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Ramp up salty snack sales

4/9/2016

It’s no secret that Americans love to snack, and the most popular snacks just might be the salty varieties. According to “Salty Snacks — US,” a January 2015 report from global market research firm Mintel, the salty snack category saw a dollar sales increase of 15 percent from 2009 to 2014 and is projected to grow by even more, 21 percent, from 2014–2019.

Despite the strong growth, however, the report does note that product marketers need to remain at the top of their game in this category because of the intense competition in the overall market for snack products.

Keep snacks clean

As in just about every other category of food, one major trend in the salty snack space is health and wellness.

“We are seeing consumers gravitate toward better-for-you options, be they nutritionally better such as lower fat/higher protein or ethically better,” says Gunther Brinkman, vice president of business development for Liberty, N.Y.-based Ideal Snacks Corp. He points out that shoppers are becoming less interested in “diet” foods and more interested in more well-rounded, natural foods with healthy ingredients.

“Brand owners are moving toward including natural sources of protein and fiber such as pulses and peas in the product in order to offer naturally sourced nutritional benefits,” Brinkman says.

Ignacio Garaycochea, vice president of sales and marketing for Lima Peru-based Inka Crops S A says he sees plantain and veggie mix ingredients growing in appeal, adding that products “rich in proteins, vitamins, minerals and fiber” could all improve the perception of a salty snack’s healthfulness.

Non-GMO, organic and gluten-free store brand salty snack options also remain important for retailers to have on the shelf.

“Organic and gluten-free are the new buzz words,” says Larry Deal, senior vice president with Conover, N.C.-based Copak Solutions Inc. “Even though they both have been around for a long time, they are popular with millennials, followed by Non-GMO Project Verified.”

He notes that any messaging on snack packaging should indicate that the product has actually gone through the official certification or verification process.

According to Scott Carpenter, president and CEO of Reading, Pa.-based Savor Street Foods, a first step for retailers toward more healthful salty snacks is a revamp of the ingredient label.

“Store brands should start by … cleaning up their ingredient panels, which in many cases can be achieved by simply swapping out one or two minor ingredients,” he says, also citing the need for retailers to offer more gluten-free items and convenient pack sizes.

Spice snacks up

While healthful options are important, retailers shouldn’t forget about taste when it comes to their store brand salty snacks. According to “2016 Trend Insight Report: Snack Happy,” a publication from Geneva, Ill.-based flavor company FONA International, snack consumers are increasingly interested in flavors that stand out.

“While cheese and plain rank near the top of salty snack flavors, there is a definite spice factor making strong inroads,” the report states, noting that some of the bitter flavors trending in the foodservice arena could show up in retail and citing matcha green tea chips and dill pickle-flavored chips as examples.

One flavor trend already seeing success on store shelves is that toward regional and ethnic flavors.

Brinkman points to New World Chili, Asian and Carolina barbecue flavors as examples.

Whatever the snack flavor, retailers could make it more distinctive by using the right wording.

Have “more descriptive flavor such as ‘Smoked Gouda’ rather than simply ‘cheese,’” advises Kelly McGolrick, senior director of category management and customer marketing for Massillon, Ohio-based Shearer’s Foods LLC, which manufactures a variety of salty snacks.

Show snacks off

To grow sales, retailers need to show their store brand salty snacks a little more love outside of product development, too.

The biggest mistake we see is retailers not prioritizing their store brands relative to the [national brands] with regard to merchandising, product branding and positioning,” Carpenter says.

According to Deal, retailers should employ a variety of marketing strategies to attract shoppers, including floor displays, signage explaining product benefits and product demos. They also should explain how the snack was produced or sourced.

McGolrick believes store brand salty snacks need to be given their fair share when it comes to displays.

“Store brands often miss the opportunity to meet the needs of the impulse shopper because they are displayed so much less frequently than national brands,” she says.

Having the right mix of snack products is important, too.

“Retailers should pursue an optimal tortilla chips assortment, including salted items, flavored and better for you,” McGolrick points out. “While staying on top of the trends is important, the maximizing the core distribution across the various subcategories is the key to store brand and category success.”

Retailers might also want to keep in mind that shoppers are seeking new varieties in the salty snack category.

“Buy shorter runs of packaging, lean on your supplier to help you identify emergent flavors, and either regularly rotate trendy flavors out of your line or run seasonal flavor promotions,” Brinkman says.

Last but not least, when offering new snacks, consumer education is also important.

“Innovation has to come along with information,” Garaycochea says. “Images and packaging with very good pictures can help with this.”

Do invest in product development that meshes with the health and wellness trend.

Don’t be boring; experiment with regional and ethnic salty snack flavors.

Do give store brand salty snacks their fair share of in-store displays.

Don’t forget to educate consumers when introducing innovative salty snacks.

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