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May 2012

Of cial Of cial Magazine Magazine of of the the Snack Snack Food Food Association Association

2012 State of the Industry

www.sfa.org
CFA I Convenience Foods Association

Mary Rudolphs Lesson #21:

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When she wasnt teaching, Mary Rudolph was on a mission to create the best tasting pork rinds in America. Now, more than 50 years later, her secret recipe lives on. In fact, in a recent blind taste test, Rudolphs Pork Rinds were preferred on average 64% over other snack brands. Do the math. Nothing sells better than quality, flavor and a consistently delicious product. Call Rudolphs at 800.241.7675 to learn how you can become a part of our secret recipe today!

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9 SFAs 75th Anniversary 15 State of the Industry

FEATURES

VOLUME FIVE, ISSUE TWO

In recognition of the associations historical milestone, Snack World focuses on opportunities in the 21st century and looks back at the industry in the 1940s and 1950s. Despite the sluggish economy, snack food sales remain strong as the industry responds to changing consumer demands. Also, nd the latest sales data and product trends for the various snack food categories. SFA tackles a packed agenda during the Legislative Summit in Washington, DC.

55 Taking it to Capitol Hill 57 Cause to Celebrate


SFA Board of Directors SFA Staff
President and Chief Executive Of cer James McCarthy jmccarthy@sfa.org ext. 201 Vice-President, Operations, Member Services & Education Christopher Clark cclark@sfa.org ext. 218 Trade Show Manager Wendy Stevens wstevens@talley.com (856) 423-7222, ext. 262 Director of Meetings Liz Wells lwells@sfa.org ext. 202 Coordinator, Member Services David Walsh dwalsh@sfa.org ext. 213 Chairman Scott W. Smith, Shearers Foods, Inc. 1st Vice Chairman William Chip Mann, II Pretzels, Incorporated 2nd Vice Chairman J. Mark Singleton Rudolph Foods Co., Inc. Treasurer Mike Harper, Rudolph Foods Co., Inc. James A. McCarthy Snack Food Association Past Chairman (2011-12) Matt Colford, Old Dutch Foods, Inc. Past Chairman (2010-11) Mike Stick, Snyders-Lance, Inc. Secretary Marc L. Kesselman, Frito-Lay, Inc. AEC President Jeff Almond Heat and Control, Inc. SFA General Counsel Martin Hahn, Hogan Lovells US LLP Todd Staub Utz Quality Foods, Inc. Jesse Spungin ConAgra Foods, Inc., Snack Foods Division Chris Hood The Procter & Gamble Company Ron Jones Snak King Corp. T. J. Rooney Kraft Foods (Snacks & Cereals Sector) Carl E. Lee Snyders-Lance, Inc. Canadian Snack Food Association Rep. Calum MacLeod PepsiCo Foods Canada

DEPARTMENTS
4 7 63 64 66 Letter from SFA Suppliers Corner New Snacks Products & Services Advertisers Index

This years SNAXPO proves to be one of the most successful as SFA rings in its 75th anniversary.

Snack World Staff


Editorial Bob Gatty bob@gattyedits.com Design Ryan Cain Advertising Sales Paul Lattan Dan Malovany dmalovany@sosland.com plattan@sosland.com Shane Whitaker swhitaker@sosland.com Lucy Sutton lsutton@sosland.com Subscription Coordinator Christopher Clark cclark@sfa.org

Snack Food Association


1600 Wilson Blvd. Suite 650 Arlington, VA 22209 Phone: (703) 836-4500 or (800) 628-1334 Fax: (703) 836-8262 Web: www.sfa.org E-mail: sfa@sfa.org

Trade Show Sales Manager Terri Sullivan tsullivan@talley.com (856) 423-7222, ext. 230

David Cantrell AEC 1st Vice President Land OLakes Ingredients Fred Hesser AEC 2nd Vice President C-P Flexible Packaging Jim Frazier Evans Food Group, Ltd. John Susko Baptistas Bakery, Inc. Stephen Sibert Diamond Foods, Inc. Christopher Wyse Frito-Lay, Inc. Mike Scott Wise Foods, Inc.

Convenience Foods Association CFA


Snack World is the of cial magazine of the Snack Food Association and is produced in conjunction with Sosland Publishing. Snack World is distributed free-of-charge to members of the organization. SUBSCRIPTIONS: Contact Chris Clark, cclark@sfa.org. SFA and Sosland Publishing assume no responsibility for the validity of claims in items reported. 2012 Snack Food Association. All rights reserved. Reproduction of the whole or any part of the contents without written permission is prohibited. Printed in U.S.A.

www.sfa.org

May 2012

Snack World

Letter from SFA

Opportunities for Growth A


McCARTHY

s always, the Snack Food Association (SFA) is working hard to provide information and services to our members and focusing on key issues and developments that are important to your businesses. This dedication to service and value has been a hallmark of your association for the past 75 years. Coming soon will be a new SFA tool, a risk assessment template designed to help companies comply with new rules and regulations from the Food Safety Modernization Act (FSMA). The template will be tailored for speci c types of snack food products and designed to make compliance with this complex law as painless as possible. Watch for details in The Snack Report and on www.sfa.org. In addition, SFA will sponsor a basic Hazard Analysis Critical Control Points (HACCP) course for our industry immediately following the Total Quality Management (TQM) course at The Ohio State University in Columbus, OH, Aug. 18. Most companies in our industry must develop detailed HACCP food safety plans to comply with the new law. The TQM program will be held Aug. 12-17 at The Blackwell Inn on Ohio States campus. We urge all member companies to participate. As you read this, SFA just completed our 2012 Legislative Summit, during which we met with members of Congress and key staff members to express our views on important issues affecting our industry, including SFAs opposition to any user fees imposed under FSMA. Visit www.sfa.org for details on this event, which also included a special Capitol Hill reception commemorating SFAs 75th anniversary. Inside this issue, you will nd an article covering the major issues discussed during the summit. Finally, we want to draw your attention to our annual State of the Industry report published in this issue. You will nd detailed analysis of the industry overall from SymphonyIRI Group, as well as breakdowns of major categories within the snack food industry with analysis of their performance over the past year. We hope you enjoy this issue and nd it valuable. We also welcome your comments and suggestions for future articles and content. Sincerely,

SMITH

Scott W. Smith Chairman Snack Food Association President Shearers Foods, Inc.

Jim McCarthy President and CEO Snack Food Association

Snack World

May 2012

www.sfa.org

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Suppliers Corner

Keep Moving Forward I

am proud to serve as your Associate Executive Council president for the next year. For 23 years, I have served the Snack Food Association (SFA) in some capacity, and this has been a tremendous experience. So I thought I would share what SFA has meant to me and my company over the years. As I talked to various people at SNAXPO this year, I recognized that their experiences were diverse. Much is based on your tenure in SFA, how you network before and at the show, your product offerings, and your relationships with key decision-makers. The best advice I received early in my career was to get involved, continuously serve, embrace change and pass it on. The key to success in the snack food industry is to get involved. Ours is a unique industry that is like family. Volunteer on committees or subcommittees, and be active. At SFA, associate members actually have a voice, and you can in uence change as you work toward becoming a director. By getting involved, you forge great business relationships and lifelong friendships. Another key to success is to continuously serve. I have served on almost every SFA committee during the past 20 years, and I urge you to do the same. It provides an opportunity to network with people with different views and interests than your own, and interacting with business and associate members ampli es the experience. Once you start serving, dont stop. Appoint key people within your organization to focus on this industry and keep them involved. During tough times, SFA needs you the most. Embrace change; it is necessary. SFA and its committees have done a great job adapting. Be active in the process of change. As individuals or companies, we wont always get our way, but collectively, SFA will continue to adapt to serve both business and associate members. Finally, pass it on. Work hard to help the young professionals and new folks in our industry. This ensures continued growth of our network. I have had many mentors along the way, and this relationship usually started with a handshake, an arm over my shoulder and, Now, son, let me tell you how it is done. This may sound corny, but a big part of our associations success is due to those who have bridged the gap between generations and passed it on. Both Heat and Control/Ishida and I have put a lot into SFA through the years, and we have truly bene ted from our involvement. Our company serves many industries, but none are quite like snack foods. So get involved and pass it on. Lets keep SFA moving forward. Sincerely, .

ALMOND

Jeffrey W. Almond President Associate Executive Council Industry Manager, Snack Food Packaging Heat and Control, Inc. jeffa@heatandcontrol.com

www.sfa.org

May 2012

Snack World

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75th Anniversary

Forging Ahead in the New Millennium


C
BY BILL LEVY hanging market conditions, including the emergence of Wal-Mart in the food business and the rapid growth in warehouse club stores, as well as the need for product innovation, the ckle economy and increasing demand for private label products helped several companies make quantum leaps in the marketplace as the new millennium got under way. As the 21st century approached, the snack industry was keeping its eyes on some relatively new, fast-growing companies that held the belief: If you have a good idea, execute it well and reinvest in your company, you can make it in the highly competitive snack food business. One of these companies was Shearers Foods, Brewster, OH, which began making its rst Shearers brand potato chips in 1974, with a single 125-lb kettle cooker. By 2000, Shearers potato chips were a best-seller in its marketing area, and the company had become a major player in supplying private label products as well as contract packaging for many others. Whether it was its own brand or those of any of its private label or contract manufactured customer, Shearers demanded perfection in every bag, including its award-winning kettle-cooked chips. At the same time Shearers was making its mark as a snack producer, CEO Bob Shearer had become an active force in the industry, leading to his being elected chairman of the Snack Food Association (SFA). Nalleys Canada started in 1995 as private label producer of snacks, In 2000, it was acquired by Snack Alliance, which moved the company to

Snack food processors take advantage of 21st century opportunities.


Hermiston, OR, where it began producing potato chips in a former potato processing plant with equipment purchased from Anheuser-Buschs defunct Eagle Snacks. Snack Alliance eventually purchased manufacturing capacity in the Eastern US, enabling it to become a nationwide supplier of Wal-Marts Great Value store brand potato chips and provide private label product to other retailers across the country. In

As the Snack Food Association (SFA) celebrates its 75th anniversary this year, Snack World looks back at the associations history as well as the future of the industry. In this issue, we look at how the industry has grown since the start of the 21st century as well as review the early growth of the National Potato Chip Institute, the forebearer of SFA, in the Fabulous 1940s and how it progressed through the Nifty 1950s. Much of the information for the historical articles was sourced from 50 Years: A Foundation for the Future, the 408-page hardcover book SFA published 25 years ago as it celebrated its golden anniversary. In the next issue of Snack World, well review happenings in the industry and association during the 1960s and 1970s, as well as provide more details about the snack food industry in the 21st century.
www.sfa.org May 2012 Snack World 9

75th Anniversary
2010, Shearers acquired Snack Alliance. Kettle Foods, Salem, OR, produced its rst potato chips in 1982. In l988, following a motorcycle trip taken by founder Cameron Healy and his son, the company established a UK branch in a converted shoe factory in Norwich, Five years later, Kettle opened a new factory on the outskirts of the city. In addition to a major presence in the US kettle chip market, Kettle also has a network of independent distributors in the Middle East and European countries. In 2010, Kettle Foods was acquired by Diamond Foods, San Francisco, CA, which also had purchased the Pop Secret microwave popcorn business from General Mills two years earlier. In 1979, Barry Levin, a 21-year-old Californian with a business degree, began his career with Snak King Corp., a startup producer of pork rinds and pellet snacks. The company had two other employees in its 1,200-sq-ft Los Angeles facility. Hired as a machinist, Mr. Levin was expected to help grow the business. A year later, he bought out his partners, and he would eventually craft one of the most impressive stories in the history of the industry as Snak King now employs more than 400 people and markets greater than 650 products. He was honored by his peers by being elected SFA chairman in 2001. When entrepreneur Alan Wareheim of Hanover, PA, dispatched his 29-year-old son, Michael, to manage sales and marketing at a snack company operated by the family in 1970, little did he know that one day the young man would eventually change the face of one of the snack industrys major product categories. Under Mike Wareheims guidance, Snyders of Hanover became a pretzel powerhouse, which would eventually capture 40% of the US pretzel market and sell its twisted products in more than 40 countries. But Mr. Wareheims plans for Snyders of Hanover didnt stop with pretzels. Last year, Snyders of Hanover and Lance, Charlotte, NC, joined forces to create Snyders-Lance, Inc., a national branded powerhouse in pretzels and other snack products. In 2000, Palladium Equity Partners, New York, NY, purchased Wise Foods from Kohlberg, Kravis, Roberts and Co. and set sail on a course to revive the company, which had been acquired by Borden Condensed Milk Co., now known as Borden, Inc., in the mid-1960s. Wise had acquired Moores Quality Snack Foods in 1989, and Palladium eventually sold Moores plant in Bristol, VA, and production of both Wise and Moores snack products consolidated at Wises Berwick, PA, plant. All of the aforementioned companies would be part of one of the most challenging periods in the history of the snack industry and its bellwether association, from 2000 until its 75th anniversary in 2012. The run-up to the associations 75th anniversary produced a number of challenges and opportunities that will continue to play out as SFA heads toward its 100th anniversary, a quarter of a century down the road. sw

Wal-Mart plays a major role in the industry as it continues to grab a larger share of the food business, more than 20% in most regions and greater than 50% in its strongest markets such as the Southeast. They are certainly the most important player in the region for us, said David Jones, executive vice-president of operations for Golden Flake, Birmingham, AL. Its a tremendous challenge to make sure that we do business with them and do business with them in a successful way. Nick Chilton, CEO, Wyandot Foods, Marion, OH, said Wal-Marts growth and dominance, the rising strength of club stores and other niche food chains, and the consolidation of retailers have really tested the snack manufacturers mettle during the last dozen years. He explained the Wal-Mart e ect. Thats the impact that Wal-Mart has had on who makes the decisions in the supply of food products to the American consumers, Mr. Chilton observed. It used to be that marketing people worked with consumers to nd out what they wanted, designed the product, advertised to them and the people bought the product. Today, the power resides with the retailer, and the retail buyer is the one whos calling the shots on what products they want in the store. And it is a completely di erent dynamic. Mark Winkelman, president of Better Made Snack Foods, Detroit, MI, concurred. A lot of consolidation has given retailers more tools and information about what their consumers want, he said. And theyre helping to really drive product o erings, packaging, nutritional content and, now, even sustainability. David Ray, CEO of Mike-sells Potato Chip Co., Dayton, OH, pointed out that a lot of positive things have come out of Wal-Marts growth in the food business. Wal-Mart is a very solid customer for everybody, he said Its our second biggest account at Mike-sells.
10 Snack World May 2012 www.sfa.org

The Wal-Mart Effect

75th Anniversary

Building an Association
In early 1940s, institute focuses on recruiting members.
BY BILL LEVY n a cold day in January 1940, trustees of the National Potato Chip Institute (NPCI) gathered in Pittsburgh, PA, to discuss new strategies for accelerating growth of the 3-year-old association. NPCI leaders agreed it needed a more aggressive recruitment program and would be to hire a full-time secretary to hold organizational meetings across the country. NPCIs $307-a-month income fell far short of the amount needed, yet it hired Ralph Wheeler. His one assignment for the next three months involved expanding the membership roll, which at the end of the 1930s included 12 business and nine associate members. By spring, Mr. Wheeler had logged nearly 15,000 miles, held 15 regional meetings and sent 1,200 personal letters (with the help of a part-time stenographic service). His efforts paid off, and at the its summer meeting, he reported that enrollment had increased to 34 business and 18 associate members. At the January 1941 board meeting, the trustees decided NCPI would once again try to run without a salaried executive. In accepting the presidency for 1941, William Snyder of Snyders Bakery, Hanover, PA, said he did so with the assurance that every member would cooperate to make this year a good one and put the association on a sound footing. As 1941 drew to a close, the association got some unexpected and unwelcome assistance in its recruitment effort. America, which had been supporting its allies in Europe against the onslaught of the German forces during 1939, 1940 and much of 1941, was plunged directly into World War II when the Japanese bombed Pearl Harbor on Dec. 7. By early 1942, NCPI again hired a paid staffer to manage its affairs. Paul Worcester was named NPCI executive director and editor of Potato Chipper, the associations monthly magazine, and he set up shop in Hanover, PA. WARS IMPACT. The rst major war-related problem to hit NPCI members was the General Maximum Price Regulation, which prohibited manufacturers from raising a products price above what it sold for in March 1942. Potato chip manufacturers were caught between the new ruling and rising raw material and labor costs. NPCI went to work to explain the chippers dilemma to of cials in Washington. Later that year, Mr. Worcester also received some news from Uncle Sam: his draft notice. Harvey Noss, who had been serving as an NPCI vice-president, immediately lled Mr. Worcesters position. Mr. Noss moved the associations headquarters back to Cleveland and settled into a leadership role that ultimately would span three decades. As the government restrictions increased, there was great fear that the potato

chip industry might be forced to cease operations for the duration of the war because its product was not categorized as an essential food. A special NPCI committee set out to gather information regarding the food value and merits of potato chips. The extensive research project produced a stunning document that listed 32 Reasons Why Potato Chips Are An Essential Food. NPCIS high pro le during the early war years convinced dozens of companies to join the association. Utz Potato Chip Co., Hanover, PA; H.W. Lay Co., Atlanta, GA; and Seyfert Food, Fort Wayne, IN; added their names to the growing membership list. By the end of the decade, Mr. Noss presided over an association with 200 business members and 11 regional organizations. sw

Harvey Noss Sr. (seated), who led the snack food organization for three decades, poses with others shortly before his death in 1974.
www.sfa.org May 2012 Snack World 11

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75th Anniversary

Technology and TV
I
BY BILL LEVY TX, was looking for a better way to slice potatoes. Impressed with the rms recently acquired pickle slicer from Urschel Laboratories in Valparaiso, IN, he decided to contact owners Joe and Gerald Urschel to see if they could manufacture a similar machine for potatoes. The biggest challenge involved developing a better knife for the new slicer. Back in those days, chippers were paying $1.50 to resharpen each knife, Joe Urschel said. After much experimental effort, we nally developed a throw-away knife that would sell at a small fraction of the cost of having knives sharpened. TELEVISIONS IMPACT. In the late 1940s, commercial television towers began dotting the landscape. Though TVs were relatively expensive, the public began snapping them up. In 1950, Americans owned 1.5 million sets; a year later, that number swelled to 15 million. Snack marketers immediately knew television would be an advertising bonanza. But they soon discovered it was much more. Almost overnight, the visual medium changed Americas entertainment patterns. Harvey Noss, executive director of the National Potato Chip Institute (NPCI), was expanding the advertising effort by recruiting food manufacturers whose products meshed with potato chips. The result was an unprecedented n the 1950s, the industrys growth mirrored the US population explosion taking place. At midcentury, there were 150 million Americans, 18 million more than in 1940. And they had an insatiable appetite for snacks. Although the potato chip remained the best seller by far, pretzel and popcorn were building market share. Also, two new snack foods appeared on store shelves: the corn curl or collet and the popped pork skin. Although both products were created years earlier, it was not until the 1950s that they became part of the snack food salesmans repertoire. As Americas taste for snacks increased, manufacturers turned to their suppliers for new equipment and materials to meet the demand. In the mid-1940s, companies began developing high-capacity immersion cookers capable of processing 650 to 1,000 lb of potato chips per hour. In 1950, the A-M Machinery, Dallas, TX, introduced an under-pan- red cooker that remained in use for the next 15 years. The 1950s also marked the beginning of the trend toward customized and specialized fats and oils. By the end of the decade, potato chip cookers could process more than 1,600 pounds of chips every hour. In 1958, Jack Brown of Morton Potato Chip Co., Dallas,
www.sfa.org

Suppliers begin offering new equipment; NPCI helps promote chips.

The nationally distributed photograph of President Dwight D. Eisenhower diving into a bag of potato chips was a boon for the industry. array of national ads featuring potato chips that were worth millions but cost the institute very little. Despite the onslaught of TV ads, nothing matched the nationally distributed photograph of President Eisenhower ashing his famous smile as he dove into a bag of Granite State potato chips with the NPCI seal on the front. The Eisenhower picture was symbolic of how, by design and accident, potato chips made news in the 1950s. By the end of the decade, the snack food industry was in robust condition. Annual potato chip sales had reached nearly $500 million, and consumption was heading toward 4 lb per person. In 1959, NPCI changed its name to the Potato Chip Institute International (PCII). sw

The number of homes in the US with televisions grew exponentially in the early 1950s, and snack marketers knew television would be an advertising bonanza.

14

Snack World

May 2012

SNACK FOOD ASSOCIATIONS

Potato Chips | Tortilla Chips | Pretzels | Crackers | Cookies Corn Snacks | Snack Nuts and Seeds | Cheese Snacks Pork Rinds | Meat Snacks | Popcorn | Other Salted Snacks | Dips, Salsa and Spreads

REPORT SPONSORED BY

S TA T E O F T H E I N D U S T R Y R E P O R T

Snack sales hold strong despite the sluggish econ economy nomy as industry responds to changing consumer demands. emands. ands

BY BOB GATTY VALUE AND PRICING. Many snack consumers also nd value critical in their decision-making process, according to the survey, Ms. Lyons Wyatt explained, noting that unemployment remains high and large numbers of Americans are still concerned about their economic stability. In fact, some 23% reported having dif culties affording their groceries. So the right pricing is paramount to driving category growth, capturing a share of snack spending, and retaining and building customer loyalty, she said. According to the survey, 70% of consumers actively look for the best value when buying snacks. If you can get the right price lever, you can win the consumer, with both everyday pricing and promotional pricing, she said. They want to nd calories where they can replace a big meal with a mini meal throughout the day, but they are looking for nutrition too. While many consumers are paying more attention to eating healthier, many still want indulgent snacks as a reward for a tough day, Ms. Lyons Wyatt said. But they want to do it smartly, she explained. They are trying to get those indulgences at home rather than going elsewhere because they need to watch what they spend. Although SymphonyIRI Groups data indicate that snack consumers are generally brand loyal, that loyalty is weakening. For example, 19.6% of salty snack consumers said they were brand loyal in 2011, down 1.6% since 2008. While 50.5% of snack nut and seed consumers said they were loyal to speci c brands, that number dipped 1.2% during the same period.

espite the dif cult economy of 2011, major components of the snack food industry thrived and are in a position for even stronger performance this year, if snack manufacturers nd the right appeal to consumers who are still cautious about the nations economy and their own economic future. Theres a lot of opportunity, said Sally Lyons Wyatt, executive, client strategy and insights, SymphonyIRI Group, during the State of the Snack Food Industry report presented at SNAXPO 2012 in March. But snack marketers need to proceed with caution in this fragile economic environment. According to data compiled from several of the Chicago, ILbased market research rms proprietary sources, including store scan information and SymphonyIRI Groups 2012 Consumer Snacking Study, snack dollar sales increased approximately 3.8% in 2011 while volume dipped 1.3%. Although snack prices generally increased as processors had to deal with energy and other costs that also went up, consumers turned to snacks even more frequently than in the past. According to results from its most recent snack survey, 43% of respondents reported eating three to four snacks each day, compared with 24% in 2009. One reason for that, Ms. Lyons Wyatt explained, is that increased numbers of consumers are eating smaller meals throughout the day to satisfy hunger and boost energy. This, she said, is especially true among older Americans, a market that offers a signi cant opportunity for snack makers. Go after the aging population and communicate what products you have in your portfolio that might appeal to those day parts, she advised.

BROUGHT TO YOU BY FUCHS NORTH AMERICA, HEAT AND CONTROL, J.R. SHORT, MINSA, PRINTPACK, INC., AND TNA NORTH AMERICA 16 Snack World May 2012 www.sfa.org

Pricing, no doubt, is the culprit 36% of consumers said price heavily in uences their brand decisions. Although 51% of consumers consider brand of choice an important snack attribute, some 70% said they actively look for the best value when buying snacks. In fact, while nearly 75% want their favorite brand, 40% said they look for that brand on sale. PERFORMANCE FACTORS. During 2011, yogurt showed the largest percentage dollar sales increase at 7.7%, but volume sales dropped 1.2%, a decrease attributable to the maturity of the Greek yogurt craze that sent yogurt sales skyrocketing in 2010. Snack and granola bar dollar sales jumped 5.8%, but saw volume slip 0.3%. Other categories showed similar results. Salty snacks were up in dollar sales by 3.1%, but the categorys volume sales increased a mere 0.2%. In addition to in ationary pressures, Ms. Lyons Wyatt said, promotional activity such as displays, price discounts and promotional allowances declined during the past year, resulting in some of the higher pricing that generated increased dollar sales. Getting your trade dollars right is important. Where do you put them? It is critical to get this right, Ms. Lyons Wyatt said. Be sure you are spending your money on the right promotional mix. Ensure that it is well-spent for the best return. Private label continues to be strong in the snack arena, with 57% of consumers saying store brands are a viable alternative to brand name products. Private labels share of snack sales remained steady at 12.2% in 2011. Volume share dipped from 16.9% to 16.8%. There was also a channel shift during the past year, with grocery stores and Wal-Mart losing snack volume to drug and convenience stores as shoppers shifted from stocking up to buying snacks on the go. In fact, convenience store gains cut across a majority of snack categories, including nearly all of the 10 largest. While share increases were less than 1% (0.9% for chocolate candy and 0.8% for salty snacks), corresponding declines in shares were present in the grocery channel and Wal-Mart.

According to the SymphonyIRI Group data, 54% of consumers are looking for snacks that can be eaten on the go. Consistent with the data that show consumers snacking more frequently is the increase in the percentage of consumers who snack almost daily by time of day. Since 2009, those snacking during the late evening have increased from 16% to 21%, evening from 22% to 34%, afternoon from 26% to 39%, morning from 11% to 21%, and early morning from 4% to 7%. The data also show that snacks play an important role in hunger satisfaction, with 34% of consumers saying they snack to satisfy immediate hunger. According to the survey, 9% do so as a mini meal, while 8% said they use snacks as an opportunity to get needed nutrition. Snacks promoting protein on the front of their packages increased 28% in volume sales from 2010 to 2011. Snack options seen as healthier by consumers grew dollar and volume sales 3.9% and 0.5%, respectively, while indulgent snack dollar sales jumped 4%, with a 0.1% volume decline. Product innovation boosts sales in the healthier-for-you arena, as well as in other snack categories, noted Ms. Lyons Wyatt, who cited Lays Lightly Salted chips with 50% less sodium, Quakers True Delights granola bars with 11 g whole grains indicated on the package, Special K Chips with 110 Cal per serving listed and Trident Vitality labeled as a source for vitamin C. Innovation is also successfully providing hunger satisfaction across other snack categories, she added, pointing to Planters line of NUT-rition products, Snickers Peanut Butter Squared and Yo-Toddler yogurt products. HEALTHY EATING. Forty-six percent of consumers view snacks as an important part of a healthy eating plan throughout the day, and 60% seek snacks that offer bene ts beyond basic nutrition, according to SymphonyIRI Group. Although overall healthier products outperformed indulgent, such as nutritional snacks and trail mix up 11.1% and hummus up 10.5%, many indulgent categories also showed strong growth. Chocolate-covered salted snack sales increased 8.6%; dried meat snacks jumped 6%; and

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refrigerated appetizers and snack rolls rose 5.9%. Overall, 36% of healthier categories Figures in $bil 2005 2010 2015 (projected) saw volume growth, while 52% of Potato Chips 6.5 9.1 11.2 indulgent categories did so. Tortilla Chips 5.0 5.9 7.0 Nearly 90% of consumers are trying Crackers 5.1 5.9 6.5 to eat healthier, and many view snacks Cookies 5.6 5.9 6.0 Snack Bars/Granola Bars 2.1 2.7 3.2 as part of their overall dietary plan, Snack Nuts/Seeds/Corn Nuts 1.6 2.0 2.2 she said, adding that consumers want Pretzels 1.3 1.7 2.1 options that will give them energy and Fruit Snacks 1.3 1.4 1.4 Cheese Snacks 0.4 0.4 0.5 provide more better-for-you attributes Dried Meat Snacks 0.3 0.3 0.3 such as antioxidants and whole grains. Rice/Popcorn Cakes 0.3 0.3 0.3 They also want to eliminate less desirable RTE Popcorn/Caramel Corn 0.2 0.3 0.3 Pork Rinds 0.1 0.1 0.2 attributes, including calories and trans All Others* 4.4 5.4 6.3 fat. Not surprisingly, 66% of consumers Total 34.2 41.4 47.5 * Includes snack cakes, corn snacks, other salted snacks, other non-salty snacks and other miscellaneous snacks. want retailers to clearly identify healthier products in the store. BMC INFORMATION SERVICES A DIVISION OF BEVERAGE MARKETING CORP. Ms. Lyons Wyatt said a sizeable segment of the market views snacks as 2011. SymphonyIRI Groups research also showed a strong an opportunity to splurge, noting that 55% of consumers trend of consumers looking for foods that are planet-friendly, are more likely to eat what tastes good rather than what is with sustainability in uencing snack decisions. Consumers healthier, and 60% often snack for enjoyment, not to satisfy want to get back to Mother Nature and protecting the hunger. Once again, innovation is helping to satisfy these environment, Ms. Lyons Wyatt explained. cravings, she noted, pointing to Pop-Tarts Mini Crisps, Meanwhile, she cautioned, consumers are perusing a wide Hersheys Milk Chocolate Drops, Keebler Coconut Dreams range of traditional and new media to get pricing information and Oreo Ice Cream Rolls. and are leveraging a mixture of in-store and out-of-store Its also important to remember the delicate balance in uences such as shopper loyalty discounts, manufacturer between consumers overall quest for healthier living and retailer websites, newspaper circulars, and in-store signs/ and the need for enjoyment and indulgences that dont displays. With this mix in mind, snack marketers need to completely derail dietary efforts, Ms. Lyons Wyatt said. ensure they are communicating a consistent and balanced Due to economic pressures, consumers are more frequently price-value message. nding indulgence in the home, and snacks are a fun and Yesterdays strategies are being met with diminishing inexpensive way to indulge. returns, she said. A new day is dawning for Natural and organic foods continue to see solid growth, too, snack marketers. holding steady at 10.7% in snack sale increases from 2010 to

Projected Growth in US Snack Market

Thank You from Snack World


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Snack World magazine would like to thank the snack manufacturers who provided us with exclusive information for our annual State of the Industry Report. Additionally, wed like to thank our sponsors Fuchs North America, Heat and Control, J.R. Short, Minsa, Printpack, Inc., and TNA North America for their generous support. Additionally, Snack World would like to thank the SymphonyIRI Group (www.symphonyiri.com) for its insights and trend information. We also received great support from Mintel (www.mintel.com) as well as Beverage Marketing (www.beveragemarketing.com) on new product trends and category analysis. Please contact these companies if you would like more information on the salted snack industry, or visit www.sfa.org.

POTATO CHIPS

A Cut Above the Rest


Kettle cooked, baked, lightly salted, reduced fat and avor loaded represent just a few of the new potato chip varieties to hit store shelves during the past year. Such new product activity continues to help keep potato chips as Americas most popular salty snack, according to SymphonyIRI Group, which collects scan data of products sold at supermarkets, drug stores and mass merchandisers, excluding Wal-Mart. In the data it provided to the Snack Food Association, SymphonyIRI reported salty snacks amassed sales of more than $9.7 billion for the 52-week period ending March 18, more than twice the dollar sales of cookies, and the overall markets sales increased 3.4% compared with the previous year. The potato chip category, however, which accounts for nearly 38% of salty snacks dollar sales, experienced a more modest increase of 2% during the same period. With the Top 4 potato chip brands, Frito-Lay North America, Plano, TX, dominates sales in the category. Lays, Lays Natural, Ruf es and Wavy Lays pull in 47.7% of the segments dollar sales, according to SymphonyIRI. Add in the companys other top brands, and it easily surpasses a 50% share of potato chip sales. As in other salted snack categories, the companys natural potato chips varieties are experiencing the fastest growth: Lays Natural and Ruf es Natural sales skyrocketed by 228.9% and 314.5%, respectively. However, some of those sales increases appear to be coming at the expense of its other brands, including its baked potato chips, as Baked Lays and Baked Ruf es sales dipped 19.7% and 13.3%, respectively. To maintain its dominance, Frito-Lay launched such products as Lays Classic BLT- avored potato chip in April. Last year, Ruf es Tapato Limn, which combine a hint of lime juice with the ery hot sauce for a tangy twist, hit store shelves for the rst time. At Frito-Lay, our avor experts nd inspiration in all corners of the culinary universe, said Ram Krishnan, vice-president of marketing, Frito-Lay. Our new Classic BLT- avored Lays potato chips prove that inspiration is sometimes closer than you think. Pairing a delicious sandwich with our tasty Lays potato chips is an American tradition that helped inspire us to create this new avor a simple indulgence that makes more sense together than apart just like the BLT. During an earnings conference call on April 26, Indra Nooyi, chairman and CEO of PepsiCo, Inc., Purchase NY, observed that its snacks division increased net revenues 13%, during the rst quarter 2012. PepsiCo is the parent company of Frito-Lay. Ms. Nooyi also noted that the company gained 2 points of value share in the stacked potato chips category, in which it offers its Lays Stax product. And, we expect to see continued momentum as we launch new Hispanic inspired avors in Q3, she added. Other manufacturers also have been creative with their chips, including Shearers Foods, Brewster, OH, whose Rippled

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Top Potato Chip Brands


Brand / Vendor Dollar Sales ($mil) Dollar Sales % Change 2.0 (31.9) 228.9 (7.8) (5.1) 11.6 7.5 0.1 12.0 9.6 (19.7) (41.3) (2.4) (5.1) (13.3) 72.0 314.5 18.6 0.0 3.8 (10.1) 10.2 16.7 (20.5) 16.9 (10.9) 3.3 (6.3) 1.9 250.9 123.7 7.4 (7.1) (22.4) 5.1 (13.7) 62.8 (1.9) (27.3) 17.4 17.4 7.6 (31.2) (8.1) (22.8) 0.7 6.0 5.0 1.8 7.7 (1.8) (15.1) (26.0) 117.3 Unit Sales (mil) 1,619.4 274.2 206.6 122.8 108.3 156.8 128.7 76.8 44.8 38.3 26.9 29.4 30.6 27.7 14.1 18.8 13.2 9.4 19.9 8.4 15.3 12.3 19.0 8.9 20.3 6.3 7.2 5.4 7.1 8.6 7.2 5.9 5.8 3.2 4.2 4.8 4.1 4.1 2.8 6.6 5.3 5.1 3.4 3.3 2.1 3.5 6.8 2.7 5.7 2.4 1.7 2.1 2.0 1.5 Unit Sales Volume Volume Sales % Change Sales % Change (mil lb) (0.7) (34.4) 240.9 (7.6) (10.3) 6.1 7.7 (2.7) 15.9 8.2 (21.9) (39.6) (1.2) (6.5) (16.0) 72.5 408.3 18.9 (2.5) 2.7 (13.3) 4.1 20.0 (27.2) 7.0 (11.5) (3.1) (12.6) (1.7) 167.2 94.4 6.1 (12.4) (22.1) 8.6 (22.0) 58.4 (8.2) (27.0) 17.0 16.6 8.4 (24.4) (15.2) (18.6) 0.3 4.2 1.9 0.8 10.5 (1.4) (23.2) (30.0) 76.0 800.7 137.7 115.5 59.3 70.5 92.3 51.1 32.3 21.7 19.8 13.2 13.9 14.1 12.3 7.9 3.1 7.3 4.8 5.6 4.6 4.3 6.2 6.6 4.4 5.0 2.3 3.8 3.8 3.9 2.6 3.3 3.5 2.2 1.3 2.4 2.7 2.0 2.4 1.1 2.6 2.0 1.8 1.5 1.8 0.7 1.4 2.4 1.5 1.0 1.8 0.6 1.1 1.2 1.1 3.2 (37.7) 197.9 (11.9) (14.0) 7.5 7.7 (3.5) 16.1 5.7 (22.1) (43.1) (5.4) (12.8) (16.0) 72.2 459.6 18.8 (7.0) (0.8) (16.4) 10.6 20.0 (20.1) 9.0 (11.5) (1.4) (13.5) (3.4) 322.7 102.4 4.7 (12.4) (22.1) 4.8 (17.2) 61.3 (15.6) (27.0) 17.0 18.4 8.8 (38.6) (12.6) (21.9) (0.4) 8.0 3.2 5.3 8.3 (1.5) (23.7) (34.3) 174.9

Potato Chips - total 3,674.6 Lay's/Frito-Lay North America, Inc. 609.1 Lay's Natural/Frito-Lay North America, Inc. 529.7 Rufes/Frito-Lay North America, Inc. 321.3 Wavy Lay's/Frito-Lay North America, Inc. 292.6 Private label 289.2 Pringles Super Stack/Procter & Gamble 208.8 Utz/Utz Quality Foods, Inc. 137.6 Kettle Brand/Diamond Foods, Inc. 120.2 Cape Cod/Snyder's-Lance, Inc. 112.6 Baked Lay's/Frito-Lay North America, Inc. 86.6 Lay's Kettle Cooked/Frito-Lay North America, Inc. 76.2 Herr's/Herr Foods, Inc. 61.1 Wise/Wise Foods, Inc. 53.7 Baked Rufes/Frito-Lay North America, Inc. 50.9 Popchips/Popchips 43.1 Rufes Naturals/Frito-Lay North America, Inc. 40.9 Pringles Snack Stacks/Procter & Gamble 38.2 Golden Flake/Golden Flake Snack Foods 29.0 Rufes Reduced Fat/Frito-Lay North America, Inc. 27.2 Munchos/Frito-Lay North America, Inc. 26.8 Jay's/Snyder's-Lance, Inc. 23.5 Lay's Stax/Frito-Lay North America, Inc. 23.5 Krunchers/Snyder's-Lance, Inc. 22.4 Pringles/Procter & Gamble 21.0 Pringles Light/Procter & Gamble 17.9 Snyder of Berlin/Pinnacle Foods LLC 17.2 Old Dutch/Old Dutch Foods, Inc. 16.6 Better Made Special/Better Made Snack Foods, Inc. 16.3 Rufes Sabritas/Frito-Lay North America, Inc. 16.1 Wise Ridges/Wise Foods, Inc. 14.6 Martin's/Martin's Potato Chips Inc. 14.5 Lay's Singles/Frito-Lay North America, Inc. 14.0 Rufes Light/Frito-Lay North America, Inc. 12.6 Hawaiian/Pinnacle Foods Group 12.4 Mike-sell's/Mike-sell's Potato Chip Co. 12.2 Utz Kettle/Utz Quality Foods, Inc. 11.1 Shearer's/Shearer's Foods, Inc. 11.0 Lay's Light/Frito-Lay North America, Inc. 10.8 Pringles Extreme Super Stack/Procter & Gamble 10.7 Boulder Canyon/Inventure Foods, Inc. 10.6 Zapp's/Utz Quality Foods, Inc. 9.8 Tim's Cascade Style/Pinnacle Foods Group 8.9 Middleswarth/Middleswarth Potato Chip Co. 8.8 Pringles 100 Calorie Pack/Procter & Gamble 7.4 Grandma Utz/Utz Quality Foods, Inc. 7.2 Uncle Ray's/Jenkins Foods 7.0 Grippo's/Grippo's 6.9 "Dirty"/Utz Quality Foods 6.7 Conn's/Conn's Potato Chips 6.1 Terra/The Hain Celestial Group 5.8 Old Dutch Crunch/Old Dutch Foods, Inc. 5.7 Old Dutch Ripples/Old Dutch Foods, Inc. 5.6 Tim's/Pinnacle Foods Group 5.2
SOURCE: INFOSCAN REVIEWS TOTAL US SUPERMARKETS, DRUGSTORES AND MASS MERCHANDISERS EXCLUDING WAL MART 52 WEEKS ENDING MARCH 18, 2012

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May 2012

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S TA T E O F T H E I N D U S T R Y R E P O R T

Home Run Hot Dog potato chips were featured on the Food Networks Unwrapped during an episode on All American Eats last year. The chips are loaded with the classic hot dog avor smothered with mustard and relish. Earlier this year, Herr Foods, Inc., Nottingham, PA, loaded its kettle-cooked chips with popular baked potato toppings like cheddar cheese, sour cream, bacon and green onions. The new Loaded Baked Potato Kettle Chips are the perfect side for any main course, the company noted. Then, to help folks celebrate National Chip and Dip Day on March 23, the company launched Lattice Cut Kettle chips, which have a crisscrossed cut that lets dip seep deep into the chips crisp crevices. Made from thick-sliced choice potatoes slow-cooked in small batches and then sprinkled with sea salt, Herrs Lattice Cut Kettle Chips are a superior dipping chip, according to the company. Old Dutch Foods, Roseville, MN, spiced things up with Salt and Cracked Black Pepper variety under its Dutch Crunch line. The snack comes in 2- and 8-oz bags. Under its Dutch Gourmet brand, the company now offers Thick-Cut Habanero with Lime potato chips. Utz Quality Foods, Hanover, PA, markets six different lines of potato chips under the Utz brand: regular, Kettle Classics, Grandma Utz, Mystic, baked and its natural products. In last years report, Utz Natural potato chips experienced a 9% sales increase; however, this year, the natural chips sales dipped nearly 12%. And while its regular potato chip

sales remained stable, dollar sales of Utz Kettle potato chips climbed 62.8%. One of Utzs newer products is a kettle chip that also has healthier attributes. Reduced Fat Smokin Sweet Kettle Classic Potato Chips feature the popular Smokin Sweet seasoning but with 40% less fat than regular potato chips, according to the companys website. Last year, Utz acquired Zappe Endeavors, adding the Zapps, Dirty and California potato chip brands to its portfolio of products. Although potato chips are often viewed as an indulgent snack, Hungry Girl, which is a free daily email subscription service about healthy eating, placed several reduced-fat potato chips on its 2012 Of cial Shopping List. Those included on the list are Popchips, Kettle Brand Baked, Baked! Lays, Pringles Light, Cape Cod 40% Less Fat and Michael Seasons Baked single-serving snacks. Better Made Snack Foods, Detroit, MI, introduced Lightly Salted Original Potato Chips with 50% less sodium in the past year. We started research and development for this item about one year ago and created what we think is a great tasting chip, said Mark Costello, the companys vice-president of sales and marketing, at the time of the chips launch late last summer. Inventure Foods, Phoenix, AZ, which offers potato chips under the Boulder Canyon Natural Foods brand, hopes to set its products apart from others by offering them in fully compostable bags. Shane Whitaker

Nacho Average Chips


Tortilla chips are in a league of their own. Today chips are being spiced up and mixed for greater avors and better health bene ts. Through the use of alternative grains and special ingredients, salted snack manufacturers continue to broaden the appeal of tortilla chips. Axium Foods, South Beloit, IL, launched its Mystic Harvest brand earlier this year with two tortilla chips products that leverage the ancient health bene ts of purple corn, according to the company. Mystic Harvests Authentic Tortilla Chips with Sea Salt and Multi-Grain Tortilla Chips
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TORILLA CHIPS

both offer 25% more antioxidants than blueberries per serving, according to Cindy Kuester, the companys vicepresident of sales and marketing. The products non-GM purple corn is bred for the highest level of antioxidants, she added, and Axium had the tortilla chips tested to determine their Oxygen Radical Absorbance Capacity (ORAC) score, which measures the antioxidant value of foods. Mystic Harvests chips scored 6,000 compared with 4,669 for blueberries, according to the company. Anthocyanins, the naturally occurring pigments responsible

for the corns purple color, are the same powerful antioxidants found in blueberries and red wine. Mystic Harvest tortilla chips help to satiate consumers faster because they also contain 63% more ber and 20% more protein than blue corn counterparts, according to Ms. Kuester. The tortilla chips also are made with all-natural ingredients. Fortuitously, natural appears to be a growth area within this snacking segment. Food Should Taste Good, Needham Heights, MA, markets one of the fastest-growing tortilla chip brands, and all of its products are labeled all-natural. With sales growth of nearly 23% this past year, Food Should Taste Good offers interesting avors in its tortilla chip lines including Chocolate, Jalapeo, Lime and Olive. With sales increasing more than 37%, On the Border tortilla chips from Truco Enterprises, Dallas, TX, also performed extremely well this past year. The company often calls out its

products health bene ts 0 g trans fat, no cholesterol, low sodium and gluten free on the front of its packaging. On the Border tortilla chips come in many varieties and avors such as Premium Rounds, Southwest Thins, Blue Corn, Twist of Lime and Guacamole Blast. Last summer, Truco launched On the Border Naturals Collection with ve varieties: Multi Grain, Red Corn with Garlic, Blue Corn, Fiesta Lime and Organic Corn. Fundamentally, snacks are snacks, and they must satisfy cravings for between-meal tasty treats,

Top Tortilla Chip Brands


Brand / Vendor Dollar Sales ($mil) Dollar Sales % Change 3.8 10.3 126.3 (12.5) (53.6) (2.4) 4.2 7.8 37.7 22.9 (14.9) 8.4 (2.0) 3.5 (2.3) 40.7 (7.7) (13.7) (2.0) 5.2 (13.2) NA 106.7 (17.2) (9.3) 50.2 373.1 (12.0) Unit Sales (mil) 923.4 336.3 132.2 50.3 50.5 74.7 85.9 32.0 13.2 10.8 7.4 14.1 7.2 4.2 3.7 3.0 4.4 5.1 4.8 3.0 3.1 5.4 3.6 3.3 2.8 3.4 2.1 2.3 Unit Sales Volume Volume Sales % Change Sales % Change (mil lb) 1.4 3.2 125.8 (11.8) (54.6) (4.6) 2.4 6.1 38.7 22.5 (17.7) 0.9 (7.4) 0.1 (1.4) 41.4 (13.7) (11.7) (5.3) 1.3 (15.8) NA 179.8 (24.2) (9.4) 33.5 348.5 (17.4) 647.6 197.7 100.2 36.3 39.1 55.6 64.4 33.3 9.8 3.9 4.1 10.6 7.2 2.9 3.0 2.7 3.8 3.6 3.5 2.2 2.2 2.3 4.3 2.6 2.8 3.3 1.1 1.9 (0.8) 3.7 136.6 (8.1) (56.1) (12.7) 1.8 (4.8) 25.6 19.1 (17.7) (13.1) (7.4) 0.5 (1.3) 38.0 (13.7) (23.1) (7.7) 1.3 (15.8) NA 65.9 (21.9) (9.3) 33.5 349.5 (17.4)

Tortilla/Tostada Chips - total 2,377.2 Doritos/Frito-Lay North America, Inc. 798.2 Tostitos Natural/Frito-Lay North America, Inc. 421.8 Tostitos Scoops/Frito-Lay North America, Inc. 173.0 Tostitos/Frito-Lay North America, Inc. 169.8 Santitas/Frito-Lay North America, Inc. 151.0 Private label 149.9 Mission/Mission Foods Corp. 88.9 On the Border/Truco Enterprises, LP 37.4 Food Should Taste Good/Food Should Taste Good, Inc. 29.6 Baked Tostitos Scoops/Frito-Lay North America, Inc. 26.7 Calidad/Authentic Specialty Foods, Inc. 23.4 Snyder's of Hanover/Snyder's-Lance, Inc. 19.8 Garden of Eatin' Blue Chips/ The Hain Celestial Group 14.5 Garden of Eatin'/The Hain Celestial Group 13.6 Xochitl/Xochitl, Inc. 13.4 Old Dutch/Old Dutch Foods, Inc. 13.0 Grande/Snyder's-Lance, Inc. 12.8 Utz/Utz Quality Foods, Inc. 12.1 Doritos Go Snack/Frito-Lay North America, Inc. 11.6 Baked Doritos/Frito-Lay North America, Inc. 11.4 Doritos Sabritas/Frito-Lay North America, Inc. 10.7 Calidad/Authentic Specialty Foods, Inc. 8.6 Herr's/Herr Foods, Inc. 8.5 El Milagro/El Milagro, Inc. 8.5 Juanita's/Juanita's Fine Foods 7.7 Kettle Tias/Kettle Foods, Inc. 6.2 Padrinos/Snyder's-Lance, Inc. 5.6
SOURCE: INFOSCAN REVIEWS TOTAL US SUPERMARKETS, DRUGSTORES AND MASS MERCHANDISERS EXCLUDING WAL MART 52 WEEKS ENDING MARCH 18, 2012

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but if they can simultaneously make consumers feel good about what they or their children eat, that gives brands an added edge, observed John Rodwan, editorial director, BMC Information Services, a division of Beverage Marketing Corp. Hence the many 100-Cal packs or products without high-fructose corn syrup or much salt, Mr. Rodwan added. Not every snack needs to be exclusively healthy, but an air of virtuousness doesnt hurt. Many snack products are seasonal in nature. Better Made Snack Foods, Detroit, MI, introduced tortilla strips and two salsa dips in 2011 just in time for Cinco de Mayo. Weve been considering adding a new tortilla product and salsas for a while and these two go together quite well, said Mike Schena, COO of Better Made Snack Foods. From what weve seen so far, people are really enjoying them. As owner of the Top 5 tortilla chip brands, Frito-Lay North America, Plano, TX, dominates this category even more so than in potato chips. These ve brands Doritos, Tostitos Natural, Tostitos Scoops, Tostitos and Santitas account for more than 72% of tortilla chips dollar sales in supermarkets, drug stores and mass merchandisers, excluding Wal-Mart, according to SymphonyIRI Group scan sales data. Doritos remains the king of the tortilla chip category, raking in nearly $800 million annually, according to SymponyIRI, and its sales jumped sharply this past year, increasing 10.3%, after ticking up only 1.6% the previous year. Frito-Lay launched several new Doritos products this past year, including Doritos Tapato, which adds the distinct hot sauce- avor to its top-selling Nacho Cheese- avored tortilla chips. We understood through insights we gathered through social media that there was a trend happening with Tapato, said Holly Deal Ramage, R&D scientist, Frito-Lay North America. As we developed the idea, we wanted to de ne the Tapato consumer: Where are they coming from and what are their purchasing behaviors? So we received good insight about a consumer habit and worked against it to capture the habit and create a fully developed product, she continued. We partnered with the company that makes the hot sauce and were able to launch

three flavors that were Tapato-inspired. In this case, we were able to find the right partner and give the product authenticity. This spring, the company rolled out Doritos Jacked, which are 40% larger in size and thickness. Available in Enchilada Supreme and Smoky Chipotle BBQ varieties, Doritos Jacked tortilla chips deliver intense avors upfront followed by a twist of spice or tanginess, according to Frito-Lay. Even more recently, the company introduced its Doritos Dinamita tortilla chips that are rolled into a taquito-like shape. With avors such as Chile Limon and Nacho Picoso, Doritos Dinamita pack a zesty punch and offer avors often found in Latin America cuisine. John Compton, CEO of PepsiCo, parent company of FritoLay, called the Dinamitas edible sticks of dynamite, at the Consumer Analyst Group of New York Conference in February. Frito-Lay also is bene ting from the natural food craze. Tostitos Natural tortilla chips sales increased more than 126% this past year to become the second-largest brand after Doritos, but it may have been partly at the expense of its more traditional chips, as Tostitos and Baked Tostitos chips sales fell more than 53% and nearly 15%, respectively. Shearers Foods, Inc., Brewster, OH, offers all-natural Tangos brand tortilla chips, which offer some healthier attributes such as being lower in sodium, and depending on the avor, the brands tortilla chips include items such as axseed, blue corn and re-roasted vegetables. Old Dutch Foods, Roseville, MN, recently came out with All Natural Blue Corn Restaurante Style tortilla chips, as well as Old Dutch Restaurante Style Salsa Bowls, which are bowlshaped bite-size tortilla chips for dipping. The company also rolled out Sweet Chili and Sea Salt and Lime varieties of its Dutch Gourmet Whole Grain tortilla chips. Herr Foods, Inc., Nottingham, PA, also launched a tortilla chip product promoting the better-for-you attributes. Herrs Sesame Rice tortillas chips feature high- ber brown rice and sesame seeds that are naturally rich in copper, calcium, magnesium and iron. Shane Whitaker

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PRETZELS

Hard Year and Soft Sales


It hasnt been the best of years for pretzels, with dollar sales increasing a mere 0.6% during the past year and volume down 4.7%, according to SymphonyIRI Group. But softened sales gures arent preventing pretzel producers from being optimistic and preparing for the future and developing new variations. Market leader Snyders-Lance, Inc., Charlotte, NC, sold $267.3 million under its Snyders of Hanover Pretzels brand during the past year ending March 18, according to data developed for the Snack Food Association by SymphonyIRI Group. This amounted to a 1.6% increase over the previous year. However, the brands unit sales declined 7.1%, and volume slipped 3.9%. The companys 100-Cal-pack pretzels generated another $11.4 million in sales, although unit sales were off 5.9% and volume down more than 13%, during the same period. Nevertheless, on Feb. 21, Snyders-Lance announced construction of a new research and development center in

Hanover, PA, located near one of the companys largest baking facilities. There, experts will research, develop and enhance new and existing products across the companys entire line of snack foods, including Snyders of Hanover Pretzels, Lance Sandwich Crackers and Cape Cod Potato Chips. The new facility will carry a LEED Silver Certi cation, meeting the requirements of the Leadership in Energy and Environmental Design rating system for the construction and operation of high-performance green buildings. All of the centers electricity will be generated by the companys 26-acre solar panel farm located nearby. The project is expected to be completed later this year. The companys new pretzel products include GlutenFree Pretzel Sticks, York Peppermint Chocolate Pretzel Sandwiches, Bacon Cheddar Pretzel Pieces and Gluten-Free Mini Pretzels.

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Top Pretzel Brands


Brand / Vendor Dollar Sales ($mil) Dollar Sales % Change 0.6 1.6 7.3 NA (59.7) 5.3 13.2 (5.9) (5.9) (3.8) 20.2 3.1 (5.6) (20.6) 1.4 (0.9) 13.9 8.5 6.4 Unit Sales (mil) 284.9 94.3 63.0 32.6 23.0 14.4 12.5 5.1 2.9 3.8 1.6 3.0 1.5 1.6 1.8 1.2 2.4 0.8 0.9 Unit Sales Volume Volume Sales % Change Sales % Change (mil lb) (5.7) (7.1) 1.7 NA (64.6) (1.1) 7.8 (13.4) (10.9) (6.6) 22.0 (4.6) (11.8) (28.7) (2.8) (12.2) 14.1 7.4 6.7 227.8 74.7 55.2 28.4 16.9 14.2 5.4 4.8 1.7 2.3 1.1 2.9 1.2 1.5 0.6 1.2 0.5 0.6 0.5 (4.7) (3.9) 3.4 NA (68.3) (0.7) 8.9 (13.2) (7.8) (8.6) 17.5 (5.6) (9.5) (31.4) (2.8) (12.1) 14.1 7.4 6.8

Pretzels - total 699.6 Snyder's of Hanover/Snyder's-Lance, Inc. 267.3 Private label 106.3 Rold Gold Natural/Frito-Lay North America, Inc. 85.5 Rold Gold/Frito-Lay North America, Inc. 63.5 Utz/Utz Quality Foods, Inc. 40.6 Combos/Mars, Inc. 21.7 Herr's/Herr Foods, Inc. 14.9 Snyder's of Hanover 100 Cal Pack/Snyder's-Lance, Inc. 11.4 Bachman/The Bachman Co. 11.0 Glutino/Glutino Importations Deroma, Inc. 9.1 Old Dutch/Old Dutch Foods, Inc. 7.0 Utz Select/Utz Quality Foods, Inc. 5.3 Anderson/Anderson Bakery Co. 4.9 Kraft Handi Snacks Mister Salty/Kraft Foods, Inc. 4.2 Wege of Hanover/Wege Pretzel Co. 3.3 Sargento J.R. Dippers/Sargento Foods, Inc. 2.5 Unique Splits/Unique Pretzel Bakery, Inc. 2.3 Bachman Thin N Right/The Bachman Co. 2.3
SOURCE: INFOSCAN REVIEWS TOTAL US SUPERMARKETS, DRUGSTORES AND MASS MERCHANDISERS EXCLUDING WAL MART 52 WEEKS ENDING MARCH 18, 2012

Private label pretzels generated the second most sales, according to SymphonyIRI data, accounting for $106.3 million in sales, an increase of 7.3% compared with the previous year. Unit sales also increased 1.7% and total volume jumped 3.4%, numbers that no doubt re ect consumers concerns about the down economy and their own economic situations. Meanwhile, the Rold Gold pretzels from Frito-Lay North America, Plano TX generated $85.5 million in sales for its all-natural pretzel products, and $63.5 million for its Rold Gold pretzel line. While the product has stayed true to its original form over time, Frito-Lay decided that the time was right for innovation with pretzels, as well as its other products. So todays lineup includes Butter Checkers Pretzels, Cheddar Tiny Twists Pretzels, Cheesy Garlic Pretzel Nuggets, Cinnamon Raisin Braided Twists Pretzels and Everything Bagel Pretzel Rings. According to Eve Lawson, R&D principal scientist who has worked at Frito-Lay for 21 years, product development has dramatically evolved over those years. When I started, the emphasis was on simpler snack foods, she said. Now, all the brands are developing more complex avor pro les, considering consumer needs and wider usage occasions. We are designing products and packages incorporating consumer feedback and building more robust

propositions. We make real food, and our capabilities as product developers and designers continue to evolve. Consumers are looking for great-tasting, new snacks that have innovative avors in addition to health bene ts including cleaner nutritional panels, said Laura Unger, marketing coordinator at The Bachman Co. We have also seen the gluten-free segment continue to grow. Over the past ve years, most of the packaging at the company has been redesigned with the goal of informing consumers of health bene ts that exist in its products, including key phrases such as All Natural, Whole Grains and Gluten-Free. We have created a very cohesive look to our snack lines that catch the attention of the consumer in the ever-growing snack aisle, Ms. Unger said, adding that the key to growth in snack food categories is innovation. It is important to keep watching trends in the food world and developing new products that ful ll consumer demands. The category is seeing some competition from the Kellogg Company, Battle Creek, MI. Speci cally, its snack division is rolling out Keebler Right Bites White Fudge Dipped pretzels in 100-Cal packs. While the overall trend in the category was modest increases in dollar sales but declines in units and volume, some of the smaller companies discovered niches that created larger than average increases across the board. Bob Gatty

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S TA T E O F T H E I N D U S T R Y R E P O R T

CRACKERS

Its What its Cracked Up to Be


With many Americans struggling with their diets, many varieties of crackers are appealing to their desire to reduce calories, and as a result, the category generated signi cant sales and unit increases during the past year. Overall, crackers produced $4.3 billion in sales for the 52 weeks that ended March 18, as reported by SymphonyIRI Group for all retail outlets in the US, except Wal-Mart. This amounts to an increase of 5.2%. Units rose 2.3%, and volume edged up 0.8%. The All Other Crackers category produced $3.2 billion in sales, for a healthy boost of 5.7% on 3% and 1.4% increases in units and volume respectively. Leading the cracker parade in the All Other category was the Sunshine Cheez-It brand from the Kellogg Company, Battle Creek, MI, with $359.7 million in sales, up 4.2%. Units were up 1.1% and volume 2.6%. Close behind was Nabisco Ritz from Kraft Foods, Inc., North eld, IL, at $326.3 million, an 8.9% increase. Units were up 8.4% and volume 4.7%. Nabisco Wheat Thins rolled up $270.5 million in sales, up 2.7%, with unit and volume increases of 1.8% and 1.4%, respectively. Nabisco Wheat Thins Stix also produced a nice 74.2% increase in sales of $19.5 million, with units and volume both up 75.5%. Kraft offers a Nabisco website that makes it easy for consumers to tweet their favorite uses of Wheat Thins. For example, @jbranza tweeted on April 19, Shut-the-front-door Wheat Thins has a Spicy Buffalo. Just when I didnt think my love could get any deeper.

Indicating the growth of consumer interest in healthierfor-you products, sales of Stacys Pita Chips from Stacys Pita Chip Co., Randolph, MA, rose a healthy 27.4% to $122.4 million, with units up 32.8% and volume 30.6%. Kelloggs Special K Crackers, with $77.1 million in sales, jumped 142.9% on unit and volume sales increases of 141% and 86.9%, respectively. Stacys is a part of Frito-Lay, and the division bene tted from the Plano, TX-based snack producers large distribution network. Our Stacys business is doing very, very well, Indra Nooyi, PepsiCo chairman and CEO, told analysts during a conference call in late April. I think the name of the game for Frito-Lay is slowly and deliberately building the business, rather than jerking the business around to gain short-term share. Kellogg rolled out Special K Cracker Chips Sea Salt and Special K Cracker Chips Sour Cream, the Special K cracker lineup is a formidable one. These baked cracker chips are a boon for the weight conscious, with 27 chips producing only 110 Cal, and just 20 Cal from fat. Throughout Kellogg history, our commitment to product innovation has built brands that consumers know and love, said Brad Davidson, president, Kellogg North America. The introduction of new products in the rst half of 2012

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Top Cracker Brands


Brand (segment) / Vendor Dollar Sales ($mil) 4,299.7 3,242.9 407.1 347.4 269.7 32.7 359.7 326.3 270.5 263.0 245.1 182.8 150.5 134.7 125.2 122.4 105.6 101.5 80.2 77.1 68.3 66.7 61.4 51.5 38.2 38.0 37.8 37.3 36.6 36.4 33.2 32.9 31.2 30.8 30.3 30.2 29.9 28.8 26.4 25.9 25.4 Dollar Sales % Change 5.2 5.7 6.8 0.2 4.6 1.4 4.2 8.9 2.7 8.6 0.3 (3.0) (0.4) 2.9 10.2 27.4 3.9 9.6 14.3 142.9 111.2 (0.1) 17.4 4.8 9.9 3.6 22.9 (3.7) 2.5 (2.6) 23.6 0.0 (0.6) 0.5 (10.6) 12.4 (21.9) (2.1) 1.3 (10.0) 39.1 Unit Sales (mil) 1,675.8 1,204.2 191.7 169.2 97.9 12.8 129.6 121.9 97.1 111.8 88.5 70.3 74.0 47.5 36.6 37.9 72.4 36.0 33.7 26.0 23.2 30.1 27.0 21.6 20.3 16.2 13.7 10.4 14.9 16.1 11.5 10.5 11.1 10.8 11.5 11.2 10.5 12.2 11.8 8.6 9.3 Unit Sales Volume Volume Sales % Change Sales % Change (mil lb) 2.3 3.0 3.8 (3.2) 1.3 (2.5) 1.1 8.4 1.8 4.1 (0.8) (6.5) (5.1) 0.6 9.4 32.8 (2.9) 6.4 3.4 141.0 108.4 (3.4) 12.7 2.5 (0.5) 5.1 26.7 10.4 14.9 16.1 11.5 10.5 11.1 10.8 11.5 11.2 10.5 12.2 11.8 8.6 9.3 1,115.4 762.4 103.2 163.1 80.2 6.5 98.7 113.0 63.1 57.1 53.5 65.7 48.9 44.1 33.9 20.6 72.4 30.1 18.0 8.0 10.8 27.2 18.0 10.5 11.9 16.2 5.1 3.2 7.4 10.8 5.8 5.8 5.3 5.4 5.7 5.9 7.7 7.5 7.4 3.2 2.5 0.8 1.4 4.2 (3.8) 1.4 (1.1) 2.6 4.7 1.4 2.5 (1.2) (7.5) (3.7) 0.3 7.9 30.6 (2.9) 2.0 6.3 86.9 125.0 (3.3) 13.4 (2.2) 1.3 5.1 27.6 (7.2) 22.1 (4.9) 22.1 (2.8) (4.4) (0.4) (15.8) 11.1 (25.1) (8.6) (1.9) (14.4) 42.6

Crackers - total All other crackers Crackers with llings Saltine crackers Graham crackers Breadsticks

Sunshine Cheez-It (other)/The Kellogg Company Nabisco Ritz (other)/Kraft Foods, Inc. Nabisco Wheat Thins (other)/Kraft Foods, Inc. Pepperidge Farm Goldsh (other)/CSC Brands, LP Nabisco Triscuit (other)/Kraft Foods, Inc. Nabisco Premium (saltine)/Kraft Foods, Inc. Private label (other) Keebler Club (other)/The Kellogg Company Nabisco Honey Maid (graham)/Kraft Foods, Inc. Stacy's Pita Chips (other)/Stacy's Pita Chip Co. Private label (saltine) Keebler Townhouse (other)/The Kellogg Company Pepperidge Farm Flavor Blasted Goldsh (other)/ CSC Brands, LP Kellogg's Special K (other)/The Kellogg Company The Snack Factory Pretzel Crisps (other)/ Princeton Vanguard LLC Private label (graham) Keebler (with llings)/The Kellogg Company Pepperidge Farm Goldsh Colors (other)/ CSC Brands, LP Private label (with llings) Keebler Zesta (saltine)/The Kellogg Company Nabisco Ritz (with llings)/Kraft Foods, Inc. Carr's (other)/United Biscuits (UK) Ltd. Nabisco Ritz Bits (with llings)/Kraft Foods, Inc. Lance Toast Chee (with llings)/Snyder's-Lance, Inc. Nabisco Ritz Toasted Chips (other)/Kraft Foods, Inc. Keebler Toasteds (other)/The Kellogg Company Kraft Handi Snacks Dunk'ems (with llings)/ Kraft Foods, Inc. Nabisco Wheat Thins Toasted Chips (other)/ Kraft Foods, Inc. Nabisco Triscuit Thin Crisps (other)/Kraft Foods, Inc. Nabisco Flavor Originals Chicken in a Biskit (other)/Kraft Foods, Inc. Keebler Townhouse Flipsides (other)/ The Kellogg Company Lance (with llings)/Snyder's-Lance, Inc. Lance Captain Wafers (with llings) Snyder's-Lance, Inc. New York Style Bagel Crisps (other)/ Chipita America, Inc. Blue Diamond Nut Thins (other)/ Blue Diamond Growers
SOURCE: INFOSCAN REVIEWS TOTAL US SUPERMARKETS, DRUGSTORES AND MASS MERCHANDISERS EXCLUDING WAL MART 52 WEEKS ENDING MARCH 18, 2012

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continues that legacy and provides delicious options for the whole family. Cheddar and Southwest Ranch are the newest additions in Kelloggs Special K Cracker Chip lineup. Described as light, crispy and perfectly seasoned, the cracker chips contain 110 Cal per 27-chip serving, which also contains up to 3 g fat with 0.5 g saturated fat, 3 g ber and 2 g protein. The chips retail in a 4-oz box, which contains about three and one half servings. Kelloggs also rolled out Cheez-it Mozzarella crackers with creamy, 100% Mozzarella cheese. These products re ect our commitment to invest in the future and our clear insight into the needs of consumers, Davidson said earlier this year. This trend toward better-for-you snacks echoes throughout the industry. Perceptions of snacks nutritional properties can have as much to do with whats absent as with whats present, said John Rodwan, editorial director, BMC Information Services, a division of Beverage Marketing Corp., which produces an annual Snack Food in the US report. Almost every snack food company PepsiCo, Kraft, ConAgra, Campbell, Blue Diamond and on and on pledged to reduce the sodium content of salty snacks and took steps toward that end. Pita Bites from Sensible Portions, Boulder, CO, also got in on the act with more than $5.8 million in sales, a 65.8% increase, with units and volume each up 64.6%. The company calls itself the next generation in healthy foods, with its portion control packaging of all natural snacks, that include pita bites that contain no cholesterol or trans fat. Nine crackers provide

120 Cal, 30 of which come from fat. Flavors are Garlic and Chive, Sea Salt, and Black Olive Feta, available in 5-oz pouches and boxes and 2-oz boxes. Portion control is another ubiquitous trend throughout the snack food industry. The proliferation of 100-Cal packs, to which virtually every major company has contributed, exempli es the use of packaging for functional and marketing purposes, Mr. Rowdan said. By preparing single-serving units with low calorie content, snack makers appeal to consumers watching their waistlines or worried about their childrens caloric intake without having to develop wholly new products. Innovation and new products are a big deal in crackers, too. The Kellogg Company introduced Cheez-It Pepper Jack baked snack crackers, bite-sized crackers made with 100% real cheese. Meanwhile, Snyders-Lance, Inc., Charlotte, NC, announced three varieties of Lance Cracker Creations, an allnatural, premium line of sandwich crackers. The companys Granola Chocolate, Granola Peanut Butter and 5 Grain Peanut Butter Lance Cracker Creations offer whole grains and began shipping in April. We cant wait for people to try the new varieties of Cracker Creations, which received outstanding results and comments in customer taste tests, said Alvaro Trinidad, senior brand manager. The Granola varieties offer a delicious new twist on the sandwich cracker category, and 5 Grain Peanut Butter is a avorful and lling snack. Bob Gatty

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S TA T E O F T H E I N D U S T R Y R E P O R T

Where Health and Indulgence Coexist


During the past year, the down economy combined with increasing concerns about health, tness and nutrition may have served to depress sales of some cookie brands, but then others did just ne as they responded to changing consumer preferences. Overall, cookies generated $4.3 billion in sales for the year ending March 18, as reported by SymphonyIRI Group, an increase of 3.9%. But higher prices accounted for much of that boost, as unit sales rose only 1.8% and volume sales fell 1%. Private label cookie products, at $668.3 million in sales, were off 1.5%, with declines of 4.6% in units and 6.1% in volume. Those numbers appear to con rm conclusions in the overall State of the Snack Food Industry report that consumers are returning to their favorite brands, although they want the best price possible. Proving that American consumers still have a sweet tooth, Oreo Cookies from Kraft Foods, Inc., North eld, IL, turned in a strong performance with $336.6 million in sales, up 10.1% for the year on unit sales increase of 6.3% and volume of 4.9%. These gains came as Krafts Nabisco Chips Ahoy! sales of $330.1 million increased by 3.4%, with unit sales up by 7.1% and volume growing by 1.9%. Cookie brand marketers did not rest on their laurels and came out with a variety of new products. The innovations were designed to respond

COOKIES

to speci c consumer needs, including a desire for healthier snacks, a need to eat on the go, and a continuing penchant for an indulgent treat now and then. For example, Archway Bakeries Co., part of Snyders-Lance Inc., Charlotte, NC, launched two cookie varieties in response to requests from Facebook fans and consumers: Rocky Road and Pecan Turtle cookies, which are sold in 9- and 9.25-oz. trays. Rocky Road is a soft chocolate cookie lled with semisweet chocolate pieces, walnuts and marshmallow bits, while Pecan Turtle combines milk chocolate chunks, caramel pieces and pecans that are baked into a soft, chewy cookie. The Quaker Oats Co., Chicago, IL, rolled out packaged Quaker Oatmeal Cookies. Its Soft Baked or Crunchy Oat Granola varieties are wrapped with six cookies per box. The Soft Baked cookies come in Apple and Cinnamon, Banana Nut, Chocolate and Almond, Cranberry and Yogurt, and Raisins avors. Crunchy Oat Granola cookies come in seven singleserve packages of four cookies in Apple and Cinnamon, Mixed Berry, and Raisins avors. Under its Keebler brand, the Kellogg Company, Battle Creek, MI, launched two indulgent cookies. Featuring a dark chocolate cookie drizzled with dark fudge, Fudge Strips Dark Chocolate cookies are a dark twist on an all-time classic.

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Jumbo Fudge Sticks Mint cookies are made with layers of crispy wafers, mint- avored lling and Keebler fudge. Other indulgent lines also showed strong growth. Kelloggs Keebler Fudge Shoppe cookies were up in sales 15.8%, at $24.2 million, with units increasing 12.9%, although volume was off slightly at 1.2%. Meanwhile, Krafts Nabisco Snackwells brand, seen as a less fattening alternative, produced a hefty 28.3% dollar sales increase to $32.5 million. Unit sales climbed 42.5% and volume jumped 18.4%. Responding to the on-the-go needs of many time-starved consumers, Nabisco Go-Paks Mini Oreo cookies produced $11.4 million in sales, a 33.2% increase, while unit and volume sales both increased 36.7%. Producers of packaged snacks could learn something from the food service sector. For food service operators who produce cookies as part of their product assortment, attention to products according to day parts can pay off, according to Nikki

McBrayer, category marketing manager for cookies, brownies and bars for Otis Spunkmeyer, San Leandro, CA. The breakfast and snacking day parts are currently seeing the most growth at operators, she says. Consumers are continuing to drive these day parts, looking for on-the-go baked goods that are easy to eat in the car or at work. These trends have given a boost to our individually wrapped and easy onthe-go baked goods such as cookies and muf ns. Ms. McBrayer said the largest opportunities really come from developing innovative baked goods that can meet the consumers need for grab-and-go items while meeting the operators need for baked goods that are easy to execute. Also introduced were mini-sized 0.7-oz cookies in the Sweet Indulgence line and 0.75-oz portions in the Sweet Discovery line. They are offered in a variety of avors, including chocolate chip, oatmeal raisin, raspberry cheesecake and Belgian chocolate chunk. Bob Gatty

Top Cookie Brands


Brand / Vendor Dollar Sales ($mil) 4,317.6 668.3 336.6 330.1 151.8 137.8 108.6 88.5 86.9 85.5 78.3 75.3 60.2 54.4 50.6 47.2 45.4 45.4 35.8 33.2 32.5 30.3 29.8 28.6 28.4 28.1 Dollar Sales % Change 3.9 (1.5) 10.1 3.4 (1.0) 0.5 0.6 2.6 (5.0) (8.6) 9.0 (1.2) (0.5) (7.9) 2.3 NA 1.7 (13.2) (3.3) (11.7) 28.3 (1.6) (1.9) 7.7 12.7 2.6 Unit Sales (mil) 1,709.8 281.7 109.7 127.3 49.8 37.8 63.5 28.1 30.7 28.7 23.3 41.5 22.8 18.4 20.7 14.0 14.9 15.9 13.1 13.4 11.1 10.1 11.1 9.2 7.7 10.9 Unit Sales Volume Volume Sales % Change Sales % Change (mil lb) 1.8 (4.6) 6.3 7.1 (2.4) (3.8) (7.6) 3.8 (4.6) (10.4) 7.3 (12.1) (4.6) (8.5) 4.7 NA (1.1) (14.8) (0.9) (12.8) 42.5 (4.1) (4.5) 10.6 5.3 7.4 1,275.3 270.2 105.1 105.3 48.6 34.2 59.1 21.9 12.4 13.3 16.5 35.4 15.3 17.2 18.8 8.9 11.3 6.1 8.0 9.6 5.3 9.2 6.5 3.7 5.3 8.7 (1.0) (6.1) 4.9 1.9 (9.3) (5.8) (8.5) 3.5 (7.3) (10.7) 1.9 (11.2) (4.3) (12.8) (7.9) NA (1.0) (15.2) (5.2) (12.9) 18.4 (3.5) (5.0) 10.6 2.2 (6.6)

Cookies - total Private label Nabisco Oreo/Kraft Foods, Inc. Nabisco Chips Ahoy!/Kraft Foods, Inc. Nabisco Oreo Double Stuff/Kraft Foods, Inc. Lofthouse/Ralcorp Frozen Bakery Products Little Debbie/McKee Foods Corp. Nabisco Newtons/Kraft Foods, Inc. Pepperidge Farm Milano/CSC Brands, LP Pepperidge Farm/CSC Brands, LP Nabisco Nilla/Kraft Foods, Inc. Little Debbie Nutty Bar/McKee Foods Corp. Voortman/Voortman Cookies Ltd. Nabisco Golden Oreo/Kraft Foods, Inc. Keebler Chips Deluxe Nabisco Newton Fruit Thins/Kraft Foods, Inc. Nabisco Nutter Butter/Kraft Foods, Inc. Murray Sugar Free/The Kellogg Company Archway/Snyder's-Lance, Inc. Keebler Fudge Shoppe Fudge Stripes/ The Kellogg Company Nabisco Snackwell's/Kraft Foods, Inc. Mother's/The Kellogg Company Nabisco Teddy Grahams/Kraft Foods, Inc. Nonni's/Nonni's Foods, Inc. Entenmann's/Bimbo Bakeries USA Keebler Pecan Sandies/The Kellogg Company
SOURCE: INFOSCAN REVIEWS TOTAL US SUPERMARKETS, DRUGSTORES AND MASS MERCHANDISERS EXCLUDING WAL MART 52 WEEKS ENDING MARCH 18, 2012

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Making it Into a Meal


Corn snacks began hitting grocers shelves in the 1950s and have been a staple in the snack aisle ever since. In addition to being a snack in the pantry, corn snacks can serve as an ingredient or accompaniment to a variety of dishes. In fact, consumers may be turning to corn chips and snacks more often to assist with meal preparation. Corn snack manufacturers often provide recipes on their consumer websites showcasing ways in which these products can be incorporated into foods. In fact, Frito-Lay North America, Plano, TX, features more than a dozen recipes that use its Frito brand corn snacks. Using snacks in recipes isnt exactly a new concept, however. Wise Foods, Berwick, PA, permits visitors of its website to download a 1959 cookbook that includes a variety of recipes incorporating its potato chips. Today, Wise Foods offers several types of corn chips, including traditional corn chips in Original and Bar-B-Que

CORN SNACKS

varieties as well as Dipsy Doodles Wavy Corn Chips, which it refers to as the The Ultimate Dipping Chip on its packaging. Herr Foods, Nottingham, PA, features many recipes on its website, including a salsa chip meatloaf, which can use a bag of corn chips. In fact, those a bit adventurous in the kitchen might even use the companys Chili Cheese corn chips, which is the companys latest introduction in this category. A new style of corn chip that is made with popcorn appears to be making a lot noise in this segment. Chipins from Popcorn, Indiana, Englewood, NJ, represents one of the fastest growing corn snacks. Chipins gourmet popcorn chips were introduced to the market in January 2011. Launched in four varieties White Cheddar, Hot Buffalo Wing, Sea Salt and Jalapeo Ranch the air-popped popcorn chips has seen its sales quadruple during the past year, according to SymponyIRI Group sales data. The company expanded its offering earlier this year when it began offering a Classic BBQ avor.

Top Corn Snack Brands


Brand / Vendor Dollar Sales ($mil) Dollar Sales % Change 5.6 3.4 1.0 6.3 5.1 42.7 5.2 NA (6.2) 0.4 (11.3) 412.1 1.4 73.9 (36.7) (2.8) 8.6 (11.8) Unit Sales (mil) 215.4 88.8 42.8 18.7 16.8 14.9 8.5 2.4 3.6 2.0 1.5 0.7 1.1 1.2 0.8 0.7 0.6 0.4 Unit Sales Volume Volume Sales % Change Sales % Change (mil lb) (2.4) (8.2) (5.2) 6.7 (8.3) 32.3 2.8 NA (16.8) (6.9) (14.4) 557.2 (6.9) 62.6 (40.6) (9.5) 7.7 (18.0) 114.7 46.5 32.6 8.0 7.4 6.2 5.4 0.7 0.9 0.7 0.7 0.5 0.5 0.5 0.3 0.4 0.1 0.2 3.6 2.2 0.8 2.4 4.5 33.7 2.4 NA (12.5) (4.9) (13.5) 478.8 (5.6) 72.7 (40.6) 13.6 7.7 (17.2)

Corn Snacks (no tortilla chips) - total 471.2 Fritos/Frito-Lay North America, Inc. 196.5 Fritos Scoops/Frito-Lay North America, Inc. 127.6 Bugles/General Mills, Inc. 37.6 Fritos Flavor Twsits/Frito-Lay North America, Inc. 31.6 Barcel Takis Fuego/Barcel USA 25.6 Private label 13.4 PopCorners/Medora Snacks 4.7 Sabritas/Frito-Lay North America, Inc. 4.2 Barcel Takis/Barcel USA 3.0 Mike-sell's/Mike-sell's Potato Chip Co. 2.9 Popcorn Indiana Chip'ins/Popcorn Indiana 2.2 Wise Dipsy Doodles/Wise Foods, Inc. 2.0 Barcel Churritos/Barcel USA 1.9 Fritos Singles/Frito-Lay North America, Inc. 1.9 Tom's/Snyder's-Lance, Inc. 1.3 Have'a/Have'a Natural Foods 1.2 Robert's American Gourmet Tings/Pirate Brands 1.2
SOURCE: INFOSCAN REVIEWS TOTAL US SUPERMARKETS, DRUGSTORES AND MASS MERCHANDISERS EXCLUDING WAL MART 52 WEEKS ENDING MARCH 18, 2012

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Hitesh Hajarnavis, CEO of Popcorn, Indiana, observed that the Chipins have performed extremely well, Medora Snacks, Freeport, NY, markets a similar new snack known as PopCorners, which, according to SymphonyIRI Group data, is now the seventh largest corn snack brand. PopCorners sales grew more than tenfold this past year, and they are available in six varieties: Butter, White Cheddar, Kettle, Cheesy Jalapeo, Sea Salt and Caramel. Medoras website features recipes that include these new corn snacks. For nearly 50 years, Bugles corn snacks from General Mills, Minneapolis, MN, have been attracting consumers with their either cone or funnel shapes, depending on which way you look at them. The companys web page for these snacks links to a Betty Crocker website, where consumers can discover 10 recipes using Bugles, which are the third top-selling corn snack, according to SymphonyIRI. It also was the only Top 4 brand to see unit sales increase as well as dollar sales. In fact,

unit sales growth outpaced its dollar sales increases, 6.7% vs. 6.3%, and it was rare this year that a brands unit sales increased more than than its dollar sales. Many snack manufacturers rely on better packaging formats than in the past, noted Dan McGrady, vice-president, technical services, Wyandot, Inc., the Marion, OH-based contract manufacturer and private label snack producer. We have seen a move in many cases to packaging with higher barrier structures to provide increased shelf life, he said. We have also seen increased interest in smaller bags to provide portion control and some interest in resealable packaging. Meanwhile, Barcel USA, Irving, TX, a division of Grupo Bimbo, Mexico City, Mexico, underwent phenomenal growth with two of its top-selling corn snack products this past year, according to SymphonyIRI data. Barcel Takis Fuego, which is its top corn snack product with sales of more than $25 million, increased its dollar sales by nearly 43%. Although Barcel Churritos, which are available in a Chile and Lime variety, bring in much lower sales of $1.9 million annually, the brands dollar sales jumped by nearly 74%. With three of the Top 4 brands, Frito-Lay dominates sales in the corn snacks segment, according to SymphonyIRI data. These three products Fritos, Fritos Scoops and Fritos Flavor Twists represent more than three-quarters of all corn snacks dollar sales in those retail channels represented by the sales scan data. Shane Whitaker

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S TA T E O F T H E I N D U S T R Y R E P O R T

SNACK NUTS AND SEEDS

Crazy After All These Years


Snack manufacturers are going a bit kooky in the nut category. No longer do they just include salted nuts packaged in a jar, bag or grab-and-go packet. Rather, nut producers now incorporate them into their own energy bars, health bars, trail mixes and even nut clusters. Snak King Corp., City of Industry, CA, introduced its Whole Earth Bite-Size Nut Clusters as a healthy option for breakfast, lunch or any snack occasion. Nut Clusters are primarily assorted nuts held together with a clean sugar base with no other additives, said Jeff Roberts, marketing manager. Snacks are becoming meal replacements for many consumers who are on-the-run but still want some healthy alternatives. Snak Kings Whole Earth Cashew, Almond and Cranberry and Cashew, Almond and Pistachio Nut Clusters come in a 1.25-oz bag in addition to a 5-oz size and provide a good source of protein and ber, he added. Snak King also offers various trail mixes with nuts. As we like to use our own phrase for marketing, these are Earth Snacks. These types of snacks all have healthy components: natural, nothing arti cial and packed with protein, Mr. Roberts said. Meanwhile, Fisher Nuts, Elgin, IL, has seen increased sales in almonds and trail mixes, noted Howard Brandeisky, vice-president, global marketing, innovation and customer solutions. Its two new almond varieties include Cocoa Mocha and Vanilla Bean. Flavored almonds have been real growth drivers, he noted. Fisher also relaunched its Fisher Fusions line as Fisher Trail Mix, which is available in Summit, Energy, Sweet Nut, Tropical and Cheddar varieties. Mr. Brandeisky noted the products now come in 4-oz or less packages to better t consumers on-the-go consumption. Snak King also downsized its portions to encourage healthier snacking, Mr. Roberts said. Planters by Kraft Foods, North eld, IL, broadened its line of Nut-rition items with such products as Mens Health nuts and even an array of snack and energy bars. Typical of efforts to present products as having functions beyond tiding one from one meal to the next are Planters Nut-rition mixes and bars that combine nuts with various other ingredients pegged to particular bene ts such as antioxidants, energy and heart health, noted John Rodwan, editorial director, BMC Information Services, a division of Beverage Marketing Corp., which produces an annual Snack Food in the US report. In the seeds segment, the core consumers tend to be baseball and other sports players who range from teenage to mid-20year-old males, according to Dan Skinner, manager of public relations and social media, ConAgra Foods, Omaha, NE. The companys top-selling varieties under the David sun ower seeds brand include Original, Barbeque, Nacho Cheese and Dill Pickle, Mr. Skinner said. Thanasi Foods, Boulder, CO, just added Hidden Valley Ranchavored sun ower seeds to its Bigs line. The company has seen tremendous growth in sun ower seeds with its co-branding and product offerings of larger sun ower seeds with big avors, noted Justin Havlick, Thanasis president. The majority of our companys SKUs are avored with Americas favorite ingredients, he explained. Our dill pickle avor is with real Vlasic dill pickle juice, our Buffalo wing avor is made with Franks Red Hot Buffalo Wing Sauce, and Sizzlin Bacon is made with bacon salt. So some great ingredients and some fantastic innovations are coming together. Susan Malovany

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Top Snack Nuts/Seed/Corn Nuts Brands


Brand (segment) / Vendor Dollar Sales ($mil) 2,201.1 2,043.8 141.9 15.4 Dollar Sales % Change 7.6 7.9 3.5 18.7 2.6 1.6 62.7 16.0 25.7 (1.5) 1.4 4.2 12.1 0.3 (12.8) 14.3 (3.5) 23.1 (23.1) 13.5 (4.1) 36.7 Unit Sales (mil) 666.1 562.6 93.1 10.4 181.1 102.6 47.5 52.3 47.3 28.5 7.7 15.4 8.3 25.2 3.4 2.2 3.5 8.8 14.3 4.4 2.3 4.0 Unit Sales Volume Volume Sales % Change Sales % Change (mil lb) 0.2 0.4 (2.2) 12.9 (6.0) (6.4) 71.7 16.6 15.4 (9.3) (6.7) (3.3) 7.1 0.2 (18.4) 11.9 12.9 15.6 (39.2) 6.8 (9.4) 33.7 440.8 398.9 38.4 3.5 146.2 84.2 32.4 26.3 28.4 10.8 4.7 10.9 10.9 4.4 3.3 1.9 1.6 2.9 1.8 6.3 1.5 2.4 (2.2) (2.1) (4.8) 20.8 (7.5) (8.9) 58.5 19.0 14.1 (5.0) (7.0) (8.8) 9.9 (9.1) (19.2) 7.4 (20.1) 27.8 (33.0) 7.1 (9.4) 27.8

Snack Nuts/Seeds/Corn NutS - total Snack nuts Sunower/pumpkin seeds Toasted corn nut snacks

Private label (snack nuts) 683.5 Planters (snack nuts)/Kraft Foods, Inc. 397.1 Wonderful (snack nuts)/ Paramount Farms International LLC 232.7 Blue Diamond (snack nuts)/ Blue Diamond Growers 183.8 Emerald (snack nuts)/Diamond Foods, Inc. 160.3 David (seeds)/ConAgra Foods, Inc. 44.6 Planters Nutrition (snack nuts)/Kraft Foods, Inc. 41.5 Private label (seeds) 32.0 Hampton Farms (snack nuts)/Hampton Farms 21.2 Frito-Lay (seeds)/Frito-Lay North America, Inc. 16.7 SunTree (snack nuts)/SunTree LLC 15.6 Keenan Farms (snack nuts)/Keenan Farms, Inc. 15.0 Everybody's Nuts (snack nuts)/ Paramount Farms, Inc. 14.0 CornNuts (toasted corn nuts)/Kraft Foods, Inc. 13.3 Frito-Lay (snack nuts)/Frito-LayNorth America, Inc. 12.6 Hampton Farms Premier (snack nuts)/ Hampton Farms 12.5 Planters Harvest (snack nuts)/Kraft Foods, Inc. 12.4 Good Sense (seeds)/Waymouth Farms, Inc. 8.7
SOURCE: INFOSCAN REVIEWS TOTAL US SUPERMARKETS, DRUGSTORES AND MASS MERCHANDISERS EXCLUDING WAL MART 52 WEEKS ENDING MARCH 18, 2012

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CHEESE SNACKS

Bold and Bolder Flavors


Cheese snacks is not the biggest seller in the salted snack universe. In fact, the entire categorys sales dont even match those of Doritos tortilla chips, according to SymphonyIRI Group scan data. Overall, cheese snacks sales increased to $748.8 million this past year, while Doritos sold $798.2 million. Predictably, the marketer of Doritos, Frito-Lay North America, Plano, TX, also sells the No. 1 cheese snack brand: Cheetos. In fact, Cheetos account for nearly 68% of cheese snack sales, and this brands sales increased at a rate much faster than the segment as a whole. Cheetos sales jumped 5.2% for the 52-week period ending March 18, while the segments sales as a whole increased 1.1%. The categorys overall small increase could partially be attributed to Frito-Lays next three top lines, all of which experienced sales declines this past year, including a 17.9% drop off for Baked Cheetos. Also, unlike what has been seen in other salty snack segments, the companys natural product did not

perform well, as Cheetos Natural sales fell 5.5% this past year. While all other salty snack categories saw store brand sales increases, private label sales of cheese snacks declined 1.7% during the past year. Although Wyandot, Inc., Marion, OH, will not be found on any of the charts listing the tops brands and vendors, it most certainly manufactures snack foods that help to boost brands onto the list, especially private label products. Bold avors including ethnic orientation such

Top Cheese Snack Brands


Brand / Vendor Dollar Sales ($mil) 748.8 508.5 47.6 39.8 23.6 20.6 16.6 15.7 7.4 5.9 4.9 4.5 3.8 3.5 3.2 2.3 Dollar Sales % Change 1.1 5.2 (1.7) (3.8) (17.9) 1.8 (5.5) (2.2) 0.1 5.7 7.6 6.4 (6.6) NA (49.9) (13.7) Unit Sales (mil) 389.9 270.3 26.7 20.4 6.9 12.0 4.6 9.5 3.5 4.2 4.0 2.0 1.8 1.3 0.9 0.6 Unit Sales Volume Volume Sales % Change Sales % Change (mil lb) (6.6) (6.0) (7.5) (3.6) (24.0) 2.3 (1.8) 1.9 (3.3) 12.8 4.3 5.2 (5.7) NA (59.6) (14.2) 164.8 111.3 15.3 6.0 4.3 5.0 2.3 4.0 1.5 1.3 1.2 1.1 0.9 0.4 0.3 0.5 0.9 6.3 (2.4) (11.3) (17.3) (3.9) (1.8) (10.5) (3.8) 2.7 (0.6) 2.8 (10.1) NA (59.2) (14.2)

Cheese Snacks - total Cheetos/Frito-Lay North America, Inc. Private label Chester's/Frito-Lay North America, Inc. Baked Cheetos/Frito-Lay North America, Inc. Wise Cheeze Doodles/Wise Foods, Inc. Cheetos Natural//Frito-Lay North America, Inc. Utz/Utz Quality Foods, Inc. Bachman Jax/The Bachman Co. Herr's/Herr Foods, Inc. Golden Flake/Golden Flake Foods Old Dutch/Old Dutch Foods, Inc. Snyder of Berlin/Pinnacle Foods LLC Smart Puffs/Pirate Brands Roberts American Gourmet Smart Puffs/ Pirate Brands Cheetos Go Sack/Frito-Lay North America, Inc.
SOURCE: INFOSCAN REVIEWS TOTAL US SUPERMARKETS, DRUGSTORES AND MASS MERCHANDISERS EXCLUDING WAL MART 52 WEEKS ENDING MARCH 18, 2012

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great taste and texture with healthy options


Product concept development ... Let us help you fast track your new snack product development with our expertise in cereal science, and extrusion technology. Talk to us about innovation in shapes, avors, and textures. Formulation We can deliver both great taste and the claims you want to make; whole and multi grain, low sodium, nongluten and more using all natural and all Kosher ingredients. Manufacturing expertise Our unique range and control of proprietary manufacturing processes allow us to deliver a variety of expansion and textural characteristics in both shapes and micro pellets. A strong Quality Program We support every pellet we produce with QA approval of ingredient suppliers, and incoming raw materials, as well as testing of nished product performance . Customer commitment J. R Short is committed to providing the development and manufacturing expertise necessary to help our customers succeed. When you trust J.R. Short for your ingredient and extruded technology needs you get the right product at the right time, supported with the service commitment that forges a successful partnership. J. R Short Milling Company has been serving the food industry for over 100 years. Today our entire focus is on the development and production of great tasting formulas, textures and shapes used in the production of pellet-based snacks. The pellet-based segment of the snack industry is growing rapidly. providing new snacking options to consumers. The trend toward healthier options make these products a great t in the market.

We are leading development in a whole new category of snacks , and invite you along.
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J.R. Short Kankakee. IL 60901 www.shortmill.com Contact: Terry Gieseke 815-263-5344 tgieseke@shortmill.com

S TA T E O F T H E I N D U S T R Y R E P O R T

as Hispanic and Mediterranean represent an emerging trend in corn and cheese snacks, according to Dan McGrady, vicepresident, technical services, Wyandot. This trend can be veri ed when looking at the Cheetos avors available in stores. Those include: Cheddar Jalapeo, Sizzlin Cayenne and Cheese, Flamin Hot Limon Cheese, and Salsa Con Queso varieties. Additionally, Mr. McGrady said, the better-for-you movement has emerged the most prevalent emerging trend. This category has many components including gluten free, no MSG, no arti cial avors or colors, whole grain, multigrain, he said. Surprisingly, requests for organic products have not been as similarly strong. Another emerging trend is bold avors including ethnic orientations such as Hispanic and Mediterranean. Meanwhile, Herr Foods, Nottingham, PA, introduced Buffalo Blue Cheese-flavored cheese curls. Combining the classic hot wing sauce with tangy blue cheese creates

the perfect balance of spicy goodness, according to the companys website. Wise Foods, Berwick, PA, manufactures a wide variety of cheese snacks. It offers Cheez Doodles in Crunchy, Puffed, Balls and Os shapes, and its avors include BBQ, Ranch, White Cheddar, Hot n Honey and Honey BBQ. Wise is the largest nonFrito-Lay vendor of cheese snacks, according to SymphonyIRI; however, the brand witnessed only a modest sales increase of 1.8% during the past year. Utz Quality Foods, Hanover, PA, also offers many cheese snack products, including Cheese Curls, Cheese Crunchies, Cheese Balls, Cheese Twists, White Cheddar Curls and Hot Cheese Curls. Although cheese snacks might not the largest or fastest growing salty snack, the categorys sales have continued to increase, and its products offer plenty of opportunities for snack manufacturers to continue to be creative with new avor combinations to entice consumers. Shane Whitaker

PORK RINDS

In the supermarket channel, pork rind sales leveled off his past year after being one of the fastest-growing snack segments in recent years, but thats only a part of this categorys story. Overall, several pork rind producers reported robust sales because consumers purchase the bulk of pork rinds in conve-

The Key? Carb-free!


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nience stores, liquor stores, gas stations and other channels normally not tracked by scanning data. Rich Rudolph, president, Rudolph Foods Co., Lima, OH, said the companys fresh approach to new products not only keeps the category relevant but also attracts new consumers to the market.

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People still want to know that their snacks taste good, but everybodys become more health-conscious, he said. In that respect, pork rinds are getting a renewed interest because they are zero carb and better for you than people might perceive. We continue to come up with different ways to present the product and are also introducing new avors. This has helped our companys sales increase at a 10% clip. In addition to being carb-free, pork rinds are gluten-free and have 0 g trans fat. They can be consumed by diabetics and appeal to the dairy-free crowd, Mr. Rudolph said. The core market for pork rinds tends to skew toward male consumers. But we

also have supermodels eating them, Mr. Rudolph said. Weve heard through the grapevine that those on the runway munch on pork rinds for their low-carb diets. Other consumer trends include portion control and positioning pork rinds as meal substitutes. Additionally, they have become part of lunch or dinner. Consumers also cook with pork rinds to add zest and a robust taste, he said. They are used in many recipes, among many ethnic groups. For example, they add a nice bacon avor to chicken. To broaden the categorys appeal, Rudolph Foods is also delving into some different cuts and textures for pork rinds. The company introduced pork cracklins, for example, that are popular in the Southeast and with Hispanics. Rudolph also developed new packaging concepts. Our newest concept is to package our pork rinds with an individual hot sauce packet, Mr. Rudolph noted. The company imports hot sauce packets from Mexico. Mexican-Americans are still among the biggest pork rind consumers, he said. Packaging is critical in this category. At Rudolph Foods, our pork rind packaging is clear because our customers want to see the product, to see the curl and fold of the rind, he explained. Our packaging also is colorful to match our avors. For example, purple indicates sweet barbecue, red is for hot and spicy, and green represents salt and vinegar.

Top Pork Rind Brands


Brand / Vendor Dollar Sales ($mil) Dollar Sales % Change 0.1 11.1 0.3 (0.6) 3.4 (2.2) (1.7) (4.9) (28.2) (1.3) (18.4) (3.6) (4.3) (3.6) (13.3) (18.6) 8.2 21.3 Unit Sales (mil) 65.9 13.8 8.8 5.1 4.6 1.7 1.8 3.1 2.2 1.8 1.7 0.7 0.8 0.4 0.9 0.6 1.1 0.8 Unit Sales Volume Volume Sales % Change Sales % Change (mil lb) (2.0) 10.3 0.5 (2.7) 2.0 (5.7) (6.3) (11.9) (27.9) (2.0) (24.4) (10.3) (6.7) (7.6) (8.0) (15.2) 14.4 7.1 14.8 2.8 2.5 1.3 0.9 0.6 0.4 0.6 0.4 0.2 0.4 0.2 0.3 0.2 0.2 0.2 0.2 0.1 (3.0) 8.5 (3.4) (4.2) 1.3 (5.7) (7.3) (11.0) (19.2) (2.3) (19.0) (7.2) (7.0) (7.6) (17.4) (17.3) 2.7 10.9

Pork Rinds - total 105.5 Baken-Ets/Frito-Lay North America, Inc. 25.0 Private label 13.3 Mac's/Mac's Snacks 7.6 Golden Flake/Golden Flake Snack Foods 7.0 Guerrero/Gruma Corp. 4.8 Mission/Mission Foods, Inc. 3.5 Hogs Heaven/MRB Snacks & Associates, Inc. 3.4 Turkey Creek Snacks/Turkey Creek Pork Skins, Inc. 2.3 Utz/Utz Quality Foods, Inc. 2.3 Junior Johnson/Suncrest Farms, Inc. 2.1 Mambi/Chickarrones Mambi 1.7 Yoder's/ I&K Distributors 1.6 Owens Country Creek/Owens Country Sausage, Inc. 1.6 Herr's/Herr Foods, Inc. 1.3 El Sabroso/Snak King Corp. 1.3 Souther Recipie/Rudolph Foods Co., Inc. 1.2 Brim's/Brimhall Foods Company, Inc. 1.1
SOURCE: INFOSCAN REVIEWS TOTAL US SUPERMARKETS, DRUGSTORES AND MASS MERCHANDISERS EXCLUDING WAL MART 52 WEEKS ENDING MARCH 18, 2012

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To broaden its sales, Snak King, City of Industry, CA, rolled out its Cracklin Curl. Our Cracklin Curl is a different shape than the typical pork rind that tends to be more circular, noted Jeff Roberts, Snak Kings marketing manager. Our curls have a larger surface area, which allows us to use different dynamic seasonings that really give off a great avor pop. Mr. Roberts added that the pork rind category has remained relatively strong for those consumers looking for protein-based snacks without carbs. To meet the growing demand and diversity of its customers, Evans Food Group Ltd., Chicago, IL, produces four pork skin products available in a variety of sizes, flavors and seasonings. Its products include pork rinds, pellets, sancochos and cracklins. The company said its cracklins have a little less pop and a lot more crunch, coupled with a robust bacon flavor.

When compared with other salty snack foods, pork rinds are a healthy treat, according to Evans. With half the fat and calories of potato chips, four times the protein and zero carbohydrates, pork rinds offer an alternative approach to the snacking occasion, the company noted on its website. Hot and spicy remains Rudolphs top-selling variety. Barbecue is the second most popular avor, followed by peripheral avors such as chile and lime. Salt and vinegar is gaining new ground, according to Mr. Rudolph No matter the avor, Mr. Rudolph said, pork rinds and a cool brew go hand in hand. Beer and pork rinds go well together and are bought together in some of our biggest markets: convenience stores, liquor stores and mom-and-pop stores, he explained. And our sales are high in the Southeast, which is a hotbed for this product, and also in the West because of the Hispanic population. Susan Malovany

Going Mainstream, Naturally


Wheres the beef? In the meat snacks, naturally. The categorys robust business increased sales10% during the past year, according to SymphonyIRI Group data. Jerky sales jumped 13% during the same period. According to a recent Mintel report, meat snacks are moving into the mainstream of the snacking market. In fact, the category now outsells corn snacks in the supermarket, drug and mass merchandizer channels. Jack Links, Minong, WI, experienced the largest sales gain mostly because of its distribution partnership with Frito-Lay North America, Plano, TX, according to the report Jack Links introduced a number of products during the past few months to drive its growth. Speci cally, the company combined its top-selling jerky and the fastestgrowing hot sauce to create Jack Links Cholulua Hot Sauce Jerky. Additionally, the meat snack manufacturer introduced Smokehouse brand fresh jerky. This is a relatively unknown subsegment of meat snacks, but one that hardcore meat snack consumers love, said Ashley Brandt, brand manager, Jack Links Beef Jerky. Our new lineup can be found on its own dedicated rack in convenience stores. Its rolling nationally and features unwrapped version of our products: Mega Jerky, Deli Sticks, Jerky Strips and Jerky Medallions. The company also developed a brand-new platform in meat snacks called Big Dippers. This product combines our meat snacks with a complementary dipping sauce for a unique and satisfying eating experience, he said. Mr. Brandt noted Jack Links continues to expand its Sasquatch Big Snacks line, which brings the fun of its Messin With Sasquatch advertising campaign to life into the retail arena. We recently added a new Furious stick (Hot!) and two new Sasquatch Steaks, Angry (Original) and Zen (Teriyaki), he explained. The products in this line are larger than standard category offerings and have bigger, more intense avors. Consumers seek snacks with great taste, convenience and portability, Mr. Brandt said, and these factors continue to

MEAT SNACKS

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SHINING STARS
O F SN A XP O 2012

PLATINUM

ADM Edible Bean Specialties BluePrint Automation Bryce Corporation AET Films Baptistas Bakery, Inc. Better Made Snack Foods C-P Flexible Packaging DSM Food Specialties USA, Inc. A.C. Horn & Co. Casa Herrera Commercial Creamery Company Overwraps Packaging, Inc. Agricor, Inc. Black Gold Potato Company Bruker Optics C. Cretors & Company Carolina Ingredients Elite Spice, Inc. Golden Flake Snack Foods, Inc. Herr Foods, Inc.

Evans Food Group Ltd. Heat and Control / Ishida Co. Ltd. Masipack North America Frito-Lay, Inc. Fuchs North America Kerry Ingredients & Flavours Kliklok-Woodman Land OLakes Ingredient Solutions Procter & Gamble Reading Bakery Systems Savor Seasonings Shearers Foods, Inc. Inventure Foods, Inc. J. R. SHORT Michigan Potato Industry Commission Old Dutch Foods, Inc. Plastic Packaging Technologies PPM Technologies Pretzels, Incorporated Quality Fabrication & Design

Packaging Products Corporation Printpack, Inc. Rudolph Foods Company LifeSpice Ingredients U.S. Potato Board VIFAN USA, Inc.

The Snack Food Association is proud to recognize our generous SNAXPO sponsors and exhibitors! It is your support and strong commitment to the Snack Food Industry that makes everything we do possible. A very special thank you to all our sponsors for helping us make the 75th Anniversary of SNAXPO a wonderful success.

GOLD

tna north america, inc. United Soybean Board Wise Foods, Inc. R & G Potato Co., Inc. SK Food International Snak King Corp Snyders-Lance, Inc. Steinbaecher Associates, Inc. Symrise Utz Quality Foods, Inc. Wyandot, Inc.

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drive growth of the meat snack category. Another trend is the desire for snacks that ll me up, he said. Satiety has long been an advantage of meat snacks compared with other snacks because meat snacks are naturally high in protein; satiety continues to rise up the list of consumer wants. Mr. Brandt added that jerky has other inherent bene ts: Its low in fat and calories, and consumers seek both bene ts in their snacking experience. Slim Jim, a brand of meat snacks from ConAgra Foods, Inc. also has been performing well, according to Dan Skinner, manager of public relations and social media for the Omaha, NE-based company. In this category, consumers prefer hot and

Top Meat Snack Brands


Brand (segment) / Vendor Dollar Sales ($mil) 380.0 235.5 144.4 Dollar Sales % Change 10.2 13.3 5.5 24.7 5.6 5.2 6.4 (8.3) 13.1 (3.9) (9.6) (3.3) (13.9) 12.6 (25.8) 2.5 17.7 (10.5) (2.0) 9.1 27.0 462.4 4.4 7.8 (6.4) 18.5 12.3 (9.8) 13.1 Unit Sales (mil) 122.8 47.4 75.3 25.8 35.3 8.7 12.4 2.9 3.2 0.9 2.9 3.7 1.2 0.8 0.7 1.1 3.1 0.7 2.0 1.7 1.8 0.9 0.4 0.4 0.1 0.4 0.2 0.3 0.3 Unit Sales Volume Volume Sales % Change Sales % Change (mil lb) 5.9 5.2 6.3 15.2 8.2 (8.1) 5.7 (8.7) 9.7 (12.4) 0.6 (8.5) (16.9) 8.3 (24.3) (2.2) 23.9 (11.6) 0.0 8.5 28.8 511.6 7.1 7.3 (11.2) 28.1 5.4 (8.9) (12.9) 22.7 11.1 11.6 5.6 4.0 2.2 1.5 0.5 0.6 0.7 0.8 0.8 0.6 0.2 0.2 0.5 0.3 0.3 0.1 0.2 0.1 0.1 0.2 0.1 0.1 0.1 0.4 0.1 0.1 4.0 6.1 2.0 19.8 1.2 (3.4) 5.0 (7.3) 8.3 (13.0) (18.6) 3.8 (16.0) 2.9 (19.9) (2.2) 16.9 (13.9) (1.9) 9.9 29.4 511.6 9.4 5.2 (12.6) 11.9 5.3 (16.6) 10.7

Dried Meat Snacks - total Jerky All other dried meat snacks

Jack Link's (jerky)/Link Snacks, Inc. 129.0 Slim Jim (other)/ConAgra Foods, Inc. 59.6 Private label (jerky) 36.0 Jack Links (other)/Link Snacks, Inc. 27.8 Jack Link's Matador (jerky)/Link Snacks, Inc. 15.1 Oh Boy! Oberto (jerky)/Oberto Sausage Co 14.4 World Kitchens (jerky)/World Kitchens 10.4 Old Wisconsin (other)/Old Wisconsin Sausage, Inc. 8.2 Private label (other) 6.5 Old Wisconsin Snack Bites (other)/ Old Wisconsin Sausage, Inc. 5.0 Pemmican (jerky)/Marfood USA 4.1 Bridgeford (jerky)/Bridgford Foods Corp 3.9 Johnsonville (other)/Johnsonville Foods, Inc. 3.9 Tillamook Country Smoker (other)/ Tillamook Country Smoker, Inc. 3.9 Old Wisconsin Snack Sticks (other)/ Old Wisconsin Sausage, Inc. 2.5 Jack Links Matador (other)/Link Snacks, Inc. 2.3 Jack Links All American (other)/Link Snacks, Inc. 2.0 Jack Links X Stick (other)/Link Snacks, Inc. 1.9 Jack Links The Sasquatch Big Stick (other)/ Link Snacks, Inc. 1.7 Hickory Farms (other)/Hickory Farms, Inc. 1.7 Lowrey's (jerky)/Oberto Sausage Co. 1.5 C&K Private Reserve (jerky)/C&K Unlimited, Inc. 1.5 Tillamook Country Smoker (jerky)/ Tillamook Country Smoker, Inc. 1.4 Sugar River (other)/LSI, Inc. 1.2 Bridgford (other)/Bridgford Foods Corp. 1.1 Klement's (other)/Klement's Sausage Co. 1.1
SOURCE: INFOSCAN REVIEWS TOTAL US SUPERMARKETS, DRUGSTORES AND MASS MERCHANDISERS EXCLUDING WAL MART 52 WEEKS ENDING MARCH 18, 2012

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spicy products. To leverage this trend, the company rolled out the Slim Jim Dare line of meat snacks last year, and it added jerky versions that come with the same three degrees of heat: chili pepper, jalapeo and habanero. We also extended that to a jerky line with a new product called Steakhouse Strips, just coming into stores now, Mr. Skinner observed. It comes in Carne Asada and Mesquite. Its very similar to a jerky, but its a tender and moister piece of beef. Slim Jims broader portfolio is designed to lure a larger array of consumers into the meat snack category. We are going beyond our customer target in the18-to-24-year range, he said. The Steakhouse and the Dare lines allow us to have products that appeal to slightly more sophisticated palates and a more mature audience.

Thanasi Foods, Boulder, CO, relies on product innovation to appeal to new consumer groups that make its products more mainstream. Justin Havlick, Thanasis president, said that the companys market tends to skew male, but it also targets female consumers. A lot of our products have a more tender and avorful bite than the traditional Western-style beef jerky, and with products such as Thanasis steak strips or spicy barbecue beef strips, we get rave reviews from women, too, who say, Thank you for making a product that tastes like it just comes off the grill, he said. According to Mr. Havlick, the major trends on the horizon involve co-branded avors, such as partnering with Jim Beam and using alternative proteins such as pork and bacon jerky. It appears these trends are broadening the consumption base for meat snacks, he noted. All-natural is also becoming the rage in meat snacks, according to Mr. Havlick. This year, Thanasi plans to roll out an all-natural line of meat snacks that eliminates the use of llers and arti cial ingredients. We are excited to announce that our Dukes Smoked Meats are moving to all-natural ingredients across all SKUs in 2012, he said. This assures our customers that our products are minimally processed. We are making Dukes even more premium with this initiative and staying true to our roots of making our products the simple, small-batch way. Driving this movement is Oberto Sausage Co., Kent, WA, which launched its all-natural Oh Boy! Oberto line last summer and resulted in a signi cant sales increase compared with the previous year, noted Kap Pitarys, senior brand manager, Oberto. One of the strongest trends we are seeing, across the board, is that consumers are seeking simpler, all-natural formulations, she said. Food companies in every category are responding with healthier snacks. Playing off the hot and spicy trend, Oberto launched in February an All Natural Spicy Sweet beef jerky that features the companys signature slow-roasted, smoky sweet avor, accented with real chili pepper akes for an extra sizzling kick. Ms. Pitarys noted that jerky, like other meat snacks, is a high-impulse category. In fact, 50% of jerky is purchased on impulse, she said. A real opportunity is to partner and co-promote with complementary products to bring more consumers into the category, she explained. For example, jerky and soda/beer are often purchased together in a market basket. Communicating the complementary nature of these products through bundled offers and shared display presents a real opportunity to drive category sales. Susan Malovany

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Whole Grain Snacking


Popcorn quali es as a whole grain, providing it with a natural marketing advantage compared with other salty snacks. Because whole grains are richer in dietary ber, vitamins and minerals, consumers generally perceive them to be nutritionally superior to re ned grains. Of all the salty snack categories tracked by SymphonyIRI Group, ready-to-eat (RTE) popcorn had the greatest percentage increase in sales during the past year. For the 52-week period ending March 18, RTE popcorn sales jumped 8.2%, on increased volume of 4.8%. Unit sales were up very slightly, 0.3%, which means that customers are paying more per package of popcorn, and that probably is because more premium popcorn products are available in supermarkets and other retailers. Popcorn, Indiana, Englewood, NJ, has helped to increase the premium offerings to the RTE popcorn category during the past decade. Ten years ago, all you would see were cheddar, butter and caramel popcorn products, said Hitesh Hajarnavis, CEO, Popcorn, Indiana. But when you look at the avors we have brought to the category such as Bacon Ranch Popcorn and Buffalo Cheddar Kettlecorn, we offer great-tasting, indulgent varieties, and now, we see others trying to offer similar products. Popcorn, Indiana products feature a number of healthy attributes such as being gluten-free and free of trans fats. Many of its products, including its Original Kettlecorn and Sea Salt Popcorn, are certi ed as whole grain snacks, as evidenced by

RTE POPCORN

Top RTE Popcorn/Caramel Corn Brands


Brand (segment) / Vendor Dollar Sales ($mil) Dollar Sales % Change 8.2 14.8 26.3 21.9 5.0 (6.6) (14.9) 0.9 1.3 NA 23.0 116.4 NA 12.7 2.0 (25.8) (30.4) (56.3) 58.5 16.0 15.4 (16.2) Unit Sales (mil) 145.8 27.5 10.8 14.5 7.2 12.0 15.5 4.4 5.0 3.4 4.0 1.6 1.4 1.2 1.5 1.8 3.2 1.1 1.4 0.8 0.9 1.0 Unit Sales Volume Volume Sales % Change Sales % Change (mil lb) 0.3 10.9 19.7 20.0 1.9 (7.2) (28.1) (1.5) (8.8) NA 26.2 81.1 NA 14.4 (1.2) (28.7) (38.9) (57.0) 62.0 24.6 16.2 (20.5) 59.7 8.5 4.9 8.2 4.1 5.0 4.1 1.7 1.9 1.1 1.4 0.7 0.4 0.6 0.7 0.6 0.4 0.2 0.8 0.4 0.3 0.4 4.8 20.9 32.8 27.3 (0.9) (11.6) (9.3) (1.9) (11.4) NA 26.0 92.0 NA 11.2 (5.1) (25.0) (36.9) (57.0) 48.0 21.1 10.6 (24.8)

Ready-to-eat Popcorn/Caramel Corn - total 316.4 Smartfood/Frito-Lay North America, Inc. 67.4 Popcorn Indiana/Popcorn Indiana 29.7 Private label 28.7 Orville Redenbachers Poppycock/ ConAgra Foods, Inc. 23.0 Crunch n Munch/ConAgra Foods, Inc. 20.4 Cracker Jack/Frito-Lay North America, Inc. 19.6 Jay's O-Ke Doke/Snyder's-Lance, Inc. 10.6 Wise/Wise Foods, Inc. 10.2 Nabisco Snackwell's/Kraft Foods, Inc. 9.4 Utz/Utz Quality Foods, Inc. 6.1 Angie's Kettle Corn/Angie's Artisan Treats, LLC 5.2 SkinnyPop/SkinnyPop Popcorn 4.8 Vic's/Vic's Corn Popper 3.7 Old Dutch/Old Dutch Foods, Inc. 3.4 Herr's/Herr Foods, Inc. 2.7 Chester's/Frito-Lay North America, Inc. 2.5 Smartfood 100 Calorie/Frito-Lay North America,Inc. 2.4 Ricos/Ricos Products Co., Inc. 2.3 Better Made Special/Better Made Snack Foods 1.7 Bachman/The Bachman Co. 1.7 Troyer Farms/Troyer Farms 1.6
SOURCE: INFOSCAN REVIEWS TOTAL US SUPERMARKETS, DRUGSTORES AND MASS MERCHANDISERS EXCLUDING WAL MART 52 WEEKS ENDING MARCH 18, 2012

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the Whole Grains Councils whole grain icon located on the front of packaging. The snack manufacturer also promotes its products as all natural. Offering 100% natural products is not something we jumped on; it was at our core when we started, Mr. Hajarnavis said. We spend the time to source our 100% natural ingredients. According to SymphonyIRI sales data, Popcorn, Indiana has experienced fairly rapid growth in the past few years. This past year, sales of its RTE popcorn products increased 26.3%, which was actually down from the 28.5% increase reported the previous year. Popcorn, Indiana, is the No. 2 brand behind Smartfood from Frito-Lay North America, Plano, TX, which recently launched three products under its new Smartfood Selects brand. Following a trend that has seen many of Frito-Lays other all-natural snack see signi cant sales gains over the past couple years, Smartfood Selects are made with all-natural ingredients. To help busy consumers make informed choices, each package features nutrition icons on the front of the package that highlight calories per serving as well as saturated fat, sodium and sugar content. Smartfood Selects products can be found in

the natural aisle of most grocery stores. The new Smartfood Selects popcorn varieties include Parmesan Herb, Buffalo Cheddar and Cinnamon Brown Sugar. Cinnamon Caramel Popcorn from Gaslamp Popcorn Co., which was acquired by Rudolph Foods Co., Inc., Lima, OH, this past December, has a loyal following in Southern California, according to Mark Singleton, Rudolph Foods vice-president of marketing. Rudolph Foods had been looking at the RTE popcorn category for a while, he said, noting the categorys growth trends in recent years. Founded in 1998 and named after the historic Gaslamp Quarter in San Diego, CA, Gaslamp Popcorn is all-natural and also available in Kettle Corn and White Cheddar varieties. During the past six years, Mr. Singleton said, the sweet and salty combination of kettle corn has really helped to boost this category. Because kettle corn doesnt have as much sugar as caramel corn, it allows for guilt-free snacking, he added. Popcorn manufacturers hope new and exotic avors continue to energize the RTE popcorn category and push consumers to purchase RTE popcorn for home snacking occasions. Shane Whitaker

MICROWAVE POPCORN

A New Pop Culture


In the world of microwaveable popcorn, new packaging formats remain hot, and theyre driving the categorys growth, according to Dan Skinner, manager of public relations and social media, ConAgra Foods, Inc., Omaha, NE. Speci cally, the companys Orville Redenbacher Pop Up Bowls are one of the more innovative developments since the creation of the microwave that eventually made hot popcorn a convenient snack. The Pop Up Bowl that rolled out last year was extremely wellreceived, and were looking to expand that concept across the line, Mr. Skinner explained. Were looking for opportunities for the expansion of Pop Up Bowls to bring that concept into a wider piece of the business because it was so popular. The bag that pops up into a bowl is just one of many ways ConAgra relies on packaging to energize sales and call attention to a category that had been a bit quiet in recent years. The company also rolled out single serving avor packs that come in White Cheddar, Sea Salt and Vinegar, and Extra Cheese. The avor packs come with separate seasoning that allows consumers to add as much cheese or avoring as they want to match their taste preferences. It gives people the opportunity to try different avors and customize their eating experiences, Mr. Skinner said. ConAgra also offers Act II microwaveable popcorn, which caters to people who are a little more value-conscious than

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Top Microwave Popcorn Brands


Brand (segment) / Vendor Dollar Sales ($mil) 662.1 579.6 Dollar Sales % Change 3.2 2.0 8.5 (34.8) 1.6 NA (25.0) (10.6) 3.0 (10.7) (8.3) (7.4) NA 13.3 5.9 NA 5.9 (2.9) Unit Sales (mil) 264.3 235.0 35.0 27.6 49.9 16.5 12.0 20.6 10.5 10.5 6.5 6.8 5.5 4.0 4.7 2.8 5.0 2.5 Unit Sales Volume Volume Sales % Change Sales % Change (mil lb) 1.6 0.9 3.9 (40.3) 2.3 NA (30.9) (2.3) (0.7) (5.6) (11.8) (7.1) NA 24.7 5.5 NA 3.2 (5.2) 229.9 180.3 30.8 24.6 40.3 12.1 8.8 13.0 10.3 6.9 3.9 3.9 4.0 2.3 3.5 2.0 3.3 2.3 0.6 (1.1) 6.1 (37.7) 2.6 NA (30.3) (15.5) 0.3 (17.0) (8.2) (8.8) NA 11.5 4.5 NA 3.4 (5.1)

Popcorn/Popcorn Oil - total Shelf-stable microwave popcorn

Pop Secret/Diamond Foods, Inc. 102.6 Orville Redenbacher/ConAgra Foods, Inc. 88.2 Private label 84.7 Orville Redenbacher Pop Up Bowls/ ConAgra Foods, Inc. 45.8 Orville Redenbacher Smart Pop/ConAgra Foods, Inc. 42.8 Act II/ConAgra Foods, Inc. 37.7 Pop Secret Homestyle/Diamond Foods, Inc. 33.0 Act II Butter Lovers/ConAgra Foods, Inc. 20.1 Orville Redenbacher Natural/ConAgra Foods, Inc. 16.5 Jolly Time Healthy Pop/American Pop Corn Co. 15.8 Orville Redenbacher Pop Up Bowls/ ConAgra Foods, Inc. 15.2 Pop Secret 100 Colorie Pop/Diamond Foods, Inc. 13.4 Jolly Time Blast O Butter/American Pop Corn Co. 10.3 Orville Redenbacher's Smart Pop Pop Up Bowl/ ConAgra Foods, Inc. 8.3 Cousin Willie's/Ramsey Popcorn Co., Inc. 7.4 Pop Secret Jumbo Pop/Diamond Foods, Inc. 7.1
SOURCE: INFOSCAN REVIEWS TOTAL US SUPERMARKETS, DRUGSTORES AND MASS MERCHANDISERS EXCLUDING WAL MART 52 WEEKS ENDING MARCH 18, 2012

Orville Redenbacher consumers. This year, Mr. Skinner noted, the company expanded its Orville Redenbacher brand into the ready-to-eat (RTE) popcorn category with Barbeque, Kettle Corn, Farmhouse Cheddar and Sharp White Cheddar varieties that come in a 3.5- and 5-oz bags. When introducing the product concept, many of ConAgras customers thought Orville Redenbacher already came in a RTE format. That told us its probably a smart place for us to be, he said. During the past few years, ConAgra and Diamond Foods, with its Pop Secret brand, have rolled out a number of varieties of microwaveable popcorn, ranging from light, low-salt, reduced-fat and 100-Cal options for the health conscious to extra-butter, slightly sweeter movie theater and avored popcorn varieties for consumers who just want to indulge. On the Web, companies in this category like to have a little fun. On Pop Secrets website, consumers can ask popcorn characters, the Kernels, to suggest a movie to watch depending on whos viewing the movie, their mood and the type of occasion. Web visitors also can create a movie and even write a script for the Kernels. Meanwhile, Act IIs and Orville Redenbachers websites offer recipes for making desserts, snack mixes and party pleasers out

of microwaveable popcorn. In the end, this category is all about consumers enjoying themselves, Mr. Skinner said. Our core consumer is a mom who has kids maybe in the early teen or tween ages and is willing to give them a healthy snack or something they can feel good about serving, whether its during a family gathering, watching movies or after school, Mr. Skinner said. Dan Malovany

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Beans, Veggies Boost Healthy Appeal


To meet consumers concerns about health or their willingness to try more adventurous products, snack food manufacturers continue to develop salty snacks that dont t into traditional categories, and these items wind up in the other salted snacks category, which has experienced strong and steady growth. While it excludes products made with nuts, the allencompassing other category includes a wide variety of unconventional snack foods. Last summer, Hungry Girl, a free daily email subscription service about healthy eating, asked on its website, Are beans the new snack food? Pointing out that beans are nutrientpacked and gluten-free, the website highlighted several new crispy snacks made with beans, including Baked Lentil Chips from Mediterranean Snack Food Co., Boonton, NJ; All Natural Roasted Chickpea Snacks from The Good Bean, Berkeley, CA; and bean-based chips from Beanitos, Inc., Austin, TX. Dan McGrady, vice-president, technical services, Wyandot, Inc., Marion, OH, noted that the most prevalent emerging trend involves better-for-you products that are whole- or multigrain and gluten-free, and have no arti cial or avors. To that end, companys fabricated chip line permits it to make products with an almost limitless potential of combinations of ours, meals, bean proteins and ber. This potentially allows snacks to deliver a serving of vegetables in each snack serving while making a variety of health claims, he noted. Additionally, Wyandot, a contract and private label manufacturer, uses its twin-screw extrusion systems to incorporate a variety of ingredients including potato, rice, bean and a multitude of other vegetables, allowing may of the same kind of healthy claims, Mr. McGrady said. Inventure Foods, Phoenix, AZ, partnered with Nathans Famous to license the popular restaurant brand name for a new line of snacks last fall. This past September, the company introduced Garden Select vegetable crisps under its Boulder Canyon Natural Foods brand. Made with a blend of 12 vegetables, the chips provide three-quarters a serving of vegetables in each serving. Frito-Lay North America, Plano, TX, expanded its Smartfood brand of ready-to-eat (RTE) popcorn to include popped chips under the Smartfood Selects. Made with all-natural ingredients, Smartfood Selects launched four varieties of popped chips. To help consumers make informed choices, each package features nutrition icons on the front of the package that highlight calories per serving, saturated fat, sodium, and sugar. Shearers Foods, Inc., Brewster, OH, offers Riceworks and Wild Riceworks crisps, which are whole-grain, gluten-free and lower in fat than most salty snacks. They contain no trans fats, cholesterol, preservatives or arti cial avors, and they have 33% less fat than the most popular salty snacks. Wild Riceworks crisps, which are available in a Sea Salt and Black Sesame variety, combine whole-grain brown rice and wild rice in a product that has been described as somewhere between a chip and cracker. Utz Quality Foods, Hanover, PA, also markets Rice Crisps, made with whole-grain brown rice, for consumers looking for healthy snacking alternatives. Rice Crisps, which are available in Sea Salt, Sweet Chili and Salsa Fresca varieties, contain 0 g trans fat, no cholesterol and 11 g whole grains per serving. Overall sales increased 8% in the other salted snacks category, which makes it the second-fastest-growing category in the salted snacks market behind RTE popcorn, according to SymphonyIRI data. And it is the third-largest category in salty snacks behind potato chips and tortilla chips. Shane Whitaker

OTHER SALTY SNACKS

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Top Other Salted Snack Brands


Brand / Vendor Dollar Sales ($mil) Dollar Sales % Change 8.0 (4.3) (4.7) 3.2 NA 3.7 9.0 0.4 30.1 27.1 25.8 0.2 11.8 2.6 7.8 3.6 (10.1) (4.3) 148.6 (12.5) (0.9) (0.6) (5.9) 7.7 Unit Sales (mil) 446.8 47.9 53.9 62.3 10.7 42.9 26.3 18.2 14.0 14.0 27.1 8.0 6.3 4.5 4.1 3.4 7.5 6.6 3.5 3.9 4.5 3.5 2.8 6.9 Unit Sales Volume Volume Sales % Change Sales % Change (mil lb) 2.3 (3.0) (7.3) (0.6) NA (8.4) 3.7 (3.4) 18.7 23.1 9.4 0.4 4.5 5.6 13.5 1.6 (9.1) (3.8) 148.3 (3.8) (2.5) 0.6 (8.9) (0.6) 256.2 69.2 33.0 37.4 13.4 7.7 15.3 9.3 4.2 9.8 6.5 4.4 4.1 1.9 2.3 1.4 3.1 2.2 1.5 1.2 0.9 1.8 0.8 1.4 5.7 (5.8) (4.7) (1.4) NA (1.2) 12.5 (3.1) 30.4 19.8 17.4 (1.6) 12.5 4.5 6.6 1.8 (9.0) (8.1) 158.4 (10.2) (2.1) 1.2 (8.9) 9.1

Other Salted Snacks (No Nuts) - total 1,323.6 All Frito-Lay products/Frito-Lay North America, Inc. 340.0 SunChips/Frito-Lay North America, Inc. 170.8 General Mills Chex Mix/General Mills, Inc. 141.4 Frito-Lay/Frito-Lay North America, Inc. 70.8 Funyuns/Frito-Lay North America, Inc. 65.2 Private label 58.5 Munchies/Frito-Lay North America, Inc. 51.6 Pirate's Booty/Pirate Brands 47.5 Sunshine Cheez-It/Keebler Co. 41.6 Chester's/Frito-Lay North America, Inc. 33.9 Gardetto's/General Mills, Inc. 19.9 Utz/Utz Quality Foods, Inc. 18.3 Terra/The Hain Celestial Group 17.8 Wise/Wise Foods, Inc. 13.2 EatSmart Naturals/Snyder's-Lance, Inc. 12.3 Pringles Super Stack/Procter & Gamble 11.9 Pik-Nik/Pik-Nik Foods, USA 11.0 Sensible Portions/The Hain Celestial Group 10.2 RiceWorks/Shearer's Foods, Inc. 8.9 Calbee/Calbee America 8.3 General Mills Chex Mix Select/General Mills, Inc. 8.1 Sunshine Right Bites Cheez-It/Keebler Co. 7.7 Andy Capp's/ConAgra Foods, Inc. 7.5
SOURCE: INFOSCAN REVIEWS TOTAL US SUPERMARKETS, DRUGSTORES AND MASS MERCHANDISERS EXCLUDING WAL MART 52 WEEKS ENDING MARCH 18, 2012

Dipping for Extra Flavor


For the rst time, this years report includes refrigerated spreads, a category whose sales increased 9.5% during the 52week period ending March 18. Refrigerated avored spreads such as hummus are often consumed with other salty snacks such as pretzels or corn, pita or tortilla chips. In fact, Sabra Dipping Co., White Plaines, NY, the manufacturer of the No. 1 brand of avored spreads, offers a single-serve container of its classic hummus with pretzels. Sabra introduced a variety of dipping products this past year, including Greek yogurt veggie dips, guacamole, salsa and new avors of hummus. Sales of its refrigerated spreads rose
BROUGHT TO YOU BY FUCHS NORTH AMERICA, HEAT AND CONTROL, J.R. SHORT, MINSA, PRINTPACK, INC., AND TNA NORTH AMERICA 52 Snack World May 2012 www.sfa.org

DIPS, SALSA AND SPREADS

23% this past year to more than $226 million annually, which means its brand accounts for nearly 54% of all sales in the avored spreads segment. After a disappointing year in 2010, when the 2011 State of the Industry Report noted that salsa sales had declined 4.2%, salsa sales stabilized this past year with sales up 0.6%. On the Border salsas from Truco Enterprises, Dallas, TX, had the greatest sales growth among the top salsa brands. As for other dipping segments, shelf-stable dips experienced a 4.4% decline in sales this past year, while dry dip mixes

increased dollar sales by 2.6%, according to SymphonyIRI. Assisting with this increase in dry dip mixes were the top two brands from Hidden Valley, whose sales increased 7% and 11.9% during the past year. Frito-Lay also helped boost sales of dry dip mixes during the past year with the nationwide rollout of its Lays and Tostitos Dip Creations during the past year. One Dip Creations variety

requires consumers to blend two ripe avocados with a dry mix packet to create guacamole. Hispanic foods and avors are expanding across the country, and many consumers are familiar with guacamole, said Holly Deal Ramage, R&D scientist, Frito-Lay. So the question was, How can Frito-Lay get into the guacamole marketplace? Dip Creations gave us an idea to think outside of the box. It is a big challenge to get a great-tasting guacamole on the market. Wise Foods, Berwick, PA, also added two new avors, Ranch and Guacamole, to its line of dip mixes. Shane Whitaker

Top Dip, Salsa and Spread Brands


Brand (segment) / Vendor Dollar Sales ($mil) 349.5 291.7 57.8 88.9 67.3 49.9 28.7 25.8 8.9 1,062.7 767.0 122.5 101.2 71.9 290.2 134.0 92.7 68.2 35.4 34.6 30.5 29.4 28.0 28.0 519.5 421.3 74.9 23.1 226.4 43.5 41.8 41.1 Dollar Sales % Change (3.3) (4.4) 2.6 (3.4) 0.4 (10.1) (1.5) 7.0 (8.6) 0.2 0.6 1.8 (6.3) 3.7 (0.5) 2.7 (6.3) (1.7) 2.2 (2.4) 7.7 6.7 (4.2) 12.0 9.5 10.0 9.7 0.4 23.0 16.3 2.5 (11.0) Unit Sales (mil) 135.2 95.4 39.8 33.0 19.8 14.6 6.8 14.2 4.2 407.9 274.5 61.1 38.7 33.6 88.6 58.3 34.2 22.6 16.6 13.5 14.3 15.8 14.1 11.0 153.6 123.2 19.3 11.0 58.8 11.4 13.9 14.0 Unit Sales Volume Volume Sales % Change Sales % Change (mil lb) (5.7) (6.6) (3.3) (8.0) 2.3 (9.9) (4.6) 1.1 (9.6) 0.0 0.1 2.8 (6.0) 1.7 (2.1) 0.9 (5.5) 1.7 1.6 (1.5) 15.0 3.1 (7.6) 16.1 7.2 8.2 5.5 (0.4) 22.7 11.1 8.0 (14.2) 73.5 70.8 2.6 18.6 18.5 13.2 6.1 1.0 3.1 432.3 296.8 62.3 49.7 23.6 93.1 71.4 44.5 27.8 11.3 16.3 21.4 13.2 11.6 11.0 95.5 77.7 12.9 4.8 37.1 7.6 7.9 7.2 (7.3) (7.5) (3.5) (8.4) (1.8) (11.3) (4.5) 0.6 (10.3) (0.1) 0.1 3.0 (6.2) 2.1 (2.4) 1.0 (5.7) 0.5 3.9 (0.3) 12.0 5.7 (7.6) 16.1 7.7 8.5 6.2 (0.6) 24.0 13.4 2.1 (10.6)

Dips/Dip Mixes (Shelf Stable) - total Shelf stable (SS) Dry dip mixes (DD) Fritos (SS)/Frito-Lay North America, Inc. Tostitos (SS)/Frito-Lay North America, Inc. Lay's (SS)/Frito-Lay North America, Inc. Kraft Cheez Whiz (SS)/Kraft Foods, Inc. Hidden Valley Ranch (DD)/The Clorox Co. Private label (SS) Mexican Sauce - total Salsa All other Mexican sauce/marinade Picante sauce Taco sauce Tostitos (salsa)/Frito-Lay North America, Inc. Private label (salsa) Pace (picante)/CSC Brands, LP Pace (salsa)/CSC Brands, LP Ortega (taco sauce)/B&G Foods, Inc. Chi-Chis (salsa)/Hormel Food Sales LLC Las Palmas (other)/B&G Foods, Inc. Herdez (salsa)/Herdez Corp. Old El Paso (all other)/General Mills, Inc. Newmans Own (salsa)/Newmans Own, Inc. Refrigerated Spreads - total Flavored speads Meat speads/salads Horseradish/horseradish sauce Sabra (avored)/Sabra Dipping Co., LLC Private label (meat) Tribe (avored)/Tribe Mediterranean Foods, Inc. Athenos (avored)/Kraft Foods, Inc.
SOURCE: INFOSCAN REVIEWS TOTAL US SUPERMARKETS, DRUGSTORES AND MASS MERCHANDISERS EXCLUDING WAL MART 52 WEEKS ENDING MARCH 18, 2012

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May 2012

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2012 STATE OF THE INDUSTRY REPORT SPONSORED BY

Government Affairs

Taking it to Capitol Hill


SFA tackles a packed agenda in Washington, DC.
BY BOB GATTY nack Food Association (SFA) members from across the nation visited with lawmakers on Capitol Hill during the associations Legislative Summit May 15-17 in Washington, DC, to discuss several key legislative and regulatory issues. Among those on the front burner were the need to preserve choice for food stamp recipients, protect employee rights to a secret ballot in union elections and beat back organized labors efforts to limit the ability of companies to use independent contractors. The Legislative Summit is a very important part of our government relations efforts, said Jim McCarthy, SFA president and CEO. It allows our members to meet personally with lawmakers and key legislative staff members and discuss legislative and regulatory issues that can have a direct impact on their businesses. SFA certainly appreciates the time and effort of all those members who participate. Headlining the list of SFAs concerns is the potential of any revision of the Supplemental Nutrition Assistance Program (SNAP) that would limit the choice of foods that can be purchased by participants in what previously was known as the food stamp program.

Mr. McCarthy explained that as Congress develops the 2012 Farm Bill, threats have arisen at the federal level in the form of proposed studies on food choices and potential bans on certain categories of foods, including snack foods, as well as at the state level in the form of requests for US Department of Agriculture waivers to restrict certain SNAP purchases. He said SFA opposes efforts such as S 2016, introduced by Sen. Ron Wyden, which would allow states to limit the purchase of what they deem to be unhealthy food by SNAP recipients. ON THE LABOR FRONT. Two key labor issues are also on SFAs agenda. SFA is working closely with industry allies to protect member companies from efforts to limit their ability to use independent contractors to supplement their workforces and preserve appropriate overtime exemptions. The Obama administration, Mr. McCarthy said, continues to place a high priority on weeding out what it considers widespread misclassi cation of workers as independent contractors and abuse of overtime exemptions. According to Mr. McCarthy, during the past two years, Department of Labor investigations and enforcement actions have grown more

aggressive and demanding, as the agency has taken the lead in ling lawsuits against employers rather than waiting for actions by individual plaintiffs. At the same time, he added, a number of states are targeting rms using independent contractors as a means to add workers compensation and other tax revenues to help bolster depleted state coffers. Legislation was recently introduced in New York that would effectively make it impossible for anyone who is a commercial driver to be considered an independent contractor for purposes of state workforce rules. SFA opposes any governmental actions that would place unnecessary and unreasonable burdens on employment practices of member companies, Mr. McCarthy said. We want to preserve the ability of employers to use independent contractors in appropriate circumstances and preserve appropriate overtime exemptions. The second major labor issue of concern to SFA is the continuing effort by organized labor and its supporters in Congress to make it much easier for unions to organize employees of individual companies. Previous efforts to enact the Employee Free Choice Act, which would have
www.sfa.org May 2012 Snack World 55

Government Affairs
substituted the use of a card check process for votes by secret ballot, proved unsuccessful because of strong opposition from the business community. However, Mr. McCarthy cautioned, the threat continues. SFA supports the Secret Ballot Protection Act, HR 972, S 217, which guarantees that employees can cast a vote in private regarding possible union representation. SFA also supports the Workforce Democracy and Fairness Act, H.R. 3094, which would guarantee that workers have the ability to make a fully informed decision in a union election. It protects workers privacy by empowering them to choose the type of personal contact information provided to the union. The House of Representatives approved the bill in December, and it awaits action in the Senate. FOOD USER FEES. SFA opposes proposed user fees for government-mandated food safety inspection programs for meat, poultry and egg products. The proposed fees were included in the scal year 2013 budget proposal by the Obama administration, and they represent a food safety tax on consumers and not just a fee on processors, Mr. McCarthy said. Under the administrations plan, a user fee would be collected from plants for additional inspections and related activities resulting from a failure in performance at a covered establishment. In addition, a food safety services user fee would be designed to recover part of the cost of providing government food inspection-related services at covered establishments and plants, based on the facility size. SFA, along with numerous other food organizations, recently wrote to Sen. Debbie Stabenow, chair of the Senate Committee on Agriculture, Nutrition and Forestry, urging the fees be rejected. Meat, poultry and egg product inspection is a public health and safety program required by federal law and has been funded through tax dollars for over a century, the letter said. Food safety inspection bene ts everyone and therefore should be paid for through appropriated funds, which previous Congresses have agreed with. The letter added, In this fragile economy, a new food safety tax could put jobs at risk and raise prices for consumers. sw

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May 2012

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Cause to Celebrate
W
BY BOB GATTY The world has become a smaller place, and many of our newest members are coming to SFA with an international perspective, Mr. Colford observed. Outlining his objectives for the coming year, Mr. Smith said plans are under way to further improve SNAXPO, a nancial cornerstone for SFA. Other initiatives in 2012 will include continued evolution of SFAs educational offerings, staying on top of trends, issues and government regulatory requirements. The association will continue to stay abreast of key governmental issues, Mr. Smith added, saying SFA needs to own the priority issues that most concern members and continue working with allied groups on other issues of importance. He encouraged participation in the SFAs Legislative Summit ith more than 1,400 attendees, SNAXPO 2012 proved one of the most successful conferences and expositions in the history of the Snack Food Association (SFA). Held March 16-19 in Phoenix, AZ, SNAXPO was also the site of SFAs 75th anniversary celebrations as industry executives from around the world gathered for three days of business development, educational programming and networking. Scott Smith, Shearers Foods, Inc., accepted the SFA chairmans gavel during SNAXPO from outgoing chairman Matt Colford, Old Dutch Foods, Inc., who declared SFA is in a strong nancial position for now and the future. Mr. Colford noted that this years SNAXPO drew record levels of international attendees as well as exhibits, and he encouraged SFA to continue reaching out internationally to continue its growth.

This years SNAXPO proves one of the most successful as SFA rings in its 75th anniversary.

governmental affairs program, slated for May 15-17 in Washington, DC. The summit includes personal visits with lawmakers and key staff members. Mr. Smith also said SFA will explore opportunities to partner with other associations and to consider alliances where appropriate. Our association, like our businesses, is part of an evolving market, and we need to be open to what these
www.sfa.org

More than 1,400 attendees pack into the exhibit hall during SNAXPO 2012 in Phoenix, AZ.

May 2012

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opportunities present, he said. During the three days of SNAXPO, attendees were treated to a three-part video produced by SFA that traces the history of the association and highlights of the snack food industry over the years. The glittering closing reception and dinner celebrated those 75 years in high style. A BRIGHT FUTURE. A highlight of SNAXPO was the annual state of the industry presentation by Sally Lyons Wyatt, executive, client strategy and insights, SymphonyIRI Group. She

(From left) Ross Long, Kliklok-Woodman; Mark Singleton, Rudolph Foods Co.; Matt Colford, Old Dutch Foods, Inc.; Mr. Colfords son Matthew; Jim McCarthy, SFA; and Mark Lozano, TNA North America, cut the ribbon to open the SNAXPO exhibit hall.

Nutrition in the Spotlight

Consumer concerns about nutrition, health and wellness as well as government policy and pressure from watchdog groups pose an important challenge for the snack food industry as it seeks to grow and avoid harmful governmental restrictions and increased regulations, according to panelists in another educational session. Snack foods have a place in a healthy lifestyle, said Susan Borra, RD, senior vice-president, communications, Food Marketing Institute. But there are challenges and it is going to take a lot of work to get there. Ms. Borra presented consumer trend statistics that show increasing concern among supermarket shoppers regarding the nutritional value of the foods they buy and growing interest in easy-to- nd and easy-to-understand nutritional labeling on the front of packages. What can you do? she asked the snack manufacturers in the audience. Reformulation of existing products and new product The Food Marketing Institutes Susan Borra delivers an address on nutrition, development, are possible approaches, she said, so snacks saying snack foods have a place in a have a healthier halo. She acknowledged, however, agship healthy lifestyle. products probably should not be reformulated. Managing portions, providing 100-Cal packaging and childs portions are other opportunities. Be transparent, Ms. Borra said. Let people know about your product, and how proud you are of it. Discussion centered on consumer distrust resulting from food safety incidents or negative publicity spawned by anti-industry groups. David Schmidt, president and CEO, International Food Information Council (IFIC), outlined steps IFIC is taking to counter those tactics, including the development of classroom materials for use by teachers to help demystify the process by which food reaches the table. Meanwhile, SFA consultant Beth Johnson, RD, principal and founder of Food Directions LLC, acknowledged e orts are under way to restrict food allowed for purchase with food stamps and emphasized that SFA is working with other industry and anti-hunger organizations to oppose such restrictions.
Snack World May 2012 www.sfa.org

explained that even though consumers have grown increasingly nancially conservative due to the economy, they are snacking more today even as they look for more value in terms of what their snack products deliver. Value is critical, so nding the right pricing lever is paramount to driving category growth, capturing share of snack spending and retaining and building customer loyalty, Ms. Lyons Wyatt said. Yesterdays strategies are being met with diminishing returns, and a new day is dawning for snack marketers. (For more on Ms. Lyons Wyatts presentation, see the State of the Industry report beginning on Page 15 or go to www.sfa.org to view a webinar on the industry report.) Former Arkansas governor and 2008 Republican Presidential candidate Mike Huckabee, who admitted to being a snack foods fan, also highlighted SNAXPO during the closing general session. Youre in an industry where, no matter the price, people love what you make, he said. Referring to the 2012 Republican presidential primary campaign, Gov. Huckabee called for reform of a system he said allows Super PACs to use vast, obscene amounts of money contributed by undisclosed donors to fund vicious negative ads against candidates who have little ability to respond. Noting that he served as governor of Arkansas for more than 10 years, with Democrats controlling both houses of the state legislature, Gov. Huckabee also called for a more conciliatory approach to solving major national issues. Citing the Rolling Stones song, You Cant Always Get What You Want, he said US

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SNAXPO Reactions

Many attendees said SNAXPOs educational programming was relevant and on target. For example, Jacob Traverse, regional marketing manager at Novozymes, a rst-time attendee, said attending SNAXPO was a tremendous learning experience, because he was able to visit with customers, prospects and key suppliers. The educational sessions today were very good, Mr. Traverse commented. The food safety session and the discussion about food education are topics that are very relevant to us. They were very valuable and something we need to learn about and have a voice in, as well. For Je Higgins, Savor Seasonings, SNAXPO opened new business contacts and opportunities, and he was also impressed with the educational program, including the session on the new food safety law presented by Martin J. Hahn, partner, Hogan Lovells US LLP and SFAs general counsel. That was outstanding and very forward-looking, giving us an idea of what we can expect from this new law, Mr. Higgins said. Business development and networking opportunities proved time well spent, as well. This show has o ered some good quality leads, some new prospects and some new applications that we may be able to go into, said Kevin Andrews, Taura Natural Ingredients. From that perspective, it has been very successful. We are trying to get ahead of this [healthy eating] trend. Doug Horn, A.C. Horn and Co., was pleased with his results at SNAXPO. Weve been able to see people we do business with, people weve done business with and people we want to do business with, he observed. It is an opportunity to enhance our relationships with the people with whom we work, and while this is not a large trade show, it is focused to our very viable industry. If we were to cease being involved with SFA, we would lose a lot of customers.

SNAXPOs educational sessions attract many industry executives seeking information.


www.sfa.org May 2012 Snack World 59

lawmakers should seek to accomplish what they can and to discover new ways to accommodate those with contrary views. Get what you can get done and live to fight another day, he said.

SAFETY ISSUES. Food safety and efforts to mitigate acrylamide were major topics of discussions during SNAXPO 2012. Martin J. Hahn, partner, Hogan Lovells US LLP and SFAs general counsel, urged industry

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executives to waste no time in complying with the provisions of the new Food Safety Modernization Act, now in the process of being implemented. While the Food and Drug Administration (FDA) has yet to implement key portions of the law, he said, the agency is more aggressive than in previous years with signi cant new authority regarding inspections, recalls and enforcement. Mr. Hahn cautioned that the agency could easily shut down a plants operation if there are questions regarding manufacturing process or product safety, adding that the burden of proof has been shifted to the manufacturer, which now must be able to document that its food processes are safe and in compliance with the law. Inspections will be much more frequent, Mr. Hahn warned, with every food manufacturing facility and warehouse inspected at least every ve years and the inspections much more detailed and intense than in the past. Moreover, if re-inspections are required, companies will be assessed a fee of $224 or $325 per hour for domestic and international plant inspections, respectively fees that could end up totaling upward of $20,000. Under President Obama, FDA inspections have drastically changed, Mr. Hahn said. I think they have sent FDA inspectors to mean school. There

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is an aggression and obstinacy that we have not seen in recent years. They will insist that they have the right to take pictures and access your records. This [food safety] act, Mr. Hahn said, is a game changer for the food industry. In another session, Mr. Hahn provided some insight into steps snack food companies should consider taking to reduce acrylamide levels in their products. Since acrylamide was rst detected in foods in 2002, SFA has been working with members and the industry to develop methods to achieve that goal. Although laboratory tests have shown that acrylamide causes cancer in laboratory animals, evidence regarding its impact on humans has been inconclusive. Nevertheless, several governmental initiatives are under way. SFA consultant Beth Johnson, RD, principal and founder of Food Directions LLC, noted that SFA has adopted a statement of principals, stating that the association and its members are working with the government to ensure that consumers can continue to trust the safety of snack foods, stressing that science leads our decisions. Methods to reduce acrylamide in snack foods continue to be explored, and processors are encouraged to share information and effective tools across the industry. Ms. Johnson outlined initiatives under way, including pending guidance from FDA and class action lawsuits led in California based on Proposition 65, which requires companies to notify consumers on packaging if food products contain agents that have been shown to cause cancer in either humans or animals.

Mr. Hahn advised companies to proactively develop plans to mitigate acrylamide levels in their products and lessen the likelihood Matt Colford (left), Old Dutch Foods, Inc., passes the SFA chairmans gavel to Scott Smith, Shearers Foods, Inc.

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nology to new snack products and ingredients that respond to increasing consumer concern about healthy eating, SNAXPOs 2012 exhibitors offered it all. Attendees could sample many new products in the popular Snack Tasting area. A lot of these snacks were lower in calories and sodium, gluten-free, trans-fat-free or cholesterol-free, or included such healthy ingredients as whole grains, seeds and nuts. Also featured were numerous snacks responding to consumers who like zesty, hot and spicy snacks. Shearers Foods offered its recently introduced Riceworks snacks in varieties such as Sea Salt, Sweet Chili, Parmesan and Sun Dried Tomato, and Salsa Fresca. Other companies with products on display included Better Made Snack Foods, Rudolph Foods, Northern Choice, ConAgra, Mike-sells, Herr Foods and Inventure Foods. Noting that the industry is responding to the aging populations increasing concern about health and wellness, as expressed in the State of the Industry Report, Better Mades Mike Schena said being aware of those concerns and responding to them is a key to future success for snack suppliers. Youve got to sell it with some kind of healthy infusion, said Mr. Schena, who attended his nal SNAXPO before retiring later this year. Thats why were looking around [at SNAXPO] for ingredients that can help us, like dried fruits, for example. Now were selling a lot of low-sodium chips that taste the same as the regular ones, and our customers love them. Todays consumer, he added, is much more aware of what they are eating than in previous years. sw

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New Snacks

LOW CALORIE CRACKER CHIPS Cheddar and Southwest Ranch are the newest additions to the lineup of Special K Cracker Chips from Kellogg Company, Battle Creek, MI. Described as light, crispy and perfectly seasoned, the crackers contain 110 Cal per 27-chip serving. A serving also contains up to 3 g fat with 0.5 g saturated fat, 3 g ber and 2 g protein. The chips retail in a 4-oz box, which contains approximately three and a half servings, for $3.89. www.specialk.com

SOFT COOKIES BY POPULAR DEMAND In response to requests from Facebook fans and consumers, Archway Bakeries Co., Charlotte, NC, unveils the Pecan Turtle cookie and reintroduces the previously retired Rocky Road cookie. A sweet and savory combination of milk chocolate chunks, caramel pieces and pecans, the Pecan Turtle cookie takes its inspiration from the popular candy. Rocky Road is a soft chocolate cookie lled with semisweet chocolate pieces, walnuts and marshmallow bits. Available nationwide, the cookies retail in 9.25- and 9-oz trays, respectively, for $3.19. www.archwaycookies.com

SPICY SWEET SIDE OF LIFE Oberto Sausage Co., Kent, WA, adds All Natural Spicy Sweet Beef Jerky to its Oh Boy! Oberto line of all-natural jerky snacks, which hit shelves last year. With Obertos signature slow-roasted smoky avor the jerky is accented with real chili pepper akes for an extra kick. The jerky contains no arti cial ingredients, preservatives or MSG. Now available nationwide, the jerky retails in 3.25-oz packages for $5.99. www.oberto.com

DRAMATIC ENTRANCE FOR LARGER CHIPS Frito-Lay North America, Plano, TX, supersizes its iconic Doritos brand with Doritos Jacked tortilla chips. Launched at the South by Southwest music conference and festival in Austin, TX, Doritos Jacked made its debut in a giant vending machine that doubled as a stage. Forty percent bigger and thicker than traditional Doritos, the Jacked big brothers are available nationwide in Enchilada Supreme and Smoky Chipotle BBQ avors. A 2.62-oz bag sells for $1.09, a 3.375-oz bag for $1.49, and a 10.5-oz bag for $4.29. www.doritos.com

WHOLE GRAIN SANDWICH CRACKERS Snyders-Lance, Inc., Charlotte, NC, joins the whole grain craze with three additions to its line of Lance Cracker Creations sandwich crackers. With 14 g whole grains per serving, Granola Lance Cracker Creations are available with either chocolate or peanut butter lling. Made with wheat, brown rice, oats, barley and rye, 5 Grain Peanut Butter Lance Cracker Creations deliver 5 g whole grains per serving. A box of six twin-packs retails for $3.29. www.lance.com

CHIPS MADE FOR DIPPING With a distinctive crisscrossed cut designed to hold dips in its crevices, Herrs Lattice Cut Kettle Chips from Herr Foods, Nottingham, PA, are thick-sliced and slow-cooked in small batches. The chips, sprinkled with sea salt, sell for $3.49 for an 8-oz bag or 99 for a 1.875-oz bag. www.herrs.com
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Products & Services


TWO STAGE LIQUID, DRY COATING SYSTEM Using a single system from Spray Dynamics, a Heat and Control company, manufacturers can uniformly apply liquid and dry seasonings to extruded, baked and fried snacks. A Soft Flight coating drum, Mircro-Meter1 airless liquid applicator and Uni-Spense dry ingredient distributor are pre-piped and wired and include operating controls. Snack processors can choose options to suit their products and process, including USDA dairy sanitary construction, an electrostatic applicator for powders, a loss-in-weight applicator for liquids and powders, and an Easy Pull spray bar mount (800) 227-5980 www.heatandcontrol.com PORK RIND PROCESSOR For 57 years, Rudolph Foods has been committed to making the best tasting pork rinds and salty snacks. Using Mary Rudolphs secret recipe, Rudolph Foods pork rinds are carbohydratefree, contain just 80 Cal per serving and score a zero on the glycemic index. Rudolph offers a wide variety of avors like Sweet BBQ, Salt and Vinegar, Spicy, and Original. (800) 241-7675 www.rudolphfoods.com snack food bags to create a new presentation for merchandising. The baler reduces packaging and shipping costs by allowing processors to t more bags per corrugated case. The Vantage groups four to 12 bags per bale at speeds up to 15 bales per minute. It features a color touch-screen display, an in-feed conveyor with variable-frequency drive, a servo bag elevator and inserter, a quickchange bale former assembly, and a self-positioning seam seal assembly. (770) 981-5200 www.kliklokwoodman.com LEGUME POWDERS, FLAKES SK Food International introduces non-GMO and certi edorganic precooked bean, pea and lentil powders and akes. Custommilled from various dry edible beans, peas and lentils, these precooked powders and akes offer a viable high-protein alternative to other ingredients that carry gluten and allergen risks. Applications include dips, chips, cereals, tortillas, snack foods, atbreads, baked foods and energy bars. (701) 356-4106 www.skfood.com

R&D CENTER Reading Bakery Systems Science & Innovation Center is a licensed food production facility for research and development. Here, snack manufacturers can conduct con dential trials on Readings process equipment, including batch or continuous mixing, sheeting, low-pressure extrusion, caustic cooking, and convective or radiant baking. Market samples can be produced for R&D evaluation or consumer testing. The center is a good way to ensure a successful manufacturing process and gain the con dence of all development team members. Contact Ken Zvoncheck for more information. (610) 678-5890 www.readingbakery.com

CO PACKAGING OPERATIONS Lifeline Foods, a supplier of milled dry corn and masa our products, provides co-packaging services for the snack industry. It adds value to its corn granulations using its blending, cooking and packaging operations. Snack companies can focus on future growth and sales opportunities, while Lifeline Foods manufactures and packages the companies products using their branded labels. Numerous retail and foodservice packaging sizes are available. (816) 279-1651 www.lifeline-foods.com

SNACK BAG BALER The Vantage multi-bag baler from Kliklok-Woodman bundles

SCALE PARTS WASHERS Developed in cooperation with manufacturers of multihead

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weighers, Scale Parts Washers from Douglas Machines ef ciently wash, rinse and sanitize weigh buckets, chutes and feeder pans in as little as 6 minutes. Specialized wash racks can be loaded at the weigh station and transported to the washer for easy cleaning and are available for all brands. The racks are designed to protect the parts during cleaning and extend their lifetime. (800) 331-6870 www.dougmac.com

growth of sweet potatoes as a menu item during the past five years, and sweet potatoes have made a popular entry into the chip category. Sweet potato snack pellets come in a variety of textures depending on shape, proprietary extrusion methods and the expansion process. (800) 544-8734 www.shortmill.com

TOTAL SEASONING SYSTEMS The new tna intelli- av OMS 3c from TNA North America applies both wet and dry seasonings and avors. The one-piece system enables even coverage at throughput rates of 220 to 1,100 lb per hour. In addition to dry seasonings, two high-precision continuous spray guns, equipped with a wide variety of nozzles for tailored seasoning, apply liquids, liquid avorings or slurries, and a closed-loop spray system ensures accuracy. The new 17- ight drum gently turns products without excessive lifting, preventing damage while ensuring all surfaces are exposed to the liquid spray. (972) 462-6500 www.tnasolutions.com SWEET POTATO PELLETS J.R. Shorts advancements in extrusion technology allow inclusion of new ingredients such as sweet potatoes, helping snack manufacturers address current and emerging consumer trends. Food service has seen steady

weigher two years ago for a snack industry show, the equipment manufacturer had no idea how well its product at this price would be received. As such, it has kept the weigher at that special price, but Ed Collins, president of the company, said, Dont let the price mislead you; its a high-quality weigher. It features a highprecision digital load cell and a color touch-screen control panel, which is able to store up to 200 preset programs. The weigher can be mounted directly above ELC baggers as well as most other bagging machines. (888) 322-9160 www.elcpackaging.com

CUSTOMER, R&D SUPPORT In addition to providing seasonings, spices and functional ingredients, Fuchs North America specializes in consumer research, product R&D and customer support. The company is driven by a few core principles such as, Always deliver the best value to customers, and, Attention to details always makes the difference. Fuchs looks at R&D as part science, part creativity, and it employs multidisciplinary product development teams to help snack manufacturers achieve the highest pinnacle of taste sensation, avor balance, texture and appearance. (800) 365-3229 www.fuchsna.com MULTIHEAD WEIGHERS When ELC Packaging Machine Co. put a special show price on its A10 10-head combination

CORN FLOUR Soulmaize Snacks introduced byMinsahelps snack manufacturers create new textures, shapes and flavors of snack foods. Minsa can design the flours and processes to meet the needs of snack companies whether making fried, extruded or baked snacks. Minsa specially designed masa flours all for the highest quality standards of texture, flavor, oil absorption and appearance. (800) 852-8291 www.minsa.com

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Ad Index
Douglas Machines Corp. ......................56
www.dougmac.com

ELC Packaging Machine Company, LTD................ ... 12-13


www.elcpackaging.com

Fuchs North America ..........................37


www.fuchsna.com

Heat and Control, Inc. .........................29


www.heatandcontrol.com

Kliklok-Woodman ................................59
www.kliklokwoodman.com

LifeLine Foods, LLC .............................61


www.lifeline-foods.com

Minsa Corp. .......................................21


www.minsa.com

Printpack Inc. .................................5, 25


www.printpack.com

Reading Bakery Systems .......................8


www.readingbakery.com

Rudolph Foods Co., Inc. .........................2


www.rudolphfoods.com

J.R. Short Milling Co...........................41


www.shortmill.com

Shick USA Corp. ...................................6


www.shickusa.com

SK Food International .........................62


www.skfood.com

Snack Food Association .......................45


www.sfa.org

TNA North America, Inc. .....................33


www.tnasolutions.com

1600 Wilson Blvd., Suite 650 Arlington, VA 22209 Phone: (703) 836-4500 (800) 628-1334 Fax: (703) 836-8262 Web: www.sfa.org E-mail: sfa@sfa.org

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TRENDS & TECHNOLOGIES FOR THE INDUSTRIAL BAKING MARKET WORLDWIDE


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