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The Sweet, the Salty, the Alternative
A number of innovative products are debuting in the sweet, salty and alternative snack food categories.
by Lisa White
Today’s society is more mobile than ever. From the ubiquitous cell phones to laptop computers, consumers are all about convenience, efficiency and portability.
This also is the case in the snack segment. Not only are c-store customers looking for quick and easy foods that can be eaten on the go, but they also are focusing more on innovative flavors, healthy profiles and unique products.
Manufacturers are responding, with a bevy of products geared for the c-store segment in the sweet, salty and alternative snack food categories.
Salty and Savory
Where snacks are concerned, nuts are big business. The U.S. grew about 4.1 billion pounds of peanuts during the 2003-2004 marketing year. The average American consumes more than six pounds of peanuts and peanut products, primarily peanut butter, each year. In addition, world cashew production has doubled in the last decade.
Once mainly used for baking, walnuts also have become a popular snack food in recent years. Almost all of the walnuts in the United States are produced in California, which grows an average of 303,000 short tons annually.
Stockton, CA-based Diamond Foods, producer of Emerald of California snacks nuts, offers a variety of larger, premium quality nuts from walnuts and pecans to peanuts, cashews and almonds, as well as sweet and savory glazed nut combinations. All are packed in emerald green 4,5-oz. on-the-go plastic canisters or recloseable, metallized bags.
According to spokesman Greg Perkins, the company is in the process of introducing chocolate brownie glazed walnuts in a recloseable pouch and dry roasted walnuts in a canister. "We also are working on a trail mix item for 2006," he says. The details on this product were unavailable at press time. "This will be very different than what is currently out there. We will have three SKUs that will be more upscale and offer a different flavor profile."
Perkins says his company sees growing opportunity in the c-store sector for these lines. "We feel there is great opportunity in the snack nut arena that has not been capitalized on by other players. While we offer salted peanuts, cashews and mixed nuts, we have a unique lineup of SKUs from both a product and a packaging standpoint," he says.
Diamond’s glazed nut line has done particularly well in c-stores. "More than a third of our business is from our glazed nut lines. Close to 40 percent of sales are from items like Apple Cinnamon Glazed Walnuts ‘n Almonds, Pecan Pie Glazed Pecans and Butter Toffee Glazed Walnuts," says Perkins.
Spicy nuts also have grown in popularity, according to Tom Foster, head of new business development for Beer Nuts Brand Snacks in Vernon Hills, IL. The company plans to introduce a hot and spicy line in 2006, which will join its original peanuts, cashews and almonds. "We are targeting 21- to 29-year-old males, who we’ve found are the largest salty snack purchasing group," he says.
In 2005, the company partnered with The Miller Brewing Company on national tie-in campaigns. "These provide a natural synergy with our brands. We found that 44 percent of c-store consumers who purchase beer also purchase a salty snack. For this reason, we offer the trade a gravity feed display that is multipurpose. It can be merchandised at the counter, on a shelf, or affixed to a wire rack, cooler door or on a beer stack," says Foster.
Beer Nuts Brand debuted its Beer Nuts in a Beer Can in June of 2004. "The response to this introduction exceeded our expectations. Our analysis is that today's c-store on-the-go consumer would respond to our unique packaging that provided both pourability and portability," he says.
Foster identifies two trends in the snack food segment. "First, because new products are the lifeblood of this segment, we are close to introducing two new items in the Beer Can that we sampled at the NACS Show. Also, because today's consumers eat fewer sit-down meals and snack more often, for snacks to be successful they must meet the needs of the on-the-go consumer," he says.
Like Beer Nuts’ products, Blue Diamond Growers’ almond lines are geared for quick, on-the-go consumption, according to Al Greenlee, marketing manager. "We offer small, 4.5-oz. canisters and 1-oz. foil packs, in addition to 1.5-oz. tubes," he says.
In addition to Smokehouse, Roasted Salted and Whole Natural almonds, the company recently introduced bold-flavored almonds, including Maui Onion and Garlic, Chili and Lime, Jalapeno Smokehouse and Wasabi flavors in 2005. "They offer a robust flavor profile geared to c-store shoppers and men in particular," says Greenlee.
Although historically almonds were not big sellers in c-stores, they are now becoming more popular due to new flavor profiles, says Greenlee.
Like Foster, Greenlee is seeing robust flavors as a growing trend in the nut arena. "Consumers are going to extremes with either a robust flavor profile or a traditional plain nut," he says.
Blue Diamond’s end cap display pieces, called ‘side kicks’, can be placed at the end of a rack so they hang off the floor. The company also provides retailers with merchandising racks, including single box racks that can be suction-cupped to the glass of refrigerated cases.
Like nuts, sunflower seeds provide healthful snacking. These products are a source of antioxidant vitamin E, folate (folic acid) and other B vitamins and minerals including copper, magnesium and selenium.
Early in 2005, Spitz Sales in Canada launched Spitz To Go, a paper-wrapped spittoon for its sunflower seeds. "We are currently seeing stagnant sales for traditional flavors and more interest in unique varieties. Consequently, Spitz is launching two new sunflower seed flavors—Chili Lime and Smoky Barbecue," says Chris Tamillo, national sales manager.
The company also recently debuted a new ‘two for $1’ line and will introduce a sports bucket this spring. "Our demographic is 14- to 28-year-old males, similar to the meat snack consumer profile. As we’ve seen an increase in meat snack popularity over the last five years, sunflower seeds have fallen in line with that trend," says Tamillo.
Another sunflower seed producer, Giant Snacks in Wahpeton, ND, is introducing barbecue and salt and pepper varieties in 2006. Jason Schuler, regional sales representative, also sees an increased interest in flavored seeds. "We launched our dill pickle flavor last year, which has been a big hit," he says.
Tube packaging also is a trend, due to its portability and convenience. "However, our 6.5-oz. bag is the number one seller. Because space is the biggest factor in c-store merchandising, we offer racks or quick ships and have two racks that interact as one," says Schuler.
A newer nut provider in this category, Hooters Quality Snacks in Denver, CO, will introduce a new nut line this winter, according to John Ozello, director of sales. "This will include hot wing flavored and regular salted nuts in canisters and tube packaging," he says. The company also offers Hooters brand potato chips and Tony Roma’s Kettle Style potato chips.
While the Hooters brand markets toward the mature consumer, Chuck E. Cheese focuses on kids, and its potato fries snack line in Pizza, Cheese, Tangy Madness and Potato flavors are designed to appeal to this lucrative demographic. Offered by Taste of Nature in Beverly Hills, CA, in conjunction with Brooklyn, NY-based Rolet Food Products, this snack is made with real potatoes. Each package also features a coupon that is redeemable for $2.50 worth of tokens at any Chuck E. Cheese location.
Sweet snacking
While salty snacks have seen a surge in innovative and robust flavors, sweet snacks have taken a turn toward health.
For all those who resolve to eat a nutritious breakfast in 2006 but crave something sweet in the morning, Quaker Oats, headquartered in Chicago, IL, has introduced Quaker Breakfast Cookies. Made with whole grain Quaker Oats, each soft and chewy cookie provides 5 grams of dietary fiber and is a source of calcium and iron. "Quaker Breakfast Cookies are a great choice for people who typically reach for a 'sweet' snack before lunch, but don't want to compromise on nutrition," says Ann Mukherjee, vice president of marketing for Quaker Snacks.
Available in two varieties -- oatmeal raisin and apple cinnamon -- each cookie provides nutrients and vitamins such as vitamin A, vitamin E, thiamin, riboflavin, niacin and vitamins B6 and B12. A box of six cookies has a suggested retail price of $3.29.
Although Hershey’s, based in Hershey, PA, is known for its candy bars, the company’s Snack Barz line focuses on consumers who are geared toward healthful eating. According to spokesperson Stephanie Mortiz, this line was recently extended with the addition of Caramel and Cookies & Crème varieties.
Hershey’s also will debut its Sweet & Salty Granola Bar line in the first half of 2006. "The snack bar category is being driven by the consumer’s desire for new flavors, textures and tastes," says Moritz. "As consumers continue to focus on convenience, nutrition and taste, we believe that the snack bar category will continue to drive growth in the total snacks category."
She adds that the pouch/peg packaging is continuing to show growth. "We have utilized Bonus Box packaging behind the Snack Barz platform to gain incremental merchandising," says Moritz.
Another healthier snack food option is biscotti, and Central Italian Company of St. Clairsville, OH, offers a 12-in.-long, handmade line that is soybean-based. Produced with unbleached flour, eggs, cane sugar, soybean oil and natural flavors, this line is available in 20 flavors.
Omaha, NE-based ConAgra Foods, maker of Slim Jim meat snacks, addresses the healthy snack food segment with a number of lines under its Orville Redenbacher’s brand, says Garth Neuffer, senior director of product public relations.
Orville Redenbacher’s Smart Pop® kettle corn mini bags help consumers control portion size by offering single-serve sizes. The bags are 100 calories per serving and 94 percent fat free, offering two servings of whole grains. "People see today’s dietary guidelines and want whole grains," says Neuffer. The Smart Pop line also offers organic popcorn.
ConAgra Foods recently introduced the Orville Redenbacher’s ‘Pour ‘N Pop’ Popcorn System to c-stores. The system, which includes pre-measured popcorn, oil and salt in one package, is designed to be fresh-popped in the store and sold by operators or used as a free giveaway, in either 1-oz. paper bags or 8-oz. poly bags.
"We are addressing three trends with our new products," says Neuffer. "These are taste, convenience and nutrition."
Just like healthful products, innovative lines also have impacted the sweet snack segment. For example, SkylarHaley of Pleasanton, CA, has introduced what the company claims is the first microwavable donut. According to Jeremy Smith, director of public relations, this line was created for consumers who want to bring the donut shop experience into their home. "We want to capture the convenient snack segment, not just the breakfast market, with this product," he says.
The donuts can be prepared in the oven or microwave with or without the glaze that is included. Suggest retail price for a 3-oz. two-pack is $1.39, and $3.99 for a 9-oz. six-pack.
Alternative snack options
Energy bars are the newest entrant in the snack category geared for consumers looking for a healthful snack alternative. This product was originally developed for high-performance athletes who need extra carbohydrates to replenish energy stores. Now, energy bars have gained popularity among the general population.
According to Researchandmarkets.com, the consumer market for nutrition and energy bars in the United States was $838 million in 2004, excluding sales through Wal-Mart, growing 169 percent between 1999 and 2004. It is one of the fastest growing food categories, benefiting from consumers’ interest in low-carb foods, desire for healthier snack and meal replacement alternatives, demand for portable snacks and meals and general nutrition and fitness needs.
Introduced in 1992, Clif Bars are available in 14 flavors and are made with 70 percent organic ingredients. Its newest variety, CLIF Nectar™, is an organic fruit and nut bar that provides two servings of fruit. It contains no trans fats, processed sugars, additives, soy, wheat, dairy or gluten. The lines comes in four flavors – Dark Chocolate & Walnut; Cinnamon Pecan; Lemon, Vanilla & Cashew; and Cranberry, Apricot & Almond.
Clif Bar also has re-launched its MOJO Bar“, which was introduced in 2002. The bar is now made so it stays crunchy, but also has a softer, moister and chewier bite. Combining salty and sweet tastes with all natural ingredients, MOJO Bars are still made with all-natural ingredients, including roasted peanuts, whole dry roasted mixed nuts and organic peanut butter. Each bar has eight to 10 grams of protein and natural vitamin E, an antioxidant.
The improved bar features two new flavors, including Mountain Mix™ and Fruit Nut Crunch, in addition to original varieties Honey Roasted Peanut and Mixed Nuts. MOJO Bars’ new packaging portrays images of its ingredients and a unique vertical layout.
In addition, MOJO Bar contains eight to 12 grams of sugar, depending on the flavor, and has 190 calories to 200 calories and no trans fats.
In 1996, the HooAH! Energy Bar was created by the Department of Defense Combat Feeding Directorate at the U.S. Army Soldier Systems Center through a Cooperative Research and Development Agreement (CRADA) with M&M Mars to increase energy and improve the performance of soldiers during intense military operations.
Last year, D’Andrea Brothers in Los Angeles, CA, approached Combat Feeding to produce the bar for commercial sales, which had been unsuccessfully attempted in previous years, as a way to widen its distribution. A federally registered trademark of the Army, HooAH! was licensed by D’Andrea Brothers and made available to consumers at the end of 2004.
According to Mark D’Andrea, president of the company, energy bars have become more mainstream, with many office workers using them as meal replacements as well as snacks. "In 2004, when we were working with the military, everyone was telling us the bars had to have low carbs. Our bars have 40 g of carbs to offer added energy. We bucked that trend and it worked out," he says.
The company offers point-of-purchase displays and floor stands with a camouflage motif that each hold 90 bars. HooAH countertop displays that hold 30 bars also are available.
Like energy bars, beef jerky is another popular alternative snack item. Jerky has more than doubled its market size since 1997, according to Mintel International Group of Chicago in its recent "meat snack" report. Mintel attributes the increased popularity to an improved image, the relative lack of fat and the current national infatuation with low-carb diets.
CorBranz Marketing Groups, headquartered in Conshohocken, PA, recently introduced a 4-oz. size to-go bag for its Chubby Checker brand beef jerky. According to Mark Davis, president, "Other guys are using big bags, and we decided, from a retailer and consumer standpoint, that there were more advantages with smaller bags. For retailers, this offers more merchandising options because the bags take up less space. From a consumer perspective, these bags are more portable."
CorBranz Marketing offers retailers a comprehensive display program, including clip strips, counter displays, floor stands and ‘power wings’. "We also do pallet programs with signage and incorporate this with bringing singer Chubby Checker into stores for promotions," says Davis.
According to Jay Hersch, president at Reston, VA-based Highland Beef Farms, the company will introduce a 5-oz. package for its Deli Bite beef jerky line, which consists of traditional deli sticks broken up into smaller pieces. "It will be a gas-flushed bag," he says. Current flavors include Hot Beef, Deli, Pepperoni and Honey Pepper Turkey.
Hersch says the company will focus on its kippered product in 2006. "We’re the only company that offers kippered turkey," he says.
Snack food giant General Mills, based in Minneapolis, MN, recently introduced Chocolate Chex Mix, which, according to Convenience Stores Marketing Manager Nicola Dixon, is one of the company’s most successful product launches ever in c-stores. "In terms of flavor ranking, Chocolate Chex Mix is as big or bigger than Cheddar Chex Mix in terms of unit sales," she says. The line is available in Turtle and Peanut Butter varieties.
This new line comes on the heels of Nature Valley Sweet and Salty Bars, which debuted in 2004. The chewy granola-based bar is topped with peanuts and almonds and features a coated base and string icing. To assist c-stores with impulse purchases, General Mills has recently completed an overhaul and redesign of its Nature Valley packaging. "Our packages leverage images and iconography more than words to provide consumers with appealing flavor cues," says Dixon, who adds that this format makes the packaging more appealing to bilingual consumers.
In addition to offering floor-based shippers and counter displays, General Mills has developed a new way to offer c-store retailers with merchandising support. "We have invested much of our time and resources to that which is most relevant to c-store consumers, looking at their lifestyles and habits. We identified that movies are of high relevance. As a result, we have developed pack promos on our packaging and pouches. With our Chex Mix brand, each bag provides consumers with a coupon for a free movie or video game rental from Hollywood Video," says Dixon.
She is noting a significant trend in the snack segment. "We are seeing confection companies attempting to extend their offerings with grains and snack bars, and companies with grain-based products offering more indulgent, sweet snacks," says Dixon. "Because of this category’s size, we think it is important for c-store retailers and wholesalers to have a category management strategy."
Richard Rodriguez, director of General Mills’ convenience store solutions team, says the company has identified the c-store channel as a place for strategic growth in snacks. "We have a team specifically focused on this retail channel, because it is different from all others," he says. "We have continued to conduct research around c-store consumers to see what we should bring to the industry from a product, packaging and promotional standpoint."
With the varied and unique snacks being offered in the salty, sweet and alternative segments, there are increased opportunities for c-store operators to take advantage of this lucrative and burgeoning market in 2006.
Lisa White is a food industry writer based in Cary, IL.
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