Offer Something Better

As a whole, American consumers are snacking more often — and more healthfully — creating a new generation of snackers, states Packaged Facts, a division of Rockville, Md.-based MarketResearch.com, in its September 2013 “Healthy-Ingredient Snacks in the U.S.: Cereal/Granola, Fruit, and Seed/Nut Snacks and Bars” report. Concern about what is in their food is prompting consumers to search for snacks made with healthful ingredients, including exotic fruits and vegetables.

And a desire for something new and different among consumers is encouraging inventive flavor combinations, innovative formats and shapes, and unexpected combinations of spices from around the world, Packaged Facts says. Therefore, retailers could benefit by fine-tuning store brand fruit and nut snacks to better align with this new generation of snackers.

Offer healthful options

When it comes to healthful snacking, organic options are becoming more important to consumers, says Mike Swiatkowski, vice president sales and marketing, Hickory Harvest Foods, Akron, Ohio.

“We are seeing pockets of growth on the organic side so we’re gearing up — as a company — to offer more organic products. For example, we’re beginning to organically roast nuts,” he says.

Buoying this trend for organic fruit and nut snacks could be consumers’ concern with GMO products and their desire for pure, simple ingredient lists, says Aram Karapetian, vice president sales and marketing, Woodland Foods, Waukegan, Ill.

As for the types of ingredients consumers’ seek, as snacks begin to function as meal replacements consumers are looking more for high-protein snacks, Packaged Facts states. One way to increase protein in snacks is by adding ancient grains such as quinoa, hemp and flax. Additionally, superfoods have found their place within the snack market. For example, fruit and nut mixes using pomegranate, kale, seaweed, goji berries or acai are piquing the interest of consumers who want to eat foods high in antioxidants, minerals, vitamins, amino acids and enzymes.

Bold flavors are better

Fruit and nut snacks continue to innovate around indulgent flavor trends, specifically in the trail mix segment, states global market researcher Mintel in its December 2013 “Category Insight: Nuts, Fruit Snacks and Snack Mixes” report. For example, Deerfield, Ill.-based Walgreen Co. recently launched a premium trail mix under the Good & Delish brand containing chocolate caramel bites, chocolate candies, roasted peanuts and cashews.

“People like to eat what tastes good,” Swiatkowski says. “So we’re going to start doing flavors such as butter toffee and praline, as well as offering some sugar-coated nuts.”

However, offering only trail mixes that are indulgent could jeopardize future growth in the market given consumers’ increased focus on health, Mintel reports.

“Attitudes [about] trail mix are already changing, with snackers in the United States now perceiving [trail mix] as less healthy than nuts and dried fruits,” the report says.

Bold, spicy flavors continue to remain popular among consumers as well, Packaged Facts states. And rather than offering just one dominant flavor, creative and unexpected combinations of flavors are becoming popular. One example of this comes from Pleasanton, Calif.-based Safeway Inc., which recently developed a Sweet and Salty Chili Crunchy Trail Mix under its The Snack Artist brand. The mix is made with honey nut crunch, Cajun peanuts, honey sesame sticks, salsa corn sticks, almonds and corn nuggets.

Catch their eye

As for packaging, fruit and nut snacks are typically sold in bags and tubs. However, some retailers — specifically those in the convenience channel — are experimenting with packaging that will fit in the cup holder of a car for on-the-go snacking, Swiatkowski says.

One fruit and nut snack company innovating around the “eating on-the-go” trend is Diamond Foods with its Emerald Breakfast on the go! brand. It sells portion-controlled bags, each with contents containing 200 calories or less, in flavors such as Apples and Cinnamon, Berry Nut Blend and Breakfast Nut Blend.

However, while packaging innovation is important, Karapetian cautions retailers not to go overboard with the innovation.

“As a whole, packaging should include some form of innovation, but only if it benefits the customer experience on a practical level or does not substantially increase costs,” he notes.

Regardless of the format, consumers generally want to see what they’re getting before they buy.

“We don’t see it as a benefit to hide the product in the packaging,” Swiatkowski adds. “If you’re providing a good-quality product, show that to the customer. They’ll buy with their eyes as opposed to the packaging.”

Karapetian agrees.

“Our white quad-seal packaging is designed with tree branches and a transparent window to show the product inside with no visual obstruction,” he says. “We want to show our customers that our foods [contain] pure, simple ingredients free of preservatives — and that they haven’t been processed.”

Of course, in some instances, the product might require special packaging to protect it from degrading. For example, freeze-dried fruit benefits from gusseted upright foil packaging, states Jeff Hulme, vice president of sales — retail and store brand products, Modesto, Calif.-based Mercer Foods. In this case, retailers would want the packaging to be airtight and to prevent light penetration.

Looking specifically at natural and organic products, retailers years ago thought these products had to look like they were packed in the store, so they often used clear plastic containers or bags with a peel-and-ply label, says Bob Kaufman, divisional general manager, Woodstock Farms Manufacturing, Edison, N.J. People back then often associated plain and simple packaging with wholesome and organic products. Today, however, packaging for natural and organic fruit and nut snacks can be modern and attractive, and still be labeled organic or all natural — and consumers will buy it.

Regardless of how the package is designed, the message that the retailer is trying to convey needs to be honest, to the point and easy for the consumer to understand, Karapetian states. Whether its contents are gluten-free, non-GMO or gourmet, use the package to “toot your own horn” and display some pride and passion about the product.

And when it comes to freeze-dried fruit, bullet points could really make an impact, Hulme states. For example, “This package contains the equivalent of three apples” could help shoppers better understand how much product they’re purchasing.

Location, location, location

With merchandising, placement is everything, Swiatkowski states. One great area to merchandise fruit and nut snacks is the produce department, as consumers often browse this area and make impulse purchases. For example, cranberries, seeds, sliced almonds, walnuts and pecans could all be sold near the salad area in a topping display.

And to prevent confusion among consumers, make sure organic products are clearly labeled and merchandised separately from traditional products, Swiatkowski cautions.

Of course, the more areas in which a product is merchandised, the more likely it is to be seen and purchased. So merchandise various package sizes in multiple locations, Hulme says. Freeze-dried fruit specifically could be positioned in the produce section, the snack aisle, the baking aisle and in the front of the store for impulse purchasing.

Do offer more organic or high-protein fruit and nut snacks.

Don’t ignore the rising popularity of bold, spicy flavors.

Do merchandise fruit and nut snacks in various areas of the store.

Don’t package fruit and nut snacks in opaque packaging unless absolutely necessary.