Finding flavor: Snack leaders lend marketplace insights

BACK TO ALL NEWS

Finding flavor: Snack leaders lend marketplace insights

16 Apr 2024

Annie Hollon

Annie Hollon is a journalist, copywriter and social media strategist from the Dallas, Texas area. She found a love for magazine writing during her time at the University of Alabama where she graduated with a Bachelor of Arts, double majoring in public relations and English. Beyond writing, you can find her expanding her library, attempting to teach herself the guitar and trying new hobbies.

DALLAS — Consumers are in their snacking era, but not just any snack will do. With a wider assortment available in the market and a new generation taking a wedge of purchasing power, snack companies have to keep a keen eye on evolving consumer interests and innovate accordingly.

In the education session Brand Level View of the Marketplace, which took place during SNX, held April 14-16 in Dallas, Sally Lyons Wyatt, global executive VP and chief advisor, consumer goods and foodservice insights at Circana, moderated a panel of snack industry leaders who provided their perspectives on consumer behavior, trends and sources of new ideas.

Panelists included Erik Sword, brand director of salty snacks, Conagra Brands; Megan Reamer, co-founder of Jackson’s Food Co.; Justin French, senior director of R&D North America for PepsiCo; and Dina Reagan, associate VP, snacks R&D of Campbell Snacks.

The shift toward value-oriented channels

Sword shared that while some tried-and-true consumer preferences such as convenience are driving product innovation, another key influencer is related to economics. As a result, he noted a slight shift for value-oriented channels.

“We’ve seen consumers migrate over into less expensive, more efficient snacks, so we’re trying to be more mindful of dollar range,” he said. “We’re pulling back a bit from the old lifestyle habits and behaviors … We want to make sure we have the offerings that still give them the experience and brands they love but in a way that fits into their budget.”

Over at Campbell Snacks, convenience remains a key trend, especially when it comes to the “snackification” of meals, where meals become snacks and vice versa. In reviewing the company’s snack portfolio and assessing how products can lean into key factors such as taste or better-for-you characteristics, Reagan noted the team can better serve those experiences from a food and packaging standpoint. One example includes the brand’s recently released Goldfish Crisps, which provide a familiar but different snacking experience.

French shared that the PepsiCo team uses its role as a snack leader to look at consumer preferences through a human-centric lens.

“We want to have products that meet them where they are …” he said. “Our focus right now is just really trying to make sure we have that breadth of portfolio available. It’s tough, but when someone wants a product that makes them feel better for a day, we’re going to use these consumer preferences in the testing and work that we’re doing. It’s really good to have that problem solved for the day.”

“I feel like we’re always in search of the next Flamin’ Hot. We’ve been pretty good with that, but it’s not going to sustain us forever, so we’ve got to try and find those new areas.” - Justin French | senior director of R&D North America | PepsiCo

Interest in better-for-you foods creates opportunities

Reamer noted that for Jackson’s Food Co., consumer interest in unique flavors drives how the company expands its market offerings. With avocado and coconut oils playing an important role in the brand’s products, the interest in better-for-you (BFY) foods is opening conversation regarding future products.

“Our clean ingredient product of just three ingredients — sweet potato, avocado oil and sea salt — continues to be our best performing SKU,” she said. “I think what we’ll end up doing is leaning into that on an innovation level as well. So, different formats and textures, but try and keep this clean ingredient deck because it seems to be what customers are still asking for.”

As consumers spend time in the snack aisle and are faced with a variety of offerings, French emphasized that shoppers are taking a closer look at what is in a snack before taking it to the register. In turn, the company’s R&D team is adjusting accordingly.

“We want to make sure we have great-tasting products, but they are smarter,” he said. “Consumers are looking at things or understanding ingredients and nutrition facts panels in a completely different way than we ever thought. So we’re making those changes with that in mind.”

Unique, multicultural flavors still trending

Reagan echoed the other panelists’ emphasis on flavor, sharing that her team draws inspiration from online trends, AI and the culinary landscape.

“We go though many iterations of different product examples, concepts and prototypes, and the passion that goes around seeking flavor and inspiration across many different avenues really translates how we do things,” she said. “You have to have a passion, but you also have to have an open mind and powerful team to execute.”

For Reamer, an internal flavor suggestion process is one way Jackson’s Food innovates through flavor, with consumer contact through mediums such as social media offering the company’s R&D team a direct look at their consumers’ perspectives.

Over at PepsiCo, French said multicultural flavors are a major opportunity when it comes to innovation. In reaching into the culinary space and blending cultural flavors such as Asian and Hispanic, the company is able to create products that trigger nostalgia for consumers and fortify its portfolio. One recent example of this is the extended Doritos Dinamita line.

“There are so many flavors out there and for us, we feel like we’ve got to carve out new spaces,” he said. “I feel like we’re always in search of the next Flamin’ Hot. We’ve been pretty good with that, but it’s not going to sustain us forever, so we’ve got to try and find those new areas.”

Sourcing and crafting innovations comes down to one key component: collaboration.

“It’s super important to be able to collaborate,” Reagan said. “The more input you have, the better the outcome.”

Advertisement

BACK TO ALL NEWS