Inspiration Needed Retailers Must

Retailers must look to new and emerging trends if they are to reverse recent dollar and unit share declines within a number of store brand salty snack categories.

North American consumers long have had a love affair with salty snacks. They serve as the perfect crunchy companions to our lunchtime sandwiches, tame down our pre-dinner hunger pangs, and make watching the big game on TV more enjoyable.

But consumers appear to be choosing store brand salty snacks a little less often. In fact, data from New York-based Nielsen show small declines in dollar and/or unit share in a number of store brand salty snack subcategories during the 52 weeks ending June 11. (See the table, p. 28.)

Don't compromise taste in an effort to enhance a product's healthfulness.

But retailers could do much to stir up some excitement — and encourage sales growth. For starters, they could look to new and emerging trends for product development inspiration.

Think healthful

One of the most significant trends is that toward better-for-you formulations.

Joe Papiri, vice president of sales and marketing for Snak King, City of Industry, Calif., points to trends in all-natural products and cleaner ingredient statements. He also notes interest in lower-fat formulations, including "popped" chips made with new technology that relies on heat and pressure to deliver a good crunch. In addition, he sees continuing interest in organic products within the segment — as well as still-emerging interest in non-GMO products.

Retailers also might want to consider healthful but nontraditional base formulations, notes Rashid Oberoi, president of Dashiki LLC, Houston.

Do invest in — and highlight — better-for-you attributes for new store brand salty snacks.

"Using different raw materials such as lentils or chickpeas is a new trend that a lot of retailers are interested in," he says, adding that different cooking methods such vacuum frying to cook products with high moisture also are worth watching.

On the tortilla side, different inclusions such as chia seed or flax seed stand to enhance the product's health quotient, Papiri suggests. His company also is able to create more unusual types of tortilla chips such as bean and rice with corn.

Go unique with flavor

Even if it has a healthful spin, a salty snack also must taste great — or the consumer won't buy it again. And unique flavors or flavor combinations not only enhance the taste quotient, but also set a store brand apart from its competitors.

Papiri notes that ethnic, hot and spicy, and other interesting flavors are in vogue, provided they have a broad-enough appeal for mass-market success.

"We're seeing snacks in the Mediterranean vein doing very well," he adds. "We have a new product — a Lavash — that is a baked chip. We're actually using real extra virgin olive oil."

The thin chip leverages the popularity of olive oil as a "healthy fat" while meeting ethnic flavor trends, he adds.

Mark Singleton, vice president of sales and marketing for Lima, Ohio-based Rudolph Foods, maintains that regional flavors are back in the spotlight. Although retailers have had a tendency in recent years to try to create a "national" store brand — as they grew and developed a broader footprint — they really need to think local in terms of flavor development, he contends.

"We have [pork rind] offerings in Miami, for example, that are far different than our offerings in El Paso," he says, adding that the company now is working on an adobo flavor profile for its New York and Florida consumers.

Do consider ethnic, regional and other interesting flavors for new salty snack items.

Retailers also need to consider the growing Flispanic population when it comes to regionalizing salty snack flavors, Singleton adds. A consumer of Mexican heritage, for instance, has different taste preferences than one of Cuban or Puerto Rican heritage.

Packaging counts

Great packaging, too, can help attract consumers to store brand salty snacks. One of the newest trends in the segment is resealable packaging that eliminates the need for a chip clip, Oberoi says.

But such packaging adds a significant cost to the bag, Singleton notes. Although it has the potential to work well for premium-positioned store brand items, it probably wouldn't go over well with pork rind consumers and other shoppers who look primarily for value.

Although Papiri agrees that reclosable bags are a trend — along with matte-type finishes — he believes it's the quality of the design and the quality of the marketing behind the product that ultimately will attract consumers' attention.

Close the sale

Effective merchandising, of course, is a big part of a successful marketing equation. For his part, Singleton believes off-shelf merchandising is critical to drive trial and growth in store brand pork rinds and other salty snacks.

Speaking of off-shelf displays, Papiri says pallet mods pre-merchandised with store brand salty snack items have been found to boost sales. And cross-merchandising such items with beverages or other complementary products also helps.

"The more activity and thought a retailer puts into its own brands — billboarding them and cross-merchandising them — the better," he says.

Pricing is important, too. Oberoi believes retailers that set the "regular" price of store brand salty snacks below the national brands actually are making a mistake — if the quality of such items is equivalent or better.

"This leads to a loss in margin and an inferiority perception that is engrained in a customer before they even try the product," he maintains.

But Papiri notes that pricing should match the product's positioning and fit in with the needs of a retailer's particular shopper base.

"What works better for your consumers, a better value at parity price to the national brand or the same size and better value/price?" he asks.

In some cases, a unique, premium store brand salty snack might actually warrant a higher price tag than that for a popular national brand item, Papiri adds. And no matter what the price, the quality better be there, or it's not a value to the consumer.

Look What's New

Kroger Original Sea Salt Multigrain Chips from Cincinnati-based Kroger Co. are said to be made with whole grains. Also available in Country Cheddar and Black Bean & Salsa varieties, the chips retail in a 10.5-oz. bag.

Clancy’s White Cheddar Whole Grain Cheese Puffs from Batavia, Ill.-based ALDI Inc. are in line with the all-natural trend, said to be free from preservatives and artificial flavors and colors. The gluten-free puffs are made with real cheese and contain 16g of whole grains per serving. They retail in a 7-oz. bag.

Straddling the line between a cracker and a chip, President's Choice Cheddar & Asiago Baked Crisps from Brampton, Ontario-based Loblaw Companies Ltd. boast thin layers of sourdough and aged Cheddar and Asiago cheeses. The crisps, which contain no artificial colors or flavors, are said to be lightly seasoned and then double baked for exceptional crispness. They retail in a 127g bag.