Snack World - May 2014 - (Page 48)

STATE OF THE INDUSTRY REPORT Hot and Sometimes Not S alsa continues to dominate the category with $1.1 billion in sales, up 2% from the previous year, while the smaller other Mexican salsa/marinade segment rose 5.9%, according to IRI data. Dips, however, struggled, slipping 2.5% over the last year. Herr Foods, Nottingham, PA, came out with a new Southwestern Black Bean and Corn Salsa with a subtle taste of premium Mexican chiles to provide a hallmark of southwestern cuisine. Utz Quality Foods, Hanover, PA, introduced a line of 15-oz dips, including Cheddar, French Onion, Salsa Con Queso, Ranch and Spinach. Frito-Lay North America, a division of PepsiCo, continues to dominate the market with its dips and salsas under Frito's, Lay's and Tostitos brands. "Extra hot and sweet heat are still the biggest movers," said Doug Renfro, president, Renfro Foods, a San Antonio- Top 5 Salsa Brands Brand Dollar Sales ($mil) Salsa Tostitos Private Label Pace Herdez Chi Chi's 1,100.4 439.5 164.2 116.3 45.5 41.2 Dollar Sales % Change 2.0 2.1 -7.1 2.8 5.0 1.2 based producer of salsa and relishes. Responding to the hundreds of restaurants and thousands of mom-and-pop and other niche players that compete in this category, Renfro Foods reformulated its nacho cheese sauce to make it allnatural last year. It also added a Chipotle & Ghost Pepper Cheese version that combines smoky hot with extra hot. "We're now selling five times more cheese sauce than we were a year ago; on top of that, the Ghost Pepper Cheese sauce is already outselling the Original/Classic," he said. According to a January 2014 report on the snacks market, Chicago-based Mintel noted that sales of dips barely grew over the past five years. "Sales for many of the leading brands in the segment trended downward from 2012-13, likely a result of consumers seeking out more upscale ethnic dips such as salsa or hummus, which benefit from being fuller flavor and lower calorie options," the research firm noted. "The segment may continue to grow by marketing the indulgence of its products." But there's good news for the future. Healthier bases, such as low-fat or fat-free Greek yogurt, are likely to appeal to those seeking lower-fat dips, according to Mintel. "Brands such as Dannon's Oikos and Marzetti's Otria have helped to wake up the category with Greek-yogurt-based dips that incorporate flavors consumers are already familiar with, as well as ethnic flavors," the report said. - Sue Malovany Unit Sales (mil) Unit Sales % Change 389.0 128.5 72.3 41.2 24.3 15.5 1.3 1.8 -7.4 4.1 5.5 0.5 Volume Sales (mil lb) 444.5 142.5 91.1 56.4 23.0 21.6 Volume Sales % Change 1.0 1.9 -7.9 3.3 9.2 1.8 Source: IRI Total US - Multi Outlet 52 Weeks Ending March 23, 2014 Note: Many companies may have multiple brand listings in the IRI data. STATE OF THE INDUSTRY REPORT BROUGHT TO YOU BY HEAT & CONTROL, J.R. SHORT, PRINTPACK, RUDOLPH FOODS AND GE CAPITAL 48 Snack World May 2014 www.sfa.org http://www.sfa.org

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Snack World - May 2014