Sep 23, 2009

Candy sales strong despite recessionBy Robert SelnaSFGate.com

In a broad recession-related shift, many Americans have lost their taste for fancy cars, clothes and vacations, but their appetite for candy, it seems, only has become more pronounced.

The California unemployment rate climbed to 12.2 percent in August and more home foreclosures loom on the horizon, but sweets are going like gangbusters in San Francisco and elsewhere, according to store owners, candymakers and food industry analysts.

“Candy is something you can treat yourself to for a very reasonable price,” said Susan Karl president of Annabelle’s candy company in Hayward, which, makes Abba-Zaba, Rocky Road, U-No and Big Hunk bars. “It makes people feel good and it’s a pretty cheap treat when you’re feeling crummy – it’s either that or a beer.”

Alcoholic beverages, ice cream and movies aren’t doing badly either, but candy and chocolate stand out as being recession-resistant.

The Hershey Co., which has made popular treats since the Depression and is America’s candy market leader, posted earnings in the second quarter that were 71 percent higher than a year ago, according to Marcia Mogelonsky, a senior analyst at Mintel International, a Chicago market research firm.

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