Dive Brief:
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Ferrero's Kinder Joy — a two-part confectionery product with cream and chocolate candy in one section and a toy in the other — could be the most lucrative launch for the candy segment in the past 10 years, according to Food Business News.
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Since Kinder Joy's U.S. debut in January, it has sold more than 46 million units, and projections have it on track to bring in more than $100 million during the first year. The product is currently sold in 170 countries, Ferrero said in a release, and it has been in the global marketplace for almost 50 years.
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Paul Chibe, CEO of Ferrero North America, called it a fun way for parents to surprise their children. "The delicious, unique taste of Kinder Joy and the wide variety of toys will delight kids, while mom and dad will be surprised by the high quality of the confection and toys — it's unlike anything currently on the US market," he said in the release.
Dive Insight:
Kinder Joy's success in the U.S. may be due to its unusual features. Ferrero is also emphasizing playtime fun between parents and children in marketing Kinder Joy and has developed a special app and online platform for interactive games, videos, stories and other activities.
These elements are likely to boost product sales through the first year, but whether Kinder Joy's growth will continue once the novelty factor wears off remains to be seen. Ferrero is obviously aware of that possibility and plans to make sure the product — and its newly launched Tic Tac Gum in four flavors — are well-established before moving on to the next innovation.
Ferrero North America CEO Paul Chibe told Food Business News that the company is taking a long-term approach with the product.
"The problem many companies have is they launch innovation, and then five minutes later they forget about that one and they move onto the next one ... ," he said. "Our focus is going to be on continuing to build out Kinder Joy, to make sure Kinder Joy is properly established with the right household penetration, the right trial, so that it’s a stable long-term player in the U.S. confectionery market."
Another recent successful candy debut was Hershey's Cookie Layer Crunch, a "snackfection" combination of cookie and candy that racked up more than $100 million in sales during its first year. The product launched in December 2016 and now features four different varieties. Ed Edson, Hershey's senior brand manager, told Food Dive last December that the product has become the company's biggest launch in more than 10 years.
The success of both Kinder Joy and Cookie Layer Crunch reflects the importance of anchoring products around powerful consumer trends — in this case, novelty/experience and snacking, respectively. U.S. confection manufacturers have been looking for growth pockets like this as consumers become increasingly health-focused and wary of high sugar levels in their foods. Still, classics like premium chocolate offerings continue to do well, and shopper demand for indulgent desserts remains, even if they're cutting down sugar in other ways.
Kinder Joy's success in the U.S. is not surprising since Ferrero is checking a number of boxes — taste, surprise, quality and fun — plus the manufacturer's suggested retail price of $1.59 each. That combination is pretty hard to beat. If this translates to continued growth, it's possible that other candy makers may try to tap into consumer demand for unique experiences by introducing toys and games into their product packaging. But consumers are already primed for this experience from Kinder, and the same strategy could fall flat with a product that doesn't share that same history of novelty.