Snack World - May 1, 2011 - (Page 14)

S TA T E O F T H E I N D U S T R Y R E P O R T Brands are Back Snackers return to their favorites — at the right price — but the economy still influences purchasing decisions. BY BOB GATTY D espite the lagging economy, consumers came home to their favorite snack brands in 2010, although their ability to find those products at a favorable everyday price was an important factor in their purchasing decisions. There was no doubt that economic concerns still weighed heavily on snack shoppers, according to the 2010 State of the Snack Industry report developed by SymphonyIRI Group and presented in March at SNAXPO in Orlando, FL, by Sally Lyons Wyatt, senior vice-president. However, as ingredient costs continue to rise, the ability to raise prices is still difficult — especially in an inflationary environment as retailers strive to attract a continued number of value-conscious consumers. Despite such pressure, several major players in the baking and snack industries have indicated they plan to raise their prices 5% or more in 2011 to maintain margins and cover rising ingredient costs, according to several recently published reports. 14 Snack World May 2011 That said, frugality still rules, even when it comes to snacks and impulse spending for these items. According to SymphonyIRI’s data, 42% of consumers are spending less on snacks, 30% are trying to make their household snacks last longer and are snacking less frequently, and 25% are eliminating unplanned snack purchases. Moreover, Ms. Wyatt said, the numbers show that consumers are still concerned about the economy and expect food and energy prices to increase, and their own financial situations to either worsen or not improve this year. That’s not good news for an industry that has seen significant growth during the past two years. Unlike earlier times, the ability to increase pricing in today’s environment is, in many cases, simply not available. In fact, the situation is just the opposite with price discounting in such categories as conventional potato chips and those other snack categories that are not perceived by consumers as premium items. BROUGHT TO YOU BY HEAT AND CONTROL, MANE, PRINTPACK, INC., AND J.R. SHORT

Table of Contents for the Digital Edition of Snack World - May 1, 2011

Snack World - May 1, 2011
Letter from SFA - Progress and Advocacy
Supplier’s Corner - Onward and Upward
Government Affairs - SFA on the March
Government Affairs - Change Ahead
State of the Industry Report - Brands are Back
For More Research on Snacks
Natural Chips Reign Supreme
Top Potato Chip Brands
TORTILLA CHIPS - Tackling Hot Trends
PRETZELS - Healthy and Beyond
SNACK CRACKERS - The More Healthful Snack
Top Pretzel Brands
Top Snack Cracker Brands
COOKIES - Decadently Healthy
CORN SNACKS - The Scoop on Corn Chips
Top Corn Snack Brands
SNACK NUTS & SEEDS - Investing in Innovation
Top Nut, Seed and Corn Nut Brands
CHEESE SNACKS - Say Cheese to New Snacks
Top Cheese Snack Brands
PORK RINDS - Still on a Fast Track
Top Pork Rind Brands
MEAT SNACKS - Meating High Expectations
Top Meat Snack Brands
READY-TO-EAT POPCORN - Expanding Indulgence
Top RTE Popc orn/Caramel C orn Brands
MICROWAVE POPCORN - Convenience and Health
OTHER SALTED SNACKS - Catch-all Segment Builds With Variety
Top Microwave Popcorn Brands
Top Other Salted Snack Brands
SALSA AND DIPS - Salsa Dips, Dips Rise
Top Salsa and Dip Brands
Innovative and Educational …
Earl Wise Sr. Enters Circle of Honor
Overheard at SnaxPro
Get Ready for SNAXPO 2012: Celebrating 75 Years
New Snacks
Products & Services
Ad Index

Snack World - May 1, 2011