Chipping away at sales

The heat is on in the snack food aisle. “A lot of growth in the category is coming from more flavorful offerings, particularly in the chip category,” said Chris Clark, a spokesman for the Snack Food Association. “Manufacturers have been expanding their offerings in the area so that one manufacturer has not just one, but ten barbecue chip flavors.”

In a meeting with shareholders, John Compton, CEO of PepsiCo’s Americas Foods division, said the company’s single-serve business is being driven by new flavors, particularly the Tapatio hot sauce line of Doritos, Lays, Cheetos and Ruffles products launched in April.

ConAgra also added spice with its Slim Jim Zesty Garlic and Jamaican Jerk flavors; Buffalo Style Ranch and Hot & Spicy varieties of David Seeds; and Andy Capps BBQ Fries. “All of our new products reflect this trend toward more intense flavors,” said David Palfenier, president of ConAgra Foods snacks division.

Asians and Hispanics have been buying more salty snacks during the past year, according to a recent report on the category from Mintel International. That trend has made flavors that once seemed exotic, such as Chipotle and Thai curry, to become mainstream.

The article above is part of the DSN Category Review Series. For the complete Snacks Buy-In Report, including extensive charts, data and more analysis, click here.