2023 Snacks and Candy Year in Review

This year was one for change in the snacks and candy aisle. Brands shifted ownership, private label grew, some snacks were moved out of the center store to be paired with foodservice offerings, meat snacks dominated and cinnamon entered the flavor arena.

Total snack prices rose at twice the rate (15.2%) of food inflation (7.7% ) in total U.S. multi-channel markets and convenience, according to data from NielsenIQ (NIQ) for the 52 weeks ending May 6, leading to volume declines.

Snacking accounts for $135 billion annually in total U.S. multi-channel markets and convenience, according to NIQ.

Read on to find out how the category has transformed in 2023. ...

Store brands have blossomed into a $230 billion industry in the U.S., making up nearly 30% of all new dollar sales in retail last year, according to the Private Label Manufacturers Association (PLMA).

At the PLMA Trade Show in Chicago this November, four convenience-store chains received awards for private label products: Circle K Buffalo Chicken Wing Chips, Yesway Chamoy Chili Peach Rings, Foxtrot Alkaline Water and Casey’s Wireless Stereo Ear Buds.

Love’s Travel Stops & Country Stores began offering private-label products four years ago. This year, Love’s rolled out nuts and trail mix in its line. The snack comes in a total of 16 SKUs, with different sizes available for 10 flavors, including peanut butter, chili lime corn, toasted corn, Cajun, berry and more.

More than 50% of dollar growth in snacks is from companies of less than $500 million and private-label brands, according to data company NielsonIQ.

Toward the end of the year, CEFCO Convenience Stores relaunched its private-label brand, now called Y’all, to add consistency to the products and packaging. The brand offers the same snacks as before, including sweet and salty trail mix, roasted salted cashews and chocolate covered almonds. CEFCO added original and sour gummies and changed its jerky to a tougher variety, with original, pepper and teriyaki flavors.

“There were different looks to it, and it wasn't cohesive,” said Rachel Puepke, vice president of marketing at CEFCO. “And to us internally, it really didn't promote premium even though the name was premium.”

Many snack and candy company acquisitions took place in 2023. Some convenience- store suppliers that changes hands include:

• Kellogg’s (Battle Creek, Michigan) separation of companies was approved in July and became affective in October. The brand’s global snacking business is now named Kellanova, and the North American cereal business is called WK Kellogg Co.
• Perfetti Van Melle (Erlanger, Kentucky) acquired Mondelez Gum business (Chicago).
• Mars (McLean, Virginia) acquired Tru Fru (Salt Lake City), a better-for-you, whole-fruit snacking brand.
• Ferrero (Luxembourg) took hold of Wells Enterprises (Le Mars, Iowa), including the Blue Bunny and Halo Top brands.
• Ferrara (Chicago) acquired Jelly Belly Candy Co. (Fairfield, California).
• Second Nature Brands (Detroit) acquired Brownie Brittle (West Palm Beach, Florida), a sweet snack that has gained popularity in recent years.
• John B. Sanfilippo & Son Inc. (Elgin, Illinois), a processor, manufacturer and distributor of nut and dried fruit-based products, acquired the assets of Just the Cheese from Specialty Cheese Co. Inc (Reeseville, Wisconsin).
• JTM Foods LLC (Erie, Pennsylvania) acquired Cookies-n-Milk (McKinney, Texas), a producer of sweet snacks based.
• Flowers Foods (Thomasville, Georgia), a producer of packaged bakery foods based has completed the acquisition of Papa Pita Bakery (Salt Lake City), a manufacturer and distributor of bagels, tortillas, breads, buns, English muffins and flat breads.
• Campbell Soup Co. (Camden, New Jersey) sold its Emerald Nuts business to Flagstone Foods (Greenwich, Connecticut), a manufacturer and distributor of private label snack nuts and trail mixes.
• The J. M. Smucker Co. (Orrville, Ohio), through its wholly owned subsidiary SSF Holdings Inc., acquired Hostess Brands (Lenexa, Kansas).
• The J.M. Smucker Co. also sold its Sahale Snacks brand—which makes nut and fruit snack mixes—to Second Nature Brands (Detroit), a better-for-you snacks and treats manufacturer.
• Cibo Vita (Totowa, New Jersey) was acquired by Citation Capital LLC (Dallas), a private equity firm specializing in founder and family-led businesses.
• Bazooka Candy Brands (New York) was acquired by Apax Partners LLP (New York), a global private equity advisory firm.

Convenience-store foodservice had the second highest share of traffic in commercial foodservice in 2022, taking up a 17% share with 2% growth from a year ago, according to Circana data. The only category with more share was quick-service restaurant (QSR), which takes up the majority of commercial foodservice at 58%, but c-store was ahead of fast casual, midscale, casual dining and all other retail.

Retailers have taken advantage of the boom in foodservice by merchandising snacks and candy near foodservice and offering cross-category bundle promotions.

“We’re really trying to build up our fresh kitchen offerings and that whole area, integrating it with the center store,” said Casey Creegan, manager of private brands at Love’s Travel Stops & Country Stores Inc., Oklahoma City. “I think that’s going to open up a lot more opportunities for not only healthier products, but more premium type private label products.”

For example, the deli program offers fresh cut fruit, salads and wraps.

“That kind of stuff is starting to replace that traditional c-store food, like roller grill and nachos and chili dogs,” Creegan said. “It’s really being replaced by more substantial meal type food.”

At Dandy Mini Mart, based in Sayre, Pennsylvania, the center store category at intermingles with other categories such as foodservice. The chain cross promotes with bundle, discount and free product offers, said Marybeth Benjamin, category manager at Dandy.

Convenience stores remain the fastest growing channel for confection, reaching $8.3 billion in sales for the 52-week period ending Aug. 13, according to data from Circana. This marks an increase of 14.5% compared to year-ago levels.

In all traditional channels, confectionery dollar sales have surpassed $34 billion. Confectionery continues to be one of the strongest growth leaders across the store, according to a report from the National Confectioners Association (NCA).

Non-chocolate candy continues to outperform chocolate in both dollars and units. For the 52-week period, non-chocolate dollar gains increased 15.6%. Units were mostly flat, dropping 0.5%; however, much like chocolate, non-chocolate sales gains are showing signs of slowing down, with the latest four weeks experiencing a unit decline of 1.9%, according to Circana data.

A few areas within chocolate are still experiencing double-digit growth in the full-year view, according to NCA, such as seasonal candy, snack size and bags/boxes/bars smaller than 3.5 ounces. Gains for sugar-free chocolate, however, have dropped to single-digits, at 7.2%.

Meat snacks continued on a roll in 2023, and Stryve was a brand that had significant growth.

The high-protein, low-carb, air-dried meat snack brand expanded its c-store distribution. Earlier this year, Stryve snacks entered TravelCenters of America, Royal Farms, Circle K in select regions, Kum & Go, Hutchinson Oil, Murphy USA,Plaid Pantry, Cal’s Convenience, CEFCO, Enmarket, G&M Oil, GetGo, Jacksons Food Stores, NEXCOM, Parker Co., Pilot/Flying J, QuickChek, Refuel, Sunoco, Town Pump, Vintners and United Dairy Farmers. It is also offered at 7-Eleven and Speedway.

“We are thrilled to expand our distribution in the convenience-store channel,” said Chris Boever, CEO of Stryve. “This provides us important momentum towards our growth agenda, allowing us to reach a broader audience and provide consumers with healthier snacking options that taste fantastic. We believe that everyone deserves access to convenient and nutritious snacks, and this expansion helps us fulfill that mission.”

Elsewhere in meat snacks, beef jerky category leveled up in heat with a partnership between Jack Link’s, Minong, Wisconsin, and Frito-Lay, Plano, Texas. The brands collaborated to create Jack Link’s Doritos Spicy Sweet Chili flavored and Flamin’ Hot flavored Original beef jerky and meat sticks.

A new spice trend unfolded in 2023 with the launch of several cinnamon-flavored snacks.

“Hot and spicy, for over a decade, continues to be a hot commodity,” said Sally Lyons Wyatt, executive vice president and practice leader at Chicago-based research firm Circana, said at the 2023 Sweets & Snacks Expo. “But what has happened is, with more consumers snacking throughout the day, their palates are looking for a variety of different flavors of snacks. So when you try to do something a little different, you have a blank canvas.”

Cinnamon-flavored and -dusted snacks that rolled out this year include the new Kit Kat Churro from The Hershey Co., Hershey, Pennsylvania, and Cinnamon Dunkaroos from Minneapolis-based General Mills.

The Hershey Co. also created Dot’s Homestyle Cinnamon Sugar Pretzels to combine salty and sweet flavor profiles in a new way.

And Apple Cinnamon Chunk Nibbles, a nut-free crunchy snack mix featuring freeze-dried cinnamon apples and cinnamon crumbles from Troy, Michigan-based Chunk Nibbles, won best in show in the Most Innovative New Product Awards by the National Confectioners Association, the host of the Sweets & Snacks Expo.

Want to learn more about the snacks and candy category? Check out our event CRU in Nashville Feb. 28-March 1, 2024. Sponsors can gain 15 one-to-one meetings with qualified retailers.