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  • Gum in lines, the pockets of most Americans and has been a staple in American culture for centuries.

  • For some, gum is all about flavor, and for others it's about fear of bad breath, curbing hunger, alleviating anxiety, or simply

  • they just like chewing it among all the various gum sizes, packaging and flavors.

  • One thing has remained constant.

  • The Wrigley's brand name in twenty twenty, the gum industry's market value hit eighteen point six billion dollars.

  • And since twenty fifteen, Wrigley's held about 26 percent of the global brand share for chewing gum and a 40 percent hold in the U.S..

  • The gum maker has dominated the chewing gum market since its start, spawning brands from juicy fruit to orbit to five gum.

  • So first chew chewing gum, then it would juicy fruit and spearmint, and on the heels of that document is selling their

  • juice, fruit, spearmint and Doublemint phrases that they're always sort of on the cutting edge of the latest flavor and

  • add in candy and gum that's always been a staple of growth and driving interest and getting people to to come back to the category to try that new

  • flavor orbit was really special, you know, in the past 20 years that everyone knows.

  • And still to this day, I say like, oh, I did this campaign for becoming people.

  • What you heard, it hasn't always been smooth sailing for Wrigley's the brand.

  • So its fair share of turbulence and faced years of declining public interest in chewing gum, an end to its status as a family run business and

  • an acquisition by one of the largest candy companies in the last five years, the gum industry's market value.

  • So a 12 percent drop and in 20 20 gums, most prominent players were negatively impacted by the covid-19 pandemic.

  • Gumee may never sort of get back to where it was in twenty nineteen, at least not in this intermediate future.

  • So how did Wrigley's hold its status for over a century and how has the brand managed to stay on top through declining sentiment for gum and a

  • pandemic slowing down gum sales in the U.S.?

  • Long before the use of aluminum foil wrappers, GM's history dates back some 9000 years ago when northern Europeans were cheap birch bark

  • tar. Over the centuries, gum has taken many forms and served various cultural and social purposes.

  • Civilizations like the Aztecs and Mayans would chew gum for medicinal and social reasons.

  • But by the mid eighteen hundreds, gum started to take its modern day shape.

  • The first commercial gum was made from Spruce Tree Resin, developed in 1840 by John Curtis.

  • But chewing gum was popularized and commercialized by William Wrigley Jr., who started as a soap salesman in Philadelphia.

  • By 1893, William Wrigley Junior launched Gum Brands, Juicy Fruit and Wrigley's Spearmint, both still popular today.

  • The key to Wrigley success was marketing and advertising in 1997 during a recession.

  • Wrigley took out a two hundred and fifty thousand dollar loan solely for advertising.

  • Since ad rates were so cheap and a year earlier, Bassem ad spending would have cost Rigley six times as much.

  • Sales of Wrigley's gum saw a jump of one hundred and seventy thousand dollars in 1987 to three million dollars in 1910.

  • Wrigley solidified itself as the nation's top selling gum brand, and by 1919, the William Wrigley Junior Company was trading on the New York Stock

  • Exchange. Wrigley sales revenue reached 23 million dollars in 1929, and the company fueled their advertising efforts to six million dollars in

  • 1931. Wrigley is busy thinking about advertising and advertising, wanting to once again

  • finance its empire and ultimately was about William Wrigley in the garden, had

  • his name on it.

  • And you know what just worked?

  • By 1932, Wrigley was only 60 percent of the market.

  • Wrigley valued its advertising and marketing campaigns.

  • They were found on billboards, magazines, television and radio.

  • The advertising style kept in line with William Wrigley Junior's motto of Tell them quick and tell them often, an expression that carried through

  • much of the brand's history.

  • Doublemint juicy fruit and spearmint campaigns all advertise the importance of dental health, featuring kids with bright white smiles from

  • the 1930s to the 1950s.

  • Wrigley's brand advertise the peppermint flavor that relieves tension and soothes your nerves.

  • In the late 1950s, they've always been a really great marketing company.

  • If you could think back to just some of the A tagline you've seen for some other well-known brands that give extra get extra, the extra pep talks,

  • the real friend request this year, you know, some of the Doublemint commercials that I'm sure you could probably recite by heart.

  • So they've always done a really great job with marketing it.

  • The key to Wrigley success in its early days through the early 2000s was this hold on advertising.

  • Spending on advertising became a long standing tradition for Wrigley's, along with the other tradition of being a family run business.

  • In the early 2000s, Wrigley debuted one of the company's most iconic ad campaigns centered around British actress Vanessa Branch.

  • Was probably after the second wave that they knew this was going to really take off.

  • It did really well. The first round, which we shot three commercials originally, did really well.

  • And then they said, oh, it's doing so well.

  • Let's I think it was after about six months of those airing and then we did another round of two or three a.m..

  • Exactly. And then after that was when it had really become, you know, this kind of iconic thing for them.

  • In the 2000s, Rigley and other gun manufacturers hit a snag.

  • The overall sentiment for chewing gum shifted and the gun market began to see a decline in interest.

  • During that time, Wrigley's faced global competition from Cadbury and its gum business, including Trident and Dentyne, trying to sustain its hold.

  • Wrigley completed a deal to buy Kraft's candy division for one point forty six billion dollars in 2005.

  • This added outwards to the company's portfolio.

  • Sort of that mid to late 2000s is really where we started to see these ideas of the Clean Label Movement, right?

  • The rise of the kind barque, I think, is really along the same lines where we saw that really explode around that time.

  • And so I think just broader changes in snacking habits and how people were choosing to snack left the Rigley, the traditional Wrigley portfolio

  • challenge in terms of how to how to best move forward.

  • The Kraft deal wasn't enough.

  • And in 2006, William Wrigley Jr.

  • ended the family run tradition and resigned as CEO.

  • Wrigley was a self-contained family unit who stuck together for four generations,

  • sold products, sold it at a fair price every time the heat got a.

  • But in terms of that broader expansion, in terms of growing beyond where they were, it just

  • didn't happen.

  • That same year, Cadbury held ten point one percent of the confectionery market and there were rumors of a deal between Cadbury and Hershey, one

  • that would have secured the two as the top confectionery company in the world.

  • American billionaire Warren Buffett joined forces with Mars, one of the most prominent candy companies, to facilitate an acquisition for tens of

  • billions of dollars. Wrigley's market value reached seventeen point three dollars billion in 2008, which peaked Mars in Buffett's Berkshire

  • Hathaway's interest. You know, any time you bring on someone like a Mars that has just such a broad reach globally has the sort of resources that

  • they can to try to sort of bring these synergies together with their existing portfolio in the chocolate space and try to push that forward.

  • It probably was a time to do that, given the changes we were seeing in the consumer landscape.

  • Mars, MasterCard, Wrigley's for 23 billion dollars, allowing Mars to corner the chewing gum market at a time.

  • Wrigley's was already the gum industry sales leader with five point four dollars billion in sales in 2008.

  • Mars already had famous brands like Eminem's Snickers, Starburst and Twix.

  • But with the Wrigley's portfolio of Staple Gum Brands, the deal helped solidify Mars as the top confectionery company in the world.

  • Under the acquisition, rules became a separate standalone subsidiary of Mars, Wrigley shifted from being an American staple stock from 1919

  • to fall under Mars longstanding private umbrella.

  • On October six, 2008, six months after the deal's announcement, the William Wrigley Junior Company was delisted by the New York Stock Exchange.

  • I think that there was sort of that transition process where they said, yeah, we're going to bring you into the Mars family.

  • You're going to retain your sort of identity.

  • And then after after a period of time, they decided to eventually fold that in.

  • And 2016, Mars bought out Berkshire Hathaway's stake in Wrigley's to take full control of its subsidiary.

  • The gun market in the U.S.

  • started to dry up, and from 2009 to 2020, U.S.

  • gun sales dropped from four point one two billion dollars to three point one five billion dollars.

  • There are a lot of things that in that sort of broad release as an end of the family unit and one of them had to do

  • with the general view of two income people really go to that.

  • They get through the decade of declining gun sales.

  • Mar's focused on revitalizing another section of its portfolio in twenty seventeen, Mar's bought up health care provider V.K.

  • for nine point one billion dollars.

  • The deal was an effort to make Mars petcare and to the company's largest segment in sales, overtaking its candy and gum segments.

  • Petcare is now the focus of Mars before the pandemic.

  • I think it's kind of a different story when you look at sort of like twenty fifteen to twenty, nineteen and twenty twenty.

  • Before the pandemic, I would call the category sort of flat lining.

  • I think dollar sales were essentially flat between twenty fifteen and twenty nineteen volume sales, actual consumption was down over that span as

  • well. I think what we've seen is that for a variety of reasons, interest has really waned among that sort of younger consumer group.

  • Gun face declining public interest as younger consumer groups are a lot less interested in purchasing gum than generations before.

  • There's been very little change in innovation regarding gum, with younger consumers finding innovative snacks with bolder flavors replacing their

  • need for gum. Think about the GenZE consumers and for whatever reason, as they've come into the market, they have been much less interested in the

  • gum category than preceding generations were at that age.

  • However, the gum industry was dealt another blow when the covid-19 pandemic crippled industries.

  • The bottom line is that the category wasn't exactly on fire coming into twenty twenty for the pandemic and has really been quite stagnant, I would

  • say in both the US especially, and then even on a global scale, relatively speaking.

  • Founder of simply governing stated gum is an item that is used in social situations, such as going to a meeting or a party because of

  • covid-19 those activities have been declining.

  • So part of the decrease in sales is really because there is not as much demand from consumers, because the usage case has declined since March

  • 20, federal and state ordered social distancing guidelines nearly wiped away gum social component.

  • And so, again, as we've been trapped at home, people aren't going to work.

  • People aren't going to schools.

  • It's been just a huge drop off in demand.

  • I think we're we're looking at a decline of like 14 percent on a volume basis in twenty twenty, which is again, it wasn't doing well coming into

  • twenty twenty, but it was you know, this is a whole new level of sort of declines here.

  • As for now, Mar's Wrigley maintains its hold on the U.S.

  • and global market with nearly 40 percent and twenty five point nine percent of the game categories branchy respectively.

  • CNBC reached out to Mars for a comment, but the company was not available for response.

  • After over a decade of declining growth in the U.S., stagnant growth globally and Mars is focused on its pet care business.

  • The famous gum brands future remains uncertain.

  • I think what you will see a bit of a comeback here in the coming years.

  • Once people do start going to school again, start going to workplaces, going to offices, they'll be out.

  • They'll be interacting with them and buying it.

  • Once again, it's not going to be an immediate snap back.

  • In fact, long term, it may never even get back to where it was.

  • Chewing gum itself is an enigma.

  • And I would Yeah that chewing gum would find its way more into more purposeful

  • Bennu. I'm not sure that any of those shifts is going to make chewing gum what it used to be,

  • because I'm not sure we really have any need for it, for it to stay alive.

  • It needs continue to be fun.

Gum in lines, the pockets of most Americans and has been a staple in American culture for centuries.

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箭牌如何统治口香糖世界(How Wrigley's Dominated The World Of Chewing Gum)

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    joey joey 發佈於 2021 年 05 月 15 日
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