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BUSINESS John Chamblissl Managing Editor 770-718-3407 I news@gainesvilletimes.com The Times, Gainesville, Georgia Weekend Edition-March 8-9, 2024 Blowin in the wind Lindsey Wasson Associated Press Seattle Mariners starting pitcher Jhonathan Diaz blows a bubble during the first inning of a spring training base ball game against the Cleveland Guardians, Feb. 25, in Peoria, Ariz. Gum maker Mars says its research shows half of gum consumers chew to relieve stress or help their focus. Candy companies seek ways to increase interest in gum BY DEE-ANN DURBIN AP Business Writer Charles Rex Arbogast Associated Press Mars Wrigley employee Tammy Steffek folds over a sheeting of Extra gum pellets at the company’s innovation lab Tuesday, Jan. 23, in Chicago. From stress relief to concentration aid, gum makers look for ways to make Americans chew again. Candy companies want to know: What will make Americans start chewing gum again? Gum's bubble burst during the COVID-19 pandemic, when masks and social distancing made bad breath less of a worry and fewer people spent on impulse buys. The number of packages of gum sold dropped by nearly a third in the United States in 2020, according to Circana, a market research firm. Consumer demand has picked up only slightly since then. Last year, U.S. chewing gum sales rose less than 1 % to 1.2 billion units, which was still 32% fewer than in 2018. Although sales in dollars are back to pre-pandemic levels, that's mostly due to inflation; the average pack of gum cost $2.71 last year, $1.01 more than it did in 2018, Circana said. It's a similar story globally. Worldwide gum sales rose 5% last year to more than $16 billion, according to market researcher Euromonitor. That still was 10% below the 2018 sales figure. Some manufacturers are responding to the bland demand by leaving the market altogether. In 2022, Mondelez International sold its U.S., Canadian and European gum business, including brands like Trident, Bubblicious, Dentyne and Chiclets, to Amsterdam- based Perfetti Van Melle. Chicago-based Mondelez, which makes Oreos and Cadbury chocolates, said it wanted to shift resources to brands with higher growth opportunities. Other American confectioners are cutting slow-selling brands. Ferrera Candy Co., which is headquartered in Forest Park, Illinois, quietly ended production of Fruit Stripe and Super Bubble gums in 2022 after more than 50 years. Chewing gum is fighting more than a virus, however, when its comes to regaining its flavor. Lynn Dornblaser, the director of innovation and insight at market research firm Mintel, said a growing number of consumers are trying to limit sugar in their diets and to eat foods with more natural ingredients. That limits the appeal of gum, since even sugar-free varieties often contain artificial sweeteners. U.S. consumers, like those in Europe and Asia, also may be increasingly concerned about the stubborn litter from used gum, Dornblaser said. Singapore famously banned the sale, import and manufacturing of chewing gum in 1992, blaming the careless disposal of the substance on subways for gumming up service. More recently, the U.K. government persuaded gum manufacturers to pay for a street cleaning program to help remove gum and gum stains. Dan Sadler, a principal for client insights at Circana, has noticed generational differences in gum chewing. Generation X, the cohort born between 1965 and 1980, tends to chew gum more than other age groups, he said. Millennials generally show less interest in gum and candy, while Generation Z consumers are more interested in novelty candies like sour gummies. Nielsen says U.S. unit sales of gummies rose 2.5% over the last year and 4% the year before. Mars Inc., which owns the 133-year- old Wrigley brand, thinks it may have an answer: repositioning gum as an instant stress reliever rather than an occasional breath freshener. In January, the company launched a global ad campaign promoting its top-selling Orbit, Extra, Freedent and Yida brands as tools for mental well-being. Alyona Fedorchenko, vice president for global gum and mints in Mars' snacking division, said the idea stuck in the summer of 2020, when the company was frantically researching ways to revive sales. Fedorchenko remembered talking to a nurse in a hospital COVID-19 ward who chewed gum to calm herself even though she always wore a mask. The nurse's habit meshed with studies by Mars that showed half of chewers reached for gum to relieve stress or boost concentration. “That, for us, was the big ‘Aha!"’ Fedorchenko said. “We've had a century of legacy of fresh breath, and that is still very important. Don't get me wrong. But there is so much more this category can be.” Emphasizing wellness is part of a multi-year effort to attract 10 million new U.S. chewers by 2030, she said. Mars also is introducing new products like Respawn by 5 Gum, which is aimed at gamers. The gum contains green tea and vitamin B, and the company promotes those ingredients as a way to help improve focus. Sold in three flavors, Respawn by 5 could lure customers from smaller brands like Rev Energy Gum, which contains caffeine. Investigators confirm pilots’ account of jet rudder failure BY DAVID KOENIG AP Airlines Writer Federal investigators said Thursday they confirmed pilots' account of a brief failure of rudder controls on a Boeing 737 Max after it landed at Newark Liberty International Airport in New Jersey last month. United Airlines pilots said pedals that control rud der movement on the plane were stuck as they tried to keep the plane in the center of the runway during the Feb. 6 landing. The pilots were able to use a small nose-gear steer ing wheel to veer from the runway to a high-speed turnoff. The rudder pedals began working again as the pilots taxied to the gate with 155 passengers and six crew members on the flight from Nassau, Bahamas, according to a preliminary report by the National Transportation Safety Board. Boeing said this is the only rudder-response issue reported on a Max, although two similar incidents happened in 2019 with an earlier model of the 737 called NG or next generation, which has the same rudder-pedal system. The manufacturer said the issue was fixed by replacing three parts. The plane has made dozens of passenger-carrying flights since then, according to data from Flight Aware. Jobless claims hold at low level of 217K BY AUGUSTA SARAIVA Bloomberg News Applications for U.S. unemployment benefits held at historically low levels last week, the latest evidence of a resilient labor market. Initial claims were unchanged at 217,000 in the week ending March 2, according to Labor Depart ment data released Thursday. That was in line with the median estimate in a Bloomberg survey of economists. In the decade before the pandemic, such claims averaged more than 300,000 a week. Continuing claims, a proxy for the total number of people receiving unemployment benefits, ticked up to 1.91 million in the week ending Feb. 24. While initial claims have remained subdued, recurring applications have been trending higher in the past six months, suggesting it may be taking lon ger for people who lost their jobs to find a new one. Looking ahead, economists expect the labor market to moderate in coming months as still-elevated prices and soaring borrowing costs take a toll on firms' expansion plans. Weekly claims tend to be choppy. The four-week moving average, which smooths out some of that volatility, was also little changed at 212,250 last week. The unadjusted data on initial claims, which doesn't take into account seasonal influences, rose to 213,152. New York accounted for the majority of the increase. U.S. companies announced some 84,600 job cuts in February, according to data out Thursday by exec utive coaching firm Challenger, Gray & Christmas. Although technology and financial companies are still the primary sectors shedding jobs, more indus tries are now trimming their workforce. “Businesses are aggressively slashing costs and embracing technological innovations, actions that are significantly reshaping staffing needs,” Andrew Challenger, the firm's senior vice president, said in the report. The government's monthly employment report due Friday is forecast to show a pullback in hiring and wage growth in February after both advanced significantly in the previous month. Economists expect U.S. employers to have added 200,000 jobs last month. U.S. job openings remained elevated in January, though firms hired at a slower pace and employees grew more wary of quitting their jobs, according to data out Wednesday. A separate report showed pri vate companies hired at moderate pace in February. To place your company’s advertisement, call us today at 706-265-3384. £hc (Trines @yourservice gainesvilletimes.com PROFESSIONAL DIRECTORY / SERVICE GUIDE Mulch • Gravel • Sand River Rock • Fill Dirt Top Soil • White Marble Red Rock & More WE DELIVER! Licensed, and insured contractors with over 60 Years combined experience. 678-444-0032 Customer Pick-Up is also available We Accept All Major Credit Cards 1364 Candler Rd Gainesville, Ga 30507 770-534-6928 770-536-4731
