The Nuts And Bolts Of Snacks

Dried cranberries and zesty snack mixes are two important growth areas for store brand fruit and nut snacks.

One would be hard-pressed to find a healthful snacking segment more versatile than fruit and nut snacks these days. According to “Nuts and Dried Fruit — US,” a January report from global research firm Mintel International, nut and dried fruit suppliers are providing more and more new flavors and convenient packages to satisfy the healthful-snacking needs of the aging population — as well as children.

New product introductions were up considerably in 2010, the report noted, signaling manufacturer and retailer optimism about the economy. And premium store brand fruit and nut snacks have thrived during the economic downturn, delivering high quality at prices that compete well against the national brands.

►Do consider merchandising your fruit and nut snack products in the produce department.

Arun Rajan, director of insights with Elgin, Ill.-based John B. Sanfilippo & Son (JBSS), says he has seen an influx of unique varieties.

“While consumers continue to be health-conscious, their snacking habits are taking on more adventurous tendencies,” he says. “As a result, a slew of new flavors and healthy mixes [has] emerged.”

Consumers particularly value verified claims of antioxidant values, high vitamin content and low cholesterol levels, says Mark Devencenzi, national sales director with SunRidge Farms, Pajaro, Calif. To respond to this interest, his company developed an antioxidant mix for private labeling that contains a total oxygen radical absorbance capacity (ORAC) value of 2,935 in a 30-gram serving. (On its website, USDA points to research that suggests that people who consume 3,000 to 5,000 ORAC units per day greatly enhance their plasma and tissue's antioxidant capacity).

Favored flavors

In terms of new flavors, consumers are looking for mixes that are exotic and zesty. Vince Garibaldi, vice president of sales with New Century Snacks, Commerce, Calif., says his company has responded to this trend by manufacturing several ethnic mixes for Walmart.

The products — which come in both bulk and packaged options — include Asian Nut Crunch and East Indian Snack Mix, both of which retail under the World Table private brand (see the “Look What's New” sidebar on p.38 for a description). Garibaldi says New Century also manufactures a Spanish mix and a Yucatán mix for the Bentonville, Ark.-based retailer.

But Michael Kim, owner and CEO of Anaheim, Calif.-based 180 Snacks, warns retailers to be careful with what flavors they use to spice up their snack mixes. For example, a hot and spicy flavor such as curry ketchup might be popular in Europe, but it might not perform as well on U.S. shelves. Therefore, instead of using a hot flavor of Indian origin (e.g., curry), Kim recommends retailers stick with something more familiar — such as habanero or jalapeno — to give U.S. consumers a dose of heat.

Don't be bland with your snack mixes — spicy and exotic flavors are pretty popular.

Within the dried fruit segment, experts agree that cranberries are huge. Miranda Ackerman, marketing director for Vacaville, Calif.-based Mariani Packing Co., says the dried cranberry segment has become the second-largest subcategory in dried fruit.

“This segment has such tremendous growth that accounts are finding success offering several branded offerings of this item — as well as their own,” she says.

Jane Asmar, vice president of sales for National Raisin Co., Fowler, Calif., says cranberries continue to show the most positive gains of any major subcategory in dried fruit. Other growth areas, she says, include cherries, apples and mangoes.

David Kirk, vice president of new business development for Pacoima, Calif.-based Energy Club, also sees strong growth in mangoes, along with papayas. He points to an increase in kiwi's popularity, too.

“It's been around for about a year,” he says. “The color blends well inside a trail mix. … The texture and flavor add to the mix as well.”

Flavored fruits also seem to be popular with consumers. For example, National Raisin now offers a number of SKUs of “fruity flavored” sour raisins — under the Raisels brand and for store brand programs — that compete against sour gummy candies. Flavors include Sour Peach Pucker, Sour Orange Burst, Sour Watermelon Shock, Sour Lemon Blast and Sour Apple TKO.

The Commodity Conundrum

Increasing commodity prices have made things difficult for everyone involved in the dried fruit and nut snacks segment — commodity buyers, manufacturers, retailers and consumers. But although it is extremely difficult to combat price increases, strategies do exist.

For example, during previous challenging supply/cost cycles, dried fruit manufacturers responded with creative solutions for their customers, says Jane Asmar, vice president of sales with the Fowler, Calif.-based National Raisin Co. Such solutions included different-sized fruit (such as smaller apricots), different blends containing more of the less-expensive ingredients in mixed fruit, flavored products (such as mango-flavored pineapple) or even different consistencies (such as mixed whole fruit versus fruit bits).

Retailers also could become more strategic with their store brand bidding processes, says Miranda Ackerman, marketing director, Mariani Packing Co., Vacaville, Calif. Rather than setting an arbitrary date for rebidding, retailers could plan their dried fruit and nut bidding processes around harvesting schedules.

“This gives the accounts a better understanding of the size and cost of each fruit and nut variety by season,” Ackerman says.

And one retailer flavored its mango slices to “spice things up” — literally. Along with dried and freeze-dried mango slices, Monrovia, Calif.-based Trader Joe's is offering Chile Spiced Mango — unsulfured and sweet mango slices coated with paprika and cayenne pepper. The spiced mango retails in a clear pouch, allowing customers to check out the product's unique look.

►Do think about offering transparent packaging to allow your customers to see the product inside.

Don't imitate — innovate

Clear packaging like the version Trader Joe's introduced is important product inside, to consumers. Last fall, JBSS unveiled a clear PET snacking canister for its nut products. Weighing 40 percent less than the traditional composite can (with the ability to be recycled or reused), the canister allows consumers to see the product inside before purchasing.

Mariani also has been innovative on the packaging side. The company said it was awarded the Best New Product Innovation Award by the International Nut and Dried Fruit Council Foundation for its new TouchLock Easy Seal packaging. The system features a Velco-like self-gripping micro-hook fastener that allows consumers to simply touch to close and lock the bag. As long as the micro-hooks on the sides touch, consumers will get the bond needed to reseal the bag. This development provides convenience to seniors and children — as well as on-the-go consumers who don't have time to wrestle with closing a pouch.

Retailers also are using their packaging to call out nutritional information for their fruit and nut snacks, helping time-starved consumers make an easy purchase decision.

“Many retailers are asking for [health-and-wellness] benefits such as ‘a great source of vitamin X’ on their packaging,” Asmar notes. “Additionally, more packaging features consumer engagements such as internet addresses, ‘Follow us on Twitter’ claims and Facebook designations.”

Promote in produce

Asmar also recommends retailers think outside the box when it comes to placing product in stores. For example, the produce section continues to be the best location for merchandising dried fruit, but not all retailers give these products such placement.

“Retailers who purchase and merchandise dried fruit through produce have consistently higher dollars-per-million velocities than retailers that handle dried fruit through grocery,” she says.

Fruit and nut snacks also merchandise well alongside yogurt, cereal and even bagged salad, Ackerman says.

Don't put a good product in packaging that is difficult to reclose.

And don't forget to look at what the national brands are doing with their in-store merchandising. Kirk says Kraft Foods' Planters brand incorporates shipper displays and dump bins in its in-store merchandising strategy.

“We've been doing half-pallets of our 28-ounce bags and our 15-ounce bags, and that has just generated a lot more dollars for the retailer,” he says. “It's obviously an off-shelf display; it's easier to manage from the truck to the floor, put it in a shrink wrap and put a price sign on it.”

Finally, if retailers have the margins to support them, Kirk recommends product demonstations to get customers to try the product.

“That's a great vehicle if there are any new items or refreshed items that you've redeveloped or redesigned,” he said. “If you can justify the costs … I think it's a great idea.”

Look What's New

World Table Asian Nut Crunch Snack Mix from Bentonville, Ark.-based Walmart is said to be a crunchy, spicy, nutty snack mix seasoned with wasabi and other Asian spices. It comprises rice crackers, roasted peanuts, almonds, cashews and salted sesame sticks. The product retails in a 14-oz. resealable pack. Other varieties include East Indian Snack Mix and Pizzeria Snack Mix.

New from the Hudson's Bay Co. of Toronto are Hudson's Bay Company Curry Flavored Roasted Cashews, large-size roasted nuts with a curry flavor. The cashews are said to retail in a 300g jar with a hinged glass cap fitted with a clip closure. Also new in this range are Anise Flavored Candied Almonds.

Roasted to “crispy perfection” and lightly salted, Fresh&Easy Deliciously Crunchy Plantain Crisps from El Segundo, Calif.-based Fresh & Easy Neighborhood Market are “not your ordinary chip.” The crisps — said to be free of artificial preservatives, flavors and colors — retail in a 6-oz. flexible pack.

President's Choice Cherry Naturally Flavored Raisins are said to be made with natural flavors and “perfect for lunchboxes and backpacks.” Retailed by the Loblaw Companies of Brampton, Ontario, the raisins also contain no artificial colors and are kosher-certified. They are manufactured in a peanut-free facility and retail in a recyclable 168g pack containing six pouches. Other varieties available include Grape and Orange.

Trader Joe's Slices of Prune Walnut Log is said to be an ideal cheese companion. Retailing in a 4-oz. clamshell pack, the product is made with prune paste, walnuts, sugar, honey and lime juice. Also new from the Monrovia, Calif.-based Trader Joe's is a Dried Green Mango Log, which is unsulfured and unsweetened, and retails in a 6-oz. pack.