Sweet and Salty/Savory Snacks in the U.S.: Lifestyle Marketing and New Product Development in the New Economy, 3rd Edition

• Publication date: September 2009

Estimating U.S. retail sales of packaged snacks at $68 billion in 2008, Packaged Facts projects sales to near $82 billion by 2013, a total market increase of 20%. Despite the dampening effects of global recession, consumers are snacking more than ever, thanks to pull-backs in restaurant dining, harried lifestyles that reduce opportunities for sit-down meals, and a growing consensus that several small meals or snacks during the day are actually h...

Estimating U.S. retail sales of packaged snacks at $68 billion in 2008, Packaged Facts projects sales to near $82 billion by 2013, a total market increase of 20%. Despite the dampening effects of global recession, consumers are snacking more than ever, thanks to pull-backs in restaurant dining, harried lifestyles that reduce opportunities for sit-down meals, and a growing consensus that several small meals or snacks during the day are actually healthier than the three-squares paradigm. In addition, as the sluggish economy fans job-loss fears, health insurance woes, and environmental and social justice anxieties, snack consumers are embracing a “value” mentality that prizes quality and “whole” ingredients, “better for you” recipes, and green production practices. While low prices are always a draw, consumers are looking for snacks with fewer additives or preservatives, and even spending extra dollars for organic and premium snack treats that can boost their flagging spirits over the long climb back to prosperity.


To accommodate the complexities of the U.S. market within shifting economic and cultural contexts, and to contextualize these trends within the global marketplace, this report investigates not only the raw numbers associated with product launches, sales and market positions, but also the lifestyle patterns and the financial, social and political concerns that contribute to the rise and fall of snacking trends. While organizing snack products into sweet and salty/savory categories as in previous editions, this edition segments the discussion into four topic chapters based on lifestyle and industry classifications—Value and Traditional, Functional and Fortified, Natural and Organic, and Premium and Gourmet. The analysis focuses on shelf-stable, packaged snacks sold throughout the full retail universe, from national brands and private labels to the often edgier products of niche gourmet and organic players.


Custom Packaged Facts survey data inform our research into snacking attitudes, purchasing patterns, and health and wellness across consumer demographics, with Information Resources, Inc. sales data and Product Launch Analytics data on new product introductions helping to quantify key trends marketwide. Product profiles ranging from multinational brands such as Frito-Lay and Hershey to start-up and boutique brands such as Sahale Snacks and Endangered Species provide a nuanced look into the relationship between consumer attitudes and product development, reflecting the running theme of socially conscious marketing as an important value driver in economic times good and bad.


Research Methodology


The information contained in Sweet and Salty/Savory Snacks in the U.S. was obtained from primary and secondary research. Primary research entailed consultation with industry participants; on-site examination of retail venues; and extensive Internet canvassing. Secondary research entailed data-gathering from a range of business sources, including trade publications and newsletters; articles in consumer business newspapers and magazines; government agencies; industry associations; annual reports, 10Ks and other financial releases from public companies; and other reports by Packaged Facts.


Sales estimates are based on data from sources including Information Resources, Inc.’s (IRI) InfoScan Review for mass-market channels (supermarkets, drugstores and mass merchandisers other than Walmart), Progressive Grocer’s annual “Consumer Expenditures Study,” and SPINSscan data from SPINS, Inc., which tracks grocery sales in natural supermarkets. Data on new product introductions are from Product Launch Analytics, a Datamonitor service, based on the specified snack product segments.


Our analysis of consumer attitudes and demographics primarily derives from Experian Simmons’ Fall 2008 National Consumer Study, which is based on the responses of approximately 25,000 respondents age 18 or over, and from Packaged Facts’ February 2009 online poll of 2,600 U.S. adults, conducted to measure specific food purchasing patterns and attitudes.



About Author



Marigny Research Group, Inc. (MRG) is a producer of customized private-label market research reports, offering services including title development, research, market analysis, writing, editing, proofreading, desktop production, and marketing support, with a network of market research professionals that extends across the United States. Since 1986 MRG has authored more than 200 reports published under the Packaged Facts imprint, covering consumer packaged goods, demographic, retail, and financial markets. Within these and other areas, MRG has developed complete report lines, most recently focusing on the burgeoning market for pet products and services.

Spirits Industry in the United States

Chapter 1: Executive Summary

Introduction

Scope of Report

Two Categories: Sweet and Salty/Savory

Snack Classifications and IRI Retail Sales Breakouts

Report Methodology

U.S. Market Trends

U.S. Snack Market at $68 Billion

Figure 1-1: U.S. Retail Sales of Snack Foods: 2004, 2008 and 2013 (in billions of dollars)

IRI-Tracked Snack Market Dollar Growth

Consumers Show Gentle Shift Toward Salty/Savory

Salty Snack Segment Shows Greatest Dollar Increase Over 5 Years

Table 1-1: Share of IRI-Tracked Sales of Sweet and Salty/Savory Snacks by Segment, 2004 vs. 2008 (percent)

Value and Traditional Snacks

Austerity Measures May Be Long-Term

Evolving Snack Habits Parallel Consumer Focus on Value, Comfort

Snack Marketers Streamline, Innovate, Invest

Fragmented Lives See More Frequent Snacking

Store Brand Snacks Blaze Ahead on Grocery Shelves

Sales Data Show Better-for-You Trend in Snack Choices

Functional and Fortified Snacks

Willingness to Pay Premium for Nutrient-Rich Foods

Function: Inherent or Added Benefits, Fewer Undesirables

High and Low Health Claims Among Global Snack Launches

Functional Ingredients to Watch

Packaged Facts Poll Tracks Functional Preferences

Yogurt Snacks, Food Bars Dominate in Functional Foods

Yogurt Provides Inherent and Added Benefits

Food Bars: Vast Adaptability to Nutritional Niches

Natural and Organic Snacks

Consumers Call for Authenticity in Natural Claims

From Green Valleys to Planetary Ethics

Backing Up “Natural” with Specific Claims

Dannon’s Natural Yogurt as Brand Leader

Popcorn, Potato Chips Are High in Natural Claims

Frito-Lay: Better-for-You and Natural

Natural/Organic Food Shopper Psychographics

Newman’s Own Organic Snacks Donate Millions to Charities

Premium and Gourmet Snacks

Gourmet Snacks Borrow from Natural and Organic Trends

Gourmet Consumers Difficult to Pin Down

Love of Foreign Foods Correlates with Tastes for Upscale, Exotic

Premium, Gourmet Snacks Emphasize Experience of Eating

Mission-Driven Companies Support Indulgence Through Good Works

Upscale, Artisan Tags Further Define Premium and Gourmet Snacks

Chocolate Dominates in Premium Sweet Snacks

Flavor Crossovers in Salty/Savory Snacks

Creative Blends of Superior Sweet and Savory Ingredients

Funky Monkey Fruit Snacks Make Super Berries Crunchy

Dagoba Chocolates Uses Acai, Ginger, Nuts, Rosehips, Chili

Chapter 2: Snacking Trends Overview

Introduction

Scope of Report

Two Categories: Sweet and Salty/Savory

Snack Classifications and IRI Retail Sales Breakouts

Report Methodology

U.S. Market Trends

U.S. Snack Market at $68 Billion

Table 2-1: U.S. Retail Sales of Snack Foods, 2004-2008 (in billions of dollars)

Supermarkets Account for 42% of Snack Market

Figure 2-1: Share of U.S. Snack Market Sales by Retail Channel, 2008 (percent)

IRI-Tracked Snack Market Dollar Growth Since 2004

Table 2-2: IRI-Tracked Sales of Snack Foods, 2004-2008 (in millions of dollars)

IRI-Tracked Growth in Sweet Snacks

Table 2-3: IRI-Tracked Sales of Sweet Snacks, 2004-2008 (in millions of dollars)

IRI-Tracked Growth in Salty/Savory Snacks

Table 2-4: IRI-Tracked Sales of Salty/Savory Snacks, 2004-2008 (in millions of dollars)

Sweet Snacks Claim 57% of IRI-Tracked Sales

Figure 2-2: Share of IRI-Tracked Snack Sales: Sweet vs. Salty/Savory, 2008 (percent)

Table 2-5: Total Growth in IRI-Tracked Sales of Snack Foods by Category: Sweet vs. Salty/Savory, 2004 Through October 2008 (in millions of dollars)

Consumers Show Gentle Shift Toward Salty/Savory

Figure 2-3: Consumer Preference for Sweet or Salty Snacks, 2004 vs. 2008 (percent of U.S. adults)

Salty Snack Segment Shows Greatest Dollar Increase Over 5 Years

Table 2-6: IRI-Tracked Dollar Sales of Snacks by Product Segment, 2004-2008 (in millions of dollars)

Figure 2-4: Top Five Snack Food Segments by IRI-Tracked Dollar Growth, 2004 Through October 2008 (in millions of dollars)

Table 2-7: Share of IRI-Tracked Sales of Sweet and Salty/Savory Snack Foods by Segment, 2004 vs. 2008 (percent)

Yogurt Gains in Sweet Snacks Market Share

Table 2-8: Share of IRI-Tracked Sales of Sweet Snack Foods by Product Category, 2004 vs. 2008 (percent)

Uptick in Popularity of Less-Processed “Ingredients” as Snacks

Table 2-9: Share of IRI-Tracked Sales of Salty/Savory Snack Foods by Product Category, 2004 vs. 2008 (percent)

Private Label Gives Big Brands a Run for Their Money

Table 2-10: IRI-Tracked Sales of Private Label Snacks, 2004-2008 (in millions of dollars)

Recession Still Looming

Rising Food Costs

Table 2-11: Consumer Price Index for Food at Home and Selected Snack Categories: 1999-2009

But Desire to Simplify, Focus on Health Can Work in Favor of Snacks

U.S. Snack Market Projected at $81.6 Billion in 2013

Table 2-12: Projected U.S. Retail Sales of Snack Foods, 2008-2013 (in billions of dollars)

International Market Outlook

Worldwide Snack Introductions Climb Steadily

Table 2-13: Global Snack Product Introductions by Geographic Region, 2008 (number)

Harried Lifestyles, Globalization Spur Sampling

Multifaceted Snacks Market Juggles Tastes, Agendas, Finances

Environmental, Social Concerns Add Complexity

Yogurt, Food Bars, Fruit Snacks Play Up the Healthy Side of Sweet

Table 2-14: Global Sweet Snack Product Introductions by Geographic Region, 2008 (number)

Table 2-15: Global Salty/Savory Snack Product Introductions by Geographic Region, 2008 (number)

“Upscale” Claims Edge Out “Natural”

Table 2-16: Global Snack Product Introductions by Top Package Tags/Claims, 2008 (number and percent)

Skeptical Consumers Look for More Measurable Claims

Chapter 3: Value and Traditional Snacks

Austerity Measures May Be Long-Term

Evolving Snack Habits Parallel Consumer Focus on Value, Comfort

Snack Marketers Streamline, Innovate, Invest

Consumers Look for Simple, Real, Authentic Across Lifestyle Choices

Fragmented Lives See More Frequent Snacking

Table 3-1: Percentage Who Agree a Lot with Selected Psychographic Statements About Diet and Nutrition, 2004 vs. 2008 (U.S. adults)

Both Men and Women Lack Prep Time for Healthy Meals

Puzzling (Small) Reduction in Women’s Preference for Easyto-Prepare Foods

Cultural, Economic Realities Edge Out Traditional Family Meals

Former “Junk Food” Snacks Must Take Up Nutritional Slack

Table 3-2: Percentage Who Agree a Lot with Selected Psychographic Statements About Diet and Snacking: Overall and by Gender, 2008 (U.S. adults)

Nutrition, Convenience, Comfort Increasingly Driving Choice

Even Low Income Consumers Looking for More Than Just Low Price

Private Label Sheds Grungy Image for High Quality Chic

Store Brand Snacks Blaze Ahead on Grocery Shelves

Table 3-3: IRI-Tracked Sales of Private Label Snacks by Product Segment, 2004 vs. 2008 (in dollars)

Whole Foods, Trader Joe’s, Safeway Labels Target Consumer Values

75% of Bloggers Give Thumbs Up to Whole Foods 365 Brand

7-Eleven Develops Hundreds of “7-Select” Snack Items

Bundling 7-Select Snacks with Foodservice Options Increases Visibility

Consumers Like Snacks That Multi-Task as Meals or Ingredients

Sales Data Show Better-for-You Trend in Snack Choices

Table 3-4: Sweet and Salty/Savory Snacks: IRI-Tracked Dollar Growth: 2007 vs. 2008 (in millions of dollars)

Table 3-5: Sweet Snacks: IRI-Tracked Dollar Sales and Market Share by Segment, 2004 vs. 2008 (in millions of dollars)

Table 3-6: Sweet Snacks: Percentage Change in IRI-Tracked Volume and Unit Sales, 52 Weeks Ending October 2008 vs. Year Ago Period

Household Usage Rates Also Tilt Toward Healthier Snacks

Table 3-7: Percentage Who Use Selected Sweet Snacks, 2004 vs. 2008 (U.S. adults)

Love Affair with Sweets Unlikely to Fizzle Out

Women Feel More Guilt About Indulgence Than Men

Yogurt and Food Bars: The Virtuous Snack (or Breakfast or Lunch)

Yogurt’s Popularity Makes Former “Health Food” an Everyday Snack

Yogurt Cups Command Lion’s Share of Yogurt Segment

Table 3-8: Yogurt and Food Bars: IRI-Tracked Dollar Growth, 2004 Through October 2008 (in millions of dollars)

Portability, Convenience, Fun Ingredients Add to Yogurt Snacks’ Appeal

Food Bars Mix Crunch, Nutrition, Convenience Worldwide

Food Bars Handy for Eating on the Run

Figure 3-1: Meal of Day Considered Most Important: Men vs. Women, 2008 (percent of U.S. adults)

Comfort and Familiarity May Trump Health: M&Ms Mix Sweet Nostalgia with Marketing Savvy

Colorful Candies Adapt to Cultural Needs, Change

New Formulations Key, But Consumer Relationships Make M&Ms Iconic

“My M&Ms” Allow Personalized, Customized Treats for Events, Occasions

Salty/Savory Snacks Trail Sweets in Dollar Value, Growth

Table 3-9: Salty/Savory Snacks: IRI-Tracked Dollar Growth and Market Share by Segment, 2004 vs. 2008 (in millions of dollars)

Table 3-10: Salty/Savory Snacks: Percentage Change in IRITracked Volume and Unit Sales, 52 Weeks Ending October 2008 vs. Year Ago Period

Salty Snacks Account for Majority of Category

All-American Potato Chips Reign as King of Salty Snacks

Table 3-11: Potato Chips: Percentage Change in IRI-Tracked Volume and Unit Sales, 52 Weeks Ending October 2008 vs. Year Ago Period

Table 3-12: Salty Snacks: IRI-Tracked Dollar Growth and Market Share by Subsegment, 2004 vs. 2008 (in millions of dollars and percent)

Comfort and Familiarity Characterize Potato Chip Sales

Table 3-13: Household Usage Rates for Potato Chips by Type, 2004 vs. 2008 (percent of U.S. adults)

Volume, Unit Sales Down in Most Salty/Savory Segments, Despite Dollar Growth

Table 3-14: Percentage Who Use Selected Salty Snacks, 2004 vs. 2008 (U.S. adults)

Frozen Hot Snacks Fill In as Meals, Ingredients, at Home and Work

Frito-Lay Brand Accounts for Majority of Potato Chip Sales

Newest Challenge to Increase Women’s Consumption of Salty Snacks

New Focus on Women’s Values, Relationships

Three-Pronged Strategy Focuses on Design, Health, Relationships

Revamped Packaging in Soothing Tones Begins with Baked Lays

Reorganized Aisle Displays Improve Visibility of “Better for You” Snacks

Informal Poll Sees Mixed Reactions to “Women’s Aisle” Idea

“Only in a Woman’s World” Highlights “Fearlessly Female” Friendships

Campaign Success Too Early to Call

Chapter 4: Functional and Fortified Snacks

Consumers Push for Healthier Snack Options

Willingness to Pay Premium for Nutrient-Rich Foods

Functional Growth Rate Healthy Even in Developing Countries

Functional Foods of All Sorts Defy Global Recession

Function: Inherent or Added Benefits, Fewer Undesirables

High and Low Health Claims Among Global Snack Launches

Table 4-1: Global Snack Product Introductions: Functional/Fortified and Related Claims, 2008 (number and percent)

Functional Ingredients to Watch

Figure 4-1: Key Functional References in Global Snack Food Introductions, 2008 (number)

High Fiber, High Protein Are Top Claims; Probiotics Pique Interest

Table 4-2: U.S. Snack Product Introductions: Functional/Fortified and Related Claims, 2004 vs. 2008 (number and percent)

Packaged Facts Poll Tracks Functional Preferences

Table 4-3: Nutritional Content Sought in Food Purchases in Last 12 Months, Overall and By Gender: Packaged Facts Poll Respondents, February 2009 (percent of U.S. adults)

Table 4-4: Nutritional Benefits Sought in Food Purchases in Last 12 Months, Overall and by Gender: Packaged Facts Poll Respondents, February 2009 (percent of U.S. adults)

Some Correlation Between Age Bracket and Nutritional Targets

Younger Adults Prize Beauty, Energy, and Immunity

Table 4-5: Nutritional Content Sought in Food Purchases in Last 12 Months, Overall and by Gender: Gen Y Respondents to Packaged Facts Poll, February 2009 (percent of U.S. adults age 18-29)

Table 4-6: Nutritional Benefits Sought in Food Purchases in Last 12 Months, Overall and by Gender: Gen Y Respondents to Packaged Facts Poll, February 2009 (percent of U.S. adults age 18-29)

Table 4-7: Patterns by Age Bracket for Agreeing a Lot with Psychographic Statement, “I Am Usually Quick To Try Out New Nutritional Products, 2008 (percent and index of U.S. adults)

Functional Concerns Relatively Lower, Gender-Neutral for Gen X

Boomers Balance Vanity, Frailty in Nutritional Concerns

Table 4-8: Nutritional Content Sought in Food Purchases in Last 12 Months, Overall and by Gender: Gen X Respondents to Packaged Facts Poll, February 2009 (percent of U.S. adults age 30-44)

Table 4-9: Nutritional Benefits Sought in Food Purchases in Last 12 Months, Overall and by Gender: Gen X Respondents to Packaged Facts Poll, February 2009 (percent of U.S. adults age 18-29)

Table 4-10: Nutritional Content Sought in Food Purchases in Last 12 Months, Overall and by Gender: Baby Boomer Respondents to Packaged Facts Poll, February 2009 (percent of U.S. adults age 45-64)

Table 4-11: Nutritional Benefits Sought in Food Purchases in Last 12 Months, Overall and by Gender: Baby Boomer Respondents to Packaged Facts Poll, February 2009 (percent of U.S. adults age 18-29)

Seniors Skew to Nutrition

Table 4-12: Demographic Patterns for Agreeing A Lot with Psychographic Statement, “Nutritional Value Is Most Important in the Foods I Eat,” 2008 (number, percent and index of U.S. adults)

CPG Partners with Consumers Toward Healthier Snacking

Consumer Distrust of Packaged Snacks Gradually Wanes

Function Through Inherent Benefits or Fortification

Table 4-13: Demographic Patterns for Agreeing a Lot with Psychographic Statement, “Most Snack Foods Are Not Healthy,” 2008 (number, percent and index of U.S. adults)

Yogurt Snacks, Food Bars Dominate in Functional Foods

Yogurt Provides Inherent and Added Benefits

Table 4-14: Global Yogurt Introductions: Selected Functional/Fortified and Related Claims, 2008 (number and percent)

U.S. Yogurt Sales Top $3.7 Billion; Unit Sales Up Despite Price Increase

Table 4-15: Yogurt and Yogurt Drinks: IRI-Tracked Dollar Sales, 2004 Through October 2008 (in millions of dollars)

Table 4-16: Top Yogurt Brands by IRI-Tracked Dollar Sales, 52 Weeks Ending October 5, 2008 (in millions of dollars)

Dannon’s Probiotic Activia Yogurt Snack Maintains High Profile

Danone Advertising Continues Despite Recession

“100% Healthy” Portfolio Produces Billions Worldwide

“Activia Challenge” Promises Better Digestion in Two Weeks

New Activia Fiber Snacks and Dairy Drinks Round Out Selection

Dissatisfied Consumers File Lawsuit

Tuberz Yogurt Snacks for Kids Ride Functional Wave

Stonyfield and Fage Get High Marks, Too

Food Bars: Vast Adaptability to Nutritional Niches

Table 4-17: Global Food Bar Introductions: Selected Functional Claims. 2008 (number and percent)

Food Bars Top $2 Billion in IRI-Tracked Sales

Table 4-18: Food Bars: IRI-Tracked Dollar Sales, 2004 Through October 2008 (in millions of dollars)

Table 4-19: Demographic Indices for Purchasing of Food Bars: By Type, 2008 (U.S. adults)

Clif, Power Bars Top Energy/Sports Function

Table 4-20: Top Three Food Bar Brands by IRI-Tracked Dollar Sales, 52 Weeks Ending October 5, 2008 (in millions of dollars)

Sports Snacks Big on Protein, Portability

Bringing Taste Up to Par

ProSource’s Supreme Protein Bar: Tastes Like “Gourmet Candy”

“Team Supreme” Endorsements Hype Great Taste, Muscle-Building Power

Average Joes Take to the Candy Part

Breakfast and Snack Bars Foreground All-Around Nutrition

Probiotics Hit Cereal Bar Market, Including Max Crunch

Attune Foods Pushes Digestive Wellness

Wellness and Gut Health Growing Nearly Synonymous

Savory, Bakery Snacks Play “Wholeness” Card With Grains, Fiber

Steer Clear of Simply Fortifying Junk Food: Retool Recipes Instead

Especially in Kids’ Snacks, Keep It Real

Nabisco’s Wheat Thins Fiber Up the Crunch

Food Should Taste Good Combines Fibrous Function with Refreshing Lack of Coyness

Functionality Through Natural or Organic Claims

Kudos for Kashi Cookies

Table 4-21: Kashi TLC Cookies: IRI-Tracked Dollar Sales, 2006 Through October 2008 (in millions of dollars)

Don’t Discount Candy: Gummy Candies Enter Functional Fray

Japanese on Anti-Aging Collagen Kick

Meiji “100% Pure Fruit Juice” Series Leads Fortified Gummy Market

Better-for-You Through Subtraction: “Low” and “No” Claims Prominent

Nearly Half of U.S. Adults Purchase Low- or No-Fat Products

Table 4-22: Demographic Patterns for Purchasing of Low-Fat or Fat-Free Products, 2008 (percent and index of U.S. adults)

Salt Reduction Likely the Next Less-Is-Better Snack Trend

Portion Control: 100-Calorie Club Is a Great Idea, No?

“Eat Less! It’s Better for You!”

Drop in Sales on Some 100-Calorie Products Suggests a Re-Think

Table 4-23: Selected 100-Calorie/Low Calorie Snacks: IRITracked Dollar Sales, 2006 Through October 2008 (in millions of dollars)

Function in Snacks Should Play Up “Natural” Food Goodness

Changing Unhealthy Habits Will Require Consumer Effort, Too

Chapter 5: Natural and Organic Snacks

Consumers Call for Authenticity in Natural Claims

From Green Valleys to Planetary Ethics

“Natural” Credibility Requires Serious Commitment

Backing Up “Natural” with Specific Claims

Table 5-1: U.S. and Global Snack Product Introductions: Natural and Related Claims, 2008 (number and percent)

Cereal Bars Lead in Sweet Snack Natural Claims

Table 5-2: Global Sweet Snack Product Introductions: Natural and Related Claims by Product Segment, 2008 (number)

Dannon’s Natural Yogurt as Brand Leader

Table 5-3: Selected Natural Sweet Snacks: IRI-Tracked Dollar Sales, 2004 Through October 2008 (in millions of dollars)

Popcorn, Potato Chips Are High in Natural Claims

Table 5-4: Global Salty Snack Product Introductions: Natural and Related Claims by Product Segment, 2008 (number)

Lesser Evil Snacks: More Nice, Less Naughty

“Snackcident Prevention” Establishes a Healthy Niche

Figure 5-1: Lesser Evil Brand Popcorn Products: 2005 Through October 2008 (in dollars)

Frito-Lay: Better-for-You and Natural

Table 5-5: Selected Natural Salty/Savory Snacks: IRI-Tracked Dollar Sales, 2004 Through October 2008 (in millions of dollars)

Sun Chips Pushing Green Agenda with Solar Power, Biodegradable Packaging

Compostable Packaging for Sun Chips

Will Consumers Resist “Natural” Versions of Old Favorites?

Table 5-6: Selected Natural Frito-Lay Snacks: IRI-Tracked Sales, 2007 Through October 2008 (in millions of dollars)

Tostitos Naturals: “Three Ingredients Is Good.”

Sometimes It’s Simpler Not to Think About the Details

Organic/Natural Shoppers Hard to Pin Down

Just Looking for High Quality

Consumers Focus on Taste and Experience

Natural/Organic Food Shopper Psychographics

Table 5-7: High Indexing “Agree A Lot” Attitudes Among U.S. Adults Who “Agree a Lot” That They Look for Organic/Natural Foods When They Shop, 2008 (percent and index)

Preferences for Healthy Snacks

Natural/Organic Food Shopper Demographics

Table 5-8: Selected Demographics for U.S. Adults Who “Agree a Lot” That They Look for Organic/Natural When They Shop for Food, 2008 (percent and index)

Don’t Discount Organic Leanings of Lower Educational, Income Brackets

Organic Snack Claims Jump Higher Than Natural Thanks to Verifiable Standards

Organic Claims Require Fulfillment of USDA-Certified Green Practices

Three Levels of Organic

Level 1: “100% Organic” on Principal Label

Explorer’s Bounty: 100% Organic Fruit and Chocolate Snacks

Level 2: Made with Organic Ingredients on Principal Label

Safeway’s O Organic for Toddler Marries Organic with Functional

Level 3: Organic Ingredients on Ingredients Statement

Frito-Lay’s Natural Blue and Yellow Corn Tostitos Include Organic Ingredients

New Administration Endorses Natural, Local, Organic Foods

Organic Snack Ingredients Gain in Snack Launches Worldwide

Tenfold Gain in Organic Claims in Snack Launches from 2004 to 2008

Canadian, European Brands Use Organics in Wide Variety of Snack Launches

Newman’s Own Organic Snacks Donate Millions to Charities

Table 5-9: Selected Organic Sweet Snacks: IRI-Tracked Dollar Sales, 2004 Through October 2008 (in millions of dollars)

Table 5-10: Selected Organic Salty/Savory Snacks: IRITracked Dollar Sales, 2004 Through October 2008 (in millions of dollars)

Private Label Organics Ease the Pain of Premium Pricing

Trader Joe’s: Wallet-Friendly and Hip

Authenticity Adds to Value in Economic Downtimes

Wegmans Grocery Chain Offers Organic Yogurt Snacks

Support of Locally Grown Produce Includes Wegmans Organic Research Farm

Private Label Natural and Organic Snacks Offer Variety, Value

Fair Trade Agreements Support Equitable Labor Practices

Producers, Workers, Trade Terms and Pricing All Fall Under Fairtrade Standards

Chocolate Production Sees Increased Fair Trade Commitment

French Ethiquable Makes Chocolate a Responsible Indulgence

Chocolates, Fruit Chips and Cookies Round Out Ethiquable’s Snacks

Organic Claims Cluster in Fair Trade Chocolates

Major Chocolate Producers and Marketers Adopt Fair Trade

Labor, Green Organizations Pushing Hershey, Mars, Nestle

Save The Planet Through Snacking?

Chapter 6: Premium and Gourmet Snacks

Gourmet Snacks Borrow from Natural and Organic Trends

Gourmet Consumers Difficult to Pin Down

Asians, Grad Degree Holders, High Income Consumers Most Likely Foodies

Table 6-1: Percentage of Adults Who Agree a Lot with the Psychographic Statement, “I Try To Eat Gourmet Food Whenever I Can”: By Demographic, 2008 (percent and index of U.S. adults)

Figure 6-1: Highest Indexing Demographic Groups for Agreeing a Lot with the Psychographic Statement, “I Try To Eat Gourmet Food Whenever I Can,” 2008 (U.S. adults)

But Appetite for Gourmet Treats Spans Demographic Boundaries

Love of Foreign Foods Correlates with Tastes for Upscale, Exotic

Asians, Grad Degree Holders, High Income Consumers Favor Global Cuisines

Table 6-2: Percentage of Adults Who Agree a Lot with the Psychographic Statement, “I Enjoy Eating Foreign Foods”: By Demographic, 2008 (percent and index of U.S. adults)

Figure 6-2: Highest Indexing Demographic Groups for Agreeing a Lot with the Psychographic Statement, “I Enjoy Eating Foreign Foods,” 2008 (index and percent of U.S. adults)

Gourmet Is More Occasion Than Lifestyle

Table 6-3: Psychographic Patterns for Consumers Who Agree a Lot with the Psychographic Statement, “I Try To Eat Gourmet Food Whenever I Can,” 2008 (percent and index of U.S. adults)

Strong Affinities for Organic, Nutritious Foods Parallel Gourmet Tastes

Even Gung-Ho Gourmets Show Wide Variation in Attitudes, Habits

Fast Food is Fabulous! No, It’s Junk! Spicy is Good! No, It’s Yucky!

Hurray for Sugar and Fat!—Now We Feel Guilty

Premium, Gourmet Snacks Emphasize Experience of Eating

Mission-Driven Companies Support Indulgence Through Good Works

Upscale, Artisan Tags Further Define Premium and Gourmet Snacks

Table 6-4: Global Snack Product Introductions: Upscale, Gourmet and Related Claims, 2008 (number and percent)

Chocolate Dominates in Premium Sweet Snacks

Table 6-5a: Global Sweet Snack Product Introductions: Upscale, Gourmet and Artisan Claims by Product Segment, 2008 (number)

Table 6-5b: U.S. Sweet Snack Product Introductions: Upscale, Gourmet and Artisan Claims by Product Segment, 2008 (number)

Flavor Crossovers in Salty/Savory Snacks

Table 6-6a: Global Salty/Savory Snack Product Introductions: Upscale, Gourmet and Artisan Claims by Product Segment, 2008 (number)

Table 6-6b: U.S. Salty/Savory Snack Product Introductions: Upscale, Gourmet and Artisan Claims by Product Segment, 2008 (number)

Creative Blends of Superior Sweet and Savory Ingredients

Dried Fruits and Berries Mix It Up with Strong Cheeses, Nuts and Herbs

Classic Cuisines Lend Gourmet Flavor to Salty/Savory Snacks

International Flavors Maintain Strong Influence: Wasabi, Chai, Ginger Pump Up Tastebuds

Other Little Known Ingredients to Watch: Baobab, Noni, Et Al

Acai, Gogi: Exotic Super-Foods Up the Ante

Brazilian Acai Berries a Purple Miracle for Discerning Palates

Funky Monkey Fruit Snacks Make Super Berries Crunchy

Innovative Use of Acai Bodes Well for Trail Mixes, Snack Bars, Chocolate

Artisan Snacks a Nexus of Luxury, Gourmet, Function, Stewardship

Hershey’s Purchase Boosts Dagoba’s Bottom Line

Table 6-7: Selected Premium Chocolate Snacks in Box, Bag or Bar Under 3.5 Oz: IRI-Tracked Dollar Sales, 2004

Through October 2008 (in millions of dollars)

Table 6-8: Selected Premium Chocolate Snacks in Box, Bag or Bar Under 3.5 Oz.: IRI-Tracked Unit Sales, Volume Sales and Price per Pound, 52 Weeks Ending October 2008

Tibetan Goji Berries: Bright Red, Tangy, Sweet and Sour

Bissinger Introduces Goji Gummies

Quinoa, Amaranth: Little Grains, Big Nutrition

Mixes Well with Sweet and Savory Ingredients

Contributes to Whole Grain, Multigrain, Gluten-Free Trends

Aztecs and Amaranth’s Powers

These Days, It’s Gluten-Free, High Protein Versatility

African Fonio is Highly Nutritious But Labor-Intensive to Harvest

Higher Dollar Sales for Premium Mass-Market Popcorn

Newman’s Own, Orville Redenbacher Dollar Sales Up, Unit Sales Down

Table 6-9: Selected Premium Kernel Popcorn Brands: IRITracked Dollar Sales, 2004 Through October 2008 (in millions of dollars)

Table 6-10: Selected Premium Kernel Popcorn Brands: IRITracked Unit Sales, Volume Sales and Price per Pound, 52

Weeks Ending October 2008

Frito-Lay Smart Food Introduces Sweet and Savory Popcorn Clusters

Artisan Popcorns Emphasize Small Batches, Hands-On Attention

French Truffles Grace Susan Rice Popcorn

479 Popcorn: So Gourmet It Merits a Wine Pairing

Sweet and Savory Combinations, International Flavors

Premium Nut Snacks Mix Up Fruits, Spices, Seeds

Sahale Nut Snacks: International Cuisines Inspire “Culinary Magic”

Creative, Edgy Mixtures of Sweet and Salty, Fruits and Nuts

Sales Stumble in Mass Market

Table 6-11: Selected Premium Sweet/Savory Snacks: IRITracked Dollar Sales, 2004 Through October 2008 (in millions of dollars)

Table 6-12: Selected Premium Sweet/Savory Snacks: IRITracked Unit Sales, Volume Sales and Price per Pound, 52

Weeks Ending October 2008

Mission-Driven Upscale: The Sweet Taste of Stewardship

Endangered Species Chocolate: Savor Chocolate, Save Our Planet

Corporate Streamlining Increases Sales and Thus Donations

Concern from ILRF

Long-Term Partnerships Promote Species, Habitat, Humanity

Berries, Citrus Dress Up High Cacao Contents

Dancing Deer Bakery Founded on Philanthropy, Eco-Friendliness

35% of Sweet Home Retail Prices Donated to Homeless Advocacies

Premium Ingredients Impart Rich, Whimsical Recipes in Green Packaging

Redneck Gourmet Rubs Shoulders with The Best

Appendix: Company Addresses