Category Report: Salty Snacks

From the colors and copy alone on many salty-snacks packages and displays these days, a shopper may not even recognize a salty snack in-store. Lots of green, yellow, white and red; images of hearts and sunflowers; and copy such as 97% fat free, high in protein, Sensible Solution (trademark of Kraft/Nabisco), Smart Eating (trademark of Blue Diamond Growers), 2g net carbs, 0g trans fats, 0mg cholesterol, 5g whole grain, low sodium and baked. It all sounds so healthy, or at least not so terribly bad for you."There's been an acknowledgement for overall health and wellness when it comes to salty snacks," says Kent Spalding, director of marketing at Petaluma, CA-based Barbara's Bakery. "Though Barbara's Bakery has never had trans fats in our products, [zero trans fats] was definitely a significant move in the category. There are more multigrain chips available than there were in the past, and companies like Genisoy offer heart-healthy chip options as well. Our Barbara's Bakery's Cheese Puffs are baked, not fried, which has been another trend."Rockville, MD-based Packaged Facts, publishing division of MarketResearch.com, says in its 2006 Snack Food Trends in the U.S. report that "potato chips lost $81 million in Information Resources Inc.-tracked sales from 2001 to 2005 while sales of corn snacks (excluding tortilla chips) fell $95 million." Nut snacks and meat snacks had the largest gains, 7.2% and 6.6% respectively over the same period, reiterating the fact that consumers are reaching for so-called "healthier" salty snacks."Overriding trends in salted snacks are, therefore, toward mitigating the unhealthy attributes of certain products -- for example by removing trans fats from potato chips by moving to baked varieties, or by emphasizing whole grains in crackers and rice cakes," the report states.But how does it affect the display world? Brands are obviously using healthier messaging on P-O-P and packaging, such as the Frito-Lay sunflower, and retailers may be requesting healthier choices to stock in-store, crowding the shelf set, but chains are still seeking prepacked shippers and aisle messaging for the center store. Essentially, brands are spending a lot of effort to look healthier while the P-O-P challenges remain the same.Secondary SignificanceBoth marketers and retailers agree that P-O-P and marketing messages are most effective in perimeter locations of stores, particularly in supermarkets. But if a brand can't score the perimeter, any secondary placement will do, according to Diamond of California, Stockton, CA. "It is very important. When Emerald brand snacks are displayed, the lift is over 500%," says Bendee Anzures, director of marketing at Diamond of California.At Publix Super Markets, Lakeland, FL, Maria Brous, director of media and community relations, says salty snacks are being merchandised across the store. And Dan Donovan, company spokesperson for Pittsburgh-based Giant Eagle agrees that the perimeter is most effective, yet says salty snacks are still primarily housed in the center of the store. When it does come to getting product off the shelf -- he says the chain likes to have a mix of displays for mainstay salty snacks such as chips as well as the more health-oriented items -- Donovan says the key is to keep it new. "More times than not, the preference is for displays with shorter life spans," he says. "Customers notice when a particular display is in-store for an extended period of time. Doing this takes away from the perception of freshness." Donovan's advice to marketers and brand managers is that "bigger is not always better. Implementing smaller displays with less product allows for a better perception of freshness."Brous agrees that a variety of temporary display pieces give retailers more merchandising options. She says the only way a higher-quality display would receive a longer display time is "if they look good and are flexible enough to work with the ever-changing merchandising themes."Blue Diamond Growers, Sacramento, CA, finds that it's hard to get the payout on a permanent display, says Bob Carroll, senior marketing manager. He tends to stick to shippers with rotating headers, sidekicks and tray displays. Joe Papiri, vice president of sales and marketing at Los Angeles-based Snak King, says they are working on some permanent displays for some of the brand's higher-value merchandise. "The issue is getting enough dollars or refills to amortize the costs."A Focus on PackagingWith health issues at the forefront for many consumers, Carroll says it has become a bit easier to get in-store placement for such lines as the whole natural almonds; yet many marketers find that space is at a premium."There's over 30,000 SKUs in the grocery store, so you're not only competing in your category, but with all other items looking for a way to get in front of the consumer," Barbara's Bakery's Spalding says. "Packaging is the primary way to communicate and capture consumer attention. Secondary is through periodic discounts, in-store point-of-sale, displays and signage."Many marketers will use shelf talkers, where allowed, but if you don't happen to be one of the big boys -- think Kraft or Frito-Lay -- with their sizable salesforce, then monitoring signage and displays can be an issue. Both Kraft and Frito-Lay declined to be interviewed for this story. Jared Dougherty, spokesman, Frito-Lay, Plano, TX, did have this response when asked specifically about the sunflower imagery being used on Lay's potato chips packaging and displays: "Packaging offers another opportunity to convey the product benefits, whether the benefits are great taste, nutritional information or promotional items. The packaging reinforces the messages found across the brand's marketing efforts including point-of sale, advertising and online."Michael Sands, founder and CEO of LesserEvil Brand Snack Co., Tuckahoe, NY, says he invests in a silent salesperson -- the package. "Our box works 24/7. Our marketing and our P-O-S is our packaging." He says the shape alone helps the lines of kettle corns and potato snacks stand out in a world of bags. On-shelf he aims to create a rainbow effect, bright colors and multiple flavors all in the same shape. Plus, with four sides to a box, he's able to load up the packaging with the product's story, nutrition panel, company contact information and more. Key to selling from the shelf for both ConAgra Foods and Jack Link's Beef Jerky is creating impact. "Jack Link's packages are consistent in color and design, with a high-impact white brand logo including a unique steer horn element, and a striking red and black background. Each product type has unique design elements to help clearly identify what the product is and to differentiate product lines," says Mark Catlin, senior brand manager at the Minong, WI-based company.For a cleaner shelf look, Stan Jacot Jr., vice president of marketing, snack foods, for Omaha, NE-based ConAgra Foods, says the company developed the "Calorie Continuum." Specialty flavors are on the top shelf, standards such as butter or salt sit on the middle shelves with better-for-you options on the bottom. "Individual brands are featured top to bottom across all shelves, while package sizes run from left to right, with larger sizes on the left," he adds.Taste Still MattersAs Snak King's Papiri says, to be truly successful, you have to play up healthy benefits without sacrificing taste. LesserEvil's Sands agrees. He created the company precisely because he believed people had to choose between healthy, boring snacks or unhealthy, tasty snacks, and he wanted to give consumers a third option -- "indulgent and healthy." In 2005, LesserEvil debuted its line of all-natural, low-fat, gourmet kettle corns and this year launched an all-natural potato snack line, Krinkle Sticks. And yes, he knows there are limits to just how "healthy" his products are. "We're healthier than Doritos, but we're not healthier than carrots and broccoli," he adds. "We try to be upfront, I mean 'evil' is in our name." Just as the trend in eco-friendly products and services is to not make claims you can't support, Sands says healthy marketing is about being truthful. A study conducted by New York-based GfK Roper Public Affairs & Media, Cooking Light Insight 2007, reported that 51% of American adults read food nutrition labels.Sands adds, "There are a lot of wolves in sheep's clothing and people are getting more critical." He says many companies are grabbing onto the no trans-fats fad, yet their products still contain 11 grams of fat per serving. "Consumers are going to start looking at the total package, the total ingredients. We put five or six claims -- such as gluten-free, no trans-fatty acids -- on each product package. One or two is not enough anymore."As Spalding, of Barbara's Bakery, says, "Be true to your product. Ask yourself what is the value of that product to your consumer and present it in a way, both visually and with the messaging, that best represents what you're trying to get across."Portion ControlWith the trend of discerning consumers paying close attention to the nutritional value of what they eat, is snacking a distant memory? Not at all. According to the fall 2005 national consumer survey by Simmons Market Research Bureau, New York, 25% of adults often snack between meals, and 13% eat several small meals during the day. Packaged Facts reports that snacking is so prevalent that a third of Americans regularly skip meals, often grazing on snacks as a substitute. Because of this -- portion control, convenience and portability top consumer concerns marketers need to address in both packaging and displays.To take advantage of the portion control and weight management trend, many brands have developed 100 calorie packaging. General Mills' 100 Calorie Chex snacks in cheddar and chocolate caramel have done well enough that in May the company introduced a third flavor, strawberry yogurt, says Steve Finnie, marketing manager, salty snacks and popcorn.Individual serving packages have also been introduced by Diamond of California for its Emerald brand, and the brand's traditional snack nuts are also packed in ergonomic plastic containers that fit into car cup holders and Emerald's glazed nuts and trail mixes are packaged in atmosphere-controlled foil pouches. "In our upcoming freestanding insert, we also point out that the lid of our Emerald canisters 'helps you easily measure out your daily dose of nuts!' The lids hold 1/3 cup, which is the amount of nuts recommended by the Food and Drug Administration for heart health," Anzures says. Emerald's current ad campaign's message is "a source of natural energy for your 3 o'clock pick-me-up." It's carried out through a TV spot starring actor and singer Robert Goulet that premiered during this year's Super Bowl and in a May freestanding insert that was dropped nationwide.Another aspect of convenience is being able to claim that products are "mess free." Brett Ocholik, vice president, marketing, at Jack Link's Beef Jerky says because the product allows for "no mess eating," it's perfect for people on the go. The company has introduced portion-control offerings and will soon debut an organic line of products. "Consumption of snacks throughout the day or 'grazing' has grown so common for busy, on-the-go Americans that even mealtimes are increasingly likely to resemble snacking occasions. For this reason, communicating the healthy attributes of Jack Link's products has been a big part of our brand strategy," Catlin says. "In addition to the mandatory nutrition facts and ingredients statements on the reverse side of every package, each of the Jack Link's Beef Jerky, Steak Nuggets, or Tender Cuts packages has a horizontal band on the front of the package communicating key nutrition information such as 'x% fat free,' 'x grams of protein' or 'x grams of carbs.'"Indulgent Snackers ExistBob Carroll, of Blue Diamond Growers, says there is still a market for traditional salty snacks. These consumers tend to be younger and predominantly men who are interested in strong, full flavors. On products such as the jalapeno smokehouse flavor almonds, "bold" and "intense taste" are printed on the packaging. Value-added promotions, such as a tie-in with ESPN to win a football fantasy cruise or with the World Poker Tour also work well through in-store messages, print and TV advertising. He says floor displays work as great centerpieces for these types of promotions. Promotions are usually done at least twice a year. In the fall, it tends to be some type of football component, and in the spring, it's baseball, golf or poker.Diamond of California is out for men, too, and has found success by cross-merchandising Emerald nuts with beer. "For the last two Super Bowl promotions, we've teamed with Anheuser-Busch for their Bud Bowl displays," Anzures says. "There were approximately 15,000 Emerald/Bud Bowl displays in the nation's grocery stores prior to the 2007 Super Bowl. We are looking to expand cross-merchandising across nonalcoholic beverages as well. "By partnering with categories such as beer and nonalcoholic carbonated beverages, we can leverage those products' high household penetration and extremely high purchase cycle. Plus, carbonated beverages are displayed 52 weeks per year, which enables brands like Emerald to increase display opportunities."Snak King's Papiri agrees that cross-merchandising with beverages is important; he also looks for opportunities to merchandise with produce and salsas, citing success when the company's Guacachips were merchandised with avocados.ConAgra Foods not only looks for opportunities to merchandise with beverages but brings various ConAgra Foods brands together that have a similar consumer base to maximize investment, says Jacot Jr. For its 2007 Super Bowl "Party Like A Pro" promotion, ConAgra Foods partnered with Pittsburgh Steelers football player Jerome Bettis. Nine products were merchandised together, including Orville Redenbacher's, Slim Jim and Pemmican snack items. P-O-S drove shoppers to a sweepstakes website where they could enter the chance to win Bettis- autographed memorabilia, a plasma television and more. Jack Link's Catlin says whatever the promotion is, it's key to make sure that all components tie in to each other. The company has aligned all displays more closely with brand strategy and initiatives by standardizing the look and feel of shippers, displays, racks and header cards to reflect the brand's new logo, packaging, tagline and other graphic elements. "In our new Sasquatch Games consumer promotion, we have themed displays and packaging which tie to our TV, online and print advertising campaign and microsite," he adds. "These display vehicles help consumers make a connection between the viewing of Jack Link's advertisements and seeing Jack Link's product in a retail environment. We strategically use promotionally themed displays, such as our 'Eat Big Win Big Sweepstakes' in 2006 and 'ESPNU Championship Series' in 2007, and co-promotions with Coke/Vault to reach key targets such as sports enthusiasts, TV viewers, Internet users/game players and loyal users of other complementary beverage brands."

Category Report: Salty Snacks

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