Sweet success
THE ECONOMY | Candy makers have irresistible product, even in tough times
Like a lot of people, Nate Towne is cutting back on spending. He's carpooling to work and only shops at grocery stores that take coupons or offer discount ''rewards'' cards.
But even in this economy, he remains a ''candy snob.''
(AP)
''I'm serious when I say I'll pay a premium for my top favorites because in the grand scheme of things, it's only a few bucks,'' says Towne, a 37-year-old public relations consultant in Madison, Wis.
He's not the only one who's stuck on candy. Americans buy billions of dollars worth each year -- with more than $29 billion in retail sales in 2007, up 3 percent from 2006, according to the National Confectioners Association.
That sizable sweet tooth is a big reason many analysts say the candy business is likely to fare better than other nonessentials in these times, even as prices for commodities such as sugar, milk and cocoa have risen.
Not too surprising. During the Great Depression a nickel chocolate bar was sustenance. Some had names such as ''Chicken Dinner.''
The bottom line is: As vices go, candy is still relatively cheap for most consumers.
Experts say the largest companies with dominant brands should do well, as will smaller specialty shops, such as Sarah's Pastries & Candies in Lincoln Park. The French-style chocolate business of Sarah Levy is just the type of treat Nancy Bason seeks out.
''I don't buy chocolate every single day,'' says Bason, who lives nearby. ''So if I'm treating myself once a week, it doesn't seem like I really need to cut back because it's not an every-day purchase.''
AP