Milling & Baking News - July 16, 2019 - 24

Cracker Update

the
cracker
code
Manufacturers seek variety of ways to drive category growth

racker manufacturers are looking This wouldn't be the first time Pepto add value in an effort to boost peridge has looked to infuse Goldcategory sales. In one case, in- fish with vegetables. A decade ago
novation is focused on providing nutri- the company introduced Goldfish
ents through the addition of vegetables Garden Cheddar snack crackers,
infused into the crackers. In another in- which also contained one-third of a
stance, crackers are being given a "chip- serving of vegetables.
Taking the Goldfish brand belike" texture to appeal to consumers'
yond its core consumer represents KELLOGG CO.
snacking tendencies.
Whatever the case, companies are on a key objective for Goldfish. Mr. Abramsthe lookout for ways to turn around the Rivera used the company's recent launch
unit sales slump in the cracker category of Epic Crunch Goldfish as an example of
what the company has in mind.
and kick-start dollar sales growth.
"We knew for (a couple of years) now
In the 52 weeks ended June 16, dollar sales in the cracker category totaled that this was an area of opportunity for us,"
$7,402,718,796, up 0.3% from the same pe- he said. "We really have the right capabiliriod a year ago, according to Information ties in-house to be able to do it. So one of
Resources, Inc., a Chicago-based market many things we have done with Snyder'sresearch firm. Unit sales in the period Lance is actually bake a tortilla-like product in one of their Snyder's-Lance bakeries
were down 1.9%.
One of the goals at Camden, N.J.-based in a way that actually brings something
Campbell Soup Co. is to sustain the momen- new to the world that we couldn't do betum in its Pepperidge Farm business, which fore, with 18 grams of whole grains and actually unique flavors and making sure we
includes the company's Goldfish brand.
actually are attracting that older
In the 52 weeks ended June 16,
kid that it continues to be in the
Pepperidge Farm's cracker dolGoldfish franchise."
lar sales totaled $892,537,734, up
The Cheez-It brand continues
0.3% from the same period a year
to reap rewards for Kellogg Co.,
ago, according to I.R.I. Unit sales,
Battle Creek, Mich. Kellogg's
meanwhile, fell 3% in the period.
cracker dollar sales totaled
Speaking to investors during
$1,497,764,873 in the 52 weeks
the company's June 13 Investor
ended June 16, up 1.1% from
Day in Camden, Carlos Abramsthe same period a year ago,
Rivera, senior vice-president
according to I.R.I. The overall
and president of Campbell
category gains were boosted
Snacks, said Pepperidge is lookin large part to the strength of
ing to renovate its core, bring
the base Cheez-It brand, which
new packaging formats to stores, PEPPERIDGE FARM
uncover new ways to inspire children to posted year-over-year dollar sales growth
play with Goldfish and extend into areas of 3.3%, increasing to $821,716,577.
Kellogg also experienced
outside the core demographic.
These initiatives will be key for the growth in some of Cheez-It's
Goldfish brand, which experienced a varietal options, including
6.5% decline in dollar sales in its Flavor Cheez-It Grooves, which
Blasted line and a 3% decline in dol- grew 3.4% to $96,821,569,
lar sales in its Colors line during the 52 and Cheez-It Duoz, which
increased 7% to $76,777,361.
weeks ended June 16, according to I.R.I.
To that end, Pepperidge plans to intro- Kellogg will look to conduce Goldfish Veggie crackers, which will tinue its success in Cheez-It
be available in two varieties: Cheesy Tomato with the recent launch of
and Sweet Carrot. According to packaging Snap'd, which are thin and
renderings, each serving size is expected to crispy cheese crackers. The
contain one-third of a serving of vegetables. crackers are available in four

varieties: double cheese, cheddar
sour cream and onion, white cheddar and bacon, and jalapeño jack.
In a May 2 conference call with
financial analysts, Steven A. Cahillane, chairman, chief executive officer and president of Kellogg, said the Snap'd line "is off
to a good start."
Mondelez International, Inc., Deerfield,
Ill., is the category's largest player, with
dollar sales of $1,621,430,431, according
to I.R.I. The company's grip on the top
spot loosened a bit in the most recent 52
weeks, though, as dollar sales fell 0.6%. A
key factor in the decline was a noticeable
drop in the company's biggest brand:
Nabisco Ritz. According to I.R.I., dollar
sales of Ritz crackers fell 6.3% while unit
sales dipped 8.7% in the 52 weeks ended
June 16. Nabisco Wheat Thins also struggled during the period, as dollar and unit
sales fell 3% and 6%, respectively.
Mondelez has been mostly quiet in
recent conference calls regarding its
cracker business. The company did have
one product land on I.R.I.'s Top 10 New
Product Pacesetters list earlier this year,
though. Ritz Crisp & Thins, which debuted late in 2017, generated $49.1 million
in year-one sales, according to I.R.I., placing it No. 9 on the annual list. The Crisp
& Thins are available in four varieties: sea
salt, cream cheese and onion, bacon, and
salt and vinegar. According to Mondelez,
the crackers combine potatoes and wheat,
rolled thin and oven baked for extra airiness and crunch, with 50% less fat than
many regular fried potato chips.
Mondelez also took a minority stake
in Hu Products and Hu Kitchen, New York, earlier this year.
Hu's portfolio includes Hu
grain-free, gluten-free crackers that are available in sea
salt, everything and pizza flavors. The crackers have been
sold exclusively online and
at Hu Kitchen restaurants in
New York City but are expected to move into retail channels later this year. MBN

MONDELEZ INTERNATIONAL

24 / July 16, 2019

Milling & Baking News

- Eric Schroeder
bakingbusiness.com / world-grain.com

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - July 16, 2019

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