New Age Snacks
November/December 2003
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Era of the healthy
snack
ACNielsen Closeup
| Category: |
Nutritious Snacks |
| Market Breakup All Grocery* |
$365.8 million |
| Major Convenience Stores |
+ $6.5 million |
(MAT Sep 2003 )*ACNielsen ScanTrack +ACNielsen C*Track
In much the same way as "new age" devotees are reassessing
their spiritual values, more and more people are having another look
at what they eat. If we are what we eat, then the new age will be the
era of the "healthy snack".
Our lifestyle is changing. We don't eat three big meals a day anymore,
but eat (or drink) food at least five times a day. A snack can be anything
from a piece of fruit to a soy smoothie. It can replace a meal, delay
a meal or simply be eaten between meals. A snack is single-serve and
often consumed on-the-go.
'Healthy' covers a multitude of virtues: nutritious; natural; fresh;
low-fat; high-protein; gluten-free; yeast-free, with additives such
as Omega 3; organic; not genetically modified, and environmentally-friendly.
Whew!
The main health concerns are excess weight, heart disease, diabetes
and colon cancer - all strongly linked to diet. The rise in demand for
gluten-free products is due to the increasing diagnosis of gluten allergies.
The latest trends include "good fats" as opposed to "bad
fats" and a focus on the glysaemic index. A lower value is better
for you and it relates to the slower burn of unprocessed sugars compared
to the highs and lows people experience with processed sugars. Consumers
are better informed through lifestyle programs on television and specialty
magazines.
This trend has led to the renaissance of cereals, dried fruits and
nuts. Manufacturers and suppliers are responding with products to tempt
these fussy eaters. Go Natural has relaunched its range of 97% fat-free
bars to complement its extensive range of natural nut bars. Bob &
Pete's 100% Yum introduced a gluten-free friand to cater for the growing
number of Australians diagnosed with allergies related to the gluten
and yeast that are most commonly found in bread and cakes.
"The friands, already popular with our customers, come in two
flavors - fresh passionfruit and strawberry - and are hand made with
almonds and hazelnuts," says Peter Dawson, the Pete in Bob &
Pete's 100% Yum.
"We have had a regular flow of requests from customers for a gluten-free
product signaling a growing awareness about health and nutrition. We
have a 20-year history of alternative approaches towards developing
new products that respond to changing trends in health and nutritional
expectations."
Aussi Bodies and Musashi, which specialise in functional products for
energy, muscle gain and recovery, weight loss, and high protein diets
has seen its market expand from a narrow base of body builders a decade
ago to a much bigger demographic of active people. The latest trend
is high-protein and carbohydrate reduced bars.
"There are two groups of snackers," says Jane Morrison, Communications
Manager, Musashi. "There is the Twisties and Coke brigade and the
healthy snackers. The latter want good food to maintain energy at work,
keep their weight down and manage their blood sugar levels. They keep
something in the office drawer to snack on so that they don't pig out
in the afternoon."
And, according to Aussie Bodies' marketing manager, Danny Vadasz: "Research
shows that people are looking for satiety in between meals, but they
also want their snacking to be 'guilt free'."
You know the trend is real when Cadbury gets involved. It bought Mother
Earth and then launched Fruit Chips (air-dried slices of apple) directly
in competition with traditional salty snacks. Cadbury is targeting busy,
health-conscious women by promoting Fruit Chips as a natural guilt-free
snack that is low-fat, cholesterol-free, gluten-free, MSG-free and high
in fibre.
Fruit, fibre and fat content are also the main appeal of Arnott's response
to this growing consumer demand for health snacks. Its popular Sultana
Fruit Slice has been given a makeover and a new name, SnackRight. The
range includes Mango & Passionfruit Fruit Slice, Wild Berry Fruit
Bites and Apple and Blackberry Fruit Rolls. Its range of rice chips
is also getting a new age makeover.
"Rix is the only rice chip still on the market", says John
Chatterton, Marketing Director, Arnott's Snackfoods. "The new-look
white packaging reinforces that rice is the main ingredient as well
as the health aspects such as no preservatives and baked, not fried."
It's an
adult thing
The trend is across the demographic but reinforced
by the ageing population. It is linked to the trend towards "adult
indulgence", a segment that grew over 20% in the past 12 months.
This trend is generating new products within the traditional salty snack
products. Kettle is the dominant player in this market and earlier this
year introduced exotic flavours such as Chicken, Thyme & Lemon,
Honey Soy, and Sweet Chilli & Sour Cream.
Rice crackers with Asian flavours are popular - with rice, natural
soy and seaweed all regarded as healthy foods.
The shopping habits of busy, health-conscious adults are also changing.
Even the specialised Musashi products are in 7-Eleven shops and some
service stations. In some convenience stores such as Caltex and Quix,
the trend is towards a special section or dedicated space for nutritious
snacks.
"The best location is a 'Healthy Lifestyle' stand," says
Natalie Hennessey, Executive Director, Meriram. "Such a stand would
also include roasted nuts, fruit and nut mixes, fruit, supplements,
natural confectionery such as apricot logs, some breakfast cereals and
supplements, diet foods such as Slim Fast, and even new age magazines.
The idea is to bring all the healthy lifestyle products together in
one space and provide consumer information. It's in tune with the wholistic
concept and you sell more by putting together a block of lifestyle products.
It signals a new approach to the consumer."
Meriram can put together an effective block or stand using their demographic
information based on sales in the area, market research, knowledge of
products and trends, and information from consumer health expos.
Vegetarians, not cannibals
One of the main changes you now need to consider is
the use of the valuable impulse space. Many new age snack suppliers
are vying for that precious one metre radius of space that surrounds
the console. They want you to know that the buyers of healthy snacks
will not buy lollies and chocolate bars. They will leave the store with
nothing if they don't see something healthy. So, a healthy snack offer
does not cannibalise chocolate sales. It adds to total sales.
John Chatterton from Arnott's sums it up: "Snacking is an impulse
category, and currently there is a lot of space dedicated to snacking
on the fixture. Retailers need to move snacking off the fixture and
put it into impulse, and achieve off-location displays in relevant areas
such as beverages."
Try some combos
Combos don't only work in the traditional salty snack segment.
They can be equally effective for new age snacks. Go Natural sees opportunities
in the convenience channel.
"We are developing new products for the channel," says Joel
White, GM Sales and Marketing, Go Natural Australia. "We now have
a 35g bar that retails for a dollar. We are using this bar in our combo
promotion with Up & Go. In Refuel and Fuel Zone outlets, buyers
of Up & Go, receive a 35g Go Natural Fruit Delight free. Up &
Go and Fruit Delight are both high-fibre products and fit well together.
To participate, retailers agree to stock other Go Natural products."
Take some risks
Perhaps one of the most common complaints by suppliers is
that retailers are not very adventurous.
"It is a growing market but retailers are not comfortable taking
risks," says Donald Kha, General Manager, Amyson Pty Ltd. "When
we approach retailers, in particular the service stations, they are
reluctant to try new things. When they do give the products a go they
are pleasantly surprised with the performance of the category."
Amyson imports and distributes Asian-style snacks based on peanuts
and green peas. Its range includes a small, convenient resealable 140g
tin with good potential in C-stores.
"There are a lot of new and interesting products coming onto the
market," says Morris Goodman, Managing Director, Australian Premier
Promotions (APP). "Consumers need to be educated by the retailer
and the retailer needs to be more adventurous."
APP imports San Francisco sour dough snacks and Seneca apple chips
from the USA where more than eight out of 10 bags of apple chips sold
are Seneca brand, and Alpen breakfast bars from the UK.
Healthy returns as well
Adult products tend to enjoy grown-up premiums. Even in the
traditional salty snack category, the average adult indulgence price,
$25 per kilo, is more than 10% higher than average across the salty
snack category of $22 per kilo. For Amyson's snack range, the margin
is usually above 50%, but can be as high as 100%. All agree that busy
adults will pay for quality.
"People want fresh quality products and are prepared to pay for
them," says Peter Dawson.
Liquid Snacks
The new age also heralds the "liquid snack". More than a beverage,
it is a snack that you drink rather than eat. This new category includes
smoothie-style products, liquid breakfasts and protein drinks.
Soy smoothies have been available for about four years. Soy is a new
age ingredient that is promoted on the basis of its health benefits.
"A smoothie is designed to quench a hunger rather than quench
a thirst," says Eric Belzer, Route & Convenience Store Manager,
So Natural Food Australia.
"It is consumed to postpone a meal rather than a meal replacement
and as a snack to fill the gap at times like mid-morning. So Natural
is about to launch a range of "new age" smoothies targeted
at the younger generation."
The latest in the smoothie range is liquefied fruit products. These,
and other smoothie-style products, are very popular overseas and will
make an impact here. APP is importing LiquiFruit, a 100% pure juice
in a tetrapack, from South Africa, and Smoothiepack and Groover 100%
fruit smoothies from the UK. These are all marketed as being natural
healthy alternatives. A half to three-quarter cup of pure fruit juice
is equivalent to a piece of fruit such as an apple or orange. It is
marketed as "nothing but the fruit", and the 250ml pack is
popular in convenience and route.
Up & Go, the convenient liquid breakfast, has been available since
1998. Up & Go is popular with young adult males. They tend to skip
breakfast at least twice a week, partly to save time and also because
they don't feel like a meal early in the morning. They are, however,
health conscious and know that breakfast is an important meal.
"Up & Go appeals to this group," says Daniel Derrick,
Group Product Manager - Sanitarium.
"Weetbix is known as the most nutritious breakfast cereal and
Up & Go's main claim is that it has the goodness of two Weetbix
and milk. It's a portable Weetbix - not a beverage, more a liquid food.
The breakfast occasion has always been a challenge for route and convenience,
and this is an ideal product. It is a convenience product and people
look for it in convenience stores."
Amongst the top scanning beverages are the Aussie Bodies Protein Revivals,
which Aussie Bodies says are Australia's largest selling UHT protein
boosted milk drinks. Recently, Musashi launched P30 and P40, two new
milk-based high protein drinks. In 500g and 375g sizes, they can be
thought of as a snack, a breakfast, a meal replacement or an on-the-run
food beverage.
Although these products are shelf-stable, they are best consumed cold
and, in the convenience and route channels, need to be refrigerated.
That raises the question of where to locate them. Not with the soft
drinks is the universal response. They need to be in a section that
includes products that emphasise healthy eating and drinking.
The future is fresh
Advances in the technology of distribution mean that products
can reach the consumer much faster. There is now the opportunity for
manufacturers to deliver fresh, smoothie-style beverages and new fresh
products are being developed.
This is consistent with the broader trend towards fresh produce in
C-Stores. In the past, convenience and route channel products were typically
packaged, long-life and stored ambient. This is changing and has implications
for the way you manage your store. In the new age, you will need more
refrigeration, more frequent ordering and staff trained to monitor sales
and reorder for freshness and continuity of supply.
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