DAIRY-DELI-BAKE 2005 2005-06-20

Roseanne Harper

MINNEAPOLIS -- More so than retailers, consumers increasingly view fresh vegetables, fruit, yogurt and other healthy foods as snack food, a researcher said at the International-Dairy-Deli-Bakery Association's show here.

In a study commissioned by IDDBA, Chicago-based Datassential found that today's consumers prefer healthy snacks, said Brian David Darr, the research company's managing director.

In an online survey of 2,500 consumers, he and his associates found that 90% of respondents consider health "at least somewhat important" when choosing a snack, and 90% consume at least one snack a day. What's more, just over 20% regarded "snack" in the traditional sense of chips, crackers and candy. Nearly 80% said other foods qualify, too, especially in small portions.

"We found that snacks are a key market driver rivaling meals," Darr said. "They've expanded in scope with the old definition no longer applying. Health and convenience are driving demand."

Of particular interest to retailers, nearly 95% of respondents said supermarkets are their main source for snacks and that they make a conscious effort at home to eat a healthy snack, Darr said. In fact, 40% of respondents said they buy snacks at supermarkets all the time.

"Retailers tend to overestimate the power of convenience stores as a competitor in the snack business. At the same time, they're underestimating the potential competition posed by club stores, drug stores and specialty markets," Darr said.

If they're on the go, consumers are apt to look for convenience and portability in their snacks, the research indicated. About 15% of all snacks are eaten while in the car, walking or otherwise in transit.

Interestingly, the statistics showed the percentage of respondents saying they eat at least one snack a day was higher than the percentage who eat breakfast or lunch. Two-thirds of respondents have a snack in the afternoon, and another 60% later in the evening. By contrast, just over 46% said they had a snack in the morning.

Healthy, convenient and flavorful are the top attributes consumers look for in snacks, according to the research. Yet, retailers and consumers have different definitions for snacks, and those differences could be hindering retailers from taking advantage of the merchandising opportunities, Darr said.

In companion research that involved 125 retailers, Datassential found retailers have a much narrower view of what a snack is. While only 20% of consumers surveyed defined snack in the traditional sense, 42% of retailers did. Thirty percent of consumers said a snack is anything other than a meal, but only 14% of retailers assigned that definition to snack.

"Retailers could be missing a big opportunity by focusing their attention on the traditional snack aisle," Darr said.

Busy consumers are eating more often during the day because it's more convenient and because they've heard that consuming several "small meals" during the day is healthier that eating three large meals.

"Controlling hunger throughout the day" was named by more than half [51.2%] of respondents as the reason they have a snack and 27.7% said it's "a convenient way to eat."

More than a fifth of respondents indicated they consciously eat several small meals a day.

But whatever the snack, access to it is paramount, Darr pointed out, because 57% said that when they want a snack, they'll "grab anything around." Nearly 33% said they'd go somewhere close by, but just over 10% said they'd go out of their way to buy a particular item.

When it comes to dairy, women tend to buy yogurt, cottage cheese and soy milk for a snack, while men favor milk, ice cream, and cheese and crackers, the research showed. Cheese is becoming more popular with all respondents, Darr said.

He suggested retailers make a conscious effort to redefine "snack" in their own minds and then educate the public on snack options. He advised retailers to consider how many of their fresh products could fit into different, healthy lifestyles. "Think about your products and their various healthy qualities. Low sugar, high fiber, high protein? Promote those qualities and leverage the link that eating several small meals is a 'good for you' thing to do."

Datassential's research also revealed the hot buttons for consumers seeking healthy foods -- low fat, few preservatives, not fried and reduced sugar. What's more, consumers indicated they've decreased their consumption of snacks that they don't deem healthy. More than half, when asked what they would change in "today's world of snacks," said they'd vote for "more healthy options."

"There's no doubt that snacks are essential occasions and a way to more volume food sales," Darr said.

"They should be treated with the same respect as major meals. Throw out the old definition. It's a different food, different times, different environment. If retailers don't change their focus, they'll be leaving money on the table."