Interview: CANEL’S MAKES HALLOWEEN EVEN SWEETER

There’s no sweeter holiday than Halloween. When we think Halloween, we conjure thoughts of costumes, monsters, and scary stories. But in the food industry, it’s all about the candy. Every year, Americans purchase an estimated 600 million pounds of candy (that’s approximately 300,000 tons) in preparation for the holiday, totaling a $4.6 billion dollar spend in the two months leading up to October 31st. Whether to give out candy to trick or treaters, fill orange jack o’ lantern bowls at Halloween parties, or maybe to just enjoy by the handful while watching a scary movie, there’s no better time of year for candy sales. And in the Hispanic market, Canel’s, the leading Hispanic chewing gum brand in the United States, is a confection company in a category all its own.

Canel’s, now one of the largest names in Mexican candy, was founded in 1925 by Don Roberto Garcia Larranaga in San Luis Potosi, Mexico, where the brand began to grow locally. It wasn’t until the second World War, in the 1940s, when in effort to combat their growing anxieties, people turned to chewing gum, and Canel’s, seeing an opportunity to offer their product to a broader market, began exporting into the U.S. This decision led to an explosion of growth. Now in over twenty-five countries worldwide, from Canada to Costa Rica to Israel, with three factories in San Luis Potosi, Mexico, and one Distribution Center in Texas, USA, and generating approximately $320,000,000 in confection sales annually, Canel’s is a household name. The company’s success has allowed it to diversify into the aviation, hospitality, and real estate industries, but its heart is still in its candy.

This Halloween season we have the privilege of speaking with Gaston Gonzales, the National Director of Hispanic U.S. Sales for Canel’s. Gaston shares with us that while their products sell year-round, it’s without a doubt between the months of September and December that their sales spike and break records. With a country coming out of a year when trick or treating and public gatherings were frowned upon or regulated, and still in an uncertain climate facing limited social interaction due to the rise in variant and breakthrough cases, we asked Gonzales how the COVID-19 pandemic has affected Canel’s.

“Like everyone, we’ve faced many new challenges during the pandemic. We struggled with supply chain issues, especially in sourcing and receiving raw materials, which meant lower overall production.”

At the same time, less candy was being consumed in the first months of the pandemic when everyone’s focus was to fill their homes with paper goods and canned food. But then, as the “new normal” took hold, along with a heightened sense of global anxiety, just like in the 1940s during the Second World War, many turned to gum and other candies to bring some comfort into their lives. This increased demand sent Canel’s’ sales through the roof, resulting in a record-breaking month of sales from July of 2020 through July 2021.

“Our number one seller is still our chewing gum, followed by our milk products, and our famous Canel’s pinata mixes known as El Pinatero.”

The confection company’s biggest challenge is still the supply chain, which is far outpaced by the growing candy demand. This has resulted in extended lead times to the consumer, doubling from a two-week lead time to a one month long wait between production to market. Still, Gaston feels the challenge is one that can be overcome and has shared that it’s currently Canel’s number one focus: increasing supply to meet the growing demand. At the store level, Canel’s has provided support by promoting faster shelf-rotation, so the stores themselves can buy-in more product at a time to overcome the increased delivery lead times. Going into 2022, Canel’s is ready to both continue its growth and overcome the supply chain challenges (especially lack of transportation and raw materials) being faced globally. Gaston tells us that 2022 will be a critical year. Everyone will be facing significant cost increases due to inflation and supply chain factors, but Gaston and his team are ready to meet all challenges head on.

“Canel’s is a family company, so we can react and take action quickly. With new strands of COVID-19, we must be prepared, working hard and giving all that we have to continue our growth.”

Overall, Gaston and Canel’s are getting ready for an amazing return for the Halloween season in 2021.

See you all out there with your costumes, candy, and Canel’s!