2017 state of the snack food industry pdf

Copyright © 2017 Information Resources, Inc. (IRI). Confidential and proprietary. 1
2017 State of the Snack
Food Industry
Sally Lyons Wyatt
IRI EVP & Practice Leader

Today’s Discussion
Macrosnacking Universe
2016 Snacking Review
2017 Consumer Snacking Trends
Seizing the Growth Opportunities

Breath Fresheners
Canned/Bottled Fruit - No/Low/Alt Sugar
Carob/Yogurt Coated Snacks
Cookies - No Fat/Reduced Fat
Crackers - No/Reduced Fat
Dried Fruit - No/Low/Alt Sugar
Dried Meat Snacks
Dry Fruit Snacks - No/Low/Alt Sugar
Fruit - Fz
Ice Cream/Sherbet - Fat Free/Reduced Fat
Natural Snacking Cheese
Novelties - Fz - Fat Free/Reduced Fat
Nutritional Snacks/Trail Mixes
Picante Sauce
Popcorn (non-sweet)
Rfg Appetizers/Snack Rolls
Rfg Handheld Non-Breakfast Entrees
Rice/Popcorn Cakes
Salsa
Salty Snacks - Sensible
Snack Bars/Granola Bars - No/Low Sugar
Snack Nuts/Seeds/Corn Nuts
Sugarless Gum
Snacksize Fresh Produce
Yogurt - No/Low/Func Fat
CORE HEALTHIER
The macrosnacking universe is consumer driven and vast
Aerosol/Squeezable Cheese Spreads
Appetizers/Snack Rolls - Fz
Bakery Snacks
Canned/Bottled Fruit - Regular Sugar
Chocolate Candy
Chocolate Covered Salted Snack
Cookies - Regular Fat
Crackers - Regular Fat
Desserts - Rfg
Dip/Dip Mixes - Ss
Dips - Rfg
Dried Fruit - Regular Sugar
Dry Fruit Snacks - Regular Sugar
Fz Cookies
Fz Handheld Entrees (Non-Breakfast)
Ice Cream/Sherbet - Regular Fat
Non-Chocolate Candy
Novelties - Fz - Regular Fat
Other Snacks - Fz (Fz Dips)
Pastry/Doughnuts
Sweet Popcorn
Regular Gum (No Sugarless)
Rfg Snack Cakes/Doughnuts
Salty Snacks - Core
Snack Bars/Granola Bars - Regular
Toaster Pastries/Tarts
Yogurt - Regular Fat
CORE INDULGENT
Breakfast Drink Mixes
Chutney
Cold Cereal - No/Low/Alt Sugar
Cottage Cheese
Cream Cheese/Cr Chs Spread -
No/Low/Func Fat
Fresh Eggs
Jellies/Jams/Honey
Olives
Peanut Butter
Pickles
Pickles/Relish - Rfg
Potatoes/Onions - Fz
Rfg Juice And Drink Smoothies
Rfg Peanut Butter
Soup - Healthy
Specialty Nut Butter
Spreads – Rfg
EXTENDED HEALTHIER
Bagels/Bialys
Baked Goods - Rfg
Cold Cereal - Regular
Cream Cheese/Cr Chs Spread - Regular
Fat
English Muffins
Fz Tortillas
Luncheon Meats
Pizza - Fz
Pizza - Rfg
Rfg Bagels/Bialys
Rfg English Muffins
Rfg Muffins
Soup - Regular
Ss Bottled Juice And Drink Smoothies
Tortlla/Eggrll/Wontn Wrap – Rfg
EXTENDED INDULGENT

Daily snacking averages remains the same, however there
is an uptick in consumers snacking 5+ snacks per day
11.5% 14.2%2016 2017
+2.7pts in 1 year
Source: 2017 IRI Snacking Survey

Early morning
snacking continues
to rise
36%
67%
58%
45%23%
+3
pts

However, within retail, snacking dollars are lagging CPG and
F&B - mostly due to slowed unit sales
0.8%
0.9%
1.2%
0.3%
0.5%
0.6%
MacroSnacks F&B Total CPG
Dollar Sales Change Unit Sales Change
% Growth By Channel: Multi-Outlet & Convenience
Source: IRI Market Advantage – MULO+C - 52 Weeks ending 12/26/17 vs YAGO

Lagging predominantly due to extended snack categories;
But Core Snacking is realizing solid dollar growth
+2.6%
Dollar chg v. YAGO
CORE EXTENDED
+0.6%
Unit chg v. YAGO
-4.0%
Dollar chg v. YAGO
+0.9%
Unit chg v. YAGO

However, within the top 10 core categories, only 4 categories
grew in both dollars and units
Ice Cream/Sherbet Salty Snacks Granola Bars Cookies
$ % Change vs.
YAGO
Unit % Change
vs. YAGO
5.1%
4.6%
3.9%
3.4%
3.4%
0.6%
2.6%
1.1%

Why is snacking
driving dollar sales
but not units?

Factors helping dollars outpace units
Premiumization
LocationPrice Equation
Consideration Set
Broadened

The top categories that saw dollars outpace the unit sales are
riding on higher priced offerings and expanded consideration set
+9% +4% +3% +3%
+2% +2% +2% 2% 1%
Price per unit % increase
+7%

Most of these categories lost trade support as well, swelling
their price points – thus helping dollars outpace units
-4.4
weeks
-2.3
weeks
-1.3
weeks
-1.0
weeks
-1.5
weeks
-1.5
weeks
-1.5
weeks
-1.4
weeks
-1.4
weeks
Lost trade support (in weeks)
-2.6
weeks

$0.00-$1.00 $1.01-$2.01 $2.02-$3.02 $3.03-$4.03 $4.04-$5.04 $5.05-$6.05 $6.06-$7.06 $7.07-$8.07 $8.08-$9.08 $9.09-$10.09
+63.1%
-4.0% -0.8%
14.3%
11.7%
-7.9%
187.4% 15.2% 1068%
Popcorn has commanded a premium price
for the past few years, but we are now
starting to see some lower price points that
will appeal to the masses
DollarSales
$ % Chg vs YAGO

Quick serve and Limited serve have outpaced retail for several
years and having an impact on traditional channels
LSR+4.4%
QSR+3.7%
Dollar Growth v. YAGO
+0.9%
F&B Dollar Growth v. YAGO
FOOD
SERVICE
RETAIL
Source: Technomic; IRI Market Advantage – MULO+C - 52 Weeks ending 12/26/17 vs YAGO

Macrosnack Indulgent snacks
have grown against Healthier ones
2.5% -2.2%
HEALTHYINDULGENT
Macro
Snacks
Based on Dollar Sales

Within Indulgent, growing halo around whole-fat spurred
dairy foods growth along with some bakery items
Whole-fat Ice
Cram/Sherbet
Sweet PopcornWhole-fat Fz Novelties Non-Chocolate Whole-fat Yogurt
Pastry/DoughnutsRegular Salty Snacks Snack/Granola BarsCookies - Regular Fat
Chocolate
Based on Dollar Sales

Portability was a theme within the growing Healthier categories
Snacksize Fresh
Produce
Rfg. Appetizers/
Snack Rolls
Rfg. Handheld Non-
Breakfast Entrees
Dried Meat Snacks Jelly/Jam/Honey
Nutritional Snacks/
Trail Mixes
Fz. Fruit Salsa Olives Rfg Pickles/Relish
Based on Raw Dollar Sales Growth

In fact, snack size produce delivers on multiple consumer needs
and we saw solid performance across many segments
Source: Freshlook POS – 52 Weeks ending 12/26/16
Sales
Price
Volume
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
Melons Variety ApplesPineapple Carrots

However, several categories offset the increase
driving the healthier segment decline
Fat-free/Reduced
Fat Fz Novelties
Fat-free/Reduced
Fat Cookies
Fat-free/Reduced
Fat Ice Cream
Natural Snacking Cheese
Low Fat Cream
Cheese/Spread
Low-fat/Fat-free Yogurt Sugar-free Gum Healthier Popcorn Sugar-free Cold Cereal
Based on Raw Dollar Sales Growth

Consumers’ “balanced” diet is driving the top dollar growth categories
Low/No Sugar Fruit
Snacks
Ice Cream/Sherbet
Snack-size
Fresh Produce
Pastry/Doughnuts
Rfg Appetizer/Snack
Rolls
Rfg HH Entrees
(Non-Breakfast)
Chocolate-Covered Salty
Snacks
SS Smoothies Low Sugar Trail Mix
Fz Tortillas
Based on Dollar % Change

As we focus in on the Core Indulgent Snacks segment, we find it
outpacing Healthier but the Healthier segment is growing too
3.4% 0.9%
INDULGENT HEALTHY
Core
Snacks
Dollar Sales

Sweet and
Savory products
continue to hit the
mark with growth
for the past
couple of years
SWEET
47.9%
+0.5
share chg
+1.9%
$% chg
ALL
OTHERS
-0.8%
share chg
-2.7%
$% chg
20.8%
SAVORY
+0.2%
share chg
+1.6%
$% chg
31.3%

Food
1.9%
YAGO
All channels except Club and Drug are seeing good Core
Snacking growth, with Internet driving double digits
Mass
3.1%
YAGO
C-Store
3.9%
YAGO
Club
-1.1%
YAGO
Drug
-0.4%
YAGO
Dollar
1.8%
YAGO
Internet
+15%*
YAGO
Based on dollar sales
*IRI ePOS – Select snacking category growth
All Other
+5%
YAGO

Source: Based on IRI Consumer Network - Macrosnacks – Penetration by Channels Pt change vs CY 2016; All
Outlets
There are still penetration opportunities
across several channels
Ranges
7 - 74%
penetration
47.9
penetration
Mass
11.4
penetration
OnlineDollar

Snack time
anywhere
opportunities for
growth

New Brands gain most distribution in
Mass and Online in the first year
Several New Ice
Cream brands
Mass Food C-Store
MassSome New
Brands Online FoodClub

However there is not one particular way manufacturers are
launching across channels
Several New Meat
Snacks brands
Drug Mass Club Food
Several New Salty
Snacks brands
Club
Mass
Food Drug DollarC-Store
C-Store

In fact, some
brands take a
whole different
approach
Club

Established brands need to have an “arm’s reach” mentality
to ensure availability along the entire snacking journey
ClubMassFood Drug DollarC-Store Vending Military UrbanOnline

5 macro trends driving treating and snacking consumption
Abundant and
blurry choices
Holistic Health Getting
personal with
personalization
eCommerce
legitimacy
Innovation in
treating and
feeding America

Source: 2016 IRI Snacking Surv
Treat/
Indulgence
Special
Occasions
Celebrations
CANDY SNACKS
Hunger
Satisfaction
Meets Daily
Nutrition
Goals
Provide
Energy/Fuel
Treating and Snacking serves multiple roles for consumers

Source: 2016 IRI Snacking Surv
Treat/
Indulgence
Special
Occasions
Celebrations
CANDY SNACKS
Hunger
Satisfaction
Meets Daily
Nutrition
Goals
Provide
Energy/Fuel
Treating and Snacking serves multiple roles for consumers
65%
Of consumers state Sweets
are more of a treat than salty
snacks

There are many places for consumers to meet their treating needs
More Specialty Candy Stores across the US Vending Evolution QSR/LSR Impact

Quick Serve and Limited Serve are within consumers
consideration set for treating and snacking
42%
Of consumers go 1 - 2 times per week Of consumers go 3+ times per week
11%
Up 4 points vs. 2015Up 3 points vs. 2015

New Specialty Stores and promotions from existing shops are
boldly messaging to treating and snacking consumers

Food & Beverage evolution includes confection
ingredients that are impacting growth
PAST
distinct products
TODAY
blurred lines

Consumers even
eat ingredients
as treats!

Chocolate by the numbersChocolate by the numbers
59%
of F&B categories
contain chocolate
6%
of all Edible sales
can be attributed
to chocolate
items
2.4%
chocolate
1%
F&B growth
Products with chocolate are outpacing F&B growth
Cereal has a pocket of
growth with chocolate
flavored cereals

Consumers can get their
chocolate reward in many
ways impacting growth
potential of candy
Source: 2017 IRI Snacking Survey: eating a snack that contains chocolate instead of
having a candy bar is enough to give me my chocolate reward
62.8% Total US
67.7% 59.5%
57.3%
18-44 45-64
65+

Attribute roles have evolved and importance has escalated

For example, Greek Yogurt delivers…
• High Protein
• Probiotics
• Calcium
• B-12

Chobani capitalized on this to define itself as THE high
protein brand, ultimately achieving 2010 NPP status

By bringing a new attribute – high protein – to a category where it
didn’t exist, to deliver on emerging consumer needs

Expanding to stores elevating the Chobani brand
Tribeca SOHO

Protein has evolved to be a significant driver of purchase for
many, bringing strong growth to the market across categories
RP
O T
IE
N Claims
+6.6%
vs YAGO
+8.8%
CAGR
Ranging
from 1% -
582% $
Growth
20
categories

Gluten Fee, another growth attribute, is a benefit that has helped define
brands such as Glutino and driven strong market growth
+19%
CAGR
Gluten Free
+15%
vs YAGO
+17%
CAGR
+6%
vs YAGO

Abundant and blurry choices is also evident when looking at
attitudes and behaviors for beverage as a snack
+1.7%
$ vs YAGO
+3.3%
Units vs
YAGO
64%
Of consumers state they
sometimes have a beverage as
a snack
Up +3 points
vs YAGO

Newer brands are being created by offering differentiated,
attribute-driven experience
Yogurt
drinks
Probiotic-
enhanced
nut-based
smoothies

Holistic Health
New consumer-based
definitions of health
and wellness that
drive growth

Lifestyle is Playing an Increasingly Critical Role to Taking
Care of Overall Health
2014 2016
Lifestyle (Exercise, Diet,
Food & Beverage) – 36%
Lifestyle (Exercise, Diet,
Food & Beverage) – 40%
Doctor / Lab Visits – 20%
Doctor / Lab Visits – 19%
Prescription Medicine – 19%
Prescription Medicine – 18%
Dietary Supplements – 12%
Over-the-Counter – 8%
Alternative Therapies – 4%
Dietary Supplements – 11%
Over-the-Counter – 7%
Alternative Therapies – 4%Rx Consult – 2% 2% - Rx Consult
Source: IRI Self Care Survey

Transparency is critical with consumers equally focused on what is not
in their food & beverage as what is in it, and where it came from
Ingredient
Simplicity
Transparent
Packaging
Claims &
Certifications
Local &
Authentic

53%
Of consumers state
that product label and
packaging influence
their snack decision
60.3%
For 18-24
62%
For 25-35

35%of U.S. consumers
want sustainable
packaging
51.9%
47.6%
35.5%
26.9%
Reduced Packaging Biodegradable
25-44 Total US

Ingredient simplicity is not simple at all
Source: https://healthyeater.com/dark-chocolate-best-and-worst
https://authoritynutrition.com/dark-chocolate-buyers-guide/
How to Choose the Best Chocolate
There are dozens of boutique chocolate brands out there. If in doubt, use the
following guide.
A true dark chocolate will never have sugar listed first in the
ingredients. It should always be below the cocoa ingredients.
It should also tick as many of the following points:
• 100% Organic Note that “organic” does not equal 100% organic
(confusing!).
• Fair Trade > 70% cocoa
• Not processed with alkali
Also, note that some manufacturers use GMO (genetically modified)
ingredients (this is usually the soy lecithin). Soy Lecithin is a byproduct of
processed soy beans and is used an emulsifier (prevents water and fat from
separating).
High in cocoa: 70% or higher cocoa percentage.
Cocoa comes first: Cocoa or a form of cocoa is the first ingredient.
No unnecessary ingredients: Avoid dark chocolate that contains trans fat,
milk, artificial flavorings, high amounts of sugar and other unnecessary
ingredients.
No alkali processing: Alkali processing is also known as Dutching. Avoid
chocolate processed this way.
Fair-trade and organic: This type of dark chocolate is more likely to be
high-quality, ethically sourced and pesticide-free.
Follow these tips to make sure your dark chocolate is high-quality, rich in
antioxidants and of course, delicious.

Trends on fair trade chocolate are strong
+18.7%
For select Fair Trade
Chocolate Products

Consumers definitely want snacks that deliver
on their nutritional needs
60%
Of consumers want additional health benefits
beyond nutrition (eg, antioxidants)
Up 8 pts vs. 2016
59%
Of consumers want snacks that
contain vitamins and minerals
Up 2 pts vs. 2016

Certification and Transparency are winning claims
NO DAIRY
CLAIMS
+32%
HORMONE
CLAIMS
+35%
VEGAN CLAIMS
+32%
GRAIN CLAIMS
+20%
DAIRY CLAIMS
+21%
IRI – Top % Growth +/= 20%

Communicating benefits is winning with consumers
$2.0M
+103%
Certified gluten-free,
Non-GMO Project verified,
Kosher and halal certified
$1.3M
+129%
Certified gluten-free organic
quinoa, organic brown rice
and organic oat bran
Total Brand Sales
NEW
Organic quinoa, pumpkin,
cranberries, blueberries and
sunflower and chia seeds.
Certified non-G.M.O.,
USDA Organic,
gluten-free and kosher.
$2.6M
Non-GMO Project verified,
certified gluten-free and
certified kosher.
$52.2M
+7.7%
Certified gluten-free, Non-GMO
Project verified, and contain no
artificial colors or flavors
$6.8M
+7.6%
Organic Seaweed Snacks
USDA certified organic
ingredients, contain Non-GMO Project
Verified ingredients and are vegan,
dairy-free and gluten-free.

“Farm to” is even
important in snacking
selections as “local” evolves

One thing that almost all consumers agree
upon is taste is paramount
90.6%
of consumers state they
choose snacks based on
tastes they will enjoy

Getting personal
with personalization

There is a very complex journey that Americans take and it is impacting how
they plan, shop and consume
Specialty
Stations
Social/
Digital
Vending
QSR/LSR
Delivery
e-Comm
Click
Pick Up
1:1
Personalization

In an effort to capture attention, an explosion of ad exposures has resulted in
“information overload” for consumers and marketing waste for marketers
500average number
of ads consumers
viewed daily in 1970
5000average number
of ads consumers

In an effort to capture attention, an explosion of ad exposures has resulted in
“information overload” for consumers and marketing waste for marketers
500average number
of ads consumers
5000average number
of ads consumers

Retailers are creating 1:1 relationships with anyplace consumers through
personalized campaigns leveraging new digital platforms
STARBUCKS
MOBILE COMMERCE
CVS PHARMACY APP KROGER APP WALMART APP

This Just in
Like this
CLICK HERE
SALE
DID YOU
KNOW
BUY THIS
TWEET IT
Look at this
>56%
display ad
impressions never
seen by consumer
Google

Personalized Treating & Snacking are Evolving
BRACH’S PICK YOUR MIX PRINTED WRAPPERS “SHARE A…” DESIGN YOUR
OWN CANDY
GIFTING

Source: Shopper Sights 6.5
Target HH 200k+
ShopperSights Consumer Network Panel, DMAs
Finding the right households to target and activate is a critical step
for personalizing assortment and/or messaging
19%
of Target
HHs
25%
of product
volume
21%
of Target
HHs
26%
of product
volume
36-55 ys. 36-65 ys.
1.5x
More likely
to buy salty
snacks
2x
More likely
to buy non-
chocolate
Caucasian w/AA skew

Execute localized assortment within key stores where
target HHs have a higher propensity to spend
Non Chocolate Candy Target HHs
Top 5 Ranked on Index
Salty Snacks Target HHs
Top 5 Ranked on Index
STORE 1 STORE 2 STORE 3 STORE 4 STORE 5 STORE 6 STORE 7 STORE 8 STORE 9 STORE 10
284 282 278 278 275 238 234 230 230 229
TARGET % ACV INDEX
Source: IRI Shopper Sights 6.5

Source: IRI ShopperSights Consumer Network Panel
Then activate in the media that each target consumes
Websites
Magazines
Cable Networks
Websites
Magazines
Cable Networks

Purchase-based targeting works for multiple business needs
+24%
Purchase-based targeting
to increase campaign
effectiveness
Increase in targeted households
for beverage client
+9%
Purchase-based targeting
to support new product
launch
Higher lift in targeted
households versus demographic
targeting for beverage client

eCommerce Legitimacy
with Treats and Snacks

We are at the center of a consumer buying revolution
This year, digital
will influence
of all retail sales
77% 76%of all shopping
trips begin online
71%of all product searches
begin on retail sites
(55% on Amazon)
50% of CPG category market
growth will be online by 2018

War of the Worlds
1% of CPG Sales 23% of CPG Sales
+3%+25%
$100B
in sales
+$500B
in sales
VS

e-Commerce Sales for treating and snacking have a small base
but strong dollar trends
+8% +3%
-2%
$133M
+18%
$246M
+13%
$44M
+12%
$90M
+23%
$18M
+12%
$183M
+35%
$416M
+10%
Non-Chocolate Chocolate Dry Meat Snacks
Snack Nuts Popcorn/Popcorn Oil Salty Snacks Snack/Granola Bars
Source: IRI Ecommerce POS - 52 Weeks ending 12/26/17 vs YAGO

31%
3%
21%
8%
It is important to
understand that
e-Commerce
Business
Is Different
Source: IRI e-Commerce Market InsightsTM 52 weeks ended Oct. 2016 (non food) and 52 weeks ended Oct. 2016 (food)
IN-STORE VS. ONLINE DOLLAR SHARE
CATEGORYLEADER
MINORBRAND
10%
2%
6%
7%
CATEGORYLEADER
MINORBRAND
Dried Meat Snacks Granola/Snack Bars
MULO IN-STORE SHARE ONLINE SHARE

e-Commerce is a
key driver of
sales growth
Source: IRI Growth Consulting Analysis; Numbers may not add to 100% due to rounding

Treating and snacking eCommerce sales are growing…
CHOCOLATE NON-CHOCOLATE BARS SNACK NUTS POPCORN
Source: IRI ECOMMERCE V. MULO + C CATEGORY COMPARISON - Dollar Sales (Million, Full Year 2016)
TOTAL – MULO+ C TOTAL US eCOMMERCE
2% 2% 7% 2% 2%

growing…with substantial upside!
2%
2%
10%
10%
$1.6B
$2.7B
2022
2016
2022
2016

Innovation Treating
& Feeding America

194%
156%
130%
59% 54%
44%
Within select categories, Innovation is driving
strong contribution growth
Sweet
Popcorn
Whole-fat Fz
Novelties Rfg Dips
Regular Salty
Snacks
Reg. Cookies Whole-fat Yogurt
CONTRIBUTION TO ABSOLUTE DOLLAR GROWTH

Innovation themes cross the gamut
Blurred
categories
Transparency
Flavors Convenience
Packaging NutritionForms
Superfoods Ingredients
& Claims

Resealable Packs and tins have delivered value
for those consumers looking for convenience

Product forms are lining up for success
BEET ROOT CHIPS VEGGIE CHIPS
2016
sales
$466M+17.0%
VYA$6.2M +26.9%
VYA

Growth rates for Superfoods snacks range from +4% to +71%!
+4% to 71%
Superfoods coming to the rescue!
With snack growth rates ranging
from

IRI Growth Leader Examples
Consumer demand for protein extends to plant based
snacking options
Source: IRI Data for MULOC (multi-outlet + convenience), IRI and BCG analysis

Is Jerky, the new protein “bar”? - Many Meat Snacks hitting the market pushing
jerky into a protein “bar” position

Fruit and Veggies going Nuts!
These snack packs and bars are combining fruits, veggies and nuts
blurring lines of categories plus answering the call of the consumer
$5.7M
TTL Pressed Brand
$100.5M
+129.4%
TTL Brand
$10.9M
+210.2%
Fruit/Nut combos
$4.4M
Chicken Only
NEW

More and more thins and bites entered the marketplace
over the past couple years and consumers love them!

Bites are selling over $100M in sales, just these
5 products alone are driving over $70M!
$34.7M
+63%
$13.8M
+17%
$12.1M
+62%
$9.5M
+42%
$2.4M
+13%
Total Brand Sales

Dipping across the US with variety continues
to evolve and cross category lines as well
offering Sweet and Savory options

Fat is back (for some) - successful ice
cream introductions have benefited from
this consumer trend

Flavors without
borders

$124.7M
+33.5%
Avocado
Flavored Snacks
$34.7M
+17.4%
Plantain Chips
$8.6M
+31.0%
Guava
Flavored Snacks
Green Olive Key Lime Mango Paprika
Sour OrangeDark Rum Sofrito
Trending Forms & Flavors with
Latin American Focus

$0.5M
+31.0%
Cardamom
$36.4M
+53.0%
Tikka Masala
$0.5M
+50.3%
Matcha (excl.
Teas)
Garam Masala Pistachio Rosewater
TamarindSaffron
Trending Forms & Flavors with
Asian Focus

$29.1M
+50.7%
Rhubarb
$22.8M
+36.7%
Watermelon
(excl. gum & breath fresheners)
$6.7M
+6.1%
Huckleberry
Brown Butter Maple Cape GooseberryMolasses
Even some American flavors
have gained appeal

Looking at loyalty data across several customers, we are
find that innovation skews but opportunities exist
Source: IRI ShopperKnowledgebase
Spicy Popcorn Sweet Popcorn Yogurt Smoothie Cookie Sandwich
Skew HH’s
with kids 13-18
GenX
Skew HH’s
with kids 13-18
Skew HH’s
with kids 13-18
GenX
& older
Millennial
Younger
Boomer
GenX &
Hispanic

Within snacking…
…what’s emerging?

Continued Meat Snacks
Explosion
• Meat snacks branch out with
kid marketing
• No/waste snout-to-tail usage
pork rinds
• Free-range chicken chips
Holistic Health
• Ingredients with farming
practices in focus
• Sustainability in focus with
pulses
• Probiotic-enhanced in new
category
Portable Snacking Evolution
• Fresh juices get a frozen and
personalized makeover
• Handheld farmer’s cheese with
protein marketing
• Nut-based smoothies with
probiotics
Looking at the Natural Channel, we identified three snack trends
that will be growth contributors in 2017+

Portable snacks are being
reimagined with varieties and
benefits from old and new
trends
Frozen dark
chocolate
farmers
cheese
Source: SPINS – Total US Natural Channel – 13 Quads Ending 02_19_17

New twists for meat
snacks and pork rinds
“Nose-to-tail”
commitment
to produce
less waste
Kid marketed
meat snacks
emerge
Free-range
chicken chips:
new breakout
segment

In fact, Probiotic Chips, Pretzels, and Snacks are showing
exceptional growth across all channels
Probiotic-
enhanced
nut-based
smoothies
Probiotic-
enhanced
tortilla chips
Probiotic Cauliflower Puffs
and Asparagus Chips.
Certified gluten-free, non-G.M.O., kosher
and vegan.
Organic dairy-free cashew yogurts with
probiotics
Certified organic, non-G.M.O., kosher
and free of lactose gluten and soy

Functional Ingredients extend throughout the store continuing to
blur category lines
Green Teas
and
Supplements
+40%
Hemp
+37%
Acai
+41%
Ice pops
delivering on
many
consumer
needsNatural Channel Frozen Desserts
Sustainably
positioned
with on trend
turmeric

Ensure innovative packaging (source
and design) are part of your portfolio
The Future: Seizing the Opportunity

Continue to communicate ingredients &
sourcing in simple and effective ways

Innovate in and out of the “category”
to increase sales in and out of
traditional channels

Take personalization to the next
level to capture consumer
attention with additional 1:1 tactics

Embrace Holistic Health activities with
retailers to deliver on consumer needs

Identify the trends within the Natural
Channel you want to transcend into
mainstream

Develop and/or enhance your
eCommerce strategy to gain a
larger share of the 7-year
opportunity

Thank you!
Sally Lyons Wyatt
Sally.lyonswyatt@iriworldwide.com

Appendix

Our Methodology
Sales Performance
Shopping Behavior
Customer Attitudes
IRI Market Advantage™
MULO+C = Food, Drug, MassX, Club,
Dollar, Walmart, Military, and
Convenience
FreshlookIRI Market Advantage™
IRI Consumer Network™
SPINS
IRI 2017 Consumer Snacking Study

2017 state of the snack food industry pdf

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