SIC 2064 Candy And Other Confectionery Products

Contenidos

• NAICS CODE(S).
• INDUSTRY SNAPSHOT.
• BACKGROUND AND DEVELOPMENT.
• CURRENT CONDITIONS.
• INDUSTRY LEADERS.
• AMERICA AND THE WORLD.
• FURTHER READING.

SIC 2064

This category includes establishments primarily engaged in manufacturing candy, including chocolate candy, other confections, and related products, including chocolate-covered candy bars; breakfast bars; candy, except solid chocolate; chocolate bars made from purchased chocolate; chocolate candy, except solid chocolate; confectionery cake ornaments; fudge; granola bars; marshmallows; candy-covered nuts; candied, glazed, or crystallized fruits; and popcorn balls and candy-covered popcorn products. Establishments engaged primarily in manufacturing solid chocolate bars from cacao beans are classified under SIC 2066: Chocolate and Cocoa Products. Establishments manufacturing chewing gum are included under SIC 2067: Chewing Gum, while those primarily engaged in roasting and salting nuts are classified in SIC 2068: Salted and Roasted Nuts and Seeds. Establishments primarily engaged in manufacturing confectionery for direct sale on the premises to household consumers are classified in SIC 5441: Candy, Nut, and Confectionery Stores.

NAICS CODE(S)

311330

Confectionery Manufacturing from Purchased Chocolate

311340

Non-Chocolate Confectionery Manufacturing

INDUSTRY SNAPSHOT

Americans have an insatiable appetite for candy. The U.S. population as a whole consumes more than 7.7 billion pounds of candy each year. Only about half of that is chocolate, with gummy bears and a wide variety of other non-chocolate confections accounting for roughly 3.5 billion pounds.

In the first decade of the twenty-first century, analysts forecast a number of challenges to be faced by the industry's equipment and ingredient suppliers. These challenges include the shift in technical knowledge from the manufacturer to the supplier, increased new product development, new distribution channels, continued plant and company consolidation, and the introduction of so-called nutraceuticals into confectionery products. This also included the introduction, in the mid-2000s, of several state legislative measures designed to restrict sale of candy in schools. As of 2006, 16 states had such legislation pending while 232 related bills were presented by 44 states, mostly unsuccessfully. For example, California's new law, approved by Gov. Arnold Schwarzenegger, effectively prohibits the sale of candy in schools, though both North Carolina and Louisiana only limit it.

According to the U.S. Census Bureau, approximately 1,608 establishments operated in this category for part or all of 2004. Industry-wide employment totaled approximately 56,574 workers receiving a payroll of more than $1.7 billion. Companies in this industry tended to be smaller in size, with nearly 73 percent employing less than 20 workers while only 5 percent have greater than 500 employees. The Annual Survey of Manufactures reported that the industry had total shipment values at nearly $17.2 million in 2005. Additionally, for the overall industry a total of 35,468 employees worked in production in 2005, putting in nearly 74 million hours to earn wages of more than $1.2 billion. The U.S. Department of Labor's Bureau of Labor Statistics showed slight losses in expected employment for the sugar and confectionary product manufacturing industry as a whole by 2014 after substantial losses were experienced from 1994 to 2004; a small increase is anticipated in output between 2004 to 2014.

Dun & Bradstreet reported in 2006 that the industry's estimated 1,423 establishments posted annual sales of about $3.55 billion with about 33,239 employees. Illinois led with more than $899 million in sales followed by New Jersey with nearly $361 million in sales and Pennsylvania in third with $337.5 million in sales. Comprised of 25 different specialties, the primary segment was candy and other confectionary products (nearly $2.6 billion in sales) with chocolate candy, except solid chocolate only posting sales of $308.5 million.

BACKGROUND AND DEVELOPMENT

Many of the most popular candy bars sold today were developed between the 1890s and 1920 by various candy makers around the country. Rights to many of these candies have been bought and sold many times since they were developed and now are owned by large corporations such as Mars, Hershey Foods, Warner-Lambert, and RJR Nabisco.

Milton S. Hershey manufactured the first chocolate bar in the United States in 1894. Hershey Kisses were introduced in 1907. The Bunte Brothers are credited with manufacturing the first chocolate-covered candy bars in 1911. During World War I, Hershey and other candy makers shipped...