Snack World - May 2013 - (Page 30)

STATE OF THE INDUSTRY REPORT Bars Raising the Bar Bars continue the category’s long-running winning streak, despite intense competition from sport drinks, energy beverages and protein shakes for today’s active consumers. Breakfast, nutritional and granola/snack bars also battle for share of stomach against cereal in the morning and indulgent snacks such as cookies and candy during the day. According to SymphonyIRI, overall bar sales rose 3.2% to $2.83 billion, but there are winners and losers within this diversified category and among the various brands companies roll out to react to the latest health fads and lifestyle trends. Leading the charge is the nutritional bars segment and its bevy of protein-filled offerings with sales up 13.9% to $1.13 billion, while granola bars slipped 1.8% to $1.01 billion and breakfast/cereal/snack bars tumbled 4.4% to $686.3 million. Many of the most successful products posted double-digit growth, while those products that fell out of favor fell far behind, according to the Packaged Facts division of Rockville, MD-based MarketResearch.com in a 2012 category report. Overall, category growth comes not only from new product activity but also from increased sophistication in marketing of bars, targeting different consumer sets and continued innovation in delivery formats, according to the report. Eating trends such as the blurring of meals and snacks and increasingly informal, spur-of-the-moment and customized eating all favor the snack bar market. And another 2012 research report, published by Rabobank, stated that the US bar market has grown at twice the rate of other snack foods and nearly three times the rate of the overall packaged food sector over the past 10 years. In fact, three companies — General Mills, Kellogg’s and Clif Bar — own almost 60% of the market and boast seven of the Top 10 brands. “Snack bars are one of the few bright spots in today’s US processed food market,” said Nicholas Fereday, Rabobank analyst and author of the report. “By capitalizing on consumer trends and evolving demographics, snack bars have found broad appeal among a large consumer base that ranges from athletes to couch potatoes, from working mothers to professionals on the go.” Kellogg Company, Battle Creek, MI, just rolled out its FiberPlus Antioxidant Protein Chewy bars available in Mixed Nut and Peanut varieties. “Many people are seeking positive nutrition from their snacks, particularly protein and fiber,” explained Todd Penegor, president, US Snacks, Kellogg. “These new bars provide 10 g of protein and 7 g of fiber as well as vitamin E and zinc.” Kellogg’s Nutri-Grain, a longtime cereal bar staple in the market, is also expanding its appeal with new Nutri-Grain Fruit Crunch. Mr. Penegor explained these crunchy granola bars contain 20 g whole grain and real fruit. Last year, the company introduced its Special K Protein BROUGHT TO YOU BY J.R. SHORT, HEAT AND CONTROL, MINSA, PRINTPACK, READING THERMAL, RUDOPLH FOODS, AND TNA NORTH AMERICA 30 Snack World May 2013 www.sfa.org http://www.MarketResearch.com http://www.sfa.org

Table of Contents for the Digital Edition of Snack World - May 2013

Snack World - May 2013