Goodness Grazing
Grocers can take advantage of the current boom in produce-based snacks.
They're the perfect pick-me-ups, and millions of Americans reach for them each and every day. We're talking snack packs, singles, portion-controlled bags and all manner of grab-and-go goodness. The seemingly recession-proof popularity of snacks has marketers and retailers taking notice, especially as consumers' appetite for healthier options continues to surge.
U.S. retail sales of packaged snacks increased to nearly $64 billion in 2010, according to Packaged Facts' new “Snack Foods in the U.S., 4th Edition.” Citing reduced restaurant dining, busier lifestyles and rising health concerns as key reasons for the more than 20 percent leap in sales, the Rockville, Md.-based research firm further predicts that packaged snack sales will approach $77 billion by 2015.
Not to be out-noshed, produce suppliers are introducing scores of healthful, convenient and colorful snack options with enough pizzazz to entice American consumers to put down their candy bars and salty snacks in favor of fresh food.
Additionally, the newest numbers from Schaumburg, Ill.-based Nielsen show that produce snacking is up 4.6 percent for the 52 weeks ending July 16, 2011, versus the year prior.
”We believe the growth we're seeing today is only the beginning,” asserts Tristan Kieva, director of marketing for Ready Pac Foods Inc. in Irwindale, Calif. “Fresh produce-based snacks are going to expand to include more types of fruits and vegetables, and the accompaniments will become more varied — for example, adding healthy dips like hummus.” The result of these flavorful product innovations and pairings, predicts Kieva, will be continued momentum for the category.
Do produce-based snacks have the potential to outpace the almighty potato chip? “There will always be a place for salty snacks to satisfy those cravings of the American consumer, but the most frequently consumed snacks today are actually fresh fruit (No. 1) and vegetables (No. 2),” continues Kieva, pointing to data from the International Dairy-Deli-Bakery Association's (IDDBA) “Snacking Trends: A World of Opportunity.”
Snacking by the Numbers
Progressively health-conscious consumers and the rise of obesity in America have placed the quality of the snacks we consume under a microscope. While consumers still crave value and convenience from their snacks, more of them are demanding health benefits from their between-meal nibbles. They're reading ingredient labels and looking for products that are low in calories and high in nutritional value.
“There has been a noticeable increase in interest on the part of consumers to become more educated about healthy snacking in recent months, particularly to make more of an effort to consume many of the healthy snack items that are generally shopped in produce,” observes Joe Tamble, VP of sales for Kingsburg-based Sun-Maid Growers of California.
Convenient, portable, nutritious and shelf-stable, raisins and other dried fruits are benefiting from this interest. “Despite a sluggish economy, dried fruit sales have demonstrated tremendous growth — 30 percent since 2005 — as consumers have become more educated that these products provide the best features of any of the healthy snack items on the market,” notes Tamble.
Sun-Maid is responding with a variety of grab-and-go items for the health-minded, like its latest introduction: Mini Vanilla Yogurt Raisins. Each bag contains 10 small, guilt-free snack boxes featuring 60-calorie portions. The SRP range per bag is $2.79 to $3.19. What's more, many of Sun-Maid's single-serve items feature packaging that highlights such benefits as “Dried fruits are 100 Healthy Calories or less per Ounce!”
While petite portions represent one side of the healthful snack trend, snacks as meal replacements are gaining ground at the other end of the spectrum. Take the new Ready Snax Pacs from Ready Pac, for example. Each easily transportable snack variety in the line contains between 110 and 300 calories. With options like Veggies, Hummus & Sunflower Seeds (220 calories) or Apples, Granola & Yogurt (110 calories), consumers can fuel up on the go, without putting a dent in their diets.
Healthful Munchies for the Munchkins
American kids need better eating habits, and their parents need quick and easy lunchbox and after-school snacks. The produce industry has responded to both needs with fun and flavorful options featuring dynamic, kid-friendly packaging.
What kid can resist the smiley face on Buddy Fruits Pure Fruit Bites packaging or the tasty all-natural snacks made from 100 percent fruit inside? With no artificial flavorings or colors, and no preservatives, the new line of Fruit Bites joins Coral Gables, Fla.-based Buddy Fruits' squeezable pouches, which also feature 100 percent fruit.
Also in the back-to-school snack game is Crunch Pak of Cashmere, Wash. The sliced-apple expert has teamed with Disney to expand the Foodies product line with a Princess-themed edition featuring Cinderella's Carriage. The item comes in an assortment of healthful options, including apples, grapes, cheese and pretzels, all of which meet the USDA's dietary guidelines for children.
The Crunch Pak Princess Foodies line will eventually expand to feature other beloved Disney characters such as Aurora from “Sleeping Beauty,” Ariel from “The Little Mermaid,” Tatiana from “The Princess and the Frog,” and Belle from “Beauty and the Beast.”
“Produce-based snacks are gaining momentum,” says Tony Freytag, VP of sales and marketing for Crunch Pak, citing Perishables Group data that finds every value-added fruit and vegetable category increasing dollar and volume sales during the 52 weeks ending June 25, 2011, “with the strongest growth occurring for over-wrap fruit, fruit jars and cups, and snacking vegetables,” he notes.
Cool-as-a-cucumber Packaging
In the produce-based snack category, the product had better be fresh and flavorful, and the packaging, as cool as it comes. “Snack-ready packaging is key,” says Helen Aquino, marketing manager for Village Farms in Eatontown, N.J. The hydroponic greenhouse grower recently introduced Scrumptious Mini Cucumbers in 2-pound resealable Ziploc gusseted snacking bags.
Produce for Kids Courts Snackers
Produce suppliers and marketers from all sectors of the industry are getting behind the promotion of healthier eating habits for kids. Produce for Kids (PFK), an Orlando, Fla.-based organization that brings the fresh produce industry together with national supermarket retailers to raise funds for children's nonprofit organizations while educating families about the health benefits of fresh produce, is one such initiative.
Founded by John Shuman, president of Shuman Produce Inc., the Vidalia onion grower/marketer based in Reidsville, Ca., PFK offers healthful produce-based snack and meal ideas through its website at www.producekids.org.
Fifteen supermarket banners representing more than 2,900 grocery stores and fresh markets in 25 states supported the Produce for Kids spring campaign. Additionally, more than 50 fruit and vegetable growers sponsor the program, representing every major category in the fresh produce department.
“It's important for kids to understand that ‘snacks’ doesn't just mean chips or Rice Krispies Treats,” says Amanda Keefer, PFK marketing manager. “Our ‘Ideal Meals’ snack category offers a range of fun produce-based snacks that kids will get excited about creating and eating.” Because “kids love to dip,” Keefer notes that many of the site's most popular snacks are those with a side dip to the main snack.
The trend is consistent with Nielsen data, which found that within the snack category, products with apples are growing the fastest, and products with dips are growing faster than those without them (for the 52 weeks ending July 16, 2011, versus a year ago).
“Health-conscious consumers want low-calorie produce snacks with intense flavor and plenty of satisfying mouth appeal,” adds Aquino, who notes that “no-fuss items you can rinse and eat without the need for cutting or peeling” are in the greatest demand.
When Mann Packing Co. of Salinas, Calif., recently revamped its line of Mann's Snacks On The Go!, the company wanted to appeal to consumers' desire for greater variety of package sizes, particularly smaller servings. The line of fresh-cut vegetables and fruits is now available in an array of formats targeting different demographics. For example, the Snacks on the Go! tray is designed as a meal replacement, while the multi-packs are meant to appeal to the lunchbox set. Mann's triplet packs are three tear-away packages offering portable, portion-controlled eating.
Whether it's an energy boost in the afternoon or a sensible meal replacement, one thing is clear: Today's health-conscious consumer is satisfying the urge to snack with produce.
