Unseasonably mild weather and lower fuel prices put a lot more snack-hungry people on the roads this past winter in markets served by the North Salt Lake, Utah-based chain Maverik Inc.
The Salt Lake Valley saw weeks pass in February without the usual snowfall or freezing temperatures, says Ryan Morton, who handles the snack category as Maverik’s customer benefits manager. With some days even in the 70s, people stayed on the go, fueling their activities with snack stops.
“We are doing very well in snacks,” Morton says. “Obviously, there have been a lot of factors.” Along with weather, the biggest is one that’s transforming the category: Americans are pushing away from the three-squares-a-day culture and snacking more than ever.
“Snacking occasions have probably doubled in the last five years,” says Morton. “There are just better opportunities and healthier opportunities.”
Popular Flavors
Morton sees no reason why the category won’t continue to grow, especially with the introduction of new products that meet consumer demand for healthier options.
Maverik—with nearly 270 stores in 10 western states—focuses on a core demographic of outdoor-loving adventure seekers. But with the shift in the snacking culture, Morton sees opportunities to expand beyond the traditional blue-collar male customer base. Organic, lower-calorie and gluten-free snacks are drawing a new audience of women and millennials who are willing to spend a bit more to get something they consider better for them.
At Maverik, snack growth on the healthier side of the aisle has come from Clif bars and Spitz sunflower seeds, which Morton says is a hot regional brand.
On the salty side, new items and spicy flavors from Frito-Lay are energizing the category. In fact, Maverik works to ensure 100% distribution of new Frito-Lay products because they are so popular. Even trial flavors that were part of the second Lay’s “Do Us a Flavor” national competition were huge sellers. “We couldn’t keep select flavors in the stores,” says Morton.
An explosion of flavor profiles in the snack category means experimentation. David sunflower seeds, already offered in flavors such as Dill Pickle and Chili Lime, are now available in Sweet & Salty and Sweet & Spicy. Morton also is giving Salted Caramel sunflower seeds from Spitz a try, citing that sales started slowly but are picking up.
While Morton will take risks on flavors when he has the space, he also draws the line on some wilder profiles. “If it’s totally out there,” he says, “I’ll wait until someone else proves it.”
Millennials in Mind
Reaching out to millennials is a big part of Maverik’s strategy. New flavor profiles are important to this demographic, but so is how the chain communicates with them. Promotions via digital and social media are critical.
“The number of times they look on their phone or some kind of media compared to the baby boomers is substantially different,” says Morton. “We’ve gone after them with different incentives to drive them in and create more trips.”
The Maverik app helps put deals right in millennials’ hands. It works with the chain’s Adventure Club loyalty program and can serve as a digital loyalty card when scanned from a smartphone. The app also includes Punch-It!, virtual punch cards that track users’ purchases at Maverik to reward them with free drinks, snacks and other items.
Morton says tie-in deals with beverages and snacks or other adjacent items have been particularly helpful in strengthening the category. Maverik uses a retail analytics program called ToolBox to home in on who’s buying what and the best promotions.
“We can find those adjacencies better and work with multiple vendors for our promo opportunities,” says
Morton. This includes categories such as meat snacks, energy drinks, fountain and chips.
The data gathered from ToolBox is helping him pinpoint everything from placement to groupings, taking out so much guesswork that Morton says, “The 80/20 rule is going to be put more into place than it ever has been.”
Pricey Choices
Meat snacks are another big growth area for Maverik. Jack Link’s Small Batch, Old Trapper and Trapper’s Choice are some of the new products on offer. Customers looking for their protein boost from meat snacks, however, are finding themselves paying more—and sometimes for less product. Morton is concerned about the trend.
“We’re starting to see reduced ounces and cost increases at the same time,” he says. “We’re going to get to the point where a bag of jerky isn’t something you grab and go along with lunch.”
And managing the higher costs of organic and gluten-free items is an important consideration. “It’s definitely an upgrade to get a gluten-free or organic item, but hopefully they’re manageable to where the typical c-store consumer can still think that’s a good opportunity and a good buy,” says Morton.
Maverik also has examined how its customers want to see healthful options. A few years ago, the chain tried placing healthier and gluten-free items in their own set. Customers didn’t like that approach.
“Our data told us they liked [those items] to be included with the other group of snacks and not excluded. They want to find all the snacks in the same location,” Morton says.
With the rising popularity of these items, manufacturers are helping out with better labeling. “We’re starting to see packaging that will give you the protein or ... whatever they are certified,” Morton says. “That has been a great new thing.”
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.