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News for professionals in the food business

Highlights

Euromonitor Says Snacks Need To Be More Nutritious To Address Snackification Trend

A Euromonitor report based on a global survey says although snackification is now well established, the demand from consumers for more nutritious snacks is relatively new but growing, especially among younger snackers. Largely because of the pandemic, the need to protect and boost the immune system is gaining greater attention, but Euromonitor says "mental wellbeing" has become the most important consideration. Over 60 percent of respondents cited this as an important aspect of being healthy. The immune system was next at just under 60 percent, followed by getting enough sleep. Euromonitor warns, however, that by leaning more on snacks risks consuming fewer essential nutrients than would be provided by a conventional diet and that any choice of smaller meals will need to offer the same nutrition profile as “classic meals”. Euromonitor also looked at the aspects of food and beverages shoppers were willing to pay more for. This was headed by “health and nutritional” properties, followed by “all natural” and “superior taste”.  

Kellogg Cereal Spinoff Aims To Focus First On Cereal Before Extending To New Categories

WK Kellogg’s CEO Gary Pilnick it wants to focus first on its core cereal business before looking to extend to other categories via M&A. It became an independent company following the spinoff five months ago. Pilnick says there are many elements to its cereal business that could be improved, including the supply chain, to lower costs and boost margins, and says the company is targeting consumption in dinner and snacking, as well as investing behind the six core brands and growing premium cereal. Earlier this year, it launched Eat Your Mouth Off, which contains 22g of protein and no sugar. Pilnick says there’s a need to change consumer perception of cereal, which is often low in fat and calories and offers nutrients like vitamin D and fiber, and it’s also affordable. TD Cowen analyst Robert Moskow, however, said last month that the company has challenges ahead, including downward volume pressure and competing with “better-capitalized competitors.” Moves into new categories look to be a few years away. Some Wall Street commentators have suggested that an established and more efficient WK Kellogg could be a target for private equity.

BFY Snacks Are Showing Healthy Growth

A lengthy article on the Institute of Food Technologists’ website looked at the alternative and better-for-you snacks market. Growth in alternative snacks is outpacing the snacks category as a whole and innovation is coming from existing snacks companies as well as startups. Mintel’s 2023 U.S. Salty Snacks Market Report said there was a substantial growth in consumers trying alternative salty snacks between 2021 (21 percent) and 2022 (28 percent). Startups have something of an advantage as they can align immediately with consumer preferences whereas established brands will have to retrofit and create new formulations. Sea salt is the top flavor in the North American BFY snacks category, according to data Innova Market Insights. Upcycling is a significant trend, with some brands using imperfect vegetables, which helps address food waste and also gives farmers additional income. Innova’s Lu Ann Williams said consumers often want snacks that improve mental and physical health and a third of consumers say the best approach is to restrict sugar or artificial ingredients in the products. US consumers view healthy products as those that contain protein, fiber and vitamins. “Gluten free” was the top BFY claim in North American snack launches in the year September 2023, with “no additives/preservatives,” “high/source of protein,” “organic” and “high/source of fiber” following. Bean-based snacks were the fastest-growing by far in North American BFY snacks during the period. Plant-based is the most important source of protein, but animal-based protein in snacks is also growing. 

DuelFuel Reacts Against “Counter-Intuitive” VAT Ruling

DuelFuel in the UK, which produces ‘performance flapjacks’, said it was forced to sell its products as confectionery because they include health ingredients, and this meant they had to apply 20% VAT to the price. Cakes, instead, are deemed staple foods and are therefore zero-rated for VAT. Founder Tim Davies has for two years been fighting a legal battle with HM Revenue and Customs on the issue and filed an appeal against HMRC’s decision with the First Tier Tax Chamber in April 2022. The Tribunal recently upheld HMRC’s ruling that DuelFuel’s products are not cakes. Davies said that a lot of market research shows consumers want nutritional benefits and expect baked goods to be healthier. Davies warned that any food product containing protein to replace less healthy options could be considered as appealing to “sports enthusiasts, and not mainstream consumers—and therefore taxed accordingly", adding that “to render healthier foods more expensive (through the application of VAT) than their conventional counterparts would be completely counterintuitive.”

Comment & Opinion

Snack Sales At C-Stores Continue To Climb, But Shoppers Want More For Their Buck

Consumer research company Circana says the salty snack category at US convenience stores reached over $8 billion in 2023, up 14 percent. Units were up 3.2 percent indicating that consumers continue to buy snacks even as prices continue to rise. However, the mix is changing with increasing numbers demanding more from their snacks in terms of innovation, health benefits, taste and protein content. Mintel says that 23 percent of US chip consumers want more limited-edition seasonal variants and that a third believe functional snacks are worth higher prices. Still, almost three-quarters do not want to sacrifice taste and over half say protein is the most important nutritional ingredient. Tom Tucker of EZ Stop, which runs 25 c-stores, says consumers are switching from take-home bags to on-the-go bags. 

Companies, Organizations

Indian Snacks Brand Pivots Away From BFY Towards Taste

India-based healthy snacks producer Too Yumm! is seemingly swimming against the tide by shifting from healthy snacking to a greater focus on taste, to appeal more to Gen Z. It launched Bhoot Chips and Twisties, both of which are spicy. Too Yumm! believes it’s not been able to engage as well it can with Gen Z because a more healthy snacks profile appeals more to older audiences. BHOOT Chips is a collaboration with Indian hot sauce brand Naagin and Twisties is an extra spicy snack that looks like a strand of DNA. The brand advertises during the Indian Premier League cricket series and will continue to do so even though the brand sees wallet share decline as competition from beverages and ice cream intensifies during the competition. TooYumm! is also targeting school kids and is collaborating with Marvel on a new line of snacks, for which taste is important but so is playfulness. 

UK YouTube Group Hits 100,000 Sales Of BFY Cereal In Two Weeks

British YouTube group The Sidemen have sold over 100,000 boxes of Best cereal in the first two weeks after launch. Best is positioned as prioritizing healthier options and ingredients and is produced by UK company Mornflake. A significant share of profits is to be donated to the charity Magic Breakfasts, which provides breakfasts to children in need. The cereal is available at chains including Tesco. The Sidemen have a track record of successful launches, including XIX Vodka and a fried chicken concept called Sides. 

California Bill Seeks To Ban Certain Food Dyes In School Food

Several popular snacks could be banned from schools in California under a bill introduced in the state’s assembly. It aims to ban from schools food containing artificial ingredients such as red 40, blue 1 and titanium dioxide. Some Cheetos varieties, including Flamin' Hot, as well as Doritos, use red 40, yellow 5 and yellow 6. Cereals including Froot Loops and Fruity Pebbles include them too. The bill, if enacted, would ban schools from providing or selling foods with blue 1, blue 2, green 3, red 40, titanium dioxide, yellow 5 and yellow 6. These ingredients have been linked to several health issues including cancer, hyperactivity, neurobehavioral issues and DNA damage. 

Mondelēz Study Shows Mindfulness Is A Key Snacking Trend

Mondelēz International's fifth annual State of Snacking™ report highlights global consumer trends in the snacking category. There are several insights that relate to healthier snacking. In an introductory message to the report, Chairman and CEO Dirk Van de Put said consumers continue to use snacking to provide fuel but also to help them enjoy their ‘me time’ as well as when sharing time with friends and family. Snacking is also being used increasingly to replace large meals, and consumers are shifting towards more mindful snacking, seeking a better balance between satisfaction on the one hand and nutrition and health on the other. The report found that consumers consume snacks to meet perceived needs: 75 percent use them to boost energy, and almost as many for improving their mood or for meeting fitness goals. 85 percent say they regularly take time to savor the taste, flavor and texture of the snack, and enjoy it more when they do so.

Legendary Foods Exhibits Its Protein Chips At Natural Products Expo West

Santa Monica-based Legendary Foods, which produces high protein snacks, showcased its Popped Protein Chips at Natural Products Expo West. They contain 20g of protein and 4-6g net carbs, no more than 2g of sugar and 150 calories per serving. Ranch, Nacho Cheese, Barbecue flavors have recently been joined by Pizza flavor and can be purchased at Target, Walmart, Vitamin Shoppe, HEB and GNC.

Our Home Is Exhibiting Several Recent Launches At Natural Products Expo West

Our Home, a better-for-you snack company, is showcasing its latest offerings at Natural Products Expo West. They include Popchips Nacho, containing half the fat of fried chip rivals. They are vegan, gluten-free and Non-GMO Project Verified. Plant-based snack brand YOU NEED THIS is adding two new flavors - Hot Cheddar and Zesty Ranch Fries. They are also gluten-free, vegan and Non-GMO Project Verified. Food Should Taste Good is showing Multigrain and Sweet Potato Tortilla Chips, and Good Health is displaying veggie straws, potato chips, gluten-free pretzels and puffed snacks. Deb Holt, Our Home’s CMO, said: "Each new product from Popchips, YOU NEED THIS, and Real Food From the Ground Up was created after diving deep into consumer preferences.”

Properchips Get a New Tasty Chickpea Line

Proper Snacks has introduced a new line of Properchips, based on chickpeas, in three new flavors: Ghost Chilli & Yuzu, Jerk Sauce and Katsu Curry. The brand says its research emphasizes the role of taste when consumers choose better-for-you snacks. Each serving of the new HFSS-compliant products contains less than 100kcal, and they are vegan, gluten-free and seasoned using natural ingredients. They are now available in Asda in sharing bags, with an April rollout planned to Waitrose, Ocado and Sainsbury’s. Grab bags will be available from May.

SnackCraft Invests Further In West Michigan Snack Production Facility

SnackCraft LLC, a subsidiary of Unismack S.A. in Greece, is investing almost $30 million in its manufacturing facility in West Michigan, adding 186,000 square feet. It comes a year after the plant opened. SnackCraft’s snacks are gluten-free and allergen-controlled, baked rather than fried. They include crackers, tortilla chips, pellet snacks, and baked extruded snacks. Ingredients include lentil, chickpea and other vegetable flours, whole-grain corn and seeds. 

Eat Real Chips Rebrand Highlights BFY Credentials

UK-based Eat Real, which manufactures healthier chips, has rebranded and added new flavor pairings including Lemon and Chilli, Tomato and Basil, and Mango and Mint. They are initially available in Waitrose and Asda, across the brand’s range of Lentil, Quinoa, Hummus Chip and Veggie Straw ranges. Sainsbury’s, Ocado, the Co-op and other retailers will start selling the new packs from April. New multipack options are also included in the rebrand, which seeks to emphasize the brand’s better-for-you features such as being plant-based and gluten-free, and free from artificial colors, flavours and ingredients. The Hummus and Lentil lines contain 30 percent less fat than regular potato chips.

KP Invests Behind Driving Awareness Of Non-HFSS Hula Hoops Puft Snacks

Hula Hoops Puft snacks from KP Snacks will benefit from a new campaign regionally in out-of-Home, digital out-of-home and social media from July this year, to drive awareness of its non-HFSS products. It will continue the line’s “Hula Licious Hula Lightful” messaging, which highlights that the product contains just 72 calories per pack. Hula Hoops Puft come in 6-packs in Grilled Beef, Salted and Cheese & Onion.

Consumers

BFY Is A Fine Ambition, But Don’t Neglect Taste And Indulgence

Kathy Risch from Acosta Group, a sales and marketing services company, outlined consumer shifts affecting candy and snack categories. Although growth in recent times has largely been price driven, volume growth has also been evident in some segments, including potato chips, driven by the need for comfort food. Taste remains paramount in shopper choices with lower sugar or calories important for a relatively small share of consumers. Consumers would choose better-for-you snacks more often only if taste was delivered too. Half of snackers say they prefer BFY snacks, but half prefer “junk food.” Over two-thirds of convenience store visitors are buying salty snacks once or more a week. Risch suggested that brands should add options with BFY profiles, such as natural and organic, but only if taste and indulgence is retained.

Legal, Legislation, Regulation, Policy

Scotland’s HFSS Rules Could Bite Deeper Than Those In England

Scotland’s devolved government intends to limit the sale of HFSS foods by imposing new rules on price promotions and meal deals. The current consultation phase will close in May this year. Smaller retailers would be exempt. Foods likely to be impacted include savory snacks, such as crisps and popcorn, breakfast cereals and confectionery. The plans have received some pushback. Pete Cheema from The Scottish Grocers’ Federation says the rules would be an “additional burden on struggling stores” and suggested raising the exemption threshold from stores of 2,000 square feet to 3,000 square feet. The Association of Convenience Stores is also calling for a rethink and to more closely align plans with those of the UK as a whole. ACS CEO James Lowman said the organization was “disappointed that the Scottish government plans to go even further with restrictions on HFSS products in stores than the rules that are already in place in England”. 

Market News

Pretzel Perfection Files For Bankruptcy

Better-for-you pretzel snack company Pretzel Perfection, or Perfection Snacks, has filed for bankruptcy in the Philadelphia Bankruptcy Court after it failed to secure funding required to fulfil orders. Founded in 2008, Pretzel Perfection produced and sold gluten free pretzels and snack mixes and secured distribution in 2017 on Delta Airlines flights. Annual revenues reached $16 million. It has listed around $37,000 in assets but over $11.1 million. 

Marketing & Advertising

Taylors Snacks Showcases Its Lentil Waves Range

Scottish snack brand Taylors Snacks, formerly Mackie’s, is promoting its healthier range called Lentil Waves. Greg Smith, head of marketing, highlighted growth in the better-for-you market and HFSS-compliant products. Lentil Waves are air-popped, vegan-friendly and contain 60 percent less fat than other lentil snacks. There are three flavors: Sea Salt & Vinegar, Thai Red Curry and Barbecue. A new flavor, Sour Cream & Onion, is arriving later this year.

YouTubers The Sidemen Launch BFY Breakfast Cereal

The Sidemen, a British YouTube collective, is debuting Best Cereal, a better-for-you cereal line with two HFSS-compliant variants: Choco Crunch and Caramel Gold. Both contain wheat and oat puffs, and are fortified with vitamins B12, D and E. They have asked British teenage darts star Luke ‘The Nuke’ Littler to help promote the products in a social ad. An out-of-home campaign will cover major English cities and there will be a radio campaign too. Joshua Bradley, or Zerkaa, from the Sidemen, said the brand aims to provide the “best possible breakfast product we can create. Directly supporting charities and providing a tasty product that is a healthier option for kids and adults to enjoy.” It will donate a proportion of its profits to Magic Breakfast, a UK-based charity that aims to provide children with a filling breakfast. BEST has secured distribution with Tesco.

Products & Brands

Growers Garden Launches Broccoli Crisps In Morrisons In Scotland

Growers Garden, a snacks brand based in Fife, Scotland, is now selling its broccoli crisps in UK supermarket chain Morrisons in Scotland. Using “wonky” broccoli that would normally be discarded, Growers Garden turns the vegetables into a fine paste, adds corn, potato, peas, spinach and salt, and then extrudes the snacks into thin sheets that pass under a roller before cutting to shape and fried. The crisps have about half the fat of potato crisps and offer a healthy option for people that still want to eat a salty snack. Flavors include Original, where the broccoli flavor is stronger, sour cream and chive, which is the best seller, chilli and cheese, which is popular with the kids. The brand also launched in Co-op stores in England and further rollout is planned for later this year.

New Smaller Format For Tyrrells Lentil Crisps Now Available For Healthier Snacking

Tyrrells Lentil Crisps from KP Snacks now also come in a single format aimed at healthier snacking. Sour Cream & Onion and Sweet Chilli & Red Pepper can be purchased in the new 24g single format at an RRP of £1. Tyrells says these new non-HFSS crisp packs help retailers address the expanding popularity of healthy snacking, a category that is growing ahead of the overall crisps, snacks and nuts category. The launch will come with an out-of-home and social media campaign.

Jackson’s Unveils Wavy Cut Sweet Potato Chips

Jackson's has announced new Wavy Cut Sweet Potato Chips, kettle cooked in avocado oil. They contain three ingredient elements - heirloom sweet potatoes, premium avocado oil and seasonings – and come in two flavors: classic Sea Salt and dairy-free Cheddar & Sour Cream. Along with the brand’s other snacks, they are non-GMO verified and free from the top nine allergens. They can be consumed by those choosing vegan, paleo-friendly, kosher and low inflammation diets. Jackson’s received a $1.25 million investment after a Shark Tank appearance and can be found in national chains including Costco, Whole Foods, Sprouts and Kroger, as well as CVS, 7-Eleven and Circle K.

Utz Brands Uses Natural Products Expo West To Showcase And Sample New Products

Showcasing two of its better-for-you snack brands, Utz brands has taken Boulder Canyon and TORTIYAHS to Natural Products Expo West. It is debuting Canyon Poppers, Boulder Canyon’s first extension beyond chips. Canyon Poppers are a light and crispy, puffed snack in two flavors, Aged White Cheddar and Jalapeño Ranch. They are made using avocado oil, are certified gluten-free and contain Non-GMO Project Verified ingredients. Boulder Canyon is also sampling a limited-time-only product, Boulder Batch Grillo’s Classic Dill Pickle Flavored Kettle Style Potato Chip, which is the result of a collaboration with Grillo’s Pickles. TORTIYAHS! is sampling its Spicy Green Chili, Jalapeño Ranch and Nacho flavored tortilla chips, which are certified gluten-free, contain at least 20g of whole grains per serving and made with Non-GMO Project Verified ingredients. 

Superseed Oatmeal Is A New High-Protein Breakfast Option From Manitoba Harvest

Hemp-based food manufacturer Manitoba Harvest, a subsidiary of Tilray Brands, has launched a new plant-based breakfast option, instant Superseed Oatmeal in three flavors: Original, Maple & Brown Sugar and Apple & Cinnamon. Each 1.8oz. serving contains 10g of protein, 8g of Omegas 3 & 6 and 4g of fiber. They are vegan, kosher and Certified Non-GMO. 

Harvest Snaps Selects Get A Rebrand And Refresh

Calbee’s Selects, the puffed navy bean snack, have a new name and look. Harvest Snaps Crunchy Puffs now come in three variants: Honey Dijon, Loaded Taco, with taco seasoning, cheddar cheese and sour cream, and White Cheddar Jalapeno. The puffs are baked and contain 4g of plant protein and 3g of fiber in each serving. New packaging includes callouts highlighting that the puffs are certified gluten-free. Priced at $4.99 for a 4.2oz. bag, they are available at retailers nationwide. 

FITZELS Are New Protein-Packed Pretzels From Lenny & Larry’s

Lenny & Larry's, founded three decades ago by two body-builders, is a snack brand that focuses on protein with a range of snacks such as bars and pretzels. All are certified vegan, and Non-GMO Project Verified, and have no soy, high fructose corn syrup, artificial sweeteners or sugar alcohols. It’s launching FITZELS™, plant-based protein pretzels with 18g of protein in each 3oz. serving. They can be purchased on Amazon and Walmart.com. There are three flavors: Pizza Palooza, with tomato, basil, and a hint of cheese; Boujie Mustard, with a peppery mustard seasoning; and Everything Bagel. 

Snack’in For You To Launch BFT Veggie Puffs

Sigma Foods’ Snack’in For You brand is debuting its better-for-you vegetable-based, high-protein, gluten-free, baked puffs at the Natural Products Expo West tradeshow in March. They come in several flavors: Sour Cream and Onion Cauliflower, Buffalo Ranch Cauliflower, Mesquite Barbeque Broccoli and Cheddar Jalapeno Broccoli. They contain four base ingredients - cauliflower or broccoli, rice flour, chickpeas and pea protein – and 4g of protein in each serving. The puffs will be in 2g and 4g bags at retailers and online later in 2024.

AI Is Helping Rivalz Develop BFY Products

Nutrient-dense snack brand Rivalz is expanding following a seed funding round that secured over $6 million. It is launching Rivalz Stuffed Snacks, containing 8g of plant-based protein, 4g of fiber and 9 net carbs per serving. CEO Peter Barrick, said “drawing inspiration from my time as a Marine Officer in lesser developed countries worldwide where food insecurity was rampant, we have the ability to roll back global pandemics of malnutrition, diabetes and obesity with every Rivalz bag sold.” Rivalz is using AI to help it develop “nutritious snacks that can make a real impact”. Stuffed Snacks are oven-baked and contain pea and brown rice, and AI helped Rivalz develop the product in just six months. They come in three flavors - Late Night Pizza, Extra Chedda’ Mac and Spicy Street Taco. All are vegan and non-GMO and free from gluten and soy.

Snacks From The Sea Launches Kelpie Chips

Snacks From The Sea has launched Kelpie Chips, highlighting the brand’s commitment to healthy snacks and sustainability. Made from sea kelp, they come in flavors Zesty Pizza, Chipotle, and Salt & Pepper. Sea kelp is known for its essential minerals such as magnesium, selenium and calcium, and is seen as a rapidly renewable resource. The chips are flavored with all-natural seasonings and contain fucoidan, a nutrient with health benefit claims such as promotion of the thyroid function, hormone regulation and digestive health support. 

Research, Studies, Advice

Researchers Claim To Have Found How To Produce Healthier Potato Chips

Researchers from Michigan State University may have found the holy grail for salty snacks producers – a way to make potato chips healthier. They have found how the gene that impels potatoes to convert starch into sugar when stored in cold conditions. The process of sweetening in cold storage helps form acrylamide, which is considered carcinogenic and produced when cooked at a high temperature. Identifying the gene responsible for cold-induced sweetening could help develop potatoes naturally resistant to CIS. 

Trends

UK Wholesaler Sees Strong Growth In Healthy Snacking

A study conducted by Epicurium, a healthy snacks wholesaler in the UK, found that consumers are becoming increasingly attentive about the health and nutrition profile of the snacks they are eating. Epicurium’s sales data supports this view: ‘healthy snack’ sales were up almost 40 percent last year and are up 4 percent this year on the same period in 2023. Marketing manager Richard Jefferson says “brands are investing in new launches, and ‘better for you’ variations, to offer a greater range of healthy snacks, meaning cultivating that holistic, exciting, and varied healthy snacking range has never been easier.”
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