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At the intersection of the plant-based and snacking trends, innovative new dips and spreads drive continued growth.

During the 12 weeks ended Dec. 29 (versus the same period a year ago), dollar sales of refrigerated dips and flavored spreads (i.e. hummus) rose 5.1% (to $263.24 million) and 0.9% (to $173.37 million), respectively, according to Chicago-based market research firm IRI (iriworldwide.com). Manufacturers give much of the credit to the snacking trend. “The old fashioned concept of three meals a day is no more,” claims Jay Whitney, president of Phoenix-based FoodStory Brands, maker of the Fresh Cravings (freshcravings.com) lineup. “Younger consumers, in particular, are enjoying multiple ‘smeals’ throughout the day, and dips, salsa and spreads offer a lot of what they’re looking for: they’re quick, easy, affordable and, increasingly, nutritious,” thanks in no small part to a plethora of new plant-based options.

“Excitement around plant-based and vegan products is definitely helping to spur growth, not only in the dips category, where a lot of new entries are gaining trial, but in hummus and salsa, which have always been plant-based,” confirms John McGuckin, chief customer officer at Delphos, Ohio-based Lakeview Farms (lake viewfarms.com), owner of the Tribe, Simply Fresh and Rojo’s brands. He adds that Panera’s recent debut of grain bowls with hummus is also helping raise awareness of other ways the product can be used. (And Sabra’s Super Bowl commercial – a hummus category first – sure didn’t hurt!)

ALTERNATE BEANS, NEW FLAVORS IN HUMMUS

Wholly Guacamole introduces ready-to-serve bowls that go directly from fridge to table.

Although it’s already well-established, the hummus segment is welcoming a couple of innovative new products that McGuckin believes will boost household penetration beyond the current 26%. The first combines two macro trends: portable, single-serve packaging and dessert-type flavors with less sugar than other sweet dips. Dessert flavors represent only a small fraction of hummus sales currently, says McGuckin, but they drove 27% of category growth. To that end, Tribe recently rolled out Sea Salt Caramel, Cake Batter, Vanilla, Peanut Butter and Chocolate varieties, the latter of which contains just 5 grams of sugar per serving compared to 25 grams in Nutella.

But since on-the-go consumption is so important to today’s consumers, the company will offer the Chocolate flavor in a portable snack pack that combines hummus with pretzels for dipping. (It will also offer both Classic and Red Pepper varieties with pretzels.) Expected to hit shelves next month, “Portable, sweet hummus is a great way to grow the category,” says McGuckin.

Alternate bean hummuses are also an important growth driver because they often lend themselves to new usage occasions. For example, says brand manager Nathan Everett, many consumers use Tribe’s first alternate bean hummus, Black Bean, as a healthier, high-protein substitute for queso and cheese sauce with tortilla chips, tacos and other Mexican fare. As a result, the company has high hopes for its April launch of two additional alternate-bean varieties: Sriracha Carrot and Spicy Yellow Lentil.

PLENTY OF UPSIDE FOR PLANT-BASED

Plant-based varieties are also making news outside the hummus category where manufacturers see all kinds of potential for growth. Across outlets, “Plant-based milk comprises 25% of the milk category,” says Doug Radi, CEO of Boulder, Colo.-based Good Karma Foods (goodkarmafoods.com). But despite huge gains recently, “Plant-based dips account for less than 1% of the refrigerated dips category.” So the demand is there, but it’s not being met. For its part, Good Karma recently debuted plant-based Sour Cream, French Onion Dip and Ranch Dip free of all major allergens, MSG and carrageenan – but packed with live and active cultures (a category first, according to Radi).

Fresh Cravings introduces almond- and cashew-based vegan dips in bold, consumer favorite flavors that rival conventional offerings.

While the Good Karma lineup is made with coconut oil and pea protein, the biggest newsmaker in plant-based dips is products made with nuts. According to Whitney, sales were up a whopping 43.7% during the 52 weeks ended Oct. 5 – and that was before the debut of Fresh Cravings’ almond- and cashew-based lineup later that month. “From fiber and protein to healthy fats, nuts offer so many benefits,” he says. “Combine that with the other superfood ingredients we include like tahini, hemp seeds and chia, and these dips pack quite a nutritious punch.”

Plus, they come in all of consumers’ favorite bold flavors: Kickin’ Queso, Zesty Ranch and Creamy Dill (cashew-based) and Creamy Garlic, Spicy Garlic and Smokehouse (almond-based), all available at Walmart. A second collection of organic nutbased dips includes three savory varieties plus a pair of sweet flavors (Creamy Vanilla and Chocolate Mousse, both cashew-based). Next up for the brand: French Onion, Spinach Artichoke and Buffalo flavors, all expected to hit later this year, says Whitney.

“People sometimes think they have to sacrifice taste with plant-based dips, but that’s not the case,” he continues. “We want this to go mainstream, so we don’t see ourselves competing against other plant-based brands; we’re competing against traditional versions of these dips.” How confident is Whitney that they’ll measure up? “I think plant-based dips will become the next hummus.”

CONVENTIONAL DIPS STILL INNOVATING

While new types of dips and spreads are grabbing most of the headlines, more traditional varieties continue to gain ground as well. For example, one of the original plant-based dips, guacamole, has seen its sales grow an average of 8% year over year, reports Diana Pusiri, senior brand manager for Saginaw, Texas-based Wholly Guacamole (eatwholly. com). The product boasts clean, simple ingredients, no added preservatives and plenty of healthy fats and fiber, but the company recently introduced a new ready-toserve bowl format that makes it even more convenient.

“Consumers simply open it up and put it out on the table versus scooping it into a separate bowl,” she explains. Available flavors include Classic, Chunky, Spicy and Hatch.

There’s also been a lot of activity in the indulgent, cream cheese- and sour cream-based dairy dip segment where well-known center store brands are attempting to gain a foothold with co-branded fresh offerings. For example, Duke Brands (dukebrands.com), Greenville, S.C., recently partnered with Hidden Valley Ranch to produce a line of dips and chicken salads that will hit deli sections starting next month.

“We’ve also rolled out some branded and private label [versions of] Fried Pickles and Ranch, which reimagines a Southern favorite – fried pickles with a side of Ranch dressing – as a shareable dip,” reports vp of marketing and product innovation Matthew Haskell. He notes that retailers need to be careful not to overemphasize healthy dips. Despite growing demand for callouts like plant-based, high protein and low-carb, “There’s still a place for indulgence, and there are still plenty of customers out there who just want great tasting products they can share. Cauliflower is great,” he adds, “but I still want chicken in my Buffalo dip.”

Other tips include cross-merchandising dips with complementary items in secondary displays, especially during key selling seasons like the Super Bowl and March Madness; utilizing signage for plant-based dips in particular to help educate consumers about how they can be used, what they pair well with, etc.; and placing plant-based dips beside their conventional counterparts instead of in a separate section so consumers can easily see all of their options.

FLAVORED DIPS & SPREADS

Sales in supermarkets, drugstores, mass merchants, military commissaries and select club and dollar stores combined for the 12 weeks ended Dec. 29, 2019, according to IRI (iriworldwide.com), the Chicago-based market research fi rm. Percent change is versus the same period a year ago.