Bubbaloo and the chewing gum market: what are the challenges?

Taís Farias

December 22, 2022 – 12:31 am

To overcome the crisis and conquer new generations, Bubbaloo entered a new segment with soft sweets (Credit: Disclosure)

At the beginning of the week, In a statement, Mondelez announced the sale of its chewing gum division in the United States, Canada and Europe🇧🇷 The negotiations include brands such as Trident, Dentyne and Chiclets and had a total value of US$1.35 billion. The buyer was the Perfetti Van Melle Group, a European company that produces brands such as Mentos and Chupa Chups. The negotiations also included a plant in the United States and do not apply to other countries, such as Brazil.

Gum crisis?

The change in business and disinvestment is a reflection of a difficult period for the sector. According to data from Euromonitor International, in Brazil before the start of the Covid-19 pandemic, 99.8% of chewing gum sales were in physical stores. Of this, 44% in small grocery stores.


Mondelez sells chewing gum for $1.35 billion

With impaired circulation and the use of masks, the consumption of chewing gum and sweets slowed down. Added to this is the fact that buying in the segment happens impulsively. That is, they are not planned by the consumer. Another thing is that even before the pandemic, the user was already showing additional health concerns and excessive sugar consumption.

“The pandemic has been a challenging time for the chewing gum and candy category, as it has affected both consumption opportunities that are strongly associated with socialization or mobility, as well as shopping opportunities that are highly concentrated in small retailers, as well as the momentum of large stores . . – the checkout area – an opportunity also strongly affected by social distancing and the fear of touching the products that were on display,” explains Ana Carolina Teixeira, Marketing Director for Candies and Chewing Gums at Mondelez Brasil.

In the country, sales would increase by around 13% in 2022, according to Euromonitor. But they are still far from the pre-pandemic level. Mondelez is the leader in terms of market share (almost 82%). Among the brands, Trident leads the way, followed by Mentos, Bubbaloo and Big Big.


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Bubbaloo and nostalgia

In third place in market share, Bubbaloo has led a number of movements in this recovery. Last October, the brand announced a partnership with the Cuide-se Bem line, O Boticário. The products are inspired by and have the smell of tutti-frutti gum. The partnership sold out in the short time available.

After the success, the action was continued in August of that year, with a space for grape and strawberry scents. The following month saw the chewing gum brand team up with Trakinas, also from Mondelez, which launched the Bubballoo tutti-Frutti flavored biscuit.

It is also new that the company entered a new segment with the line of Bubbaloo soft candies after five years without release. The thread that unites this entire strategy is nostalgia and the desire to, at the same time, serve those who were fans of the brand in their childhood and awaken the desire of new generations.

“We know that the Bubbaloo brand has been an icon in the lives of Brazilians since the 1980s, when it launched the first filled chewing gum. We have been a part of many people’s childhoods and our flavors have the power to bring them back to those happy moments. This nostalgia, which shakes the hearts of Millennials, was certainly one of the factors that brought our brand back into the conversation with such force in collaboration with O Boticário, for example. The relevance we got from this audience made us approach other generations, such as Z and Alpha, which are our current focus”, says Ana Carolina Teixeira.

“We embraced the challenge of entering the sweet candy segment in order to renew our trajectory and win the hearts of new generations,” adds the CEO.

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