Milling & Baking News - November 27, 2012 - 34

Bar Update 

Staying strong
Innovation, interest in quick, healthy snacks keep bar category growing

ajor changes may be in store for the bread and snack cake industry as the bankruptcy drama of Hostess Brands, Inc. appeared to approach its culmination, but business in the bar category continues to be one of the better stories for the grain-based foods industry over the past year. In the 52 weeks ended Oct. 7, dollar sales for the snack bars/granola bars category totaled $4,479,555,000, up 6% from the same period a year ago, while unit sales increased 5% to 1,608,790,000, according to SymphonyIRI Group, a Chicago-based market research ﬁrm. And according to a report published by Rabobank’s Food & Agribusiness Research and Advisory group in late October, favorable consumer trends will lead to strong continued growth in the snack bar category. In the report, titled, “Never eat more than you can lift,” Rabobank said the snack bar category has grown at twice the rate of other snack foods and three times the rate of the overall packaged food sector during the past decade. Noting that snack bars are multi-purpose and appeal to a broad range of consumers, and that consumer consumption patterns are shifting with the incidence of snacking increasing, Rabobank said it expects the category to continue to grow. Rabobank attributed most of the growth to just one maker: Clif Bar & Co. In the 52 weeks ended Oct. 7, dollar sales at Clif Bar totaled $366,121,200, up 23% from the same period a year ago, while unit sales were up 19% to 175,582,600, according to SymphonyIRI. The company has continued to innovate, introducing a number of new products this year, including Clif Builder’s bars, Clif Kit’s Organic and Gary’s Panforte. Clif Builder’s, which contain 30 grams of protein and 23 vitamins and minerals, now are available in three new varieties: chocolate chip, S’mores and crunchy peanut butter. Clif Kit’s Organic is made with 100% organic fruit and nuts and is available in four ﬂavors: berry almond, cashew, chocolate almond coconut and peanut butter. Growth at General Mills Right behind Clif Bar in the nutritional/intrinsic health value category is General Mills, Inc., Minneapolis. The company, which claims to have created

the grain snack category back in 1975 with the launch of Nature Valley granola bars, had dollar sales of $318,989,200 and unit sales of 88,113,240 in the sector in the 52 weeks ended Oct. 7, up 27% and 22%, respectively, from the prioryear period. Meanwhile, the company’s granola bar sales totaled $649,096,100 in the period, up 3% from a year ago. “We continue to lead growth in the grain snacks category with great product innovation,” Don Mulligan, executive vice-president and chief ﬁnancial ofﬁcer of General Mills, Inc., said during a Nov. 14 conference call with analysts as part of the Morgan Stanley Global Consumer & Retail Conference. “In 2012, Fiber One 90-calorie Brownies generated more than $100 million in

Larabar all-natural fruit and nut bars have grown at a double-digit rate as the company has expanded distribution in a wide variety of retail outlets. Brynwood building bar presence? Brynwood Partners VI L.P. in midAugust entered a deﬁnitive agreement to acquire a controlling stack in the Back to Nature brand food business through a joint venture partnership with Northﬁeld, Ill.-based Kraft Foods Group. While Back to Nature isn’t currently in the bar category, Henk Hartong III, senior managing partner of Brynwood, said the company plans to grow the brand through select new product and new category introductions. But Brynwood's position in the bar category is now up in the air after the

Booming bars businesses
Dollar sales $1,664,034,000 $1,648,707,000 $1,139,801,000 $27,013,320 $4,479,555,000 Per cent change from year ago 17.7% 2.9% -4.1% 168.0% 6.3% Unit sales 638,095,200 554,145,600 406,713,100 9,835,783 1,608,790,000 Per cent change from year ago 16.2% -0.7% -4.1% 73.8% 4.7%

Nutritional/intrinsic health value bars Granola bars Breakfast/cereal/snack bars All other snack/granola bars Total snack bars/granola bars

52 weeks ended Oct. 7, 2012 Total U.S. Multi-Outlet (Supermarkets, Drugstores, Mass Market Retailers (including Wal-Mart Stores, Inc.), Military Commissaries and Select Club and Dollar Retail Chains) Source: SymphonyIRI Group

retail sales. This year, we have added a 90-calorie chocolate chip cookie variety that is off to a terriﬁc start. We’ve also just launched new Fiber One Chewy Bars available in kid-friendly ﬂavors, like chocolate and peanut butter and jelly. These bars deliver 20% of the daily value of ﬁber and 10% of the daily value of calcium, all at just 100 calories per serving.” Even as Fiber One has gained market share, Mr. Mulligan said Nature Valley continues to be the ﬂagship brand of General Mills’ grain snacks business. “Our newest variety is Nature Valley Protein Bars,” he said. “They are on track to be as big as Fiber One Brownies in year one retail sales and we have additional ﬂavors and formats of Nature Valley bars coming to market in January.” Also in the bar category, Mr. Mulligan said Golden Graham Chocolate Marshmallow Treat Bars are among the top-selling snack items in the convenience store channel, and retail sales for

company on Nov. 26 announced plans to divest the Balance Bar Co. to NBTY, Inc. (See story on Page 8.) Recent innovation at Balance Bar includes the introduction of a S’mores variety as well as the launch of mini energy bars in two popular Balance Bar ﬂavors: cookie dough and double chocolate brownie. Each 100-calorie mini energy bar contains 7 grams of protein and 23 vitamins and minerals with an excellent source of antioxidants (vitamins A, C and E). Last week, the company introduced the Balance Bar Dark line that features three varieties in dark chocolate crunch, dark chocolate coconut and dark chocolate peanut ﬂavors. The line is currently available on the drugstores.com web site and will be available at retail outlets nationally in the beginning of 2013, according to the company. The bars are high protein, gluten-free and contain 4 grams of ﬁber. The cocoa used to make the bars in the Dark line is certiﬁed Rainforest Alliance. MBN
bakingbusiness.com / world-grain.com

34 / November 27, 2012 Milling & Baking News

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Milling & Baking News - November 27, 2012

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