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Sweet Stimulus
by Elaine Walker
On 4/11/2009
Consumers have cut back on jewelry and designer handbag splurges, but chocolate is one indulgence that still has a place in the budget.
This Easter and Passover week, chocolate stores like Schakolad Chocolate Factory in Davie say business is brisk. The holidays just wouldn`t be the same without a chocolate Easter egg or chocolate-covered matzoh.
``Chocolate is one of those things that helps you get over the bad economy,`` said Adriana Schaked, co-owner of Schakolad, whose business is up over last year. ``It`s comfort food. It`s an antioxidant. Everyone needs to have some sweet stuff in order to feel better.``
Schaked and her daughter Dafne Reich were working overtime this week to fill orders for their hand-crafted chocolate platters, chocolate seder plates and chocolate bunnies.
Customers like Donna Yaari, who was picking up a platter of chocolate truffles and another of chocolate frogs for a Passover seder, say they`re not willing to give up their chocolate fix.
`AN INDULGENCE`
``Chocolate is an indulgence, but one we have to give in to every now and then,`` said Yaari of Plantation, a self-proclaimed chocoholic.
Nationally, chocolate sales for 2009 are expected to hit $17 billion, a 2 percent jump over last year. The National Confectioners Association predicts Easter candy sales will reach $2 billion this year, up from $1.846 billion in 2008.
Business is strong at the big candy makers like Hershey, Nestle and Cadbury, all of which saw double-digit jumps in profits for 2008.
``We rarely have huge spikes or declines regardless of what`s going on with the economy,`` said Susan Fussell, spokeswoman for the National Confectioners Association. ``Candy is such a part of our lives in so many ways. There are traditions and customers in the United States that revolve around candy.``
Jan Lendi, owner of Jan`s Homemade Candies in Lauderdale-by-the-Sea, had a customer come in this week whose husband had been laid off -- but she still wanted an Easter bunny for him and her kids. Lendi gave her a discount. But demand for Easter candy has been much better than Lendi expected and an improvement over Valentine`s and Christmas.
``It`s not Easter without the Easter bunny and chocolate eggs,`` said Lendi, who expects Easter sales to rebound to levels last seen in 2006. ``Easter is a happy time. Everything is new.``
At the Lindt store in Dolphin Mall, business is up double digits for the year, said store manager Ricky Fleites. Popular items this week included specials like three for $12 on Lindt gold bunnies.
``It`s a simple luxury,`` Fleites said.
There is precedent for the success of candy businesses during recessionary times. Even during the Great Depression, candy companies thrived, introducing a number of confections that remain popular today.
Snickers, Mars and Three Musketeers bars all have their roots in the early 1930s.
Though the chocolate business is holding up much better than other retail segments, it`s still not recession-proof.
``In general, it`s not going to do as bad as other categories,`` said Marcia Mogelonsky, senior research analyst with Mintel, a consumer market research firm. ``It`s recession resistant. It`s just not an affordable luxury as often as it used to be.``
Dianne Pence of Davie buys chocolate whenever she`s going to someone`s house for a holiday like Passover. That`s something she won`t give up because of the recession.
``I don`t cut back on thoughtfulness or manners,`` said Pence, who was buying chocolate-covered matzoh. ``Plus, who doesn`t like chocolate?``
There are signs that some consumers may be ``trading down`` on chocolate and turning from premium products to mass-market brands. Sales of mass-merchandise gourmet chocolates were up 25 percent in 2008, according to the National Confectioners Association.
That jump reflects the continued growth in business for brands like Ghirardelli and Lindt, which you can now find everywhere from Wal-Mart to Publix.
``We are the premium brand for self-consumption; people buy it to eat for themselves, not as a gift to impress others,`` said Fabrizio Parini, senior vice president of Ghirardelli, where 2009 sales are up single digits after years of growing at more than 25 percent a year.
``People are not going to give up quality for a recession. They`re just hunting for better prices.``
Independent and national chocolatiers are trying to meet that demand for affordable prices by offering consumers more options.
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