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SMART SNACKING

The days of indiscriminate snacking are dwindling for many shoppers who are paying closer attention to the nutritional content of the foods they eat.Before they drop a bag of cookies or salty snacks into their shopping carts, they're checking for ingredients they want, like whole grains, and don't want, such as trans fats."Whether or not they're adopting a wellness lifestyle, consumers are reading

The days of indiscriminate snacking are dwindling for many shoppers who are paying closer attention to the nutritional content of the foods they eat.

Before they drop a bag of cookies or salty snacks into their shopping carts, they're checking for ingredients they want, like whole grains, and don't want, such as trans fats.

"Whether or not they're adopting a wellness lifestyle, consumers are reading labels more," said Jay Jacobowitz, president of Retail Insights, a natural-products consulting firm based in Brattleboro, Vt.

The increased availability of pre-cut fruit and vegetables is helping the store's perimeter cater to these shoppers. But retailers are also emphasizing how dry groceries can be part of a healthy diet.

Stop & Shop/Giant Food conveys the benefits of better-for-you snacks via the consumer column in its weekly circular. The retailer emphasizes the fact that there are plenty of whole-grain products available in bread, cereals, crackers and other categories, while water, soy drinks and 100% fruit juice are good snacking beverages.

"The Center Store is offering a lot more whole-grain and portion-controlled snacks," said Paulette Thompson, health and wellness manager for the Quincy, Mass.-based unit of Ahold USA.

While light snacks represent a small share of snacks overall, they're outpacing category growth, according to Information Resources Inc.

Light salty snacks (excluding low carb), which have a 2.4% category share, climbed 13% in dollar sales for the 52 weeks that ended Nov. 27, 2005, compared to the total category's growth of 1.5%. Likewise, light cookies grew 15.9% vs. a 0.1% drop for the total category. Light cookies have a 5.3% share.

"Given the low share that light products currently

hold, there is strong upside potential," IRI stated in a report.

Manufacturers, in turn, have rolled out better-for-you versions of their popular snack foods, among them Frito-Lay light chips and Nabisco 100-calorie packs. The new 100-Calorie Right Bite cookies from Kellogg's and 100-calorie microwave popcorn packets from General Mills also show promise, according to IRI.

"The big consumer packaged goods companies have operated on a profit strategy rather than health strategy for years," said Jacobowitz of Retail Insights. "Now's that's changed, and they're offering better-for-you items."

Jacobowitz cited PepsiCo's Frito-Lay unit as a good example. The company eliminated trans fat from its entire line of snack chips, a move that covered more than 35 brands and 150 products. It did so by converting from hydrogenated oils to corn and sunflower oils. In addition to being trans fat-free, its products are said to be low in saturated fat and high in monounsaturated and polyunsaturated fats.

Kraft also is moving in the wellness direction, having recently launched Nabisco 100% Whole Grain cookies and crackers, each of which is baked with 100% whole grain and lists zero trans fat per serving. The new line includes Wheat Thins crackers and Fig Newtons cookies.

CPG manufacturers have been quick not only to reformulate products to remove trans fats, but also to seek to introduce whole-grain products that don't sacrifice taste, according to IRI.

"CPG manufacturers recognize that translating 'better-for-you' initiatives into profitable sales growth requires an understanding of the complexities of consumers' eating behaviors and ongoing identification and monitoring of untapped opportunities," said Janet Eden-Harris, IRI's global chief marketing officer, in a statement.

Government initiatives have helped to influence consumer attitudes about snacking. New labeling rules require packaged foods to list trans fat content and the presence of common food allergens. The recently revised food pyramid recommends reducing saturated and trans fats and consuming more whole grains.

Weight management is the main reason that consumers control their diet, but consumers are also managing their diets to control health conditions like high cholesterol, diabetes and heart disease. As baby boomers age, these areas will grow in importance, and increasingly affect the food choices people make.

"People are no longer buying products out of the Center Store without thinking of the consequences," Jacobowitz said.

Food retailers are responding by incorporating snacks into consumer health and wellness programs.

Snacks play an integral role in Penn Traffic's Fresh Ideas consumer education program, said Ali VanGorden, the registered dietician for the Syracuse, N.Y.-based chain.

VanGorden stresses the fact that packaged snacks can be included in a healthy diet, provided that they meet an individual's nutrient needs.

"Snacks should count toward the recommended daily servings of all the food groups," she said.

VanGorden suggested Craisins dried cranberries and Sunkist packaged fruits, among other products, noting that one-quarter cup of dried fruit counts as one serving of fruit.

VanGorden also advocates canned fruit packaged in natural juice and no-sugar-added applesauce, which comes in single-serve plastic cups.

While nutritious snacks take priority, the average person has about 200 optional calories, creating opportunity for portion-controlled packages of cookies and salty snacks, like Nabisco's 100-calorie packs.

"Once the nutrient goals have been met, a few discretionary calories are OK," she said.

VanGorden encourages snackers to consider breakfast cereals, on its own or as a topping on yogurt. Penn Traffic's upcoming Fresh Ideas newsletter will discuss the advantages of the wave of whole-grain cereals hitting the market.

Whole-grain foods have strong potential because while nearly half of all consumers try to include whole grains in their diets, the majority are not eating the recommended three servings per day. Consequently, consumers, especially those over age 50, will respond particularly well to good-tasting whole-grain products, according to IRI.

Ingles Markets in Asheville, N.C., emphasizes that whole-grain cereals like Kashi are a good snack because of their protein and fiber content, said Leah McGrath, the chain's registered dietician.

McGrath is a big supporter of nuts, among other options, because they are a good source of protein and fiber and contain heart-healthy monosaturated oils, vitamins and minerals. More people are snacking on nuts, she said.

While main meals provide the most important nutrients of the day, planned snacks are good because they supply healthy vs. empty calories.

"In some cases, snacking can be beneficial because it prevents people from running to the vending machine to get junk food," she said.

Ingles uses its company website and in-store radio system, among other communication vehicles, to promote healthy snacking.

Kids are an important snacking audience for retailers.

Stop & Shop/Giant stores are filled with kid-aimed snacks, such as Stretch Island 100% Fruit Leathers, which are sold in some Giant stores and all Stop & Shops.

"We encourage healthy snacks for kids in order to address obesity issues," said Thompson of Stop & Shop/Giant.

Being that it's hard for kids to forgo salty snacks and cookies, Thompson said 100-calorie packs are a sensible option.

Carrie Taylor, registered dietitian for Big Y Foods, Springfield, Mass., agreed.

"With the portion-controlled bags, people have an endpoint a lot faster than they would if they were eating out of a family-size bag," she said.

Big Y is developing more better-for-you snacks, including private-label whole-grain bagels and tortilla chips. The retailer also highlights lesser-known snack foods like baked beans, for use in a dip.

Nutritious Nibbles

$304 million sales of whole grain crackers

17% - increase in dollar sales during 2005

$115.8 million sales of fat-free potato chips

24.5% - jump in dollar sales during 2005

Source: AC Nielsen, 52 weeks ending Dec. 31, 2005, in food, drug and mass (excluding Wal-Mart Stores)