Convenience stores have long been a prime destination for single-serve or impulse snacks, requiring little more than assortment and merchandising updates to keep the category strong. As snacking occasions have increased, retailers need to explore ways to expand these emerging sections. The key, according to industry experts, is to take a balanced approach and stay open to creative solutions.
“With many people grazing—eating smaller meals to get fewer calories—they are eating more meals and less during the meals,” said Darren Tristano, executive vice president for Chicago-based research firm Technomic. “We have seen a shift toward more snack bars and drinks as meal replacements in both foodservice and retail segments. C-stores are doing a lot more grab and go, but now restaurants and QSRs are viewing snacks as a way to drive future occasions, not just current ones.”
In fact, four out of 10 consumers (39%) said they are snacking on healthier items more frequently in the past two years, according to Technomic data. For a c-store, finding the right mix of traditional and healthy snacks is vital, especially as more consumers seek this balance based on their mood or the occasion, said Andy Batt, vice president of merchandising, candy and snack categories, for Naperville, Ill.-based c-store distributor Eby-Brown.
“The goal should be to offer both, and make sure consumers are aware,” he said. Stores may be able to attract a different type of consumer than their usual demographic. “While a Whole Foods shopper might not think to shop a c-store for snacks, they do buy gas, and they might shop c-stores for their newspapers or coffee. Many of the same consumers interested in healthier snacks may also indulge with a candy bar or traditional salty snack.”
Can a c-store market both healthy and indulgent successfully? Batt said offering both types of products should not affect the ability to market each. “Whether a store offers roller-grill items or cigarettes along with healthier snack fare is not significant,” he said. “Look at leading supermarkets; they offer expanded assortments of healthy, indulgent and processed foods.”
Batt said Eby-Brown’s large-chain customers are clear leaders in pulling this off, although some midsize and smaller chains are experimenting and finding success. “Many factors play a role, such as your core demographic, location and how much effort you put into promoting these products,” he said.
Micro Trends
Tristano said a new trend is a niche group of consumers looking for better-for-you snacks with real ingredients. While the health-seeking consumer remains in the minority, he said the industry has a very strong need for natural, organic ingredients.
The focus has moved from low sugar, low carb, low salt and low fat to the quality of an ingredient—how clean it is vs. what’s in it. Clean labeling will become more important to consumers who seek products made naturally and without pesticides or antibiotics, for example.
“The boomers, the Gen Xs will still be concerned with how much sodium or how much fat is in a product, but the younger generation is going to ask where it came from,” Tristano said. “Where was it raised? Were there sustainable practices? Was it produced organically or naturally, or were antibiotics or hormones involved? Basically, ‘better’ to the younger generation means better ingredients. Better for older generation is lower salt, lower additives, etc.”
One better-for-you ingredient that c-stores and manufacturers alike are focusing on is whole grains. According to Nielsen data, 66% of consumers say whole grains in snacks is important. Better-for-you snacks that include whole grains can be a natural way for consumers and retailers to balance health and indulgence.
“C-stores can benefit from including great-tasting snacks that offer wholesome ingredients in their product lineup,” said Meredith Butler, brand manager for Mrs. Freshley’s, which recently launched new 7 Grain Cookies, featuring 6 grams of whole grains per cookie. “One way to help sales is to offer a wide range of choices, including great-tasting indulgent treats with ingredients such as whole grains.”
Set the Stage
Tristano said c-stores that want to attract consumers seeking better-for-you snacking options need to set the stage. “Keep stores clean with visual cues for freshness,” he said. “In order to change the consumer mindset about c-stores, you have to start with the packaging. Make it look like it wasn’t brought in the back door from a commissary.”
Some stores are further along than others. “The fact that Wawa allows the consumer to build a customized sandwich through a kiosk moves the needle toward improving the perception of product quality in c-stores,” Tristano said. He notes that others can move slowly and strategically toward this goal. “Start off by offering fresh ingredients consumers are willing to buy and then build on top of that to reach a broader, healthier offering.”
Whether the healthier snack option is packaged or made onsite, every category benefits from any effort to appear “fresh.” To back Tristano’s point that retailers can start small and build on, some stores are bringing in a fruit and vegetable cart to send a “freshness cue” to consumers.
“Stores can package snack options with wine or other upscale items to begin to change consumer perception and mindset about c-store quality,” he said. “Ideally, ingredients have to be fresh and more wholesome, and stores need to build more customization into their offerings.”
Click here for information on products to balance your snack mix from Mrs. Freshley's.
This post is sponsored by Mrs. Freshley’s