Tupperware, Halloween candy, claw machines — oh my!

Summary

Marketplace: Tupperware, Halloween Candy, Claw Machines — Oh My! Release Date: October 25, 2024

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Economic Sentiment on the Rise Amid Political Tensions

Consumer Sentiment Reaches Six-Month High

In this episode of Marketplace, host Kristin Schwab delves into the latest economic data, highlighting a significant rise in consumer sentiment reported by the University of Michigan. Despite lingering economic concerns, consumer confidence has hit a six-month peak in October.

Gina Smylik, a reporter at The New York Times, explains, “Confidence really improved a lot among Republicans specifically. [...] People saw a better chance of unemployment staying low and stable and better expectations for income growth” (01:09). This improvement is attributed to a combination of political factors and positive labor market outlooks, indicating a "one, two punch" of enhanced job market perceptions and increased optimism among Republican consumers.

Sadeep Reddy from Politico adds context by linking the rise in sentiment to declining gasoline prices and overall lower inflation. “Gas prices are down from where they were a month ago. [...] It puts consumer spending on a stronger footing” (02:58). These factors collectively bolster consumer confidence despite the charged political climate as the nation approaches a crucial election and the next Federal Reserve meeting.

Federal Reserve's Next Moves and Economic Projections

Anticipation of Fed's Interest Rate Decision

The episode further explores the impending Federal Reserve meeting, with Gina Smylik providing insights into potential interest rate adjustments. “There’s widespread conviction that it makes sense to continue lowering interest rates. Inflation has come down a lot” (03:17). However, the exact magnitude and pace of future rate cuts remain uncertain, hinging on forthcoming economic data.

Sadeep Reddy emphasizes the Fed's cautious approach: “The economy is not really weakening and that's what they're looking for. [...] The Fed just needs to keep finding a way to just bring rates down slowly but not radically” (06:00). This strategy aims to normalize interest rates without triggering a significant downturn, maintaining economic stability.

IMF's Optimistic Economic Growth Projection

Adding to the positive economic outlook, the International Monetary Fund (IMF) has projected that the U.S. economy will outperform other advanced economies this year. Gina Smylik attributes this to robust American consumer spending and business investment. “We are seeing this virtuous cycle where everything's fueling itself that is not happening so much in some of our overseas counterparts” (06:16). In contrast, regions like the Eurozone face slower growth and rapidly declining inflation, highlighting the U.S.'s economic resilience.

Durable Goods Report: Mixed Signals Amid Industry Struggles

Decline in Durable Goods Orders

Marketplace examines the latest durable goods report from the Census Bureau, which indicates a slight decline in new orders for September, primarily due to a downturn in the transportation sector. Durable goods orders fell by 0.8% in September, mirroring August's performance (08:17). Excluding transportation, there was a modest increase of 0.4%.

Impact of Boeing's Labor Strikes

The persistent strike at Boeing has significantly influenced the transportation sector's performance. Kaylee Wells, a reporter for Marketplace, notes that “Boeing is two months into a strike and in a years-long struggle with quality control and faulty planes” (08:17). This strike has not only dragged down durable goods orders but also casts uncertainty over future industrial output.

Future Expectations and Market Responses

David Garfield, global head of industries for Alex Partners, advises caution despite the slight uptick in non-transportation sectors. “The uptick will be gradual” (09:12), anticipating that anticipated rate cuts and the upcoming election will bring more certainty, potentially leading to increased orders over time.

Small Businesses Spotlight: Crane Games Thrives in Colorado

Crane Games' Success Story

In the "My Economy" segment, Kristin Schwab profiles Leanne Tun, co-owner of Crane Games in Aurora, Colorado. Tun shares her journey of establishing a claw machine arcade inspired by her experiences in Asia. “It was overwhelming. We just couldn’t believe that we have gotten this far” (10:38). Despite logistical challenges, Crane Games has thrived, with recent expansions into Thornton, Colorado, slated for mid-December.

Community and Consumer Engagement

Tun emphasizes the community's positive reception: “You actually hear adults squealing inside our arcade. [...] Our hunch about the community's interest in this type of entertainment has been correct and so we're just thriving” (12:00). This success underscores the importance of innovative small businesses in driving local economies and meeting consumer demands.

Tupperware's Bankruptcy: Shifting Consumer Preferences and Sales Models

End of an Era for Tupperware Parties

Tupperware, once a staple in American households through its social selling model, has filed for bankruptcy after experiencing steep revenue declines. Stephanie Hughes explores the factors behind this downturn, noting a shift away from plastic products and changes in consumer shopping behaviors. “Tupperware was a pioneer in selling at social gatherings called Tupperware Parties, a business model that's been replicated by many other companies” (17:26).

Challenges in Adapting to Modern Shopping Trends

Neil Saunders, a retail analyst with Global Data, points out that “The Internet just changed all that” (18:09). While Tupperware has transitioned to online and in-store sales, nearly 90% of its sales previously relied on direct sellers. Additionally, the product lifespan of Tupperware items—lasting a decade or more—contrasts sharply with consumable goods like skincare and makeup, which require regular repurchasing.

Direct Selling Model Limitations

The reliance on direct selling also posed challenges. Lauren Biedelschmacker, a marketing professor at Babson College, notes that the model works best for passionate sellers rather than those relying on it as a primary income source. Legal issues, such as the lawsuit faced by clothing company Lularoe, further illustrate the vulnerabilities of the party plan business model.

Halloween Candy Trends: The Rise of Gummies Over Chocolates

Shifting Preferences Among Generations

With Halloween approaching, Marketplace examines evolving trends in candy preferences. Leanne Tun, contributing insights on candy trends, reveals a notable shift from traditional chocolates to gummies and sour candies, particularly among Gen Z and Millennials. “We're going to see less chocolate this year and probably next year, too” (22:29). Rising cocoa prices and increased consumer interest in diverse flavors drive this change.

Innovative and Seasonal Candy Offerings

Candy manufacturers are responding by diversifying their offerings. “There are more flavors, more varieties, more combination packs of candy than we may have seen in the last couple of years” (22:29). Examples include Twizzlers shaped like ghosts and specialized candy corn with autumn themes. These innovations cater to younger demographics while maintaining traditional favorites for older consumers.

Industry Adjustments to Rising Costs

Chocolate producers are also adapting to higher costs by introducing products that use less cocoa, such as more chocolate-coated items with added nuts. This strategy helps manage expenses while continuing to offer beloved sweets. “With certain, you know, snacky foods, if consumers really like them, they're still going to buy them” (24:55).

Labor Market Updates: Strikes Impacting Employment Metrics

Ongoing Strikes and Their Economic Impact

In the final segments, Sadeep Reddy highlights the latest Bureau of Labor Statistics report showing at least 44,000 workers on strike, with 33,000 of them being machinists at Boeing (26:05). These strikes are expected to influence the upcoming unemployment report, reflecting ongoing labor tensions in key industries.

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Notable Quotes

• Gina Smylik: “Confidence really improved a lot among Republicans specifically. [...] People saw a better chance of unemployment staying low and stable and better expectations for income growth.” (01:09)

• Sadeep Reddy: “Gas prices are down from where they were a month ago. [...] It puts consumer spending on a stronger footing.” (02:58)

• Gina Smylik: “There’s widespread conviction that it makes sense to continue lowering interest rates. Inflation has come down a lot.” (03:17)

• Sadeep Reddy: “The economy is not really weakening and that's what they're looking for. [...] The Fed just needs to keep finding a way to just bring rates down slowly but not radically.” (06:00)

• Lauren Biedelschmacker: “If you're doing it as your livelihood to provide for your family, that could be problematic.” (19:35)

• Leanne Tun: “We're going to see less chocolate this year and probably next year, too.” (22:29)

• Sadeep Reddy: “The Fed is clearly trying to normalize interest rates. [...] Until then, the Fed just needs to keep finding a way to just bring rates down slowly but not radically.” (06:00)

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Conclusion

This episode of Marketplace offers a comprehensive analysis of current economic trends, the struggles of legacy companies like Tupperware, and evolving consumer preferences, especially surrounding Halloween candy. Through insightful interviews and expert commentary, listeners gain a nuanced understanding of how political dynamics, market shifts, and consumer behavior intersect to shape the economic landscape.

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Timestamp Guide:

• All timestamps are referenced in the summary to correlate with specific segments from the transcript.

Transcript

[Kristin Schwab]

A review of this week in the economy, plus a look back at Tupperware parties and a look ahead to Halloween from American Public Media. This is Marketplace in New York. I'm Kristin Schwab in for Kai rysdal. It's Friday, the 25th of October. Thanks for listening. It kind of feels like we're living in a hold our breath moment, the election, the next Fed meeting. But as we wait, there are plenty of details that could give us some insight into what's to come. So let's get into it. Sadeep Reddy is at Politico, Gina Smylik is at the New York Times. Hey you two.

[Sadeep Reddy]

Hi, Kristen.

[Gina Smylik]

Hey, Kristen.

[Kristin Schwab]

So today's big piece of economic data was consumer sentiment from the University of Michigan. It hit a six month high in October. Gina, we as in we on this show, but also you and I as reporters have long talked about how grumpy people feel about the economy despite all the economic data. What, what's changed?

[Gina Smylik]

Yeah. So as with so many things right now, it was a little bit political, a little bit economic. What we saw was that confidence really improved a lot among Republicans specifically. So they saw a tick up and then we saw a tick down for Democrats. So it does seem like we're seeing a pretty partisan divide here. But then the other thing that happened this month is that people started to feel a little bit better about their labor market outlooks. So people saw better chance of unemployment staying low and stable and people saw better expectations for income growth. And so it seems to be sort of a one, two punch here. A little bit more confident about the job market and for Republicans, at least a little bit more confident about the trajectory overall?

[Kristin Schwab]

Hmm. Yeah. Well, Sadeep, I was wondering, you know, is it odd that sentiment continues to climb as we get closer to a nail biter of an election?

[Sadeep Reddy]

It's going to have this remarkable effect right after the election where we will see a flip among the parties. Whoever wins is going to go in one direction among sentiment and people who affiliate with the losing party will go in the other direction. There's really an overriding factor in all of this that we do have to keep in mind. Consumer sentiment tracks extremely closely with gasoline prices. The shifts in sentiment really tie in with that. Obviously, inflation overall is down. Gas prices are down from where they were a month ago. They're down a lot more from where they were a year ago. That lifts all boats in the economy. It puts consumer spending on a stronger footing. It makes people feel a little bit better as they're gassing up their cars, especially if they still have jobs, as people generally do right now. So those forces are really providing some support when we're obviously in a pretty crazy partisan period for the election.

[Kristin Schwab]

Well, the other thing I mentioned up top is the Fed's next meeting coming in a little less than two weeks. As usual. The Fed presidents did a lot of speeches in the last couple weeks. Gina, can you give us some insight into what they might be thinking about the next interest rate decision?

[Gina Smylik]

Yeah. So I think what we've seen is a pretty widespread conviction that it makes sense to continue lowering interest rates. Inflation has come down a lot. We are seeing decent job growth, but overall, you know, the job market has slowed down over, over time, over the last last year or so. And so I think that sort of paves the way for lower interest rates. That said, I think there's a real question about just like, how much lower and how quickly do we need to get there? That doesn't mean much for this month, I think. I think markets broadly expect the Fed to rate lower rates by a quarter point, but I think it could mean things beyond that. You know, I think there's this real question of like, how quickly are they going to bring down interest rate forward, you know, beyond November? And I think that that is really going to hinge on the economic data. And that's pretty much what they've been saying across the board, you know, like they expect to make two more rate cuts this year, but, you know, they're going to, they're going to be watching where both sort of the overall strength of the economy and also the inflation data come in.

[Kristin Schwab]

Sure. Well, then, Gina, what will the Fed be looking at in the next week or so as we lead up to that meeting to tell it where to go?

[Gina Smylik]

Yeah. So I think we've got, we've got a couple more data reports. We've got PCE inflation, which is expected to be pretty moderate. So I think, I think that will, you know, clearly be an enabling factor, assuming it comes in as expected, for the Fed to cut rates. The other thing we'll be looking at is the jobs report. We get the jobs report next Friday. I think people will be keeping a very close eye on that to see whether, whether the labor market and those are sort of the two big. The two big ones between now and the Fed meeting.

[Kristin Schwab]

Yeah, Sudeep, how important is the jobs report at this stage in one direction or the other, and what are your expectations there?

[Sadeep Reddy]

Yeah, look, the Fed is clearly trying to normalize interest rates. They've been so high because of the wrenching inflation. And now that inflation is back down to really pre pandemic levels, they've got to contend with what is the appropriate normal place to be. But the economy is not really weakening and that's what they're looking for. We will, as Gina said, said we're going to have a strong GDP report, we're going to have a jobs report. That's going to be weird because of hurricane and strike effects and a lot of fluky things that might have been going on over the past month. So they're going to be looking to make sure that the job market remains fundamentally healthy under the surface. And it still feels like you need some kind of a shock to the economy for this jobs market to fall out of favor. And we just haven't seen that yet, thankfully. And until then, the Fed just needs to keep finding a way to just bring rates down slowly but not radically.

[Kristin Schwab]

Well, on that note, another report that came out this week was from the IMF projecting the economy will grow even more than expected this year and that we're doing better than other advanced economies. Gino, what's going on here? What's giving us a leg up?

[Gina Smylik]

Yeah, it's really all about the American consumer. We've seen really continued strong spending both on behalf of households and on businesses. You know, businesses are investing, consumers are buying stuff. We're seeing just sort of this, this virtuous cycle where everything's fueling itself that is not happening so much in some of our overseas counterparts, particularly in the euro area, where growth has actually been a little bit anemic and inflation is falling a lot more quickly than I think many people had expected. And so we are seeing this divergence where things are really sort of looking pretty, pretty comfortable here. Things are looking pretty warm. And then in Europe, by contrast, people are saving a lot of their money. They're not, they're not going out and spending in the same ways. And that's really driving a lot of that.

[Kristin Schwab]

Friends, Sadeep Ready is at Politico. Gina Smilek is at the New York Times. Thanks again and have a good weekend.

[Sadeep Reddy]

You too. Thanks, Kristen.

[Kristin Schwab]

Wall street today seem to also be waiting for clues for what's to come. We'll have the details when we do the numbers. Sadeep, Benjina and I just talked about some important pieces of economic data coming out in the weeks ahead. Here's a maybe not as flashy, but eyebrow raising. One we got today the monthly durable goods report from the Census Bureau, which measures business Inventory, it saw another small decline this month. New orders fell in September, eight tenths of a percent, just like they did in August. Thing is, if you strip out the transportation sector, the remaining new orders actually went up by 4/10 of a percent. Marketplace's Kaylee Wells reports the report's biggest.

[Kaylee Wells]

Downer is just one company. Boeing is two months into a strike and in a years long struggle with quality control and faulty planes, it is also the domestic maker of planes. Boeing is our airline industry.

[Leanne Tun]

So the fact that you got one.

[Kaylee Wells]

Company that's so, so dominant that can drag things down. Ed Emmett is a fellow in energy and transportation Policy at Rice University's Baker Institute. He adds that the whole transportation industry is bracing for election results. Elections have consequences and I think everybody.

[Sadeep Reddy]

Right now is waiting to see what's.

[Kaylee Wells]

2025 going to bring. Meanwhile, some manufacturers are still unloading their built up pandemic era inventory.

[Sadeep Reddy]

For instance, trucks are not doing well right now.

[Kaylee Wells]

Dave Herring is senior VP of US Sales at Mitsubishi HC Capital America. Inventory aside, he says the biggest reason.

[Sadeep Reddy]

Is the reduction in anticipated reduction of interest rates.

[Kaylee Wells]

As for the uptick in orders in other sectors, last month the increases were modest and David Garfield says that's reason for caution. He is global head of industries for Alex Partners.

[Leanne Tun]

Even when you exclude transportation and show.

[Sadeep Reddy]

A bit of an increase, we're really flat year over year.

[Kaylee Wells]

But Garfield says those expected rate cuts and the election will bring more certainty and maybe more orders, but the uptick will be gradual. I'm Kaylee Wells for Marketplace.

[Kristin Schwab]

In many ways, small businesses are the bread and butter of American commerce. They make up more than 99% of businesses in the U.S. so when we saw this stat from the Chamber of Commerce, our ears perked up. Colorado had the largest growth rate of new business applications in the country last year, up 115% from the year before. So that's the setup for this installment of our series My Economy.

[Jacqueline Peiser]

My name is Leanne Tun. I am the co owner of Crane Games in Aurora, Colorado. What inspired me to open Crane Games was a trip that my business partner and I took to Asia where we saw a lot of these toy claw machines arcade that just littered the streets of Asia everywhere we went. And we just saw that we didn't have anything like that, especially in Aurora. So that's when we decided that we wanted to do this. And not only that, but we spent a significant amount of money for our kids to play this. So we said hey, it would just make sense for us to go ahead and open one for them now. We officially opened in July of 2024. In the summer, after working with a specific vendor to build all of our machines, we had to ship them from abroad, packaging it correctly, getting through customs, that in of itself was very time consuming and very difficult. I mean, I never thought I'd have to learn about logistics or importing until, until we decided to jump into Crane Games on our grand opening day. I was super nervous. It was overwhelming. We just couldn't believe that we have gotten this far because at some point we just thought it was never going to happen. Especially with the logistics from abroad, the ambiance, the buzz, everything was just more than I have expected. You know, you actually hear adults squealing inside our arcade. It's not just kids. It turns out that our hunch about the community's interest in this type of entertainment has been correct and so we're just thriving. We recently signed a lease for our second location in Thornton, Colorado and we're hoping to have it open by mid December. So prior to the winter break because we know families gather. Juggling four kids in school with a shop and another upcoming shop that we're building out has been overwhelming. But it's been a good thing. It's been amazing. I just feel so blessed to even have this opportunity.

[Kristin Schwab]

Leanne Tun, co owner of Crane Games in Aurora, Colorado. We can't do this series without you. Write to us about what's happening in your [e-mail] my economy. Coming up, Gen Z and Millennials are.

[Leanne Tun]

Opting more for the gummy candies. Older generations are still interested in chocolate.

[Kristin Schwab]

The most polarizing of generational differences. But first, let's do the numbers. The Dow Jones industrial average lost 259.6 10% to finish at 42,114. The Nasdaq gained 103 points to close at 18,518. And the S&P 500 shed 1 point, staying flat to end at 58.08. For the week, the Dow lost 2, 7, 10%. The Nasdaq gained 2/10% and the S&P fell 1%. We heard from Kaylee Wells about durable goods. Orders for September dragged down in part by the two month strike. At Boeing, shares declined a 10th percent and some other durable goods stocks. Whirlpool Corporation drained 5, 7, 10%. Stanley Black and Decker fell 0.9%. Ethan Allen Interiors was unchanged. Bonds fell. The Yield on the 10 year T note rose to 4.24. You're listening to Marketplace.

[Sadeep Reddy]

You turn to Marketplace for up to the minute news, for stories that show you the connections between global events and your personal economy. And you're not alone. Marketplace is the most widely consumed business and economic news program in the country. We're proud to make fact based journalism freely accessible and Marketplace investors make it all possible. Your year end donation today will make a real difference in our nonprofit newsroom and in the lives of millions of Marketplace listeners every single day. So please contribute what you can [e-mail].

[Kristin Schwab]

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[Leanne Tun]

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[Kristin Schwab]

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[Kaylee Wells]

When Tupperware debuted right after World War II, it was considered high tech and people needed to see it in order to understand it.

[Kristin Schwab]

Yes, there's a party going on at.

[Leanne Tun]

Mrs. Betty Martin's house.

[Sadeep Reddy]

It's a Tupperware party and it's really fun.

[Kaylee Wells]

That's from a 1961 Tupperware ad. The Mrs. Betty Martins of the world would invite their friends over for a demonstration of Tupperware's airtight storage. One seller was famous for filling a bowl with water or even grape juice, sealing the lid with that iconic burp, and then tossing it around the room.

[Leanne Tun]

It was an interesting new way of selling, and it was something that consumers responded well to.

[Kaylee Wells]

Neil Saunders is a retail analyst with Global Data, but he says this was a particular moment in time.

[Leanne Tun]

The Internet just changed all that.

[Kaylee Wells]

Tupperware is now available online and in store from some retailers, including Amazon and Target. But nearly 90% of the company's sales last year came through direct sellers. And Saunders says Tupperware has another problem.

[Leanne Tun]

Tupperware does last, so once you've bought a set, you probably don't need to buy another one for 10 years, maybe more.

[Kaylee Wells]

Compare that with skincare and makeup. When people are loyal to a product, they might refresh their supply on the regular for decades. Tammy Jones of Wake Forest, N.C. started holding Mary Kay parties more than 40 years ago. We talked recently over zoom. I see you, do you see me? I do not.

[Kristin Schwab]

Okay, good. So I didn't get my makeup on yet.

[Kaylee Wells]

So Jones is a Mary Kay devotee. When she started selling, she was divorced and also working as a dental assistant. She did it just part time for some extra cash. I never made tons of money, jones says. She usually earned one or two thousand dollars a year, and there are other benefits. She says taking charge of the parties increased her confidence.

[Kristin Schwab]

You got to be able to get up there and talk, and that's intimidating.

[Kaylee Wells]

But the more you do it, the.

[Kristin Schwab]

More easier it gets.

[Kaylee Wells]

Jones doesn't host parties these days and sells just to a few friends and members of her family. Babson College marketing professor Lauren Biedelschmacker says the party plan business model works best for people who sell something because they love it.

[Leanne Tun]

If you're doing it as your livelihood to provide for your family, that could be problematic.

[Kaylee Wells]

At least one company has faced legal action over problems sellers have faced. In 2021, the clothing company Lularoe settled a lawsuit with the attorney general of Washington State. The lawsuit accused the company of misleading sellers by promising them big profits, when in reality many were left with unsold merchandise and debt. As part of the settlement, Lularoe denied any wrongdoing. Also, most party plan companies encouraged sellers to recruit others to sell, Beatlesbacher says. In some communities, that means sellers are competing with their friends for the same customers.

[Leanne Tun]

Then it becomes, well, I'll buy this product from you and you buy this product from me, and then nobody's really.

[Kaylee Wells]

Making any money, the Direct Selling association said in a statement that there is never a lack of customers for anyone willing to give their time and energy to selling. It says direct sellers averaged more than $6,000 in sales last year. Lauren Biedelspacher says a lot of people are now doing this on social media.

[Leanne Tun]

You just create an event, and because your friends have opted into this online.

[Kristin Schwab]

Event, the content that you post is.

[Leanne Tun]

Going to show up in their feed.

[Kaylee Wells]

She says part of the allure is you can only buy this way if you're invited.

[Leanne Tun]

Really appealing to our middle school senses.

[Kristin Schwab]

Of not wanting to get left out of the party.

[Kaylee Wells]

Tupperware itself acknowledged in a bankruptcy filing that it's been late to the party when it comes to how people shop now. It noted the technology it's providing to its sellers hasn't been on par with what competitors use. That's one reason a lot of those sellers have quit leaving the party entirely. I'm Stephanie Hughes for Marketplace.

[Kristin Schwab]

Halloween is less than a week away. The National Retail Federation expects Americans to spend three and a half billion dollars on candy for the holiday this year. This is your reminder to stock up for trick or treaters. But if you have already done your candy shopping, maybe you've noticed a change in what kinds of sweet treats are on the shelves. Jacqueline Peiser wrote about this in the Washington Post the other day. Jacqueline, welcome to the program.

[Leanne Tun]

Thanks for having me.

[Kristin Schwab]

So when you think of Halloween candy, traditional Halloween candy that you grew up with, what comes to mind for you?

[Leanne Tun]

Well, I think it depends on the household. You know, some people loaded up on, you know, Snickers and Hershey's and three Musketeers that held variety packs. Some people did Skittles. My mom would mainly buy like Skittles and Starbursts and stuff. But I think when you'd meet, you know, when we'd fill up our baskets, there was usually a good chunk of chocolate that was in that bag.

[Kristin Schwab]

And so how is that Halloween treat shifting? What are we gonna see more of this year?

[Leanne Tun]

Yeah, so I spoke to some analysts who kind of study commodities in the candy and chocolate space. And one really interesting thing they said was that we're going to see less chocolate this year and probably next year, too. There's a couple of reasons for that. One thing is simply price cocoa. Prices for the price of cocoa commodities have gone up a lot in the last couple of years. And also there's just more interest in gummy and sour and chewy candies. And it's this interesting, like, cyclical chain of events where prices are higher for chocolate so consumers are less likely to buy them because they want to grab for something a little bit cheaper when it comes to a little sweet treat. But then also there's more options than ever because these confectionery companies are trying to diversify because chocolate is so expensive. So you're seeing more flavors, more varieties, more combination packs of candy than we may have seen in the last couple of years.

[Kristin Schwab]

Hmm. Who's, who's actually reaching for the gummy worms over chocolate? And what kind of gummies are we seeing?

[Leanne Tun]

Yeah, mainly it's Gen Z. And Millennials are opting more for the gummy candies. The older generations are still interested in chocolate and those are also kind of the consumers that are driving sales during this time of year. I mean, a lot of people in this demographic have kids or maybe are, you know, handing out candy or are interested in buying candy for their own, you know, adult parties. And, and you know, a lot of these companies are putting out, you know, specialty Halloween style candies. So we've already seen, you know, we've seen that with chocolate. I mean, there are special kinds of Kit Kats that are like green and Snickers that have fun decorations on them. But we're also gonna see Twizzlers that are shaped as little ghosts. There's gonna be new kinds of candy corn that are like autumn themed, sour patch that are of all different flavors of apples. Yeah, Very seasonal candies coming, coming from these gummy folks.

[Kristin Schwab]

I'm not a candy corn fan, I guess is where that noise was.

[Leanne Tun]

It's so divisive. Candy corn is divisive. Yeah.

[Kristin Schwab]

What do you do though, if you're Hershey's or a classic chocolate maker and that's your product and you have to deal with rising costs and still getting those things on shelves and into people's hands?

[Leanne Tun]

I mean, the thing is, with certain, you know, snacky foods, if consumers really like them, they're still going to buy them. I mean, even if they're a little bit higher, you're still going to reach for that if that's your favorite candy or sweet treat. But they've also, these companies have made a little bit of an adjustment. So some analysts that I talked to said that this year or next year we should expect to see just a little bit of a difference with the chocolates. So more chocolate coated items, more milk chocolate, because that requires less cocoa. Candies that have nuts in them will maybe have more than usual, something that kind of fill up the space that requires less cocoa, which then is a less price for these confectionery companies.

[Kristin Schwab]

Most important question Are you a chocolate person or a gummy person?

[Leanne Tun]

I'm a gummy person, so this is really working in my favor. I think that chocolate is just too sweet here. Specifically sour, sour candy is my vice.

[Kristin Schwab]

Jacqueline Peiser writing about Halloween candy in the Washington Post. Jacqueline, thanks again for coming on the.

[Leanne Tun]

Thanks so much for having me.

[Kristin Schwab]

This final nod on the way out today, back to jobs. Sadeep actually made a nod to this at the top of the show. The Bureau of Labor Statistics came out today with its monthly strike report. The report comes out a week before the unemployment report, and it showed that in October, at least 44,000 workers have been on strike. Of that 44,000, 33,000 are striking machinists at Boeing. That will of course, factor in to the unemployment report next Friday. Our theme music is composed by BJ Lederman. Marketplace's executive producer is Nancy Fargali. Donna Tam is the executive editor, Neal Scarborough is the vice president and general manager and I'm Kristen Schwab. Have a great weekend. We'll be back on Monday. This is apm. Got curious kids in your life. Your daughter, your nephews, your neighbor. We've got the perfect holiday gift. Smarty Pass. It's a membership to a whole suite of award winning, fun as heck podcasts about science, history and more. The New York Times made Smartypass a top pick for their gift guide this year, calling the podcasts Doldrum Destroyers. For just $45 a year, you get ad free episodes of shows like Brains on Smash, Boom, Best and Forever Ago, plus exclusive bonus content and more. Go to smartypass.org those curious kids will thank you.