Specialty Food Magazine

MAR 2013

Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.

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THE MARKET THE CONSUMER KEY POINTS KEY POINTS • Attitudes toward snacking as it relates to overall nutrition and health have remained relatively unchanged since 2007. This indicates obstacles for healthy snacks, and that messages from health experts may not be fully resonating with consumers. • While taste is still the primary motivation behind a purchase decision, 65 percent of snackers indicate they are interested in healthy snacks, with almost 50 percent interested in snacks that help with health issues. • The number of total annual snack launches has rebounded since 2009. Of more than 9,000 product launches between 2008 and 2012, the most were in the snack/cereal/energy bar category, followed by nuts and fruit snacks. • Portable is popular: 36 percent of snackers indicate they eat snacks while on the go and 30 percent do so while driving. • Private label accounted for 17.5 percent of snack product launches in 2008. In 2012, private label is expected to have accounted for 25.1 percent of snack launches. • With 36 percent of consumers snacking while at school or work, vending machines are a potential sales avenue to raise overall brand awareness. Health clubs are another good venue, as frequent exercisers are the most apt to view snacks as being "very healthy." SNACK PRODUCT LAUNCHES BY TOP HEALTH CLAIMS (2008–2012) Total Leading "low/no" claims Low/no/reduced trans fat No additives/preservatives Low/no/reduced allergen Gluten-free Low/no/reduced fat Low/no/reduced cholesterol GMO-free Low/no/reduced calorie Leading other claims Kosher All-natural Organic Ethical (e.g., environmentally friendly package) Whole grain Convenient packaging Premium Share % 2,219 1,775 1,479 1,366 1,001 846 555 503 23.5 18.8 15.7 14.5 10.6 9.0 5.9 5.3 3,264 1,935 850 34.6 20.5 9.0 777 737 657 596 8.2 7.8 7.0 6.3 Snack Product Launches by Category, 2008Ð2012 Note: Share percentages donÕt sum to 100 as products can have more than one claim Source: MintelÕs GNPD Today's snackers want to know that their choices feature quality ingredients, are allergen-free and are wrapped in eco-friendly packaging. Kosher was the most common product claim during 2008–2012, and accounts for roughly one-third of the launches during that time. Other top labels included low/no/reduced trans fat (accounting for nearly a quarter of launches), followed by all natural, low/no additions or allergens and gluten-free. 52 ❘ SPECIALTY FOOD MAGAZINE ❘ specialtyfood.com • At a time when the recession is fresh in Americans' minds, 71 percent of healthy snackers believe healthy snacks are pricier than unhealthy snacks. Until consumers feel comfortable with their discretionary spending, the snacks industry is unlikely to maximize its potential sales opportunities. • Snacks make great meal replacers. With 29 percent of healthy snackers occasionally substituting a snack for lunch or dinner, 34 percent choose snacks to replace breakfast when they are most likely pressed for time. There appears to be a market to promote snacks more aggressively as an occasional meal substitute. • More than three-fourths (77 percent) of healthy snackers indicate they occasionally indulge in unhealthy snacks. Manufacturers who can develop healthy snacks that still offer an indulgent experience should be well positioned to maximize snacking sales. HEALTHIEST SNACKS BY SEGMENT Fresh fruit Raw vegetables Nuts/seeds Yogurt Dried fruit Rice cakes Trail mix Cereal Cheese Frozen yogurt Snack bars (e.g., energy, cereal or diet bars) Popcorn Canned soup Very Healthy % 84 83 53 52 41 29 26 25 24 24 Somewhat Healthy % 14 14 40 44 50 58 59 58 56 58 19 16 14 63 51 52 ÒVery HealthyÓ or ÒSomewhat HealthyÓ Perception for Consumed Snacks, March 2012 Base: Internet users aged 18+ who eat snacks Source: Mintel It's no surprise that fresh fruit and raw vegetables earned top honors for snacks being perceived as very healthy. But more than half of snackers also felt that nine other segments were at least somewhat healthy. With the right mix of marketing and consumer outreach, lower-ranking segments—such as snack bars, popcorn and canned soup—have the potential to change perceptions.

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