AMC is hoping to take a bite out of its overhead costs by launching its own line of branded candies to sell in theaters.
Adam Aron, the chairman and CEO of AMC Theatres, revealed the news in an earnings call last week, saying the plans were prompted by the rising cost of supplying brand-name candy in AMC’s multiplexes.
“We noticed recently, as a result of pandemic and the supply chain shortages, that candy manufacturers had increased their price to us by a huge amount,” Aron said. “Some candy makers increasing their cost for candy — wholesale candy — as much as 33% in a one-time bump.
“That got us thinking very hard about our candy,” Aron continued. “And we realized that we could manufacture a private-label brand of candy to very high quality standards, price it less expensively than our current candy is priced, and have a higher profit margin because our cost to manufacture the private-label brand is so much less than the normal brands that you’ve seen in our theaters for years.”
Aron did not detail which candies, specifically, would be produced for AMC’s in-house brand. In his remarks, however, he hinted that AMC’s efforts would result in “a private label brand of popular candies.”
AMC’s in-house candies are expected to debut at the chain’s concession stands sometime in late 2023-early 2024. The name-brand candies currently sold at AMC’s concession stands will continue to be available for customers who prefer it, Aron said.
A representative for AMC did not immediately respond to a request for additional details.
Earlier this year, AMC also launched its own line of microwave and ready-to-eat Perfectly Popcorn products, exclusively available at Walmart. The company’s deal with Walmart, however, is expected to expire later this year, at which point AMC hopes to make its popcorn products available at other retail outlets.
Aron claimed sales of the product were “brisk.”
“We think that our home popcorn is going to turn into a substantial business for AMC,” he said during last week’s earnings call.