Snack World - May 2014 - (Page 22)

STATE OF THE INDUSTRY REPORT S Simply Pure Enjoyment urvey after survey indicates that consumers are searching for healthier snacking alternatives. Report after report suggests Americans are eating more snacks and fewer meals. Put the math together. One plus one should equal good news for more nutritious products. However, it doesn't necessarily translate into bad news for conventional potato chips. In fact, the bottom line is that potato chips remain the most popular snack, and an indulgent one at that. In fact, 81% of households purchased them during the past six months, more than nuts at 76% and tortilla chips at 74%, according to Chicago-based Mintel's latest "Chips, Popcorn, Nuts, and Dips" report published in January. According to IRI, a Chicago-based research firm, potato chip sales and volume continue to expand at a steady rate. The data also indicate that several of the top brands such as Wavy Lay's, Pringles and Ruffles are expanding at a robust growth. However, BROUGHT TO YOU BY HEAT & CONTROL, J.R. SHORT, PRINTPACK, RUDOLPH FOODS AND GE CAPITAL 22 Snack World May 2014 www.sfa.org some of the more perceived healthful "baked" varieties are lagging in performance, at least in IRI charts. Likewise, several "kettle" brands dipped significantly after several years of growth, but there are surely explanations in the data. So why are the mainstream media and the online press proclaiming the demise of conventional potato chips and the core mainstream categories that lay the foundation of the salted snack industry in North America? Are they analyzing the market or following the hype? Certainly popped chips, crisps and other hybrid snacks are capturing the imagination of consumers who yearn for products that are innovative and perceived as healthier, thus making them a faster-growing segment of the snack industry than the old sliced chip that's fried and seasoned. However, these johnny-come-lately products still have a long way to go to catch up to the king of the salted snack category. In fact, only 61% of consumers surveyed by Mintel said they purchased popped, veggie, fruit or even bagel pita chips or crisps during the past six months. "Overall, healthier options such as baked or popped chips are less frequently purchased than their regular versions, indicating there is still interest in indulgent snacks. Households with children are more likely to purchase a variety of snacks than households without children at home," according to the Mintel report. "They also are more interested in healthier and more convenient snacks such as popped potato chips and RTE (ready-to-eat) popcorn." Fundamentally, innovation in taste and textures drive impulse sales of potato chips. However, as Anindita (Ann) Mukherjee, senior vice-president and chief marketing officer, Frito-Lay North America, noted during her SNAXPO speech in March, don't underestimate the fundamentals of this category and the X-factor that potato chips bring to the overall snacking experience. http://www.sfa.org

Table of Contents for the Digital Edition of Snack World - May 2014

Snack World - May 2014