Business Notes THE YOUTH MARKET

Why do children take delight in things that grownups find gross? While most adults just sit and ponder this question, a few entrepreneurs cannily exploit it. Just in time for the back-to-school season, for example, is Spit-Wads, a synthetic "tossing dough." The sticky substance, thrown by hand rather than propelled through a straw, was invented by oil-refinery worker Ted Skup. "We got the idea at lunchtime. We were talking about the Pet Rock and things we could sell about $20 million worth of, and it just popped into my head." Skup and a partner started IQCO Inc., which sells packs of Spit-Wads for $1.29.

Even more gross is Barfo, a gelatinous goo manufactured by Topps, the bubble-gum company. The fruit-flavored candy is packed in squeezable plastic figures that extrude the substance through their mouths. Says a seven-year-old who savors the stuff: "When I think about it, it's disgusting." That alone should guarantee boffo sales for Barfo.