Healthy Snacking - US - February 2008

Table of Contents

• Scope and Themes
• What you need to know
• Definition
  • Figure 1: Foods eaten as healthy snacks, December 2007
• Data sources and methodology
• Sales data
• Consumer survey data
• Methodology
  • Figure 2: Usage of nuts/seeds as a snack and as a "healthy" snack, 2007
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Broad-based government action key to long-term healthy snacking growth
• Competition is growing for healthy snacks
• Segmentation reveals struggle between eating what you want and eating right
• Segment overview
• Factors impacting healthy snack sales
• Frito-Lay and Kellogg' s differentiate brands
• Less healthy snacks drive innovation
• Marketing healthy snacks
• Healthy snacks demonstrate healthy frequency of use
• What' s important to consumers--the plus/minus factor
• Taste and satisfaction reign supreme
• Healthy snacks for kids
• Competitive Context
• A complex competitive market
• Foodservice vying for its share of the snack market
• Segment Performance
• Key points
• Portion-control packaging implies healthy snack
• Adding functional benefit to elevate health association
• Healthy snackers desire full flavor
  • Figure 3: Selected foods used as healthy snacks, by FDM sales and percentage of use, 2007
• Segment Performance--Nuts and Seeds
• Key points
• Nuts rank high on healthy snacking scale--opportunities remain to add value with flavor and packaging applications
  • Figure 4: Usage of nuts/seeds as a snack and as a "healthy" snack, 2007
• Segment Performance--Dried Fruit and Fruit Snacks
• Key points
• Dried fruit is innately healthy and convenient
• Fruit snacks operate from a less healthy platform
  • Figure 5: Usage of dried fruit and fruit snacks as a snack and as a "healthy" snack, 2007
• Segment Performance--Yogurt
• Key points
• Strong alignment between yogurt and health--opportunity to improve association as a snack food
  • Figure 6: Usage of yogurt as a snack and as a "healthy" snack, 2007
• Segment Performance--Rice Cakes
• Key points
• Rice cakes may be healthy, but scope of users is limited
  • Figure 7: Usage of rice cakes as a snack and as a "healthy" snack, 2007
• Segment Performance--Trail Mix
• Key points
• Trail mix is a go-to snack with a healthy proposition--but could be at risk
  • Figure 8: Usage of trail mix as a snack and as a "healthy" snack, 2007
• Segment Performance--Snack Bars
• Key points
• Varied offerings discount healthy image
• Focus on nutrition
  • Figure 9: Usage of snack bars* as a snack and as a "healthy" snack, 2007
• Segment Performance--Popcorn
• Key points
• Merging health with RTE convenience to build popcorn' s healthy snack image
  • Figure 10: Usage of popcorn as a snack and as a "healthy" snack, 2007
• Segment Performance--Cheese
• Key points
• Promoting cheese as a snack food
  • Figure 11: Usage of cheese as a snack and as a "healthy" snack, 2007
• Segment Performance--Pretzels
• Key points
• Add health value to pretzels and give flavor a kick
  • Figure 12: Usage of pretzels as a snack and as a "healthy" snack, 2007
• Segment Performance--Potato/Corn Chips
• Key points
• Chips rank low as a healthy snack--baked, reduced fat, 100-calorie packs and healthier oil increase nutritional stance
  • Figure 13: Usage of potato/corn chips as a snack and as a "healthy" snack, 2007
• Market Drivers
• Broad-based government action key to long-term healthy snacking growth
• Hold the fat! No significant change in adult obesity rates
• Children continue to battle the bulge
  • Figure 14: Attributes important to choosing snack for children, December 2007
• Scientific research fuels consumers' perception of what is healthy
• Selected Brand Analysis--Nuts/Seeds
• Key points
• Contemporary flavors increase appeal by offering variety to snackers
  • Figure 15: Selected FDM brand sales of nuts/seeds in the U.S., 2006 and 2007
• Explicitly targeting health-minded consumers with NUT-rition line and single-serve packaging
• Blue Diamond is successful with BOLD flavors; Emerald offers sweet and savory
• Promotion of lesser-known nuts and seeds offers growth potential
• Selected Brand Analysis--Dried Fruit and Fruit Snacks
• Key points
• Conveniently delivering exotic flavor experiences and functional health
  • Figure 16: Selected FDM brand sales of dried fruit and fruit snacks in the U.S., 2006 and 2007
• Brands featuring unusual fruit or fruit mixes are attracting attention
• Ocean Spray and Sunsweet score with functional benefits of cranberries and dried plums
• Selected Brand Analysis--Yogurt
• Key points
• Dannon, Yoplait kids' brands should emulate adult yogurt nutritional value
  • Figure 17: Selected FDM brand sales of yogurt in the U.S., 2006 and 2007
• Dannon innovates with functional benefits; Yoplait Light and Weight Watchers court dieters
• Danimals: applying lessons learned
• Selected Brand Analysis--Rice Cakes
• Key points
• Frito-Lay dominates sales--fueling growth through calorie-control packs
  • Figure 18: Selected FDM brand sales of rice cakes in the U.S., 2006 and 2007
• Selected Brand Analysis--Trail Mix
• Key points
  • Figure 19: Selected FDM brand sales of trail mix in the U.S., 2006 and 2007
• New brands enter segment to challenge Planters
• Selected Brand Analysis--Snack Bars
• Key points
• Yin and yang: balancing convenience and health
• Where' s the fruit?
• Momentum favors healthier products and flavor innovation
• Brand power: Kellogg' s flexes Special K muscle
  • Figure 20: Selected FDM brand sales of yogurt in the U.S., 2006 and 2007
• Selected Brand Analysis--Popcorn
• Key points
• Snackers want healthy popcorn brands...
• ...but RTE convenience is also in demand
  • Figure 21: Selected FDM brand sales of popcorn in the U.S., 2006 and 2007
• Implied healthier branded popcorn like Frito-Lay' s Smart Food perform well
• Ready-to-eat popcorn brands rise--proving convenience is king
• Selected Brand Analysis--Cheese
• Key points
• Inherently healthy natural cheeses packaged and formatted for snackability
• Processed cheeses can find a niche among healthy snackers
  • Figure 22: Selected FDM brand sales of processed cheese in the U.S., 2006 and 2007
• Natural cheese appeals to healthy snackers--featuring form and function
• Few processed cheese brands healthy cheese snackers can turn to
• Selected Brand Analysis--Pretzels
• Key points
• Moving beyond fat-free to attract current health-conscious snackers
• Creating excitement with flavor innovation
  • Figure 23: Selected FDM brand sales of pretzels in the U.S., 2006 and 2007
• Snyder' s and Utz--offering healthier pretzel choices
• Brands offering flavor innovations reap greatest gains
• Selected Brand Analysis--Potato Chips
• Key points
• Frito-Lay seeks healthier position for all its chip brands
• Brands succeed with baked and reduced fat varieties
  • Figure 24: Selected FDM brand sales of potato chips in the U.S., 2006 and 2007
• Regular and light brands fall; baked and reduced fat thrive
• Pringles targets healthy snackers with calorie-controlled options
• Brand Qualities
• Frito-Lay
• The Kellogg Company
• Innovation and Innovators
• Product launches targeting healthy snackers escalate
  • Figure 25: New healthy snack product launches*, by sub-category, 2003-07
• Healthy snacking innovators
• PepsiCo (Frito-Lay/Quaker)
• Kellogg' s
• Advertising and Promotion
• Overview
• Health benefits
• Product reformulations
  • Figure 26: Television ad for Lay' s with sunflower oil
• Functional health
  • Figure 27: Television ad for Dannon Activia
  • Figure 28: Television ad for Kraft LiveActive
• Healthy living
• Lifestyle changes
  • Figure 29: Television ad for Frito-Lay SunChips
  • Figure 30: Television ad for Laughing Cow Cheese
  • Figure 31: Television ad for Emerald Snack Nuts
  • Figure 32: Television ad for Sun-Maid Raisins
  • Figure 33: Television ad for Special K bars
  • Figure 34: Television ad for Quaker Granola Bites
• Diet-centric
  • Figure 35: Television ad for Yoplait
• Small packaging is big in advertising
  • Figure 36: Television ad for Pringles Mini
  • Figure 37: Television ad for Sunsweet Ones
  • Figure 38: Television ad for Quaker Mini Delights
• Usage
  • Figure 39: Foods considered snacks, December 2007
  • Figure 40: Foods eaten that are considered healthy snacks, December 2007
  • Figure 41: Percentage consumnption as healthy snack, December 2007
• Frequency of Use
  • Figure 42: Frequency of healthy snack consumption, December 2007
  • Figure 43: Frequency of healthy snack consumption, by age, December 2007
  • Figure 44: Frequency of healthy snack consumption, by HH income, December 2007
• Attitudes and Motivations
• Low-in claims
  • Figure 45: Importance of low-in claims when choosing a healthy snack, by gender, December 2007
  • Figure 46: Importance of low-in claims when choosing a healthy snack, by age, December 2007
  • Figure 47: Importance of low-in claims when choosing a healthy snack, by HH income, December 2007
  • Figure 48: Importance of low-in claims when choosing a healthy snack, by race/ethnicity, December 2007
• Added-value claims
  • Figure 49: Importance of added-value claims when choosing a healthy snack, by age, December 2007
  • Figure 50: Importance of added-value claims when choosing a healthy snack, by race/ethnicity, December 2007
• Taste/appetite/looks
  • Figure 51: Importance of taste, appetite satisfaction, and packaging when choosing a healthy snack, by gender, December 2007
  • Figure 52: Importance of taste, appetite satisfaction, and packaging when choosing a healthy snack, by age, December 2007
  • Figure 53: Importance of taste, appetite satisfaction, and packaging when choosing a healthy snack, by race/ethnicity, December 2007
• Appendix: Trade Associations