OAKBROOK TERRACE, Ill. -- The year 2015 for the snack and candy category in many ways was both a look back at what makes it so yummy and a look ahead at how it is evolving. Some of these news-making developments were connected.
1. Simple ingredients seize headlines.
It was a K.I.S.S. year for snacks and candy--Keep it Simple, Snackmakers. The biggest news out of the category in 2015 was the manufacturers’ shift to using simple ingredients, removing artificial ingredients for natural ones.
Hershey announced that it has begun the transition to “simple and easy-to-understand ingredients … like fresh milk from local farms, roasted California almonds, cocoa beans and sugar--ingredients you recognize, know and trust.” The initiative is beginning with the Hershey bar and Kisses. New packages are also piloting the SmartLabel. With this new mobile tool, consumers can scan a QR code to instantly get detailed product information not limited by the size of packaging. (More on new technology later.)
Nestlé USA also announced its commitment to removing artificial flavors and U.S. Food & Drug Administration (FDA)-certified colors, such as Red 40 and Yellow 5, from all of its chocolate candy. By the end of 2015, more than 250 products and 10 brands including Butterfinger, Crunch and Baby Ruth will be free of artificial flavors and certified colors.
Kellogg has also has pledged to remove artificial ingredients from its cereals and treats over the next three years, and SnackWell's has announced a commitment to reformulating its products, which will now be made without high-fructose corn syrup, partially hydrogenated oil or artificial flavors and colors.
2. Burgeoning better for you.
Following on the same theme, it was also a year of tempering the dark side of snacking by emphasizing the light (healthy) side. Several snack companies accomplished this mainly by acquiring or creating “better-for-you” snack divisions.
Snyder's-Lance created Clearview Foods, a new division focusing on developing better-for-you snacks. It will concentrate on growing the company's Snack Factory Pretzel Crisps, Eat Smart and Late July Organic Snacks products. It also has expanded its gluten-free portfolio.
Mondelez acquired Enjoy Life Foods, a snack company in the "free-from" segment. It products are gluten free and free from wheat, dairy, peanuts, tree nuts, egg, soy, fish and shellfish, which account for about 90% of all food allergies. Mondelez also announced that it intends “to become the global leader in well-being snacks," said Mark Clouse, executive vice president and chief growth officer, "with 50% of our portfolio in the well-being space by 2020 … . Our goal is to simplify and enhance the ingredient and nutritional profile of our base business while also focusing on breakthrough innovation to address consumers' well-being needs. Over the next five years, we expect to focus 70% of our new-product development efforts on well-being platforms."
Utz Quality Foods has launched the Utz Specialty Division, which will provide a range of brands and products to satisfy growing consumer demand for better-for-you, craft and regional snack foods.
Meanwhile, Mars has declared its full support for a U.S. government proposal to include an added sugars declaration in the nutrition facts panel on product packaging. "The chocolate and confectionery treats that we make contain sugar, an ingredient that contributes essential sweetness to the taste, but should be consumed in moderation as part of a balanced diet and active lifestyle," the company said.
On the retailer side, 7-Eleven introduced two premium, better-for-you snack bars under a new private-label banner, 7-Select GO!Smart. And Aloha Island Mart adopted the Hawaii Department of Health’s Choose Healthy Now project. It uses green labels to identify healthy “go” foods, yellow labels for “go slow” foods and red labels for “uh-oh” foods.
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3. Snacks tech.
While NACStech is familiar to most in the convenience-store industry, 2015 gave us “Snacks Tech.” Companies in the snack and candy category are looking to the future, where we will all spend the rest of our lives, to create new methods to reach and engage snacking consumers.
Mondelez rolled out a new mobile marketing initiative, Shopper Futures, which brings together entrepreneurs and retailers to help transform the consumer retail experience. It has teamed 7-Eleven with Freckle IoT and the Oreo/belVita brands in the United States and Earshot with 7-Eleven Canada and the Dentyne brand in Canada; Kum & Go with Strap and the Trident brand; QuickChek with Turnstyle Solutions and the Swedish Fish brand; and Mac’s in Ontario with Turnstyle and the Cadbury brand in Canada.
Out of this initiative, select Kum & Go convenience stores are launching the Trident gum brand's C.H.E.W. (Change Health Every Week) campaign to reward shoppers for healthy and active behaviors. It incorporates wearable technology.
Mondelez also acquired Betabox, which engages sample recipients with a mobile platform that brands can customize to promote content, special offers and social sharing incentives; partnered with ChannelSight to maximize e-commerce sales opportunities across its digital media touchpoints; and partnered with Facebook to create video content to drive impulse snack purchasing online.
Meanwhile, in a deal with Amazon Prime, Hershey’s Ice Breakers brand is now available with the Amazon Dash Button, a new way for consumers to easily re-order products with the push of a button.
4. Oreo cremes the calendar.
Mondelez’s Oreo cookie brand managed to sandwich a lot of news in between January and December 2015.
Among the many new flavors that the company launched this year were red velvet, which features a completely new cookie flavor and color for the first time since the debut of the Golden Oreo in 2004; cotton candy; Oreo Thins, with a crisp, delicate cookie; brownie batter; and filled cupcake. The company also announced the rollout of the cinnamon bun flavor for Jan. 2016.
Meanwhile, old Oreo rival Hydrox relaunched in September after a seven-year absence.
5. Blue Bell is back.
The year 2015 was annus horribilis for Texas-based ice-cream maker Blue Bell Creameries. It spent much of the year smarting from a food-borne illness recall, but managed to recover and bring the brand back to stores.
In April, Blue Bell voluntarily recalled all of its products currently on the market, made at all of its facilities, because they had the potential to be contaminated with Listeria monocytogenes after testing positive for the bacteria at one plant. The recall included ice cream, frozen yogurt, sherbet and frozen snacks made at all Blue Bell facilities.
In May, it laid off 1,450 workers and furloughed 1,400 more over the recall. In August, it again began distributing the frozen treats to stores in select markets.
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