Canadian Confectionery Market

Within the confectionary exertion, the sacramental manduction manether portion (Standard Industrial Classification 1082) consists of establishments primarily engaged in the construct of grate mucilage and lavdy mumble preparations. The simoleons and java confectionary division (Standard Industrial Classification 1083) consists primarily of firms engaged in caramelizing, syrup kneading, extruding, compressing, st supranational ampereing or other(a)(a)wise manufacturing starch sinceres (jelly outhousedies of all told kinds) hard slit dissolvedy hot deep brown powder and choco belated confectionary and cooking coffee berry overlaps, unsweetened and sweetened. opening Prior to the mid eighties, the footdy store sub-sector had, primarily, focussed on serving the house servant securities effort. In 1988, little than 12% of shipments were exportationinged, whereas imports casted for to the highest degree 24% of the domestic intellectual nourishmentstuf f (see table). However, shifts in the structure and performance of the Canadian confecti onenessry industriousness occurred with the orbiculate integration of economies that began to intensify in the late 1980s.These changes, stimulated by spheric softwood liberalization, were formalized in the Canada-United States Free Trade Agreement (FTA), the northeastern American Free Trade Agreement (NAFTA), and multilateral negotiations that led to the institution of the new World Trade Organization (WTO). The initial impetus for change came in response to escalating competition from imports ( in particular European coffees and hard candies), much thanover the fabrication similarly became more than(prenominal) aw be of the potential for exploiting emerging export opportunities.At the same time, the domestic foodstuff was exhibiting limited growth. By 1997, exports acted nigh 32% of candy store shipments. Historically, more Canadian candy store compensaters stick out g o approximately scale dis wagess compargond with American and European firms. At the same time, Canadian exporters, including supplemental operations of multinational get intoprises with product mandates for the U. S. commercialize, scram enjoyed a relative production- appeal advantage in a give away ingredient, lucre.Canadian sugar refiners atomic repress 18 anomalous among those of other industrialized countries in that they purchase most of their dim sugar on the military personnel food grocery. Prices on the world market atomic number 18 ordinarily low and are reflected in lower prices for refined sugar in Canada. Other competitiveness factors relate to spheric differentiate-ownership rights and taste differences that necessitate superfluous formulations for the domestic market. These characteristics hurt helped separate the U. S. and Canadian markets to just about extent.The growth of retail gourmet candy shops, such(prenominal)(prenominal)(prenomin al) as Laura Secord in the late 1980s pointed to a new consumer trend toward buy high-quality, specialty products at agio prices. Many retail shops sell imported merchandise however, domestic producers also began to supply the market for quality chocolates and their products, too, set out been accepted by consumers. Overall, the confectionery industry has adapted sanitary to the more open world-wide craft environment by and through and through a series of rationalizations which incur resulted in more efficient and specialized operations. SignificanceAs with many other industries in the Canadian nutrition and beverage processing sector, the manufacturing of confectionery products progressed from what was, essentially, a bungalow industry in the 19th century to a modern, concentrated industry by the middle of this century. Today, confectionery manufacturing is a growing and dynamic incision of the food for thought and beverage processing sector, re bring ining 3-4% of the total value of shipments, amount of establishments and number of employees. The confectionery industry shipped product set at more than $1. 9 one thousand gazillion in 1997. About $1. billion of this was sugar and chocolate confections (25% sugar and 75% chocolate) and about $0. 37 billion was chewing mutter. Value-added in confectionery manufacturing is approximately 51% of the total value of shipments, considerably higher than the food processing sector modal(a)(a) of 36%. Structure in that respect are 106 establishments (plants) in the sugar and chocolate industry and in the chewing gum tree segment, employing approximately 10,411 people, (latest statistics, 1997). Confectionery production is located mainly in Ontario, exactly the industry has representation in all regions of Canada.Production facilities range in size from low-pitched, one- or two-person, seasonal operations, to oversized plants employing up to 1,000 people. The confectionery industry in Canada is hig hly concentrated. The leading eight enterprises produce close to 87% of the value of shipments. Foreign ownership of the confectionery industry is high since multi-national enterprises have a major position in the industry. An estimated 60% of industry shipments are accounted for by foreign-controlled enterprises located in Canada.Within the confectionery industry, characteristic distinctions can be made between sugar candy operations and chocolate operations. Most sugar confectionery companies are small or sensitive in size and produce a wide variety of products, such as hard candy, gummy bears, licorice, jujubes and t rack upee, as well as an classification of hard and soft candies for specialty and bauble markets. Most chocolate operations, on the other hand, are larger and dedicated to three product categories package chocolates, chocolate interdict and/or seasonal novelties.Boxed or glow chocolates are sold, primarily, as gifts for birthdays, anniversaries, Christmas, Val entines Day and Easter. The chocolate close off market tends to be steady year-round, save is highly fragmented a bar that can capture 4 or 5% of the market is considered successful. Gaps between the top-selling bars are careful in tenths of a divide point. Packaging materials represent a portentous input woo in the confectionery industry, estimated at 20% of the cost of raw materials (1998).The primary ingredients used and their approximate component of the overall cost of raw materials are cocoa products (20%), sugar (5%), dairy products (7%) and nuts (6%). Firms in the confectionery industry compete on the innovation of brand name, advertising and promotion, specialty products, quality and cost. Because confectionery products are usually discretionary and high-impulse purchases, promotion plays a significant role in establishing brand presence in the various regional markets of Canada.In 1998, the Confectionery Manufacturers connecter of Canada (CMAC) estimated that adv ertising and trade-promotion cost for its member companies totalled $55 trillion, or 2. 6% of gross sales. In years when at that place are many new product launches, confectionery firms spend more on advertising and promotion. In 1997, for example, advertising expenditures for CMAC firms were $57 million. The chocolate and chewing gum components of the confectionery sub-sector tend to be more highly brand-sensitive and advertising-oriented than the sugar confectionery component.The medium- and large-sized firms in the confectionery industry are generally considered to be capital- intensifier, technologically modern and efficient. Entry into the sub-sector, however, can be prepareed by firms with low levels of technical sophistication. Smaller firms qualification niche products a lot use older equipment and run labor-intensive operations because they do non have sufficient sales volumes to warrant investment in few of the newer, high-speed, high-capacity machinery. Performanc ePerformance in the confectionery industry is influenced by a number of factors, including market conditions that compromise the aptitude to maintain high rate of capacity utilization, competition from imports, the fluctuating cost of some imported raw materials, the value of the Canadian dollar and brand name rivalry. Throughout the 1990s, as part of its adaptation to various world-wide trade agreements, the confectionery manufacturing industry has unfoldd to undergo rationalization while making needful investment, particularly in new machinery and equipment ($105 million in 1997).The number of manufacturing establishments rock-bottom from 110 in 1988 to 87 in 1994, but rose again to 106 in 1997. Commensurate with plant rationalization, the value of confectionery shipments cast upd 24% between 1992 and 1997. (see Figure 1) Correspondingly, employment change magnitude by about 5% between 1992 and 1997. During the same period, labor productivity, measured by objective sale s per employee, also improved substantially, rising about 24%. Approximately 32% of the growth in shipments was attributable to exports, which increased 390% between 1988 and 1997.Figure 1. impart Shipments and Employment, 1988-1997 In 1997, $599 million in confectionery shipments were exported (Figure 2). Ninety-five percent of exports go to the U. S. A significant part of Canadian transnational trade relates to product mandates achieved by Canadian operations of multinational enterprises headquartered in the U. S. Canadas confectionery exports curb about 69% chocolate, 27% candy and 4% gum, by value. In 1998, 95% of Canadas sugar candy and chocolate exports went to the U. S. and about 5% to Japan, Australia, Mexico, the U. K. Hong Kong, the Philippines and confederation Korea. Figure 2. Imports, Exports and Domestic Shipments, 1997 The majority of chewing gum exports (83%) also go to the U. S. , based on multinational corporate trade. However, the U. K. , Chile, Belgium, Franc e, Japan, Australia, Hong Kong, the Netherlands and South Korea represent other export markets for chewing gum, each accounting for about 1-3% of exports in this phone line. In 1997, Canada imported about $766 million in confectionery products this comprised $742 million in sugar and chocolate confectionery products and $23. million in chewing gum (Figure 2). Canadas confectionery imports are made up of approximately 74% chocolate, 23% candy and 3% gum, by value. About 54% of sugar and chocolate confectionery imports are from the U. S. , a further 46% from the U. K. , Germany and Italy. A good deal of this trade is in branded products that are globally recognized. These goods are imported by brokers or retailers, or directly by Canadian-based operations of multinationals to round out their product lines in the Canadian market. In the chewing gum category, approximately 60% of imports are from the U.S. , about 40% from Mexico, brazil-nut tree and Japan. The confectionery industry s export orientation increased from 12% of factory shipments in 1988 to 32% in 1997, while import penetration increased from 24% of the domestic market to 37% during the same period. Overall, the negative trade remainder, measured in current dollars, has changed dramatically since 1988, from a negative trade balance of $166 million in 1988 to $0. 1 million in 1999 (see table on page 11). Figure 3 also indicates that the gap between exports and imports narrow significantly in 1998 and 1999. Figure 3.Trade Performance, 1988-1999 It is estimated that the confectionery industry operate at about 75% of full production capacity. This is partly because, in some segments of the industry, specialized equipment is whole used for seasonal product lines. While the order of capacity utilization may vary among countries, the same impediments are confront in varying degrees by all global competitors. In the late 1980s and early 1990s, two confectionery firms in Canada made significant investment s in new plants. Generally, investment in buildings and construction has been little intensive since then.In the sugar and chocolate segment, arranged with cost-cutting and rationalization efforts, gross margins (value-added less wages) rose steadily from an average of 37% in 1988 to 41% in 1992, but by 1997 declined to 37% (margins in the chewing segment are somewhat higher). In 1995, confectionery companies engaged in fierce rivalry for market allocate many promotional deals were evident in decrease prices at the retail level. Nevertheless, gross margins in both the chewing gum and the sugar and chocolate confectionery segments are higher than in the food and beverage processing sector overall (27% in 1997).Figure 4. jacket Investment, 1992-1997 Profits tend to be higher in the sugar confectionery industry than in the chocolate industry. Return on sales in the chocolate bar industry in Canada is less than that in the U. S. and U. K. , for example. Canada is the all country in which the four major multinational chocolate bar companies, all essentially equal in size, co-exist in the same market. The intensely competitive market conditions caused by this unique situation keep wampum low.In recent years, the confectionery industry has demonstrated significant real growth in shipments, employment and productivity since 1988. Furthermore, sustained growth in exports is an encouraging sign that Canadian firms can compete in the global market. Issues, Challenges and Opportunities Toward the Next Century As the confectionery industry adjusts to market drivers, such as globalization, demographic changes and general economical conditions, it must address a number of issues to remain viable and enhance its competitiveness in both domestic and international markets. Functioning inside a globalized environmentglobalization is an economic phenomenon driven by a range of influences, including the let onment of more efficient means of transporting goods, the inter nationalization of food product withdraw, the establishment of information networks that facilitate trade in goods, services and capital, and a more international perspective in marketing and investment activities by industry. To a great(p) extent, globalization has already reshaped the structure and attitude of the Canadian confectionery sub-sector, as noted earlier. However, many issues must be addressed to keep stride with change.Cost and competitiveness Confectionery companies in Canada are in a somewhat unique position among food processors in that they use just small quantities of Canadian agricultural inputs (other than dairy). Production cost in the confectionery sub-sector are sensitive to even small increases in world sugar, cocoa, raisin or nut prices. The prices of these globally traded commodities are much volatile. When prices increase significantly, processors have no easy way of passing them along to consumers while retaining their traditional share of the inse ct bite market.Canadian firms that export products are less competitive when world commodity prices, particularly for sugar, rise. Generally, Canadian confectionery manufacturers enjoy a cost advantage over American manufacturers when they export to the U. S. The U. S. maintains a high domestic price for sugar, while Canadian processors derive a significant gain from their ability to purchase refined sugar at world prices, which are normally about 25-30% lower. Some of this benefit is, however, offset by carry-over costs incurred by Canadian firms in getting their products to the U. S. market.The playing case is levelled for U. S. processors that export their products (to Canada). Refined sugar at the world price is functional to U. S. industrial sugar users under the U. S. Sugar Re-Export Program. Canada and the U. S. had a difference of get a line over the validity of the application of this computer program to Canada because of conditions that were negotiated under the NAFT A. However, an agreement (effective October 1, 1997) was reached which took into account Canadas concerns about the substantial U. S. reductions in market access for sugar and sugar-containing products when the U.S. enforced its WTO commitments in 1995. In return, Canada agreed not to pursue NAFTA dispute colonisation procedures with respect to the U. S. Sugar Re-Export Program, but entrust monitor the use of the program in Canada for changes that may have an impact on Canadian interests. For confectioners making chocolate, some other important competitiveness issue is the price of dairy ingredients. Canadian dairy prices are considerably higher than those in most other developed countries. Until recently, this situation put milk-chocolate producers at a cost loss relative to imports.Competitive dairy prices have now been negotiated with the Canadian dairy farm Commission for confectionery products destined for both domestic and export markets. It is hoped that this opening n ight will encourage investment in the construction of new facilities in Canada for manufacturing milk-chocolate ingredients such as chocolate crumb, which are now predominantly imported. Managing costs and other factors related to competitiveness, as well as pickings advantage of export opportunities, are often easier for larger companies than for littler ones.Larger firms are more adept at purchasing commodity ingredients and can hand to dedicate personnel to monitoring markets from which they purchase in large volumes. For small- and medium-sized confectionery companies, managing ingredient costs, competing with branded products and gaining access to high-caliber distribution channels are often the toughest hurdles to overcome. Access to a large number of retail locations is a key advantage of global firms. Their distribution networks can carry many related products to both central and outlying stores.Some high-quality chocolate and novelty products are sold, primarily, at a few special times during the year. Managing production, regular employees, inventory, marketing and cash flow (on a yearly basis) can then be particularly challenging, especially for smaller firms. Finally, participating in the export market is often a more difficult option for smaller firms, which face high entrance costs associated with advertising to establish brands, determination brokers and distributors and dealing with the risks involved in selling a product under special credit arrangements.Regulations There are two major issues that have been raised by the confectionery industry as concerns. One, which affects the relative cost of confectionery and other snacks, relates to the federal Goods and Services Tax (GST). This tax applies to all single-serving snack products sold at retail. However, for multi-serving packages, the GST applies to confectionery products but not competing snack foods akin cookies and donuts. This continues to be a serious concern of confectionery man ufacturers.The confectionery and snack market is highly competitive and the industry contends that even small price differences make or break the consumers choice. The equitable enforcement of Canadian labelling requirements on products that fall under the Consumer Packaging and Labelling Act and Food and Drugs Act is another issue of concern to confectionery manufacturers. The industry continues to view the problem of mislabelled imports as a threat to its overall competitiveness because firms that do not approve do not incur substantial labelling costs. Technology and innovationAs with most segments of the food and beverage processing sector, technology is an issue that is highly important to confectionery manufacturers. Most firms are well informed of international developments in processing equipment through industry journals or attendance at trade shows. The vast majority of new technology is available off the shelf, usually from machinery manufacturers in Germany and the U. S . Proprietary process improvements, new product formulations and ingredient improvements occur regularly, especially within larger multinationals.These advancements are often shared with Canadian subsidiaries. The manufacture of confectionery products can be highly technical, requiring gigantic understanding of food technology, including hardware (processing machinery and computers), software and formulation technology. Technical know-how is unavoidable to integrate these elements in an effective production system that is efficient and results in a high-quality, innovative product. Artificial sweeteners and inherent flavouring systems are field in which technology advances at a rapid pace.Sugar-free confectionery is one of the fastest-growing market categories. Although still most popular in chewing gum products and mints, the trend is also growing somewhat toward sugar-free hard candies, as well as sugar- and fat-reduced chocolate products. Sugar-free gum now has a majority sha re of the chewing gum market. Candies are more difficult to manufacture in sugar-free form because sugar itself is the primary bulking ingredient. Chocolate products, which have both sugar and fat as main ingredients, are also difficult to manufacture in reduced-sugar or reduced-fat form without sacrificing quality and taste. bran-new ingredients are key drivers in the innovation of sugar-free and fat-reduced confectionery formulations. While regulatory approvals for new ingredients can take time to obtain, many ingredients, particularly those for use in the manufacture of sugar-free candies, have been approved and are currently in use. Examples include low-calorie bulking agents, polyol sweeteners and high-intensity sweeteners. Investments We do not have a subject on Investments, our apologies. Employment We do not have a subject on Employment, our apologies. Capturing New Markets Opportunities in the domestic marketThe real value of the Canadian market for confectionery products r ose approximately 24% between 1992 and 1997. In 1997, the average Canadian spent about $60 on confectionery items, purchasing about 10. 3 kg of products (6. 7 kg of chocolate, 2. 9 kg of candy and . 68 kg of other confectionery products, such as chewing gum). The chocolate category has shown the immobileest performance in that period, growing from $1. 1 billion in 1993 to $1. 4 billion in 1997. The chocolate category is by far the largest category, over three times larger than the present moment largest category, sugar confectionery and nearly four times larger than the gum category.Consumer preferences are changing. Children nowadays have more disposable income. They like commissioned products and interactive toys that are sold together with confectionery. Consumers are more hedonic and are willing to pay more. Baby boomers in particular penury quality over quantity. Opportunities in international markets There are opportunities for firms to gain market share in response to ch anging consumer demands. The U. S. market continues to present opportunities for the confectionery industry. In 1997, U. S. per-capita usance of confectionery products reached 12. kg, representing a . 8% increase over the previous year. A tariff-free environment and lower sugar costs help Canadian products compete in the U. S. market, particularly in the large urban markets close to the Canada-U. S. border, where distance and resulting transportation costs are less of a factor. Opportunities also still exist in the mature western European market for confectionery products, where gum is the fastest growing category. In 1998, the market for confectionery products in Asia-Pacific declined from $16. 5 billion in 1996 to $12. 9 billion in 1998.Japan and Australia are currently the two biggest markets, but the highest growth potential is expect in chinaware. Medium-term growth in the Asian region is expected to be about 5-8% a year. Double-digit growth is expected in Indonesia, South K orea, Thailand, Taiwan and mainland china. Although massive in population and geographical size, the Asia-Pacific region has the smallest confectionery market of the worlds three major regions. To succeed in the Asian marketplace, manufacturers may have to adapt their products to taste preferences and other consumer demands.For example, natural colours and flavours in hard and soft candies are popular with Asian consumers. Market growth has been stilted by the prevailing negative economic conditions in the Pacific Rim, especially the recessed economies of South Korea, Japan, Singapore and Indonesia. There were, however, two success stories in Asia-Pacific confectionery between 1994-1998. Both China and Vietnam experienced double digit growth. Chinas overall confectionery market grew from roughly $1. 7 billion to nearly $3. 0 billion from 1994 to 1998.The Chinese market, because of its upright size, is becoming an increasingly important opportunity for westward confectionery prod ucts. Although per-capita consumption is still considerably lower than in Western countries, imports of confectionery products to China have increased dramatically in recent years, in congress to the growing disposable incomes and a general attraction to products that reflect Western culture. There is good potential for high-quality products. Brand image is important and there are opportunities for the establishment of new brands.Currently, retail distribution in China is inefficient because of a poorly developed system of roads, rail, telecommunications and refrigeration. Recently, however, there have been moves to allow commercial distributors (which have economies of scale and various subsidies), to compete with enjoin operations. The distribution sector is thus starting to become more market-oriented and efficient. Manufacturers and importers are working together to set up their own networks, whereby they appoint a certain company to act as their sole distributor in a particul ar region.Exporters can penetrate the Chinese market by setting up a local office or by using the services of an agent in Hong Kong for advice on product positioning, navigating through the regulatory environment and bureaucracy, and avoiding misunderstandings due to cultural differences. Another important market in the region is Vietnam, whose overall confectionery market grew from $28 million in 1994 to $53 million in 1998. Consumption growth rates have been high especially in the chocolate category.Rising incomes and increased trade prospects under a potentially spread out NAFTA make Latin America another attractive market for confectionery products. There are notable growth opportunities in the Brazilian market for chocolate, the Chilean market for sugar confectionery and the Colombian market for chewing gum. Geographically, Brazil is the terce largest country in the Americas, after Canada and the U. S. , and has the second largest population (160 million). Recent imperative trends for business include economic stability, reduced inflation, privatization and freer trade.As the Brazilian prudence moves forward, consumer demand for value-added products, including confectionery, is growing. The Brazilian chocolate products market is the largest and most dynamic in Latin America, and the sixth largest in the world, worth more than U. S. $4. 7 billion in 1998. The overall value of the Brazilian market is second only to the U. S. in North and South America. Challenges There are a number of challenges facing the confectionery industry in Canada if it is to continue growing, enhancing its competitiveness and taking advantage of new market opportunities.Multinational enterprises are expected to continue to have an increasingly important role. These firms establish a benchmark or standard against which smaller firms measure their success, both in relation to their ability to reduce costs and meet changing market requirements. Multinationals operating in Canada w ill have the challenge of maintaining or expanding their product mandates (mostly North American) within their corporate structures and seeking new export opportunities. Like all food processors, this industry is assessing how to deal with the emergence of E-commerce.The confectionery industry will have to determine if it can effectively use this medium to increase efficiencies through business-to-business solutions and the development of web-based marketing strategies. For small- and medium-sized enterprises, the challenge will be to exploit opportunities, particularly in areas where multinationals are not competitive and where flexibility and sensitivity to regional tastes may be important factors. Access to investment and the capital needed for technology and product development, as well as the ability to enter into strategic alliances (e. . , with other confectioners or distributors) in developing export markets will also be a challenge for these firms. More general challenges f or the confectionery industry include * developing a regulatory framework consistent with globalization (e. g. , working with government to address the issue of enforcing Canadian labelling requirements as on domestic and imported products, and harmonizing standards with Canadas major trading partners) and * enhancing competitiveness through * supply chain management (e. g. working with government and the dairy industry to ensure that the Special Milk Class Permit System for confectionery manufacturers keeps dairy input prices competitive) * fostering new product innovation (e. g. , sugar-free, low-fat and natural-flavouring technologies) and * enhancing technical, export and marketing skills. fabrication Association Confectionery Manufacturers Association of Canada 885 Don mill about Road, Suite 301 Don Mills, Ontario M3C 1V9 Tel 416-510-8034 Fax 416-510-8044 E-mail email&160protected ca floriculture and Agri-Food Canada Contact Bill Goodman Food BureauAgriculture and Agri-Food Canada 930 Carling Avenue Ottawa, Ontario K1A 0C5 hollo 613-759-7548 Facsimile 613-759-7480 E-mail bill. email&160protected gc. ca The Canadian Confectionery Industry SIC 1082/83, 1988-96 The Canadian Confectionery Industry http//www4. agr. gc. ca/AAFC-AAC/display-afficher. do? id=1171977485451&lang=eng Sample 2 http//www. canada. com/vancouversun/news/business/story. html? id=5f3e5232-fcad-4e6b-8c7f-1d62cb5dadd1 Chocolate market goes high-end OTTAWA Last year, Gatineau chocolatier Gaetan Tessier off 250 kilogramgrams of raw, pure chocolate into delectable, high-end Easter treats. promenade 21, 2008Be the first to post a comment OTTAWA Last year, Gatineau chocolatier Gaetan Tessier turned 250 kilograms of raw, pure chocolate into delectable, high-end Easter treats. This year, he figures hell be vent through about three times that amount of chocolate, so strong is demand. Im afraid of running out, he says. Chocolate has for decades been associated with Easter. and Easter cho colate is not just about creme-filled eggs and moulded bunnies anymore. hope chocolate confections aimed at adults represent a growing, and lucrative, market.The chocolate Easter bunnies are all still there (at least until their ears get nibbled off on Sunday), but all about the world, companies have realized theres money to be made selling chocolate to adults year-round. Earlier this month, for example, international chocolate giant Nestle announced it was investing $20 million in a research centre in Switzerland that will develop new products to meet anticipated growth in demand for lavishness and premium confections. Nestle state the $3. 7-billion market for luxury chocolate expanded by eight per cent annually between 2004 and 2006.The company added that it valued the potential premium chocolate market at about $14 billion and that it expects markets for luxury and premium chocolate to increase by more than 10 per cent in the next new years. Premium chocolate continues to gro w, verbalize Joan Steuer, the U. S. -based founder of founded Chocolate Marketing, LLC, a consulting firm specializing in the chocolate industry. Steuer says there are two sides to the growth. On the one hand, theres the chocolate confections themselves fancy artisan chocolates such as those produced by Tessiers company, ChocoMotive.And then theres theres packaging. Steuer says shes seeing chocolate confections being sold in exquisite packages that push the gasbag on pricing. Steuer says the Easter holiday offers one example of how the chocolate market is becoming more adult-oriented. Ive seen a lot of really corking premium packaging that seems to be adult-oriented for Easter, she said. But the fancy packaging is nonobligatory people are more likely to buy it if the chocolate is a gift. A large part of the adult chocolate market is aimed at people who just want to indulge. Its an accessible luxury item, said Steuer, adding that chocolate is also a comfort food. And targeting adults with some of these confections is really about the time out, escape, and reward for me market, she said. Tessier, a well-established chef and teacher based in Buckingham, Que. , said hed been hearing for years that the Ottawa-Gatineau high-end chocolate market was under-served. His sea captain intention was to create chocolate confections for bakeries, restaurants, hotels and pastry shops, but he pass judgment he should have a retail outlet as well.He opened a first retail counter in Montebello, Que. , and demand led him to open a second counter in Gatineau decease year. Now, he says, clients are urging him to set up shop in Ottawa, too. Tessier says hes surprised not only by the demand, but also by how interested consumers are in the product. ChocoMotive uses fair trade chocolate from the La Siembra co-op. When he started out, Tessier said he thought fair trade chocolate would be a fad. Instead, its become such a hit that he stopped using regular chocolate. He said consu mers are looking for high-end fair trade and organic products.From a macro point of view, there are some clouds on the horizon for chocolate, as there are for many agricultural commodities. All around the world, agricultural commodity prices are going up. Thats because of increasing global demand for food (people in newly industrializing countries are richer and are therefore eating better) and because more and more cropland is being used to grow biofuels instead of food. Cocoa prices, for example, have risen by 34 per cent in the last year. So have prices for such things as sugar and of course oil, which is used in transportation.Tessier says that so far, rising commodity price have not affected him greatly. He gets 100 pralines out of a kilo of chocolate, so even if the kilo costs more, the increase is spread broadly. Still, he says, not everyone is willing to pay premium prices for chocolate confections. He says he still has to explain why his treats cost so much more than, say , a moulded milk chocolate SpongeBob SquarePants at the local drug store. Tessier figures about half of his customers are regulars, coming back month after month for a chocolate fix. People come into the shop and they become like children, said Tessier, adding that hes had people ask What can I get for $10? in the same way a nestling in a candy store might ask What can I get for 50 cents? Canwest News Service (c) CanWest MediaWorks Publications Inc. http//companycheck. co. uk/company/00650747 Godiva entropy Employee 2200 https//www. sochoklat. com/difference. asp http//www. oppapers. com/essays/Case-Study-Roger-s-Chocolates/373894? read_essay http//www. allfreeessays. com/essays/Rogers-Chocolate-Case-Study/218642. html