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They say it's like a sugary morsel, the perfect snack, as sweet as a square of chocolate and just as addictive.

Hard to believe they're talking about a mass e-mail that arrives in their in-boxes every day. But that's what the in crowd says about DailyCandy, the free e-newsletter that since 2000 has given Web-savvy trend-setters and fashionistas in cities like New York the inside skinny on the best sales, new stores, emerging designers and all things hot in shopping, dining and culture.

Now, in a move that's got the cool kids buzzing, DailyCandy has come to Atlanta. The edition launched at the end of February and --- like its sisters in NYC, Los Angeles, Chicago, San Francisco, Boston, Dallas, London and Washington --- does not make its money by taking payment for placement in a newsletter. Advertisers' products are hawked in banner ads and in separate e-mails clearly labeled as advertising.

In this market, DailyCandy joins a growing number of publications designed to inform women of what's haute. But unlike new entrants like luxe lifestyle mag Atlanta Peach --- which was to be unveiled Friday night at a celeb-studded party --- DailyCandy isn't a glossy jockeying for a prime spot on your coffee table. The newsletters are bite-sized, typically no more than three paragraphs each.

This brevity, as well as the newsletters' bleeding-edge content, has helped attract more than 1 million subscribers to DailyCandy. About 60 percent are in the coveted 24- to 35-year-old demographic, the company says.

These readers don't just subscribe to DailyCandy, they obey it. When DailyCandy suggests a trip to Castor & Pollux, a Brooklyn boutique bedecked like an old-fashioned Bergdorf Goodman, or recommends the Ginger 13 line of shell, bead and freshwater pearl jewelry, readers pay attention.

"I always link to whatever they recommend. If there was a new restaurant and it looked good, I'd try to go," said Jennifer Babbit, a public relations executive who recently moved to Atlanta from New York, where she was "obsessed" with DailyCandy. "We did a program once for Rogaine, where we cut hair for Locks of Love. The minute it became a DailyCandy item, our phones rang off the hook. It's that influential."

That's attracted beaucoup advertising dollars to DailyCandy, pushing it into profitability in 2001. Founder Dany Levy went on to sell a $3 million stake to former America Online executive Robert Pittman. Now he's reportedly looking to sell DailyCandy for upward of $100 million.

DailyCandy is, by most accounts, a uniquely successful dot-com. Will Atlanta be yet another sweet spot? Levy won't discuss circulation totals or goals for this specific market, but said she's optimistic. The newsletters published so far haven't attracted as much advertising as DailyCandy's other editions, she said, but the product is new. That will come with time.

"We launch in cities that are coming into their own," Levy said. "Atlanta seems to be going through an interesting time right now. It's become more of a fashion hub than it was. Not to say it wasn't in the past, but it seems to be going through its own renaissance."

Already the newsletter has had an impact in the market. Breadwinner, a baking business in Atlanta, sold just 10 loaves of specialty bread when it started small at Souper Jenny restaurant. Within hours of the release of DailyCandy's March 1 newsletter, heralding Breadwinner's goodies, the baker sold 27 loaves over the phone.

"People had not even tasted the bread," said Tiffany Davis, DailyCandy's Atlanta editor. "DailyCandy definitely is powerful."

Maybe not Oprah-powerful but not too shabby. Julie Routenberg wants in.

"We're excited about the opportunity for it to be here," said the owner of Potpourri, an upscale boutique for women in Buckhead and Sandy Springs. "I've heard people talk about DailyCandy."

A recent Atlanta edition recommended Crave, a new "eclectic American" restaurant in the East Atlanta neighborhood. Another suggested a visit to the Kangaroo Conservation Center in Dawsonville. Another sang the praises of Susan Cohen's pet portraiture, available at Inman Park Pet Works in Atlanta.

White-hot news flashes? Maybe not. Some readers say the Atlanta edition still needs to find its footing.

"I think Atlanta is a very different city than New York. I think they're getting there," Babbit said. "They really need to get in touch with people who have lived in Atlanta for a while and are out on the scene, to get more new information."

Shannon Kitchens agrees. The owner of Sage, a women's clothing boutique with locations in Midtown and Buckhead, calls DailyCandy Atlanta "a great concept, but you can tell it's very new," she said.

"When I read other editions, they're more advanced," she said. "It's definitely a great concept for Atlanta. Once it builds, it will become something that could help small retailers."

At the helm of DailyCandy in Atlanta is Davis, a 23-year-old Atlanta area native who formerly worked as a freelance writer. To gather intel for her newsletters, she visits local stores and restaurants and maintains constant contact with publicists and other people-in-the-know.

The formula for her newsletter is the same as the others: a few useful paragraphs each day promoting food, fashion, art, culture or services, written in a voice that sounds like a trendy friend whispering in your ear. But Davis faces some particular challenges in putting out an Atlanta-based DailyCandy --- unlike New York City, Atlanta doesn't have sample sales and trunk shows and restaurant openings every weekend.

"I think that as time goes by we'll just learn to start covering things that are news in Atlanta that aren't necessarily literal openings," Davis said. "Maybe someone will start giving private chef lessons. Or a popular restaurant will start to deliver. Special events. Those are still great stories, still things people would want to know about."

Dedicated DailyCandy reader Babbit believes the Atlanta newsletter has the potential to become as habit-forming as the company's other e-mails.

"Since it started in Atlanta, every day I've forwarded it along to someone I thought would find it interesting," she said. "There are so many restaurants, bars and shops opening. Nobody can keep up with it. I think this is a perfect thing for down here. And I think it's exciting for the city that these types of outlets, focused on big, hot cities, are now coming to Atlanta and taking notice."

DAILYCANDY
> Product: Publishes free daily e-newsletters focusing on trends, openings and other hot stuff in nine major cities, including Atlanta. Also offers an "everywhere" newsletter and one geared to parents.
> Founded: 2000 by Dany Levy (above), a former journalist
> Headquarters: New York City
> Employees: About 35
> Subscribers: 1.2 million
> Credo: "We make it very clear what is paid for and what isn't," Levy says. "If we write about a restaurant opening or a baker, that person is not paying and can never pay to be in DailyCandy. It's very church and state."
Source: Company information