Packaged Nuts
November/December 2003
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Nuts
- a healthy new Identity
ACNielsen Closeup
| Category: |
Nuts |
|
| Market Breakup |
All Grocery* |
$180.1 million |
| |
Major Convenience Stores |
+ $2 million |
(MAT Sep 2003 )*ACNielsen ScanTrack +ACNielsen C*Track
nce thought to make you fat and harden your arteries, nuts are reinventing
themselves as a healthy snack. Here we look at how you can take advantage
of this reversal of fortunes.
Until recently, we were told to say no to nuts. Consumption was on
a downward spiral due to the belief that they are fattening and unhealthy.
Nuts were not recommended for people with coronary heart disease or
people trying to lose weight. In just a few short years, this message
has been overturned. One recent study concluded that eating a handful
of nuts five times per week could halve the risk of heart disease. Nuts
are no longer seen as one of the main culprits in obesity. On the contrary,
health authorities now recommend a serve of nuts every day.
Suppliers are capitalizing on this reversal of fortune. Planters range
of dry-roasted and honey-roasted peanuts and cashews are seen as a healthy
alternative to fried snacks. They are positioned as a special treat
for health-conscious adults. Similarly, the Sunsol and Nu-vit brands
from Meriram are targeting the new age trend.
"The consumer is becoming more health-conscious," says Natalie
Hennessey, Executive Director, Meriram. "Almonds are eaten for
their Vitamin E. We supply all kernels - raw and cooked, salted and
unsalted - and mixes. In route and convenience, roasted nuts and mixes
are the most popular."
"Nuts appeal more to adults," says David Cross, Marketing
Director, Arnott's Snackfoods.
"Nuts are a great fit with your most profitable customer. They
are looking for a healthy treat and will pay a premium. Further, they
are likely to walk out empty-handed if they don't see something they
want. That something has to be good for them. With these customers,
purchases are incremental impulse sales with a high margin."
Planters enjoyed 60% growth in the major franchised C-Stores over the
past two years. This exceptional brand growth was mainly due to the
introduction of the 50g range in 2001. Across the brands, sales of the
under 89g group of packs (mostly 50g) are growing at 32% year on year,
and sales growth of the 90g-125g group (mostly 100g) is only 1%.
"The new pack fits the needs of the convenience shopper,"
says David Cross.
"In grocery, in the larger pack sizes, the category has become
commoditised. In convenience and route, consumers still want branded,
single-serve packs."
Natalie Hennessey agrees, and adds that consumers are also looking
for information about the health benefits of nuts on packaging and displays.
Meriram is extending its range of snack packs and lunch box packs.
Although nuts still belong around the salty snack area in the store,
there is value in placing the smaller packs near point of purchase among
the confectionery. Nuts offer a relatively high margin to weight ratio
and do not take sales from confectionery. Planters provides self-display
cartons that sit on the counter and Meriram can supply special stands
for the end of the aisles.
The challenge is to position nuts in the modern context. They compete
well against other healthy snacks. This is demonstrated in the feature
article on new age snacks in this issue of Australian Convenience Store
News. In fact, nuts are a key ingredient in many new age snack products.
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