Better For You Growth Expected To Continue

Chicago — Combining the notions that snacks have become popular fourth meal options and Americans are in search of healthy choices, both retailers and suppliers now have an increasing number of sales opportunities.

Between-meal eating is said to have grown by 16 percent during the past decade, according to Jill Manchester, Kraft Foods Inc. vice-president of immediate consumption. She presented these findings and more during the Better For You Snacking seminar at the ALL CANDY EXPO.

Manchester said snacking growth is expected to rise an additional 18 percent by 2018. She also offered data from Nielsen Strategic Planner LabelTrends that indicate sales growth of better-for-you products outpaced traditional products in 2008, rising 4.8 percent compared with 3.4 percent.

These increases were attributed to changes in lifestyles, which include busier schedules and fewer sit-down family meals, she explained. Some consumers now view snacks as a way to add nutrients such as fiber, antioxidants and omega-3 essential fatty acids to their diets, Manchester noted.

She urged retailers to develop new strategies to capitalize on this segment, suggesting they introduce front-end displays that exclusively feature healthy snacks.

When asked what products make up the better-for-you snack category, Manchester told the more than 150 audience members that consumers usually name fruits and vegetables, followed by chips, nuts and pretzels.

Consumers formerly sought out items that had an "absence of negatives" such as fat-free, sodium-free, cholesterol-free and sugarfree. They're now selecting products with the "presence of positives" such as added fiber, vitamin-fortified, heart healthy, natural and organic, she explained.

What's more appealing to retailers, Manchester said, is that this trend isn't specific to any demographic — better-for-you growth opportunity is present across all consumer segments.

The 35- to 64-year-old group, which she called the current bull's-eye for better-for-you snacking, are more interested in their diets than previous generations. Twenty- to 34-year-olds represent "the leading edge" for this product segment, according to Manchester, as they are in search of items that are easily portable, such as snack bars. The remaining segment, children through age 19, are "the first generation that will grow up with better-for-you snacking," noted Manchester. She claimed snacking is a natural eating pattern for them, and also suggested they are image-conscious — indicating they might be likely to seek out all-natural and organic items.

Consumers Reach For Natural Brands

Expanding on natural snacks, Michael Season, president of Natural Snacks, LLC, said the segment is beginning to infringe on mainstream outlets as consumers become more aware and accepting of natural brands.

Analyzing sales numbers from Spins, Inc., which provides natural product sales information, he reported 2008 dollar sales of natural food and beverage products rose 10 percent compared with 2007.

Gluten-free foods — which Season called a "super trend" — are becoming more popular because of the rising number of celiac disease sufferers. It is now estimated that at least one percent of the population has the disease, which interferes with nutrient absorption, and Season said more than 2,500 gluten-free products are in the current market to accommodate this growing demand.

Acknowledging the rising success of the segment, Michael Rosenberg, president, The Promotion In Motion Cos., noted the share of healthier snacks grew one point to 33 percent in 2008. To take advantage of the trend, he explained that targeting mothers and gaining their trust is crucial to success because they act as family "gatekeepers," and are increasingly concerned with what their children eat.

To attract mothers, he said packaging should boast the health benefits a product offers. Using his company's Welch's Fruit Snacks as an example, Rosenberg explained the packs feature claims including: "Made with Real Fruit," "100% Vitamin C," "No Preservatives" and "Fat Free," which he noted all resonate with mothers, and other consumers seeking healthy options.

And because solid brands are still vital to success, he said Welch's was an ideal partner because it already represented a trusted brand that boasts a natural and wholesome image.