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Trade Information Bulletin No. 328

Supplement to Commerce Reports

Price, 10 cents

INTRODUCTION

The total value of the exports of confectionery, chocolate, and chewing gum from the United States to the United Kingdom in 1923 amounted to $886,777, or nearly 25 per cent of the total value of the exports of these products in that year. The share of continental Europe in the exports of these products amounted to $142,361, that of Canada to $210,616, the Near East to $3,402, and Africa to $55,819.

This bulletin represents the results of a survey made by the consular officers of the Department of State and representatives of the Department of Commerce in the United Kingdom, continental Europe, Canada, the Near East, and Africa in order to ascertain means of developing markets for the confectionery products of the United States and to further develop existing markets. With the exception of continental Europe, these countries represent fields for the development of the confectionery export trade of the United States. The confectionery industry is already developed to a large extent in almost every country of Europe, and with ready access to raw materials it is very difficult for exporters from this country to put their products on European markets at prices which could compete with the domestic product.

Lists of importers and dealers in confectionery in the countries treated in this bulletin may be obtained from the bureau in Washington or through its district and cooperative offices.

JULIUS KLEIN, Director. APRIL, 1925.

FOREIGN MARKETS FOR CONFECTIONERY

III. EUROPE, CANADA, THE NEAR EAST, AND AFRICA

The following table shows the United States exports of confectionery, chocolate, and chewing gum to Europe, Canada, the Near East, and Africa in 1923 in comparison with the total amount of these products shipped in that year: EXPORTS OF CONFECTIONERY, CHOCOLATE, AND Chewing Gum TO EUROPE, CANADA,

THE NEAR EAST, AND AFRICA IN 1923

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34, 203 13, 193

6, 058 207, 459 347, 975 1, 824

127 1, 680

England.
Scotland
Ireland
Canada..
Austria
Azores and Madeira Islands
Belgium
Bulgaria
Czechoslovakia.
Denmark
France..
Germany.
Greece.
Italy
Latvia
Netherlands.
Norway.
Spain.
Sweden
Switzerland
Turkey in Europe..
Arabia
Palestine and Syria..
Belgian Kongo
British West Africa.
British South Africa.
Egypt....
Algeria and Tunis
Other French Africa.
Liberia...
Portuguese East Africa
Other Portuguese Africa...

Total...
Total to all countries

THE UNITED KINGDOM

ENGLAND

Consul General Horace Lee Washington, Liverpool; Consul Edmund B. Montgomery and

Consul Robert B. Macatee, London ; Consul Frank C. Lee, Bradford : Consul Ralph C. Busser, Plymouth; Consul John H. Grout. Hull; Consul W. F. Doty, Stoke-on-Trent; Vice Consul Rice K. Evans, Sheffield : Consul John F. Jewell, Birmingham; Consul Ross E. Holaday, Manchester ; Consul Robertson Honey, Bristol

The British market is supplied to a large extent by confectionery from local sources, but there is also a considerable quantity of confectionery imported from the United States, Switzerland, France,

and the Netherlands through agents, wholesale importers without agency, or a combined distributing house. Practically all of the import confectionery trade is carried on in the markets of London, Manchester, and Liverpool, from which cities the candies are sold to dealers throughout England.

The item of confectionery of American manufacture finding the readiest sale on the British market is gumdrops. (It is even stated that English gumdrops are sold as American to promote their sales.) The United States is also the chief source of supply of imported hard candies, including sugar almonds. In 1922 the United States supplied 14,045 hundredweight (1 hundredweight equals 112 pounds) of the total 19,315 hundredweight of this kind of candy imported during that year. The remainder was supplied in considerable quantity by the Netherlands and France, and in lesser quantity by Switzerland, Austria, Hungary, and Canada.

The following prices per pound in equivalent United States currency are typical of the prices of candies catering to the average taste on the London market: Assorted chocolates, 43 cents; chocolates with hard centers, 81 cents; chocolate almonds, 60 cents; chocolate bonbons (per 1-pound box), 98 cents; bittersweet chocolates, 76 cents; brazil creams, 38 cents; caramels (1-pound box), 42 cents; coconut candy, 25 cents; gums, 42 cents; fruit tablets, 33 to 43 cents; marshmallows, 60 cents; peppermint creams, 43 to 51 cents.

C. i. f. quotations are preferred, although experienced_shippers do not object to f. o. b. prices eastern ports. The terms of European exporters are 60 days' acceptance, and these terms are preferred in many cases to those of exporters from the United States who require cash against documents.

The duty on imported confectionery is levied in proportion to the sugar and cocoa content of the product, and ranges from 5s. 7d. to 1ls. 8d. per hundredweight for sugar and 14s. per hundredweight for cocoa.

The most popular flavor for candies in England is peppermint, while cinnamon and maple flavors are unpopular.

Two chief matters to be considered in exporting to England from the United States are the popularizing of products through adver tising and meeting competitive prices. Where there are such a number of brands on the market, the success of any particular kind must depend on the cleverness of the manufacturer in the creation of demand through the advertising of some special quality. English persons are particularly interested in the purity of foodstuffs and in standard pure-food laws, and this side of candy manufacture will be of interest to stress in advertising. The best method of advertising is through trade journals, newspapers, and popular periodicals. An effective campaign of advertising can not be done through correspondence. It is desirable that this work be done by an efficient agent or branch house in one of the large importing centers, such as London, Manchester, or Liverpool.

Although most of the import business is done in the large cities referred to, British provincial markets are not blind to competition, and any usable product offered for sale at a price which can compete with local prices would at least be favorably considered by dealers.

Individual glass or tin containers are best adapted for the packing of hard candies; for chocolates and fancy candies it is better to ship in bulk to withstand sea transportation and to have the candy repacked in fancy boxes to suit the markets after arrival.

Sales of chewing gum from the United States are increasing in Great Britain. The sales are small in January, but increase during the year up to the latter part of October and early November, when they fall perceptibly at the approach of the Christmas season. The United States product meets with no competition from other coun tries, and although there are about six manufacturers of chewing gum in England, their products offer' no serious obstacle. Chewing gum from the United States sells at retail at 6 cents per packet of six bars, while the domestic product sells at 2 cents per packet of five bars, but the difference in price is easily offset by the superior quality of the United States product.

There is practically no direct importation from the manufacturer in the l'nited States by the jobbers in England. The branch houses in England import from the large concerns in this country and sell to jobbers who in turn sell to the tobacconists, confectioners, billiard saloons, golf clubs, and the other distributors of this confection. Advertising is necessary to the sale of chewing gum as the demand is not yet well established, but the aim is educational rather than to give prominence to any one brand.

WALES

Vice Consul Paul F. Darcy, Swansea

There is no reason why good sales of specialties and cheaper grades of candies could not be made on the Welsh market if an exporter from the United States is prepared to advertise his product. At present only peppermints and hard gums from the United States are sold in Wales, but a market for iced confections might be created in the large cities and nut chocolate bars and popcorn confections are growing in popularity. Daily newspapers appear to be the best advertising medium at this time, and an advertising campaign could be arranged by local agents. There is no market in Wales for chocolates and the more expensive candies from the United States.

SCOTLAND

Consul Wilbert L. Bonney, Edinburgh; Vice Consul Bernard F. Hale, Dundee The sale of confectionery from the United States in Scotland is limited almost entirely to marshmallows, coconut, and mint candies. Importers state that local manufacturers can not equal the American products of these classes. Chewing gum has a fairly effective sale. The dealers in the smaller cities and provincial districts obtain their share of imported confections from the United States through the wholesale importing houses in the distributing centers of England and through Edinburgh and Glasgow, and practically the same conditions exist on the markets of Scotland as in England. One very large firm in Edinburgh imports the bulk of the confectionery from the United States and has 18 agencies throughout Scotland.

It is possible that with an earnest sales campaign through one of these large distributing cities other brands of American candies not known on the markets of Scotland might develop a sale.

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