JELLY BELLY MOVES TO IN-HOUSE ADVERTISING

Move Follows First Agency-Produced TV Campaign

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NEW YORK (AdAge.com) -- A year after attempting its first TV ad campaign, the Jelly Belly Candy Co. has reorganized
Photo: Jelly Belly Candy Co.
A gigantic jelly bean greets visitors at the Jelly Belly headquarters and factory building in Fairfield, Calif.
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to eliminate the need for an outside advertising agency. It has also eliminated plans for further TV advertising.

In a sweeping move, the 133-year-old family-owned confectioner, previously known as the Herman Goelitz Candy Co., has also named a new marketing chief and beefed up its marketing department. Left out of the marketer's plans is the now defunct Clear Ink of Walnut Creek, Calif., the company's former agency and architect of its first TV effort.

$100 million in sales
"We're not using an agency, and we're not looking for an agency," said Pete Healy, vice president of marketing and international sales. The midsize candy company does approximately $100 million in annual sales, with $80 million of that attributed to Jelly Belly brand sales.

Headquartered in Fairfield, Calif., Jelly Belly has specialized since 1976 in the manufacture of gourmet jelly beans in 50 flavors including very cherry, green apple, cream soda, champagne punch and jalapeno. It is best known for scoring a major branding coup in 1981 when President Ronald Reagan publically identified its jelly beans as his favorite candy.

First TV campaign
In early 2001, as the older Herman Goelitz Candy

Watch one of the spots from last year's 'Show Your Flavor' TV campaign.
and Goelitz Confectionery companies where merged into it, Jelly Belly launched a campaign of cable TV ads created by Clear Ink. The spots had catchy music and fun visuals but made no mention of how the gourmet marketer's jelly beans differ from other jelly bean brands.

Jelly Belly senior management, including owner Herman Rowland, began overhauling the marketing department in January, first by parting ways with its director of marketing, John Harrington, and offering the top job to Mr. Healy, who had his longtime title of vice president of international sales and marketing transposed.

In-house effort for fall
Now, nearly a year after its first TV advertising effort aired and ended a short time later, Jelly Belly plans to reappear in consumer media this winter. With creative work and media buying done by a marketing department that now has 20 staffers, the new campaign will not include any TV advertising.

Although he characterized the results of the cable TV test last year as "pretty good," Mr. Healy said the company had no plans to return to TV advertising in the forseeable future. Instead, he said Jelly Belly will focus on creating its own print and outdoor ads to "more selectively target the audience we want to reach," namely teens and early 20-somethings.

Dozen new hires
The marketing department's reorganization has included nearly a dozen new hires, including Director of Marketing Mario DiFalco, whose tenure includes stints at Power Bar and Wm. Wrigley Jr. Co. Jelly Belly also tapped existing employees for new positions that utilize their strengths, for example, naming 13-year company veteran Debbie Lauderdale as advertising coordinator to spearhead consumer advertising initiatives including media buying and creative development.

The creative of the new Jelly Belly jelly bean ads that will break in the next three to six months will veer from last year's "Show your flavor" campaign, Mr. Healy said. He indicated the creative, which has not been finalized, will reflect the fun, variety and sophistication of the product. He also said the ads will reflect comprehensive package design changes set to roll out later this fall.

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