JUNK-LESS FOOD

KAREN DEMASTERS

Facing government scrutiny and a growing diet-conscious public, retailers are making room on their shelves for more healthy-for-you salty snacks.

This new level of health awareness has made traditional snacks such as potato chips and crackers less appealing, but instead of giving up snacks, consumers are demanding substitutes, Center Store executives told SN.

"Sales of healthy snacks are up nationally, and we find that any type of healthy-for-you item does well," said Roger McElroy, grocery buyer for Straub's Markets, which has four units in and around Clayton, Mo. "There is a demand for shelf space from manufacturers with new products, as well as from consumers."

The list of reasons for changing snack-food formulas has grown longer over the past 18 months. An estimated 32 million Americans are on some kind of high-protein/low-carb diet, according to a Harris Interactive poll done last summer. The federal government's newly announced war on obesity is focusing on trans fatty acids and the serving sizes listed on Nutrition Facts labels. In the snack category, the combination has put a squeeze on traditional, full-flavor items. Specialty manufacturers are popping up to fill the demand for low-carb snacks and foods, and mainstream companies are introducing new lines of products.

Frito-Lay, a division of PepsiCo, has set an ambitious goal of eliminating all artery-clogging trans fats from its chips and snacks. The company also wants at least half of its new foods and beverages to be aimed at nutrition-conscious consumers. In keeping with that policy, set by Steven Reinemund, the new chief executive officer, Frito-Lay, recently launched a major advertising campaign to get its trans fat-free message to the public. The company had already come out with low-fat potato chips and baked potato "crisps."

It also owns Rold Gold pretzels, which have salt-free and low-fat varieties, and recently introduced new Doritos and Tostitos that have half the carbohydrates of the traditional chips.

Straub's McElroy said he is waiting for more healthy products that also taste as good as the old, indulgent items. The chain serves a high-end, gourmet market.

"We have introduced veggie crisps that are like multi-colored potato chips, but lower in fat and carbs, and low-fat pretzels do well," McElroy said. "We have baked potato chips and low-fat chips."

Typically, Straub's holds taste demonstrations when a new item is introduced; the product also receives special merchandising space in-aisle or on an endcap, depending upon the size of the package. However, the influx of line extensions and new products requires the retailer to keep better track of what's selling.

"We usually do not add space to the category," McElroy said. "We remove something else that is not selling as well and put the new product in."

Generally, retailers mark their healthier products, but until standards are set for carbohydrate levels, most manufacturers are being careful to avoid using terms that mimic those already regulated, such as those denoting levels of fat, sodium or calories. "Carbohydrate-free," "low-carb" and "reduced-carb" are technically not legal terms as yet and cannot be used on labeling, according to a spokesman for the Food and Drug Administration, Washington. Manufacturers are avoiding the problems until standards are set by saying foods are good for "carbohydrate-conscious consumers" or that they can be used as "part of a low-carbohydrate diet."

Three new lower-carbohydrate items are on the way to the shelves at Schnuck Markets, based in St. Louis, according to Paul Simon, spokesman for the chain, which has 100 stores in six states.

"Two new Doritos and a cheese puff by Frito-Lay for dieters and carb-conscious eaters are going to be added to the shelves," Simon said. "We will add those along with the low-fat and salt-free pretzels. What we have noticed recently are a lot of labeling changes on items that have been out before. Now, manufacturers are telling consumers what the benefits are."

Simon told SN new products are put on an endcap or into a dedicated four-foot section within the snack aisle. Once the introductory period expires, the items are moved back onto the regular shelves.

"Ten years ago, it was a desire to eat less fat. Now, it's low carb. I don't know if that will last," he said. "It will probably peak and then level off, but the desire to eat healthier is going to be with us for a long time."

Wild Oats, Boulder, Colo., agrees and stocks nothing but natural and organic products in its 102 stores, and always stresses the health benefits of foods. The stores recently launched a "carb-conscious" campaign.

"We have a huge signage system throughout the store that marks anything that has 10 carbs or less per serving," said Tracy Spencer, a spokeswoman for the chain. "We have also removed all trans fats and products with hydrogenated oils from our shelves."

Pepperidge Farms is taking the hydrogenated oil out of its Goldfish snack crackers, as are Carr's Water Crackers, Spencer noted. Wild Oats also has its own private-label snack foods, including water crackers, tortilla chips and potato chips. The stores stock a large variety of nuts, rice crackers and cakes.

"We have relaunched our bulk package line of private-label nuts, seeds and trail mixes, and they do very well. We have Wild Oats tortilla chips made with organic corn and organic microwave popcorn," said Laura Coblentz, Wild Oats' director of marketing. "We do special displays out-of-section for new items, and have displays for holidays. We do tasting demonstrations, and we use coupons to promote the items."

Providing information for consumers also is important. The chain's customers tend to be more educated and health- and fitness-conscious, and stores strive to offer as little or as much information as they want.

"We have fliers at the front of the store to help them navigate the store, and we have kiosks where they can research health notes," Spencer said. "Also, our staff is very well informed about our products."

One of the newer entries in organic crackers that are free of trans fatty acids is Late July Organic Snacks, by the same family-owned company that invented natural Cape Cod Potato Chips. Based in Hyannis, Mass., Late July Organic Snacks has produced the first USDA-certified organic crackers in saltine, rich and cheddar cheese flavors.

Introduced on the market in the fall of 2003, Late July Organic Crackers are available nationwide in natural food stores like Wild Oats, as well as traditional chains Big Y Foods, Stop & Shop, Shaw's Supermarkets and Giant Food.