Snacking will spoil your appetite, Mom used to warn us. Today, however, Mom usually isn’t around to cook up a meal, Dad is putting in extra hours at work and the kids are more overscheduled than ever.
The result? Americans have a major case of the munchies as they struggle to multitask and fi t in food breaks. Enter the age of grab-and-go grazing, when snacks often stave off between-meal hunger pangs or serve as a full-on substitute for a sit-down breakfast, lunch or dinner. Only nowadays, quick-fi x edibles aren’t limited strictly to salty, sweet or sinful categories. The snacks consumers eat with increasing frequency range widely and often provide greater nutritional value than the indulgences of just a few years ago.
So the battle for the belly is now not only along traditional day-parts, but the gaps as well: the 11 a.m. early stomach growl, the 2:30 p.m. grazing and the postdinner delight.
Strength in Numbers
The rise in munch isn’t just a hunch; it can be quantified and substantiated by the latest data. Consider, for example, that one out of every fi ve eating occasions today is a snack, and 53% of consumers are snacking more than once a day, according to Port Washington, N.Y.-based The NPD Group’s 2012 report “Snacking in America.”
In fact, the proportion of consumers who eat multiple snacks a day almost doubled from 2010 to 2012, according to a report by Chicago-based Technomic Inc. published in 2012.
That report also reveals snack consumption is relatively high throughout the day, peaking in the midafternoon, when 73% of consumers indulge in snacks (up from 68% reported in 2010) vs. 39% at midmorning (up from 30% in 2010), 39% midevening, and 40% late at night. (See chart on p. 6.) These increases may be due to the greater variety and availability of snacking foods offered at c-stores and quick-serve restaurants (QSRs), especially during the morning hours.
More frequent snack consumption is primarily seen among younger consumers, the Technomic study reveals: Fortytwo percent of 18- to 24-year-olds are snacking more often vs. an overall average of 28%. (See chart, p. 8.) However, this group is also slightly more likely than other age groups to indicate a decrease in snack consumption (20% vs. 18% across generations), confi rming that millennials lead very fluid lifestyles.
Data released in February from Chicago-based IRI’s AllScan shows that 10 out of the top 25 c-store categories are snacking-related, with salty snacks topping a list that most often includes chocolate candy, nonchocolate candy, pastries/doughnuts, meat snacks, nuts and seeds, and snack bars. And nearly 60% of snacks are purchased on impulse, based on results of the 2011 OBM Eating Survey by The Hartman Group, Seattle.
Snacks and Snackers Redefined
In the past, consumers were more structured in abiding by the three-squaremeals-a-day schedule, and snacking had a negative perception linked to mindless munching and consuming empty calories, says Kelly Fulford, senior category development manager for Minneapolisbased General Mills Convenience. But with today’s busy lifestyles, snacking has emerged as a way to balance food intake and regulate energy levels and cravings throughout the day.
“Snacks are so important that they have become our fourth meal,” says Fulford, who cites data from the aforementioned OBM Eating Survey indicating that the average person consumes more than two snacks a day. “Consumers use snacks differently today, from something to tide them over between meals to a meal replacement or a side.”
Indeed, 58% of snack foods are eaten as a snack, while 42% are consumed as a meal or side, based on 2011 data from NPD.
In 2013, a snack may mean a small indulgence or treat, a cleansing break from a hectic day or a way to sustain your body when you’re hungry, says Kevin Higar, director of research and consulting for Technomic. Consumers increasingly define snacks by the time of day an item is consumed and its preparation time, although many consumers continue to determine snacks according to the type of food or beverage. (See chart, p. 8.) While 63% of consumers indicate that their definition of “snack” didn’t change from 2010 to 2012, 40% have broadened their definition to include more types of foods and beverages, per 2012 data from Technomic. “Snacking definitely has evolved. It isn’t about adding another meal to the day but acknowledging that the traditional definition of meal time is evolving,” says Jeff Lenard, NACS’ vice president of industry advocacy. “The definition of a snack has greatly expanded from the traditional candy bar or bag of chips to a wider assortment of foods. Just look at how alternative snacks like beef jerky and healthy snacks like fruit continue to grow in popularity.”
Ask Bill Nolan, vice president of marketing for Valparaiso, Ind.-based Family Express, and he’ll tell you that snacking today means “conveniently satisfying midday cravings.”
“With conventional meals, you go from hungry to full, then potentially lethargic,” he says. “Snacking provides a more consistent energy level throughout the day without stopping for that hourlong meal break.”
Darren Seifer, food and beverage industry analyst for NPD, says it’s actually the role, not the meaning, of snacking that has changed most significantly in recent years. “To today’s consumers,” Seifer says, “snacking isn’t just an indulgent behavior dominated by cravings; it’s an important part of their daily diet.”
And this is where opportunity—and risk—arises for convenience operators. Attune to the vacillations of a worker’s day and you can create a nice profit opportunity. In other words, are you setting your store to showcase snacking alternatives for different points of the day?
“Increased snacking habits are driven by a busy schedule and convenience opportunities,” says Higar of Technomic. “These people often have 100 different things going on in their lives and may not get the full meal they want, so they stop at a convenience store to grab something quick at a lower price point.”
Day-Parts Departing?
The lines between meals and snacking have become blurred to the point where there is no such thing as “traditional meals,” Fulford says. Many people nowadays consume smaller meals and portions throughout the day. Also, snacking has become more prevalent because it fulfills many functional and emotional needs, including portability, energy, health, hunger abatement, sweet indulgence and taste.
“This should matter a great deal to operators because the convenience and selection of products within the c-store aligns very well with between-meal snacking occasions,” says Fulford. “It’s the perfect place to grab a snack.”
Pervez Pir, chief operating officer for Vintners Distributors in Fremont, Calif., says snacking doesn’t conform to any particular day-parts because it tends to occur throughout the day. “Many consumers are missing a sit-down meal and are grabbing a meal replacement or something to tide them over,” he says.
Traditional day-parts are still important, however, because they “provide a reference point for where consumers feel they should be having a meal,” Higar says.
Although snacking has become more popular for fill-in eating, c-stores continue to be a destination for quick, portablemeals, particularly around lunchtime.
“Day-part meals do matter to c-stores because consumers see us as an alternative to QSRs. That’s why you see so many c-stores getting into the hot food business,” says Nolan.
Hankering for Healthy
The most noticeable consumer change in snacking observed by Nolan of Family Express has been the migration away from chips to less guilty products such as nuts and trail mixes, signifying a move to healthier snacking.
“With more on-the-go lifestyles, there’s less sit-down eating. It’s more convenient to eat a PowerBar or bagged nuts in the car or between meetings instead of messy burgers or sandwiches,” he says.
The top-selling snack today isn’t processed or packaged at all—it’s fruit, according to 2012 data from NPD’s National Eating Trends In-Home and Away-FromHome database. The industry has also seen double-digit growth in nutrition/energy bars, and yogurt, popcorn, oatmeal and nuts/seeds continue to trend high.
“Better for you (BFY) and fresh snacks are on the rise as consumers are becoming smarter and more aware of what they eat,” Fulford says. She cites Global Mapping International research released in January indicating that 63% of c-store shoppers say they want more BFY products in c-stores; 51% say if BFY products are carried in a c-store, they would shop there more often.
Higar, who virtually lives out of a suitcase while spanning the country for great food ideas, agrees: “There’s a renewed focus on healthier eating and quality of life, which is why we’re seeing more fruits, salads, veggie chips and organic foods being offered by convenience retailers.”
Raman Goyal, regional manager for 13 Shell- and Chevron-branded Vintners stations in southern California, says his stores are enjoying strong register rings for fresh fruit and healthier packaged items such as energy bars, trail-mix products, mixed nut snacks and Greek yogurt.
This doesn’t mean operators should forgo traditional indulgence. Rather, they must find that balance, which will swing largely by demographic and competition.
“Don’t discount hot-selling indulgent items like ice cream, cookies, gum, candy and carbonated drinks,” says Seifer of NPD. “But make apples, bananas, Greek yogurt, granola and protein bars available, too.”
The latter category has been a particularly sweet cash cow for Ray Johnson, operations manager for Speedee Mart, the Las Vegas operator of 20 76-branded gas stations. “The snack picks of choice at our stores used to be brownies, Rice Krispies Treats and Pop-Tarts,” says Johnson. “Now it’s PowerBars and Special K bars, which yield a higher profit margin because the ticket ring on these items is three times higher than those of traditional snacks.”
Greater Variety and Portability
Shoppers are increasingly on the hunt for novelty and variety to keep their snacking tastes from becoming stale. A wider variety of portable hot edibles and fresher foodservice offerings with more complex flavor profiles are also in greater demand, as evidenced by the growing popularity of ethnic food snacks such as empanadas, potstickers, eggrolls and steamed dumplings that can be easily held and consumed while driving and multitasking.
“Consumers don’t want to compromise on flavor, and they’re also much more willing to try a unique new product in a snack format because the risk is smaller at this lower dollar amount,” says Higar, who suggests that c-store retailers should continually introduce new and unique snacks to cater to this demand from frequent snackers. Offering locally produced specialty items with more upscale ingredients is also smart, he says.
Overall, c-stores have to integrate themselves into a consumer’s lifestyle by offering better quality, selection and convenience. “These foods have to taste good but also travel well,” Higar says, “which is why you see more colorful and tasty yet portable choices available today like zucchini fries, Parmesan potato wedges and even cake balls (chocolate-dipped cake batter on a stick).”
Hence, don’t just think on the go; think also portability. “Look at how many candy companies have switched to handy pack bags with bite-sized portions that can fit in your cupholder,” Johnson says. “Today’s snacks have to be easily eaten in the car, and the average customer is going to consume whatever snack he or she buys within 2 minutes.”
Beverages also fit nicely in cupholders, and, in the form of smoothies, milk drinks and other calorie-rich liquids, they can function as a snack or at least a trigger for purchasing a solid snack food. “Picking up a beverage like a specialty coffee gives them a cleansing break that gets their minds off what may have been a bad start to the day,” says Higar.
Enterprising Merchandising
Retailers can capitalize on emerging snacking trends by focusing on customer need states, assortment and location, says Fulford. “It’s important to have the breadth and depth of assortment to deliver against varying consumer needs. And with the average consumer only in the c-store for less than 2 minutes, we need to get better about marketing to the mission,” Fulford says. “This includes creating adjacencies and organizing the store layout by similar day-parts and need states.”If the snack product is not in the right place for the customer to find quickly, that’s a key missed opportunity, says Fulford.Case in point: granola bars, which are often buried deeper within the c-store and combined with cookies, crackers and other bars. Fulford says it makes more sense to merchandise granola bars closer to other key products linked to morning purchases, such as coffee, pastries and doughnuts.“Don’t place it in the back where you have to hunt for it; make sure customers can find it fast,” Seifer says. “Also, place fruit stands right near the entrance with yogurt coolers nearby, put a mini cooler with string cheese near the front, and stock bananas right at the checkout counter to drive extra revenue.”
Goyal says he places salty snacks “next to the beer cooler and sweet snacks in line with or next to the soda fountain or energy-drink cooler. That way, when a thirsty customer comes in for a drink, we can attract them with impulse snack items.”Retailers may also want to consider adopting a multivendor mixed approach to stocking snacks.
“Create an eye-catching endcap of snacks, and have a rack of the best-selling SKUs of salty, sweet and alternative snacks to drive customers deeper into the store to get something,” says Kit Dietz, principal of Dietz Consulting LLC, a firm that provides consulting services to the convenience industry. He emphasizes how important it is to focus on the core products—considering that 4% of SKUs drive approximately 50% of total c-store sales, according to a recent study his firm conducted with Willard Bishop Consulting Ltd. “Consumers are very responsive to promotions, so utilize endcaps, displays and shippers to drive impulse sales.”
Also, try devoting as much space and attention to non-candy snacks as you do to the candy items.
“Most operators don’t give energy bars, cookies and crackers the proper space and SKU count,” says Johnson of Speedee Mart. “You may see 4 total feet of space for all three categories combined in some c-stores. Actually, each of those categories should be given 4 feet.”
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