Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Somewhat sluggish growth since 2006
- Uneven segment performance hampering overall market
- Hershey dominant in market
- Rising prices drive store brands’ appeal…
- …and bring premium products within reach
- Consumers channel surf for chocolate confectionery
- Innovation important to category growth
- Marketing efforts need a refresh
- Chocolate enjoys near total household penetration
- Snacking trend helps market; better-for-you (BFY) trend remains opportunity
- Milk chocolate preferred by the majority of consumers
- Women attracted to chocolate for positive experiences, men focus on price
Insights and Opportunities
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- Blur the confectionery category lines
- Bring non-confectionery companies with sweet leanings into the act
- Make a definitive move with premium offerings
- Dressing up milk chocolate
- Focus on health
Inspire Insights
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- Trend 1: Hungry Planet
- Trend 2: Premiumization and Indulgence
Market Size and Forecast
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- Key points
- Product innovations and price increases result in steady growth
- Sales and forecast of chocolate confectionery
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- Figure 1: Total U.S. retail sales of chocolate confectionery, at current prices, 2006-16
- Figure 2: Total U.S. retail sales of chocolate confectionery, at inflation-adjusted prices, 2006-16
- Fan chart forecast
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- Figure 3: Fan chart forecast of chocolate confectionery, 2006-16
- Walmart sales
Market Drivers
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- Key points
- Candy consumption grows moderately between 2007 and 2011
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- Figure 4: Chocolate and other candy, July 2007-September 2011
- Snacking strong
- Obesity concerns impact attitude toward healthy eating
- Price increases, package size reductions challenge category
Competitive Context
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- Key points
- Private label gaining some momentum
- BFY snacks
- Non-chocolate confectionery
Segment Performance
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- Key points
- Bag/bar/box innovations keep the segment outperforming the rest
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- Figure 5: Total U.S. retail sales of chocolate confectionery, by segment, 2009-11
Segment Performance—Chocolate (Bag/Bar/Box)
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- Key points
- Larger-format bag/bar/box continues to dominate the category
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- Figure 6: Total U.S. retail sales of chocolate (bag/bar/box; 3.5-oz+), 2006-16
- Smaller-format bag/bar/box sales grew 35% in five years
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- Figure 7: Total U.S. retail sales of chocolate (bag/bar/box; less than 3.5-oz), 2006-16
Segment Performance—Seasonal Chocolate
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- Key points
- Seasonal chocolate well positioned for continued growth
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- Figure 8: Total U.S. retail sales and forecast of seasonal chocolate, at current prices, 2006-16
Segment Performance—Snack-size Chocolate
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- Key points
- Format expansion gives consumers other snack options
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- Figure 9: Total U.S. retail sales and forecast of snack-size chocolate, at current prices, 2006-16
Segment Performance—Gift Box Chocolate
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- Key points
- Gift box sales fell 10% over the past five years
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- Figure 10: Total U.S. retail sales and forecast of gift box chocolate, at current prices, 2006-16
Segment Performance—Sugar-free Chocolate
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- Key points
- Sugar-free segment struggles
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- Figure 11: Total U.S. retail sales and forecast of sugar-free chocolate, at current prices, 2006-16
Retail Channels
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- Key points
- Sales up in supermarkets, drug, and convenience
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- Figure 12: Total U.S. retail sales of chocolate confectionery, by channel, 2009 and 2011
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- Figure 13: Supermarket/food stores’ sales of chocolate confectionery, at current prices, 2006-11
- Other retailers’ sales of chocolate confectionery
Retail Channels—Natural Supermarkets
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- Key points
- With less market share, sales up in supermarkets, drug, and convenience
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- Figure 14: Natural supermarket sales of chocolate confectionery, at current prices, 2009-11*
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- Figure 15: Natural supermarket sales of chocolate confectionery, at inflation-adjusted prices, 2009-11*
- Brands of significance
- Organics and non-organics neck and neck
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- Figure 16: Natural supermarket sales of chocolate confectionery, by organic, 2009 and 2011*
- Fair trade offerings keeping up with market growth
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- Figure 17: Natural supermarket sales of chocolate confectionery, by fair trade, 2009 and 2011*
Leading Companies
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- Key points
- Hershey maintains top spot
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- Figure 18: Manufacturer FDMx sales of chocolate confectionery in the U.S., 2010 and 2011
Brand Share—Chocolate (Bag/Bar/Box)
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- Key points
- Consumers encouraged to share
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- Figure 19: Selected FDMx brand sales of chocolate (bag/bar/box; 3.5-oz+), 2010 and 2011
- Price increases have consumers looking for savings
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- Figure 20: Selected FDMx brand sales of chocolate (bag/bar/box; less than 3.5-oz), 2010 and 2011
Brand Share—Seasonal Chocolate
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- Key points
- Most segment leaders see strong growth from 2010-11
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- Figure 21: Selected FDMx brand sales of seasonal chocolate, 2010 and 2011
Brand Share—Snack-size Chocolate
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- Key points
- Mars makes gains on Hershey in snack-size segment
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- Figure 22: Selected FDMx brand sales of snack-size chocolate, 2010 and 2011
Brand Share—Gift Box Chocolate
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- Key points
- No big gains among gift box leaders
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- Figure 23: Selected FDMx brand sales of gift box chocolate, 2010 and 2011
Brand Share—Sugar-free Chocolate
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- Key points
- Russell Stover dominates sugar-free
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- Figure 24: Selected FDMx brand sales of sugar-free chocolate, 2010 and 2011
Innovations and Innovators
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- Key points
- New innovation bolstering sales growth in market
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- Figure 25: Chocolate confectionery product launches, by subcategory, 2008-12*
- Kosher and seasonal claims lead new releases in the category
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- Figure 26: Chocolate confectionery product launches, by top 10 claims, 2008-12*
- Hershey and Mars lead new product releases
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- Figure 27: Chocolate confectionery product launches, by leading companies, 2008-12*
- Store brands account for roughly 13% of new innovation annually
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- Figure 28: Chocolate confectionery product launches, by private-label share, 2008-12*
- Product innovations
- Seasonality
- Pieces
- Health
- Premium
- Dark chocolate
- Savory
- Regional
- Fair trade
Marketing Strategies
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- Overview
- Brand analysis: M&M’s
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- Figure 29: Brand analysis of M&M’s, 2012
- TV presence
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- Figure 30: M&M’s TV ad, “Wish Granted,” 2011
- Other initiatives
- Online initiatives
- Brand analysis: Dove Chocolate
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- Figure 31: Brand analysis of Dove Chocolate, 2012
- TV presence
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- Figure 32: Dove Chocolate TV ad, “Quiet Time,” 2011
- Other initiatives
- Brand analysis: The Hershey Company
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- Figure 33: Brand analysis of The Hershey Company, 2012
- TV presence
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- Figure 34: The Hershey Company TV ad, “Bubbles,” 2011
- Online initiatives
- Brand analysis: Lindt and Ghirardelli
- Lindt
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- Figure 35: Brand analysis of Lindt, 2012
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- Figure 36: Lindt TV ad, “Luxurious Chocolate,” 2011
- Ghirardelli Chocolate Company
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- Figure 37: Brand analysis of Ghirardelli Chocolate Company, 2012
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- Figure 38: Ghirardelli TV ad, “Savor the Moment,” 2011
- Brand analysis: Whitman’s Candies
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- Figure 39: Brand analysis of Whitman’s Candies, 2012
- TV presence
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- Figure 40: Whitman’s Candies TV ad, “Winning Play,” 2012
Household Usage
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- Key points
- Trended chocolate usage within the household, 2007-11
- Candy consumption is for adults
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- Figure 41: Brand usage—chocolate and other candy, July 2007-September 2011
- Kids eating less candy?
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- Figure 42: Bars and other candy, July 2007-September 2011
- After dipping slightly, teen candy consumption is at a four-year high
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- Figure 43: Chocolate and other candy, July 2007-September 2011
- Household and personal usage
- Increasing consumption frequency will be key for growth
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- Figure 44: Household usage, December 2011
- Women slightly more likely than men to eat chocolate
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- Figure 45: Household usage, by gender, December 2011
- Chocolate’s popularity spans adult age groups…
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- Figure 46: Household usage, by age, December 2011
- …as well as household income levels
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- Figure 47: Household usage, by household income, December 2011
Where Consumers Buy Chocolate
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- Key points
- Purchase locations varied, but mass and supermarkets dominate
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- Figure 48: Where consumers buy chocolate, by gender, December 2011
- Affordability and convenience are key among younger consumers
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- Figure 49: Where consumers buy chocolate, by age, December 2011
- Low-income households seek affordable outlets
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- Figure 50: Where consumers buy chocolate, by household income, December 2011
- Parents buy chocolate wherever they can
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- Figure 51: Where consumers buy chocolate, by presence of children in household, December 2011
Chocolate Buying Behavior
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- Key points
- Buying behavior
- Consumers look for value, but are not limited by price
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- Figure 52: Buying behavior, December 2011
- Youngest and oldest most likely to limit chocolate purchases
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- Figure 53: Buying behavior, by age, December 2011
- Lowest-income households most concerned with price
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- Figure 54: Buying behavior, by household income, December 2011
- Attitudes toward chocolate prices
- Clarifying price increases
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- Figure 55: Attitudes toward chocolate prices, by age, December 2011
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- Figure 56: Attitudes toward chocolate prices, by household income, December 2011
What Matters to Chocolate Consumers
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- Key points
- Young consumers want premium products at a low price
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- Figure 57: What matters to chocolate consumers, by age, December 2011
- Highest income earners less likely to be picky about chocolate claims
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- Figure 58: What matters to chocolate consumers, by household income, December 2011
- Why consumers buy premium chocolate
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- Figure 59: Why consumers buy premium chocolate, by gender, December 2011
Favorite Chocolate Types/Flavors
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- Key points
- Milk chocolate preferred by more than half of consumers
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- Figure 60: Favorite chocolate types/flavors, by gender, December 2011
- Dark chocolate a draw among over-45s
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- Figure 61: Favorite chocolate types/flavors, by age, December 2011
- Higher household income earners also drawn to dark chocolate
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- Figure 62: Favorite chocolate types/flavors, by household income, December 2011
Attitudes toward Chocolate
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- Key points
- Women indulge, men less discerning
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- Figure 63: Attitudes toward chocolate, by gender, December 2011
- 18-34s most engaged in chocolate experience
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- Figure 64: Attitudes toward chocolate, by age, December 2011
- Premium chocolate rewards most affluent
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- Figure 65: Attitudes toward chocolate, by household income, December 2011
Impact of Race and Hispanic Origin
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- Key points
- Black shoppers appear as convenience-oriented impulse consumers
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- Figure 66: Where consumers buy chocolate, by race/Hispanic origin, December 2011
- Black shoppers can be attracted by low price, Asians target for gifts
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- Figure 67: Buying behavior, by race/Hispanic origin, December 2011
- Reward messaging should resonate with Asian consumers
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- Figure 68: Attitudes toward chocolate, by race/Hispanic origin, December 2011
- Black consumers heavily drawn to milk chocolate
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- Figure 69: Favorite chocolate types/flavors, by race/Hispanic origin, December 2011
Custom Consumer Groups
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- Key points
- What matters
- Premiums not just looking for expensive, niche products
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- Figure 70: What matters to chocolate consumers, by premiums, December 2011
- Dark Chocolate Lovers drawn to premium qualities
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- Figure 71: What matters to chocolate consumers, by chocolate, December 2011
- Favorite types/flavors
- Non-premiums drawn to traditional flavors
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- Figure 72: Favorite chocolate types/flavors, by premiums, December 2011
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- Figure 73: Favorite chocolate types/flavors, by chocolate, December 2011
- Attitudes toward chocolate
- Premiums don’t view chocolate as empty calories
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- Figure 74: Attitudes toward chocolate, by premiums, December 2011
- Chocolate buying behavior
- Premiums good target for gift chocolate
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- Figure 75: Buying behavior, by premiums, December 2011
- Attitudes toward chocolate prices
- Premiums just as price-conscious as the rest
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- Figure 76: Attitudes toward chocolate prices, by premiums, December 2011
Appendix—SymphonyIRI/Builders—Key Household Purchase Measures
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- Overview of chocolate confectionery
- Easter chocolate confectionery
- Consumer insights on key purchase measures—Easter chocolate confectionery
- Brand map
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- Figure 77: Brand map, selected brands of Easter chocolate confectionery buying rate, by household penetration, 2011*
- Brand leader characteristics
- Key purchase measures
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- Figure 78: Key purchase measures for the top brands of Easter chocolate confectionery, by household penetration, 2011*
- Christmas chocolate confectionery
- Consumer insights on key purchase measures—Christmas chocolate confectionery
- Brand map
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- Figure 79: Brand map, selected brands of Christmas chocolate confectionery buying rate, by household penetration, 2011*
- Brand leader characteristics
- Key purchase measures
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- Figure 80: Key purchase measures for the top brands of Christmas chocolate confectionery, by household penetration, 2011*
- Valentine’s Day chocolate confectionery
- Consumer insights on key purchase measures—Valentine’s Day chocolate confectionery
- Brand map
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- Figure 81: Brand map, selected brands of Valentine’s Day chocolate confectionery buying rate, by household penetration, 2011*
- Brand leader characteristics
- Key purchase measures
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- Figure 82: Key purchase measures for the top brands of Valentine’s Day chocolate confectionery, by household penetration, 2011*
- Halloween chocolate confectionery
- Consumer insights on key purchase measures—Halloween chocolate confectionery
- Brand map
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- Figure 83: Brand map, selected brands of Halloween chocolate confectionery buying rate, by household penetration, 2011*
- Brand leader characteristics
- Key purchase measures
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- Figure 84: Key purchase measures for the top brands of Halloween chocolate confectionery, by household penetration, 2011*
Appendix—Other Useful Tables
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- Sales data
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- Figure 85: Total U.S. retail sales and forecast of novelty chocolate, at current prices, 2006-16
- Figure 86: Selected FDMx brand sales of novelty chocolate, 2010 and 2011
- Consumer data
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- Figure 87: Buying behavior, by gender, December 2011
- Figure 88: Why consumers buy premium chocolate, by age, December 2011
- Figure 89: Favorite chocolate types/flavors, by presence of children in household, December 2011
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- Figure 90: Where consumers buy chocolate, by region, December 2011
- Figure 91: Buying behavior, by chocolate, December 2011
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- Figure 92: Attitudes toward chocolate prices, by chocolate, December 2011
Appendix—Trade Associations
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