Salty, Sour and Funky

The category continues to deliver consistent sales as customers seek new flavors.

Salty, Sour  and Funky

February 2020   minute read

By Sarah Hamaker

Almost since the first convenience store opened, customers have been coming in for a salty snack, confident that their favorite—or a hot, new flavor—will be in stock.

“The category has had respectable growth in the channel, with a 3.6% bump in sales per store in 2018 over 2017,” said Jayme Gough, analyst for NACS, pointing to NACS State of the Industry data. “The category can be tricky to manage because you want to stock the classics that customers expect to see as well as a variety of new products or flavors to grab their attention.”

Salty Sales

In 2018, the convenience channel sold 33.31% of all salty snacks, according to Nielsen data. In 2018, salty snacks brought in 4.1% of in-store sales—the No. 6 slot following cigarettes, foodservice, packaged beverages, OTP and beer. The category also contributed 4.6% of in-store gross margins, making it the No. 5 spot overall.

“Salty snacks are staple items in c-stores and sell at a high velocity,” said Bob Clark, vice president of merchandising for Herr Foods Inc. “The growth rate for salty snacks year-on-year is stronger in c-stores than in traditional supermarkets, likely due to on-the-go eating, as well as c-stores evolving into a destination for prepared food.”

Industry Sales

Source: NACS State of the Industry Report of 2018 Data

Salty snacks have been selling well at Main Street General Store in Carsonville, Michigan. “In June, we brought in a wider variety and range of options in the category, which boosted sales,” said manager Kaylee Knaggs. “Salty snacks do particularly well for our location because chips are a quick, solid snack.”

At Angello’s Country Store in Turner, Maine, salty snacks deliver consistent performance. “It’s a solid category,” said manager Tracey Angello. Callihan’s Corner Store in Nova, Ohio, has a large selection of salty snacks that “sell well,” said shift leader Garrett Merle.

Brad Arens, owner of Brad’s Kwik Store in Montgomery City, Missouri, attributed the rise in salty snacks sales to suppliers regularly introducing new products. “Salty snack sales are up because people like to try new flavors,” he said.

Category Definition

Salty Snacks

+ Potato Chips
+ Tortilla Corn Chips
+ Other Salty Snacks
+ Nuts/Seeds
+ Puffed Cheese

+ Mixed
+ Crackers
+ Ready-to-Eat Popcorn
+ Pretzels
 

NACS category definitions can be used to establish performance benchmarks and a framework for retailers and suppliers to discuss market performance comparisons. Download the NACS Category Definitions and Numbering Guide-Version 7.2.

Salty snacks sales are up because people like to try new flavors.

Salty Trends

While the overall salty snacks category leans more indulgent than healthy, the category has evolved to include more healthful options with clean labels that emphasize the beneficial aspects of what is in the product. To answer that demand, Herr Foods has been simplifying its ingredients during the past several years and has introduced a range of better-for-you snacks with gluten-free options and non-GMO ingredients.

“As consumers shift away from traditional meals, snacking opportunities are more purposeful and can serve a functional benefit,” Gough said. “Plant-based salty snacks, such as chickpea puffs, seaweed chips or veggie straws, also can meet the needs of consumers with dietary restrictions or preferences.”

Angello’s Country Store stocks quite a few healthier snacks, including gluten-free and plant-based options, such as veggie straws. “We target that customer with our selection,” Angello said. “Sales stay consistent for those items, so we’ll continue to offer them.”

Main Street General Store has little in the healthier salty snacks line because customers prefer their standbys. “We have pretty standard salty snacks because those are the ones that sell,” Knaggs said.

Salty Flavor

The top salty snacks flavor remains hot and spicy. “Spicy flavors are popular, especially those with an international taste,” Gough said. “Regional flavors have garnered more interest and can provide customers a taste of home.”

Clark added, “The level of heat desired by consumers seems to keep rising.” For example, Herr’s Carolina Reaper-flavored cheese curls have been introduced into the c-store market.

Source: CSX; csxllc.com
Spicy flavors are popular, especially those with an international taste.

At Angello’s Country Store, hot and spicy salty snacks have been huge. “Spicy is still selling at Brad’s Kwik Store because some people really like the hot stuff,” agreed Arens.

Hot and spicy are a hot commodity at Callihan’s Corner Store as well. “We sell a lot of the hot and spicy salty snacks because it seems everyone wants a little kick to their chips,” Merle said.

Another trend is combining flavors in salty snacks. “Consumers are seeking a wide range of indulgent flavors, and manufacturers are using more flavors that have a lot of impact,” Clark said. “For instance, our Fire Roasted Sweet Corn Popcorn is unique and has seen sales continue to grow.”

Limited-time offers in salty snacks also keep consumers interested in the category. Last summer, Herr added several limited-time offers to its kettle potato chip line, including Tailgate Taquitos, Truffle & Parmesan and Grillmates Smokehouse Maple. “From the category management standpoint, the opportunity to bring in something new and unique helps drive new traffic to salty snacks,” Gough said.

“Regional and seasonal flavors in the category are popular with our customers,” said Knaggs. Main Street General Store takes whatever promotional or limited-time offer manufacturers send because customers frequently ask what’s new in the category. “The limited-time offers in particular generate excitement in salty snacks and bring in customers to try the new flavors,” she said.

“Our customers also like sour and salty, as well as funky flavors in high-end popcorn,” Angello said. In addition, Brad’s Kwik Store sells a lot of salty snacks that combine chocolate and salt.

Subcategory Performance

Source: NACS State of the Industry Report of 2018 Data

Salty Promotions

Given the high impulse nature of salty snacks, positioning them in prominent display locations and near the prepared foodservice and grab-and-go cases can spur sales. “Co-promoting snacks with sandwiches and beverages is a good way for c-stores to sell more snacks while helping to promote their prepared meal offerings,” Clark said. “C-stores do not need to discount salty snacks as much as other outlets because they are an immediate-consumption purchase.”

At Main Street General Store, customers can see the salty snack display at the back of the store when they enter. “It’s easily visible when they walk in, and we find that helps to keep the category top of mind for our customers,” Knaggs said.

It seems everyone wants a little kick to their chips.

Angello’s Country Store doesn’t actively promote the salty snacks category. “We keep it mostly in the chip aisle because it sells really well,” Angello said. That’s how Callihan’s Corner Store merchandises the category, too. “We don’t offer bundles or run a manufacturer’s special, but mostly we just keep the shelves stocked and the category sells itself,” said Merle.

Arens has his salty snacks in strategic places around the store, such as by the front counter and soda coolers, as well as on chip strips by the fountain drinks. “I like to get it in the main traffic areas and have the new stuff out in front to grab attention,” he said. He will bundle salty snacks with a foodservice offer on occasion but doesn’t do that on a consistent basis. Mainly, he focuses on making sure the category has several touchpoints throughout the store because that has been working for him.

A Salty Future

As consumers continue to move away from traditional meal occasions to on-the-go snacking, the salty snacks category should be a solid contributor to convenience stores. “Salty snacks will benefit from this trend well into the future,” Clark said. “C-stores will continue to see growth in salty snacks as retailers keep them highly visible in the store for impulse purchasing.”

Sarah Hamaker

Sarah Hamaker

Sarah Hamaker is a freelance writer, NACS Magazine contributor, and romantic suspense author based in Fairfax, Virginia. Visit her online at sarahhamakerfiction.com.

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