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Best Practices (Snacks)
During the 12 weeks ended Oct. 6, dollar sales of frozen snacks and appetizers edged up 0.6% to $920.02 million, reports Chicago-based market research firm Circana. Although unit sales slipped 0.2%, volume jumped 5.0%, highlighting a shift toward family and value size packages that offer heavy users in particular more bang for their buck. However, some manufacturers have introduced smaller “single-use” sizes with lower price points for shoppers whose weekly grocery budgets are limited. Do you have options for deal-seekers at both ends of the size spectrum?
Persistent demand for value is also reflected in the growth of private label, which continues to outperform the snacks and apps subcategory as a whole. But some manufacturers say retailers’ insistence on carrying too many brands of every type of snack could be limiting opportunities to grow their private label sales. For certain premium apps such as pigs in a blanket, for example, there’s no need for more than one brand — your own. In other segments, two brands that really resonate is probably enough, opening up space for more variety, particularly new innovation. In fact, manufacturers say a less-than-inspired assortment heavy on line extensions is one reason the category isn’t doing better, despite the growing snacking trend.
Manufacturers say ethnic snacks are on fire. Asian and Mexican remain popular, but keep an eye on up-and-comers such as Italian, which is huge in frozen meals but significantly underrepresented in snacks and apps. Products such as arancini, toasted ravioli and gnocchi nuggets have all hit the market in the past year. Have you added them to your set? Ethnic fusion is hot, too, creating demand for products with distinctly American fillings (think BBQ or pepperoni pizza) inside carriers such as phyllo dough or bao buns. Bold, spicy flavors are particularly popular, so make sure you’ve got options for those who like it hot.
“Newstalgia” is also a big trend, creating demand for comfort foods such as chicken pot pie and mac and cheese in snack form. Products like that make a great meal substitute, which is how many consumers are using frozen snacks, so make sure they’re merchandised alongside frozen meals and frozen pizza. (But do separate premium and value offerings to make shopping easier for consumers.)
Shoppers are also going ga-ga over co-branded items (Mike’s Hot Honey is everywhere lately), restaurant brands and celebrity chef offerings. If the category isn’t performing as well as you’d like, consider leveraging the power of some of those brands to draw shoppers to the set.
Another category trend that shows no signs of slowing is “poppable” mini and bite-size snacks (mini pierogi bites, mozzarella nuggets, etc.), so make sure they’re represented as well. Better-for-you (gluten-free, clean label, organic) is also big, so be sure you have plenty of options, especially for kids — and use shelf tags to call them out if they’re not in a separate set.
Most new frozen snacks include air fryer instructions. But if they don’t, you can provide that information at the point of sale via signage, shelf tags or QR codes. Those vehicles can also be used to share recipes and cooking tips. And don’t forget sampling for new items!
In addition to offering the right mix of products, retailers need to merchandise them properly. Manufacturers’ favorite suggestion is cross-merchandising frozen snacks with complementary products. Not only does it encourage the purchase of multiple items, solution selling makes consumers’ lives easier. Dips and sauces pair naturally with many frozen snacks (cauliflower wings with buffalo sauce, mozzarella sticks with marinara, mini tacos with salsa, etc.), but there are literally hundreds of other options — many in the frozen department. What about taking a page from pizza delivery’s playbook and cross-merchandise frozen snacks with frozen pizza? Or pair frozen dumplings with frozen stir fry for a complete Asian meal?
Secondary displays in high-traffic areas such as the beer aisle can encourage impulse purchases. But manufacturers say occasion-based displays — holiday entertaining, game day, book club, etc. — are a winning strategy. And don’t forget to include frozen appetizers in meal deals.
Finally, say manufacturers, retailers should promote frozen snacks and apps year-round, not just during peak seasons. These are “expandable consumption” products, so the more people buy, the more they eat. If you promote it, they will buy again and again. That’s why manufacturers also recommend multiples pricing (two for $7, three for $10, etc.).
