Updated on Saturday, May 05, 2007, 00:00 IST

New York, May 05: US dark chocolate sales are anything but bittersweet, as its much-touted health benefits and mass marketing introduced by companies such as Hershey Co. and Lindt & Sprungli Co. Plc. turn the product into a popular, guilt-free indulgence.

Dark chocolate sales increased 49 percent to $1.88 billion between 2003 and 2006, according to one study.

"It tastes good and at the same time people have the perception that it has added health benefits," said Marcia Mogelonsky, a senior analyst with research firm Mintel International, who authored the March 2007 study.

Analysts expect to see more competition in this segment, as more companies begin marketing dark chocolate through grocery stores and other mass outlets -- called the "mass" or "entry-level" premium chocolate category. Some companies are even beginning to market chocolate as a "health" food.

"Mass has been under-penetrated as far as dark and premium chocolate goes," said Mitchell Corwin, an analyst who follows the confectionery industry for Morningstar Inc.

"You're seeing more premium brands hit the mass retailers because that's where consumers are going in greater numbers and they are demanding higher quality products."

Bureau Report