New Generation of Snacks
Packed with Nutrition
By John Karolefski
Food makers are producing a new generation of snacks for consumers who are looking for chips, peanuts and bars that contain ingredients beneficial to health, or at least not harmful to it.
So, you won’t find saturated fat or trans fat in these new age snacks. Many of them are even packed with vitamins, herbs and “good” bacteria to promote good digestion and heart health. The most successful of these products taste good, too – an essential factor to consider for consumers deciding which snacks to buy.
“The consumer is propelling the market,” said Rally Ralston, managing partner of Salba Smart Natural Products, a maker of chips and pretzels. “The public is screaming, ‘Give us better products.’ Anybody can create something that tastes good. We can add sugar or corn syrup. But there are other choices. The natural and organic markets have been growing by leaps and bounds.”
Indeed, retail sales of functional foods and beverages are expected to reach $33 billion this year, according to some industry estimates. Healthful snacks are a growing and evolving sub-category of these functional products.
“We’re seeing snacks that either deliver specific health benefits like Kraft’s LiveActive granola bars and/or are positioned as healthy products such as Dove’s CocoaXia line of chocolates,” said Denise Lee Yohn, a marketing consultant based in San Diego.
“The trend reflects changing snack ‘need-states’ which is a state of demand that resides at the intersection of a consumer’s attitude and the eating occasion; for example, to acquire energy for a pending workout, to escape boredom, to reward themselves, to relax and unwind, etc,” she said.
While many of the makers of these snacks are small- to mid-sized companies, the food giants are also part of the emerging market. For example, Frito-Lay sells Flat Earth Baked Veggie Crisps that contain a half serving of real vegetables in every ounce. Kraft Foods, marketer of the iconic Planters brand of peanuts, has expanded its portfolio with NUT-rition in a can that contains peanuts, almonds, pistachios, pecans, walnuts and hazelnuts. The label boasts “a heart healthy mix {that} may reduce the risk of heart disease.”
Kraft recently launched LiveActive Chewy Granola Bars to promote digestive health. The bars contain a live probiotic culture that aims to replenish live cultures in the digestive system and promote good health. It is the first nationally available probiotic snack bar that doesn’t need to be refrigerated.
Another company marketing probiotic snacks is Attune Foods which recently introduced Chewy Chocolate and Peanut Butter & Chocolate granola bars. The San Francisco-based company offers 10 varieties – six granola and four chocolate – packed with probiotics to support digestive health and boost immunity.
“Digestive health is becoming an increasingly important part of daily health for adults and kids alike – especially as kids return to school and our frantic lifestyles mean eating on the run,” said Rob Hurlbut, CEO of Attune Foods.
The bars are stocked in the refrigerated section of more than 4,000 retail stores, including those operated by Safeway, Whole Foods, Publix, H-E-B, Wegmams, Hannaford, King Sooper and Giant Eagle.
Salba Smart Natural Products in Denver offers a full line of snacks is made from the Salba grain, a rich whole food source of Omega-3 fatty acids and fiber.
“Ounce for ounce, whole Salba grain provides three times more iron than spinach, 15 times more magnesium than broccoli, and six times more calcium than whole milk,” said Ralston. “Salba grain is the only food that is part of each of the six groups of the USDA Food Guide Pyramid. We have made it easy for parents to incorporate this essential food into their children’s diet with Salba products that meet the demands of busy, on-the-go lifestyles.”
Salba Smart’s products include: 100-calorie Bite Size Organic Tortilla Chips (0.7oz); All Natural Whole Wheat Tortillas (10.5oz, 12.4oz, 20.8oz); and Pretzels made with organic flour in Sticks (7oz) and Thin Twisted (7oz). Its Whole Grain (12.7oz) and Ground Salba (6.4oz) can also be added to everyday foods such as cereal, pancakes and smoothies.
Salba Smart can be found at Whole Foods Market, Wild Oats, Wegmans, Vitamin Cottage, and other natural foods stores.
Genisoy Food Company, a maker of soy protein products, offers a line up that includes bars, shakes, powders, soy nuts, trail mixes, soy crisps, potato soy crisps and low-carb bars. The company uses only non-GMO (non-genetically modified organism) soybeans. Also, the snacks include the same soy protein proven to reduce the risk of heart disease by lowering blood cholesterol.
Arguably the most demonstrative packaging for the new generation of snacks is the deluxe microwave popcorn from Smart Balance. On the box are the following in bold letters: No Diacetyl Added, No Trans Fats, Low Sodium, Low Fat, and Non-Hydrogenated. There is also an advisory from the American Heart Association that reads, “Meets American Heart Association food criteria for saturated fat and cholesterol for healthy people over age 2.”
What’s next for healthful snacks?
“Expect to see more vitamin-enhanced products and more unusual or exotic flavors; for example, mango ‘potato’ chips,” predicted Yohn, the marketing consultant. “Beyond product innovation, we will also see the positioning, advertising, and packaging of snacks become more overt in reflecting and appealing to different need-states.”
Market Watch
Snack Consumption Rising
Among Many Age Groups
By Rose Anthony
The consumption of snacks – whether good or bad for overall health – is a behavior that is rooted in the daily routine of American lives, according the Snacking in America 2008 report by The NPD Group. Findings show that after experiencing a period of decline between 1996 and 2002, the habit of snacking has grown steadily. It is forecasted to grow 14% by 2017.
NPD finds that consumption of snack-oriented convenience foods – whether eaten between meals as or along with meals, or as a meal replacement – is growing among kids ages 6 to 12, but declining among adults 55 and over. The report shows the greatest drop in consumers aged 18-34. By 2017, NPD projects kids under 9 and adults ages 30-39 and 50-59 will account for the largest number of snack eaters.
The exact time when consumers snack is also changing, according to the report. Most snacking still occurs in the evening at home, but that habit is declining. Morning snacking has shown the strongest growth, and snack foods replace more breakfast meals than other meals. Snacking in the afternoon continues, but remains stable. The report also found that most snack-oriented convenience foods, such as potato chips, are eaten between meals. But those items are increasingly finding their way into meal times as accompaniments or replacements.
Other snack findings show that fruit is the top food eaten between meals anywhere and consumption is up from five years ago, driven by more at-home consumption. Cookies, candy/gum, ice cream, and chips round out the top five items consumed between meals anywhere. Also, most snack foods are purchased more than a day ahead; just one in ten are bought within 30 minutes of consumption
Natural & Organic Sales Steady
Despite the economic slump that all product categories currently face, natural and organic foods and beverages are still going strong, according to the “Natural and Organic Food and Beverage Trends in the U.S.” The report from Packaged Facts says the impressive sales growth of organic and natural products did slow down within the last twelve months.
According to Packaged Facts, organic and natural sales rose by 18.5% between 2006 and 2007, and will rise 17.1% this year to total $32.9 billion. Packaged Facts predicts strong single-digit growth for natural and organic foods and beverages through 2013, with sales reaching $48 billion.
Fair Trade Not Maxed at Retail
Retailers could be losing sales because they aren’t stocking enough Fair Trade certified products to meet consumer demand, according to a study from Alter Eco Fair Trade in collaboration with six universities. Findings show that over 70% of consumers surveyed are familiar with Fair Trade.
Data also suggests that the Fair Trade market to be fragmented, with little name recognition for the small independent companies that have driven Fair Trade since the movement’s beginning.
SEPTEMBER 2008
Clorox and Kettle Foods Receive
Awards for Innovation and Creativity
By Rose Anthony
The Clorox Company and Kettle Foods have received the 2008 CPG Awards for Innovation and Creativity from the Grocery Manufacturers Association (GMA), in conjunction with the members of its Associate Member Council (AMC).
The award, now in its sixth year, is given to companies that have demonstrated uncommon creativity and innovation, and have made a significant contribution to the knowledge base of the CPG industry.
In a change from previous years, in 2008 GMA evaluated award applications in two divisions, bestowing one award to manufacturers with total sales below $1 billion (Division A) and one award to manufacturers with total sales of $1 billion or more (Division B).
The Clorox Company received the honor in Division B for the conception, development and launch of its Green Works line of natural cleaners. The product marks the first new Clorox brand in more than 20 years. Within two months of the launch date, it doubled the size of the natural cleaning category and brought effective, affordable natural cleaners into the mainstream marketplace. Among its numerous tactics, Green Works’ marketing effort resulted in prominent TV coverage on shows like “Ellen” and “Oprah;” gained support from the Sierra Club; and collaborated with retail customers such as Safeway and Wal-Mart in product development and in-store promotion.
“From day one, our objective for Green Works natural cleaners was to deliver a line of affordable products that are good for consumers, good for retailers and good for the environment,” said Clorox Chairman and CEO Don Knauss. “We are extremely pleased with the positive response. Green Works products continue to track significantly ahead of expectations, and receiving this award is icing on the cake.”
Kettle Foods took the Division A award for its now annual “People’s Choice” campaign in which consumers can purchase and vote online for the new chip flavors they want Kettle Brand to introduce into the market. The campaign, which exists almost exclusively online, marries consumer engagement, public relations and product development into one program that to date has been executed with very low input costs. Among the returns on this nominal investment have been more than 11,000 new business leads, more than 7,000 new flavor suggestions, and 75,000 unique Web site visits.
“‘The People’s Choice’ promotion taught us that it is essential to be authentic to your brand,” said Michelle Peterman, vice president of marketing. “Kettle Foods is a smaller company with a beloved brand. We capitalized on those qualities, which ultimately allowed us to fill a gap in our product offering, generate valuable earned media and foster significant brand engagement.”
The official awards presentation will be made at the GMA Merchandising, Sales and Marketing Conference, Sept. 21-23, in
St. Petersburg, Fla.
“We are thrilled to be honoring these most-deserving winners who represent the best of the CPG industry,” said AMC CPG Award Subcommittee Chairman Peter Brandt of SAP. “Clorox not only developed a superior product with a challenging set of criteria, but also did everything else right – from their comprehensive marketing campaign that included various forms of viral marketing and social networking to collaborating with retail partners to yield remarkable business results. Kettle Foods’ ‘People’s Choice’ campaign is an impressive model for building brand loyalty and engaging consumers to better serve them, accomplished in a way that was very cost-effective for the company and compelling to the consumer.”
Market Watch
‘Ethical’ Drinks Cater to
Concerned Consumers
By Lynne Cooke
Here come more “ethical” drinks, according to a forecast from Productscan. Whether carbon neutral, ethically packaged or with a charitable core, beverage companies are looking to increase market share by catering to the “ethical” principles of consumers. .
The Monarch Beverage Company has introduced Acute Fruit 100% Juice Energy Drink, which is said to be carbon neutral. Available in orange passion fruit flavor, the energy beverage has been launched in partnership with the Carbonfund.org, an organization that helps companies to offset their carbon emissions. The beverage is seen as the first of many more products that will be marketed based on their small carbon footprints.
Another “green” beverage is Blue Lake Citrus Products. The Noble 100% Pure All Natural Juice is reportedly the first juice brand to be packaged in a bottle that is made from all-natural renewable resources, namely Ingeo and EarthFirst PLA film, which are both corn-based. For those consumers increasingly concerned about the use of non-renewable, oil-based plastics, the new packaging could be a renewable alternative.
PurBlu Beverages has launched the Give Natural Spring Water, a bottled water that donates 10 cents to the charitable cause of the consumer’s choice for every bottle sold. Drinkers can decide which cause to support by selecting any one of three vibrantly colored bottles. They include Life (to children in need), Hope (to women with breast cancer) and Love (to the environment). Although charitable tie-ins are nothing new for consumer packaged goods, what makes this one different is that consumers can decide which charity they want to support by purchasing different varieties in this line.
Nestle has introduced the Nescafe Body Partner Complete Coffee Mix in the Philippines in three flavors: Relax, Lingzhi and Protect. Relax is a decaffeinated coffee infused with chamomile, Lingzhi is a coffee with Ganoderma mushroom extract, and Protect is a 100% pure instant coffee that is said to have three times more antioxidants than green tea. Although they all have a novel health positioning, the Lingzhi variety is especially unusual in that it contains Ganoderma mushroom extract, which appears to be a very novel ingredient for the coffee market.
Natural Pet Food Surges
Propelled by consumer safety concerns following the spring 2007 pet food recall, pet food makers that sell through natural supermarkets have seen double-digit sales growth over the past year, according to a new report from market research firm Packaged Facts.
The study found that retail sales of pet products through natural supermarkets totaled $77.2 million for 2007, up 22% over 2006, when sales rose 13%. Cat food posted the highest rate of growth during that time, at 28%, followed by dog food at 25% and pet supplies at 19%. According to Packaged Facts, natural pet product sales grew 41 percent in 2007 to reach $1.3 billion, with double-digit annual percentage gains predicted through 2012.
Energy Drinks Bubbling
The energy drink market has grown more than 400% since 2003 with consumer demand poised to drive continued growth in coming years, according to a study by market research firm Mintel.
In 2003, only 9% of adult respondents to Mintel’s survey said they drank energy drinks. In 2008, the figure was 15%. The number of product launches in the segment has grown to meet the demand. Mintel tracked just 80 new U.S. energy drink launches in 2003. In 2007, that number grew to 187; and already in 2008, more than 270 new energy drinks launched in the U.S.
Nutritional Supplements Stronger
The market for vitamins, minerals, homeopathics, and herbals will increase by 39% between 2008 and 2012 to reach $8.5 billion, according to a new study by market research firm Packaged Facts. Despite today’s challenging economy, the nutritional supplements market is growing rapidly to jump 5% in 2006 and 8% in 2007 after sluggish growth in 2004-2005.
The report reveals that reinforcing the category is consumer perception of seeing vitamins and supplements as a key component of a preventive health care regimen, along with products that target a specific health condition (accounting for 1/3 of category sales). The remainder is occupied by age-related treatments, gender- and kid-targeted products and supplements that capitalize on food and beverage trends.
