SpecialtyFood.com

By Nicole Potenza Denis

candy counter

Gluten-free, dairy-free and vegan treats are filling the candy aisles, but are you taking advantage of their sales potential? Here’s what you need to know about these categories with tips on the best ways to merchandise these “free” sweets.

Consumers choosing vegan, gluten-free, milk-free or other special diets have many premium options to choose from in the candy aisle—they just may not know about them.

“In the past, candy was perceived as ‘cheap and junky,’” says Dawn Van Hee, founder of naturalcandystore.com, an e-commerce site she started with her family in October 2007 that categorizes candy and chocolate by different food sensitivities, allergies and diets. “Now that is changing, especially with all the better-for-you candies available. Customers who pay attention to ingredients in everyday foods pay as much attention to ingredients in candy—especially if they have life-threatening food allergies or have made an ethical food choice. While these customers probably tend to eat less candy than the mainstream, they respond to and appreciate some of the newer options,” notes Van Hee.

The key to tapping into these consumers is to better familiarize yourself with current and potential offerings that fit new profitable categories as well as help educate your customers about what is available to them.

Vegan and Dairy-Free Treats
More consumers are seeking candies that fit into a vegan diet and lifestyle, which excludes the use of animal products. Finding these candies can often be as easy as reading a label, says Francine Matalon-Degni, a New York City-based food photography prop stylist who follows a vegan lifestyle. Red-flag ingredients for vegans can include gelatin, lard or any unspecified natural flavorings that could be derived from animals. There are also certification labels that may be used, including the Certified Vegan label by the Vegan Awareness Foundation.

Most licorice, Matalon-Degni notes, is considered vegan, as long as it does not contain any flavorings or colorings derived from animals. One example is from SunRidge Farms, Santa Cruz, Calif., which makes Raspberry Red Licorice Hearts sweetened with natural raspberry powder and grape juice concentrate.

Chocolate is making strides in the vegan category, and those varieties can also be friendly to shoppers looking for dairy-free products, defined as free from any milk-based ingredients, including casein and lactose. Companies such as Endangered Species in Indianapolis offers its Vegan Collection, a dairy-free line of chocolate that is made from ethically traded, shade-grown, single-origin cocoa. All of the chocolate in the line is free of animal products, including the Dark Chocolate Bars (Extreme Dark Chocolate, 88 percent cocoa content; Supreme Dark Chocolate, 72 percent cocoa content; Dark Chocolate with Blueberries, 70 percent cocoa content; and Dark Chocolate with Cranberries
and Almonds.)

Fine & Raw, a Brooklyn, N.Y. chocolate company, specializes in artisan, agave-sweetened chocolates that are produced at low heat, contain no dairy and are vegan. Bestsellers are the Bonbon Bar and the Lucuma & Vanilla Bar, and the line also includes Raspberry and 78 percent Cacao Nib bars. “We are seeing an increasing demand for raw, vegan and dairy-free chocolate,” says Owner Daniel Sklaar. “Many people are buying it as gifts to share with friends who have never been able to
have good artisan chocolate because of
dietary constraints.”

Gluten-Free Candies
Approximately three million Americans, or one in 100 people, are affected by celiac disease, making it almost as prevalent as Type 1 diabetes, according to the renowned Mayo Clinic. Celiac disease is a life-long digestive disorder that affects children and adults. When people with celiac eat foods that contain gluten, it creates an immune-mediated toxic reaction that causes damage to the small intestine and does not allow food to be properly absorbed. Even small amounts of gluten in foods can affect those with celiac and cause health problems. Gluten is the common name for the proteins in specific grains that are harmful to persons with celiac disease. These proteins are found in all forms of wheat (including durum, semolina, spelt, kamut, einkorn and faro) and related grains rye, barley and triticale and should be eliminated from the diet. (Similarly, casein is the protein found in milk and cheese that has a molecular structure similar to gluten. Many people who follow gluten-free diets also follow casein-free diets, commonly known as the GFCF Diet. Casein is often listed on ingredient lists as sodium caseinate, calcium caseinate or milk protein.)

With celiac disease on the rise, more artisan chocolatiers are increasing the number of gluten-free treats they offer and others are shifting their manufacturing to gluten-free facilities to ensure there is no cross-contamination. Azure Chocolat, Centerport, N.Y., offers gluten-free products made in a dedicated facility, and many items are also dairy-free and vegan. “My goal with everything I make is that it’s completely decadent and indistinguishable from any other high-end, artisan treat,” says Owner Heather Foley. Her big break in specialty food retail came when Whole Foods Market picked up her Smore’s, Beauty Bark (also vegan-/dairy-free), Chocolat Smothered Grahams, Classic Toffee and hand-rolled fresh cream truffles.

Other gluten-free treats that have hit the market in recent years include 2008 Outstanding Confection sofi™ Award-winning Gummy Pandas from Bissinger’s, in St. Louis, Mo., and Licorice Caramels from Bequet Confections, Bozeman, Mt.

Credibility Perceptions and Effective Merchandising
Using the proper ingredients and promising no cross contamination during production is essential to customer trust, but it isn’t always enough. There can be a credibility problem if a company’s main focus is not on the allergen-free product, says Brad Van Dam, CEO of Marich Confectionery, Hollister, Calif. “An entity founded on a premise such as “The Gluten Free Candy Company,” for example, has the ability to ensure its product meets the claim and it will have ultimate trust with its customer base,” he notes. “Companies that exhibit the highest level of success in this area are those that establish their business on a specific promise such as gluten-free or other special-needs categories.”

However, retailers would be wise to encourage consumers to be their own best advocates of allergen-free products and to read labels closely. According to Deborah Schimberg, owner, Glee Gum, Providence, R.I., which manufactures a certified-vegetarian, gluten- and dairy-free gum product, manufacturers need to take better advantage of promoting allergy-friendly and dietary lifestyle facts on their packaging because dietary restrictions fall into several different categories. With smaller packaging, such as gum, it can be difficult, she notes. “We try to convince our retailers to create a section in their stores that is at least for natural candy, if not gluten-free. This will make it easy for customers with dietary restrictions to think about sweets the way they would other products.” She also suggests visibly promoting a list of candies that the retailer has identified as meeting certain dietary criteria.

It is especially important, agrees Van Hee of naturalcandystore.com, for manufacturers to clearly label their products. “A lot of customers might not fully understand a new diet that they’ve been put on and will rely on what is on the packaging,” she says. Van Hee also notes that it can be tricky for retailers to promote items that are gluten-free, especially since the Food and Drug Administration’s definition of gluten-free is not final. “If it doesn’t say it on the package, many retailers might be hesitant to put a certain product in a gluten-free section—they might not want take the chance,”
she adds.

To ensure merchandising accuracy, retailers should research the marketplace for companies focused on special-needs products before they build a set in their store. Staff should also be up to speed on allergen-free candy so they can answer any questions regarding what candies might comply with certain dietary needs.

“When introducing special diet items we make sure we communicate to staff the benefits of the products. This is done via sell sheets, tastings and vendor demos. All of these things assist in promoting and highlighting items that meet certain dietary restrictions,” says Karin Geiselhart, private label manager, Balducci’s Food Lover’s Market, Bethesda, Md. The retail chain is in the process of boosting its gluten-free candy section; it merchandises its special diet and allergen-free candies alongside its conventional products, but highlights them with shelf tags and other applicable
signage that talks about the products’
specific characteristics.

Consumer interest in allergen and special-needs products is expected to grow. Notes Van Dam, “The category has been increasing steadily for the past five to seven years, with a peak of activity in the last two years. I suspect that this trend will only continue and market forces will only drive innovation.” |SFM|

Nicole Potenza Denis is a contributing editor to Specialty Food Magazine.