Salty Snacks - US - August 2008

TABLE OF CONTENTS

• Scope and Themes
• What you need to know
• Definition
• Data sources
• Sales data
• Consumer survey data
• Abbreviations and terms
• Abbreviations
• Executive Summary
• A slow growing, $15.9 billion market
• Which products compete with salty snacks?
• Potato chips and tortilla chips lead the market
• Supermarkets are major channel for salty snacks sales
• Children are an important market for snacks
• Frito-Lay leads the market
• New product launches
• Salty snacks almost universally popular
• Focus on children
• Brand preferences
• Opinions about salty snacks
• Market Size and Forecast
• Key points
• Are consumers shying away from "healthy salty snacks"?
• Mainstream natural and organic products are also not faring well
  • Figure 4: Total U.S. sales and forecast of salty snacks at current prices, 2002-12
  • Figure 5: Total U.S. sales and forecast of salty snacks at inflation-adjusted prices, 2002-12
• Wal-Mart sales
• Convenience stores
  • Figure 6: Convenience store sales and forecast of salty snacks at inflation-adjusted prices, 2002-07
• Competitive Context
• Crackers, rice cakes, and other salty alternatives
• Other rivals: Healthy snacks, sweet snacks, no snacks?
  • Figure 7: Foods chosen to satisfy craving for sweets, by age, April 2008
  • Figure 8: New product launches, salty snacks with chocolate, U.S., 2003-08
• Segment Performance
• Key points
• Potato chips and tortilla chips are strongest players
  • Figure 9: FDMx sales and forecast of salty snacks at current prices, 2002-12
  • Figure 10: FDMx sales of salty snacks, by segment, 2005 and 2007
• Segment Performance--Potato Chips
• Key points
• Potato chip sales stumble
  • Figure 11: FDMx sales and forecast of potato chips, at current prices, 2002-12
• Segment Performance--Tortilla Chips
• Key points
• Tortilla chips fare better than potato chips
  • Figure 12: FDMx sales and forecast of tortilla chips, at current prices, 2002-12
• Segment Performance--Snack Nuts and Seeds (Including Corn Nuts)
• Key points
• Health halo remains strong, but sales level off
  • Figure 13: FDMx sales and forecast of snack nuts and seeds (including corn nuts), at current prices, 2002-12
• Segment Performance--Popcorn
• Key points
• Popcorn sales decline in light of health issues
  • Figure 14: FDMx sales and forecast of popcorn, at current prices, 2002-12
• Segment Performance--Pretzels
• Key points
• Pretzels rebounded from low carb era, but sales slow again
  • Figure 15: FDMx sales and forecast of pretzels, at current prices, 2002-12
• Segment Performance--Cheese Snacks
• Key points
• "Better for you" products help sales
  • Figure 16: FDMx sales and forecast of cheese snacks, at current prices, 2002-12
• Segment Performance--Corn Snacks
• Key points
• Innovation helps, but market is still flat
  • Figure 17: FDMx sales and forecast of corn snacks, at current prices, 2002-12
• Segment Performance--Other Salty Snacks
• Key points
• A wide range of snack options
  • Figure 18: FDMx sales and forecast of other salty snacks, at current prices, 2002-12
• Retail Channels
• Key points
• Supermarkets are the major channel for salty snack purchases
  • Figure 19: Total sales of salty snacks, by retail channel, 2005 and 2007
• Retail Channels--Supermarkets
• Key points
• Supermarket sales show flat growth
  • Figure 20: FDMx sales of salty snacks at supermarkets, 2002-07
• Market Drivers
• Key points
• Snacking demographics
  • Figure 21: Household consumption of salty snacks, by key demographics, January 2007-November 2007
  • Figure 22: Population, by race and Hispanic origin, 2003-13
• Children and salty snacks
  • Figure 23: Households, by presence of children under age 18, 1996-2006
• Leading Companies
• Key points
• Frito-Lay products account for almost half of salty snack sales
• Private label sales remain strong
• A quarter of the market comprises smaller players
  • Figure 24: FDMx sales of leading salty snack companies, 2007 and 2008
• Brand Share--Potato Chips
• Key points
• Frito-Lay products control more than half the market
  • Figure 25: FDMx brand sales of potato chips, 2007 and 2008
• Brand Share--Tortilla Chips
• Key points
• Frito-Lay controls the segment
  • Figure 26: FDMx brand sales of tortilla chips, 2007 and 2008
• Brand Share--Snack Nuts and Seeds (Including Corn Nuts)
• Key points
• Kraft Foods' brands decline, while specialty players gain
  • Figure 27: FDMx brand sales of snack nuts and seeds (including corn nuts), 2007 and 2008
• Brand Share--Popcorn
• Key points
• ConAgra is biggest player
• Healthy brands not at the forefront
  • Figure 28: FDMx brand sales of popcorn, 2007 and 2008
• Brand Share--Pretzels
• Key points
• Snyder's of Hanover grows lead over Frito-Lay
  • Figure 29: FDMx brand sales of pretzels, 2007 and 2008
• Brand Share--Cheese Snacks
• Key point
• Frito-Lay is the market leader
  • Figure 30: FDMx brand sales of cheese snacks, 2007 and 2008
• Brand Share--Corn Snacks
• Key point
• Another Frito-Lay-dominated segment
  • Figure 31: FDMx brand sales of corn snacks, 2007 and 2008
• Brand Share--Other Salty Snacks
• Key points
• A great variety of products
• Healthy snacks do well
  • Figure 32: FDMx brand sales of other salty snacks, 2007 and 2008
• Brand Qualities
• Key points
• How Kettle Foods woke up the potato chip market
• A big two percent
• "People power" flavors
• Innovation and Innovators
• Key points
• Major trends in new product innovation
• Most innovative
  • Figure 33: New product launches, salty snacks, 2002-08 (August)
• Do you know your snack's pedigree?
• Focus on "healthier"
• The ethics of snack food
• Products for holidays ... and for kids
• Convenience
• Flavor trends
• Advertising and Promotion
• Overview
• Snacks for health
  • Figure 34: Television ad for Blue Diamond, "More than a Snack," 2008
  • Figure 35: Television ad for Chex Mix, 2008
  • Figure 36: Television ad for Emerald Nuts, 2008
  • Figure 37: Television ad for Flat Earth Chips, 2008
  • Figure 38: Television ad for Fritos, 2008
  • Figure 39: Television ad for SunChips, 2008
• Snacks for fun
  • Figure 40: Television ad for Cheetos, 2008
  • Figure 41: Television ad for Doritos, 2008
  • Figure 42: Television ad for Lay's, 2008
  • Figure 43: Television ad for Planters Nuts, 2008
• Snacks for profit ... and charity
  • Figure 44: Television ad for Doritos Spicy Sweet Chili Tortilla chips, 2008
  • Figure 45: Television ad for Lay's chips, 2008
• The Consumer: Household Usage of Salty Snacks
• Key points
  • Figure 46: Personal and household usage of salty snacks, June 2008
• Personal Usage of Salty Snacks
• Key points
  • Figure 47: Consumption of specific salty snacks, by age, June 2008
  • Figure 48: Consumption of specific salty snacks, by race/Hispanic origin, June 2008
  • Figure 49: Consumption of specific salty snacks, by presence of children in household, June 2008
• Consumption Habits: Day Parts
• Key points
  • Figure 50: Consumption of salty snacks, by day part, by age, June 2008
  • Figure 51: Consumption of salty snacks, by day part, by race/Hispanic origin, June 2008
  • Figure 52: Consumption of salty snacks, by day part, by presence of children in household, June 2008
• Consumption Habits: Frequency
• Key point
  • Figure 53: Consumption of salty snacks, by frequency, by age, June 2008
• Children and Snacks
• Key points
• When and how often kids and teens eat salty snacks
  • Figure 54: Frequency of consumption of salty snacks by children, June 2008
  • Figure 55: Teenagers' and children's consumption of salty snacks, by day part, June 2008
• Parents' opinions about salty snacks
  • Figure 56: Opinions about salty snacks and children's diets, June 2008
• Brand Preferences
• Key points
• Adults
  • Figure 57: Top Household Brand Preferences, Selected Salty Snacks, January 2007-November 2007
• Teenagers
  • Figure 58: Top brand preferences of teenagers, selected salty snacks, January 2006-October 2006
• Children
  • Figure 59: Top brand preferences of children, selected salty snacks, January 2006-October 2006
• Opinions about Salty Snacks: Flavors/Varieties
  • Figure 60: Opinions about salty snacks, by age, June 2008
• Opinions about Salty Snacks: Health Issues
• Key points
  • Figure 61: Opinions about health issues and salty snacks, by age, June 2008
• Appendix: Other Useful Consumer Tables
• Personal consumption of salty snacks by income
  • Figure 76: Consumption of specific salty snacks, by income, June 2008
  • Frequency of consuming salty snacks (per week)
  • Figure 77: Consumption of salty snacks, by frequency, by race/Hispanic origin, June 2008
  • Figure 78: Consumption of salty snacks, by frequency, by presence of children in household, June 2008
  • Opinions about salty snacks
  • Figure 79: Opinions about salty snacks, by race/Hispanic origin, June 2008
  • Figure 80: Opinions about salty snacks, by income, June 2008
  • Figure 81: Opinions about salty snacks, by presence of children in household, June 2008
  • Figure 82: Opinions about health issues and salty snacks, by gender, June 2008
• Appendix: Trade Associations