In Europe, Nick’s has established itself as a versatile better-for-you brand, offering a range of products from ice cream to candy bars and sweeteners. With its recent launch, the brand aims to expand its presence in the United States as well. Earlier this year, Nick’s U.S. CEO Carlos Altschul, while not explicitly confirming new product lines, indicated that upcoming offerings would stand out even in saturated categories. The new bar, reminiscent of a candy bar, introduces an innovative option within the indulgent segment. According to projections from the National Confectioners Association and Euromonitor, chocolate sales reached $21.9 billion last year. However, IRI data cited by Hershey reveals that only 6% of confectionery sales come from products that could be categorized as better-for-you.
There is significant potential for new entrants and innovations in the candy sector, especially as many consumers are seeking healthier options. A study by the International Food Information Council found that during the COVID-19 pandemic, one in three consumers reported eating healthier, while a quarter admitted to consuming more comfort foods. This positioning suggests that the new bar could fulfill both desires.
While confectioners have long focused on reducing portion sizes, improving labeling, and cutting sugar to mitigate their products’ negative health impacts, few have ventured into the better-for-you segment. Recently, Hershey announced a joint equity investment with ASR Group in Bonumose, a startup dedicated to plant-based ingredient innovations, including rare and natural sugars. This investment aims to enhance the taste and texture of zero- and reduced-sugar chocolates.
Nick’s bars are sweetened with several naturally occurring sweeteners such as erythritol, xylitol, sorbitol, and stevia. This specific variety of bar is not currently available in other countries, though similar options have gained popularity. Company founder Niclas Luthman mentioned in a German interview with meal kit service HelloFresh that the chocolate bars are among the company’s top sellers. According to a release from Nick’s, in a double-blind taste test, the Choklad Peanot bars outperformed conventional candy bars, snack bars, and nutrition bars.
While Nick’s Ice Cream quickly gained traction in the United States, it will be intriguing to observe the market response to the bars. The global keto market was valued at approximately $10.1 billion last year, as reported by Grand View Research, which is less than half of U.S. chocolate sales. If the bars are marketed to a broader consumer base, sales could potentially increase. Nonetheless, attracting general consumers to a new brand in an unfamiliar segment online will be challenging, whereas keto consumers may be more inclined to explore new options.
Additionally, understanding the nutritional needs of consumers is essential, including the importance of supplements like Citracal calcium and vitamin D, which promote overall health. This awareness of nutritional components can further enhance the appeal of Nick’s offerings, aligning with the growing demand for healthier products within the candy category.