Satisfy their cravings

For satisfying consumers’ sweet and salty cravings, it’s hard to beat the cookie and cracker categories. Nevertheless, retailers aren’t necessarily seeing the sales that they could for store brands, particularly for standard packaged cookies. According to “Cookies — US,” a September 2015 report from global market research firm Mintel, private label cookies saw only 0.6 percent growth in dollar sales in 2015. The company notes that “consumers are spending on more expensive cookie indulgences and turning away from what they perceive as value-conscious private label brands.”

Retailers could tap into current trends, however, to turn the situation around. For example, they could offer more healthful cookie and cracker products and also give consumers a taste of the premium quality they are seeking.

Highlight health attributes

When it comes to cookie sales, the offerings that possibly present the most growth opportunity for retailers are the better-for-you varieties, with Mintel predicting a 32 percent sales increase for them from 2015 to 2020. Standard and premium cookies are expected to see a much more modest increase of 13 percent.

The mindset of a cookie consumer is “I’m still going to have my treats, but I want to feel less guilty about eating them or feeding them to my family,” says Jonathan Walters, director of sales and marketing for Naperville, Ill-based Nu-World Foods, which does contract manufacturing and blending for a number of baking products. “While a cookie isn’t meant to be thought of as a healthy snack, it can still be the ‘best option’ among treats,” he adds.

Walters notes that some of his company’s customers are even putting probiotics into sweet snacks.

Mintel calls out the promise that healthier cookies could hold for store brands, noting “if private label options could leverage healthy attributes, consumers might embrace the options, as 56 percent of consumers largely perceive store brands as having the same quality as name brands.”

When it comes to more healthful crackers, Mintel’s upcoming “Crackers — US” March report says the benefits consumers are seeking most include high fiber, low/no salt and no artificial ingredients. Just as with cookies, the right ingredients can appeal to health-conscious consumers, with some specialty brands creating crackers with alternative bases such as almond and corn.

“These types of ingredients also help boost crackers’ nutritional profile and consumer perceptions of crackers as a healthy snack. Additionally, incorporating alternative bases can also help expand cracker flavor profiles beyond just savory or sweet varieties,” says Amanda Topper, senior food analyst for Mintel, noting though that many shoppers still prefer “regular” crackers with more familiar ingredients such as nuts, vegetables and seeds. One good thing crackers already have going for them overall is a “perceived health halo,” with 60 percent of shoppers considering them to be already healthier than other salty snacks such as potato chips.

Offer something new

Besides offering cookies and crackers with better-for-you ingredients, retailers could attract some attention to store brands in the segment by developing higher-quality products. One reason for stagnant sales of standard cookies, as noted by Mintel, has been the lack of innovation, as well as more premium varieties hitting store shelves. Meaning retailers might want to give standard cookie and cracker products a twist, as well as make sure they aren’t overlooking the premium tier for the category.

“Cookies are gaining in popularity among specialty food consumers, according to the latest research from the Specialty Food Association,” says Louise Kramer, communications director for the New York-based association. She says 2015 was the first year for “cookies, brownies, cakes and pies” to make it into the top five segments of the specialty foods market, citing data from the association’s “Today’s Specialty Food Consumer 2015” report.

In line with the focus on premium and health, another trend hitting store shelves in the cookie and cracker aisle is the thinning of traditional favorites.

“We are definitely noticing that ‘thin is in,’” Topper says. “Thinner products typically equate to a crispier texture and the ability for the consumer to eat more product for the same calorie count as the original product. Interest in health is a large driver of this trend, while thinner formats allow snackers to indulge responsibly.”

According to the “Sweet Baked Goods: U.S. Market Trends” report, released in December 2015 by the Packaged Facts division of Rockville, Md.-based MarketResearch.com, combo products are another means of conveying quality and grabbing consumer interest. The report notes the rise of “hybrid” varieties such as a cookie/brownie duo.

“Consumers seem to love seeing two favorite snacks blended into a new product form. Manufacturers of sweet baked goods have been taking existing product forms and combining them to create new product experiences,” the report states.

Rev up interest

In addition to offering more healthful and premium varieties, retailers should hone their marketing of store brand cookies and crackers, with targeting the right audience being a key factor to keep in mind. The Mintel “Cookies — US” report notes that younger shoppers seem to have the biggest sweet tooth when it comes to this category, with more than three-quarters of those in the millennial and Generation X age groups having purchased them. Hispanic millennials, in particular, “are the nation’s biggest fans of premium and health-focused cookies.”

The report also notes that parents of children under 18, particularly dads, are more likely to purchase healthier cookie varieties.

Retailers also shouldn’t forget about choosing the right flavor profiles for store brand cookies and crackers. According to Mintel, shoppers want to see more savory and sweet when it comes to cracker flavors, but spicy flavors and indulgent flavors are on the wanted list, too.

“There is opportunity for increasing the amount of sweet and indulgent cracker varieties, especially as more than half of consumers — 60 percent — are eating crackers by themselves,” Topper says. “Crackers can act as standalone snacks, especially with a more indulgent or rich flavor profile.”

When it comes to cookies, Packaged Facts notes that chocolate chip remains a top favorite, and that consumers prefer the softer varieties to the crunchy ones. Format is important too, with Walters noting that portable and single-serve products boast consumer appeal.

Whatever offerings retailers choose for their store brands in this segment, the most important thing to keep in mind is that the cookie or cracker needs to taste like a treat.

“Paramount [are] texture and taste and, in many cases, familiarity,” Walters says.

Do offer store brand cookies and crackers with health attributes.

Don’t ignore consumer interest in thinner cookies and crackers and “combo” varieties.

Do think premium in terms of quality.

Don’t neglect the snacking occasion; offer single-serve portable options.