Snack World - May 2012 - 17

Pricing, no doubt, is the culprit — 36% of consumers said price heavily influences their brand decisions. Although 51% of consumers consider “brand of choice” an important snack attribute, some 70% said they actively look for the best value when buying snacks. In fact, while nearly 75% want their favorite brand, 40% said they look for that brand on sale. PERFORMANCE FACTORS. During 2011, yogurt showed the largest percentage dollar sales increase at 7.7%, but volume sales dropped 1.2%, a decrease attributable to the maturity of the Greek yogurt craze that sent yogurt sales skyrocketing in 2010. Snack and granola bar dollar sales jumped 5.8%, but saw volume slip 0.3%. Other categories showed similar results. Salty snacks were up in dollar sales by 3.1%, but the category’s volume sales increased a mere 0.2%. In addition to inflationary pressures, Ms. Lyons Wyatt said, promotional activity such as displays, price discounts and promotional allowances declined during the past year, resulting in some of the higher pricing that generated increased dollar sales. “Getting your trade dollars right is important. Where do you put them? It is critical to get this right,” Ms. Lyons Wyatt said. “Be sure you are spending your money on the right promotional mix. Ensure that it is well-spent for the best return.” Private label continues to be strong in the snack arena, with 57% of consumers saying store brands are a “viable alternative” to brand name products. Private label’s share of snack sales remained steady at 12.2% in 2011. Volume share dipped from 16.9% to 16.8%. There was also a channel shift during the past year, with grocery stores and Wal-Mart losing snack volume to drug and convenience stores as shoppers shifted from stocking up to buying snacks on the go. In fact, convenience store gains cut across a majority of snack categories, including nearly all of the 10 largest. While share increases were less than 1% (0.9% for chocolate candy and 0.8% for salty snacks), corresponding declines in shares were present in the grocery channel and Wal-Mart.

According to the SymphonyIRI Group data, 54% of consumers are looking for snacks that can be eaten on the go. Consistent with the data that show consumers snacking more frequently is the increase in the percentage of consumers who snack almost daily by time of day. Since 2009, those snacking during the late evening have increased from 16% to 21%, evening from 22% to 34%, afternoon from 26% to 39%, morning from 11% to 21%, and early morning from 4% to 7%. The data also show that snacks play an important role in hunger satisfaction, with 34% of consumers saying they snack to satisfy immediate hunger. According to the survey, 9% do so as a mini meal, while 8% said they use snacks as an opportunity to get needed nutrition. Snacks promoting protein on the front of their packages increased 28% in volume sales from 2010 to 2011. Snack options seen as healthier by consumers grew dollar and volume sales 3.9% and 0.5%, respectively, while indulgent snack dollar sales jumped 4%, with a 0.1% volume decline. Product innovation boosts sales in the healthier-for-you arena, as well as in other snack categories, noted Ms. Lyons Wyatt, who cited Lay’s Lightly Salted chips with 50% less sodium, Quaker’s True Delights granola bars with 11 g whole grains indicated on the package, Special K Chips with 110 Cal per serving listed and Trident Vitality labeled as a source for vitamin C. Innovation is also successfully providing hunger satisfaction across other snack categories, she added, pointing to Planters’ line of NUT-rition products, Snickers Peanut Butter Squared and Yo-Toddler yogurt products. HEALTHY EATING. Forty-six percent of consumers view snacks as an important part of a healthy eating plan throughout the day, and 60% seek snacks that offer benefits beyond basic nutrition, according to SymphonyIRI Group. Although overall healthier products outperformed indulgent, such as nutritional snacks and trail mix up 11.1% and hummus up 10.5%, many indulgent categories also showed strong growth. Chocolate-covered salted snack sales increased 8.6%; dried meat snacks jumped 6%; and

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May 2012

Snack World

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Snack World - May 2012

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