Monday, August 22, 2005

for the love of candy

from the ferris wheel


Finished reading Candy Freak. It did make me pause. The reality is that it is really hard being a little guy out there in the candy world. Really though, it is tough being a little guy period.

In world of candy there are the big three: Hershey, Mars, and Nestle. They each own more than chocolate and candy brands, but let's stick to that for now. The big three pay to put their candy on store shelves where the average consumer will see it and buy it impulsively yet consistantly. Slotting fees typically run about 20k. If you are a little guy, you can't afford a slotting fee.

So the little guys get creative. They know they have a product people love and want, they will just have to sell it differently than the big three do -- think outside the box, so to speak. Many go to smaller regional grocery stores, which given that most of the little guys in candy are regional, this seems like a good match. These guys are usually willing to let them in without a slotting fee. The problem is that as the Wal-Marts and Super Targets start to move in, they squeeze these smaller stores out. And in doing that, it means the small candy folks get squeezed out too.

I recently a post in which the author asked his audience which they thought was the lesser of two evils: shopping at the nearest grocery store to him (a Wal-Mart) or driving 30-minutes across town to the Super Target and giving his money to the oil companies. While there are no easy answers, it does bring up some interesting questions.

Candy makers aren't they only companies being squeezed out by these megastores. Clothing boutiques, independent book stores, family run convenience stores -- all of these and more and being forced to call it quits because of the big guys. They simply can't compete. But what is a consumer to do?

The truth is if we are not careful we will find ourselves all shopping and buying the same exact stuff. Yet it is hard not to be lured by the prices and free parking and one-stop shopping the big guys afford us. Isn't it a smart consumer who researches and finds the bargain? Why pay more for exactly the same item? The reality is though that those pennies we are saving are going to cost us more in the long term. More even than our favorite candy bar.

I don't think it means giving up completely on the big guys. For some people this really is no longer an option as they would have to drive more than 30-minutes to find what they needed. But I do think all of us should step back and think before we shop. If you buy books, maybe buy from an independent book store some of the time. If fashion is your passion, go check out a boutique instead of The Gap or Banana Republic (you know they are the same company, right?). Also don't forget about the Internet. It is a great place to shop (plus you don't have to drive - the whole gas thing deserves a post of its own (later)).

currently reading :: Autobiograhpy of a Fat Bride

1 Comments:

Anonymous jen said...

oh i'd love to shop boutique, but when a shirt costs 22$ for a TSHIRT at a boutique, i'd like for good ole GWB to get the economy going so i can make enough to shop at the boutiques.

alot of your shoppers at walmarts and targets..are people who don't always make much money. more or less support families on minimum wage. this is where i start to get confused in the argument on these superstores. plus alot of people don't live in a city where there are independent groceries and little places everywhere. out in suburbia it's chain stores. so i am never sure how to look at any of that.

we have a small guy candy comany in NW Indiana here, Albanese and i know someone who is int he family and they were talking about having to make it in the candy world. it's fascinating. i should get that book.

12:06 PM, August 23, 2005  

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