Dueling trends

Increasing numbers of Americans are consuming smaller amounts of food more often — up to six times daily. And some of them are seeking better-for-you specialty food snacks to replace or supplement meals, while others are demanding healthful but slightly decadent snacks just for the pure enjoyment of it. Such trends bode well for retailers offering store brand fruit and nut snacks.

“The time is now for specialty food,” Ron Tanner, vice president of philanthropy, government and industry relations for the New York-based Specialty Food Association (SFA), said last April when launching the group’s “The State of the Specialty Food Industry 2015” report.

“Consumers are looking for new tastes, foods with fewer and cleaner ingredients, health attributes and products made by companies with values they care about,” he added.

Nuts and dried fruits, which the report states are among the 10 best-selling specialty food categories, definitely satisfy these demands.

Sales of snack nuts, seeds and corn nuts totaled a whopping $4.2 billion for the 52 weeks ending Nov. 1, 2015, up 2.1 percent from the year-earlier period, relays Chicago-based market research firm Information Resources Inc. (IRI). Dry fruit snack sales, however, slipped slightly (0.2 percent).

Driving trends

Consumers desire healthful, tasty fruit and nut snacks, says Mike Swiatkowski, vice president of sales for Hickory Harvest Foods Inc., Akron, Ohio.

“Trail mixes and blends are favored because they offer multiple textures and flavors,” he adds. “Customers want snack items that are 90 percent healthy with a little bit of bad. Trail mixes with dried fruits and nuts plus a few chocolate drops thrown in for that little something extra’ makes for a tasty yet savory treat.”

Ingredient trends include non-GMO and organic items, as well as products containing little or no additives or preservatives, says Robert Larsen, director of sales, Brothers-All-Natural Freeze Dried Fruit Snacks, a division of Brothers International Food Corp., Rochester, N.Y.

He points to a continuation of new products that feature fruit enrobed in coatings such as chocolate and yogurt. Alternative dried fruits such as baked and freeze-dried items are becoming common.

“We see more nutrient-dense products and organic products both on the fruit and nut side of the category,” says Stephan Broburg, general manager of Bellevue, Wash.-based Baobab Foods Inc., creator of nutrient-dense baobab-based superfood products. An African wild-harvested fruit packed with essential minerals and nutrients, baobab is used to make BaoBites Super Fruit Snacks, as well as private brand derivatives, baobab raw fruit powder and more.

Target the younger demographic

Millennials (age 21 to 38) represent the highest incidence of purchase (by generation) of the nuts, seeds, dried fruits and vegetables specialty food product segment, states “Today’s Specialty Food Consumer 2015,” an annual report published in September 2015 and based on research conducted by SFA and global market research firm Mintel.

Dozens of trail mix options exist today, and there is enormous potential for new blends and combinations of mixes, Swiatkowski says when asked how retailers could leverage favorable trends for their store branded fruit and nut snack products.

“Store brands can tap into local flavor trends and create their own trail mixes,” he adds. “Seasonal flavors and trends [such as the pumpkin spice trend] also offer a variety of creative new product choices for private label brands.”

Retailers also should tap into the industry knowledge of the companies that provide their store brand products.

“We know the products and flavors that sell the most and can recommend strong additions to a line as the category grows,” Swiatkowski says.

Consumers often see a product that seems to exhibit healthful qualities, “but it contains some weird man-made ingredients or it’s hopped-up with a lot of sugar,” Broburg laments. “Going with minimally processed, closer to the source of the original raw material is something that is starting to be leveraged more in terms of products. [Store brand fruit and nut snack] products should exhibit clean ingredient statements and have more nutrients delivered versus [benefits] that are promised but not fully delivered.”

On-trend packaging

When considering packaging for store brand fruit and nut snack products, retailers must remember that grab-and-go packaging and single-serve or small-serving packaging continue to dominate this category, Swiatkowski says. Such products also lend themselves nicely to clear packaging, which allows customers and potential buyers to view the wholesome ingredients.

Consumers are getting savvy when it comes to packaging labels and descriptions, especially for organic, more healthful options.

“Describing why it’s healthy, such as rich in vitamin A, is better than a more generic description such as ‘healthy choice,’” Swiatkowski says.

Single-serve packs highlight the ability of fruit and nut snacks to replace or supplement conventional salty snacks, Larsen adds.

“This works well as a grab-and-go item or a multi-pack,” he says.

Health-up the marketing message

Retailers should capitalize on the healthful aspects of dried fruit and nut snacks in marketing efforts.

“Market them as a healthy snack — an alternative to not-so-good-for-you snacks,” Larsen says.

Internet advertising has a far greater impact on healthful-ingredient snackers, claims “Healthy Ingredient Snacks in the U.S.: Cereal/Granola, Fruit, and Seed/Nut Snacks and Bars,” a September 2013 report from the Packaged Facts division of Rockville, Md.-based MarketResearch.com.

This pattern also holds in the case of banner ads, e-mail ads and full-motion video ads. Healthful-ingredient snackers also spend more money online. And they are far more likely to use social media to help them make consumer choices. High-volume healthful-ingredient snackers are far more likely than other snack consumers to purchase products advertised on their cellphones, the study adds.

Retailers launching new store brand fruit and nut snack products also should use coupons to generate consumer interest and loyalty, the study continues.

Cross-merchandising the products outside of the fruit and nut snack aisle also can help retailers gain trial.

“Stocking some healthier types of fruit and nut snacks in the produce department is good because people are looking for snacks in that category — and people put some surprising things on salads, for example,” Broburg says.

Dried fruit also can be marketed and merchandised as an “on-the-go” breakfast item, Larsen points out.

“Focus on healthy and good-for-you [packaging] call-outs,” he advises.

Do target the trends toward meal replacement and healthful but slightly indulgent snacking.

Don’t ignore consumers’ growing desire for cleaner ingredient labels.

Do invest in convenient grab-and-go packaging.

Don’t forget to reach out to health-minded snackers via social media.