In class, we discuss how consumers pay higher prices for candy and soft drinks because the U.S. government limits on how much foregin sugar we can import. Sometimes a student will claim that candy companies would not lower prices if the price of sugar declined. And sometimes that issue leads to a discussion of whether the candy industry is competitive.
The graphic above, and the quotation below, provide some relevant evidence.
(p. B1) The global confectionary industry has long lacked a dominant player. The top 10 manufacturers controlled just 47% of the $141 billion market as of 2006, the most recent available data. . . .
. . .
If the Wrigley acquisition is successful, Mars will become the world’s largest confectionary company with about 14.4% of the market, overtaking Cadbury’s 10.1%, based on 2006 figures, the latest available, from Euromonitor International.
For the full story, see:
JULIE JARGON and AARON O. PATRICK. “More Sweet Deals in the Candy Aisle?; Cadbury and Hershey in the Spotlight in the Wake of Mars-Wrigley Linkup.” The Wall Street Journal (Tues., April 29, 2008): B1-B2.
(Note: ellipses added.)