SIC 5441
CANDY, NUT, AND CONFECTIONERY STORES

This category includes establishments primarily engaged in the retail sale of candy, nuts, popcorn, and other confections.

NAICS Code(s)

445292 (Confectionery and Nut Stores)

According to the U.S. Census Bureau there were 3,839 of these kinds of stores in 2000; by 2001 the total number of establishments remained unchanged. 997 of the stores in this classification employed fewer than five people. Another 432 employed between five and nine; 275 employed between ten and 19; 362 employed between 20 and 99; 136 had between 100 and 499; and 1,304 had more than 500. In 2003, the number of confectionery stores climbed to about 7,138, with sales of approximately $936.3 million. The total number of employees was 30,193. States with the highest number of stores were California, with 865, and New York with 801 stores.

The largest segment was the candy, nut, and confectionery stores, with 3,064 establishments. They employed 11,546 workers and accounted for more than 42 percent of the overall market. Candy stores numbered 2,835 and employed 13,193 workers. They accounted for more than 39 percent of the market.

In 1997, most of the businesses in this classification were small, generating sales between $100,000 to $249,000. That year, there were 2,860 such establishments, down slightly from the previous year, when 2,989 companies reported sales in this range. The next largest category was establishments reporting sales between $50,000 and $99,000. There were 2,300 stores in this range in 1997, up from the 2,200 stores with sales in this range in 1996. There were 940 with $250,000 to $499,000 in sales in 1997 while 863 reported sales of $1,000 to $49,000. In 1996, 1,103 companies reported sales of $250,000 to $499,000, while 909 reported sales

of $1,000 to $49,000. Finally, the smallest categories were at the high end of the industry. In 1996, 882 stores reported sales between $500,000 and $5 million; in 1997, 795 were listed. The smallest category, however, was consistently in the $5 million plus range: only 86 businesses reported sales in this range in 1997.

The leading specialty nut and coconut candy makers according to Market Share Reporter include Hershey Foods Corp., Brach's Confections, Pearson Candy Co., Philip Morris Co. Inc., Fine Products Co. Inc., Annabelle Candy Co. Inc., Russell Stover Candies, Ferrara Pan Candy Co. Inc., and Old Dominion Foods Inc.

Leading companies in this classification were Fannie May Candy Shops of Chicago, which reported sales of $120 million in 1997. Leaders in 2004 included Godiva Chocolatier, Inc. of New York; Alpine Confections Inc. of Utah; and Candy Express Franchising of Columbia, Maryland. Alpine Confections Inc. was in the process of acquiring some of Fannie May and Fanny Farmer brands from parent company, Archibald Candy Corp. Upon the completion of the acquisition, Alpine may reopen candy shops under the Fannie May, or Fanny Farmer name. According to a report issued by the Food Institute, Archibald planned on closing all its candy stores prior to the sale to Alpine.

Further Reading

D&B Sales & Marketing Solutions, 2003. Available from http://www.zapdata.com .

"Food Industry Merger Activity in 2003 On Par With Prior Year." Food Institute Report , 19 January 2004. Available from http://www.foodinstitute.com

Hoover's Company Profiles, April 2004. Available from http://www.hoovers.com .

Lazich, Robert S. Market Share Reporter, Detroit, MI: Gale Group, 2004.

U.S. Census Bureau. Statistics of U.S. Businesses 2001. Available from http://www.census.gov/epcd/susb/2001/US421420.HTM .