Category Management Handbook

Snacks: Salty Snacks 2016

Where the gains are

C-store sales, 52 weeks ending Dec. 27, 2015

C-store sales of salty snacks were up across the board in 2015, with every segment seeing dollar and unit growth, according to IRI figures. The biggest percentage gains: meat snacks, up nearly 10%; snack nuts, up more than 13%; and cheese snacks, with a 10% increase in c-store dollar sales.

The convenience channel also enjoyed the strongest sales growth in salty snacks compared to other channels, with sales up more than 6% for cheese snacks, corn snacks, “other salted,” pork rinds, potato chips, pretzels, ready-to-eat popcorn and tortilla chips, per IRI.

SubcategoryC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Potato chips$1,525.14.0%943.02.9%
Dried meat snacks$1,524.69.9%569.14.2%
Tortilla/tostada chips$891.75.3%478.44.1%
Other salted snacks$838.05.9%459.64.6%
Snack nuts$613.613.1%482.410.6%
Cheese snacks$573.110.0%355.38.3%
Crackers$411.56.6%369.02.8%
Corn snacks$350.77.8%201.74.8%
Sunflower/pumpkin seeds$332.09.7%259.43.0%
Pretzles$237.410.4%149.28.8%
Ready-to-eat popcorn/caramel corn$208.18.1%125.26.5%
Nutritional snacks/trail mixes$200.36.3%76.77.7%
Pork rinds$141.29.7%95.35.4%
Chocolate-covered salted snack#36.417.4%13.66.8%

Source: IRI | * Percent change from a year ago


Channel Comparison: Salty Snacks***

Channel

Dollar sales ($ millions)PCYA*Unit Sales (millions)PCYA*
Multioutlet****$16,820.12.9%6,728.51.8%
Food$9,751.01.9%3,896.11.5%
C-store$4,765.46.2%2,807.84.7%
Drug$617.61.6%308.3(1.7%)

Source: IRI | * Percent change from a year ago | *** Includes cheese snacks, corn snacks, “other salted,” pork rinds, potato chips, pretzels, RTE popcorn and tortilla chips | **** Includes supermarkets, drug stores, mass market, military commissaries, and select club and dollar retail chains


Distributor Data: Snack Shipments

Calendar year 2015

In 2015, McLane shipments of snacks in dollars were up by double digits in meat snacks, nutritional, nuts, trail mix, seeds and popcorn.

SegmentAPSW*****APSW Dollar GrowthPCYA*
Meat snacks$116.35$14.2313.9%
Nutritional$67.96$14.0226.0%
Nuts$43.69$6.6518.0%
Other salty snacks$42.32$3.158.1%
Chips/pretzles/rinds$39.01$2.787.7%
Cookies$32.67$1.504.8%
Other alternative snacks$29.95$.0.080.3%
Trail mix$22.65$3.1115.9%
Seeds/kernels$17.27$2.3715.9%
Crackers$16.80$1.389.0%
Packaged popcorn$3.47$0.3511.2%

Source: McLane Co. | * Percent change from a year ago | *****Average shipments per store per week


Latest Quarter: Salty-Snack UPCs

C-store sales, 13 weeks ending Dec. 27, 2015

A bevy of resized UPCs worked their way through c-stores in the final quarter of 2015, with the 3.125-ounce Nacho Cheese Doritos the top seller, per IRI.

UPCC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Doritos Nacho Cheese tortilla chip (3.125-oz.)$45.4N/A30.7N/A
Lay's Classic Potato Chip (3-oz.)$32.2N/A21.9N/A
Ruffles Cheddar & Sour Cream potato chip (2.625-oz.)$31.5N/A21.3N/A
Doritos Cool Ranch tortilla chip (3.125-oz.)$25.0N/A16.9N/A
Cheetos Flamin' Hot cheese snack (3.5-oz)$24.3N/A16.4N/A
Doritos Nacho Cheese tortilla chip (10.5-oz)$24.1N/A5.8N/A
Funyuns regular onion ring (2.375-oz.)$22.450.4%15.252.4%
Cheetos cheese snack (3.5-oz.)$19.2N/A13.0N/A
Chesters Flamin' Hot corn & potato snack (4-oz.)$17.4N/A11.8N/A
Cheetos cheese snack (3.375-oz.)$16.5N/A11.1N/A
Total**$1173.6N/A691.1N/A

Source: IRI | * Percent change from a year ago | ** Including UPCs/brands/families not shown


Consumer in Focus

Mintel reports in its 2015 salty-snacks research that the age group most likely to be concerned about ingredients in salty snacks are those 25 to 34. This same age group—millennials—are most willing to pay a premium for higher-quality snacks. And these consumers are the most brand loyal, “highlighting the importance of manufacturers meeting their desire for high-quality, indulgent snacks, as well as products with ingredient transparency,” Mintel says.

Continued: Warehouse Data and Potato-Chip Trends

Warehouse Salty-Snack UPCs

C-store sales, 52 weeks ending Jan. 20, 2016

C-store unit sales of warehouse-delivered salty snacks rose nearly 3%, according to Nielsen.

UPCC-store sales ($ millions)PCYA*
Gardetto's Original Snack Mix (5.5-oz.)$32.36.5%
Sunshine Cheez-It Original Cracker (3-oz.)$31.317.9%
Wonderful Pistachio Whole (5-oz.)$28.1(4.35%)
Combos Cheddar Cheese Pretzel (6.3-oz.)$25.24.5%
Pringles Sour Cream & Onion Potato Crisp (5.96-oz.)$24.012.1%
Total**$1,808.25.9%

Source: The Nielsen Co., General Mills Inc. | * Percent change from a year ago | ** Including UPCs/brands/families not shown | *** Non-DSD


Warehouse Salty-Snack UPCs by Units***

UPCUnit sales (millions)PCYA*
Planters Salted Peanuts (1.5-oz.)27.41.7%
Sunshine Cheez-It Original Cracker (3-oz.)21.715.7%
Planters Honey Roasted Peanuts (1.75-oz.)21.71.9%
Keebler Cheese Sandwich Cracker19.40.7%
Keebler Peanut Butter Sandwich Cracker19.02.3%
Total**1,013.82.9%

Sources: The Nielsen Co., General Mills, Inc. || * Percent change from a year ago | ** Including UPCs/brands/families not shown | *** Non-DSD


6.2% - Increase in c-store sales of salty snacks in 2015, according to IRI


Potato-Chip Trends

The biggest salty-snack segment in c-stores grew dollar sales 4% in 2015, with unit sales up nearly 3%, according to IRI. Several of the top UPCs went through resizing, as shown in the fourth-quarter sales figures.

C-store sales, 52 weeks ending Dec. 27, 2015

Potato-Chip BrandsC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Lay's$471.9(0.9%)290.9(1.0%)
Ruffles$121.36.2%122.58.9%
Pringles$171.410.3%89.48.6%
Lay's Kettle Cooked$81.310.8%43.512.6%
Private label$48.32.4%46.83.1%
Total**$1,525.14.0%943.02.9%

Source: IRI | * Percent change from a year ago | ** Including UPCs/brands/families not shown


Latest Quarter: Potato-Chip UPCs

C-store sales, 13 weeks ending Dec. 27, 2015

UPCC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Lay's Classic Potato Chip (3-oz.)$32.2N/A21.9N/A
Ruffles Cheddar & Sour Cream Ridged (2.625-oz.)#31.5N/A21.3N/A
Lay's Barbecue Potato Chip (2.75-oz.)$11.5N/A7.8N/A
Lay's Sour Cream & Onion Potato Chip (2.75-oz.)$11.4N/A7.8N/A
Lay's Salt & Vinegar Potato Chip (2.75-oz.)$10.9N/A7.4N/A
Total**377.44.1%232.93.1%

Source: IRI | * Percent change from a year ago | ** Including UPCs/brands/families not shown

Continued: Cheese-Snacks, Nuts and Crackers

Cheese-Snack Trends

According to IRI, more than 86% of c-store cheese-snack sales came from the Cheetos brand in 2015, and it gained nearly 1 point in share.

Cheese-Snack Brands

C-store sales, 52 weeks ending Dec. 27, 2015

BrandC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Cheetos$494.411.0%305.110.0%
Chester's$37.39.1%18.79.2%
Cheetos Mix Ups$9.4(3.3%)6.2(#.5%)
Herr's$6.63.4%5.7(11.5%)
Golden Flake$3.4(12.8%)2.9(11.5%)
Total**$573.110.0%355.38.3%

Source: IRI | * Percent change from a year ago | ** Including UPCs/brands/families not shown


Latest Quarter: Cheese-Snack UPCs

C-store sales, 13 weeks ending Dec. 27, 2015

UPCC-store salesPCYA*Unit sales (millions)PCYA*
Cheetos Flamin' Hot (3.5-oz.)$24.3N/A16.4N/A
Cheetos (3.5-oz.)$19.2N/A13.0N/A
Cheetos (3.375-oz.)$16.5N/A11.1N/A
Cheetos Flaming Hot Limon (3.5-oz.)$9.1N/A6.2N/A
Cheetos Cheddar Jalapeno (3.5-0z.)$8.6N/A5.8N/A
Total**$141.08.0%87.26.4%

Source: IRI | * Percent change from a year ago | ** Including UPCs/brands/families not shown


Nutritional Snack/Trail Mix Brands

C-store sales, 52 weeks ending Dec. 27, 2015

C-store unit sales of nutritional snacks and trail mixes rose nearly 8% in 2015, per IRI.

BrandC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Planters$52.63.6%17.32.5%
Snak Club$29.47.5%9.811.2%
Private label$24.535.7%11.031.3%
Frito-Lay$13.6(2.7%)6.8(2.7%)
Valued Naturals$11.93.6%3.83.6%
Total**$200.36.4%76.77.7%

Source: IRI | * Percent change from a year ago | ** Including UPCs/brands/families not shown


Snack-Nut and Seed Trends

C-store sales, 52 weeks ending Dec. 27, 2015

C-store sales of nuts rose by double digits in 2015, with big unit gains for Planters, Frito-Lay and Wonderful brands, according to IRI. After a soft 2014, unit sales for seeds grew in 2015, led by Spitz and Bigs brands.

Snack-Nut Brands

BrandC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Planters$144.79.3%118.111.3%
Frito-Lay$93.37.7%51.57.5%
Frito-Lay Munchies58.4%0.5%105.92.1%
Wonderful$51.616.8%15.713.8%
Blue Diamond$42.614.5%27.33.2%
Total**$613.613.1%482.410.6%

Seed Brands

BrandC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
David$111.75.8%63.51.2%
Frito-Lay$66.03.1%104.7(0.5%)
Spitz$56.622.0%31.520.5%
Bigs$31.435.7%14.730.8%
Giants$18,05.6%8.21.0%
Total**$332.09.7%259.43.0%

Source: IRI | * Percent change from a year ago | ** Including UPCs/brands/families not shown


Cracker Trends

C-store sales, 52 weeks ending Dec. 27, 201

According to IRI, c-store sales of crackers rose more than 6% in 2015, with Sunshine Cheez-It, Combos and Nabisco Ritz Bits among the big gainers.

Filled

BrandC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Keebler$44.26.2%60.94.6%
Munchies$39.2(3.5%)65.2(2.7%)
Combos$24.310.6%14.77.3%
Nabisco Ritz Bits$21.214.4%13.512.3%
Lance Toast Chee$12.5(1.4%)19.7(2.6%)
Total**$204.13.9%253.41.3%

All Other

BrandC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Sunshine Cheez It$72.314.4%48.212.1%
Combos$23.212.1%8.911.8%
Sunshine Cheez It Duoz$12.4(4.0%)5.4(3.0%)
Pepperidge Farm Goldfish$12.023.8%7.122.5%
Nabisco Ritz$11.15.2%3.84.5%
Total**$188.710.5%104.07.3%

Source: IRI | * Percent change from a year ago | ** Including UPCs/brands/families not shown

Continued: Tortillas, Best Practices, More

Other Salty-Snack Product Trends

C-store sales of “other salty snacks”—typified by brands such as Funyuns and Chester’s—rose nearly 6% in 2015, according to IRI. The 2.375-ounce Funyuns ranked as the top-selling UPC in the final quarter.

Other Salty-Snack Brands

C-store sales, 52 weeks ending Dec. 27, 2015

BrandC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Funyuns$178.014.8%110.115.3%
Chester's$117.518.8%75.318.4%
Munchies$109.4(6.2%)48.7(7.7%)
General Mills Chex Mix$107.94.1%52.12.1%
Gardetto's$69.710.8%27.18.7%
Total**$838.05.9%459.64.6%

Source: IRI | * Percent change from a year ago | ** Including UPCs/brands/families not shown


10% - Increase in c-store sales of cheese snacks in 2015, per IRI


Latest Quarter: Salty-Snack UPCs

C-store sales, 13 weeks ending Dec. 27, 2015

UPCC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Funyuns onion snack (2.375-oz.)$22.450.4%15.252.4%
Chester's Flamin' Hot corn & potato snack (4-oz.)$17.4N/A11.8N/A
Chester's Flamin' Hot corn & potato snack (5.75-oz.)$11.124.8%5.625.0%
Gardetto's Original snack mix (5.5-oz.)$8.59.3%3.37.4%
Funyuns onion snack (6-oz.)$8.27.0%2.37.1%
Total**$203.54.2%112.23.7%

Source: IRI | * Percent change from a year ago | ** Including UPCs/brands/families not shown


Tortilla-Chip Trends

The Barcel Takis Fuego brand picked up 1 point in share of c-store tortilla-chip sales in 2015 and was able to crack the top five UPCs.

Tortilla-Chip Brands

C-store sales, 52 weeks ending Dec. 27, 2015

BrandC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Doritos$572.45.7%232.94.9%
Barcel Takis Fuego$70.120.4%36.418.3%
Doritos Sabritas Dinamita$38.4(5.1%)23.9(7.8%)
Tostitos Scoops$30.65.8%7.25.5%
Tostitos$29.41.4%7.01.4%
Total**$891.75.3%478.44.1%

Source: IRI | * Percent change from a year ago | ** Including UPCs/brands/families not shown


Latest Quarter: Tortilla-Chip UPCs

C-store sales, 13 weeks ending Dec. 27, 2015

UPCC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Doritos Nacho Cheese (3.125-oz.)$45.4N/A30.7N/A
Doritos Cool Ranch (3.125-oz.)$25.0N/A16.9N/A
Doritos Nacho Cheese (10.5-oz.)$24.1N/A5.8N/A
Doritos Spicy Nacho (3.125-oz.)$14.1N/A9.5N/A
Barcel Takis Fuego Hot Chili Pepper & Lime (4-oz.)$11.826.6%7.424.9%
Total**$223.24.7%120.13.5%

Source: IRI | * Percent change from a year ago | ** Including UPCs/brands/families not shown


Best Practice

According to Kelly Fulford, senior category development manager for General Mills Convenience & Foodservice, shoppers increasingly are looking for inherently good-for-you snacks. Many of the strongest growing subcategories, such as jerky and bars, have fats and protein from natural sources such as nuts, coconut and meat. “Retailers should ensure their assortment includes a variety of inherently healthy snacks to fuel shoppers’ on-the-go lifestyles during the day,” says Fulford. “From a merchandising standpoint, try to group your better-for-you items together and leverage signage to make these items more visible on the shelf.”


Snacks: What to Watch

Salty Snacks

Sweet Snacks

Meat Snacks

Energy/Diet/Granola Bars

Category Manager of the Year: William Slattery

View the full 2016 Category Management Handbook

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