annual rise in gum sales.
The growth rate of gum decreased slightly in the late 1990s, and the $1 billion U.S. gum market showed little sign of growth. To blame were increase in sale of mints, including new intensely flavoured mints. Mint sales increased by 40% in the second half of the decade. To struggle declining sales, gum manufacturers introduced new, intensely flavoured products. Wrigley introduced a brand called Everest Powerful Mint Gum through subsidiary Amurol Confections Co. The strong mint gum was aimed towards the adults who were addicted on strong mints. Wrigley also introduced Eclipse gum in the summer of 1999, its first new product in five years. Eclipse, a mint gum, was marketed as a breath deodorizing gum.
According to the U.S. Census Bureau's Current Industrial Reports, in the year 2006, industry manufacturers had shipments of 399.6 million pounds of bubble gum, chewing gum and chewing gum base, representing a nearly 5% increase from 2005. This comprised about 6% of the overall confectionery products industry. Further, the value of the 2006 shipments increased to 8.5% from 2005 to nearly $1.8 billion in 2006. Manufacturing Confectioner reported in 2006 that dollar sales for gum were $1.1 billion in 2004, resulting in a 4.1% increase from 2005 in grocery, drug, and mass merchandising stores. In the meantime, the U.S Census Bureau's Department of Commerce indicated that retail sales for gum equalled $2.7 billion in 2006 and wholesale sales totalled $1.8 billion during that time--an 8.3% increase from 2005. Information Resources, Inc., reported in February 2006 that the maximum gum sales in the prior 52 weeks had occurred in convenience stores (38%), followed by mass merchandisers (28%), food (supermarket) sales (24%), and drug stores (10%).
The top sugarless gum brands in 2006-2007 per dollar sales, according to Information Resources Inc. and reported by Candy Industry, were Wrigley's Extra ($155.7 million); Wrigley's Orbit ($185.3 million); Wrigley's Eclipse ($95 million); Trident ($114.2 million); and Dentyne Ice ($74.1 million). Other types of gum gaining popularity included smoking-cessation gum, teeth-whitening gum, breath-refreshing gum and periodontal gum.
In the year 2004, the National Confectioners Association reported that 86 new gum products were introduced. During this period, sugarless gum continued to boom with a 5.7% increase in purchases. Gum manufacturers came up with new products, especially to target children, who are one of their biggest groups of consumers. Therefore, gum manufacturers spend considerable time and money researching new products that will appeal to the children. Packaging plays an crucial role in gum purchases. Innovative products like 3-D puzzle toy filled with bubble bits, gum squeezed from a tube and several feet of gum rolled up like ribbon offer consumers variety. In the meantime, Wrigley focused on practicality with a package brought onto the market in 2006 for its Eclipse gum that was made for car cupholders. Increasingly popular are sour and intensely flavoured gums. In the mid-2000s, more than a thousand varieties of gum were both made and marketed in the United States, with some classics returning, including Black Jack and Beeman.
To reach ahead of the children's market, the industry has educated the healthful benefits of gums. In particular, many adults are found to use gum as a means to lose weight to fend off hunger as a low-calorie alternative to snacking. In the year 2007, Wrigley's began a product tie-in with its Extra brand with the NBC television show "The Biggest Loser,' which featured 18 overweight contestants as they attempt to shed the most pounds. The company also sponsored a "Walk and Chew Gum Challenge" to endorse weight control throughout the country.
Current Conditions:
According to industry statistics, manufacturers had shipments of 3.6 billion pounds of sugar and non-sugar chewing gum during the year 2009. Although shipments increased, higher commodity prices were noticeable when shipment values totalled $1.7 billion. Industry consolidation was at the forefront of the gum industry in the year 2008; however, none stand out compared to the acquisition of William Wrigley Jr. Co. by Mars. Traditionally, Nestle, Cadbury and Mars fought for the first place position. With William Wrigley Jr.'s more than $5.5 billion in annual sales and Mars' more than $10 billion in annual sales, the merged company had a 50% lead over its closest contender.
One study carried out at the University of Rhode Island in combination with the Wrigley Science Institute further validated that chewing sugarless gum can "reduce calorie intake and increase energy expenditure," reported in the November 2009 issue of Science Daily. Although this was considered a "short term study," it was good news for the chewing gum industry, especially when it comes to their share of the confectionery market. Gum sales were high despite the global weakened economic conditions. In fact, sales increased more than 10% between 2007 and 2010 with no slow down expected through 2014, according to Chicago-based research firm, Mintel.
Industry Leaders:
The Wrigley company of Chicago was founded in 1891, it was the world's leading manufacturer of chewing gum. Wrigley sells its gum products in more than 140 countries. Its subsidiaries produce chewing gum base and manufacture novelty gums.
Other industry leaders included Hershey (Bubble Yum and Ice Breakers), Cadbury Adams USA (a subsidiary of Cadbury Schweppes), and Topps (Bazooka).
America and the World:
Much of U.S.-produced chewing gum is sold abroad. Wrigley has operated in Europe ever since the 1910s. In the mid-1990s, Wrigley's business overseas increased over 10% annually, and during that time, the company started a factory in China, where people already were introduced to chewing gum through shipments from Singapore. By the year 2006, the company was the leading gum and confectionery company in China with an average 18% increase in annual volume since 2000.
Previously known as Warner-Lambert, Cadbury Adams USA also fared well in abroad markets. Its parent company, Cadbury Schweppes, was the leading confectionery company all over the world. The company's markets included Asia, Europe, Canada, Latin America, and the Middle East. The company reported that emerging markets in its confectionery divisions demonstrated a growth of 12% in 2006.
Research and Technology:
Companies in this industry frequently seek ingredients and processes to enhance product quality and packaging. During 1980s, new synthetic gum bases were developed to overcome the restrictions of formerly used natural ingredients. These new materials were aimed at improving texture, increasing gum flavour, and reducing tackiness. In the 2000s, major gum manufacturers introduced their own products of teeth-whitening gums in reaction to general consumer demand for whitening products.
The environmental impact of the packaging used for chewing gum is of significant concern for companies in this industry. These companies depend on the plastic packaging and wrappers to keep gum fresh, yet these materials result in huge waste. Scientists at gum companies assess and make changes to packaging and researching materials to meet future discarding and recycling requirements.
Chewing Gums: The Fastest Growing Segment of Indian Confectionery Market
The chewing gum market is growing at a rapid rate among all segments of the Indian confectionery market. According to a recent report by RNCOS, "Indian Confectionery Market Analysis", the chewing gum market is growing at a CAGR of more than 30% during the period 2012-2015, which is remarkably much greater than the other segments of the confectionery industry. The changing insight of Indian consumers is the biggest cause for this growth. Chewing gum companies were earlier targeting mainly on kids but now they have started to target the adult category as well.
Increase in the purchasing power of people due to the swift development of the country is another main cause for the growth of Indian chewing market.
Aggressive marketing strategies of manufactures also play an major role for the market’s growth. The chewing gum manufacturers in the country are depending on low pricing strategy, and a large retail and distribution network to ensure that their gum products are offered in shops ranging from big malls to small kirana (local) stores. Manufacturers are also making tactful advertising and marketing strategies to position the products in the minds of the consumers as planned. Launching chewing gums in a variety of flavours is one of the successful strategies of the manufacturers.
Apart from chewing gum market, the RNCOS report also discusses chocolate and sugar confectionery market in detail and facilitates the market forecasting of each segment and their sub-segments. This will make clients understand the current and future outlook of the confectionery market. In addition, the report comprehensively analyzed the growth drivers of Indian confectionery market like increasing young population, rising income, affordability and untapped rural
market.
A person called Walter E. Diemer, was an accountant for the Fleer Chewing Gum Company during the year 1928. The company which was located in Philadelphia, was experimenting with new gum recipes. One recipe was found and that recipe was less sticky and can be stretched more easily when compared to the regular chewing gum. This chewing gum became highly successful and was named by the president of Fleer as Dubble Bubble because of its stretchy texture. The original bubble gum was pink because that was the only dye Diemer had on hand at the time and it was his favourite colour. In the modern chewing gum manufacturing process, if natural rubber such as chicle is used, it must pass a number of purity and cleanliness tests. However, …show more content…
most of the modern chewing gum manufacturing company use synthetic gum based materials. These synthetic gum based materials allow for longer-lasting flavour, a better texture, and a decrease in tastelessness.
The American Indians chewed resin made from the sap of spruce trees. The New England settlers picked up this practice, and in 1848, John B. Curtis developed and sold the first commercial chewing gum called The State of Maine Pure Spruce Gum. Around 1850 a gum made from paraffin wax was developed and soon exceeded the spruce gum in popularity. William Semple filed an early patent on chewing gum, patent number 98,304, on December 28, 1869.
Modern chewing gum was first developed in the 1860’s, when chicle was brought from Mexico by the former President, General Antonio Lopez de Santa Anna, to New York, where he gave it to Thomas Adams for use as a rubber substitute. Chicle succeed as a replacement for gum, rather than replacement for rubber. The gum was cut into strips and marketed as Adams New York Chewing Gum in 1871. Black Jack (1884) and Chiclets (1899), it soon conquered the market. Synthetic gums were first introduced to the U.S. after chicle no longer fulfilled the needs of making good chewing gum.
Decline in popularity:
While chewing gum was widely accepted from the mid 20th century until the 2000s, in the early 2010s its sales has declined, falling 11% in the United States between 2009 and 2013 after peaking in 2009. Reasons for decline in the sales of chewing gums include more alternatives for fresh breath, a backlash against the mess gum makes, and poor marketing choices by gum companies.
Idea of adding flavours and Colours to the gums:
Various colours of bubblegum balls.
Bubble gum is available in various colours and flavours. A "bubblegum flavour" is the taste of the unflavoured gum, made from chemicals, extracts of the fruits and others, although the exact ingredients were kept secret to the customers. When blended, the chemicals and extracts combine to make a sweet, pleasant flavour. Gums made with coconut, vanilla, peppermint and almond extracts are available.
Flavours include strawberry, lemon, blue raspberry, cherry, apple, watermelon, cinnamon, cotton candy, peppermint, banana and grape. Malic acid is used for apple flavour, acetophenone is used for cherry, cinnamic aldehyde is used for cinnamon, ethyl propionate is used for fruit punch and allyl hexanoate is used for pineapple. More unusual flavours such as cola, berry, peach, lemon lime, tropical fruit, pineapple, orange or fruit punch can also be found, as well as novelty tastes such as bacon or popcorn.
In taste tests, children tend to desire strawberry and blue raspberry flavours, rejecting more complex flavours as they say these make them want to swallow the gum rather than continue chewing.
Timeline of Chewing gum Industry:
• The first commercial chewing gum was made in the year 1848 and was sold by John Bacon Curtis. He experimented with spruce tree resin and prepared a sticky, rubbery material, which could be chewed. This gum was called the State of Maine Pure Spruce Gum.
• In 1850, John B. Curtis added flavour to the gum and paraffin for soft and rubbery feel. These flavoured paraffin gums becoming more popular than spruce gums.
• The first patent for the chewing gum was received by Amos Tyler on July 27, 1869 but he never sold his gum commercially.
• William Finley Semple of Mount Vernon, Ohio obtained the first chewing gum patent in December 1869 (patent number 98,304). However, Semple never commercially prepared chewing gums.
• In 1869, Mexican General Antonio Lopez de Santa Anna told his idea of chicle (for chewing gum) to Thomas Adams.
• In the same period, Tomas Adams simply added flavour to the chicle. This was the first mass marketed chewing gum, called Adams New York Chewing Gum.
• Weaton W. Kilbourn got his patent on September 27, 1870 (number 107,883) for a tobacco substitute gum.
• Thomas Adams got his patent on February 14, 1871 (number 111,798) for a process to manufacture gum.
• A machine which manufactures the gum was patented by Thomas Adams in 1871. Same year Adams created a licorice-flavoured gum called Black Jack.
• In the 1870s, Adams & Sons sold "Sour Orange" flavoured gum as an after supper candy.
• Later during 1880’s problem with holding flavour was fixed, when William White mixed sugar and corn syrup with chicle.
He also added extracts of peppermint for better taste. This peppermint-flavoured gum was called Yucatan gum.
• In the year 1880, Frank Fleer and Henry Fleer experimented with chicle from sapodilla tree. Fleer brothers made cubes of the chicle substance and overlaid the cubes with sweet material. They called it as Chiclets.
• In the year 1888, Thomas Adams’ chewing gum, Tutti-Frutti, was the first chewing gum that was sold from a vending machine. This first chewing gum vending machine was located in one of the New York City subway stations.
• In the year 1891, William Wrigley Jr came up with Wrigley Chewing Gum.
• In the year 1892, Mr. Wrigley got the idea of providing two packages of chewing gum with each can of baking powder. This offer was a huge success.
• In the year 1893, the first two brands of Wrigley’s were Vassar and Lotta and Wrigley's Spearmint was launched later that same year.
• Dr Edward Beeman invented gum that was supposed to serve as a “digestive aid” by adding pepsin powder. This kind of gum is still available today.
• In the year 1899, New York druggist Franklin V. Canning invented Dentyne gum. These gums helped to overcome the oral-care …show more content…
problems.
• In the late 19th century, there was big competition on USA chewing gum market.
• By the early 1900s, gum was well on its way to its current popularity. Wrigley brands became world famous.
• In the year 1906, Frank Fleer invented the world’s first bubble gum called Blibber-Blubber gum. Since that gum was too sticky it never sold well.
• In the year 1914, Wrigley’s Doublemint, popular brand was created when William Wrigley and Henry Fleer added mint and extracts of fruits to a chewing gum with chicle. Wrigley’s Doublemint factories were started in Canada in the year 1910, Australia in the year 1915, Great Britain in the year 1927 and New Zealand in the year 1939.
• In the year 1928, an accountant for the Fleer gum company Walter Diemer accidentally founded bubble gum that was not sticky. He named it Double Bubble. This pink coloured gum was based on original Frank Fleer formula.
• In the year 1950, Sugarless gum was introduced. The new idea behind sugar free gum belongs to a dentist, Dr. Petrulis.
• In the year 1951, the Topps Company reinvented the popularity of bubble gum by adding baseball cards to a package, replacing their previous gift of a single cigarette.
• In the late 1960's, the first sugar free bubble gum called Blammo was introduced.
2.2 Evolution of Chewing gum Industry:
Chart No.2.1
Industry Snapshot
The American chewing gum industry has undergone a strong periods of growth and decline through the twentieth century. Since the 1970s, this industry grew at a faster pace overseas than in the United States. The industry's total success was the effect of aggressive marketing campaigns and low manufacturing costs.
As one of the best performers in the candy industry, chewing gum continues to be a desired product among U.S. consumers. Consumers, including seniors, adults and children alike continue chewing various types of gum for various reasons, thereby adding to the market demand in this industry. Innovations such as smoking-cessation gums and dental gums, which promise to clean or whiten teeth, entered the industry in the late 1990s. The National Confectioners Association reported in 2006 that 72% of the total gum market involved sugarless gum, with the remaining 28% for regular gum.
In the late 2000s, it was observed that demand for regular gums was decreased and demand for sugarless gum brands increased. In fact, Information Resources, Inc., reported in May 2009 that sales for regular gum in the prior 52 weeks fell 10.9% whereas sugarless gum sales increased 9.6% to $1.14 billion during the same period. The sugarless gum market posted strong results even as the global economic downturn showed no sign of waning, climbing 7.3% in 2009. In addition, chewing gum manufacturers introduced 114 new products, most of which were considered "Fresh-N-Fruity."
2.3 Present Scenario:
Though chewing gum bases are basically synthetic in the 2000s, gum was originally extracted from natural sources such as tree resins and saps. American Chicle's Trident and LifeSavers' CareFree appeared in the mid-1960s and conquered the early sugarless gum market. In the year 1980, Wrigley's Extra gum was launched, and in the year 1990, it controlled 40% of the $480 million sugar-free gum market.
Sugar-free gums began using xylitol, an artificial sweetener, in the late 1970s. However, in 1978, the U.S. Food and Drug Administration started investigating possible links between cancer and xylitol. Although no link was ever recognized, products made with xylitol were reformulated using other artificial sweeteners. Further xylitol was reintroduced by Leaf Specialty Products, which manufactured XyliFresh, a chewing gum proposed for fighting plaque.
In the 1980s, chewing gum sales had increased by advertisements that promoted chewing gum as an alternative to smoking. Other advertisements have endorsed sugar-free gums as being good for teeth. In addition to advertisements on radio, television and in newspapers, companies in this industry use sales representatives to market their products. These representatives frequently meet retailers and help them with display designs and layouts.
In the twentieth century, companies launched novelty bubble gums, which were packaged in different shapes and unusual forms, such as school lockers and toothpaste tubes. In the early 1990s, sour gum became famous with kids. These chewing gums have an extremely sour taste that becomes sweet and eventually has a neutral or tangy taste. Children often used these gums to play jokes on friends or to prove their mettle. In the year 1992, sour gum brought in an estimated $70 million in retail sales. Moreover, as the demand for sour gum caught suppliers by surprise, a black market for the product emerged.
In the year 1993, LifeSavers made industry news with its pioneering approach to selling bubble gum. Its Bubble Yum product was promoted through a travelling virtual reality arcade game, and LifeSavers was the first company to use the game as a marketing tool. The game, called Planet Bubble Yum, featured chunks of bubble gum flying around in three-dimensional animation. Bubble Yum charged proof of purchase seals for admission. The tour travelled to shopping malls in major American cities, with an standard attendance of 1,100 people per place.
After a slump in the 1970s and 1980s, chewing gum manufacturers entered the 1990s on a slight upswing. A new interest in chewing gum emerged in the United States of America when gum was promoted as an substitute to smoking in public places where smoking was increasingly prohibited. Domestic per capita consumption of chewing gum increased from 168 sticks in 1986 to 183 sticks in 1992, resulting in a 1.3% average annual rise in gum sales.
The growth rate of gum decreased slightly in the late 1990s, and the $1 billion U.S. gum market showed little sign of growth. To blame were increase in sale of mints, including new intensely flavoured mints. Mint sales increased by 40% in the second half of the decade. To struggle declining sales, gum manufacturers introduced new, intensely flavoured products. Wrigley introduced a brand called Everest Powerful Mint Gum through subsidiary Amurol Confections Co. The strong mint gum was aimed towards the adults who were addicted on strong mints. Wrigley also introduced Eclipse gum in the summer of 1999, its first new product in five years. Eclipse, a mint gum, was marketed as a breath deodorizing gum.
According to the U.S. Census Bureau's Current Industrial Reports, in the year 2006, industry manufacturers had shipments of 399.6 million pounds of bubble gum, chewing gum and chewing gum base, representing a nearly 5% increase from 2005. This comprised about 6% of the overall confectionery products industry. Further, the value of the 2006 shipments increased to 8.5% from 2005 to nearly $1.8 billion in 2006. Manufacturing Confectioner reported in 2006 that dollar sales for gum were $1.1 billion in 2004, resulting in a 4.1% increase from 2005 in grocery, drug, and mass merchandising stores. In the meantime, the U.S Census Bureau's Department of Commerce indicated that retail sales for gum equalled $2.7 billion in 2006 and wholesale sales totalled $1.8 billion during that time--an 8.3% increase from 2005. Information Resources, Inc., reported in February 2006 that the maximum gum sales in the prior 52 weeks had occurred in convenience stores (38%), followed by mass merchandisers (28%), food (supermarket) sales (24%), and drug stores (10%).
The top sugarless gum brands in 2006-2007 per dollar sales, according to Information Resources Inc. and reported by Candy Industry, were Wrigley's Extra ($155.7 million); Wrigley's Orbit ($185.3 million); Wrigley's Eclipse ($95 million); Trident ($114.2 million); and Dentyne Ice ($74.1 million). Other types of gum gaining popularity included smoking-cessation gum, teeth-whitening gum, breath-refreshing gum and periodontal gum.
In the year 2004, the National Confectioners Association reported that 86 new gum products were introduced. During this period, sugarless gum continued to boom with a 5.7% increase in purchases. Gum manufacturers came up with new products, especially to target children, who are one of their biggest groups of consumers. Therefore, gum manufacturers spend considerable time and money researching new products that will appeal to the children. Packaging plays an crucial role in gum purchases. Innovative products like 3-D puzzle toy filled with bubble bits, gum squeezed from a tube and several feet of gum rolled up like ribbon offer consumers variety. In the meantime, Wrigley focused on practicality with a package brought onto the market in 2006 for its Eclipse gum that was made for car cupholders. Increasingly popular are sour and intensely flavoured gums. In the mid-2000s, more than a thousand varieties of gum were both made and marketed in the United States, with some classics returning, including Black Jack and Beeman.
To reach ahead of the children's market, the industry has educated the healthful benefits of gums. In particular, many adults are found to use gum as a means to lose weight to fend off hunger as a low-calorie alternative to snacking. In the year 2007, Wrigley's began a product tie-in with its Extra brand with the NBC television show "The Biggest Loser,' which featured 18 overweight contestants as they attempt to shed the most pounds. The company also sponsored a "Walk and Chew Gum Challenge" to endorse weight control throughout the country.
Current Conditions:
According to industry statistics, manufacturers had shipments of 3.6 billion pounds of sugar and non-sugar chewing gum during the year 2009. Although shipments increased, higher commodity prices were noticeable when shipment values totalled $1.7 billion. Industry consolidation was at the forefront of the gum industry in the year 2008; however, none stand out compared to the acquisition of William Wrigley Jr. Co. by Mars. Traditionally, Nestle, Cadbury and Mars fought for the first place position. With William Wrigley Jr.'s more than $5.5 billion in annual sales and Mars' more than $10 billion in annual sales, the merged company had a 50% lead over its closest contender.
One study carried out at the University of Rhode Island in combination with the Wrigley Science Institute further validated that chewing sugarless gum can "reduce calorie intake and increase energy expenditure," reported in the November 2009 issue of Science Daily. Although this was considered a "short term study," it was good news for the chewing gum industry, especially when it comes to their share of the confectionery market. Gum sales were high despite the global weakened economic conditions. In fact, sales increased more than 10% between 2007 and 2010 with no slow down expected through 2014, according to Chicago-based research firm, Mintel.
Industry Leaders:
The Wrigley company of Chicago was founded in 1891, it was the world's leading manufacturer of chewing gum. Wrigley sells its gum products in more than 140 countries. Its subsidiaries produce chewing gum base and manufacture novelty gums.
Other industry leaders included Hershey (Bubble Yum and Ice Breakers), Cadbury Adams USA (a subsidiary of Cadbury Schweppes), and Topps (Bazooka).
America and the World:
Much of U.S.-produced chewing gum is sold abroad. Wrigley has operated in Europe ever since the 1910s. In the mid-1990s, Wrigley's business overseas increased over 10% annually, and during that time, the company started a factory in China, where people already were introduced to chewing gum through shipments from Singapore. By the year 2006, the company was the leading gum and confectionery company in China with an average 18% increase in annual volume since 2000.
Previously known as Warner-Lambert, Cadbury Adams USA also fared well in abroad markets. Its parent company, Cadbury Schweppes, was the leading confectionery company all over the world. The company's markets included Asia, Europe, Canada, Latin America, and the Middle East. The company reported that emerging markets in its confectionery divisions demonstrated a growth of 12% in 2006.
Research and Technology:
Companies in this industry frequently seek ingredients and processes to enhance product quality and packaging. During 1980s, new synthetic gum bases were developed to overcome the restrictions of formerly used natural ingredients. These new materials were aimed at improving texture, increasing gum flavour, and reducing tackiness. In the 2000s, major gum manufacturers introduced their own products of teeth-whitening gums in reaction to general consumer demand for whitening products.
The environmental impact of the packaging used for chewing gum is of significant concern for companies in this industry. These companies depend on the plastic packaging and wrappers to keep gum fresh, yet these materials result in huge waste. Scientists at gum companies assess and make changes to packaging and researching materials to meet future discarding and recycling requirements.
Chewing Gums: The Fastest Growing Segment of Indian Confectionery Market
The chewing gum market is growing at a rapid rate among all segments of the Indian confectionery market. According to a recent report by RNCOS, "Indian Confectionery Market Analysis", the chewing gum market is growing at a CAGR of more than 30% during the period 2012-2015, which is remarkably much greater than the other segments of the confectionery industry. The changing insight of Indian consumers is the biggest cause for this growth. Chewing gum companies were earlier targeting mainly on kids but now they have started to target the adult category as well.
Increase in the purchasing power of people due to the swift development of the country is another main cause for the growth of Indian chewing market.
Aggressive marketing strategies of manufactures also play an major role for the market’s growth. The chewing gum manufacturers in the country are depending on low pricing strategy, and a large retail and distribution network to ensure that their gum products are offered in shops ranging from big malls to small kirana (local) stores. Manufacturers are also making tactful advertising and marketing strategies to position the products in the minds of the consumers as planned. Launching chewing gums in a variety of flavours is one of the successful strategies of the manufacturers.
Apart from chewing gum market, the RNCOS report also discusses chocolate and sugar confectionery market in detail and facilitates the market forecasting of each segment and their sub-segments. This will make clients understand the current and future outlook of the confectionery market. In addition, the report comprehensively analyzed the growth drivers of Indian confectionery market like increasing young population, rising income, affordability and untapped rural
market.