A mondegreen in a song from the Hamtaro anime gave birth to this prop. As the name implies, it is a combination of a bomb and a piece of candy.
It's also an attack item in the freeware RPG Dragon Warrior IV: Renaissance. This small firework, when thrown in the midst of a battle, causes nominal explosive damage to all opponents. Its effect is identical to the "Bang" spell, which can be learned normally by Dominick and Mara, but any other character except for Isod can learn it if he or she uses a Bang Scroll.
A variety of attack items are for sale in Konenber's street markets, and most can be purchased in packages of ten. However, the merchant who sells Bomb Candy will throw in an extra two for the price of ten, because "twelve is his magic number."