Snack World - May 2016 - (Page 44)

STATE OF THE INDUSTRY REPORT Keep it Fresh I ncreased snacking among consumers equates to positive growth for the salsa and dips category. Millennials are a large sector of the heavy snackers, but the rising Hispanic population and families with children are also demographics more likely to buy chips and dips, according to Mintel's 2015 report on Chips, Salsa and Dips. The rise in popularity of Mexican foods and mainstream acceptance of the cuisine provided a perfect opportunity to introduce salsas to consumers. The unique, spicy flavors and portability made salsa an easy addition to snack foods, according to IBIS World's 2015 report on pre-made salsa production in the US market. Salsa sales outpaced dips dollar sales earning $1.1 billion, but overall dip sales grew more at 9.1%, according to IRI data for the 52 weeks ending February 21, 2016. Frito-Lay's Tostitos brands for both salsa and dips were the number one performers. The brand's variety of flavors and combinations keep consumers coming back. Brands that consider consumer preference for ethnic and international cuisines are influencing sales, according to the Mintel report. Salsa is also perceived to have healthy attributes because it is made with natural ingredients, less processed and contains fewer artificial ingredients resulting in the much desired cleaner label. However, manufacturers will need to create new products and innovate with flavors to keep fickle consumers excited. The dip segment has typically experienced better growth due to introduction of new flavors, according to the IRI data. Dip sales are influenced by new flavor combinations, and different styles of dips like hummus and yogurt-based dips , which appeal to those consumers looking for a better-for-you option with less fat and sugar but all the taste of more indulgent varieties, according to Mintel. Packaging concerns for consumers are noteworthy. Mintel research found that more than seven in 10 respondents would like packaging that keeps product fresher longer. Fresh dips and salsas with healthy, unique ingredients and intense flavors are also likely to boost sales. "Fresher, spicier salsas and dips that follow the example of hummus, guacamole and yogurt-based dips provide growth opportunities," said Amy Kraushaar, US category manager, food & drinks and foodservice, Mintel Group, Ltd. * Top Dip Brands the Mintel report. Dollar Sales Dollar Sales Product $478 million in dollar sales, according to Dips reached ($mil) %Change Dips Tostitos Lay's Fritos Tostitos Dip-etizers Frito-Lay Private Label Utz Ruffles Pace Marzetti 393.1 132.0 99.4 68.5 28.0 11.8 10.8 5.7 5.1 2.4 2.3 Source: IRI Total US Multi-outlet 52 Weeks Ending 02-21-16 Note: Many companies may have multiple brand listings in the IRI data. 44 Snack World May 2016 www.sfa.org 0.1% 0.0% 0.1% 0.0% 7.6% 0.1% -0.1% 0.1% -0.2% -0.3% 0.1% Unit Sales (mil) 127.5 38.1 27.9 26.9 8.3 4.2 4.4 2.2 1.3 0.8 0.6 Unit Sales %Change 0.1% 0.0% 0.0% 0.0% 8.6% 0.1% -0.1% 0.1% -0.3% -0.2% 0.1% Volume Sales (mil) Volume Sales %Change 97.7 35.3 26.1 14.5 5.2 2.2 3.5 1.2 1.2 0.8 0.5 0.0% 0.0% 0.0% 0.0% 8.6% 0.1% -0.2% 0.1% -0.3% -0.2% 0.1% http://www.sfa.org

Table of Contents for the Digital Edition of Snack World - May 2016

Snack World - May 2016
Table of Contents
LETTER FROM SNAC INTERNATIONAL - SNAC International is Indispensable
NEWS - New SNAC International name recognizes evolving industry
SUPPLIER INSIGHT - Networking Is Key
2016 STATE OF THE INDUSTRY REPORT - At Front and Center Stage
Kudos to the Cast
Indulge and Excite
Maximizing Health, Innovating Style
Delivering on Innovation
Healthy Halo, Devilishly Delicous
Healthy Versatility
Flavor Innovation Going Nuts
The Cheese Alternative
Gone Gourmet
Flaming Hot, Protein-Packed
The Skinny on Popcorn
Keep it Fresh
BUSINESS MEMBER PROFILE - Innovation, New Ventures Continue
ASSOCIATE MEMBER PROFILE - Flexible to the Core
CHAIRMAN PROFILE - New Logo, New Leadership
SNAXPO - Staying Ahead of the Game
PRODUCTS & SERVICES
AD INDEX

Snack World - May 2016