A Sweet Deal

Americans are a busy bunch — and they’re more health-conscious than ever before. So it makes sense that fruit and vegetable brands have learned to “embrace the snacking occasion,” according to “Category Insight: Fruit and Vegetables,” a December 2013 report from global market research firm Mintel.

“North American consumers are looking for more healthy, convenient snack options,” the report states. “Fresh fruit already enjoys the healthiest reputation of any snack, considered very healthy by 84 percent of U.S. consumers, just ahead of raw vegetables at 83 percent. This has encouraged fruit and vegetable producers to develop a wider range of portable options, allowing consumers to easily use produce in new ways and locations.”

So it’s no surprise that a number of retailers recently have been adding freeze-dried fruit to their lineup of store brand snacks. Unlike many other dry snacks on the market, freeze-dried fruit does not contain added fats and oils. And unlike some other fruit products, freeze-dried fruit does not contain added sugar, preservatives and other not-so-healthful additives, says Jeff Hulme, vice president of sales, retail and store brands with Mercer Foods, Modesto, Calif. In fact, freeze-dried fruit, in general, contains about 90 percent of fresh fruit’s nutrients.

“Even though it’s freeze-dried, the product does not substantively change from its fresh format,” he says. “So it’s a clean, nutritious and convenient fruit option as a snack by itself or as an ingredient.”

Trends with traction

Freeze-dried fruit took off first at retailers known for stocking natural and organic products — such as Monrovia, Calif.-based Trader Joe’s and Whole Foods, Austin, Texas. As they’ve gained popularity under those retailers’ brands, mainstream grocers — such as Lakeland, Fla.-based Publix, Issaquah, Wash.-based Costco Wholesale and Ahold USA, Carlisle, Pa. — also have added them to their shelves, Hulme says. This trend is expected to continue growing.

As for product innovation, Hulme states that retailers could position freeze-dried fruit as a healthful snack toward different age groups. For instance, retailers could offer a freeze-dried banana in slices as an alternative to potato or corn chips for teens and adults, or in smaller pieces as a finger food for babies and toddlers.

And with the strategic roadmap used by Mercer, retailers soon could start positioning freeze-dried fruit as an occasional indulgence, too.

“A freeze-dried strawberry can be dipped in chocolate,” Hulme notes, comparing the texture of a chocolate-enrobed freeze-dried piece of fruit to that of a malted milk ball. “But the difference is that the fruit is in its full state. So we don’t make fruit concentrate with added sugars into a round shape and then coat it — we just coat the freeze-dried fruit as is.”

Freeze-dried fruit also is gaining popularity in the organic category, he adds.

Trends on the horizon

Given U.S. consumers’ demand for more portable options, pack sizes of freeze-dried fruit could get smaller. This downsizing already has happened in Europe, according to Mintel’s December 2013 “Category Insight: Nuts, Fruit Snacks and Snack Mixes” report.

“Smaller single-serve pack formats are growing in the category, with 50-gram and 40-gram products accounting for 5 percent of total launches in Europe in the 12 months to September 2013,” the report states. “Smaller 20-gram and 25-gram packs are also being experimented with as brands look to develop pocket-sized options that consumers can eat on the go.”

Given U.S. consumers’ demand for more portable options with their fruit snacks, pack sizes of freeze-dried fruit could get smaller.