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Benefiting from current consumer trends for on-the-go, valueladenitems and products with perceived health benefits, thesnack nuts and seeds segment has been booming in recentyears, with dollar sales growing 9.9% during the 52-weekperiod ended July 8, according to SymphonyIRI Group, Inc., aChicago-based market research firm.“Sales have been exceptionally strong,” notes ErikHavlick, vice-president of sales for Thanasi Foods, LLC,supplier of Bigs Sunflower Seeds. During 2011, dollar sales forthe brand grew 10% compared with the year prior, he notes,adding: “We expect similar growth in 2012, and the sustainedand growing trend for healthy options will help.”Total segment sales surpassed $3 billion in US FDMxCchannels, while unit sales increased more than four percentduring the same time period, SymphonyIRI reports.Heart-Healthy SnacksWith health aspects of products among the top five factorsinfluencing consumer purchases, according to The NielsenCo., nuts and seeds are well positioned to benefit, sourcesagree.“The health aspect of sunflower seeds is very important,”says Robert Shuler, marketing manager for Giant Snacks,Inc. “Sunflower seeds are very high in vitamin E and the fatsare heart-healthy fats.” Further satisfying consumer demandfor better-for-you products, Giant Snacks developed aninnovative process to roast seeds that uses 40% less sodium.The process is highlighted by “lower sodium” pack callouts,Schuler says, adding the company uses a touch of sugar onthe items. “It gives the seeds a bit more pop and a uniqueflavor that is very successful,” he adds.Erik Havlick agrees, saying significantly more consumersare buying based on health factors and more shoppers arebeing categorized as health conscious. “Salty snacks ingeneral represent two divergent trends,” he notes, adding:“Many consumers are seeking those healthier items and onthe other side it’s certainly a category that evolves aroundindulgence.”Justin Havlick, president and CEO for Thanasi Foods,adds seeds help meet consumers’ demand for salty snackswith a higher health perception because of naturally occurringnutrients and the relatively low amount of carbohydrates.Mark Seguin, vice-president of marketing, North Americafor Paramount Farms International, LLC, suppliers of theWonderful brand, says consumer education and outreachdone by the Almond Board of California has gone a longway in raising the health perception of the nuts, explaining:“Ninety percent of consumers now recognize almonds aregood for you. This reinforces to the consumer that you canhave your cake and eat it too.” To highlight the health aspectsof Wonderful nuts, the company includes heart health calloutson packs, he says, adding: “We’re out there talking about thegeneral benefits of the products as often as we can.”Meeting Varying Demographic NeedsWhile the segment is eaten by a broad range of consumers,the snack nuts market tends to skew to older and higherincomedemographics, according to Howard Brandeisky,vice-president of global marketing, innovation and customersolutions for John B. Sanfilippo & Son, Inc., suppliers of FisherNuts and Orchard Valley Harvest brands.“As consumers age they still want to enjoy savory snacksand perceive nuts as a healthy alternative to other options,”he says. “The population is aging and becoming moreconcerned about making healthful choices and that hasbeen supporting solid segment growth.” He explains thatcapturing younger consumers is the challenge, noting chipstend to be more popular among the demographic becauseof the lower price point. To broaden consumption in youngerdemographics, Sanfilippo is test-marketing a line of nutsinfused with caffeine to align with energy drink trends.“The growth and popularity of the energy drink market isreally being driven by a younger demographic,” he explains.“The idea was to bring the same benefit of energy drinksto snack nuts.” While snack nut buyers tend to be older,the seeds segments’ typical consumer is males in the 12- to40-year-old range, as the products are largely connected tosports, sources agree.“Sunflower seed consumption starts with consumers at ayoung age with the draw of baseball,” explains Justin Havlick.“It’s a gateway to some extent for young consumers in the14- to 16-yearold range” Though seed consumers tends tobe males, Erik Havlick says females are becoming increasinglymore engaged, adding the shift is driven by health andwellness attributes.Though sales have been strong the past few years,Brandeisky says there was some softness in pound salesduring 2011 as a result of significantly higher prices for manynut types. “Consumers are not immune to price increases,especially given the overall state of the economy,” heexplains, adding shoppers reacted to price increases byswitching to less price-sensitive nuts, such as almonds.For Paramount Farms’ Wonderful brand of pistachios andalmonds, this last point rings true, according to Seguin, whoreports the company didn’t see a lot of downward pressureon demand when commodity prices rose. While commodityfluctuation has impacted some nut types, seeds have retainedtheir value during the past few years, according to Schuler,of Giant Snacks, who adds sunflower seed sales overall havegrown in recent years, a trend he expects to continue. “It is avalue snack. For a couple of dollars consumers can eat for afew hours versus a snack for the same price that you can finishin seconds,” he says.This sentiment was also shared by Erik Havlick, whosays no other segment has that kind of familiarity-buildingtime. He adds the Bigs brand balances value and price bypositioning the seeds as premium items featuring co-brandedflavor licenses such as Vlasic Dill Pickles, Frank’s Red Hotand Jim Beam BBQ. “It’s been an effective strategy,” JustinHavlick explains, adding: “With prices 20 to 30 cents from ournearest competitor, consumers have shown they are willing topay more for a premium brand.”Aligning Packs With Eating OccasionsTo meet on-the-go consumer trends, Giant Snacks hasexpanded its tube-size packs and is introducing pour-spout,recloseable bags, which Schuler says is a first in the arena. “Ithelps keep the product fresher and is easier to consume outof the bag,” he notes, adding: “As the category has evolvedinto more unique flavor offerings, so has the packaging.”Helping to encourage sampling and bring new shoppersinto the market, Wonderful’s Seguin says the company42 OnTREND May/August 2013