ROANOKE TIMES 
                      Copyright (c) 1997, Roanoke Times

DATE: Thursday, February 13, 1997            TAG: 9702130015
SECTION: BUSINESS                 PAGE: B-6  EDITION: METRO 
SOURCE: KATHLEEN DAY THE WASHINGTON POST


THE PERFECT GOURMET SWEETENER `ONE EXCELLENT TRUFFLE IS BETTER THAN A WHOLE BOX OF LOW-END CHOCOLATES'

Hershey, Pa., may be losing its claim as the chocolate center of the United States.

This Valentine's Day, a new breed of chocolatier is putting San Francisco on the map as America's chocolate mecca. These chocolates are unlike traditional European-style gourmet chocolates such as Godiva or Neuhaus, which come in shapes and boxes that vary little from season to season. By contrast, San Francisco-based chocolate makers such as 14-year-old Joseph Schmidt Confections Inc., Alfred Schilling Inc. and Pandora's Inc. make thematic creations targeted to specific holidays and seasons.

Retailers say consumers can't seem to get enough of these boldly designed, gourmet confections that run upward of $25 to $30 a pound. That compares with traditional domestic Valentine chocolates - such as Whitman's Samplers - which cost less than $10 a pound.

Gourmet chocolates are the latest example of Americans' love affair with pricey, though still relatively low-ticket, gourmet fare, such as expensive coffees, ice cream, water and bread.

``Americans are becoming more sophisticated about chocolate and are willing to pay more for it,'' said Timothy Moriarty, managing editor of Chocolatier Magazine in New York. ``People are beginning to understand that one excellent truffle is better than a whole box of low-end chocolates.''

In upscale outlets such as Starbucks Coffee Co., Dean & Deluca, Nieman Marcus Co., Macy's and Saks Fifth Avenue, consumers are snapping up ingeniously designed items such as heart-shaped chocolate boxes filled with a half-dozen truffles or a large chocolate apple filled with chocolates shaped like the Statue of Liberty and other New York City landmarks.

The common theme is an eye-catching presentation. That's especially important at Christmas, which accounts for 48 percent of the $15 billion in estimated annual retail chocolate sales; Easter, which accounts for about 15 percent; and on Valentine's Day, which ranks third with 12 percent of annual sales, but boasts the largest single-day sale of chocolates of any holiday, even Mother's Day.

``The trademark of these chocolates is they are very visual; it's their form, color and design. It's very American and might not sell as well in other places,'' Alfred Schilling said.

Food consultant Joan Steuer, president of Chocolate Marketing Inc. in Los Angeles, said that while premium chocolates carry higher price tags, they are an ``affordable indulgence'' that even people on a budget can afford to spring for occasionally.

The appetite of American consumers, who last year ate about 11.5 pounds of chocolate each, appears to be headed upward in general. Chocolate sales rose 7 percent last year, outpacing sales of non-chocolate candy - which rose 5.5 percent - for the first time in several years, according to the Chocolate Manufacturers of America.

Retailers are listening. ``We're trying to make our stores chocolate destinations in addition to coffee destinations,'' said Laura Vida, associate buyer for Seattle-based Starbucks, who is in charge of buying chocolate and other packaged foods. She says Schmidt chocolates have fit well with Starbucks image of having a product with ``personality and atmosphere.''

Schilling and Trudy Kranz, co-founder of Pandora's, readily credit Joseph Schmidt, 58, with being the grandfather of the new thinking in high-end chocolate. He has changed the market with his signature truffles, which are large and egg-shaped and chock-full of blues, pinks and other colors, and with his beautiful, ever-changing boxes made of wood or chocolate.

Even traditional gourmet chocolate makers applaud Schmidt.

``Anything that helps educate consumers about why they should buy premium chocolate helps all of the gourmet chocolate companies,'' said Julie Davis Halpin, a spokeswoman for the 145-year-old Ghirardelli Chocolate Co. in San Francisco.


LENGTH: Medium:   79 lines
ILLUSTRATION: PHOTO:  DON PETERSEN STAFF. Kristi Carr, 19, of Troutville, 

looks for the right size of Godiva Chocolates for her parents on

Valentine's Day at Belk Department Store at Valley View Mall.

Retailers say gourmet chocolates are the latest example of

Americans' love of chic fare, such as expensive coffee, ice cream,

water and bread. color.

by CNB