Sugar Rush U.S. entrepreneurs satisfy the world's sweet tooth.

As new parts of the global market warm up, the U.S. candyindustry's profits get sweeter by the day. According to theNational Confectioners Association (NCA), however, only 5 percentof U.S. manufacturers (more than 90 percent of which are small andmidsized businesses) are selling internationally, which meansthere's still room for would-be Willie Wonkas in this $21billion industry.

"Everybody likes candy," says James Johnson, theNCA's director of international marketing services. "Nomatter what the culture is, there's a good feeling attached toit."

But who has the biggest sweet tooth? Per capita, the NCA reportsit's Switzerland, followed by Austria and Germany. Butdon't start dreaming in euros: Europe is up to its eyeballs inchocolate. With the Asian market still sour, Latin America isemerging as the next hot spot for U.S. confections. The NCA, infact, plans to conduct trade missions to Argentina, Brazil andChile this fall. "More and more people there havediscretionary income," Johnson says, "and they'relooking to purchase feel-good products."

These and many other countries view sweets as prestige products,opening the export door for small U.S. candy manufacturers.Philadelphia's Goldenberg Candy Co. and Adams & Brooks Inc.in Los Angeles are two such businesses. While neither make publictheir annual revenues, both say they've boosted sales by 5 to10 percent by exporting their sweets.

"Our export sales are growing, and they continue to offergreat opportunities," says David Goldenberg, 44, president ofthe family candy business that bears his last name. "It'snot the biggest part of what we do, but it'simportant."

Unfortunately, no secret formula exists for getting your candyproduct on foreign shelves. "Just because [your product] isAmerican doesn't mean people will stock it," warns TempeBrooks, export sales administrator for the 68-year-old Adams &Brooks. And when it comes to food products, there's no end tothe hurdles you have to clear. Among them:

• Labeling. Every country has its own requirements. Forexample, Canada requires all packages to have information in bothFrench and English. Brooks tackles this problem by creating her ownlabels on a PC.

• Weight measurements. Most of the world, of course, is onthe metric system, so Brooks uses metric weights on allinternational orders and labels.

• Pricing. While some U.S. manufacturers feel the strongdollar requires them to slash prices, Johnson says many smallcompanies find international success by marketing their candy as apremium product--and selling it at premium prices. "People arewilling to pay for quality," says Johnson.

Overcoming these obstacles may not be simple, but for companiesconfident their products have a shot in the international market,it's the first step to sweet success.

Christopher D. Lancette is a journalist in Atlanta who coversinternational topics for Hispanic Business and otherpublications.

Next Step

Visit these Web sites for more about exporting candy:

• The National Confectioners Association (http://www.candyusa.org)

• Candy Industry magazine (http://www.candyindustry.com)

• Foreign Agricultural Service (http://www.fas.usda.gov)

• International Chamber of Commerce (http://www.webnexus.com/users/icc/icchp.html)

Contact Source

Adams & Brooks, fax: (213) 746-7614, adambro@aol.com