STATE OF THE SNACK FOOD INDUSTRY

Sally Lyons Wyatt 

STATE OF THE 

SNACK FOOD INDUSTRY 

March 19, 2015

Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary.

AGENDA 

Headlines 

Economic impacts 

on shoppers 

Snacking Trends 

Industry Opportunities 

Summary 


US SHOPPER SENTIMENT HAS 

BEEN ON THE RISE SINCE 2011 

IRI SHOPPER SENTIMENT INDEX 

JANUARY 2011-DECEMBER 2014 


ECONOMIC INDICATORS 

HAVE IMPROVED 

GDP 

Unemployment 

Consumer 

Price Inflation 

Retail 

Sales 

Residential 

Permits 


IMPROVED ECONOMIC INDICATORS MEANS 

SHOPPERS ARE MAKING DIFFERENT DECISIONS 

Stocking up on certain snacks 

because they are on sale 

Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 

Source: IRI / Consumer Snacking Surveys, 2015-2011



Cutting back on the amount of 

money I spend on snacks 





Buying less variety of snacks for 

the household to save a little money 





Paying more attention to 

price per serving 





Buying what is on sale more often, 

rather than favorite brands 





Trying to make the snacks I buy for the 

household last longer 



WITH POSITIVE IMPACTS ON SNACKING 

Snacking more frequently 



WITH POSITIVE IMPACTS ON SNACKING 

Treating myself to indulgent snacks or 

treats more often as a 'comfort' food 



SNACKING 

FREQUENCY HAS 

CONTINUED TO 

BE PREVALENT 

ACROSS THE DAY 

2010 2015 



DRIVING INCREASES IN CONSUMER SNACK 

CONSUMPTION REPERTOIRE 

2.6 Daily 

+17% vs 2011 

Average 

Number of 

Snacks 

Consumed 

41 % 

Snack 3+ Times per Day 

+11 pts vs 2011 


Source: IRI / Consumer Snacking Survey - 2015

THEY ARE A LARGE PART 

OF FOOD AND BEVERAGE 

CONSIDERATION SETS 


SNACKING OPTIONS ARE 

AVAILABLE WITHIN REACH 

FOR MOST CONSUMERS 

WHETHER AT HOME OR NOT 



QUICK SERVE AND LIMITED SERVE ARE WITHIN 

CONSUMERS CONSIDERATION SET FOR SNACKS 

% 

of consumers go 1 to 2 times per week 



WHAT YOU ARE DOING 

IMPACTS THE SNACKS YOU EAT 

Home 

Work/School In the Car Walking Restaurant 



VENDING MACHINES HAVE EVOLVED TO ADDRESS 

CONSUMER NEEDS AND DEMAND MOMENTS 


BLENDING 

VENDING WITH 

CONSUMER 

EXPERIENCE TO 

MEET NEEDS 

ANYWHERE AND 

ANYTIME 


THESE KEY TRENDS HAVE CONTRIBUTED TO 

FOOD SERVICE OUTPACING RETAIL 

Dollar Sales 

+2.4% 

+4.0% 

+3.1% 

+3.3% 

Foodservice 

+5.1% 

+3.3% 

+1.8% 

+2.7% 

MULO+C F&B 

2011 

2012 

2013 

2014 


Source: Technomic Foodservice Segment Time Series & IRI Total Store Advantage

SNACKING IS SLIGHTLY OUTPACING OVERALL FOOD 

& BEVERAGE AT RETAIL 

% Growth By Channel: Multi-Outlet & Convenience 

DOLLAR SALES CHANGE 

+2.9% 

Macrosnacks 

+2.7% 

F&B 

+2.7% 

Total CPG 

UNIT SALES CHANGE 

+0.7% 

Macrosnacks 

+0.6% 

F&B 

+0.3% 

Total CPG 


Source: IRI Total Store Advantage MULO+C– Full year 2014 vs YAGO

CORE SNACKING 

REBOUNDED AND 

IS NOW AHEAD 

OF EXTENDED 

SNACKING 

CATEGORIES 

Core 

$3.3% 

$ chg 

Extended 

+ 

$1.6% 

$ chg 

1.3% 

U chg 

–1.3% 

U chg 

Source: IRI Total Store Advantage MULO+C – Full year 2014 vs YAGO

ALL TOP 10 CATEGORIES REALIZED DOLLAR SALES 

GROWTH AND VARYING RANGES IN UNIT GROWTH 

SALTY SNACKS 

CHOCOLATE CANDY 

NATURAL CHEESE 

COOKIES 

YOGURT 

CRACKERS 

NON-CHOCOLATE CANDY 

ICE CREAM/SHERBET 

SNACK BARS/GRANOLA BARS 

SNACK NUTS/SEEDS/CORN NUTS 

0% 2% 4% 6% 8% 10% 

Unit % Change vs. YAGO 

$ % Change vs. YAGO 



SUSHI TOPS THE CORE 

CATEGORY GROWTH 

Dollar % Chg vs YAGO 

RFG APPETIZERS/SNACK ROLLS 

DRIED MEAT SNACKS 

BAKERY SNACKS 

RFG HANDHELD NON-BREAKFAST ENTREES 

CAROB/YOGURT COATED SNACKS 

DIPS - RFG 

NATURAL CHEESE 

PASTRY/DOUGHNUTS 

NUTRITIONAL SNACKS/TRAIL MIXES 

BREATH FRESHENERS 



TOP CORE RAW GROWTH 

Dollar Chg vs YAGO 

SNACK NUTS AND SEEDS COOKIES SNACK GRANOLA BARS 

` 

CHOCOLATE CANDY 

SALTY SNACKS 




OVERALL GROWTH FOR TOP EXTENDED CATEGORIES, 

HOWEVER PRICE PLAY FOR THE OTHERS 

Unit % Chg vs YAGO 

SPECIALTY NUT BUTTER FRESH EGGS RFG JUICE AND DRINK SMOOTHIES SOUPS/SIDES/OTHER – FZ CREAM CHEESE/CR CHS SPREAD 

LUNCHEON MEATS BAKED GOODS - RFG PIZZA - FZ JELLIES/JAMS/HONEY COTTAGE CHEESE 



CONSUMERS ARE ALSO LOOKING FOR BALANCE IN 

THEIR APPROACH WITH SNACKING… 

Satisfy Salty 

Craving 

Satisfy 

Sweet Craving 

Satisfy Crunchy/ 

Crispy Craving 

Provides 

Energy/ 

Fuel 

Provides 

Antioxidants/Health 

Benefits 

Helps to Achieve Daily 

Nutritional Goals 

Source: 2015 Snacking Survey 

– 39%+ answers 

Copyright © 2015 Information Resources, 

Inc. (IRI). Confidential and Proprietary.

KIDS MATTER WHEN EATING SNACKS AS MEALS ON THE GO 

2 % 

With 

Without kids 

kids 

24 % 



FUELING ROLES FOR BOTH INDULGENT AND SATIETY 

Hunger Satisfaction 

Indulgence 

Source: 2015 Snacking Survey 

– 39%+ answers 

Copyright © 2015 Information Resources, 

Inc. (IRI). Confidential and Proprietary.

DRIVING INDULGENT TRENDS HIGHER THAN HEALTHIER 

3.1% 2.5% 



MANUFACTURERS HAVE ANSWERED WITH 

GROWTH IN ON TARGET CLAIMS 

Growing Healthy 

Claims 

Growing Indulgent 

Claims 

71% 

37% 

51% 

47% 

26% 

19% 

15% 

10% 

31% 30% 

Natural Hormone Vegan Gluten Free Fiber 

Fiber Energy Hormone Vegan Natural 

Sweetener 



COMMUNICATING TO CONSUMERS ACROSS MEDIUMS 


% 

of consumers indulge when snacking 



WINNING CORE INDULGENT SNACKS APPEALING 

ACROSS MANY ROLES AND PREFERENCES 


PASTRY/DOUGHNUTS REGULAR NOVELTIES - FZ RFG HANDHELD NON-BREAKFAST ENTREES DRIED MEAT SNACKS 

CHOCOLATE CANDY REGULAR ICE CREAM/SHERBET BAKERY SNACKS 



BENEFITS BEYOND BASIC NUTRITION ARE WINNING 

WITH CONSUMERS 

41 % view 

+1 pts vs 2011 

snacks as an 

important part of a 

healthy eating plan 

throughout the day 

50 % of consumers seek 

snacks that offer 

benefits beyond 

basic nutrition 

+26 pts vs 2011 


Source: IRI / Consumer Snacking Surveys – 2015 - 2011

MANY OF THE TOP CORE HEALTHIER PRODUCTS GO BEYOND 

WITH PROTEIN, CALCIUM, FIBER & ENERGY CLAIMS 


CAROB/YOGURT COATED SNACKS NATURAL CHEESE NUTRITIONAL SNACKS/TRAIL MIXES BREATH FRESHENERS 

SNACK NUTS/SEEDS/CORN NUTS YOGURT DRY FRUIT SNACKS SENSIBLE PRETZELS 

SALSA 



Source: IRI Total Store Advantage – Full year 2014 vs YAGO

FRESH, NUTRITION AND SATIETY KEY DRIVERS 

AMONG THE EXTENDED WINNERS 

SPECIALTY NUT BUTTER FRESH FRUIT AND VEGETABLES FRESH EGGS 

RFG JUICE AND DRINK SMOOTHIES 

COTTAGE CHEESE 


Source: IRI Total Store Advantage and Freshlook– Full year 2014 vs YAGO

48 % of 

27 % of 

+3pt vs YAGO 

+3pt vs YAGO 

consumers 

prefer to eat 

more natural 

snacks 

consumers 

eat more organic 

or organiclabeled 

snacks 


Source: IRI / Consumer Snacking Surveys – 2015

INCLUDING 

NATURAL & ORGANIC OPTIONS 

Natural Snacks: + 12.7% 

Total Natural F&B: + 10.8% 

Organic Snacks: +11.6% 

Total Organic F&B: +13.5% 


Source: SPINS – Full year 2014 vs 2013

CONSUMERS STILL LIKE SNACKS WITHIN THE SWEET 

AND SAVORY REALM, HOWEVER INFLUENCING THE 

INCREASED SALES OF PRODUCTS OUTSIDE 

Share of Total Dollar Change vs. YA 

Total Sweet 

Total Savory 

Total All Others 

27% 

35% 

38% 



FLAVORS AND PREFERENCES SEEM HAVE CREATED 

SNACKS “SPEED DATING” 

Healthier becoming Indulgent 

Indulgent becoming healthier 

Savory blended with Sweet 


NICHE IS BECOMING MAINSTREAM - 

SMALL BRANDS, GAINING DISTRIBUTION, AND 

DRIVING LARGE GROWTH 

3-YR CAGRs 

From 

+9% to 

+277% 


Source: IRI POS for Select “niche” products

SUPER PREMIUM/NICHE BRANDS LEADING GROWTH IN 

MAJORITY OF GROWING CATEGORIES 

Super Premium Growth 

Category Growth 

Super 

Premium % 

of category 

Tortilla Chips* 

Potato Chips 

Crackers 

Trail Mix 

Cookies 

Non Chocolate Candy 

Ice Cream/Sherbert 

Natural Cheese 

Chocolate Candy 

Snack Nuts/Seeds 

Carob/Yogurt Cov'd Snk 

Snack Bars 

Yogurt 

Dried Meat Snacks* 

Pastry/Donuts 

RTE Popcorn* 

4% 

1% 

7% 

13% 

9% 

12% 

21% 

6% 

10% 

1% 

2% 

9% 

2% 

7% 

3% 

30% 

-50% 0% 50% 100% 150% 200% 


Super Premium defined as

CONSUMERS ARE LOOKING 

FOR FRESH, BUT FRESH IS NOT 

ALWAYS “HEALTHY” 


…BUT SOMETIMES IT IS 


Source: IRI FRESHLOOK – Full year 2014 vs YAGO

INNOVATION BUZZ 

Fiber Offerings Trail Mix & Popcorn Whole Grains 

Simple Ingredients Fun Spreads Yogurt Organic 

Protein 

Natural 

Bacon 

Sriracha 



SIZE YOUR CHANNEL 

STRATEGIES 


VALUE-ORIENTED CHANNELS (CLUB, DOLLAR) HAVE 

GROWN FASTER THAN TRADITIONAL CHANNELS OVER 

THE YEARS, INTERNET IS ALSO DRIVING GROWTH 

FOOD 

MASS 

CONVENIENCE 

Share 51% 

CAGR+1.9% 

Share 21% CAGR+3.4% Share 12% CAGR+4.3% 

CLUB 

DRUG 

DOLLAR 

Share 5% CAGR+4.1% Share 4% CAGR+2.5% Share 1% CAGR+10.0% 

Internet Share 1% 

All Others 

Share 6% 

CAGR+6.1% 



EMERGING CHANNELS ARE SHOWING STRENGTH 

GAINING FROM TRADITIONAL CHANNELS OF TRADE 

Macrosnacks – Penetration by Channels 

CY 2013 and CY 2014; All Outlets Point Chg vs 2011 

FOOD 

DRUG 

MASS 

CLUB 

DOLLAR 

INTERNET 


Source: IRI Consumer Network Total All Outlets – Full year 2014 vs YAGO

EVEN URBAN RETAILERS ARE 

FEELING THE “SQUEEZE” 

Growth in Convenience and the Drug Channels 


RETAILERS FINDING PL GROWTH IN SEVERAL FRESH 

CATEGORIES AND ALSO TRADITIONAL SNACK CATEGORIES 

Private Label 

+$390M 

Canned/Bottled Fruit -$21M 

Natural Cheese 

-$27M 

+$297M 

Fz-Novelties 

-2.6% 

Fresh Eggs 

8.0% 

-$27M 

10.6% 

+$80M 

Salty Snacks 

-5.3% 

Non Chocolate Candy 

+$67M 

Luncheon Meats 

7.7% 

-$31M 

Ice Cream/Sherbet 

-5.3% 

-$39M 

7.1% 

+$57M 

Pastry Doughnuts 

-2.4% 

Cold Cereal 

-4.9% 

6.6% 



PRIVATE LABEL WINNING 

WITH PREMIUM SNACK 

OFFERINGS 

$ 

unit 

s 

$ in Bn 

$ 

unit 

s 

$ 

units 

$ 

units 

$ 

units 

$ 

units 

2009 

2010 

2011 

2012 

2013 

2014 

Units remain flat while profit increases 



VARYING PRIVATE LABEL SNACKS STRATEGIES 

REALIZING VARYING RESULTS 

Private Label Macro Snacks – Dollar Sales Growth/ Declines by Retailers 

PL has 

Gained in: 

PL has 

Lost in: 



RETAILERS ARE MAKING ORGANICS AFFORDABLE 

AND MAINSTREAM 

SAM’S CLUB ORGANICS 

KROGER ORGANICS 

WALMART ORGANICS 


RETAILERS ARE STEPPING UP THEIR EFFORTS 

REGARDING PRIVATE LABEL AND ORGANICS IN 

RECENT ANNOUNCEMENTS 


PRODUCT ASSORTMENT AND INGREDIENT 

GUIDELINES WILL IMPACT SNACKING CHOICES 


PACK SIZE PLAYS AN INTERESTING ROLE IN THE 

GROWTH OF DOLLARS WITHIN MACRO SNACKS — 

LARGE OFFERS MORE VALUE 

Large 

size 

packs 

growing 

dollars 

Cottage 

Cheese 

Fresh Eggs Fz Pizza Salty 

Snacks 

Crackers RFG Drinks Popcorn 

Cakes 

Fz Soups 

Dry Fruit 

Snacks 

Mexican 

Sauce 

Yogurt 

Non- 

Chocolate 

Candy 



WHILE SMALL PACK SIZES OFFER 

CONVENIENCE AND MOBILITY 

Small 

size 

packs 

growing 

dollars 

Bakery 

Snacks 

Fz Dinners/ 

Entrees 

Ice Cream 

/Sherbet 

Jellies/Jams/ 

Honey 

Nut Butter 

Dried Meat 

Snacks 

Natural 

Cheese 

Granola 

Bars 

SS Bottled 

Juices 

Cold Cereal Rfg Dips Corn Nuts 



CHANNEL SPECIFIC DESIGN TO ADDRESS DIFFERENT 

CONSUMERS AND DIFFERENT OCCASIONS/NEED STATES 

...the Emerald brand...delivering choice, convenience and 

excitement as consumers increasingly reach for healthier 

snack options... 

Unique to Walmart 

On the Go multipacks in 

unique flavors 

Unique to Target 

Re-sealable Pouches 

Unique to Drug 

Single Serve tubes and 

fruit blended mix 

Unique to Grocery 

9oz canisters 


FIND GROWTH 

ORGANICALLY AND 

NATURALLY 


CONSUMERS INCREASINGLY RESPONDING TO SNACK 

PRODUCTS WITH GREATER TRANSPARENCY 

Mainstreaming of Non GMO 

Snacking grew 

+30.9% 

Expansion of Organic 

USDA Organic Snack 

products grew +15.3% 


Source: SPINS -52 WE 12/28/14 and 12/29/13

IN FACT, MORE HOUSEHOLDS ARE BUYING NATURAL 

SNACKS DRIVEN BY NON-GMO 

2014 HH penetration & point chg 

99.9 

75.1 

32.0 

41.2 

TOTAL SNACKS TOTAL NPI SNACKS TOTAL ORGANIC SNACKS TOTAL NON GMO SNACKS 


Source: IRI Shopper Network and SPINS NaturaLink

NPI (NATURAL) SNACKS ATTRACTING MORE 

CONSUMERS AND THOSE CONSUMERS ARE SPENDING 

MORE ON MOST NATURAL SNACK CATEGORIES 

HH Penetration Pt Chg vs YAGO 

CONVENTIONAL NPI CONVENTIONAL NPI CONVENTIONAL NPI 

COOKIES FZ NOVELTIES SALTY SNACKS 

ICE CREAM/SHERBERT 

NON-CHOCOLATE CANDY 



Source: IRI Shopper Network and SPINS NaturaLink

DRIVERS OF TOP NATURAL GROWTH WINNERS INCLUDE 

PREMIUMTIZING, NONGMO, AND ANCIENT GRAINS 

ICE CREAM POPCORN GREEK & SPECIALTY YOGURT CORN & TORTILLA CHIPS 

OTHER SNACKS SNACK BARS VEGETBLE & FRUIT CHIPS CHOCOLATE CANDY 

RICE & ALTERNATIVE GRAIN CRACKERS 

SEEDS 



CONSUMER KNOWLEDGE IS CRITICAL – CONSUMERS 

BUYING NATURAL HAVE VARYING ATTITUDES AND 

BEHAVIORS 

% US HH 

Population 

9% 14% 26% 

14% 

True 

Believers 

303 NPI $ Index 

Healthy Realists 


110 Conventional $ Index 

Indifferent 

Traditionalists 


Resistant Non-Believers 


105 Conventional $ Index 

Proud of Buying 

Natural/ 

Organic Products 

9% 11% 16% 

Fears Family 

Won’t Like 

Natural/ 

Organic 

Products 

Enlightened 

Environmentalists 


Strapped Seekers 


Struggling Switchers 


108 Conventional $ 

Index 


Source: IRI Shopper Network and SPINS NaturaLink 

Source: SPINS NaturaLink

CONTEMPORIZE YOUR 

BRAND ENGAGEMENT 


CONSUMER NEEDS CONTINUE TO FRAGMENT, DRIVEN 

BY INCREASINGLY DIVERSE SEGMENT LIFESTYLES 

AND PREFERENCES 

19% 

of Macrosnacks 

dollar Sales, 20% 

share of population 

41% 

of Macrosnacks 

dollar Sales, 36% 

share of population 

Millennials 

• Health 

• Convenience 

• Brand Trust 

• Customization 

Boomers 

• Wellness 

• Convenience 

• Customization 


Source: Nutrition411.com

MILLIENNIAL AND BOOMERS SHARE SOME SNACKING 

HABITS 

% 

of consumers are reducing 'impulse' snack 

purchases 



HOWEVER HAVE STATED SOME DISTINCTLY 

DIFFERENT ACTIONS 

Younger 

Millennials 

Older 

Millennials 

Younger 

Boomers 

Older 

Boomers 

36% say they 

are Snacking 

more frequently 

30% are eating 

more preportioned 

snacks 

32% Bringing 

meals/snacks to 

work or school 

more often 

26% Cutting 

back on the 

amount of 

money I spend 

on snacks 

28% Buying 

what is on sale 

more often, 

rather than 

favorite brands 

27% Cutting 

back on the 

amount of 

money I spend 

on snacks 



MACROSNACK TRENDS MIRROR THEIR STATED ACTIONS 

Younger 

Millennials 

(18-24) 

Older 

Millennials 

(25-34) 

Younger 

Boomers 

(45-54) 

Older 

Boomers 

(55-64) 

Purchase Size: 

$12.98 +9.4% 


$14.81 +4.8% 


$13.37 +0.9% 


$11.52 +1.4% 

Frequency: 

75.5 -4.2% 

Frequency: 

85.2 -1.0% 

Frequency: 

114.7 -0.9% 

Frequency: 

121.12 -0.1% 



EATING SNACKS AS MEALS AT HOME IS BECOMING 

THE NORM FOR MAJORITY OF CONSUMERS 

Younger 

Millennials 

(18-24) 

45% 

Older 

Millennials 

(25-34) 

43% 

Younger 

Boomers 

(45-54) 

41% 

Older 

Boomers 

(55-64) 

23% 



SNACKING ACROSS THE DAY VARIES ACROSS THE 

GENERATIONS 

Younger 

Millennials 

(18-24) 

64% 

Older 

Millennials 

(25-34) 

54% 

Younger 

Boomers 

(45-54) 

43% 

Older 

Boomers 

(55-64) 

33% 

3+ Snacks per day 



MILLENNIALS SNACK ACROSS THE ENTIRE DAY, 

WHILE BOOMERS TEND TO START A LITTLE LATER 

AND TAPER OFF A LITTLE EARLIER 

Early Morning 

Morning 

Younger Millennials 

Older Millennials 

Younger Boomers 

14 

Older Boomers 

13 


42% 


46% 


31% 

Older Boomers 

22% 

39% 

30% 


Afternoon 

Evening 

Late Evening 




Older Boomers 


61% 


57% 


52% 

Older Boomers 

51% 

61% 

73% 

86% 

76% 


52% 


49% 


46% 

Older Boomers 

28%

DRINKING A YOGURT SMOOTHIE AS A SNACK IS A 

FAVORITE AMONG 51% OF CONSUMERS IN THE MORNING 

AND AFTERNOON 

Morning 

Lunch 

Afternoon 

Evening 

Special Occasion/ 

Younger 

Millennials 

Younger 

Millennials 

Entertainment 

Older 

Millennials 

Older 

Millennials 

Younger 

Boomers 



72% OF CONSUMERS SNACK ON YOGURT ACROSS THE DAY 

Morning 

Lunch 

Afternoon 

Evening 


Entertainment 



Younger 

Boomers 

Younger 

Boomers 

Older 

Boomers 

Older Boomers 



BAKERY SNACKS ARE CONSUMED BY 81% OF CONSUMERS 

BUT NOT ALL IN THE MORNING 

Morning 

Lunch 

Afternoon 

Evening 


Entertainment 



Younger 

Boomers 


Older 

Boomers 

Older Boomers 



90% OF CONSUMERS EAT FRESH FRUIT AS A SNACK 

ACROSS THE ENTIRE DAY 

Morning 

Lunch 

Afternoon 

Evening 


Entertainment 




Older Boomers 



SIZE AND ASSORTMENT PLAY A ROLE IN OUTLET CHOICE 

Younger 

Millennials 

(18-24) 

Older 

Millennials 

(25-34) 

Younger 

Boomers 

(45-54) 

Older 

Boomers 

(55-64) 

Mass* 

Club 

Grocery 

Internet 

Mass* 

Club 

Grocery 

Internet 

Dollar 

Convenience 

Internet 

Drug 

Dollar 

Grocery 

Club 



UNDERSTANDING WHICH TARGET GROUPS ARE DRIVING 

GROWTH ACROSS GENERATIONS IS IMPORTANT 

Younger 

Millennials 

(18-24) 

Older 

Millennials 

(25-34) 

Younger 

Boomers 

(45-54) 

Older 

Boomers 

(55-64) 

Pre-K Families 

Empty Nesters 

Mature 



AS WELL AS, UNDERSTANDING THE TRIP TYPES 

DRIVING GROWTH 

Younger 

Millennials 

(18-24) 

Older 

Millennials 

(25-34) 

Younger 

Boomers 

(45-54) 

Older 

Boomers 

(55-64) 

Pantry Stock Up 

Quick Trip 

Pantry Stock Up 

Fill in 



AGE MATTERS FOR TARGETING PRODUCT CLAIMS 

160 

Dollar Distribution Index by Age Group 

140 

120 

100 

80 

60 

40 

20 

0 

Gluten Free 

All Natural 

Ingredients 

Organic High Protein High Fiber No HFCS No 

Hormone/Non 

GMO 

25-34 45-54 55-64 



USE SOCIAL MEDIA BECAUSE IT IS A GREAT 

INFLUENCER OF SNACKING HABITS DUE TO ITS 

LARGE OUTREACH IN A SHORT TIME SPAN 


FIND A WAY TO APPEAL TO ALL GENERATIONS, EVEN 

IF YOUR BRANDS ARE OVER 100 YEARS OLD! 


TAILOR-MADE 

INNOVATION AND/OR 

M&A 


TO COMPETE IN THE NEW WORLD, MANUFACTURERS 

ARE ACQUIRING ORGANIC COMPANIES CREATING AN 

INTERESTING MOSAIC 


Source: Philip Howard, Associate Professor 

– Michigan State University

TAILOR-MADE SOLUTIONS ARE POPPING UP ONLINE 

AND OFF 



TAILOR-MADE CAN ALSO REFLECT DISEASE STATES OR 

ALLERGIES WHICH IMPACT CONSUMER SNACK DECISIONS 

Allergy Free Snacks 

+33.5% $sales 



KEEP A WATCHFUL EYE 

ON UPCOMING TRENDS 


EMERGING TRENDS 

Fair Trade Claims Vegan Snacks Ancient Grains & Sprouted Grains 

Premium-tized Organic Natural Chocolate Candy Raw Chocolate 


WITH ALL OF THESE TRENDS, 

THE FUTURE LOOKS BRIGHT 

FOR SNACKING 

Projecting snack sales to be 

$200 Billion in 2020 

Millennials 

Boomers 


CAPTURE YOUR GROWTH OPPORTUNITIES 

SIZE YOUR 

CHANNEL 

STRATEGIES 

FIND GROWTH 

ORGANICALLY 

AND NATURALLY 

CONTEMPORIZE YOUR 

BRAND ENGAGEMENT 

TAILOR-MADE 

INNOVATION 

AND/OR M&A 

WATCHFUL EYE 

ON UPCOMING 

TRENDS 

• Evaluate product 

positioning vs. 

category, and 

strategy to 

capitalize on all 

channels (incl. 

ecommerce) 

• Align assortment 

and distribution 

strategies 

against 

consumers’ 

preference and 

channel 

behaviors to get 

the right product 

to the right 

place at the 

right time 

• Prioritize stores 

for optimal 

execution 

• Focus your 

strategy and 

target based on 

attitudes and 

behaviors 

• Targeted 

assortments, 

price and 

communications 

are key to getting 

it right with 

natural and 

organics 

• Gain an understanding 

of how Millennials and 

Boomers engage with 

your products at home 

and away 

• Find creative ways to 

differentiate your 

product and interact 

differently with target 

consumers 

• Explore day parts, trip 

missions opportunities 

• Ensure assortment has 

options for different 

age groups and their 

health preferences 

(e.g., allergy, 

nutritional, etc.) 

• Customize innovation 

to appeal across the 

generations for 

established brands 

and/or breakthrough 

innovation 

• Innovate products to 

appeal to consumers 

with allergies and/or 

disease states 

• Investigate your 

options within latest 

trends like 

Premiumtizing,, Raw 

Chocolate, Vegan, 

Spouted Grains and 

Ancient Grains to 

capture additional 

growth 

• Embrace fastest 

growing trends 

in Natural 

Channel and 

QSR/LSR 

• Keep ingredients 

simple & 

communicate on 

package 

• Monitor eating 

landscape and 

trends to identify 

new sales 

opportunities 


THANK YOU! 

SALLY LYONS WYATT 

SALLY.LYONSWYATT@IRIWORLDWIDE.COM 


METHODOLOGY 

Sales 

Performance 

• IRI Market Advantage 

• MULO+C = Food, Drug, MassX, Club, Dollar, Walmart, Military, and Convenience 

• SPINS - SPINS Natural Channel + MULO 

• FreshlookIRI Market Advantage 

• MULO+C = Food, Drug, MassX, Club, Dollar, Walmart, Military, and Convenience 

• SPINS - SPINS Natural Channel + MULO 

• Freshlook 

Shopping 

Behavior 

• IRI Consumer Network 

Customer 

Attitudes 

• IRI 2015 Consumer Snacking Study 

• NutriLink Segmentations 

• MarketPulse Survey 


MACROSNACK 

CATEGORIES 

HEALTHIER 

INDULGENT 

CORE 

SNACKS 

EXTENDED 

SNACKS 

• Carob/Yogurt Covered Snacks 

• Cheese (String & Cubes) 

• Dried Fruit 

• Dry Fruit Snacks 

• Light Ice Cream/Sherbet/ Fz 

Novelties 

• Sensible Salty Snacks 

• Popcorn (Non-Sweet) 

• Pretzels 

• Reduced Fat Cookies 

• Reduced Fat Crackers 

• Rice/Popcorn Snacks 

• Salsa & Picante 

• Snack/Granola Bars 

• Snack Nuts/Seeds 

• Sugarless Gum 

• Trail Mixes 

• Yogurt/ Frozen Yogurt 

• Breath Fresheners 

• Rfg Juice And Drink Smoothies 

• Specialty Nut Butter 

• Peanut Butter 

• Rfg Baked Goods 

• FZ Soups/Sides/Other 

• Fresh Eggs 

• Jellies/Jams/Honey 

• Cream Cheese/Cr Chs Spread 

• Fz and Rfg Pizza - Fz 

• Aerosol Cheese 

• Bakery Snacks & Desserts 

• Chocolate Candy 

• Chocolate Covered Salty 

Snacks 

• Dips 

• Fz & Rfg Appetizers/Handheld 

Entrees 

• Meat Snacks 

• Non-Chocolate Candy 

• Pastry/Doughnuts 

• Popcorn (Sweet) 

• Regular Fat Cookies 

• Regular Fat Crackers 

• Regular Fat Salty Snacks 

• Toaster Pastries 

• Regular Gum 

• Regular Ice Cream/FZ Novelties 

• Toaster Pastries 

• Other Snacks – Fz 

• Soup 

• Canned/Bottled Fruit 

• Luncheon Meats 

• Cold Cereal 

• Cottage Cheese 

• Rfg Tortlla/Eggrll/Wontn Wrap 

• SS Bottled Juice And Drink 

Smoothies 

• Breakfast Drink Mixes

STATE OF THE SNACK FOOD INDUSTRY

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