Some salty snacks--of the healthy and decadent varieties--showed dollar sales increases of more than 50% last year. Restocking the salty snack racks every day is a chore that Dave Clarke doesn't mind doing in his 10,000-sq.-ft. grocery store in Dorchester, Ont. "On any day of the week, we have four or five permanent displays of chips and other snacks in spots all over the store," he says. "And every day our customers empty them out. I'm happy to fill them up again--this is a huge market, and it's a very profitable category."

With more than 81% of Canadians admitting to snacking on a daily basis (according to a 1999 poll by Angus Reid Group Inc.), snack foods are definitely on most people's shopping lists and every grocer's shelves. And the latest category trends offer something for both sides of the snacking equation, from the 65% who claim they prefer to snack on healthy food to the 58% who admit to indulging in "junk food." NPD Group's SnackTrack for the five months that ended in June 2000 showed that, while fresh fruit is the snack consumed most often by both adults and children, next on the list are potato chips and cookies, followed by chocolate candy, crackers, yogurt and granola bars.

Consumers have a wide variety of snacks from which to choose, but, clearly, the salty snack category is showing steady growth in grocery stores. Total category sales increases weren't phenomenal, with only 4% growth overall, but ACNielsen's MarketTrack for the 52 weeks ending December 2, 2000, shows that several segments within the category saw double-digit gains over the previous year. Still worth only a fraction of the top sellers (potato snacks and crackers), the other salty snacks that garnered huge dollar sales increases during 2000 included party mixes which increased 58%), multi/variety mixes (51%), rice and corn cakes (41%) and popped corn (36%).

Canadians Love to Snack. 81% snack daily Source: Angus Reid Group Inc., 1999 Poll 90.5% snack at least once per week Source: NPD Canada, National Eating Trends (NET) study. "The fact that these segments are still small indicates there is room for further growth," says Tabatha McIntyre, product manager for Humpty Dumpty Snack Foods Inc., based in Kitchener, Ont. "One way retailers can boost sales is by carrying several varieties and brands to give consumers more choice. Setting up secondary displays on end aisles and on shelves close to the till will help encourage shoppers to buy on impulse, too." It's also a good idea to include a mix of the two spectrums of salty snack consumption--the healthy side and the so-called "junk food" side.

"I've noticed that the healthier 'light' lines that offer less salt and fewer calories are selling well right now," says Clarke of Clarke's Food Market. "But, potato chips are doing OK, too, especially the new varieties that keep coming out. People like new things." This is a huge market, and it's a very profitable category.

The desire for healthier snack foods helped to boost dollar sales in the rice and corn cake segment by 41% last year. Quaker Oats has targeted women 18 to 49 years with their Crispy Minis, a savoury-flavoured rice chip that's smaller and crispier than the traditional rice cake. "It's low in fat and offers a tasty alternative to potato chips," says group product manager Julie Davis. "People these days are busy and shifting away from eating three meals a day to consuming several smaller meals or snacks. They are looking for a healthy way to keep their blood sugar up."

The good thing for retailers is that snacks like Crispy Minis provide incremental sales on top of other snack segments, adds Davis. "One in five households have purchased our products, and there is a big opportunity to increase sales." With a range of distinct flavours from sour cream and onion to cheddar, ranch and nacho--all dressed up in bright packaging--the products do well when promoted through customer sampling and eye-catching displays. And, as with other types of snacks, rice and corn cakes respond well to cross-merchandising with dips and salsas. "It's not a bad idea to create a low-fat snacking section for busy consumers," suggests Davis.

Manufacturers of traditional snack segments like potato chips and nachos are banking on attracting customers with exciting new tastes. "Let's face it," says McIntyre, "although we get a lot of questions about healthier snack food, if people want to eat chips, they don't care about the fat." But they do care about flavour. While sales of regular potato chips are declining, the flavoured varieties are driving growth, adds McIntyre. "This is especially evident in the U.S. market where flavour trends usually start and then eventually come to Canada." At one time, Ketchup and Dill Pickle flavours might have been considered "extreme," but they're now mainstream in the potato chip segment. Consumers are now looking for different and even more extreme tastes. To satisfy this demand, Humpty Dumpty brings out a "flavour of the month" several times a year. "There's definitely a market for them," McIntyre says. "We've brought out Salt and Pepper, Hot Dog and Caesar Salad flavoured chips, and they always sell out."

The makers of the Ol' Grandad's salty snacks have included strong tastes in their lineup as well. Targeted more at adults who enjoy snack foods, Ol' Grandad's potato chips feature traditional favourites such as BBQ and Salt and Vinegar, but also offer a mouth-searing Mexican variety made with jalapeño peppers. "Some young kids like the Spicy Jalapeño chips and eat them as a right of passage," says Judy Yack, manager of sales and marketing for Ol' Grandad's Snacks (1992) Inc., based in Cambridge, Ont. It's not a bad idea to create a low-fat snacking section for busy consumers. Besides taste, the unique manufacturing standards and the "drier and crispier" products are traits that Ol' Grandad's is promoting to differentiate itself in the highly competitive snack food market.

"Our products cost a bit more than others on the market," says company president Sam Silvestro, "but we have high-quality products and we don't use marketing gimmicks to sell them." There's also a side to Ol' Grandad's that might appeal to the more health-conscious snack shopper. Although many other potato chip manufacturers focus on the indulgent side of eating chips, the company's line of products also includes items with less fat. For example, it is targeting kids and women with a low-fat meat snack called Soft and Tender. Those who don't care about the fat content of their snack foods can chow down on the company's Pork Rinds, which come in Regular and BBQ.

One thing is certain, grocery retailers have to keep up on the ever-changing trends in salty snacks. "Everybody--from seniors to little kids--eats snacks," says Clarke. "We've got to stock different sizes and different flavours and keep our racks full. It's great for us--these are good margin products."

A regular contributor to Canadian Grocer, Sonya Felix is a freelance writer based in Toronto, Ont.

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