Guilt-free Indulgences

Consumers that crave something sweet increasingly seek better-for-you and gluten-free options, and the market is flush with items to satisfy what they desire. Indulging in something sweet after a meal has become second nature for many consumers. However, health concerns surrounding high sugar intake and obesity—in addition to evolving dietary restrictions and preferences like gluten-free and vegan—has given many consumers pause as they reach for an after meal delight. Instead of blindly indulging, many consumers are considering how to satisfy their sweet tooth in a healthy, yet still tasty way. Increasingly, they are turning to gluten-free and free from products to meet this need. “As consumers become more and more educated they want it all—great taste, high-quality ingredients and a product that’s just plain good for you,” says Joy Bauer, founder of Nourish Snacks, based in Port Chester, N.Y. “Consumers are requesting these products and companies are responding.” More companies are, in fact, entering the better-for-you sweets market to meet the growing dietary needs and preferences of consumers. A variety of healthier, popular dessert and snack items like baking mixes, cookies, ice cream, cakes, brownies, popcorn, snack bars and chips are now available—and gaining a strong consumer following.   The interest in better-for-you sweets may have been initially sparked by health concerns over too much fat and sugar intake, however, Mike Ganey, vice president of marketing for Four Oaks, N.C.-based House-Autry Mills, which makes Our House branded gluten-free baking mixes, says the better-for-you category, and sweets in particular, has evolved. Now, consumers are looking for more than just less sugar and fat. “With the discussion of obesity and sugar intake, this is a category that gets quite a bit of attention from consumers,” Ganey says. “However, there are always more better-for-you categorizations coming along. What’s happening recently are preferences in a couple of areas.” According to Ganey, there are four areas consumers are focusing on: gluten-free—partially because it meets a medical necessity for those suffering from celiac disease, but also because it is perceived to be healthier—vegan, non-GMO and products made with whole grains. “There’s a constellation of benefits that consumers are seeking,” Ganey says. “It used to be good enough to have one benefit, but now I see consumers are asking for more of the free froms to be combined. They give preference to products that check more off their checklist requirements.” Many industry observers agree that consumers are increasingly looking for items that have non-GMO ingredients and are free from other ingredients that are perceived as unhealthy. “The biggest trend today is the certification of non-GMO ingredients,” says Mark Eisenacher, senior director of marketing at Back to Nature Foods, based in Naples, Fla. “Accordingly, we are very focused on achieving non-GMO Project Verification for our lineup. We also know our customers are looking for products created with wholesome grains, real nutrition and the delicious flavors of nature—free from artificial ingredients.” With this in mind, Back to Nature offers a line of cookies that are made with better-for-you ingredients like whole grains, cane sugar, sea salt and Rainforest Alliance Certified Cocoa. The cookies come in several varieties, including Mini Chocolate Chunk, Honey Graham Sticks and Mini Vanilla Waffers in grab-and-go single-serve packages. The company also has plans to introduce two new gluten-free cookies in the near future.   While consumers have come to expect higher quality ingredients, among other qualifications, from their sweets and desserts, observers say that the success of products in this category hinges on taste. Flavor is something House-Autry Mills took very seriously as it developed its Our House gluten-free baking mixes. Company officials say the products deliver, particularly with one of its flagship items, a chocolate brownie mix. “We worked very hard over a two year period to develop a product that doesn’t have an off flavor or an off aroma to it,” Ganey says. “Consumers tell us our chocolate brownies are as close to the real thing that they will find.”   In addition to producing high-quality, delicious treats, companies are also aiming to provide healthier, gluten-free versions of the classic desserts consumers have grown to love, like brownies or popular cookie flavors. Among Friends, an Ann Arbor, Mich., based manufacturer of handcrafted, gluten-free baking mixes, was inspired by a classic treat when it began development on its latest flavor, Darcy’s Delish Old-Fashioned Chocolate Chip Cookie. “We decided that we just needed a classic chocolate chip cookie,” says Lizann Anderson, co-founder of Among Friends. “We knew a classic chocolate chip cookie sells the most in the marketplace.” The company used Tollhouse’s chocolate chip cookie for guidance in order to create a baking mix that has less sugar. “Our secret ingredient turned out to be a little bit of light molasses powder,” Anderson says. “It gives it a butterscotch note that I was looking for, because the oat flour is naturally nutty and yummy. It’s never going to be exactly like Tollhouse, but it’s a much healthier version.” In addition to creating its own twist on a classic, Among Friends has also converted its entire line of baking mixes to gluten-free. Previously, five of the brand’s nine mixes were gluten-free, and now the entire line will be. “The reception of our gluten-free products has been so positive that we wanted to open our entire whole grain product line to gluten-free fans and beyond, and provide for additional growth in the category down the road,” says Suzie Miller, co-founder of Among Friends. Sweets On-the-Go Consumers are not only seeking something sweet after dinner; they are increasingly indulging between meals, which means demand for sweeter snacks, like granola, almonds, snack bars and even chips are on the rise. Company officials at Playa Vista, Calif.-based popchips say sweet items are driving 27% of the snacking category’s growth, according to the IRI State of Snacking Report. “People are snacking more now than they ever have,” says Marc Seguin, chief marketing officer at popchips. “People have changed the way they eat; instead of eating three meals a day, many are snacking throughout the day. We know our customers are looking for something in the afternoon that will satisfy a craving.” In order to appease consumers that are craving something sweet, popchips, which is known for its savory line of popped chips, recently introduced a Cinnamon Twist Sweet Potato flavor. The vegan-friendly option combines sugar, cinnamon and a hint of apple on a sweet potato chip. The company also plans to introduce another sweet SKU—an organic corn chip with a classic boardwalk kettle corn flavor—later this year. “We wanted to provide a balanced chip to snack on that would deliver on the sweet craving and would be better for you,” Seguin adds. Convenience is likely an indicator as to why sweets are driving more than a quarter of the snacking category’s growth, observers say. “Our busy lifestyles mean we’re always on the go,” Bauer says. “Whether we need to push through a little longer before sitting down for a meal or we need some extra fuel to power through a hectic day, we’re relying on snacks more and more. Our snacks hit all of the marks: they’re delicious tasting, good for you and convenient.” Nourish Snacks offers a variety of sweet snacks which includes: Monkey Love, chocolate-banana granola bites; Cocoa Loco, dark chocolate chia-oat clusters; CINNsational, cinnamon-spiced apples and almonds; and Miss Popular, half-popped corn kernels and dark chocolate chips. The company’s latest sweet additions are Mocha-mazing, cocoa-dusted almonds and mocha granola, and Coco’nilla Crunch, crunchy chia-coconut granola bites. All of the company’s snacks are portioned in single-serve bags for less than 200 calories. Jack Goethel, vice president of sales at Nature’s Bakery, based in Reno, Nev., agrees that convenience is playing an important role in the growth of sweet snacks. “The trends we’re seeing is that people want things to be more natural and more convenient,” he says. In an effort to meet that demand, Nature’s Bakery, which recently introduced a line of gluten-free fig bars in four flavors (pomegranate, blueberry, raspberry and fig), packages its products in portion packs. “If you’re going for a bike ride or on a hike, you don’t need to pack an extra lunch bag and worry that the rest of the [snack] portion will go stale,” Goethel says. “If you’re ready to go, we’re ready to go with you.” Hit the (Right) Spot Manufacturers are also ready and willing to help retailers market their products at the store level, and the best way for retailers to boost sales, say observers, is by trial. “Once the customer tastes the product and knows they enjoy it, they are more likely to buy,” Eisenacher says. Back to Nature, Nourish Snacks, Among Friends, Nature’s Bakery and Our House are among the companies that consider sampling paramount to the success of their products. Each company offers retailers in-store trials, among other marketing materials. Merchandising is also something retailers need to consider when adding these items to its shelves, say observers. “If someone is a conventional grocer and they want to increase the sales of their natural products, the products should not be on the bottom shelf, it’s preferred that they’re at eye level,” says Goethel. “You also don’t want just one SKU, you need enough shelf space so that if someone isn’t looking directly at the product you can catch their attention out of the corner of their eye.” Many observers say that merchandising better-for-you sweets and snacks within the gluten-free or natural sections is the best strategy, because it makes the products easy to find. However, if space is available, some suggest integrating these items with other desserts and snacks. “If space is available, I would put the products in both sections because you have to intercept the consumers where they are,” says Ganey. “It certainly wouldn’t hurt to mix them in line with other baking products.”   Retailers can expect more to come from this category in the future—and smart retailers will pay close attention to evolving consumer preferences to meet their needs at the store level. Manufacturers are doing the same. “The category of gluten-free products is here to stay,” Ganey says. “It’s not a fad, it’s a trend. There will probably be some other free from benefits that consumers seek down the road. It pays for all good food manufacturers to stay in touch with consumers and be ready for the next free from category and decide whether it’s a fad or trend. Smart companies jump on trends.”