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State of the Snack Industry 

Sally Lyons Wyatt 

Executive, Client Strategy & Insights 

SymphonyIRI Group

2011: The World Took on a New Look 

2 2 Copyright © SymphonyIRI Group, 2012. Confidential and Proprietary. 

Copyright © SymphonyIRI Group, 2010. Confidential and Proprietary. 

Rocky Road to Recovery 

Polarized Marketplace 

Caution Abounds

2012: Navigating the Road Ahead 



Find the Right Pricing Lever 

Offer Calories That Count 

Partner for Health & Wellness 

Provide Opportunities to Splurge Smartly 

Make Peace with Nature

Methodology 

Sales Performance 

SymphonyIRI InfoScan® Reviews 

SymphonyIRI MarketInsight 

SymphonyIRI MarketAdvantage Health & Wellness 

Claims Information 

Shopping Behavior 

SymphonyIRI Consumer Network 

Consumer Attitudes 

SymphonyIRI 2012 Consumer Snacking Study 


Copyright © SymphonyIRI Group, 2010. Confidential and Proprietary.

Agenda 

1 

2 

3 

4 

5 

The Economy 

Industry Impact 

Key Trends 

Opportunity 

Conclusions 



Economic volatility is easing somewhat 

Source: Moody’s, February 2012 

GDP 

Consumer Price Inflation 

Retail Sales 



-7.0% 

-2.5% 

-0.3% 

3.4% 

3.9% 

4.2% 

1.9% 

3.1% 

1.6% 

4.4% 

7.7% 

6.4% 

2012P 

2011 

2010 

2009

However, global economic conditions threaten U.S. 

progress 

European Union: struggles continue 

Emerging Markets: pillar of strength 

weakening 

China: end to 10% annual growth? 



Unemployment is stubborn and high 

30,000 

25,000 

20,000 

15,000 

10,000 

5,000 

Unemployed 

0 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 



Marginally attached 

Involuntary Part-time 

Number of Unemployed/Underemployed (Thousands) Unemployment & Underemployment 2000 – 2012P 

Note: White shaded areas denote recessionary periods. 

Source: Economic Policy Institute: Bureau of Labor Statistics, Current Population Survey

Many consumers are having trouble keeping up 

23% 

of consumers 

are having 

difficulty 

affording 

groceries 



The road ahead is fraught with obstacles 

% of Consumers Expecting Cost to Deteriorate in the Coming Year 

84% 



74% 

73%

Consumer expectations for the next year are 

decidedly mixed 

Anticipated Change in Personal Financial Health in Coming Year 

% of Consumers 

28% 

expect 

deterioration 27% 

expect 

improvements 



However, snack frequency is up 

Daily Snack Frequency- 2009 v 2012 

Three-Four 

24% 

Five-Six 

3% 

Seven+ 

0% 

2009 



None 

3% 

One-Two 

69% 

Three-Four 

43% 

Five-Six 

6% 

Seven+ 

2% 

2012 

None 

0% 

One-Two 

49%

Noteworthy increases across dayparts 

% of Consumers Snacking Almost Daily by Daypart- 2009 v 2012 

Late Evening 

Evening 

Afternoon 

Morning 

Early Morning 



7% 

4% 

11% 

16% 

21% 

22% 

21% 

26% 

34% 

39% 

2012 

2009

Snack volume slid in 2011 

Volume Sales Change 2011 v 2010- FDMWC 

Non-Chocolate Candy 

Chocolate Candy 

Salty Snacks 

Snack/Granola Bars 

Crackers 

Fz Novelties 

Pastry/Doughnuts 

Cookies 

Yogurt 

Ice Cream/Sherbet 

Industry Average (1.3%) 



+2.6% 

+0.2% 

+0.2% 

(0.3%) 

(0.3%) 

(0.5%) 

(0.9%) 

(1.0%) 

(1.2%) 

(4.1%)

Dollar sales climbed 

Dollar Sales Change 2011 v 2010- FDMWC 

Yogurt 





Fz Novelties 

Crackers 


Salty Snacks 

Cookies 



+7.7% 

+5.8% 

+5.3% 

+4.8% 

+4.6% 

+4.3% 

+4.0% 

+3.4% 

+3.1% 

+2.9% 

Industry Average +3.8%

Driven by increased cost of inputs along the supply chain 

Diesel Fuel 

Natural Gas/Fuel Oil 

Plastics 

Electricity 



-3% 

15% 

27% 

24% 

Note: average price per pound across bottle resin (PET), random copolymer injection (PP) and blow molding homopolymer 

(HDPE), March 2011 v March 2010. Source: Plastics News

Associated inflationary pricing trends also contributed 

to the dollar sales increase 

Yogurt 





Fz Novelties 

Crackers 


Salty Snacks 

Cookies 



$ Sales % 

Change YA 

+7.7% 

+5.8% 

+5.3% 

+4.8% 

+4.6% 

+4.3% 

+4.0% 

+3.4% 

+3.1% 

+2.9% 

Industry Average +3.8% 

PPV % 

Change YA 

+8.9% 

+6.1% 

+2.6% 

+4.6% 

+9.1% 

+4.8% 

+4.3% 

+4.4% 

+2.9% 

+4.0% 

+5.1%

In addition, declining promotional activity contributed to 

rising prices in many categories 

Price per Volume Change versus Year Ago 

Fz Dips 


Yogurt 

Snack Nuts/Seeds 

Natural Cube 

Rfg Dips 


Natural String Cheese 

Rfg Appetizers/Snack Rolls 

Toaster Pastries/Tarts 

Industry Average 



6.7% 

6.7% 

6.2% 

6.1% 

5.9% 

5.4% 

5.2% 

5.1% 

9.9% 

9.1% 

8.9% 

Pt Chg Volume w/ 

Merch. Support 

(3.0) 

(1.0) 

(1.8) 

(2.2) 

(1.1) 

(3.0) 

+0.7 

(0.7) 

(1.0) 

+3.7 

(0.6)

Grocery and Walmart lost snack volume, while drug and 

c-store channels gained 

% Growth 2011 v 2010 

Grocery 

Drug 

Walmart 

Convenience 

-1.2% 

-0.9% 



Dollar Sales Change Volume Sales Change 

2.5% 

3.3% 

4.1% 

3.4% 

5.7% 

6.3% 

Total CPG 

Snack 

-6.3% 

-4.5% 

-1.5% 

-1.5% 

1.2% 

0.9% 

3.2% 

9.6%

C-store gains cut across a majority of snack categories, 

including nearly all of the 10 largest categories 

Share Point Change (FDMwC) 2011 v 2010 

Yogurt 

Crackers 



Ice Cream 

Cookies 

Salty Snacks 



Frozen Novelties 



Grocery Walmart 

+0.1 

+0.1 

0.0 

0.0 

(0.1) 

(0.3) 

(0.5) 

(0.6) 

(1.0) 

(1.2) 

(1.1) 

(0.6) 

(1.3) 

(1.0) 

(0.4) 

(0.3) 

(0.5) 

+0.4 

+0.9 

+0.3 

CStore 

+0.2 

+0.2 

+0.9 

+0.5 

+0.2 

+0.3 

+0.8 

+0.5 

0.0 

+0.5

C-store and drug channel gains are being influenced by 

a shift away from pantry stock-up missions 


Gum 

Salty Snacks 


Yogurt 

Total CPG 

(chg 2011 v 2008) 

27% 

31% 

44% 

47% 

50% 

(1.5) 



Pantry 

Stock-Up Fill-In Quick Trip 

20% 

21% 

21% 

22% 

22% 

+0.4 

37% 

32% 

24% 

20% 

18% 

+0.8 

Special 

Purpose 

16% 

16% 

11% 

11% 

10% 

+0.3

On-the-go eating behavior is another contributing factor 

for these channel trends 



54% 

of consumers 

seek snacks that 

can be eaten on 

the go

Numerous growth opportunities exist 






Provide Opportunities to Splurge Smartly 

Make Peace with Nature

Brand loyalty has declined across several snack 

categories 

Point Change in % of Brand Loyal Buyers, 2008 v 2011 


Salty Snacks 

Ice Cream 


Yogurt 

Fz. Novelties 


Crackers 





% Brand Loyal 

Buyers, 2011 

54.9% 

19.6% 

44.0% 

50.5% 

50.5% 

52.2% 

58.9% 

31.0% 

39.5% 

29.9% 

Pt Chg 

2008 v 2011 

(5.2) 

(1.6) 

(1.3) 

(1.2) 

(1.1) 

(0.6) 

(0.3) 

+0.5 

+0.8 

+1.3

Preplanning remains as common today as it was two 

years ago 

Where Purchase Decisions Are Made 


85% 

15% 



76% 76% 77% 

24% 24% 23% 

2009 2010 2011 2012 

Store Home

Consumers often enter the store with shopping list in 

hand 

List-Making Rituals 

% of List-Making Shoppers 

70% 

of consumers 

make a 

shopping list 

before going to 

the store 



Coupons: 42% 

Store Flyer: 50% 

Internet: 9%

Today, price is as important as convenience in the store 

selection process 

Key Store Selection Considerations 

% of Shoppers 



Conveniently Located 

Lowest Every Day Prices 

Best Selection of Products 

Able to Get In/Out of Store Quickly 

Selection of Private Label 

One-Stop Shopping 

54% 

47% 

39% 

38% 

25% 

25%

Price is also heavily influencing brand decisions 



36% 

of consumers indicate that brand decisions 

are very heavily influenced by price

Consumers are perusing a range of media to get 

pricing information 

Influencers of Brand Decisions 

% of Shoppers Indicating Very Strongly Influenced 

Shopper Loyalty Discounts 

Product Label 



Coupons 

Newspaper Circular 

In-Store Flyers 

In-Store Signs/Displays 

8% 

8% 

8% 

17% 

16% 

18%

Nearly three-quarters want their favorite brands… but 

the drive for effective everyday pricing is intense 

% of Consumers Seeking Their Favorite Brands 

+10 Points! 

20% 

30% 

…at a Reasonable 

Regular Price 



44% 

…on Sale 

40% 

2009 2012 2009 2012

Sale pricing strategies are also driving volume 

% Increase in Volume, Any Merchandising 



Microwave Popcorn 

Rice/Popcorn Cakes 

Toaster Pastries/Tarts 

Prepared Pudding 

Fz Appetizers/Snack Rolls 

Dry Fruit Snacks 

Fz Dips 

Cookies 



105% 

102% 

99% 

98% 

96% 

114% 

112% 

111% 

133% 

126% 

Pt Chg 

2009 v 2011 

(32) 

(5) 

+3 

(19) 

+2 

(18) 

0 

(3) 

21 

(2)

Private label share remained essentially flat during 2011 

Private Label Share of Snack Sales: FDMx 

12.2% 



12.2% 

16.9% 

Dollars Volume 

16.8% 

2010 

2011

Snacks play an important role in hunger satisfaction 

Perception of the Role of Snacks 


Satisfy Immediate 

Hunger 

Mini Meal 

Opportunity to Get 

Needed Nutrition 



9% 

8% 

34%

Supporting strong growth of snacks boasting protein 

attributes 

Volume Sales Growth, % Change 2011 v 2010 

Across Top 10 Snack Categories 



28% 

Products with Front of Package Protein 

Attributes

As well as, categories outside the traditional sweet and 

savory realm 

Dollar Sales Growth 2011 v 2010 


+7% 

Yogurt 

+9% 



Rfg Apps/Snack Rolls 

+11% 

Rfg HH Non-Breakfast Entrees 

+6% 


+8%

Innovation is successfully providing hunger satisfaction 

across a number of snack categories 



A strong majority of consumers are trying to improve 

their eating habits 



87% 

of consumers are trying to eat 

healthier

Innovation is keeping pace 



Lightly Salted 

110 Calories 

11 g Whole Grain 

Vitamin C

Consumers’ quest for healthier living is helping to 

support growth of healthier snack options 

Healthier versus Indulgent Growth 2011 v 2010 

Healthier 

Indulgent 



3.9% 

4.0% 

0.5% 

(0.1%) 

Dollars Volume

Though overall healthier outperformed indulgent, many 

indulgent categories are showing strong growth 

Volume Growth 2011 v 2010 

Nutritional Snacks/Trail Mix 

Hummus 



Sugarless Gum 

Total Healthier 



+11.1% 

+10.5% 

+3.0% 

+2.4% 

+1.6% 

36% of healthier categories grew 

volume growth 

+0.5% 

Ch. Covered Salted Snacks 

Dried Meat Snacks 

Rfg Appetizers/Snack Rolls 

HH Non-Breakfast Entrees 

Fz Appetizers/Snack Rolls 

Total Indulgent 

+8.6% 

+6.0% 

+5.9% 

+3.8% 

+3.3% 

(0.1%) 

52% of indulgent categories grew 

volume growth

Sizable segment of the market view snacks as an 

opportunity to splurge 

55% 

of consumers are 

more likely to eat 

what tastes good 

rather than what is 

healthier 



60% 

of consumers 

often snack for 

enjoyment, not 

hunger

A time to satisfy cravings and just have fun 

Perception of the Role of Snacks 


Satisfy a Specific 

Craving 

Fun & Indulgence 

Enjoy Bold & Exciting 

Flavors 



2% 

14% 

32%

Recent snack innovation is bolstering indulgence & 

excitement across a range of snack categories 



Natural and organic foods continue to see solid growth 

2010: 

10.7% 



growth of natural and 

organic snack sales 

Source: Nutrition Business Journal estimates, for combined candy, gum, snacks and bars 

2011e: 

10.7%

Sustainability remains a growth opportunity 

Factors Influential in Snack Selection 


Reduced/More Eco- 

Friendly Packaging 

Manufacturer 

Practices Green 

Business 

Biodegradable 

Packaging 



29% 

28% 

38%

Agenda 

1 

2 

3 

4 

5 

The Economy 

Industry Impact 

Key Trends 

Opportunity 

Conclusions 



Step up efforts to influence decisions in the home, 

during the planning phase of the purchase process 



31% 

of consumers 

plan specific 

snacks before 

going to the store

Establishing and supporting brand equity is important 



54% 

of consumers indicate that brand 

decisions are very strongly influenced 

by brand trust

Lessen “fear of the unknown” by offering in-store 

product samples 

24% 

of consumers 

note that instore 

kiosks 

influence their 

snack decisions 



Don’t overlook opportunities to partner with retailers to 

keep products top-of-mind 

17% 

of consumers note that purchase suggestions by 

store personnel influence their snack decisions 



Build basket size with cross promotion and cross 

merchandising programs 

Buy Five Entrees 

Get One Ice 

Cream Free! 



Buy Four Sodas 

Get Two Chips 

Free! 

Together Get 

Incredible Value!

Gain a deep understanding of different perspectives 

around pricing of immediate consumption packages 

“If I’m buying a snack to eat 

right away, I’ll choose 

something that costs less 

than $1.00.” 



Disagree 

35% 

Neutral 

30% 

Agree 

36%

Snack role is a critical driver of snack selection 

Objective of Snack Selection- by Snack Type 




Hunger Indulgence 


Meat Snacks 

Crackers 


Yogurt 

70% 

67% 

65% 

57% 

56% 



Cookies 



74% 

56% 

47% 

42% 

32%

Make sure you address the role in messaging 

everywhere 

Satisfy your hunger! 



Twice the Protein

Play into consumers’ quest for hunger satisfaction 

56% of consumers seek snacks that 

provide an energy boost 

78% of consumers seek snacks that 

are filling/provide sustenance 



Tout benefits provided by a broad range of product 

attributes 

Important Product Attributes 




No trans fat 

Beyond basic nutrition (e.g. antioxidants) 

Fresh/not processed 

Made with whole grains 

Low fat 

High fiber 

All natural/natural ingredients 

Low calorie 

No preservatives/additives 

Low sugar 

Low cholesterol 

Vitamins/minerals 

54% 

53% 

52% 

52% 

50% 

50% 

50% 

58% 

58% 

55% 

63% 

60%

Partner with retailers in efforts to make healthier 

living easy with in-store signage… 

66% 

of consumers want 

retailers to clearly 

identify healthier 

products in the 

store 



…and targeted merchandising support… 

Fiber Plus Antioxidants 



Gluten Free! 

…fun & healthy!

…and include prominent health-related attributes on 

front-of-package designs 



All Natural 

Calories/Fat Content 

64% 

of consumers want comments or 

symbols on packages to help easily pick 

out healthier options

While well-being is important, remember to balance 

the price versus nutrition equation 

38% 



% of parents who will 

compromise on nutritional 

value to save money

Build relationships and loyalty by partnering with 

parents to pass healthy eating habits on to children 

Parental Strategies for Kids’ Snacks 


58% 

78% 

Offer snacks 

with nutrients 

47% 

Offer snacks 

that are 

fresh/not 

processed 



59% 56% 

42% 

Offer low fat 

snacks 

43% 

32% 

Offer low 

calorie snacks 

2009 

2012

Snacks provide an opportunity for smart splurges, 

such as in-home entertaining 

37% 



of consumers entertain family & friends 

at home instead of going out

Develop messaging that underscores the special 

nature of social occasions 

76% 



73% 

of consumers consider 

snacks an important 

part of social occasions 

of consumers snack 

more during social 

occasions

…and leverage media to boost the “fun” 



New media efforts are effectively driving offline 

purchase behavior 

Online Campaign Snapshot: Summer-Fall, 2011 

Overview 

Campaign Investment: $285,000 

Target: 

• Medium to Heavy Purchasers 

of Brand A Bars OR 

• Medium Purchasers of Brand 

B, Brand C, Brand D or Private 

Label Bars 

Ad Type: Flash & Rich 

Total Impressions Delivered: 60.6M 

Campaign Length: 9 Weeks 



Results: 

Household Spending: 

• +36.5% per exposed 

household 

Unit Sales: +0.12 units 

Campaign Dollar ROI: $2.33

Engage consumers with programs that strengthen 

the bridge between the Web and the retail store 

Win! 



Vote! 

Play!

Tap into consumers’ desire for self-pampering 

Something sweet after meals 

Add excitement to daily diet 

Authentic snack experiences 



40% 

37% 

34%

By making snack-time an experience 



Keep offering convenient yet cost-effective, graband-go 

snack solutions 

37% 

of consumers eat 

snacks instead of 

a meal on the go 



Packaging that suits at-home and from-home 

snacking rituals 



Drive growth by highlighting usage across snack 

occasions 

Most Common Snacks- by Snack Occasion 

% of Consumers Snacking Almost Daily During Occasion 

Ice Cream 

Salty Snacks 

Chocolate 

Snack Nuts 

Cookies 



Evening Special Occasion 

54% 

50% 

49% 

47% 

45% 



Cookies 


Snack Nuts 

43% 

38% 

26% 

16% 

15%

Develop and/or communicate products that serve one 

or more dayparts – new and old 



Keep environmental efforts in the limelight 



Chart a course for growth in 2012 and beyond! 




Provide Opportunities to 

Splurge Smartly 

Make Peace with Nature 



Everyday Pricing: Long-Term, Strategic 

Promotional: Short-Term, Tactical 

Need for Value: Ubiquitous 

Satiation/ Meal Replacement 

Dayparts: Old and New 

Nutritional Nudge 

Eating for Wellness 

Longevity and Cost-Savings 

Bringing Up the Next Generation 

Decadence without Dietary Demise 

Treats That Don’t Break the Bank 

Special Social Occasions 

Natural & Organic 

Packaging & Practices 

Talk About It



THANK YOU! 

For more information: 

Sally Lyons Wyatt 

SymphonyIRI Group 

Sally.LyonsWyatt@SymphonyIRI.com

Appendix: Healthier & Indulgent Categories 

Healthier 

Carob/Yogurt Covered Snacks 

Cheese (String & Cubes) 

Dried Fruit 


Light Ice Cream/Sherbet/ Fz Novelties 

Sensible Salty Snacks 

Popcorn (Non-Sweet) 

Pretzels 

Reduced Fat Cookies 

Reduced Fat Crackers 

Rice/Popcorn Snacks 

Salsa & Picante 



Sugarless Gum 

Trail Mixes 

Yogurt/ Frozen Yogurt 



Indulgent 

Aerosol Cheese 

Bakery Snacks & Desserts 


Chocolate Covered Salty Snacks 

Dips 

Fz & Rfg Appetizers/ Handheld Entrees 

Regular Ice Cream/Fz Novelties 

Meat Snacks 



Popcorn (Sweet) 

Pudding/Gelatin 

Regular Fat Cookies 

Regular Fat Crackers 

Regular Fat Salty Snacks 

Regular Gum 

Toaster Pastries

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