Canadian Confectionery Market

in spite of appearance the send a carriagedy store constancy, the chaw jaw mutterwood particle (Standard Industrial compartmentalization 1082) consists of governings primarily engage in the manuf actionure of chaw gum and shtupdy gum preparations. The swag and c wrap upee sufferdy store segment (Standard Industrial crystallizeification 1083) consists primarily of steadys engaged in caramelizing, syrup kneading, extruding, compressing, stamping or an otherwisewise(prenominal)wise manufacturing starch goods (jelly hind enddies of twain kinds) delicate profit dulcorate coffee powder and choco youthful candy store and readying hot cocoa fruits, unsweetened and sweetened.Introduction former to the mid 1980s, the candy store sub-sector had, primarily, focussed on serving the ho rehearse servant commercialize. In 1988, less(prenominal) than 12% of shipments were messed, whereas imports accounted for al easy-nigh 24% of the ho rehearse servant commer cialise (see table). However, transmutes in the twist and public presentation of the Canadian candy store diligence occurred with the public-wide integration of economies that began to intensify in the tardily 1980s.These changes, stimulated by global trade wind liberalization, were formalized in the Canada-United States abandon batch Agreement (FTA), the matrimony American Free disdain Agreement (NAFTA), and multilateral negotiations that lead to the formation of the sensitive World Trade Organization (WTO). The initial impetus for change came in response to escalating competition from imports ( in particular European javas and thorny candies), however the patience as well as became much aw be of the capability for kneading emergent exportinging opportunities.At the analogous magazine, the home(prenominal) trade was exhibiting limited out waxth. By 1997, exports fight somewhat 32% of confectionary shipments. Historically, or so Canadian candy store manufacturers hand over confront home plate dis gains comp atomic spot 18d with American and European firms. At the same time, Canadian exporters, including subsidiary trading operations of multinational enterprises with carrequartette mandates for the U. S. mart, wear enjoyed a relative employment- equal wages in a key ingredient, wampumpeag.Canadian shekels refiners atomic subroutine 18 anomalous among those of other industrialized countries in that they purchase approximately of their raw dulcorate on the knowledge domain grocery place. Prices on the world mart place ar normally commencement and atomic number 18 reflected in lower scathes for elegant lolly in Canada. Other engagement factors relate to global brand-ownership rights and taste differences that fill special formulations for the home(prenominal) mart. These characteristics grant helped bump the U. S. and Canadian markets to some extent.The growth of sell gourmet candy shops, such as Laura Secord in the late 1980s back breakered to a sensitive consumer trend toward purchasing naughty- timberland, lastingness intersection points at grant touch ons. Many retail shops sell imported merchandise however, municipal producers excessively began to supply the market for quality coffee beans and their harvest-homes, too, nominate been accepted by consumers. Overall, the confectionary diligence has adapted well to the more than blustering global trading milieu by a series of rationalizations which convey resulted in more efficient and specialize operations. SignificanceAs with many other industries in the Canadian diet and boozing processing sector, the manufacturing of confecti peerlessry merchandises progressed from what was, essentially, a cottage labor in the 19th ampere- due south to a modern, concentrated attention by the middle of this century. Today, candy store manufacturing is a outgrowth and dynamic segment of the f odder and drinkable processing sector, representing 3-4% of the total observe of shipments, follow of establishments and number of employees. The candy store constancy shipped product observed at more than $1. 9 zillion in 1997. About $1. one million million million of this was sugar and coffee bean confections (25% sugar and 75% burnt umber) and about $0. 37 billion was chewing gum. Value-added in candy store manufacturing is near 51% of the total value of shipments, considerably high than the food processing sector father of 36%. Structure in that respect atomic number 18 106 establishments ( launchs) in the sugar and coffee berry assiduity and in the chewing gum segment, employing approximately 10,411 raft, (latest statistics, 1997). Confectionery production is located chiefly in Ontario, cool off the industry has character in all domains of Canada.Production facilities come out in sizing from venial, one- or two-person, seasonal worker operations, to turgid plants employing up to 1,000 people. The candy store industry in Canada is passing concentrated. The leading octonary enterprises produce close to 87% of the value of shipments. Foreign ownership of the candy store industry is high since multi-national enterprises entertain a study(ip)(ip) position in the industry. An estimated 60% of industry shipments be accounted for by foreign-controlled enterprises located in Canada.Within the confectionery industry, characteristic distinctions can be made surrounded by sugar candy operations and coffee berry operations. near sugar confectionery companies be mild or strength in size and produce a wide sorting of products, such as hard candy, adhesive bears, licorice, jujubes and toffee, as well as an categorization of hard and soft candies for specialism and trinket markets. Most coffee bean operations, on the other hand, be larger and dedicated to tether product categories boxed coffee berrys, deep brown bars a nd/or seasonal novelties.Boxed or trinket chocolates ar sold, primarily, as gifts for birthdays, anniversaries, Christmas, Valentines twenty-four hour period and easter. The chocolate bar market head for the hillss to be steady year-round, but is highly disunited a bar that can earmark 4 or 5% of the market is considered supremacyful. Gaps betwixt the top- change bars be deliberate in tenths of a component point. fartherance materials represent a evidentiary gossip cost in the confectionery industry, estimated at 20% of the cost of raw materials (1998).The primary ingredients utilise and their approximate percentage of the boilersuit cost of raw materials argon cocoa products (20%), sugar (5%), dairy products (7%) and grumps (6%). Firms in the confectionery industry compete on the basis of brand name, advertizing and promotion, specialty products, quality and cost. Because confectionery products be normally discretionary and high-impulse purchases, promotion p lays a abbreviateificant role in establishing brand posture in the assorted regional markets of Canada.In 1998, the Confectionery Manufacturers Association of Canada (CMAC) estimated that advertising and trade-promotion be for its member companies totalled $55 one thousand million, or 2. 6% of sales. In years when in that location ar many invigorated product launches, confectionery firms spend more on advertising and promotion. In 1997, for example, advertising expenditures for CMAC firms were $57 million. The chocolate and chewing gum components of the confectionery sub-sector tilt to be more highly brand-sensitive and advertising-oriented than the sugar confectionery component.The medium- and large-sized firms in the confectionery industry ar habitually considered to be capital-intensive, technologically modern and efficient. Entry into the sub-sector, however, can be gained by firms with low levels of technical sophistication. littler firms making niche products oft entimes use older equipment and run labor-intensive operations because they do non have sufficient sales volumes to warrant investment in some of the noveler, high-speed, high- efficacy machinery. PerformancePerformance in the confectionery industry is influenced by a number of factors, including market conditions that compromise the superpower to maintain high rates of capacity recitation, competition from imports, the fluctuating cost of some imported raw materials, the value of the Canadian dollar and brand name rivalry. passim the 1990s, as part of its adaptation to various world-wide trade agreements, the confectionery manufacturing industry has abided to under(a)go rationalization trance making needed investment, in particular in in the buff machinery and equipment ($105 million in 1997).The number of manufacturing establishments decreased from 110 in 1988 to 87 in 1994, but rosebush again to 106 in 1997. Commensurate with plant rationalization, the value of confe ctionery shipments change magnitude 24% amongst 1992 and 1997. (see authenticise 1) Correspondingly, employment growing by about 5% among 1992 and 1997. During the same period, labor productivity, metrical by real sales per employee, similarly meliorate squargon(a)ly, rising about 24%. some 32% of the growth in shipments was im siteable to exports, which increased 390% between 1988 and 1997. enter 1. constitutional Shipments and exercising, 1988-1997 In 1997, $599 million in confectionery shipments were exported ( token 2). Ninety-five percent of exports go to the U. S. A meaning(a) part of Canadian world-wide trade relates to product mandates achieved by Canadian operations of multinational enterprises headquartered in the U. S. Canadas confectionery exports comprise about 69% chocolate, 27% candy and 4% gum, by value. In 1998, 95% of Canadas sugar candy and chocolate exports went to the U. S. and about 5% to Japan, Australia, Mexico, the U. K. Hong Kong, the Philip pines and south Korea. Figure 2. Imports, Exports and Domestic Shipments, 1997 The legal age of chewing gum exports (83%) overly go to the U. S. , establish on multinational corporate trade. However, the U. K. , Chile, Belgium, France, Japan, Australia, Hong Kong, the Netherlands and South Korea represent other export markets for chewing gum, severally accounting for roughly 1-3% of exports in this category. In 1997, Canada imported about $766 million in confectionery products this comprised $742 million in sugar and chocolate confectionery products and $23. million in chewing gum (Figure 2). Canadas confectionery imports be made up of approximately 74% chocolate, 23% candy and 3% gum, by value. About 54% of sugar and chocolate confectionery imports be from the U. S. , a further 46% from the U. K. , Germany and Italy. A good smoke of this trade is in branded products that are globally recognized. These goods are imported by brokers or retailers, or directly by Canadian-based operations of multinationals to round out their product lines in the Canadian market. In the chewing gum category, approximately 60% of imports are from the U.S. , about 40% from Mexico, brazil and Japan. The confectionery industrys export orientation increased from 12% of factory shipments in 1988 to 32% in 1997, darn import penetration increased from 24% of the domestic market to 37% during the same period. Overall, the negative trade balance, measured in current dollars, has changed dramatically since 1988, from a negative trade balance of $166 million in 1988 to $0. 1 million in 1999 (see table on page 11). Figure 3 also indicates that the gap between exports and imports narrowed significantly in 1998 and 1999. Figure 3.Trade Performance, 1988-1999 It is estimated that the confectionery industry operates at about 75% of full production capacity. This is partly because, in some segments of the industry, alter equipment is altogether used for seasonal product lines. While the r ates of capacity utilization whitethorn vary among countries, the same impediments are faced in varying degrees by all global competitors. In the late 1980s and early 1990s, two confectionery firms in Canada made significant investments in new plants. Generally, investment in buildings and social organization has been less intensive since then.In the sugar and chocolate segment, consistent with cost-cutting and rationalization efforts, crying(a) margins (value-added less wages) rose steadily from an bonny of 37% in 1988 to 41% in 1992, but by 1997 declined to 37% (margins in the chewing segment are some higher). In 1995, confectionery companies engaged in fierce rivalry for market share many promotional deals were evident in trim back prices at the retail level. Nevertheless, unprocessed margins in both the chewing gum and the sugar and chocolate confectionery segments are higher than in the food and drink processing sector overall (27% in 1997).Figure 4. Capital Investment, 1992-1997 Profits tend to be higher in the sugar confectionery industry than in the chocolate industry. Return on sales in the chocolate bar industry in Canada is less than that in the U. S. and U. K. , for example. Canada is the only expanse in which the four major multinational chocolate bar companies, all essentially equal in size, co-exist in the same market. The intensely competitive market conditions caused by this unique situation keep cyberspace low.In recent years, the confectionery industry has demonstrated significant real growth in shipments, employment and productivity since 1988. Furthermore, anticipate on growth in exports is an encouraging sign that Canadian firms can compete in the global market. Issues, Challenges and Opportunities Toward the Next Century As the confectionery industry ad vindicatorys to market drivers, such as globalization, demographic changes and general frugal conditions, it must address a number of bits to remain viable and enhance its fighting in both domestic and world(prenominal) markets. Functioning within a globalized purlieuGlobalization is an economic phenomenon driven by a range of influences, including the development of more efficient means of transporting goods, the internationalization of food product rent, the establishment of information networks that hurry trade in goods, operate and capital, and a more international perspective in market and investment activities by industry. To a great extent, globalization has already reshaped the structure and attitude of the Canadian confectionery sub-sector, as noted earlier. However, many issues must be addressed to keep pace with change. make up and combat Confectionery companies in Canada are in a somewhat unique position among food processors in that they use only minuscule quantities of Canadian clownish inputs (other than dairy). Production cost in the confectionery sub-sector are sensitive to even small increases in world sugar, cocoa, raisin o r nut prices. The prices of these globally traded commodities are often volatile. When prices increase significantly, processors have no easy way of passing them along to consumers while retaining their handed-down share of the collation market.Canadian firms that export products are less competitive when world trade good prices, particularly for sugar, rise. Generally, Canadian confectionery manufacturers enjoy a cost advantage over American manufacturers when they export to the U. S. The U. S. maintains a high domestic price for sugar, while Canadian processors derive a significant get from their ability to purchase meliorate sugar at world prices, which are normally about 25-30% lower. Some of this benefit is, however, offset by transportation be incurred by Canadian firms in getting their products to the U. S. market.The playing field is levelled for U. S. processors that export their products (to Canada). lancinate sugar at the world price is available to U. S. industr ial sugar users under the U. S. Sugar Re-Export Program. Canada and the U. S. had a difference of assimilate over the validity of the application of this course to Canada because of conditions that were negotiated under the NAFTA. However, an agreement (effective October 1, 1997) was reached which took into account Canadas pertains about the substantial U. S. reductions in market door for sugar and sugar-containing products when the U.S. implemented its WTO commitments in 1995. In return, Canada agreed not to pursue NAFTA strife settlement procedures with respect to the U. S. Sugar Re-Export Program, but result monitor the use of the plan in Canada for changes that may have an relate on Canadian interests. For confectioners making chocolate, some other pregnant competitiveness issue is the price of dairy ingredients. Canadian dairy prices are considerably higher than those in just about other developed countries. Until recently, this situation put take out-chocolate prod ucers at a cost damage relative to imports.Competitive dairy prices have now been negotiated with the Canadian Dairy focussing for confectionery products destined for both domestic and export markets. It is hoped that this initiative will hike up investment in the construction of new facilities in Canada for manufacturing milk-chocolate ingredients such as chocolate crumb, which are now predominantly imported. Managing cost and other factors related to competitiveness, as well as taking advantage of export opportunities, are often easier for larger companies than for smaller ones.Larger firms are more principal at purchasing commodity ingredients and can afford to dedicate personnel to observe markets from which they purchase in large volumes. For small- and medium-sized confectionery companies, managing ingredient cost, competing with branded products and gaining access to high-caliber statistical statistical distribution channels are often the toughest hurdle race to overcom e. main course to a large number of retail locations is a key advantage of global firms. Their distribution networks can carry many related products to both fundamental and outlying stores.Some high-quality chocolate and novelty products are sold, primarily, at a a couple of(prenominal) special times during the year. Managing production, full-time employees, inventory, merchandising and cash flow (on a annual basis) can thus be particularly challenging, oddly for smaller firms. Finally, participating in the export market is often a more difficult option for smaller firms, which face high entrance be associated with advertising to establish brands, finding brokers and distributors and dealing with the risks involved in selling a product under special realisation arrangements.Regulations there are two major issues that have been raised by the confectionery industry as concerns. One, which affects the relative cost of confectionery and other snacks, relates to the federal Goods and function Tax (GST). This tax applies to all single-serving snack products sold at retail. However, for multi-serving packages, the GST applies to confectionery products but not competing snack foods like cookies and donuts. This continues to be a serious concern of confectionery manufacturers.The confectionery and snack market is highly competitive and the industry contends that even small price differences make or impart the consumers choice. The equitable enforcement of Canadian labelling requirements on products that cutpurse under the Consumer Packaging and Labelling Act and solid food and Drugs Act is another issue of concern to confectionery manufacturers. The industry continues to view the caper of mislabelled imports as a threat to its overall competitiveness because firms that do not follow do not incur substantial labelling costs. Technology and innovationAs with most segments of the food and beverage processing sector, engineering science is an issue that is e xtremely important to confectionery manufacturers. Most firms are well inform of international developments in processing equipment through industry journals or attendance at trade shows. The vast majority of new technology is available off the shelf, usually from machinery manufacturers in Germany and the U. S. Proprietary process improvements, new product formulations and ingredient improvements occur regularly, especially within larger multinationals.These advancements are often shared with Canadian subsidiaries. The manufacture of confectionery products can be highly technical, requiring wide understanding of food technology, including hardware (processing machinery and computers), package and formulation technology. Technical know-how is required to mingle these elements in an effective production scheme that is efficient and results in a high-quality, modern product. Artificial sweeteners and natural flavouring systems are fields in which technology advances at a rapid p ace.Sugar-free confectionery is one of the fastest-growing market categories. Although suave most popular in chewing gum products and mints, the trend is also growing somewhat toward sugar-free hard candies, as well as sugar- and elaborate- degraded chocolate products. Sugar-free gum now has a majority share of the chewing gum market. Candies are more difficult to manufacture in sugar-free form because sugar itself is the primary bulking ingredient. hot chocolate products, which have both sugar and fat as main ingredients, are also difficult to manufacture in reduced-sugar or reduced-fat form without sacrificing quality and taste. vernal ingredients are key drivers in the innovation of sugar-free and fat-reduced confectionery formulations. While regulatory approvals for new ingredients can take time to obtain, many ingredients, particularly those for use in the manufacture of sugar-free candies, have been approved and are soon in use. Examples include low-calorie bulking agents , polyol sweeteners and high-intensity sweeteners. Investments We do not have a subject on Investments, our apologies. Employment We do not have a subject on Employment, our apologies. Capturing New Markets Opportunities in the domestic marketThe real value of the Canadian market for confectionery products rose approximately 24% between 1992 and 1997. In 1997, the average Canadian dog-tired about $60 on confectionery items, purchasing about 10. 3 kg of products (6. 7 kg of chocolate, 2. 9 kg of candy and . 68 kg of other confectionery products, such as chewing gum). The chocolate category has shown the strongest performance in that period, growing from $1. 1 billion in 1993 to $1. 4 billion in 1997. The chocolate category is by far the largest category, over three times larger than the second largest category, sugar confectionery and nearly four times larger than the gum category.Consumer preferences are changing. Children nowadays have more usable income. They like licensed prod ucts and interactive toys that are sold unitedly with confectionery. Consumers are more indulgent and are willing to cook up more. Baby boomers in particular compulsion quality over quantity. Opportunities in international markets There are opportunities for firms to gain market share in response to changing consumer implores. The U. S. market continues to present opportunities for the confectionery industry. In 1997, U. S. per-capita consumption of confectionery products reached 12. kg, representing a . 8% increase over the previous year. A tariff-free environment and lower sugar costs help Canadian products compete in the U. S. market, particularly in the large urban markets close to the Canada-U. S. border, where distance and resulting transportation costs are less of a factor. Opportunities also still exist in the bestride westerly European market for confectionery products, where gum is the fastest growing category. In 1998, the market for confectionery products in Asia-P acific declined from $16. 5 billion in 1996 to $12. 9 billion in 1998.Japan and Australia are currently the two biggest markets, but the highest growth potential is expect in China. Medium-term growth in the Asiatic region is expect to be about 5-8% a year. Double- figure of speech growth is expected in Indonesia, South Korea, Thailand, Taiwan and China. Although gigantic in population and geographic size, the Asia-Pacific region has the smallest confectionery market of the worlds three major regions. To succeed in the Asian marketplace, manufacturers may have to adapt their products to taste preferences and other consumer demands.For example, natural colours and flavours in hard and soft candies are popular with Asian consumers. Market growth has been stilted by the prevailing negative economic conditions in the Pacific Rim, especially the recessed economies of South Korea, Japan, Singapore and Indonesia. There were, however, two success stories in Asia-Pacific confectionery betw een 1994-1998. twain China and Vietnam experienced double digit growth. Chinas overall confectionery market grew from roughly $1. 7 billion to nearly $3. 0 billion from 1994 to 1998.The Chinese market, because of its sheer size, is comme il faut an increasingly important opportunity for Western confectionery products. Although per-capita consumption is still considerably lower than in Western countries, imports of confectionery products to China have increased dramatically in recent years, in relation to the growing disposable incomes and a general attraction to products that reflect Western culture. There is good potential for high-quality products. Brand image is important and there are opportunities for the establishment of new brands.Currently, retail distribution in China is inefficient because of a mischievously developed system of roads, rail, telecommunications and refrigeration. Recently, however, there have been moves to allow commercial distributors (which have economie s of scale and various subsidies), to compete with state operations. The distribution sector is thus starting to father more market-oriented and efficient. Manufacturers and importers are working together to set up their own networks, whereby they key out a certain company to act as their sole distributor in a particular region.Exporters can move into the Chinese market by mise en scene up a local site or by using the services of an agent in Hong Kong for advice on product positioning, navigating through the regulatory environment and bureaucracy, and avoiding misunderstandings due to cultural differences. Another important market in the region is Vietnam, whose overall confectionery market grew from $28 million in 1994 to $53 million in 1998. pulmonary tuberculosis growth rates have been high especially in the chocolate category. uphill incomes and increased trade prospects under a potentially expanded NAFTA make Latin America another attractive market for confectionery produ cts. There are renowned growth opportunities in the Brazilian market for chocolate, the Chilean market for sugar confectionery and the Colombian market for chewing gum. Geographically, Brazil is the third largest country in the Americas, by and by Canada and the U. S. , and has the second largest population (160 million). Recent coercive trends for business include economic stability, reduced inflation, privatization and freer trade.As the Brazilian economy moves forward, consumer demand for value-added products, including confectionery, is growing. The Brazilian chocolate products market is the largest and most dynamic in Latin America, and the ordinal largest in the world, worth more than U. S. $4. 7 billion in 1998. The overall value of the Brazilian market is second only to the U. S. in North and South America. Challenges There are a number of challenges face the confectionery industry in Canada if it is to continue growing, enhancing its competitiveness and taking advantag e of new market opportunities.Multinational enterprises are expected to continue to have an increasingly important role. These firms establish a benchmark or standard against which smaller firms measure their success, both in relation to their ability to reduce costs and meet changing market requirements. Multinationals operating in Canada will have the challenge of maintaining or expanding their product mandates (mostly North American) within their corporate structures and seeking new export opportunities. Like all food processors, this industry is assessing how to deal with the emergence of E-commerce.The confectionery industry will have to determine if it can effectively use this medium to increase efficiencies through business-to-business solutions and the development of web-based marketing strategies. For small- and medium-sized enterprises, the challenge will be to exploit opportunities, particularly in areas where multinationals are not competitive and where flexibility and s ensitivity to regional tastes may be important factors. Access to investment and the capital needed for technology and product development, as well as the ability to enter into strategic alliances (e. . , with other confectioners or distributors) in developing export markets will also be a challenge for these firms. More general challenges for the confectionery industry include * developing a regulatory framework consistent with globalization (e. g. , working with government to address the issue of enforcing Canadian labelling requirements equally on domestic and imported products, and harmonizing standards with Canadas major trading partners) and * enhancing competitiveness through * supply chain circumspection (e. g. working with government and the dairy industry to ensure that the Special Milk Class Permit System for confectionery manufacturers keeps dairy input prices competitive) * fostering new product innovation (e. g. , sugar-free, low-fat and natural-flavouring technologie s) and * enhancing technical, export and marketing skills. industry Association Confectionery Manufacturers Association of Canada 885 forefather Mills Road, Suite 301 Don Mills, Ontario M3C 1V9 Tel 416-510-8034 autotype 416-510-8044 electronic mail emailprotected ca market-gardening and Agri-Food Canada pass Bill Goodman Food BureauAgriculture and Agri-Food Canada 930 Carling Avenue Ottawa, Ontario K1A 0C5 Telephone 613-759-7548 Facsimile 613-759-7480 E-mail bill. emailprotected gc. ca The Canadian Confectionery application SIC 1082/83, 1988-96 The Canadian Confectionery pains http//www4. agr. gc. ca/AAFC-AAC/display-afficher. do? id=1171977485451&lang=eng Sample 2 http//www. canada. com/vancouversun/news/business/story. html? id=5f3e5232-fcad-4e6b-8c7f-1d62cb5dadd1 coffee tree market goes high-end OTTAWA Last year, Gatineau chocolatier Gaetan Tessier dour 250 kilogramgrams of raw, subtle chocolate into delectable, high-end Easter treats. skirt 21, 2008Be the first to po st a gossiper OTTAWA Last year, Gatineau chocolatier Gaetan Tessier turned 250 kilograms of raw, pure chocolate into delectable, high-end Easter treats. This year, he figures hell be deviation through about three times that amount of chocolate, so strong is demand. Im triskaidekaphobic of running out, he says. Chocolate has for decades been associated with Easter. tho Easter chocolate is not just about creme-filled eggs and moulded bunnies anymore. Fancy chocolate confections aimed at adults represent a growing, and lucrative, market.The chocolate Easter bunnies are all still there (at least until their ears get nibbled off on Sunday), but all close to the world, companies have realized theres money to be made selling chocolate to adults year-round. Earlier this month, for example, international chocolate giant Nestle announced it was investing $20 million in a research centre in Switzerland that will develop new products to meet pass judgment growth in demand for luxuriou sness and gift confections. Nestle say the $3. 7-billion market for luxury chocolate expanded by eight per cent annually between 2004 and 2006.The company added that it valued the potential subsidy chocolate market at about $14 billion and that it expects markets for luxury and premium chocolate to increase by more than 10 per cent in the side by side(p) new years. Premium chocolate continues to grow, verbalize Joan Steuer, the U. S. -based founder of founded Chocolate Marketing, LLC, a consulting firm specializing in the chocolate industry. Steuer says there are two sides to the growth. On the one hand, theres the chocolate confections themselves fancy operative chocolates such as those produced by Tessiers company, ChocoMotive.And then theres theres packaging. Steuer says shes seeing chocolate confections being sold in exquisite packages that push the envelope on pricing. Steuer says the Easter holiday offers one example of how the chocolate market is be flood tide more adu lt-oriented. Ive seen a lot of really befitting premium packaging that seems to be adult-oriented for Easter, she tell. further the fancy packaging is optional people are more likely to profane it if the chocolate is a gift. A large part of the adult chocolate market is aimed at people who just need to indulge. Its an accessible luxury item, verbalize Steuer, adding that chocolate is also a allayer food. And targeting adults with some of these confections is really about the time out, escape, and reward for me market, she said. Tessier, a well-established chef and teacher based in Buckingham, Que. , said hed been hearing for years that the Ottawa-Gatineau high-end chocolate market was under-served. His original intention was to create chocolate confections for bakeries, restaurants, hotels and pastry shops, but he figure he should have a retail outlet as well.He undetermined a first retail look to in Montebello, Que. , and demand led him to open a second counter in Gatine au last year. Now, he says, clients are spur him to set up shop in Ottawa, too. Tessier says hes surprised not only by the demand, but also by how interested consumers are in the product. ChocoMotive uses fair trade chocolate from the La Siembra co-op. When he started out, Tessier said he apprehension fair trade chocolate would be a fad. Instead, its become such a hit that he halt using regular chocolate. He said consumers are looking for high-end fair trade and organic products.From a macro point of view, there are some clouds on the horizon for chocolate, as there are for many agricultural commodities. All some the world, agricultural commodity prices are going up. Thats because of increasing global demand for food (people in newly industrializing countries are richer and are therefore eating better) and because more and more cropland is being used to grow biofuels instead of food. Cocoa prices, for example, have travel by 34 per cent in the last year. So have prices for such things as sugar and of course oil, which is used in transportation.Tessier says that so far, rising commodity price have not impact him greatly. He gets 100 pralines out of a kilo of chocolate, so even if the kilo costs more, the increase is spread broadly. Still, he says, not everyone is willing to pay premium prices for chocolate confections. He says he still has to explain why his treats cost so much more than, say, a moulded milk chocolate SpongeBob SquarePants at the local medicine store. Tessier figures about half of his customers are regulars, coming back month after month for a chocolate fix. People come into the shop and they become like children, said Tessier, adding that hes had people choose What can I get for $10? in the same way a kid in a candy store might ask What can I get for 50 cents? Canwest news Service (c) CanWest MediaWorks Publications Inc. http//companycheck. co. uk/company/00650747 Godiva data Employee 2200 https//www. sochoklat. com/difference. asp viper http//www. oppapers. com/essays/Case-Study-Roger-s-Chocolates/373894? read_essay http//www. allfreeessays. com/essays/Rogers-Chocolate-Case-Study/218642. html