Greener, broader marketplace fuels candle sales

The green movement has candle manufacturers making consumer education a key marketing priority as arguments for or against the benefits of certain wax ingredients heat up the marketplace. A broadening of "other" home fragrance delivery methods such as diffuser reeds, scented oils and potpourri also has many vying for their share of the market with loyalty-building sales programs.

Though the National Candle Association puts the domestic annual retail sales number for candles at about $2 billion, many candle makers say the industry performance as a whole has been relatively flat over the past 12 months.

Illume's Liz Barrere said she sees the weakness primarily in the low and mid-tier candle market, but said luxury price points and boutique brands are performing well. "We are seeing incremental growth in both our branded Illume line and our private label business," she said. "Our major growth is coming from the naturals, as well as the redesign of our overall branded look."

Peggy Stover, director of marketing and sales for Soy Basics, maker of Beanpod Candles, said her company has enjoyed tremendous growth over the past few years, driven by a demand for socially responsible products that are environmentally-friendly. "Our products are made using the finest 100% soy wax available, our jars can be recycled and our merchandising units are made from recycled pine and other woods," she said.

Tony Grausso and Rick Contino oversee very different candle-making operations, but both report higher sales. Grausso runs Gap Creek Candle Company, a small privately held company in Pinehurst, N.C., and Contino is president of Midwest of Cannon Falls, home to century-old Colonial Candles.

"We're just five years old so significant year-over-year growth is expected, as we're just now reaching out into the marketplace and building our customer base," said Grausso, who feels bigger is not always better especially when it comes to candle production. "Gap Creek's (container) candles are carefully handcrafted to create a very effective 'melt field' when burning, meaning they melt all the way across the surface of the candle and to a depth of about a half inch."

Contino continues to build on the well-developed Colonial brand. "The 4 Cs of Colonial's logo are immediately recognized in the industry and have a loyal customer following," he said. "We've developed quality candles that burn better than any other candle and offer a wide range of fragrances and colors in our fragrance line, and pillars and tapers in our basic wax. Soy and beeswax are okay for limited needs, but soy is too soft and doesn't hold up for non-filled or non-container formats. Our line covers all formats for all needs."

The NCA reports that paraffin is the most commonly used candle wax, surpassing vegetable-based waxes, gels, synthetic waxes and beeswax.

Stover is firm on the advantages of soy over traditional paraffin and counts educating the public as one of her company's challenges going forward. "The average person is not aware that paraffin is a petroleum by-product made out of refined gasoline. In the past it was the only option available. Today, there are more choices that are eco-friendly."

Soy Basics, according to Stover, is the largest U.S. manufacturer of 100% soy wax candles. "Soy wax is a renewable resource that is biodegradable, clean-burning and earth-friendly, and it can be cleaned up with soap and water."

Chris Hassell, CEO of Honeybee Natural, said some soy may present a downside. "A lot of soy is now from GMO (genetically modified organism) strains, which pose an unknown risk to the whole ecosystem and, ironically, soy requires pollination from bees which are, in turn, poisoned in the commercial agricultural environment." As for paraffin, Hassell said, "It's an oil derivative and clearly toxic, especially when scented with synthetics."

Honeybee Natural makes Santa Fe Healthy Candles from unscented beeswax. "Beeswax is uniquely virtuous in all other terms and is still, we believe, the best and cleanest choice." Hassell said his growth in the small niche market is limited only by operating capital and the fluctuating cost of beeswax, a consequence of Colony Collapse Disorder wherein honeybees desert their hives and don't return.

According to the NCA Web site, studies have shown beeswax, paraffin and vegetable-based waxes to be biodegradable. The organization maintains that an ingredient's designation as "natural" as opposed to "manufactured" or "synthesized," doesn't necessarily mean it is safer. The NCA also says paraffin wax is non-toxic, that the U.S. Food and Drug Administration has approved its use in food, cosmetics and medical applications, and that food-grade paraffin is commonly used for manufacturing candles.

Despite differing opinions regarding their products, all of the manufacturers are in agreement when it comes to the importance of a marketing focus that includes retail and consumer education on the key points that influence buying — scent, cleanliness, burn process and environmental friendliness.

Soy Basics offers a year-round "Free Hutch" program that includes a merchandising unit and point-of-sale materials with the purchase of the candles. "It's a great program to introduce both retailers and their shoppers to Soy Basics," Stover said.

Grausso said Gap Creek provides its resellers with a "proven strategies" sheet, selling techniques that can be adopted right from the start. "Scented candles are a 'consumable' for want of a better word. And if you offer an exceptional product at a reasonable price point, you quickly begin establishing a loyal following of end consumers that buy on regular cycles for themselves and for others as gifts."

Colonial/Midwest launched a marketing program earlier this year called Sparkle, designed for in-store use by its independent retail customers. "In addition to great product, Sparkle provides display ideas, in-store event support and marketing materials such as postcards and brochures to help with sell-through," Contino said.

Honeybee Natural serves healthy food and product stores, high-end restaurants and hotels, healthcare professionals and spas. "I just read this morning that there are an estimated 37 million Americans with chemical sensitivities," Hassell said. "We believe that healthy candles represent the future of the market."

Illume's products are carried in 3,000 gift stores nationwide, better department stores and specialty chains. "As merchants buy closer to need, supply chain management becomes critical," Barrere said. "It is a very competitive marketplace, but with the overall growth of the home fragrance category there is plenty of opportunity out there."

Grausso added, "We have more players and more products competing for the consumer and trying to influence her purchase decision. That said, thankfully, there is still a basic human attraction to the soft glow of a lighted candle and, in particular, to a candle that is safe, clean-burning, long-lasting and exceptionally fragrant."

Peggy Stover

Tony Grausso