Economy's sour, but candy sales are oh so sweet

Economy's sour, but candy sales are oh so sweet
ShareThisBy M.S. Enkoji menkoji@sacbee.com
Saturday, Apr. 11, 2009

Dawn Waltz can always afford a little sweetness, even when times are sour.

"In the poorest times of my life, I could still buy bubble gum," she said.

Waltz, 39, was on her way Friday to join a throng inside See's Candies store in midtown loading up for Easter. She was buying chocolate for her children and her husband. "It's an indulgence you can always afford even if you can't go on a vacation," she said.

Candy is proving to be recession-proof, a sugarcoated blessing for candy makers and stores in an economic downturn. Relatively low cost with high psychic return is the key, say those who make and sell candy.

"Our sales were up over last year. In fact, the whole industry is up and Easter is looking very good," said Rob Swaigen, marketing director for Jelly Belly Candy Co. in Fairfield.

The company has turned the jelly-bean Easter staple into "a year-round chewy candy" with a legendary menu of flavors such as buttered popcorn.

Even though Jelly Belly's beans are premium-priced, it's a relatively small indulgence at $6.99 a bulk pound, Swaigen said.

"It's not a trip to Hawaii, but it puts a smile on your face," he said.

At the Sweet Factory in the Downtown Plaza, the giant bins of candy sparkle like bright, colored beacons.

Inside, Louise Gustafson said she doles out candy almost nonstop. "I"ve been busy, busy, busy," she said. "We've had a few good months since Christmas. People love their candy."

The family-run Kobasic's Candies in the Pocket area opened in 2003, but candy-making goes back generations in Jim Kobasic's family.

"We see people going for the less-expensive items, but thank God they keep coming in," he said. "Everything is handmade here so I'm always on the verge of running out."

Kobasic can fix you up with a pound of hand-dipped truffles for $20 or just a piece of candy for 25 cents.

That's the beauty of candy, said Suzanne O'Keefe, an associate professor of economics at California State University, Sacramento.

Consumers forced to rethink the $3 latte can still spare a few cents for a mouthful of chocolate, she said.

"It's relatively cheap and it makes you feel good. You usually think of the necessities as recession-proof. Well, this is kind of an exception to that."

Hershey's, the candy giant, produces the country's top-selling Easter candy, the Reese's Peanut Egg, said company spokeswoman Jody Cook. The holiday is second only to Halloween in candy sales for the company, she said.

Hershey's was founded on the premise of consumer affordability, Cook said. In the late 19th century, Milton Hershey experimented with milk, sugar and cocoa as a way to create an affordable treat. In 1900, he created the Hershey's Milk Chocolate Bar.

It sold for a nickel.