VIBE SIZED

Big profits come in small packages.

Morrison shared that he recently spoke with a large chain retailer based in the Midwest who told him that they have traded a lot of e-cigarette backbar space over the last two years in favor of modern nicotine pouches like Zyn, on! and Rogue products. “As it is these products that drive considerable polyuse occasions, it is important to stock the full array of pouch options,” he advised.

Reynolds’ Wilson echoes that to meet the demands of the polyuser, c-stores should strive for a more robust nicotine portfolio from reputable manufacturers.

“Incorporating next-generation products into your backbar provides consumers the option to explore new ways to enjoy nicotine,” he said.

But beyond being in-stock with the right items, driving awareness is crucial for any emerging category with relatively low awareness and share, as many alternative tobacco products are.

Stuart outlined three ways c-stores can drive awareness, starting with signage of noncombustible products, both at the storefront and the backbar.

Promoting noncombustible products is a top suggestion, too. “I recall a c-store a few months back running a three-for-one on Zyns; this is a fantastic way to stimulate interest,” he noted.

The third way retailers can drive awareness is to maximize their facings for products that are on-trend and tailor their assortment to fit the latest trends.

“The optimal way to assess section adjacencies in tobacco is an integrated ‘Logic Lens’ approach that Cadent employs. This involves understanding what shoppers say, assessing what shoppers do through purchase interaction analysis, and quantifying how retailers perform with different sets,” Stuart explained. “Given the importance of tobacco for c-store retailers, we recommend that the major chains conduct this type of analysis to optimize sales and profitability for total tobacco.”

Employee education and interaction also come into play if retailers want to adequately satisfy the needs of polyusage customers. “The connection between store staff and guest is a bond born out of frequency,” Hanson relayed. “Convenience stores can leverage the relationship between adult consumers and their staff by providing staff with education and offering consumers products at a value that encourages them to try a product that is different from their everyday form, flavor or brand.”

Hanson recognizes that marketing these days is typically handled by the manufacturers. “Given the churn of staffing at the retail level, ensuring employees are adequately informed about newer products is one of the greatest challenges of the day,” he said, recommending that retailers strive to be a conduit of new product education nonetheless — what the new products are, what the product features are and why adult tobacco consumers should consider them.

Evolving Regulation

Perhaps the most important advice for a retailer seeking to satisfy polyusers is to only deal with alternative nicotine manufacturers that are playing for the long-term.

“I would make sure I was dealing only with reputable companies that have submitted PMTAs and credible ones backed with scientific data,” advised Bryan Haynes, a partner specializing in tobacco at the national law firm of Troutman Pepper.

He acknowledges that the Food and Drug Administration (FDA) could be more helpful to the industry if the agency was more transparent around this topic. Nevertheless, it behooves retailers to question the companies they deal with regarding their PMTA status.

Despite continually evolving efforts to limit adult consumer choice and options through regulatory means, tobacco consumers still opt to enjoy nicotine. From a harm reduction perspective, polyusage can potentially be a good thing, but these products are still in the early stages and research on their health impact is lacking.

“From a retailer perspective, it is important to stay current on the regulatory environment surrounding the products on shelf. The last thing a retailer wants is to be blindsided should one of the lines fall victim to the latest regulation,” Morrison cautioned. “Modern nicotine products are an exciting opportunity, but from both a harm reduction and a sales perspective, the market is still very young and retailers need to be careful as regulations evolve.”

Hanson believes it is incumbent on the manufacturer community and the regulatory bodies to understand the new polyuser, and for the regulatory bodies to allow products along a continuum of risk for legal-age nicotine users.

“Closing markets to new products and limiting choices forces consumers to use and rely on traditional products,” he reasoned. “New vapor, new modern oral and new functional use products show that legal-age consumers want options that offer different ways to consume tobacco/nicotine. More collaboration is needed between legislative bodies and manufacturers that allow for products that will satisfy adult consumer demand in a responsible manner.” CSN

Buzzword: Innovation

The convenience channel is well positioned to meet the candy and snack needs of consumers, no matter their preferences

By Danielle Romano

NOW LIVING in a post-pandemic world, consumers are back to their daily routines and part of that routine is snacking. Today, snacking is a lifestyle in the United States, as the younger generations fuel sales potential with an uptick in consumption of three-plus snacks per day. And while the nation’s economic situation is impacting what snacks and sizes consumers are buying, many categories continue to be inelastic.

This is good news for convenience store operators, who are well positioned to succeed in today’s snacking boom. In fact, during the opening session of the recently held 2023 Sweets & Snacks Expo, Sally Lyons Wyatt, executive vice president and practice leader at Chicagobased Circana, referred to the convenience channel as a “snacking superstar.”

While consumers are spending across all retailers, the c-store channel posted one of the largest increases in dollar sales growth year over year from 2021 to 2022 at 11.9 percent, Circana research found. Lyons Wyatt attributes this growth to the convenience channel’s “halo effect,” through which consumers are drawn into c-stores for their foodservice offerings, but then make additional snack purchases because operators have snack sizes with entry price points that resonate with buyers, she explained.

So, what should c-store operators consider stocking in their stores in the near future? Some of the top trends on display at the 2023 Sweets & Snacks Expo included:

Nonchocolate Candy

Gains Momentum

Consumers think of nonchocolate candy as being a fun treat to enjoy or share with others. Consumption is as much tied to everyday treating as it is to special occasions, according to Anne-Marie Roerink, principal at 210 Analytics LLC, headquartered in San Antonio.

Gummies, chewy and hard candy have the highest cross-population engagement, but most consumers purchase across several different segments.

“Variety is our superpower: people who consume candy more often tend to buy a wider range of candies,” Roerink said.

With segment growth being driven predominantly by Generation Z and millennials, nonchocolate candy sales are expected to reach $20 billion by 2027.

Classic fruity flavors are the top preference at 50 percent, although younger shoppers are more likely to prefer unique flavors. “In gummies, 46 percent of Americans equally like both sweet and sour flavors, whereas 43 percent prefer sweet. The sour preference is much higher among Gen Z and millennials,” Roerink revealed.

In an effort to appeal to consumers of all ages no matter their candy preference, Morinaga America Inc., the official distributor of nonchocolate chewy candy HI-CHEW, is launching HI-SOFT, a rich and creamy salted caramel chew that provides consumers with a decadent snacking experience, according to the company. HI-SOFT debuts on the heels of HI-CHEW Bites, which are unwrapped chewlets in bite-size packaging.

"Newstalgia" Takes Hold

If anything comforted consumers during the COVID-19 pandemic, it was familiarity, which had them reaching for candy and snacks that provide a sense of nostalgia. Fast forward to today and consumers still want more of their favorite classic treats, except they want them amped up. Thus, suppliers are offering fresh and innovative twists on items consumers already know and love, combining the comfort of familiarity with the excitement of something new.

Nassau Candy, headquartered in Hicksville, N.Y., aims to bring back candy stix in a big way with the launch of Clever Candy Straws. While the candy powder might look the same, the flavor in Clever Candy Straws is more intense, offering an entirely new experience, according to the maker.

“Newstalgia — new takes on a candy classic — is such a popular trend in the confectionery space right now, we wanted to develop a product that brought new attention to a longtime candy favorite for a new generation,” said Andrew Reitman, executive vice president, national brand confections for Nassau Candy. “Our new Clever Candy Straws line offers all the fun customers remember from classic candy stix like Pixie Stix, but with even more intense flavors to tickle their taste buds.”

Also combining consumers’ desire for something new yet nostalgic, Kellogg’s will be rolling out Rice Krispies Treats Homestyle Original Bars to the convenience channel in 2024. The bars deliver bakery-inspired, handcrafted taste and are 50 percent bigger than the brand’s original bar.

“These bars remind me of when I was a kid in the kitchen making Rice Krispies Treats with my grandmother,” Jessica Watson, director of portfolio marketing, snacking for Kellogg’s, told Convenience Store News.

Brand Collaborations on the Rise Cross-brand collaborations are playing a bigger role in the confectionery and snack industries as companies look to partner with compatible brands and build consumer engagement and excitement, while capitalizing on each other’s segments.

Aiming to bring bold flavor into new forms, Conagra Brands Inc.’s DAVID Seeds is kicking up the heat with the arrival of DAVID Frank’s RedHot Jumbo Sunflower Seeds. Every bag combines DAVID’s iconic sunflower seeds with the bold taste of Frank’s RedHot.

Meanwhile, Conagra’s Slim Jim brand has partnered with SONIC, a registered trademark of America’s Drive-In Brand Properties LLC, for the new SONIC Chili Cheese Coney Monster Stick.

The meat snacks segment is also heating up with a new brand collaboration and product mashups from Jack Link’s and Frito-Lay North America. Jack Link’s Doritos Spicy Sweet Chili and Flamin’ Hot flavored original beef jerky and meat sticks are hitting the market.

Better-For-You Continues to Grow

Nearly two-thirds of Americans are looking for better-for-you (BFY) options, yet the BFY segment is underdeveloped compared to other center-store categories, according to The Hershey Co.

While BFY confections have seen accelerated growth for four out of the past five years, there is still more room to grow. And Nathan Johnson, director of better-for-you marketing for The Hershey Co., says the good news for retailers is that all shoppers of BFY confections also purchase conventional confections; there is no exclusivity.

“Shoppers who are buying better-for-you are also buying a variety of other brands, both within confection and across snacking sectors,” Johnson said.

To tap into the dietary lifestyles of consumers who seek to bond physical and emotional wellbeing, Hershey unveiled a variety of products at the recent Sweets & Snacks Expo. Lily’s, a premium BFY brand under The Hershey Co. umbrella, unveiled Lily’s Watermelon Slices and Lily’s Peach Rings.

Recognizing the market opportunity surrounding vegan chocolate, Hershey also launched two plant-based confections: Hershey’s Plant Based Extra Creamy with Almonds and Sea Salt, and Reese’s Plant Based Peanut Butter Cups.

Additionally, as more consumers look to add protein to their diets, the ONE brand (already known for its protein bars) announced plans for protein-packed ONE Puffs in cheddar and spicy nacho flavors, and FULFIL bars will launch its newest flavor, Triple Chocolate.

The 2023 Sweets & Snacks Expo, hosted by the National Confectioners Association, took place at Chicago’s McCormick Place from May 22-25. The annual expo brings together confectionery and snack retailers, manufacturers, brokers and suppliers to showcase the latest product innovations, merchandising ideas and supply-side solutions. Nearly 18,000 people registered for the 2023 Sweets & Snacks Expo, with more than 800 exhibitors on the show floor.

2023 marked the final time the show will take place at McCormick Place. Beginning in 2024, the Sweets & Snacks Expo will cycle through a rotation of two years in Indianapolis followed by one year in Las Vegas until 2032. CSN