BY DARREN CLIMANS
Getting the chills
Are you ready for the next big thing in snacking?
I
t’s an understatement to say that life, such as it is, has become extra challenging. Small indulgences have played an outsized role in keeping us all going. Global snack manufacturer Mondelēz noted in its 2020 Annual Review that “snacking has increased sharply in developed markets since the outbreak of the coronavirus.” Mondelēz has seen increases in all segments, but sales of cookies have led the way. Production of Oreos in North America increased by 30% in 2020. According to Martin Parent, president of Mondelēz Canada, after an initial spike in snacking consumption of over 50% during COVID lockdown, consumption is “still 30% higher today than where it was in 2019.”
A better mousetrap
Paradoxically, these near-term gains may be masking a phase shift in snacking
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habits. The pandemic has confirmed two truths: change really is the only constant; and disruptions happen whether we’re prepared or not. Rather than following the crowd and trying to sell more of the same, now may be exactly the right time to reconsider your snack offerings. The zeitgeist on the cusp of upending the snacking market is a migration from ambient to refrigerated/chilled snacks. Mintel, a global market intelligence agency, picked up on ‘fresh’ snacking early. Fresh was defined as “clean label, free of additives/preservatives, and typically as either refrigerated products or those found in the produce section.” According to data cited by Mintel, emergence of the fresh-snacking market can be traced back over 15 years, but “began accelerating in 2008, with the percentage of new, fresh-snacking product launches in the U.S. increasing by about four times, between 2008 and 2017.”
JANUARY / FEBRUARY 2022
Research identified six packaged product segments to most clearly define the fresh snacking category: refrigerated protein bars, protein snack packs, drinkable soups, bottled smoothies, yogurts, and other products, such as hummus and guacamole.
Getting on board
Millennial and Gen Z consumers consider fresh snacks to be cooler because they marry indulgence, first and foremost, with perceived better-for-you (BFY) product attributes. Powerhouse snack-maker Nestlé has just launched its own line of refrigerated chocolate-covered nut butters to compete in this space. Nestlé introduced Rallies Nut Butter Bombs to target a segment they call “Slumpers”—consumers looking for BFY indulgent treats to “rally them from a dip in blood sugar, stress, overwork, (or) boredom.” This is not a small group. A recent study by The Hartman Group in the U.S. found that “74% of consumers surveyed (mentioned) ‘treating oneself’ as their main source of comfort to combat hitting the proverbial wall during the day.” Rallies will be launched at major retail grocers in 2022. Soon after, Nestlé anticipates entering the convenience channel, partnering with progressive c-store operators motivated to clear beverage cooler space to make room for on-trend chilled items designed to match desired eating occasions. There are already a myriad of new products on offer, both chilled and frozen (Exhibit 1). They are typically nutrient-dense, and have clean ingredient decks dominated by fruits, veggies, plant-based proteins and probiotics. Montreal-based start-up Mid-Day Squares’ functional chocolate protein bars jumped on board in 2018, with their initial product, Fudge Yah bar. All Mid-Day Squares products are vegan, gluten-free, soy-free, non-GMO, 100% organic and do not contain preservatives or artificial additives. Less than two years after launch, the company had sold more than 1 million bars and had product listings with Metro, Sobeys, IGA, and hundreds of independent retailers in Canada and the U.S.
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