Snacks: Fun and Functional

By Angela Altass

Keeping up with healthy snacking trends and giving consumers the options they are looking for can be tricky and sometimes confusing. However, there is one thing in particular that c-stores have that in abundance that snackers are seeking – convenience.

Euromonitor’s Snacks in 2023: The Big Picture report indicates that rising health consciousness is a significant trend observed across most product categories. Post-pandemic, Canadian consumers are shifting their focus to their health and seeking products that offer functional benefits while avoiding those that are detrimental to their overall wellbeing.

The report indicates that a resurgence in on-the-go snacking has encouraged manufacturers to focus on packaging, particularly smaller portion sizes that are more suitable for everyday consumption. Convenience stores and forecourt retailers have been steadily gaining market share, sometimes at the expense of traditional retailers, states the report, with the resurgence of on-the-go snacking driving this shift as consumers seek convenient options.

“Consumers want to eat better but they do not necessarily choose the better options all the time,” says Rhonda Goldberg, president, Oh! Naturals. “I believe having options in the convenience store that are better-for-you are very beneficial. There are a lot of dietary restrictions and not everyone wants to go to a larger grocery store.”

Oh! Naturals describes their product line as fun and functional snacking on the go and Goldberg encourages convenience stores to use similar wording to let their customers know they have options available in the store.

“I think fun and functional might be better wording than healthy,” comments Goldberg. “Consumers want a snack that will satisfy their cravings and know that it is a better-for-you choice so they do not feel so guilty.”

The future of food is functional, especially in packaged foods, says Krista Anderson, founder and CEO, Healthy On the Go.

“I think that after the pandemic, people are more health conscious and are looking for these types of products,” says Anderson. “Convenience stores are missing a huge opportunity to increase incremental sales if they are not inviting in that customer who is searching for healthier options.”

People have to be very cautious when it comes to healthier-for-you claims on packaging, says Anderson.

“We live in a land of marketing,” says Anderson. “It might say it’s vegan on the front of a package but that doesn’t necessarily mean it’s healthy. It’s about turning the package over and looking at the ingredients. Is each ingredient coming from nature without any change at all, straight from the source? That’s how we look at it.”

Having a separate section deemed as healthy snacks helps customers navigate and educates them about the products, says Anderson, whose company creates Healthy On The Go display solutions for Canadian retailers in partnership with their distributors.

“You have nine seconds to talk to consumers and help them make their buying decisions,” says Anderson. “In that time, our displays can help them quickly navigate and make their choice.”

Mintel’s 2023 Better For You Eating Trends report notes that 60 per cent of consumers say they would rather see added benefits from whole food ingredients than isolated nutrients and 58 per cent said they believe that what you add to your diet is more important than what you avoid.

When asked what they consider when choosing a new food or drink product, 46 per cent cited brand, suggesting that consumers like to find a brand and stick with it.

“People aren’t trying new types of snacks or experimenting with things,” says Warren Brown, founder, Spark Bites. “They’re buying what they know.”

Brown says that healthy snacks should be separated from other options in the store but notes that this can be challenging for stores with a smaller footprint.

Portion sizes and packaging can also affect the success of products.

“We’re seeing a lot of interest in the product if it’s in smaller sizes and we are looking into doing a refresh and change in packaging to better reflect the healthy aspects of the product,” says Brown.

During morning traffic, convenience stores can pair healthy snacks with coffee as an opportunity to drive incremental sales, says Asad Amin, head of syndicated solutions, Ispos. However, he notes that the afternoon hours bring the largest daypart for snack sales.

“The needs throughout the day are different and there continues to be a blurring of the lines between meals and snacks,” says Amin. “Mini-mealing is a common factor for those skipping larger meals that also leads to grazing throughout the day. We do observe the demand for healthy and nutritious snack options has increased when compared to 2020, driven by the afternoon and evening occasions.”

The healthy snack market is driven by younger cohorts who are generally more conscientious of what they consume, with less processed products and generally sweeter snacks tending to skew towards healthier fare, says Amin.

Convenience store customers are no longer exclusively looking for just the bite size snack, particularly when they are looking for a healthy snack, says Michael Cronin, executive director, strategy and partnerships, The Great Canadian Meat Company.

“That’s why we also make available 75g or 80g snack/meal replacement options as well as the 80g pepperoni and cheese option that is made with real cheese,” says Cronin. “Customers looking for a healthier-for-you snack are not likely to be looking for an edible oil product masquerading as cheese.”

Consumers are interested in products that are high in protein, says Cronin.

“It comes down to protein,” he says. “Great Canadian Meat Company snacks continue to pack in less carbohydrates or fillers and more protein per bite. High carbohydrate snacks continue to decline in popularity as many consumers look for healthier and more functional snacking options. As consumers evolve and become smarter about their snacking choices, it’s important that your customers see those healthier-for-you options front and centre in your store. Having these items at the front of the store, or at least in high traffic, high visibility areas, also tends to drive repeat business as many consumers have expressed that they will stop going to specific retailers that don’t offer better-for-you options.”

Effective product placement holds paramount significance for retailers engaged in the merchandising of healthy snacks, says Samuel Tenenbaum, key account manager, KIND Canada.

“Within the realm of convenience, where consumers are typically individuals leading busy lives, navigating errands and commuting to and from work, prioritizing convenience is imperative,” says Tenenbaum. “To cater to these dynamic consumer needs, it is essential to strategically position healthy snacks alongside conventional snacking categories such as confectionery and salty snacks. This deliberate placement offers consumers a spectrum of options, empowering them to choose the type of snack that aligns with their preferences and sustains them throughout their hectic day. The implementation of this strategic approach has yielded remarkable results for our retailers, underscoring the efficacy of this methodology in enhancing choice and satisfaction.”

Consumers are looking for real ingredients and a variety of functional benefits, says Tenenbaum, adding that KIND Canada recently launched Dipped Clusters chocolate covered nut clusters, pairing wholesome ingredients with decadence to deliver a healthy and tasty snack.

“Snacking has changed considerably over the years as the evolution of the snacking industry is intricately linked to consumer demands,” says Tenenbaum. “We are now in the information age where in five seconds or less you can obtain comprehensive details about a snack, including specifics about ingredients and the manufacturer of the snack, as well as reviews from other like-minded consumers.”