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Candy From Strangers Chapter Two

The document discusses the competitive landscape of the candy industry, focusing on major players like Mars and Hershey. It highlights the challenges of innovation in a market dominated by nostalgia and established products, as well as the secrecy surrounding operations within the industry. The narrative also touches on the historical evolution of candy brands and the impact of mergers and acquisitions on market dynamics.

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18 views8 pages

Candy From Strangers Chapter Two

The document discusses the competitive landscape of the candy industry, focusing on major players like Mars and Hershey. It highlights the challenges of innovation in a market dominated by nostalgia and established products, as well as the secrecy surrounding operations within the industry. The narrative also touches on the historical evolution of candy brands and the impact of mergers and acquisitions on market dynamics.

Uploaded by

graceieda
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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} tes ghing Mar ret for beating Heres the ser he Fe Tsay began "Hey Foods Cop may Mae 2, a ing ir heatesant choolate barbers KNOW” 6 see onto the publi, but the Defense Department doesn’ want them “Fegemaan never mentioned the pending dispute at the GAO- osm? Gh sve vex is moti, he hws war comin 0 8 Oe ered ose Hey deat Am on a re, How nu weed 8 Mas oe re produto he Fetg Te wt of Words > a ded monte ett econ ut ok edu AO ey alga were te oF not—HEIE J elng en ha en sis ved ng on neve tee Ma choca 9 ee Fe an geen Theta al is min we a eng ey who rods fora GAO ape ONO set» zinmerman id oy A big “Tewari ey ded the pte, aed he mi wou ty Bat ew a en Ye ke ve boa cut By eng itary secret Somethings Dat ec as pny by Pentagon standards—and twas for chocolat, for goad ske. Chocolat Sean ee ek you: Whatever happened to Wily Wonka?” a» The Enrtiors oF CvOcoUNTe Chapter Joo CANDY FROM STRANGERS Levin mi he Cosa ee vem rere oa Hk Te WORD ti magi Awe ins ‘childhood. To days of hide-and-seel a a splint enw eaoinnrbe ninth aro pn he ey Teel mg let ee dl ig an rat do. They son om tee aoe layground, gentle reminders of a time he a ae into a drugstore could make your mouth = 2c baht a candy ba rig bi anda filled bag with suckers to spare. A piee of candy was ore han jut te was an experience The sight of sour al and sa Son ant gudiop, and chncolate—mownenis of Ja oe) sa sme oferta ne cold ol sa at rc Sivieoning, cin ofa ova nd where es owed see and mantmaions hang om the ees ete Rol Tass, n, the ol compaoy a Aen oe ees Naf poony-seed ist aug the aoe sec Tose they ced can be pcs ony ia faunas sea re $1.29. Sean me fen penny cane red the andy couse, you could con Ser try andthe mnafcring cents f unre eee ee ompane mound he nton, Inside Teas evn ai un you could seinen ad gin whip up moun SS sce rely ade i a ease Ro Nes, gry and machinery seth ut ne longer and ng hiner chine he atc Ef gunna ante oll was sed ino be Seed pees “eer wou ofthe Hey tos: 0 hee ay 1950, spor dao ool ayer ted toe ees ofc Fane on omeyor bes ned with exciton ls! nie i theme Hey, whic fe pit cn the am ten you threw sony he want te BADE ms cate neha ada tos thonght aera 183 Het sae Ge yng th ener H ny and then the eter Tan ae ard the ening bn the SHE Noone knee why ei chen aes thsway Hey dt Lake pling bop ee hor mung hotdogs, was par of growing up the USA Sti, most often’ tries are a ger ope Ot ee T.oe tt Dros Admainration played i prt with Reh wt ons an ence fr fey Bet there wae more han th JFRESSE indy the so many ovis nthe non bas se ona sec ering ino bier bles Tee jn cad conver who dhe i watching chin Ebi dn of of ects. i place e180 gk ae ea nd shy wiih ogeter con 78 perce of Sark the eandy Lnglom, bar agin bac— chose Ines 3e_ Twe faves oF Cnocoure Tay’ candy ae ci’ fr hones he od ctf hel dys Man sts neo wry shout tn Pan peony sig reine nee eee Coe vues age ore rsaton au of Dow Chen Coa $6 Sate trol ene Nanay ahr 50 oc rm th ake perc 14 hn cy mat re ed pag cone May mao Ts Miky Woy andthe ice awh ake ema’ rent berate pot we ended me 19700 Cane coe ay Van hguraeat fomaon tnc e Cer tral Ineligence Agency, located just two miles 23 ‘el ny loeated ji om the compaay’s “Mio isthe presen of Mar” cars “Pam sory Ica’ give othe names of our seit," a reception ieeples. Clk? i And Mari not aloe. The privately hed company i square company i squarely inthe tein ofthe et ofthe indy, which remains dominated by fly. ‘owned fms, Many ofthese fms are into ther shir, fourth an filth {generations of ownership, unheard of ia today's busines world. They trac thei roots bck to single founder, typically an immigrant with family recipe and an afin for sweets ‘The story of how these fms developed and grew ix one of the most facinating in U.S, busines, Tes a ale of Emly dynaniesofeatepre neural genius, of manufacturing biance and of marketing mishaps. I ‘sal histor of America, a told through sweet roth. Pethaps this tory should have bees shared long ago. Bu inthe ‘andy busines, Virtalyallof the pate ems in the industry and even ‘ome of the publicly held ones, Keep their operations to themes, Badly sharing thei prodcte withthe pubic bt keeping everthing ee ander raps As rel cndy has become oe ofthe mio secrete fusries in the United State. Senge, realy, considering there's noth inghorfl ins Kr at ca ranch elec eco ing alone, " Neverthe si imposible to get PEZ Cand Ineo evel ay ‘hing 2 ll about the plastic gio that dy b ’ the patie gizmo that jects candy biks fom the Ineads of Popeye, Goofy and Miss Piggy The forty two-year-old private ‘ompany, based in Orange, Connectct, has become spar of Amer an por cular, bur wl eventing abut tae, not even ‘onns it. There is no spokesperson far the company, no printed ‘Canoy Fton Srianatts» 27 information abou ts produc and no iatevews with ts pesonnel ee renin Seow McWintic a Harvarrted MBA who aaah) come, Oy ngs wo the company ae sme Sere Ca TZ callers who in he absence of oration sae te formed ter own eto to share PEZ for ra ee wich has pbc waded sock ands eqred by bw wo an bmn wih harcolens and pote avo 2 2 eke ay pomible And the company which caren ranks ‘atu an nthe ©. markt sy oe Se ete publ hed doeute mean we hive wo elk or eee at ne do sad Rad Zimermas, who stepped Sra ae Oe cueman and CEO in. 1993. "Out competion i 1 ue ad tar ge then the vag The don ase © tare Bing south bons, 0 why shoud we” Haan ut, pene ouside the apt nds a eno omen song Henhey and May and other aan ee bogh te chose wes Dave Ben gig since th say eT Ret Mas Sr, vowed fo beat Heh) ais own cerns Cote and Dept hata ed bythe me sd Se ee eee onduy sly. The pes flows he claw ra gh Cake nnd Pep were layer inthe Word Sees To ne Pesan Gal ins Te Wal Se Jour sal el ne hm hits cn the Coke and Pp on cera cot word war wen onthe fing bate er wereeasung chocolate tur Joseph Vio, present of Herb Tenet gat bt huneroan “Wee hs bd 8 Coke en Cc ee wane ead. Tet thar wed ak about 8 tbe pany aeation” a ey ema campeiton beeen the candy tas, oth Meee Gath iensonay downplay the suggle Bcese they Maid not tna mls mags They Kee he Desert Ba eect ren an ot iy he emg ED ferbie alkng abou the GAO appeal ab oe rte ge” Zimmerman sid of the GAO pro owe reilly dink we need go int das commen Fenn in can or apes conrece in 1993 node oe of ee eetan Hees His, the company Kd an extemely iS LENE oar oe new $50ion procesing psa where Hog “EE + Tae Emenons oF Cuocoure vere bing mde. The pest ws sllowed 0 watch athe whit ‘oct sell heb nett ow the ands wee sul bg manfred, Whe pe secs a |the machinery to block the view. " * eam more abou gy, psd fora interview wih one of conde But Denis Elen was ote to speak Sout how Hy cme ecg ee on lo i Ad ‘ower el prove were closely monitored by «Heat officer who never left his side. ° nn ‘Uninatey worker the plnt—under condition of condition of anonym shure sine ft een He wns hep atic such se deta but eves he ete hat by saing te ‘tisked losing his job. Sees Te fc nt he people nervewed fr ths ook asked that ents be protected ow tnd ti oon on sc corporat pole ta rid them fom yeking to cues abowt tc ws Aches ord her eae fo ean secon oe ncas competition in the industry. = “tsa rel bate zone out hte” Hea maceting exe te. "No one wants oe Blamed fr shin cre wi she compet anc funda hing oa ese and eee nl Thaw da odes, bes ou Hersey mangenentased o cooperate wth the wring of wih the wing ofthis tok on limited bass ony OF al qusion were channeled Mog ame hin CHO Reha Zinman ier nan Was arable o swe the compas pet eee oso ‘Stepped in, but repeated requests to interview other Her 4 serpin re ther Hey manages en Henbey’ achivi, Pam Whitenack, whore ; ach whom jb i 0 thereon of Mon Her’ egacy and sha it outer os Sent Hersey Foods maspemen nt she ay confidences {alongs Whence & at employed by the cay company hr ‘employer, the M. S. Hershey Foundation, is owned by the trust that Soe ono no Hey Fn) Wha Hr ves exe nervosa having our ummasing though he activa oleton a colecion ver whch the compan ar no dice contol and cau Eine det comrot—abd cauone ber repay o be eel of Canoy Fron STuANGERS #23 a Janne Pe ct ‘with Whitenack, I watched her re Pireern sed pct, eh Sete ed cieeengemnasrel eens coon the vp mage ad in te St at Mars #0 oie Breythint cok waded onthe New York Sock Esc nt Scientia SP esque Esl Po oer mates ly 10 ae #8 fess in gedit ose fms’ dein | poem "rh gan econ wth Mars Foe ether one oft Her ha Henney shares, Bu outside ofthat, the com nerview with Hershey almost 3s bad ating #9 ia Coline Mayer, reporter for The Wasnt Crunch ak aowe Mars and ts ety a0 cormments im simply aot allowed to discs “Sheehan hint of apology in his voce. Seon” ag i a ao fr iy yas mh NCA and mane ta a et Sra te fet orate nce seo eead I don't Blame the inury for beng puoi one monaco ssid NCA spokesman Wilam “Stadia companies ae firmly in contol of the majority of Tams groping to sind ox Keep ‘Connell. To increase potty ba © Tne Envtaons oF CnocouaTe firms must do one of two thingy: incest thee market share oe become mote ecient than the competition, neither of which i easy, The industry averages about 150 new products each year yet only 2 ‘nana of those become popular enough o say onthe shelk Moreover, ‘most of the so-called new candies are merely variations on age-old themes “There's only so much you can do with chocolat, peanuts and caramel—if you get my dif," O'Connel ti. "Besides, Americas are so nostalgic about their andy bs, i's almost imponsble to gether to teysomething new” ‘Mars an Hershey~—the Candy Kings 25 theyre known tise can realy vest wo that. Take Mas's Bounty bi, for example In 1988, Hershey tumed che andy world upside down when i unexpected scquired the U.S. division of Peer Paul/Cadbury, maker of Mounds ‘Almond Joy and York Peppermint Pate. To compete with Hershey’s ‘ew muscle, Mars introduced the Bouny bar in 1989, a chocolat cov ‘red cocontc bar reminiscent of Mounds. But Bounty fled after just fo yeas, even though every bind taste text Mare conducted showed ‘consimers prefered i210 1 ove the competition ” “In the minds of Ameneant, coconst are mean jut ane things « “Mounds or Almond Jy," id Lisbeth Echeand of Confectioner maga ‘ine, "Mar jst couldn’ get past that nostalgia.” Troma Forrest Mar, Se, patriarch of he Mars amily empire, stole Iii forthe Bounty tari the early 1950s kom Peter Pal Canis © “He snuroduced his vesion ofthe bar ia the United Kingdom and Can- "sa where Pecce Paul did't operate. Bounty quickly became 4 major " brabd, and today, Canadians wil el you Bounty i thir favorite coco- bar They've never heard of Mounds ic wast that Forrest Mars, Se, was 4 rogue ora ties he ws jus, ficient Given the fie numberof avaible ingredients the Lin fed understanding of scence and manufituring and the elively Tange of consumer candy preferences, t made perce busines ‘oborrow hot selling prodt fom the competition, ser them cic for Shoe was actually coped fom Heath inthe ealy 4 Nocwepln candy maker, Fre Marabou AS. When the ‘Gaaoy iron Sramanis 25 gts to mance its Heath company tefsed to give Hershey theo pe for Shor, tas Honey tuned to Marabou and purchase the £5 Tring the product fille." ae fs jot one of hundreds of examples, Britains forte cart bathe Mats bari, in ft, ght sweeter veron ofthe Saaaaee ky Way, Amie’ Starburst Fruit Chews ae Brian's Opt Pare pe Ki Kat bar inthe United Sates came from the Kit Kat bar ee Belope The i goes on and on. General, he Key to cand sucess ieee ar has not been in confctng smpruoas new teats, uti Srning te product vo market before the competition ee Rn developed a rly new candy, making Minor in the process almost always dd it by accident. aa, for example, wae invented in 1890 by a New England oes hos wen making peanut fy inher Kishen, mistakenly eating sadn insead of team of tartar tothe sup bubling on c rin dhe Mies by a curios confectionet a ne ua co his buterctch recipe in an effort ro improve the Te tec nore mike added, the softer and creamier the burteracoth rane etl soddeniy he ha invented a whole news confection Taare long fr accidents like these to be copied by compet toot sad ough ways confetioner actin a somewhat more gene, cer uanner ype porchasing the fights to manure eck ey candies copying ir sil common 1's jut Kep quiet. seman eee now and agai,” sd O'Connell, x beeps 68 creeping nis face “OFcouse, ean" you who's been vee but Pve heard tories” Pe jor vy candy tends seem ro come and go all atthe same inne eid 1980s was gummi. In the 1990s, anything our rat Cepantion, of coure, that popular canes quickly wast a pe ha dows’ expan hw thirty fren company lin pa, guy fh nd gumany sakes ue beaame the hot eandy color virally 1g wth hundreds of companies itoducing bse Foods atthe 1992 mation candy tradeshow in Washington, D.C 72 ue amity Sheehan ofthe NCA. “Buty realy Think is ji colnedence. The tends ae jst obviows to everyone in the sine.” "ti Tlembey and eer candy compares sy they ant Be 100 tious Afra, bs aot aif dey can patent new candy be. They mast vee Mme fom ousiers—and om thir om emplones 1 Fe «The Envevons oF Cnocouart scheint ty em Shc aeateyeaieer acy ea cr aL Soma ake Senet a ace a Pesce eater tensed ere peied intl potential leaks.1* “ese Fee gl ne ant ene ee ee a shel ott ecto becca Dic ait eet Pao e eae fave to Know lt oe than tha” Like how the mks proceed ate Sig tied snl eee ‘real candy mysteries. And you can bet Hershey wi on power to keep them mysterious. canes ee Canoy tH0n SruANaces #27 Mas, woo, goes ogres lengths o kept manaictring press nee spay dens al of ove cany-maing machin ras eap i tvs hung wth own quo of ng a eS of our have et been alowed ine Mass we sty nd, ae tov who fave met sgn consent aaeeher tag they wl err Ste wa ty To ele onan fo pacar role tise onlin th en were ad ccrting them rough he lant {Sikes in pion Ons pooner one wo ied san and pole removed fom he remiss an fy companies rp ned ahowgh some wt re sens Nee hn al fem ae ry cone Tei producr opens Tey dot se cy pis Sra ra en cont age sunt of shel, Hke Mas TS Hen, Nor ae they neta efit. “hen ng kph compet ico ae omslge ree tn 0 specaltcan dw can ra ro of th beds inthe mie fe hea ses, Siang comeence re i Man wack dng redhead fom Otsoma plains her Teton fr Vall, «gooey marshmallow filed choco- fine cap made in Mersam, Kansas, by aman named scl Ses “Manin once spent an entice Soturday ering around Kans, ping a Quick ip afer Quikap in earch ofa many Bos f Vlo- ful she coud ind alr even bother to turnoff my truck. Tus hopped out, bout ‘what they had, and thew itn the back,” se sid ina fewer 0 the candy mar. "Shes gts ack of fn ml from Valo lovers around the country ‘One muatwrote of wing «box ofthe eff to propose to hs iin « akan told of breaking up fly aquabbls by offering Valomik a “one Ser kxows hi produc wl aver ive Hey o Mara. ‘eee money, but he's go is worshippers and sys tha salle nes Tutn the ce of ever greater competion fom the bg boys, andthe ‘ponating coms of doing busines, hat may no longer be enough. fan- “Fea of andy fers ikeSifer's have gone out of busines or been gob- {led up bythe competition necen years. And the wend shows 0 sin of abating save lost a etre generation of candy products nus the ast > decals” laments Ray Brock, an induszy itorian and sf described ‘ba. + Tw Enenons of Grocoustt candy tr gr. i ering ro atch hem anh so i Tt gives me the shivers.” * Ftc prec npc, aks pice of Amen cle with ic The When Scan fhe Ao Na Saar an Sie We be ony fo of yay lores tha ena met, nd eee ftow ser yee en Coto, ret of Tse Rel ines se tft hat Set company wal have pene og age hae nd fer Send compen Giroan Men Gordon ot omne the soy of enc Rall vung mocks viene moked hr kxp mito” Goon exp “We ase Tae to rein indepen, Hop er Cie, Se etre ligne oy i be sn toe “ota cay he Gordon ny he gone on 2 buying pe of she own sng Warmer Lanter’ cosa cel son ini, wich nce rd mse un in Sup Dey Ghaeron Chow! a Sop Ba. In 191, Toe med Ghus Coy Ameer gs lipp manic an ke of Se Chaco low Fo. “ce soto fed pce Toole among the let cn cont fen he nny potion he Goons ope il eye fn ‘rong ge competi at fu nce th ey Cowpens pend he word ha Tweet be e. “ety omen ee oe Tas s'il ured sv Oy ro aa een ek the congas pester, dee Tow inpretre ery of ings hoend ince’ Wal Stee ees Bane Tose frie bho taping the fe aks de ef alow Finn “The company tee een” Ho Shang an ashe ws'Tase Anthony, ney lend “They do net yd. toc on caren pring cone: Three se eek eed Un screed bt” Gordon ample. "ee bay making Tote Rl,” shen “he he ents cat dele ew he nent emmy Anny hold we tml ely al enon to ot tanner nee i” eth Ean ea ht heuer of consist, ‘Canby Fon STRANGERS» 28) fewer than 150 candy companies willbe operating by the year 2010, {Koen from 6000 firms atthe industry's pes ko 1945.8 The iis

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