Nutritious Nibbles

For at-home or on-the-go snacking, it's hard to beat dried fruit, nuts and tasty dried fruit-and-nut combinations. They not only provide quick energy, but also offer health benefits.

Dried fruit is typically high in fiber and low in sodium, for example, and many varieties also are high in potassium, potentially helping to reduce blood pressure. And nuts are thought to reduce the risk of heart disease. They also contain fat, protein and fiber that work together to induce a feeling of satiety.

On the store brand side, retailers that best are able to serve current consumer wants and needs stand to win here.

"Consumers are still looking for value from their store brand snacks, but they are also looking for innovation," explains Miranda Ackerman, marketing director for Mariani Packing Co., Vacaville, Calif. "Retailer buyers want to grow their entire category sales, not simply replace one shopper for another. And one way to do this is to launch new and innovative [store brand] items."

Innovation here runs the gamut from new flavors and product combinations to packaging improvements. One area that's ripe for innovation focus is health-minded trail mixes. The potential ingredient and flavor combinations here are virtually endless.

"No doubt the trend is for the health-conscious consumer, and this means that in the next few years [we] will see an increase of consumption of trail mixes — all sorts of fruit mixes with nuts," says Elie Cohen, vice president of sales for Bassé Nuts, Laval, Quebec.

Closely related to the trail mix category — although technically not dried fruit or nuts — are wasabi pea and edamame offerings. And both represent potential innovation areas for store brand programs, says Dana Kaufman, marketing coordinator for Woodstock Farms Manufacturing, Edison, N.J. Natural wasabi green peas hold particular promise, as Dr. Oz recently discussed their ability to increase metabolism during his show.

Dried cranberries represent yet another potential innovation focus area for store brand programs. "Dried cranberries are very much on trend and will continue to be just because of their health benefits," notes Wayne Snyder, vice president of retail for Carver, Mass.-based Decas Cranberry Products.

Flavored dried cranberries represent one way to innovate here, but that's just the beginning, according to Snyder. He says innovation also includes offering lower-sugar and lower-calorie products, as well as pack sizes that range from 1- to 2-ounce single-serve options to 28- or 32-ounce family-sized offerings (and everything in between).

"I think the single-serve size opens up a whole new world of sales opportunities," he adds. "It's an impulse item that's good for a countertop display. It also can come in a multipack for a consumer [looking to] put those single-serve packs in children's lunches."

Cohen agrees — and the opportunity is just as big on the nut side.

"I believe the trend is the grab-and-go packaging, [which features] ease of handling, no mess in ready-to-eat portions," she says.

Finally, retailers will want to monitor which varieties of dried fruit are of greatest interest to consumers — and consider store brand product development in those areas in which they currently do not participate.

"The biggest components of dried fruits continue to show dynamic sales trends," notes Jane Asmar, vice president of sales and marketing for National Raisin Co., Fowler, Calif. "Raisins, cranberries and plums sum to over three-quarters of all pound sales, but we are also seeing recent increases in dates and mangoes as more consumers are beginning to enjoy their sweet, nutritious benefits."

Do

remember that consumers are seeking both innovation and value from store brand fruit and nut snacks.

Don't

forget that convenience also is critical to the segment's consumers; consider adding single-serve options to the mix.

Dress them for success

Innovation at a value is critical to the store brand fruit and nut snacks segment, but such offerings also must boast packaging that commands consumers' attention. Asmar sees three distinct packaging trends on the fruit side of the segment.

One trend is a continued move from banner-based brand names to store brand names that are consistent with other store brand products throughout the store. Such names often convey "an all-compassing benefit or attitude," she adds. Another trend is seen in simple, distinctive and easy-to-decipher packaging graphics, while a third trend is that toward callouts on packaging that alert shoppers to specific benefits and uses.

Across the fruit and nut snacks segment, convenience continues to be a driver, Ackerman notes. For that reason, the more solution-oriented the package, the better. For example, in addition to offering single-serve packs, retailers could include packaged dried fruit (or nuts) along with packaged croutons and dressing in individual salad lunches.

From a value standpoint, pillow bags remain the most "economically savvy" package for the segment, Kaufman notes, but she also points to a lot of consumer interest gusseted bags.

Differentiation also is important, Cohen asserts. Store brands within the segment should not try to mimic the look of the comparable national brand — if one exists.

And today's consumers want to be able to see the product inside the package, but that doesn't mean retailers need to compromise on other packaging features.

"We've provided a window on our packaging that [allows consumers] to look in on the back and actually see the product," Snyder says.

Market the mix

On the marketing front, retailers will want to get creative in terms of displays, cross-merchandising, new usage suggestions and more. But first they will want to ensure they have enough product variety to draw and keep consumer interest, Kaufman stresses. "Consumers like the option of choice and new products — something they've never seen before, something that's intriguing and interesting," she says. "You've got to keep switching items in and out."

Sampling to encourage trial of new items within the segment is very important, too, Kaufman adds.

"If you get them tasting it and smelling it and holding it in their hands, that's going to push them over the edge as opposed to just nice packaging," she says.

And pay attention to seasonal opportunities in merchandising and promotional planning, Asmar suggests.

"There are numerous examples of subcategory seasonal spikes like six-pack and 14-count 'mini raisins' that sell well during back-to-school, Halloween and Easter/Passover," she says. "Plums and cranberries sell well year-round, while tropical fruit generates early summer sales peaks."

On the cross-merchandising side, Ackerman sees opportunities for dried fruit on clip strips next to the bagged salads or dried fruit and nuts on modular displays in the baking and cereal aisles.

Finally, pay attention to the price gap between store brand and national brand offerings here, Asmar says.

"Our data suggests that select customers can increase … everyday private label pricing and fund promotional events," she says.

Don't

allow too large of a price gap between store brand fruit and nut snacks and their branded counterparts.

Do

pay attention to seasonal opportunities.