CANDY

& SNACKS

2022
CATEGO
RY
DIGEST
 h e
T wer
pCoategory
of m en t
a ge
Man
Hershey is revolutionizing
category management.
From multiple fulfillment and check-out
options, to queuing and front-end planning,
Hershey is revolutionizing category
management to stay ahead of changing
consumer behaviors, and maximizing
growth opportunities for retailers.

Drive results with the

snacking
powerhouse
Join the Conversation:
The-Hershey-Company
 › EDITOR’S NOTE
INSIDE CANDY

Your Candy
06 Retailer Perspective
Nonchocolate peg bags and take-home
packages are driving growth.

and Snacks
08 Candy Data
See where the gains and losses are
across the major candy categories.

Cheat Sheet
11 Post-Pandemic Trends
Trends to watch as this year progresses.

13 Chocolate Candy
What’s driving sales now?

A
14 Product Trends
lot happens in a year in any given product Novelty trends that cropped up while
category: companies merge, new products America was sheltering at home.
are launched, consumer trends shift. It’s a lot
to track.
CSP’s Candy and Snacks Category Handbook curates SNACKS
our top-level articles, trends and data in these product
segments to give category managers and others
studying the center aisles of the convenience store
a convenient and comprehensive glimpse into these 16 Retailer Perspective
channel staples. New products remain key after a year that
In this handbook, you get an at-a-glance look at changed package sizes and plan-o-grams.
scan-data trends for candy and snack products, as well
as sales trends, news, year-end wrap-ups and more.
You’ll see what’s driving chocolate sales, how
18 Snacks Data
See where the gains and losses are
interest in plant-based foods are changing snacks across the major snack categories.
and how the pandemic altered the course of product
development and consumer interests.
This is a year’s worth of how suppliers and retailers 22 State of Snacking
are attacking the candy and snack categories. Keep The latest in packaging, flavor and
it around all year to help you determine where we’ve ingredient trends.
been and where we’re going as you evaluate new
products, marketing efforts, merchandising, trends 26 Foodsmart’s Mission
and more. A retailer embarks on a goal to deliver high-
quality, healthier snacks.
Enjoy,

S T E VE H O LT Z
28 Meat Snacks
Hybrid flavors and plant-based proteins
Content Director
dominate.
sholtz@winsightmedia.com

31 Retailer Opportunity
More consumers are snacking—and during
all dayparts.

C S P C AT E G O RY D I G E S T 3 CANDY & SNACKS

 FINE-TUNING THE
CHECKOUT:
HOW SHOPPERS
PRIORITIZE CHOICE
SPONSORED CONTENT FROM OUR PARTNER THE HERSHE Y COMPANY
A
s the pandemic loosens
its grip on consumer
habits and preferences,
retailers are prompted
to reevaluate their customers’
needs. At the paypoint—whether
assisted or self-checkout—
shopper priorities have shifted,
as other needs join the ranks
alongside the efficiency of the
transaction.
This Q&A with The Hershey
Company dives deeper into
the intricacies of shopper
preferences at checkout.
1) What’s the definition of
“choice?” What does it mean that
consumers want choice at retail?
While many of consumers’ needs
have remained relatively consistent
throughout the pandemic, demand
for choice has increased dramatically.
Alongside evergreen demands such
as efficient shopping and quick
transactions, having a variety of
options for what to buy and how to
buy it has come to the forefront of
consumers’ expectations. This doesn’t
stop at offering a robust selection of
products; consumers want control
over their shopping experience and
checkout method, too. In 2021 alone,
two out of three shoppers tried a new
shopping method, according to data
from WD Partners and Hershey.
2) What is driving consumer demand
for choice at checkout?
Consumers continue to raise their
standards for convenience and flexibility
at the c-store. According to Edge by
Ascential’s 2020 report, The Future
of Impulse Tracker for the Hershey
Company, 83% of customers say
convenience while shopping is more
important now than it was five years
ago. In order to satisfy these customers,
offering choices throughout the shopping
experience and checkout can be a helpful
strategy.
Offering shoppers this kind of flexibility
benefits retailers, too. Not only can it help
boost customer satisfaction as shoppers
tailor their experiences in the store, but it
can also encourage more of-the-moment
purchases.
3) What’s causing convenience
retailers to invest in self-checkout?
Self-checkout can be mutually beneficial
for the shopper and the retailer—it can
enhance the shopper’s experience while
driving operational efficiencies and
decreasing labor demands for the retailer.
A significant majority—77%—of shoppers
say they like self-checkout, citing it as
a timesaver, according to a survey by
RetailCustomerExperience.com.
In addition, self-checkout can offer
retailers some relief from current labor
challenges, keeping transactions quick
and seamless without devoting employee
hours to the register.
4) Beyond paypoints, what are some
other ways that retailers can offer
choice?
Regardless of the shopper’s choice for
checkout, they expect to be offered the
same shopping experience. For example,
consumers’ interest in self-checkout
declines when the terminal doesn’t contain
items for purchase as a typical assisted
checkout lane would.
Being able to reward themselves at the
end of their shopping journey is integral
to many shoppers’ satisfaction with the
overall experience and is thus important
for maintaining loyalty. Make sure to offer
the most in-demand front end items—such
as candy, gum, mints, salty snacks and
lighters—from shoppers’ favorite brands to
drive impulse sales.
5) Do checkout options help or hurt
unplanned purchases?
While efficiency is always in demand,
shoppers aren’t altogether opposed to
queueing at checkout. In fact, with some
strategizing, retailers can use the queue as a
way to enhance shoppers’ experiences with
an expanded assortment of front-end items
to peruse.
According to insights gathered by The
Hershey Company, c-store shoppers
underscore the importance of variety
within the product assortment at checkout.
By offering an optimized assortment,
having the right flow and working through
standardized planograms, Hershey reports
higher shopper satisfaction while shopping
those dedicated spaces.
 h
T were
pIo
c o n i c
of s
Bra n d

Drive results with the

snacking
powerhouse
Join the Conversation:
The-Hershey-Company
CANDY & SNACKS › CANDY RETAILER PERSPECTIVE

Creating In spring 2020, Peter Kempton

Jr. wanted to create a spark. The

‘Memorable
category manager, center store, for
Westlake, Ohio-based TravelCenters

Moments’
of America encouraged TA store
managers to crank up the creativity
machine and develop dynamic,
impulse-inducing merchandising
CateRetailers seek to build excitement
programs to support June’s National
around confection in ’22, want supplier Candy Month. Identify initiatives to
innovation built on quality over quantity match the fun and flamboyance of
By Steve Dw yer
the category itself, he requested.

C S P C AT E G O RY D I G E S T 6 CANDY & SNACKS


I M
t worked well in 2020 and hit new
heights in 2021 when COVID-19
restrictions were relaxing.
Going forward, he says, mer-
chandising candy with more fun
is now Kempton’s north-star ap-
proach to drive growth for both everyday and
seasonal selling—all to support a category
that enjoys double-digit sales numbers for
nonchocolate formats.
K
empton also is eager to see suppli-
er innovation return to its prepan-
demic days, with an emphasis on
new-product quality over quantity.
“We want promotions to come to life and
create memorable moments for guests,” says
Kempton, who has been with TravelCenters
of America for 11 years and center-store cat-
egory manager for more than five years.
The timing of Kempton’s challenge
coordinated with TA’s collaboration with
suppliers and the National Confectioners
Association (NCA) to provide store man-
agers with more license to embrace more
“At the end of the day, I see
c-stores as being the ‘concession
stand’ for adult candy buying.”
C S P C AT E G O RY D I G E S T
CANDY & SNACKS › CANDY RETAILER PERSPECTIVE
creative monthly merchandising plans.
Fast-forward to 2021, as more pandemic
restrictions were lifted, Kempton was “even
more energized” to push the envelope. “We
became very creative with endcap displays.
One store manager blew up balloons to make
it festive. Some bought materials from craft
stores to create cool replicas of candy for end-
caps,” says Kempton, who oversees Travel-
Centers’ three store brands: TA, TA Express
and Petro Stopping Center.
The initiative landed Kempton the 2021
Confectionery Leadership Award from Wash-
ington, D.C.-based NCA, and he was a finalist
for CSP’s 2022 Category Manager of the Year
(CMOY) in the center-store category.
Nationwide, strategies around price, pro-
motion and display helped chocolate amass
$3.16 billion in sales in c-stores in 2021,
increasing dollars 8.9% and units 4.7%,
according to data from Chicago-based IRI.
Nonchocolates—a smaller segment at $2.64
billion within the channel—operated in
more rarefied air by registering 20.6% and
11.2% growth, respectively, across dollars
and units.
7 CANDY & SNACKS
any suppliers backed off innova-
tion in 2020 and instead focused
narrowly on their core brand
cultivation. Of course, the definition of “in-
novation” is subjective. “Innovation isn’t a
case of more SKUs but deeper than that; one
way is it’s compelling packaging,” says Tim
Young, category manager, center store, for
FiveStar, an 80-store chain owned by New-
comb Oil Co., Bardstown, Ky., and another
CMOY award finalist.
“The new M&M’s Album Art pack is an
example,” he says. In that case, M&M’s has
created a collection of packages inspired by
popular music album covers. “That level of in-
novation can push the needle forward quicker
in the post-pandemic,” he says.
Kelley Gutierrez, senior category man-
ager, candy and snacks, center store, for
Franklin, Tenn.-based MAPCO Express and
three-time CMOY winner, sees nonchocolate
suppliers “following the market and under-
standing that people demand innovation
for sour, fruity and gummy varieties. Skittles
Gummies are a great example, and so is what
we see with Hi-Chew. The brand has been
around awhile but had not been as relevant
with younger consumers like now. Kids seek
bold innovation for both sour and fruity.”
Early in 2021, suppliers approached
Kempton “with up to 20 new SKUs, but we
had a problem just selling core SKUs, so we
had to back off their secondary flavors. A
year later, it’s still a case of less is more with-
in the innovation pipeline. It’s great to drive
trial with new items, but the core is what
CANDY & SNACKS › CANDY DATA
Top Line Candy
C-store sales, 52 weeks ending Dec. 26, 2021

After two years of candy unit sales declines, fortunes turned around nicely in
2021 in most segments. Chocolate candy sales grew 4.5%, and nonchocolate
was up. And as masks disappeared, breath freshener sales turned around, up
3.5% in convenience stores, according to IRI.

SEGMENT C-STORE SALES PCYA* UNIT SALES PCYA*

($ MILLIONS) (MILLIONS)

Chocolate $3,165.4 8.9% $1,642.4 4.7%

< 3.5 ounce $2,612.1 7.9% $1,422.7 4.5%
sells. Flagship Reese’s will always prevail as part of
the 80/20 selling rule.” > 3.5 ounce $441.3 15.0% $161.2 7.6%
Young is eager to continue leveraging FiveStar’s Nonchocolate $2,640.1 20.6% $1,511.3 11.2%
mobile app to push candy impulse buying. “We’re Gum $838.5 5.8% $427.9 (3.6%)
working on enhancing it,” he says. “We’ve already
Breath fresheners $176.5 6.2% $81.2 3.5%
been able to capitalize on our 12 Days of Xmas candy
program and March Madness [promotion]. We now
want to delve deeper because I think, from an incen- Latest Quarter: Chocolate UPCs
C-store sales, 13 weeks ending Dec. 26, 2021
tive standpoint, you have to give your customers an
urgency with candy.” It hurts to see sales of popular candy brands such as M&M’s Peanut and Twix
decline. But a year after some of the best-selling UPCs of those brands saw dou-

O
ble-digit declines in 2020, most recovered nicely during the fourth quarter in
f course, since the pandemic was declared, c-stores. In unit sales, M&M’s Peanut was up 9.2% and Twix up 33.5%, while the
new confection merchandising trends have full chocolate-candy segment grew 2.8% in unit sales, according to IRI.
shaped up. Core items are more the norm. UPC C-STORE SALES PCYA* UNIT SALES PCYA*
Meanwhile, new customers discovered c-stores can be ($ MILLIONS) (MILLIONS)
the go-to option for candy and snacks, and premium Reese’s Peanut Butter
chocolates found a home in sets. $45.9 12.6% 20.9 6.7%
Cups (2.8-oz.)
Long the domain of specialty stores, TA/Petro com- Snickers (3.29-oz.) $29.6 4.1% 13.9 (3.4%)
mitted to building its premium chocolate portfolio.
M&M’s Peanut
“We found that consumers aren’t reluctant to spend (3.27-oz.)
$26.3 14.9% 12.0 9.2%
money and trade up to larger packages,” says Kempton.
Twix (3.02-oz.) $21.9 37.5% 10.2 33.5%
The expansion of premium is “something new to
many c-stores, and once again was part of consumers Snickers (1.86-oz.) $19.6 7.7% 12.8 2.4%
gravitating to the c-store in 2020 rather than, say, a spe- Reese’s Peanut Butter
$18.2 24.5% 8.2 17.3%
cialty retailer. The increased traffic helped people see Cups (2.8-oz.)
that premium items were a convenient buying option. Reese’s Fast Break
$17.4 3.7% 7.9 (2.0%)
With these products, there’s also more price elasticity (3.5-oz.)
and a gifting component.”

* Percent change from a year ago | † Including UPCs/brands/families not shown

Reese’s Sticks (3-oz.) $16.9 2.4% 7.7 (2.8%)
Another TA technique was focusing on premium Reese’s Peanut Butter
$16.1 15.8% 10.5 8.8%
change-makers. “The idea was to have consumers Cups (1.5-oz.)
give trial to, say, Lindt Truffles or Ghirardelli Squares, M&M’s Peanut
$15.8 25.5% 10.3 18.5%
so we put a merchandising spotlight on the smaller siz- (1.74-oz.)
es. Customers got hooked and would later trade up to Total† $787.4 9.1% 395.4 2.8%
larger packages.”
FiveStar became involved in the premium choco-

4
late segment in 2019, dedicating a full shelf to varieties

%
Independent Insight
such as New York-based Niagara Chocolates, says
Young. One way premium chocolate can more easily
integrate into FiveStar sets is through consolidation,
Young says. For example: Hershey’s acquired Lily’s
Confectionery in May 2021, and it sparked direct-store
delivery scale. Decrease in unit sales
of chocolate candy
“We want to always provide assortment and var- in c-stores in 2020,
iety,” says Young. “At the end of the day, I see c-stores according to IRI
as being the ‘concession stand’ for adult candy buying.”

C S P C AT E G O RY D I G E S T 8 CANDY & SNACKS

 CANDY & SNACKS › CANDY DATA
Distributor Data:
Where the Gains Are
C-store sales, 52 weeks ending Dec. 26, 2021
Nonchocolate Candy Shipments
Fourth-quarter 2021

After a year when convenience-store customers’ sweet tooth for Gummy fruit snacks shipped by McLane Co. stood out in fourth-quarter 2021
nonchocolate candy dipped by 4.6% through the height of pandemic with units sold per store per week up 31% in c-stores and travel centers.
lockdowns, unit sales jumped 11.2% in 2021. Segments leading the way
SEGMENT APSW*** APSW*** PCYA*
included plain mints, up 8.5%; chewy candy, up 10.5%; and novelty candy, (UNITS) (UNIT GROWTH)
up an astounding 30.7%, according to IRI, Chicago.
Bagged candy peg 125.83 30.81 32.4%
CANDY TYPE C-STORE SALES PCYA* UNIT SALES PCYA*
($ MILLIONS) (MILLIONS)
Nonchocolate standard 28.61 1.80 6.7%

Chewy candy $1,875.4 19.6% 1,021.0 10.5% Nonchocolate king 49.34 6.78 15.9%

Novelty $328.8 45.5% 186.1 30.7% Novelty candy 15.07 0.65 4.5%

Licorice box/bag $139.0 12.3% 59.4 7.2% Bagged value 7.48 (4.45) (37.3%)

Specialty nut/ Stand-up pouches 36.35 7.66 26.7%

$107.8 4.5% 66.3 (4.2%)
coconut candy Gummy fruit snack 12.95 3.10 31.4%

* Percent change from a year ago | ** Including types not shown | *** Average sales per store per week | **** Growth greater than 500% | † Including UPCs/brands/families not shown
Hard sugar $92.8 10.7% 119.8 4.8% Theater pack candy 4.41 0.55 14.1%
Plain mints $76.9 12.1% 49.0 8.5% Bagged candy laydown 4.60 0.70 18.0%
Total nonchocolate** $2,640.1 20.6% 1,511.3 11.2% Source: McLane Co.

Chewy Candy
Source: IRI

C-store sales, 52 weeks ending Dec. 26, 2021

Latest Quarter: Nonchocolate
Most major chewy candy brands saw double-digit sales growth in c-stores in
2021. The full category grew unit sales by 11.2%, according to IRI.
C-store unit sales of nonchocolate candy grew nearly 10% in 2021, with eight of
the top 10 UPCs experiencing double-digit growth or better, according to IRI. BRAND C-STORE SALES PCYA* UNIT SALES PCYA*
($ MILLIONS) (MILLIONS)
UPC C-STORE SALES PCYA* UNIT SALES PCYA*
($ MILLIONS) (MILLIONS) Skittles $206.1 34.8% 99.2 22.9%
Haribo Gold Bears Assorted Haribo $164.0 23.1% 75.3 19.2%
$10.6 5.3% 4.9 1.0%
(5-oz.)
Starburst $163.8 6.5% 76.6 1.2%
Life Savers Gummies 5 Flavors
$9.9 29.0% 3.2 18.0% Life Savers Gummies $159.9 31.8% 57.1 24.0%
(7-oz.)
PayDay (3.4-oz.) $9.9 39.2% 4.4 31.1% Airheads $148.7 15.4% 112.0 10.9%
Nerds Sweet and Tangy (5-oz.) $9.2 **** 3.3 **** Sour Patch $145.2 16.2% 63.7 11.8%
Life Savers Gummies Collisions
$8.3 43.6% 2.7 29.8% Trolli $140.4 14.8% 61.3 9.8%
(7-oz.)
Jolly Rancher Assorted Fruit Private label $107.7 15.4% 59.5 4.0%
$8.1 42.2% 2.7 36.7%
(7-oz.) SweeTarts Ropes $95.3 35.8% 42.6 27.3%
Trolli Sour Brite Crawlers
$8.0 3.4% 3.5 (2.8%) Sour Punch $62.9 33.8% 33.4 24.8%
Assorted (5-oz.)
Skittles Assorted Fruit $7.6 28.0% 3.4 20.9% Total† $1,875.4 19.6% 1,021.0 10.5%
Skittles Wild Berry (4-oz.) $7.3 48.2% 3.3 41.7% Source: IRI

Life Savers Wild Berry

Gummies (7-oz.)
$6.8 38.8% 2.2 25.8% Novelty Candy
C-store sales, 52 weeks ending Dec. 26, 2021
Total† $647.6 20.7% 358.7 9.9%
Source: IRI Novelty candy sales improved drastically compared to 2020, with a 45.5%
increase in c-store dollar sales and a 30.7% increase in unit sales, per IRI.
BRAND C-STORE SALES PCYA* UNIT SALES PCYA*

30.7
($ MILLIONS) (MILLIONS)

%
Nerds $78.5 166.0% 37.4 118.7%
Kidsmania $23.7 65.2% 13.4 58.3%
Baby Bottle Pop $22.8 (3.5%) 11.0 (6.8%)
SweeTarts $21.7 17.5% 14.2 13.3%
Push Pop $21.5 10.9% 11.1 7.5%
Total† $328.8 45.5% 186.1 30.7%
Jump in unit sales of novelty candy in c-stores in 2021, which came Source: IRI
on top of a 5.6% increase the previous year, according to IRI

C S P C AT E G O RY D I G E S T 9 CANDY & SNACKS

 CANDY & SNACKS › CANDY DATA
Chocolate Brands: v

Greater Than 3.5 Ounces

C-store sales, 52 weeks ending Dec. 26, 2021 Gum Trends
Many larger candy bars saw double-digit growth in c-stores in Gum unit sales remained in decline in 2021 but recovered somewhat from the
2021. Milky Way unit sales blossomed 12.1%, Butterfinger 19.6% double-digit drops of the previous year, according to data from IRI.
and Milk Duds 21.0%, IRI data shows. Meanwhile, private-label
brands grew 18.5% a year after declining 6.7%. Gum Brands
C-store sales, 52 weeks ending Dec. 26, 2021
BRAND C-STORE SALES PCYA* UNIT SALES PCYA* BRAND C-STORE SALES PCYA* UNIT SALES PCYA*
($ MILLIONS) (MILLIONS) ($ MILLIONS) (MILLIONS)
M&M’s $71.1 25.6% 19.6 9.3%
Wrigley’s sugarless $306.5 7.7% 133.9 (0.9%)
Butterfinger $39.7 26.1% 18.1 19.6%
Trident sugarless $139.4 5.2% 73.3 (1.1%)
Milky Way $38.8 15.7% 17.9 12.1%
Ice Breakers sugarless $83.5 16.6% 19.6 12.3%
Hershey’s $31.5 18.6% 9.4 11.0%
Orbit $77.7 (1.2%) 41.6 (8.2%)
Snickers $28.8 1.7% 12.5 (4.0%)
Wrigley’s regular $72.7 (6.7%) 75.7 (15.5%)
Kit Kat $22.5 29.4% 5.1 11.5%
Sugarless gum† $700.7 6.6% 305.3 (2.0%)
Private Label $13.7 20.7% 4.8 18.5%
Regular gum† $137.8 1.5% 122.6 (7.4%)
Mounds $12.8 12.4% 5.9 8.8%
Milk Duds $8.9 25.3% 4.5 21.0% Total gum †
$838.5 5.8% 427.9 (3.6%)

Total† $441.3 15.0% $161.2 7.6% Source: All charts this page IRI

Plain Mints Trends

Sales of mints roared back in 2021. Following a year of masked indifference,
Chocolate Brands: Less Than 3.5 Ounces consumers sweetened their breath to the tune of a 12.1% increase in dollar
sales in c-stores, according to IRI data.
C-store sales, 52 weeks ending Dec. 26, 2021

C-store unit sales for smaller chocolate candies grew 4.5% in 2021, according Breath Freshener Brands
to IRI. Significantly, Kinder products exploded 27.0%, pushing it into the top 10 C-store sales, 52 weeks ending Dec. 26, 2021
small-chocolate brands in c-stores for the first time. BRAND C-STORE SALES PCYA* UNIT SALES PCYA*
* Percent change from a year ago | † Including UPCs/brands/families not shown

($ MILLIONS) (MILLIONS)
BRAND C-STORE SALES PCYA* UNIT SALES PCYA*
($ MILLIONS) (MILLIONS) Mentos $53.2 18.3% 35.3 14.2%
Reese’s $610.6 14.5% 312.5 10.7% Life Savers $15.8 3.8% 6.8 (3.6%)
M&M’s $376.4 11.0% 201.9 7.6% Sathers $3.8 (1.9%) 3.3 (3.9%)
Hershey’s $345.9 (0.2%) 190.5 (3.7%) Total plain mints †
$76.9 12.1% 49.0 8.5%
Snickers $293.8 6.7% 159.9 3.4% Total breath fresheners †
$176.5 6.2% 81.2 3.5%
Kit Kat $191.1 (5.3%) 102.4 (8.5%)

8.5 %
Twix $143.3 (7.2%) 73.5 (9.1%)
Kinder $97.4 32.2% 48.5 27.0%
Three Musketeers $50.9 2.9% 27.1 0.0%
Milky Way $48.7 (9.4%) 27.6 (11.0%)
Cadbury $48.6 5.9% 24.8 2.6% Jump in unit sales of novelty
candy in c-stores in 2021,
Total† $2,612.1 7.9% $1,422.7 4.5% which came on top of a 5.6%
Source: All charts this page IRI increase the previous year,
according to IRI

C S P C AT E G O RY D I G E S T 10 CANDY & SNACKS

 CANDY & SNACKS › POST-PANDEMIC CANDY TRENDS

SWEET & SOUR

Uncovering
Post-Pandemic
Candy Trends
BY STEV E HOLTZ

2
020 was an unpredictable year
during which convenience retailers,
and indeed all Americans, rolled
with seemingly infinite changes
as best they could. For the can-
dy-products category, consumers’
urges to treat themselves were off-
set by safety issues that kept shoppers home,
and it added up to flat sales overall. Not sur-
prisingly, e-commerce owned the category,
growing its confectionery dollar sales an
amazing 76%, according to IRI, Chicago. (See
chart on pg. 68.)
The growth of online sales represents just
one of the many conundrums retailers face
(i.e., will consumers continue to embrace
e-commerce once typical traffic patterns

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embraced
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C S P C AT E G O RY D I G E S T 11 CANDY & SNACKS

CANDY & SNACKS › POST-PANDEMIC CANDY TRENDS
Consumers Want Variety
In 2020, consumers searched for distractions
to take their minds off the stress of the pan-
demic. Clark Taylor, senior vice president for
CandyRific, expects that to continue.
“Consumers are interested in trying new
stuff,” he says. “[They’re] testing new variet-
ies and flavor combinations.”
And variety can mean a lot more than just
what’s new. It can also mean stocking con-
sumer favorites, premium and budget can-
dies as well as healthier products and more
indulgent options. It can mean small sample
sizes as well as stock-up packaging.
“Consumers turned to their favorite trust-
ed brands to provide small moments of joy
during these challenging times,” says Jim
Dodge, vice president of convenience at Mars
Wrigley, Newark, N.J.
On the other hand, Peri Mendelson, di-
rector, sales operations and analytics at Pro-
motion In Motion Cos., Allendale, N.J., says
out-of-stocks and distribution issues drove
a “shift in shoppers’ purchases to products
offered by smaller and private-label brands.”
That suggests it is more important than
ever to provide a wide variety of treat options.
Speaking of Package Size ...
“One big trend we’re seeing is consumers’
demand for bulk and larger pack sizes for at-
home and on-the-go consumption,” Dodge
says.
The National Confectioners Association
reported that six in 10 shoppers changed up
their candy purchase routines in 2020, opting
for different pack sizes, exploring different
brands and categories, and branching out to
shop at different stores.
The Hershey Co. reports that take-home
sales of candy increased 6.9% in c-stores over
the past year, showing that consumers con-
sidered different channels for different types
of purchases.
“Conversely,” says Gwen Andrews, senior
manager, c-store sales planning, The Hershey
Co., “refreshment penetration has declined
with work-from-home trends expected to
continue as companies allow for more long-
term remote working environments. Given
that, retailers should lean into the trends,
reduce segments that have shifted and real-
locate space accordingly.”
To meet new packaging needs, Mars Wrig-
C S P C AT E G O RY D I G E S T 12
Candy Sales Trends
Dollar sales growth in 2020
CHANNEL
Convenience
E-commerce
Grocery
Drug
Source: IRI via National Confectioners Association
ley introduced a 30-piece gum pack as well as
peg bags and stand-up pouches for some of
its biggest brands. “That meets the need for
a durable and portable pack for on-the-go us-
ages and helps solve personal out-of-stocks,”
Dodge says.
Gummies Dominate
“When the going gets tough, the tough eat
gummy bears,” said NCA President and CEO
John Downs during the association’s virtual
State of the Industry Conference in March.
As much as nonchocolate sales dominat-
ed the candy category in c-stores in 2020,
the gummies subsegment was the real hero,
growing 7% for the year, according to IRI.
Expect that to continue, says Mendelson of
Promotion In Motion, which makes Welch’s
Fruit Snacks.
“Welch’s Fruit Snacks was one of the
brands that shoppers leaned on,” he says,
“recognizing consistent growth in the c-store
channel, and even achieving double-digit
growth in the last quarter.”
Mars Wrigley is betting on that horse, too:
It introduced Starburst Gummies in 2017, and
is rolling out Skittles Gummies this month.
Ferrara is embracing a secondary consum-
er trend: sustainability. In March, its Black
Forest brand of gummies and fruit snacks
made a 10-year commitment to fully sus-
tainable packaging, ingredients, colors and
flavors. The brand has also set a long-range
goal to plant 10 million trees by 2030.
Gum and Mint Comeback
Within the candy category, gum and mints
certainly took the worst beating in c-stores
and beyond. Dollar sales declined by double
digits in all IRI-measured brick-and-mortar
channels and overall by 22.7%.
Why? “Fewer people were going through
CANDY & SNACKS
CHOCOLATE NONCHOCOLATE GUM/MINTS
1.7% 4.4% (24.7%)
76.5% 77.0% 53.0%
10.5% 9.9% (20.3%)
(5.1%) (5.2%) (29.9%)
airport stores. They were staying home. They
were wearing masks. They were around other
people less often,” said Anne-Marie Roerink,
principal and founder of 210 Analytics, the
San Antonio-based data firm that produced
the NCA’s 2021 State of Treating Report.
“When we have some sense of normalcy
this year, all those reasons will go away, and
we will see the normalization of gum and
mint sales,” she said during NCA’s State of
the Industry Conference.
Manufacturers agree, and Dodge at Mars
Wrigley says even science will play a role.
“Health and wellness took a new mean-
ing amidst the pandemic, and we recognize
it’s something that will continue to dom-
inate in 2021 and beyond,” he says. “With
gum, for example, most people chew gum
for fresh breath, but few know about the
self-care and wellness-related benefits of
products like Extra and Orbit. In fact, there’s
extensive science that shows that gum can
play an important role in one’s well-being by
helping improve focus, boost your mood and
enhance your smile.”
Laura Nye, director of e-commerce and
category development for Perfetti Van Melle
U.S.A., Erlanger, Ky., sums up the conversa-
tion with some simple advice for retailers.
“Confections should be a very positive
story for convenience stores in 2021 and be-
yond. It will likely be above average in growth,
being a small luxury that everyone can afford,
even as we figure out how to help the econo-
my recover,” she says. “Gum and mints have
traditionally been some of the best sales per
inch of shelf space; don’t give up on these
categories as foot traffic will return, as well as
people getting back to face-to-face meetings.
However, do consider how you can dispropor-
tionally gain during this return time as peo-
ple are establishing their new habits coming
out of COVID, and you likely want to be their
store of choice for these purchases.”

SWEET RETURNS
What’s Driving
Chocolate Candy
Sales Now
BY STEV E DW YER
C
hocolate candy is waging a pa-
rochial battle with nonchocolate
confections, the latter paced by
the popularity of fruity mixes
and gummy peg bags, as well as
stand-up pouch formats.
Nonchocolate sales are growing
at a robust 10% pace annually, overshadow-
ing chocolate’s respectable 3.7% performance
across the convenience channel. Chica-
go-based IRI’s 52-week numbers ending
April 18 saw chocolate candy growing
to a $2.94-billion market, with bars of 3.5
ounces or more growing 5.3% within con-
venience, representing $2.4 billion of the
overall category.
Chocolate products of 3.5 ounces or less
grew at 3.7% during the same period, while
sugar-free chocolate options led the field at
59.4% dollar growth. Snack-size and novel-
ties were both off 27%, while gift-chocolate
sales were flat, according to IRI data.
A
t Franklin, Tenn.-based MAPCO Ex-
press Inc., Kelley Gutierrez, category
manager of candy and snacks-center
store, says the chain has been able
to capitalize on basket filling across
chocolate brands with an emphasis on selling
“multiples.”
For MAPCO, it’s all part of a “stock-up
mentality” that consumers leaned on during
the pandemic, and continue to embrace.
“With the emphasis on multiples, it’s often
C S P C AT E G O RY D I G E S T 13
CANDY & SNACKS › CHOCOLATE CANDY
a case of customers buying two Snickers or two
Reese’s at the same time. Our loyalty program The Chocolate
helps facilitate this,” says Gutierrez. MAPCO also
leaned on promotions in 2020, such as a “buy 2,
Opportunity
get 1 free” Reese’s King-size bar format, which Sally Lyons Wyatt of IRI
resulted in a “great buy rate,” she says. discusses the c-store chocolate
Consultants see the chocolate segment look- selling opportunity and
how retailers can position
ing to make strong statements in the second half
themselves for a strong second
of 2021, fueled by the cultivation of both everyday
half of 2021.
and seasonal candy merchandising opportunities.
The chocolate effort starts with a goal of de- Looking at chocolate
termining ideal assortment—culled from a sea of segments, discuss some key
chocolate brands and SKUs—and then activating consumer need states we’re
dynamic, successful promotional campaigns, ac-
cording to Sally Lyons Wyatt, executive vice pres-
seeing.
C-stores have become the go-to
ident and practice leader, client insights, for IRI.
“If I was a convenience chain, I’d be closely
channel for king-size chocolates.
There is a good amount of
studying assortment trends” broadly, but also promotional support [behind
king bars]. It’s regarded as a
within local markets, for guidance, she says.
c-store destination. One reason
“Some chains have very creative bundling pro- snack-sizes, novelties and
grams around nonseasonal occasions—a ‘family chocolate as gift-giving options
movie night’ promotion on a Saturday that also have suffered has been less
brings in beverages as part of the bundle. Conve- traffic and travel restrictions
nience can own and tweak the message” around over the past year, which kept
dynamic and regular campaigns beyond seasonal. sales down. But we anticipate a
rebound in sales for later 2021
due to foot traffic increasing
Growth in the Chocolate Market as more vaccines and herd
immunity occurs.
North America is the No. 2 chocolate market in the
world, worth more than $23 billion. Euromonitor What are some determining
predicted the market is set for further growth, factors within consumers’
with an expected 3.5% compound annual growth buying decisions?
rate in value between now and 2025, according to
What we’ve started to see is
Belgium-based Barry Callebaut’s “Top Chocolate
chocolate evolving to satisfy on
Trends 2021 and Beyond” report.
a growing list of need states,
72%
such as crunchy, dark chocolates
Percentage of consumers who agree
that treats are an important aspect of featuring antioxidants, and fuel
emotional well-being, turning to chocolate to escape thanks to nut-based chocolate.
for a moment Overall, chocolate has stepped up
with more engagement.
71% Percentage of consumers who seek new,
exciting chocolate experiences (more than
wanting just taste but exciting formats, colors and
What can retailers do to keep
chocolate candy relevant
textures)
66% Percentage of consumers who keep more
snacks on hand now than pre-pandemic
with consumers and sustain
loyalty?
Chocolate commodity prices
58% Percentage of consumers who
acknowledged they snack more since
COVID, with large majorities agreeing snacks are a
have been on the rise, and c-store
buyers will have to manage that
way to treat themselves (76%) or break up their day as best they can, all compared to
(63%) other retail channels and online
availability. The channel will
55% ercentage of consumers who believe that
“rare and unique” flavors make chocolate
more exciting
have to monitor that factor ...
and should also be mindful that
chocolate candy is an impulse
32% Percentage of consumers who said protein item … and that price might
content is an important factor in their not rule the buying decision.
purchasing decisions when buying chocolate Impactful display strategies [will
be a key to success].
CANDY & SNACKS
CANDY & SNACKS › PRODUCT TRENDS

EXCITEMENT & VARIETY

A Novel Year Drives

Unexpected Product Trends

I
BY STEV E HOLTZ
n a year when date night risked becoming
just another evening in, many consum-
ers found themselves searching for new
outlets of entertainment—playing cards,
kitschy socks, candy with toy-like pack-
aging, puzzles and more. Novelty prod-
ucts in both general merchandise (GM)
and candy boomed in many convenience
stores across the country this past year.
For Newcomb Oil Co.’s FiveStar Food
Mart, it was fishing poles. “We sold an in-
ordinately high number of fishing poles in
the spring and summer, as well as bait,”
says Tim Young, category manager center
store for the Bardstown, Ky.-based chain. Kid-Centric
“They were hot. We always carried [fish- CandyRific knows a little bit about novelty
ing accessories] but expanded space in products. The Louisville, Ky.-based compa-
2020 as more people took up fishing. Last ny has straddled the line between candy and
year it was vital to have an outlet like that.” toys for more than two decades, working with
It’s just one more way the pandemic changed familiar cultural brands such as Star Wars,
the product set in c-stores by shaking up con- Disney, Minions, baby shark and more.
sumer needs. But Clark Taylor, senior vice president
This growth in novelty products “really for CandyRific, says the company’s prod-
shows that people are in the mood for a lit- ucts, which range from branded, push-but-
tle bit of fun during these difficult times,” ton fans to character-shaped candy and
Anne-Marie Roerink, principal and founder packaging, are less about the confectionery
of 210Analytics, a San Antonio-based consul- and more about fun.
tancy, said while discussing the 2021 State of “Don’t lean in as much on your name
Treating Report the company created with brands,” he says to retailers. “Consumers

the National Confectioners Association.
Here’s a look at four novelty trends that
cropped up over the past year of sheltering
at home.
›
are looking for a bit of excitement and vari-
ety. Offer the excitement. … Whoev-
er is coming in to buy Hershey candy
knows it’s there [in your store] and

C S P C AT E G O RY D I G E S T 14 CANDY & SNACKS


are going to keep coming in. [But you
can] surprise them, find a way to get that ex-
tra dollar out of their pocket.”
CandyRific also works with candymaker
Mars on fun-shaped packaging, a partnership
that has paid dividends for both companies.
“As consumers continue to take to the
road as the preferred method of travel, treats
[such as M&M’S Minis Tubes] are perfect for
long car rides,” says Jim Dodge, vice presi-
dent of convenience at Mars Wrigley, New-
ark, N.J. “[They] provide the variety that
families look for to meet passengers’ needs.”
Necessities
Doug Marquardt oversees the cellular acces-
sories and sunglasses programs for Lil’ Drug
Store Products Inc., Cedar Rapids, Iowa. As
with most product segments, he says both
areas struggled in the early months of the
pandemic but have since made a comeback.
“Business in March and April (2020) was
down, but it bounced back going into sum-
mer,” he says, noting that fewer people were
flying places, making c-stores a more com-
mon place, rather than the airport, to buy
charging cords and sunglasses. “We saw a
lot of great sales in July and August, over the
holiday time period.”
He expects an even greater boost going
into this summer, noting new PD cords,
which charge phones faster and carry a
higher price tag, should drive sales. “Fast
charging is important to people. … Now if
people return to traveling this summer, I
think we’ll see a nice bump in sunglasses
sales this summer, too.”
Distributor S. Abraham and Sons (SAS)
brought the novelty factor to cellphone
charging accessories with USA- or Breast
Cancer Awareness-themed cables. “This
leads to increased basket sizes and gross
profit for the retailer as novelty items gener-
ally have nice margins,” says SAS Category
Manager Christa Verrier. “We are trying to
capitalize on incremental sales for items a
consumer would not typically seek out at a
c-store.”
“Shoppers gravitated to novelty
products because of the nostalgia factor.”
C S P C AT E G O RY D I G E S T 15
CANDY & SNACKS › PRODUCT TRENDS
CandyRific’s Looney
Tunes Character
Light & Sound
Wand combines
toy packaging
with a sweet treat,
in this case, 0.35
ounces of Jelly Belly
organic jelly beans.
Suggested retail
price: $5.99.
Seasonal
Candymaker Promotion In Motion (PIM)
saw seasonal success with updates as simple
as unique packaging. “Shoppers gravitated
to novelty products because of the nostalgia
factor,” says Mark Friedlander, associate di-
rector of consumer and shopper insights at
Allendale, N.J.-based Promotion In Motion.
For PIM, that meant, for example, Welch’s
Fruit Snacks offered in a heart-shaped gift
box. “That had awesome sell-through per-
formance, proving that shoppers are enjoying
these seasonal offerings,” Friedlander says.
Meanwhile, Verrier of S. Abraham and
Sons said the distributor saw success with
offerings such as Halloween light-up neck-
laces and shot glasses, as well as Christmas
“ugly sweater” beer and wine sleeves.
“As category manager, I tend to gravitate
toward selecting truly unique, new and sea-
sonal-focused items,” she says. “For exam-
ple, Red Vines Candy Corn flavor, Hershey
Kisses Vampire (strawberry filled) for Hal-
loween, Big League Chew Gum Hot Choc-
olate flavor and Reese’s Big Cup Peanut
Brittle for Christmas crate excitement for
consumers as these are the only time of the
year these flavors can be purchased.”
In and Out
“In the impulse GM category, we have had
success featuring these items as part of in-
and-out displays,” says Verrier. “This gives
retailers an opportunity to try a variety of im-
CANDY & SNACKS
Seize the Day
Talk about signs of the times: It’s not
difficult to tie some of the best-selling
c-store novelty products of 2020 back
to cultural events happening across the
United States.
As consumers took shelter in their
homes per pandemic protocol, as the
presidential election heated up, and as
the nation collectively clung to its mobile
devices for communication, related
products saw healthy sales growth in
c-stores.
According to distributor McLane
Co.’s 2020 Item Rank Report, here is a
sampling of some products and product
types that saw healthy growth last year:
> Hand sanitizer
>
Face masks
>
Bicycle dice
>
Maverick poker cards
>
President Trump doll
>
Wet Ones travel pack
>
Extra-long mobile-phone
charging cables
pulse items and cycle through new and inno-
vative products without dedicating valuable
shelf space to things that consumers may get
bored with after a short run.”
Verrier says over the past year, the Grand
Rapids, Mich.-based company took this ap-
proach with multiple product types, including
cellphone accessories, flip-flops, sports gear,
novelty socks and silicone straws.
Dodge of Mars says he hopes to continue
the move to help consumers forget about the
challenging year they’ve just faced.
“For example,” he says, “in-store, we’re
exploring merchandising opportunities
around new moments, and later this year
we’ll be launching the 2021 Never Stop
Summering promotion program that will
offer retailers one cohesive summer portfo-
lio and tap into other at-home and on-the-
go activities during the summer season. This
will keep shoppers engaged throughout the
long promotional period and drive basket
building and conversion.
“Outside of the store,” he says, “we antic-
ipate more deliveries via apps like DoorDash
will be supplemented with our products to
offer a small moment of joy for the consumer
while increasing basket size for the retailer.”
Steve Dwyer contributed to this story.
CANDY & SNACKS › SNACKS RETAILER PERSPECTIVE

Rethinking the
Plan-o-Gram
One silver lining of supply chain woes is that new snack
brands stepped up for many retailers
By Steve Dw yer

Retailers’ familiar 80/20 rule—where 80%

of category sales flow from 20% of the top brands—
was thrown a curve ball in 2021, when
supply chain issues put retailers in a bind.

C S P C AT E G O RY D I G E S T 16 CANDY & SNACKS


F
or many, it was a short-term
bind as fulfillment issues
begat placement oppor-
tunities for smaller pack-
aged-snack brands—quality
products that, previously,
had difficulty securing shelf space. The re-
sulting good “dilemma” is this: As smaller
brands discover new loyal consumers, earn-
ing the products a permanent spot in retails’
plan-o-grams, category managers find them-
selves managing a rebalancing act in 2022.
“We had issues with fulfillment, mainly
with meat sticks,” says Kelley Gutierrez, sen-
ior category manager of candy and snacks,
center store, for Franklin, Tenn.-based MAP-
CO Express. “But we were able to identify re-
placement brands. I think it will be interesting
to watch what shakes out as brands like No
Man’s Land Beef Jerky, (Boise City, Okla.),
and Mighty Sparks, (Minneapolis), made
their presence felt.”
Gutierrez, who also saw medium to large
brands Country Archer, Jack Link’s and
Old Trapper fill out the meat-snack supply
chain void, says Mighty Spark found a home
in MAPCO Express jerky sets because not
only were the products “available” but also
offered relevance. “The brand appeals to all
demographics, including females. The brand
is very philanthropic as it gives profits back to
causes. And the packages are eye-catching,”
Gutierrez says.
O
ther c-store packaged-snack cat-
egory managers echo Gutierrez’s
sentiments about smaller brands
stepping up. Peter Kempton Jr., category
manager, center store, for TravelCenters of
America, Westlake, Ohio, says its three retail
brands—TA, TA Express and Petro Stopping
Center—all showcased jerky brands “that
would not have otherwise gotten a chance.”
At a “critical time, and with a lot of holes and
empty spots to fill, we pivoted to other brands,
C S P C AT E G O RY D I G E S T 17
CANDY & SNACKS › SNACKS RETAILER PERSPECTIVE
and they proved themselves after we battled
getting core SKUs from big brands,” says
Kempton, adding that when one major salty-
snack brand was out of stock, TA brought in
Herr’s to great reception.
Similarly, Tim Young, category manager,
center store, for FiveStar, an 80-store chain
owned by Newcomb Oil Co., Bardstown, Ky.,
says, “Every week we had to decide when to
pull out” certain larger brand commitments
due to supply issues. “We were able to recover
thanks to smaller brands like Quest Chips,
Protein Poppers, Pap’s Beef Jerky and Wenzel
Farms; all stepped up for us through our Core-
Mark distributor.”
Another fledgling snack brand that
propped up FiveStar’s dollar and unit sales was
Alani NU energy bars. “We created a floor dis-
play that did extremely well,” he says. “It had
a 75% take rate on two-for deals, and made its
way into our top 15 SKUs for the entire year,
and did so going up against Kind and Clif.”
The dilemma going forward, though, is this:
“As soon as you make the change, and once
those larger brands come back in stock, what
do you do? I know that we opted to stick with
Wenzel’s and Pap’s within sets because they
filled a need at a critical time.”
M
eanwhile, snack sales thrived
thanks to several consumer need-
state fulfillment strategies for hot/
spicy options, sweet snacks and package-size
flexibility.
For meat snacks, larger packs have grown
considerably, says Gutierrez, citing velocity
for 8-ounce packages and up for consum-
ers in stock-up mode. “We saw significant
growth with meat sticks, emphasizing the
sales of multiples within peg-bag sets where an
18-stick package really drove value,” she says,
adding that MAPCO Express space for jerky
increased with greater commitment with sec-
ondary placement spots such as countertops
and queue line.
Flavor expansion and cross-merchandising
also served as impulse sales triggers. “We’ve
“Our guests came to us and understood that
our price points were competitive with
grocery, mass and drug.”
CANDY & SNACKS
seen salty and meat snacks as a compatible
cross over [people buying one with the other]—
and it’s driven by a younger demographic.
“Flavors are far more exciting, too, than
10 years ago thanks to new brands like Takis
[from Royal Foods]. It’s brought excitement
to the category, and so has spicy and exotic
meat snacks. You’ll always be able to rely on
the tried and true original and teriyaki flavors
to drive 80% of sales, but you need a place for
the Carolina fuego and ghost peppers to bring
in incremental sales.”
Y
oung says stores benefited from
people avoiding QSRs at the height
of the pandemic, migrating to FiveS-
tar and staying loyal to it. “Customers would
sample our food and become hooked long-
term, and snacks benefited along with this,
including sweet snacks with hot dispensed
drinks,” says Young, whose chain’s loyalty pro-
gram amassed 95,000 registered users, many
activating it for snack purchases. “People are
seeking comfort foods, and if you’re talking
snacks, then brands like Little Debbie and
Hostess got a lot of lift.”
TA’s Kempton says even significant price
increases affecting beef and meat products
didn’t put a drag on sales, citing the segment
as having good “price elasticity” in the eyes
of customers.
In benchmarking against Chicago-based
IRI’s end-of-year 2021 data showing the con-
solidated package snacks category in c-stores
growing at 15.2%, MAPCO has exceeded that
performance, says Gutierrez, without going
into specifics. “We’ll be focusing on bigger
pack types during summer holidays, like
July Fourth,” she says. “We saw an increase
in social interaction in ’21 that helped drive
take-home business within salty snacks [for
get-togethers]. Our guests came to us and
understood that our price points were com-
petitive with grocery, mass and drug. We
learned during the pandemic that consumers
continue to recognize convenience as a prime
channel to fulfill their packaged snack needs.”
CANDY & SNACKS › SNACKS DATA

Where the Gains Are

C-store sales, 52 weeks ending Dec. 26, 2021
Cookie Brands
C-store sales, 52 weeks ending Dec. 26, 2021

Revived! That’s the best way to describe 2021 sales in the sweet-snack product Not all the top manufacturers saw sales grow in c-stores, but often those
segment. After the pandemic played havoc with most segments of the that did saw double-digit boosts, including Nabisco, Lenny & Larry’s,
category, 2021 brought double-digit boosts to several segments and at least Marinela, Belvita, Pepperidge Farm and Quest, according to IRI data.
single-digit growth to all segments, according to IRI year-end data. Those that BRAND C-STORE SALES PCYA* UNIT VOLUME PCYA*
grew the most in unit sales in convenience stores: bakery snacks (up 10.4%), ($ MILLIONS) (MILLIONS)
cakes (up 9.7%) and cookies (up 5.9%).
Nabisco $233.8 11.5% 119.0 7.9%
PRODUCT C-STORE SALES PCYA* UNIT VOLUME PCYA*
Private label $107.7 3.6% 74.8 (2.0%)
($ MILLIONS) (MILLIONS)
Little Debbie $73.3 (1.9%) 82.5 (8.5%)
Bakery snacks $926.5 14.5% 537.0 10.4%
Grandma’s $72.9 (3.6%) 67.4 (3.8%)
Cookies $900.3 12.1% 599.2 5.9%
Lenny & Larry’s $62.3 18.5% 23.8 16.6%
Doughnuts $793.1 6.8% 417.5 3.0%
Marinela $52.7 19.4% 24.9 16.5%
Pastry/Danish/ $775.7 8.2% 429.8 1.4%
coffee cakes Keebler $49.0 9.2% 37.4 (0.6%)
Muffins $222.0 12.0% 107.5 5.5% Belvita $22.3 13.4% 15.8 5.9%
Cakes $51.3 10.5% 18.7 9.7%
Pepperidge Farm $21.2 18.3% 6.7 15.0%

Bakery Snack Manufacturers Quest $20.4 49.2% 7.4 40.5%

C-store sales, 52 weeks ending Dec. 26, 2021 Total† $900.3 12.1% 599.2 5.9%

In the two years since The Hershey Co. entered the bakery-snack segment with
its Reese’s Snack Cake, it has grown to $21.5 million in sales, taking the No. 8 Doughnut Manufacturers
spot among the top bakery-snack manufacturers in c-stores, according to IRI. C-store sales, 52 weeks ending Dec. 26, 2021
Meanwhile, all but two of the major manufacturers in the segment saw sales
grow by double digits in 2021. JAB Holding Co. spun off its Krispy Kreme company as a public company in June
2021, leading to an inevitable drop (down 76.3% in units) in sales previously
MANUFACTURER C-STORE SALES PCYA* UNIT VOLUME PCYA*
credited to JAB. Meanwhile, the segment as a whole saw unit sales grow 3.0%.
($ MILLIONS) (MILLIONS)
MANUFACTURER C-STORE SALES PCYA* UNIT VOLUME PCYA*
Hostess Brands LLC $281.2 10.0% 135.0 6.3%
($ MILLIONS) (MILLIONS)
McKee Foods Corp. $150.1 6.7% 132.9 3.9%
Hostess Brands LLC $302.0 25.6% 123.6 21.7%

* Percent change from a year ago | *** Growth greater than 500% | † Including UPCs/brands/families not shown
Bon Appetit Danish Inc. $136.7 16.7% 58.3 10.9%
Private label $218.9 12.2% 145.6 6.8%
Flowers Foods LLC $97.6 13.9% 54.9 9.1%
McKee Foods Corp. $98.2 (3.9%) 74.2 (5.8%)
Private label $77.5 30.5% 54.8 27.6%
Grupo Bimbo $47.3 7.4% 17.7 5.8%
Grupo Bimbo $58.1 2.5% 28.3 (1.4%)
Flowers Foods LLC $35.3 6.5% 16.4 3.0%
Horizon Food Group $39.0 25.4% 22.0 19.6%
Total† $793.1 6.8% 417.5 3.0%
The Hershey Co. $21.5 *** 10.6 ***

JTM Foods Inc. $15.6 21.2% 13.8 18.7% Pastry/Danish/Coffee Cake Manufacturers
C-store sales, 52 weeks ending Dec. 26, 2021
Prairie City Bakery $11.9 15.2% 6.8 13.3%

Total† $926.5 14.5% 537.0 10.4% A year after the pandemic forced many retailers to shut down self-service
bakery displays, sales of pastries, Danishes and coffee cakes from most major
Source: All charts this page IRI manufacturers roared back in 2021. Most significant growth: Carolina Foods (up
30.8% in unit sales), private label (up 26.2%), EPTA America (up 25.9%) and
Hostess Brands (up 23.9%).

10.4%
MANUFACTURER C-STORE SALES PCYA* UNIT VOLUME PCYA*
($ MILLIONS) (MILLIONS)

Bon Appetit Danish Inc. $305.7 18.9% 129.6 12.7%

Hostess Brands LLC $123.1 29.6% 61.5 23.9%
McKee Foods Corp. $91.9 (19.1%) 95.0 (18.3%)
Grupo Bimbo $60.5 18.3% 28.4 15.6%
Growth in unit sales of bakery snacks in c-stores in 2021, according to IRI
Flowers Foods LLC $53.5 (0.7%) 34.0 (7.0%)
Total† $775.7 8.2% 429.8 1.4%

C S P C AT E G O RY D I G E S T 18 CANDY & SNACKS

 CANDY & SNACKS › SNACKS DATA

Where the Gains Are

C-store sales, 52 weeks ending Dec. 26, 2021
Tortilla Chip Brands
C-store sales, 52 weeks ending Dec. 26, 2021

No doubt about it, salty snacks bounced back big in 2021. A year earlier, all Barcel Takis and Paqui saw particularly strong gains sales in the tortilla-chip
segments of the category saw sales decline in c-stores. But in 2021, growth segment, while the full category grew 14.8% in dollar sales and 8.7% in units.
was the word in most segments, including double-digit unit and sales growth BRAND C-STORE SALES PCYA* UNIT SALES PCYA*
in corn snacks and pretzels. Only two segments (snack nuts and seeds) saw ($ MILLIONS) (MILLIONS)
declines in unit sales, even as their dollar sales grew nearly 10%.
Doritos $883.3 12.7% 386.8 7.6%
SEGMENT C-STORE SALES PCYA* UNIT SALES PCYA*
($ MILLIONS) (MILLIONS) Barcel Takis $221.3 32.7% 84.1 21.1%

Potato chips $1,846.8 11.7% 861.1 6.5% Tostitos $79.7 4.6% 21.2 2.7%

Tortilla/tostada chips $1,291.3 14.8% 533.8 8.7% Paqui $18.0 51.3% 5.5 33.1%

Other salted snacks Private label $14.4 18.0% 5.1 7.6%

$893.7 9.4% 397.4 5.5%
(no nuts) Total † $1,291.3 14.8% 533.8 8.7%
Cheese snacks $856.3 9.4% 381.0 3.4%
Snack nuts
Corn snacks
$590.5 9.6% 315.4 (1.7%)
Other Salty Snack Brands
$452.1 18.9% 194.6 13.9% C-store sales, 52 weeks ending Dec. 26, 2021
(no tortilla chips)
Crackers $432.6 13.4% 291.5 5.4% Despite mixed results for some of the largest brands in other salted snacks, the
Pretzels $285.3 19.4% 128.0 12.6% segment saw overall growth of 5.5% in unit sales in convenience stores in 2021.
Fastest-growing brands included Chex Mix, Gardettos and, further down the list,
Sunflower/pumpkin seeds $267.2 8.2% 148.7 (5.7%) Andy Capp’s, Quest and Pirate’s Booty.
Ready-to-eat popcorn/ BRAND C-STORE SALES PCYA* UNIT SALES PCYA*
$248.8 10.1% 111.5 2.0%
caramel corn ($ MILLIONS) (MILLIONS)
Pork rinds $211.8 3.5% 113.9 1.2% Funyuns $213.1 6.4% 93.3 (0.1%)
Chester’s $159.6 6.0% 80.0 3.3%

6
General Mills Chex Mix $95.6 20.2% 39.3 14.2%
INDEPENDENT INSIGHT

%
Munchies $87.2 (7.1%) 33.1 (9.0%)
With average sales of 10,486 units of salty-
snack products per store per year, sales Gardettos $78.3 14.7% 25.8 9.6%
grew a health 6% in the typical independent
c-store in 2021, while dollar sales grew 7% on Total †
$893.7 9.4% 397.4 5.5%
average, according to scan data from Skupos.

Latest Quarter: Salty Snack UPCs

C-store sales, 13 weeks ending Dec. 26, 2021
Potato Chip Brands
C-store sales, 52 weeks ending Dec. 26, 2021 Several popular chip brands saw sales increase by double digits in the final
quarter of 2021. The largest brand in the segment, Doritos Nacho Cheese
Most top potato chip brands lost growth momentum in c-stores in 2020. A tortilla chips, grew nearly 25% in dollar sales. Thirteen-week sales totals show
year later, the leading brands are basking in double-digit growth, while the full the category as a whole grew 16.1% in dollars and 8.5% in units in c-stores.
segment grew 6.5% in unit sales. Private label in particular had a very good year,
UPC C-STORE SALES PCYA* UNIT SALES PCYA*
growing 34.4% in units in 2021 after dropping 16.8% the previous year.
($ MILLIONS) (MILLIONS)
BRAND C-STORE SALES PCYA* UNIT SALES PCYA*
Doritos Nacho Cheese
* Percent change from a year ago † Including brands not shown

($ MILLIONS) (MILLIONS) $50.4 24.4% 25.5 17.0%

tortilla chips (2.75-oz.)
Lay’s $694.6 8.2% 316.1 3.6% Lay’s Classic potato $39.2 21.2% 19.9 15.1%
Ruffles $422.8 15.6% 189.7 10.5% chip (2.625-oz.)

Pringles $246.7 25.7% 106.5 17.9% Ruffles Cheddar &

Sour Cream ridged $36.9 16.4% 18.6 9.8%
Private label $63.0 31.0% 40.4 34.4% potato chips (2.5-oz.)
Herr’s $57.7 12.9% 27.0 8.2% Doritos Cool Ranch $33.2 25.6% 16.8 18.4%
tortilla chip (2.75-oz.)
Utz $51.6 12.6% 24.7 6.3%
Doritos Nacho Cheese
Total † $1,846.8 11.7% 861.1 6.5% $30.3 NA 6.6 NA
tortilla chips (9.75-oz.)
Total † $1,583.8 16.1% 691.0 8.5%
Source: All charts this page IRI

C S P C AT E G O RY D I G E S T 19 CANDY & SNACKS

CANDY & SNACKS › SNACKS DATA

Where the Gains Are

C-store sales, 52 weeks ending Dec. 26, 2021
Breakfast/Cereal/Snack Bar Brands
C-store sales, 52 weeks ending Dec. 26, 2021

On-the-go got its groove back in 2021. A year ago, snack bars saw double-digit
Breakfast/cereal bars echoed other segments of the snack bar category, with
sales declines in convenience stores across all segments. Fortunes reversed most brands seeing healthy sales growth. Quest breakfast bars grew the fastest,
in 2021, when all segments but granola grew by double digits, according to increasing more than 500% in unit sales in c-stores, whle private label and Nature
IRI data. The fastest growing is also the largest segment: nutritional/intrinsic Valley saw single-digit dips.
health value bars, up 13.4% in unit sales.
BRAND C-STORE SALES PCYA* UNIT SALES PCYA*
SEGMENT C-STORE SALES PCYA* UNIT SALES PCYA* ($ MILLIONS) (MILLIONS)
($ MILLIONS) (MILLIONS)
Kellogg’s $99.3 2.7% 69.3 1.0%
Nutritional/intrinsic $497.6 17.3% 196.2 13.4%
health value General Mills $33.6 10.7% 20.9 3.2%
Breakfast/cereal/snack $196.1 14.6% 120.7 7.5% Quest $13.2 *** 4.4 ***
Granola $65.1 (2.6%) 68.0 (9.7%)
Best Maid $12.9 24.0% 7.4 21.5%
Total † $760.1 14.7% 385.5 6.8%
Kind $10.9 17.8% 4.7 9.2%

That’s It $4.3 9.5% 2.1 9.8%

Private label $4.0 2.6% 2.4 (2.8%)

* Percent change from a year ago | ** Includes meat sticks, biltong and all segments other than jerky | ***Greater than 500% growth | † Including brands/segments not shown
Nature’s Bakery $3.0 29.0% 2.7 25.4%

Nature Valley $2.7 3.8% 1.7 (3.3%)

Reese’s $0.0 NA 0.5 NA

Total †
$196.1 14.6% 120.7 7.5%

Granola Bar Brands

C-store sales, 52 weeks ending Dec. 26, 2021

The granola bar segment returned to the slow declines it saw prior to the
Nutritional/Intrinsic Health pandemic. In c-stores in 2020, dollar and unit sales were off more than 21% and
27%, respectively. A year later, those declines have moderated to 2.6% and 9.7%,
Value Bar Brands according to IRI.
C-store sales, 52 weeks ending Dec. 26, 2021 BRAND C-STORE SALES PCYA* UNIT SALES PCYA*
($ MILLIONS) (MILLIONS)
The granola bar segment returned to the slow declines it saw prior to the
pandemic. In c-stores in 2020, dollar and unit sales were off more than 21% and Nature Valley $48.2 (1.1%) 42.1 (9.2%)
27%, respectively. A year later, those declines have moderated to 2.6% and 9.7%,
according to IRI. Sunbelt $13.4 (10.3%) 23.1 (12.5%)
BRAND C-STORE SALES PCYA* UNIT SALES PCYA* Quaker $2.3 31.9% 2.2 27.8%
($ MILLIONS) (MILLIONS)
Atkins $0.3 (24.5%) 0.1 (31.7%)
Clif $125.4 13.8% 57.2 11.79%
Made Good $0.3 606.9% 0.2 336.8%
Kind $62.9 18.1% 26.3 15.0%
Total †
$65.1 (2.6%) 68.0 (9.7%)
Quest $62.2 19.6% 19.7 16.3%
Source: All charts this page IRI
MET-Rx $46.6 44.9% 14.0 42.7%

One $36.5 28.4% 12.7 28.5%

13.4%
Kellogg’s $27.5 19.8% 12.4 13.3%
Chef Robert Irvine $18.7 21.0% 5.8 20.0%
Fortifx
Gatorade $15.5 (0.2%) 5.8 (2.4%)

PowerBar $14.0 1.3% 5.5 0.3%

Rx Bar $12.4 7.2% 4.3 6.3%

Percentage c-store unit sales of nutritional/intrinsic health value
Total † $497.6 17.3% 196.2 13.4% bars grew in 2021, according to IRI

C S P C AT E G O RY D I G E S T 20 CANDY & SNACKS

 CANDY & SNACKS › SNACKS DATA

Where the Gains Are

C-store sales, 52 weeks ending Dec. 26, 2021
All Other Meat Snack Trends
A few meat-snack brands flourished in 2021, including Jack Link’s, which took
over the No.1 spot for dollar sales in c-stores on 27.2% growth. Other big movers:
Unlike many snack segments, meat snacks never really lost their mojo Matador by Jack Link’s, which grew 17.4% in unit sales; Old Trapper, up 54.2%;
and Cattleman’s, bursting more than 500% in unit sales.
through the pandemic. Dollar sales grew 5.3% in 2020 vs. 4.7% in 2019. And in
2021, they blossomed even more, growing 2.7%.
All Other Meat Snack Brands
SEGMENT C-STORE SALES PCYA* UNIT SALES PCYA* C-store sales, 52 weeks ending Dec. 26, 2021
($ MILLIONS) (MILLIONS)
BRAND C-STORE SALES PCYA* UNIT SALES PCYA*
All other** $1,200.5 19.2% 499.7 8.3% ($ MILLIONS) (MILLIONS)

Jerky $959.9 27.4% 132.3 20.1% Jack Link’s $494.5 27.2% 180.0 8.3%
Total dried meat Slim Jim $370.3 2.7% 178.7 (6.3%)
$2,160.4 22.7% 631.9 10.6%
snacks
Matador by Jack Link’s $34.8 10.1% 20.5 17.4%
Old Wisconsin $33.1 24.7% 12.0 11.5%

Jerky Trends Old Trapper $30.1 65.3% 7.4 54.2%

Need evidence that consumers were looking for value in 2021? Look no further Duke’s $27.1 19.7% 4.0 4.1%
than the top jerky brands, which saw private-label brands burst 32.6% in unit
sales in c-stores. Other fast-growing brands: Jack Link’s, up 15.4 % in unit sales; Big Mama $26.6 4.5% 14.4 (0.5%)
No Man’s Land, up 74.3%; and Tillamook, up 41.2%.
Cattleman’s $24.3 182.2% 5.6 ***
Jerky Brands Tillamook $18.7 3.4% 9.5 (8.9%)
C-store sales, 52 weeks ending Dec. 26, 2021
Penrose $15.9 6.5% 8.5 2.1%
BRAND C-STORE SALES PCYA* UNIT SALES PCYA*
Total † $1,200.5 19.2% 499.7 8.3%
($ MILLIONS) (MILLIONS)

Jack Link’s $406.6 23.3% 57.6 15.4%

Old Trapper $144.3 19.1% 10.6 5.2%
Private label $72.3 67.3% 17.5 32.6%
Latest Quarter: All Other Dried Meat
Snack UPCs
* Percent change from a year ago | ** Includes meat sticks, biltong and all segments other than jerky | ***Greater than 500% growth

No Man’s Land $55.3 94.8% 5.0 74.3%

C-store sales, 13 weeks ending Dec. 26, 2021
Cattleman’s Cut $29.1 18.5% 2.7 15.6%
UPC C-STORE SALES PCYA* UNIT SALES PCYA*
Tillamook $25.5 10.4% 6.3 41.2%
($ MILLIONS) (MILLIONS)
Mingua Beef Jerky $18.2 26.3% 2.3 21.9%
Slim Jim Original Chicken $19.8 10.2% 6.7 3.5%
Hardtimes $13.4 8.2% 2.1 (0.6%) and Beef (1.94-oz.)
Slim Jim Original Chicken
Oberto $11.7 (21.2%) 1.7 (26.6%) $18.3 11.1% 10.7 3.4%
and Beef (0.97-oz.)
Wild Bill’s $10.7 (10.0%) 1.6 (8.4%) Jack Link’s Teriyaki $12.8 18.1% 3.4 6.7%
Beefsteak (2.0-oz.)
Total †
$959.9 27.4% 132.2 20.1%
Jack Link’s Original $10.7 12.9% 2.9 3.0%
Beefsteak (2.0-oz.)

Latest Quarter: Jerky UPCs Slim Jim Original Beef,

Chicken, Pork (1.94-oz.) $9.4 (0.1%) 3.1 (7.7%)
C-store sales, 13 weeks ending Dec. 26, 2021
Jack Link’s Original Beef $9.2 18.5% 4.8 11.7%
UPC C-STORE SALES PCYA* UNIT SALES PCYA*
and Cheese Snack (1.2-oz.)
($ MILLIONS) (MILLIONS) Jack Link’s Peppered $7.9 20.2% 2.1 10.3%
Beefsteak (2-oz.)
Jack Link’s Teriyaki Beef $17.7 19.9% 2.3 13.6%
Jerky (3.25-oz.) Jack Link’s Original Beef $7.7 NA 2.8 NA
(1.84-oz.)
Jack Link’s Original Beef $16.7 22.6% 2.1 15.4%
Jerky (3.25-oz.) Big Mama Pork & Chicken $7.2 9.5% 3.8 0.7%
(2.4-oz.)
Jack Link’s Sweet and $9.9 20.8% 1.1 19.9%
Hot (2.85-oz.) Jack Link’s Wild Original $7.1 (1.6%) 2.5 (5.4%)
(2.2-oz.)
Old Trapper Old $9.0 9.2% 0.5 (3.1%)
Fashioned (10-oz.)
Source: All charts this page IRI
Jack Link’s Peppered $9.0 14.7% 1.1 8.7%
(3.25-oz.)

C S P C AT E G O RY D I G E S T 21 CANDY & SNACKS

CANDY & SNACKS › STATE OF SNACKING

THE STATE OF SNACKING

Shopping
Habits Keep
Retailers
Guessing
The latest in packaging,
flavor and ingredient
trends greeting consumers
BY STEVE HOLTZ

S
tatistics can be intimidating. After a year when ecom-
merce sales grew by massive double digits, there’s
reason to assume consumer behavior has changed,
putting brick-and-mortar sales at risk. But recent con-
sumer surveys suggest consumers are more creatures
of habit than we might think.
“Since COVID restrictions have eased, 41% [of
consumers] say their snack shopping habits have
changed,” says Mike Del Pozzo, chief customer officer
at Frito-Lay, citing the company’s spring U.S. Snack Index. The re-
port shows one-third of consumers are shopping more online for
snacks now, but that “most adults (84%) are still shopping for their
summer snacks in-person, at the store.”
Kelley Gutierrez, category manager of candy and snacks for
MAPCO Express, is ready to welcome those customers back while
also embracing their new habits. “People don’t like change, but
once they do it, they don’t like to go back,” she says. “I do think
we’re going to see a lot of the same shopping habits [developed
during the pandemic] for the next 12 to 18 months.”
And so with assurances that consumers are still willing to visit
physical stores to make their purchases, it’s worth recognizing cur-
rent preferences in the types, styles and flavors of snacks that are
most likely to catch their attention now.

C S P C AT E G O RY D I G E S T 22 CANDY & SNACKS

 CANDY & SNACKS › STATE OF SNACKING

Healthy Snacking healthier to boost immunity and wellness.” know what they want to buy before they en-
Healthier snacking has been trending for Green notes a recent Technomic study that ter a c-store, but a robust assortment and
years, and in 2021, “healthy” is most likely shows 63% of customers would like to see shelving strategy, fully stocked with top
to mean sugar-free or keto diet-friendly. more healthy choices offered in c-stores. brands and exciting innovation, is sure to
“The pandemic changed how and what “Put fresh options front and center, making help any retailer win,” he says.
consumers are shopping for at all retail out- it easy for customers to find them and make For Conagra, recent innovation has cen-
lets,” says Jodi Green, senior marketing man- those healthy choices.” tered on the keto diet, one high in protein
ager of British Columbia-based Okanagan Spencer Fivelson, vice president and gen- and low in carbohydrates and sugar. As an
Specialty Fruits, a supplier of nonbrowning eral manager of snacks for Conagra Brands, example, Fivelson singles out the 3-ounce
Arctic apples for retail sale. “They’re eating Chicago, agrees. “Consumers do not always Slim Jim Savage stick, which delivers 18
grams of protein.
Hauppauge, N.Y.-based Shrewd Food
Largest Snack Segments and Sales Trends is bringing keto-friendly characteristics to
While snack sales in c-stores have improved in the first half of 2021, full-year data snack and candy types that are often iden-
for most major segments, except meat snacks, still shows sales declines. tified as indulgent, such as Protein Puffs,
Protein Cookies and Keto Dippers, choco-
C-STORE SALES UNIT SALES late-covered, low carb protein snacks.
SEGMENT ($ MILLIONS) PCYA* ($ MILLIONS) PCYA*
Salty snacks $5,501.9 (1.7%) $2,540.6 (6.3%)
The keto diet is a friend to jerky manufac-
turers as companies such as Werner Gour-
Dried meat snacks $1,895.0 15.1% $593.8 6.2%
met Meat Snacks, Stryve Biltong Snacks and
Pastry/doughnuts $1,656.1 (3.6%) $914.7 (9.5%)
Krave Jerky, all of which recently introduced
Snack nuts/seeds/corn nuts $834.8 (9.2%) $482.4 (21.0%) new high-protein, zero-sugar products.
Bakery snacks $830.1 1.3% $495.0 (2.2%) “The real star of this product is the food
Photograph: CS P Staf f

Cookies $810.5 (3.4%) $557.6 (11.4%) itself,” said Jerry Goldner, vice president of
Snack bars/granola bars $676.1 (11.3%) $361.2 (14.8%) Plano, Texas-based Stryve, while introduc-
ing retailers to Stryve’s new Vacadillos line
Crackers $391.7 (4.9%) $276.4 (13.1%)
of carne seca (air-dried beef ) during the
Other snacks $328.8 (1.5%) $110.1 (4.4%)
Sweets & Snacks Expo in June. “There are
*Percent change from a year ago Source: Source: IRI | C-store sales, 52 weeks ending May 16, 2021 no nitrates, no carbs and no sugar, and yet
it’s full of flavor.”

C S P C AT E G O RY D I G E S T 23 CANDY & SNACKS

 CANDY & SNACKS › STATE OF SNACKING
Photograph c ourte sy of Kellog g
Full of Flavor
Speaking of flavor, spicy is the absolute go-
to for savory snacks. Stryve’s Vacadillos line
comes in Chile Lime, Habanero and Scorpi-
on flavors. Other spicy meat-snack innova-
tion includes Krave Jerky’s Chili Lime and
Sonoma Style BBQ flavors and Oberto’s
Cattleman’s Cut Takis stick, which share the
chili-lime flavor of the popular tortilla chips.
Similarly, Conagra is bringing Takis’ spicy fla-
vor to its Bigs Takis Fuego Sunflower Seeds.
The National Confectioners Associa-
tion, Washington, D.C., dubbed spice a pri-
mary trend of its recent Sweets & Snacks
Expo held in June in Indianapolis. “The
hottest (and we mean hottest) new spicy
snacks [featured] flavors like chili, sriracha,
jalapeno and habanero,” NCA said.
“Bold flavor trends are resonating with
consumers,” says Daniel DeMeyer, senior
director sales strategy, Kellogg Co., Battle
Creek, Mich. “Innovation is important and a
key to growth.”
For Kellogg, that meant the launch of the
spicy Pringles Scorchin’ in December in three
flavors: BBQ, Cheddar and Chili & Lime.
C S P C AT E G O RY D I G E S T 24
Gutierrez of Franklin, Tenn.-based MAP-
CO says she’s totally on board with spicier
flavors.
“[Consumers have told us], ‘I want to buy
your basic, traditional snack, but I also want
to try out that new spicy flavor,’ ” she says. “So
you might see that customer trying that new
spicy item, but you’re also going to be selling
your core items.”
Manufacturers agree keeping those famil-
iar or nostalgic flavors in stock is important to
maintain and grow snack sales.
“Ever since the onset of the pandemic,
we’ve seen consumers seek more indulgent
offerings and comfort foods,” says Sarah
Wolfe, marketing manager at General Mills
Convenience, Minneapolis.
Big, Small & In Between
Much has been written about how pandem-
ic trends affected package size. Consumers,
determined to make as few shopping trips as
possible to avoid possible COVID infection,
stocked up on household products in larger
CANDY & SNACKS
“Convenience stores
will need to continue
to diversify the
range of products
they offer.”
packages that would last longer. The question
now is: How will that translate over time?
“We adjusted our promotional strate-
gy, adjusted our merchandising, making
sure we had enough space for those kind of
items,” Gutierrez says. “[We’re] currently still
expanding that because shopper behavior
seems to be here to stay for a while.”
To accommodate stock-up behavior, meat-
snack manufacturers, including Werner and
Bridgford Foods Corp., have added 10-ounce
packages of meat sticks and jerky, respectively.
“Look at the pack sizes you are offering,” Rich-
ard Mueller, national account sales manager,
convenience store channel of trade for Chica-
go-based Bridgford, suggests for retailers. “If
you do not offer a large-size bag, we would rec-
ommend giving it a place on your shelf.”
As it’s introduced larger, shareable pack
sizes, Kellogg Co. has been sure to make
packages resealable to retain freshness,
such as a 7-ounce package of Cheez-Its that
comes in a zipper bag. Similarly, new prod-
ucts Gratify Pretzels are available in 2-ounce,
10.5-ounce and 1.54-pound bags, and Bamba
Peanut Butter Puffs launched in 0.7-ounce,
2.5-ounce and 12-ounce packages.
Of course, for every trend, there’s a re-
verse trend: NCA says smaller pack sizes are
also growing in the name of healthier choices.
Photograph: CS P Staf f

Photogra ph c ourt e sy of PeaTo s
Main Ingredients
Also in the name of healthier choices, the
ingredients going into snack products have
become more important than ever. From
the base source itself to how they’re mar-
keted, consumers and manufacturers are
taking notice.
Increasingly, suppliers are reaching be-
yond corn, wheat and nuts as base ingredi-
ents and launching snack varieties built on
unexpected fruits or vegetables.
PeaTos, known for its pea-based puff
snacks created as a “more natural” alterna-
tive to Plano, Texas-based Frito-Lay’s popu-
lar Cheetos, doubled down on its challenge
to the No. 1 snack maker with the June launch
of PeaTos Crunchy Chips. The tortilla-style
chips made on a base of peas are intended
to compete directly with Doritos, the leading
tortilla chip in c-stores and beyond.
With peas as the primary ingredient, “con-
sumers can now have that junk-food taste and
the nutrition they seek for a balanced life-
style,” the Los Angeles-based company says.
PeaTos isn’t alone in its mission. During
the Sweets & Snacks Expo, manufacturers
unveiled new snacks built on plantains, sea-
weed, mushrooms, eggs and even chicken.
Munster, Ind.-based Gone Rogue
Chicken Chips aim to combine the crunch-
iness of a potato chip with the protein-rich
benefits of chicken. Each serving offers
more than 17 grams of protein.
C S P C AT E G O RY D I G E S T 25
CANDY & SNACKS › STATE OF SNACKING
On the other side of the coin is a jerky
made from tomatoes. Bella Sun Luci’s To-
mato Jerky is made from sun-dried tomatoes
and comes in three flavors: Hickory Smoked,
Sriracha and Teriyaki & Cracked Pepper.
“The vegan population is growing, and
with it we are bringing forward-think-
ing foods that appeal to both vegans and
non-vegans alike,” says Mary Mooney, owner
of Chico, Calif.-based Mooney Farms, which
produces Bella Sun Luci’s Tomato Jerky.
Plant-Based
The term “plant-based” has joined organic,
gluten-free, low-sodium and other familiar
attributes on snack packaging to appeal to a
demographic that’s embracing products seen
as healthier and environmentally friendly.
“Now more than ever, consumers are
focused on how their diet can help improve
their overall health and wellness,” says
Maya Erwin, vice president of innovation
and research and development for Blue Di-
amond Growers, Sacramento, Calif. “Many
are choosing to purchase foods and bever-
ages that are clean-label, plant-based and
full of added health benefits.”
Erwin cites a recent study from SPINS,
Chicago, that found plant-based retail sales
reached $7 billion in 2020, growing 27%
over the year.
“Convenience stores will need to contin-
CANDY & SNACKS
ue to diversify the range of products they of-
fer,” she says. “Research from SPINS shows
that 57% of Americans now purchase plant-
based alternatives, and 78% are repeat buy-
ers. Offering a wide range of plant-based
snacks could entice consumers to explore
new snacks and encourage return visits.”
Recent product launches aimed at
c-stores and calling out their plant-based
roots run the gamut of snacking segments,
such as Nova Crisp, a line of grain-free cassa-
va chips available in multiple flavors; ProBar,
a snack bar made with chia and flax seeds
and sporting 20 grams of plant protein; and
coming soon from Krave Jerky, a plant-based
line extension that aims for the texture and
flavor of beef jerky but with the benefits of a
plant-based diet (lower cholesterol and fat,
plus more fiber, among other things).
“People are educating themselves,” says
Matt Houlihan, a representative of Park
City, Utah-based ProBar. “They’re learning
that there are a lot of benefits to plant-based
foods and protein.”
“The COVID-19 pandemic had sweep-
ing effects for retailers and consumers alike.
Across the convenience channel, we’ve seen
a major transfer toward pantry items such
as full-size cereal boxes or larger, resealable
snack items, while people are spending more
time at home,” says DeMeyer of Kellogg Co.
At the same time, he adds, “As more con-
sumers return to their daily routines [from]
prior to the pandemic, they are once again
looking for ‘on the go’ snack options, as well
as health and wellness options.”
It’s on retailers to decide which and how
many of these items they need to satisfy the
people coming through the door.
Photograph c ou rte sy of Krave Jerky
CANDY & SNACKS › FOODSMART’S MISSION

Photograph c ourte sy of Food smart

FEATURED
RETAILER

W
IQ TEST hen Adam Musa was 10 Deploying the tagline, “Fast. Fresh.

Foodsmart years old, he spent a lot of

his time at the c-stores his
Healthy,” Musa’s two Foodsmart stores
showcase such brands as Rhythm Broccoli

on a Mission
father operated, where he
assessed the product mix
most c-stores stock for their
to Deliver core clientele: Bubba.
Young but keenly aware, Musa vowed
Bites, Harvest Snaps Green Pea Crisps and
Amphora Organic Dried Fruit, targeting
residents living in dense residential areas in
a retail format that emulates the merchan-
dising strategy of Trader Joe’s and Whole

High- to shake the tree of what the typical c-store

merchandised if and when he owned
Foods. His fuel is branded Fuelco.
Musa says he holds a competitive ad-

Quality, stores. His plan: to blend healthy and nu-

tritious products with the more traditional.
vantage over larger specialty grocers as he
enjoys lower rent, real-estate taxes, payroll

Healthier
The “when” is now. Musa’s retail vi-
sion was activated in 2019, 10 years after
his original ah-ha moment. That’s when
Snacks the now 22-year-old entrepreneur started
on a journey to build a network of heathier
and fuel sales. This allows him to pass along
savings via lower prices for premium fare.
“The world—and diets—are changing.
Keto friendly, kosher, vegan, vegetarian,
gluten-free and other dietary restrictions

BY STEV E DW YER food-oriented c-stores in New York, Con-
necticut and Florida, merchandising the
gold standard of healthy products along-
side familiar c-store brands.
›
have people transforming their di-
ets. Unfortunately, most traditional
convenience stores have not adapt-
ed,” Musa says.

C S P C AT E G O RY D I G E S T 26 CANDY & SNACKS


Photogra ph c ourt e sy of Food sma rt
Fresh doughnuts and pastries? Sure, but also dried fruit, mushroom chips,
protein snacks and more help set Foodsmart apart.
T
he newest Fuelco
Foodsmart opened in late
October in Yonkers, N.Y.,
after debuting the first
Foodsmart in White Plains,
N.Y., in 2020. The new concept is
part of America Petroleum LLC,
Thornwood, N.Y., where Musa is
president, overseeing the oper-
ation and supply of 55 retail fuel
stations throughout Connecticut,
New York and Florida.
With six more Fuelco
Foodsmarts locations currently
in various stages of development,
the entrepreneur plans to expand
slowly over the next few years.
“Our vision for the next six
to eight months is not to rush
expansion, but open new stores
“M
when the time is appropriate,” he
says. “Because the last thing we
want to do is expand too quickly
and, by virtue, compromise qual-
ity and consistency.”
Within his retail strategy,
Musa aims to be inclusive to
serve all healthy-eating consum-
ers but with a focus on millenni-
als, many of whom are often on
the hunt for organic, gluten-free
and Fair Trade-certified prod-
ucts, he says. But his broad mix
also allows him to please c-store
traditionalists, too.
Growing up in south Florida
and later moving north to the Tri-
State region, Musa says he came
to a stark realization. “When you
compare food and beverage op-
tions in Miami to New York, it’s
light years difference. In Miami,
you see all types of healthy plac-
es selling fresh and healthy good-
ness. In New York, you basically
see QSRs offering the same high-
fat, high-cholesterol options.”
This realization prompted
Musa to narrow his geographic
focus and drop anchor in the New
York and Connecticut region.
y mission is to
offer a healthy
alternative to
every traditional
snack category
we have. It’s like a parallel uni-
verse,” Musa says. “For every
potato chip SKU, we offer a sea-
weed snack. And rather than
segregating them where we
stock healthy snacks ‘here’ and
traditional ones ‘over there,’ in
C S P C AT E G O RY D I G E S T 27
CANDY & SNACKS › FOODSMART’S MISSION
our stores all categories are con-
solidated in-line.”
Musa says there’s a thread
connecting Foodsmart to 7-Elev-
en’s Evolution store prototypes.
Evolution, which debuted in
2021 with four stores in New
York City, Washington, D.C.,
San Diego and Dallas, is built on
a restaurant-inspired concept
where no two locations are ex-
actly alike. Evolution develops its
product mix based on customer
feedback and shopping habits.
“Like Evolution, we operate
on the theory that, in testing
new brands and overall product
types, you won’t know if some-
thing works unless you give it
trial first,” he says. “We take
chances.”
Musa’s efforts are supported
by a seasoned team of industry
veterans, including his parents,
to guide him on the journey.
That assistance comes through
his rich industry pedigree: His
grandfather delivered to retail
for a potato-chip brand. His fa-
ther, Sammy Eljamal, now re-
tired, has owned multiple Mobil
locations.
“Everyone on our team has at
least 15-plus years of c-store and
retail experience,” he says.
Musa has owned and operat-
ed a Mobil station and car wash
in Miami Beach since early 2019.
That set the tone for what’s been
an upward trajectory for the sem-
inal business.
The opening of the first Fuel-
co Foodsmart had introductory
fuel prices at $1.49 per gallon,
and “we pumped 10,000 gallons
over a two-hour period. Custom-
ers were dumbfounded; they
thought the price was a joke.”
“My mission is to offer a healthy
alternative to every traditional
snack category we have.”
CANDY & SNACKS
T
he site for the White
Plains location was care-
fully considered. It sits
close to a community col-
lege and a medical center.
“We give hospital employees
deals on fuel prices, as they’re
front-line workers,” Musa says.
“Health care combined with
students is a huge opportunity to
drive our brand higher, enhance
our selling proposition. High-
ways are accessible to the sites,
so we consider it transient [var-
ied traffic passing by], but you
also see a lot of rooftops, such as
apartment buildings, residential
townhomes and more.”
A Fuelco mobile app has been
a significant driver of traffic, par-
ticularly on the fuel side, boast-
ing about 20,000 users that
have joined the network. Musa
believes it appeals to younger
demographics.
In the stores, Musa offers
customer incentives via price
promotions and display tactics,
with daily and weekly specials
on food and beverages in what
he refers to as “a new surprise
every week. I like giving people
the feeling that we’re their vil-
lage store, and specials on items
like milk and eggs reinforce that
and build loyalty.”
Ultimately, Musa says, con-
sumer trends will lead the way
for the fledgling retail brand.
“We want to be a change
agent that offers a new, dynamic
store prototype that’s consistent
with what’s offered inside,” he
says. “That’s our competitive
advantage. I’m 22; when I’m 42,
I want this brand to be sustain-
able from a growth and impact
standpoint.”
CANDY & SNACKS › MEAT SNACKS

Jack Link’s Zero Sugar Jerky

launched in 2019 with a
suggested retail price of $5.99
for 2.3-ounce bags and $7.99
for 4.7-ounce bags.

B
STICK SHIFT
lame— or credit—home bak- utive vice president and practice leader,
Hybrid Flavors ing for contributing to the re-
tail for tunes of packaged
client insights, for Chicago-based IRI.
In short, people received their “snack bar”

& Plant-Based snacks during the pandemic.

As meat snacks saw more than
intake while baking breads and desserts.
That translated to a win for meat snacks

Proteins: 5% growth in convenience stores,

snack bars declined double digits
and other salty varieties, as consumers
sought taste and formulation diversity.

Meat Snacks
[CSP—Jan. ’21, p. 69]. But that’s just one element of the sales
So, what gives? trends. A crazy quilt of developments
“One interesting hypothesis during contributed to the rise and fall of various
Recruit New COVID-19 was that as more people start- snack categories throughout 2020. During

›
ed to bake more at home, they began us- the pandemic, utility and construction

Users ing ingredients such as fruits, nuts, oats

and grains—all found in snack-bar for-
workers who couldn’t work re-
motely sought out meat snacks
BY STEV E DW YER mulations,” says Sally Lyons Wyatt, exec- for their high protein benefits.

C S P C AT E G O RY D I G E S T 28 CANDY & SNACKS

 CANDY & SNACKS › MEAT SNACKS

Others saw value in plant-based, grass-
fed, spicy and hybrid flavor combinations.
Meanwhile, on-the-go work-
ers who once reached for morning
breakfast bars were now working
remotely, and habits shifted accordingly.
Convenience retailers benefited by
providing consumers with quick and safe
shopping environments.
“Think about where consumers are
shopping now. It’s paramount for conve-
nience retailers to see that as consumers
consolidated their shopping trips,” says Jeff
Wong, vice president of marketing, Country
Archer Provisions, which in 2020 launched
Zero Sugar Beef Jerky in partnership with
chef Will Horowitz to push the envelope on
artisanal innovation.
to-Lay; Old Wisconsin Food Products; and
Thasani. Consumers also recognized value
in private-label meat snacks, which grew
dollars a robust 43% during the year period.
Private label or branded, expanding
new users is top of mind with suppliers.
“We have made a concerted effort to ap-
peal to shoppers outside the conventional
male meat-snack consumer,” says Wong of
Country Archer. “Our data shows that Gen
Z, millennials and even older and affluent
consumers are helping to grow the base.”
Tim Jones, director of category man-
agement and customer development
for Kent, Wash.-based Oberto Brands,
says brands in the Oberto portfolio
are designed to offer unique attributes
to a diverse consumer base.
From a gender standpoint, female meat-
snack consumers—“closet users” to this
offer, launching a Zero Sugar line in 2019.
“Consumers have been asking us for
a no-sugar option, and … we’re proud to
meet that demand with an option that’s
still an excellent source of protein and
tastes just as good as our original fla-
vors,” said Tom “TD” Dixon, chief mar-
keting officer at Jack Link’s. “This new
SKU will drive significant category growth
with goal-oriented shoppers looking
to trade a sweet treat for a meat treat.”
Sonoma, Calif.-based Krave Pure Foods,
powered by Krave Jerky and Chef ’s Cut offer-
ings, has established a synergy between the
two to widen the user tent, plus fill the mar-
ket basket as a single buyer might be inclined
to buy both during one shopping occasion.
“The Krave brand is slightly more fe-
male-skewed and also appeals to a younger
millennial, young-family consumer,” says

D
uring the 52-week period ending
Dec. 27, across the c-store chan-
nel, dried meat snacks continued
a sustained growth trajectory by
expanding dollar sales 5.3% (to a
$1.74 billion market) and units 0.7% from
same-period 2019, according to IRI data.
“All other” dried meat snacks (a $1 bil-
lion market) grew 5.5% and units 1.6%.
The top five suppliers were ConAgra,
which saw 8.8% dollar growth for both Slim
Jim and Duke’s brands; Link Snacks; Fri-
point, according to Jones—broadly seek the
same attributes that males do, he says. Jones
says the Oberto brand strategy is innovating
across demographics so Gen Z consumers
can gravitate to Takis, flagship Oberto can
draw in those seeking better-for-you quali-
ties, Cattleman’s Cut (the top Oberto brand
in c-stores by dollar performance) can reach
blue-collar males and Cave Man Meat Snack
can direct its marketing to those seeking ke-
to-friendly ingredients.
Jack Link’s also leaned into a sugar-free
Rusti Porter, chief marketing officer for Krave
Pure Foods. “From its inception, Krave has al-
ways focused on making a jerky product that
would bring more women into the category.”
Krave will debut a SKU this year that caters
specifically to women.
Chef ’s Cut consumers are more often
“male and unapologetically carnivorous,
looking for the true trade-up from gas station
jerky,” Porter says. “Chef ’s Cut makes sure
we address those expectations with a com-
plete lineup of flavor-forward meat snacks.”

Keeping Consumers Engaged

Familiar meat-snack
flavors such as
peppercorn, teriyaki
and original are still
relevant with consumers.
But emerging are those
formulated with more
challenging flavors, such
as ghost pepper, jalapeno,
mango, habanero, fruit
and more, says Sally Lyons
Wyatt, executive vice
president and practice
leader, client insights, for
Chicago-based IRI.
These new types are
essential to pull in new
meat-snack users seeking
to satisfy changing
palates. “One nice aspect
of meat snacks and jerky is
the texture experience—
so take that along with
these flavor explosions
and the result is a great
combination,” Wyatt says.
Rusti Porter, chief
marketing officer for Krave
Pure Foods, says “when you
look at jerky and meat-snack
products today, you see that
premium brands with out-
of-the-box flavor profiles,
cleaner ingredient panels
and improved textures are maximized marinating time, Porter sees the plant-
more the norm.” improved flavor quality based industry as gaining
In 2021, Krave is and traditional cooking significant footing across
focused on “foundational” processes,” she says. “Then, snacking occasions and
strategies to underscore we re-ignite the brand consumers reaching for
“the original quality and through a first-quarter ’21 more sustainable products.
cooking method that relaunch including new Krave Plant-Based Jerky
consumers first knew and packaging and enhanced is debuting along with
loved, better consistency, attributes.” “additional new forms
within the year. We’re also
seeing a resurgence of more
low-carb and zero-sugar
consumption trends for
meat snacks to offer these
consumers a full lineup with
the zero-sugar formulation,”
says Porter.

C S P C AT E G O RY D I G E S T 29 CANDY & SNACKS

CANDY & SNACKS › MEAT SNACKS
F A
rom the pandemic’s emergence
last winter, c-stores invested more
resources in labor and keeping
shoppers safe, which led to less
emphasis on merchandising cam-
paigns supporting meat snacks,
according to Jones of Oberto.
That’s bound to change for 2021.
“Retailers did more of the basics to
oversee this category—and some actu-
ally canceled campaigns we original-
ly lined up for the channel,” says Jones.
This year, retailers will see additional
opportunity around the merchandising of
larger-size packages above the standard
3-ounce meat stick. Partners such as Ober-
to are eager to work with retailers to re-
set the meat snack and jerky department.
“C-stores that placed an emphasis on
standard sizes should be ready to invest
in larger metal fixtures and racks config-
ured for the ‘XL’ packages,” Jones says.
Country Archer is eager to expand on this
opportunity in 2021 with the debut of its one-
third pound, zero-sugar, grass-fed offering.
Krave’s latest products combine multiple
consumer trends. Its Plant-Based Jerky is
vegan, high in protein and made from peas and
fava beans. Its latest Chef’s Cut launch contains
zero sugar and is hardwood smoked for flavor.
C S P C AT E G O RY D I G E S T 30
“There’s an economic component
on the value proposition, where even
with a higher price, there is addition-
al value per ounce,” says Wong. “Con-
sumption behaviors see more people
working at home. Many are watching TV with
a big bag of jerky rather than a single-serve.”
An 8-ounce package remains the
largest dollar driver for Oberto, which
recently introduced a 12-ounce sau-
sage that Jones says is “doing fantastic.”
“There have been big shifts in consumer
buying habits,” says Porter of Krave. “This in-
cludes using online channels more and buying
large quantities of shelf-stable products during
less frequent trips to the grocery store. This
is forcing brands to pivot, ramp up produc-
tion and find ways to keeps stores stocked.”
Going forward, the two package formats will
vie for share of stomach. “I think in the first
half of the year, people’s mobility will still be
limited, but as the year progresses I see the dy-
namic changing,” she says. “Both larger and
standard-size meat snacks will become an in-
teresting consumer decision.”
CANDY & SNACKS
s a result, retailers will have an op-
portunity to take an already grow-
ing category and add more power
through compelling promotions,
customization across chain stores,
emergence of more innovation and overall
brand differentiation.
Promotions. Wyatt encourages retailers
to cross-promote above and beyond an ener-
gy-drink-with-meat-snack bundle and work
to resonate more firmly with female consum-
ers. This means cross-promoting meat snacks
with perhaps a hot dispensed beverage like an
espresso.
Customization. Wyatt advocates for
a store-by-store decision process on meat
snack plan-o-grams. The mix of varieties
should be based on a single store’s unique
customer base and demographics. “Assort-
ment by store is critical,” she says.
Sustained innovation. From a store
placement perspective, Wyatt high-
ly recommends “placing new and in-
novative meat snack releases front and
center in the mix. Wrap promotions, cus-
tomization and innovation together make
it part of your digital marketing program.”
New plant-based meat snacks are an op-
portunity as consumers are seeking plant-
based foods across multiple categories, she
says.
More protein. In March, Country Archer
launches Footlongs, a 12-inch stick with 15
grams of protein. While protein is a priority,
Wong says many users prioritize quality of
selections via values like “grass-fed beef with
unquestionable ingredients.”
At Krave, Chef ’s Cut Zero Sugar Biltong
contains 26 grams of protein and zero sugar.
“There has been a major demand for high-pro-
tein meals and snacks while people contin-
ue to move away from carbs,” says Porter.
Overall, c-stores saw the pandemic chang-
ing consumer tendencies as they condensed
their shopping trips. It’s incumbent on the in-
Pho tograph c ourte sy of Krave
dustry to continue showing that c-stores can
be the channel to fulfill multiple needs when
it comes to the category’s broad portfolio.
“One impact of COVID-19 was a shift
where consumers shopped,” says Wong.
“People are shopping less often and consol-
idating trips to include grocery, mass and
convenience. The opportunity is there for the
channel to capitalize and get the right assort-
ment to back that up.”
 CANDY & SNACKS › RETAILER OPPORTUNITY

CRAVE BEHAVIOR

Opportunity Ripe
for Retailers as
More Consumers
Snack
BY CHUCK ULIE

T
he pandemic has influenced many
facets of people’s lives, and snacking
is well within that sphere.
Almost three-quarters of Ameri-
can adults, 74%, say their meal and/
or snack habits have changed during
the pandemic, according to a survey
conducted online by the Harris Poll for CVS
Pharmacy in March.
When considering choices today compared
with what they would have done before the pan-
demic, 67% of American adults who snack say
that in general, they now snack more at home,
and 52% of American adults choose better-for-
you snacks and meal solutions.
These findings prompted CVS to expand its
assortment of 140-plus better-for-you snacks,
including more than 60 completely new to the
chain.
Variety is also part of the strategy of conve-
nience retailer Lee Harrill, who along with his
son owns six Drop-In Food Stores in the Forest
City, N.C., area. Harrill says he can’t rule out
any products when it comes to selling snacks.
“I’m a salty snacker, but the next guy might be
a sweet snacker,” says Harrill, who has been in
the business 40 years. “And so we’re going to go
after every part of it, because you just can’t tell.”
There are items, however, that fit the catego-

›
ry best: grab-and-go snacks, he says.
Here, CSP takes a look at snacking,
a wide-ranging foodservice daypart al-
ways evolving in c-stores.

C S P C AT E G O RY D I G E S T 31 CANDY & SNACKS

CANDY & SNACKS › RETAILER OPPORTUNITY
Sweet bologna and cheese cups, always available in Rutter’s cold case, have sold well as a grab-
and-go snacking option.
T
oday, 32% of consumers say they
usually replace one meal a day with
snacks, and 61% say their definition
of a snack is anything consumed at
nontraditional meal hours, accord-
ing to the 2020 Snacking Occasion Consumer
Trend report from CSP sister research firm
Technomic, Chicago. As a growing number
of consumers replace a meal with snacks, the
report shows, retailers should offer high-pro-
tein options to help consumers satisfy crav-
ings. “High in protein” was tied for first place
with “energizing” among 10 choices of what
makes a snack appealing.
Harrill has high-protein options covered
when it comes to snacking. Four of his stores
have full delis and sell chicken, burgers and
more. A fifth store sells pizza only, and the
sixth does not have a fresh-food option.
“Our big grab-and-go [options] are wings,
pizza sticks, egg rolls and Hunt Brothers’ gr-
ab-and-go Hunk A Pizza, which is one-quar-
ter of a pizza,” he says. “We also sell a lot of
potato wedges and chicken strips, which are
made from 100% breast meat. Our chicken
C S P C AT E G O RY D I G E S T 32
is fresh, never frozen, and marinated and
breaded in store. In the morning, we do a
big biscuit business for the people headed
to work.”
Harrill’s stores aim to strike a flavor bal-
ance when it comes to their wings, which are
light on spice. “Most people do not want hot
wings,” he says. “We try to hit a medium that
will satisfy the most people.”
Chad White, foodservice category man-
ager at York, Pa.-based Rutter’s, echoes
Harrill’s commitment to grab-and-go snack
“As our customers are snacking
at all dayparts, we work to
promote items and have them
available as much as possible to
accommodate all customers.”
CANDY & SNACKS
options. The most successful snacking items
are quick to grab, easily accessible and easy
to eat on the run, he says. “Sweet bologna
and cheese cups are a high-selling item that
is available for a quick buy in our cold case
and always available. This product is already
prepared and easy to eat on the road.”
White says Rutter’s promotes snacking
with “twofer” offers and by adding signage
at points of sale. “The signage is at times to
promote an offer but also used to just get the
word out that we have the product,” he says.
“We also market on social media and on the
kiosk to bring more visibility to the product
or offer.” And because Rutter’s customers
are snacking during all dayparts, “We work
to promote items and have them available
as much as possible to accommodate all
customers.”
White says Rutter’s promotes hot snacks
by staying true to their daypart but promotes
and makes cold-case and center-store items
always available. “At breakfast, we promote
our (hot) breakfast snacking items, such as
French toast tornados, and keep the hot-
hold full during breakfast,” he says.
To drive foodservice traffic into his stores,
Harrill includes promotions on gas pumps
via video ads and pumptoppers.
W
hen it comes to which sell better,
self-serve snacks vs. those made
to order, White gives the edge
to the former because they are
more likely impulse buys. “For
example, edible cookie dough is a self-serve
snack with huge success,” he says, having
the advantage of always being available in
the cold case as a quick-impulse purchase.
However, “Mac and cheese bites are a great
item that many people grab in the later part
Photographs c ou rte sy of Ru t te r’s Pho tograph by judith harrill CANDY & SNACKS › RETAILER OPPORTUNITY

Drop-In keeps a table of name brand and repackaged sweets near the checkout.

of the day, but it is certainly an item that is
made to order.”
Ultimately, White says, a good mix of
made-to-order and self-serve items for
quick impulse brings the most success.
Harrill concurs on the benefit of a mix
of products, adding a financial perspective.
Ten feet from a Drop-In checkout, he says,
is a table of sweets, some prepackaged, like
Hostess, and some repackaged items from
his distributor, Sysco, such as cakes and
pies.
“Overall, you’re going to sell more name-
brand stuff, but you’re going to make better
margins off of the repackaged items,” he
says. “You take a cake and cut it into 10
slices or eight slices and put $2.99 on it. I
said ‘This’ll never sell,’ but darn, it does. …
Compared to packaged, it’s more like a fresh
cake.”
This freshness component is an aspect
that plays well with consumers, according
to Technomic, which in its Q4 2020 C-Store
Consumer Marketbrief found 32% of those
surveyed said they increased their c-store
purchases of food that “looks/tastes fresh.”
Harrill says selling fresh desserts near
the checkout, a recent development start-
ed during the pandemic as a comfort-food
addition, is a success that caught him by
surprise. “We can’t keep these (in stock),”
he says. “We had red velvet slices in a clam
shell. As soon as they turn around from the
checkout counter, they’re going to see all
these sweets.”
Also during the pandemic, Harrill noticed
that customers’ snacking tastes changed
somewhat, with a shift from chips to more
nutritional items like potato wedges.
This nutritional change also is reflected
in the Technomic 2020 snacking trend re-
port, which included “energizing,” “high in
vitamin C,” “high in vitamin D,” “contains
antioxidants,” “high in fiber” and “high in
calcium” as attributes that increase the ap-
peal of a snack.
“We were fortunate to be one of the only
places open for miles around during the pan-

C S P C AT E G O RY D I G E S T 33 CANDY & SNACKS

CANDY & SNACKS › RETAILER OPPORTUNITY

At breakfast, Rutter’s promotes hot breakfast snack items, including this French Toast Tornado.

demic,” Harrill says. “I hate it for the people
that were sick and having to stay in, but it
really was a boost to our business. But they
were buying heavier snacks, more of the
meat-and-potato-type variety.” Because of
the difficulty in finding a good selection of
foods, Harrill says, customers would “get a
snack, and then they’d also get something to
take home.”
early in the day and bending dayparts sub-
stantially to meet customers’ needs. Harrill
says he won a new customer in July from a
c-store nearer to the customer by promising
him a pizza at 6 a.m.
“Our manager told that guy, if you want
pepperoni pizza at 6 o’clock, you just call me
and I’ll have it for you,” he says.
The competitor “didn’t want to do pizzas
until 10 o’clock. …. Starting at 7 o’clock, we
put pepperoni pizzas out because we’ve got
to the small size of his c-store chain. “We are
small, but that means we can be more agile,”
he says. “We’re going to get something and
have it out there as soon as we can. And I think
our customers know that every time they
come in the door, from one week to the next,
we’re going to have something different.”
That variety of foodservice offerings in
general, and of snacks in particular, is a key
to c-store success he thinks will become only
more crucial.

O
ne trend that will never change is third-shift people coming in, and they don’t “I’ve said this before: I don’t see how peo-
students coming in after school, want a breakfast pizza, but they want a pizza. ple make it these days with the margins if they
Harrill says. This observation is bol- … And then we run through lunch.” don’t offer foodservice,” he says. “And I think
stered by the 2020 snacking trend This nimbleness is a trait Harrill attributes it’s going to be more and more the norm.”
report, which shows 74% of con-
sumers say they snack at least once per day.
Also, younger consumers snack the most
and are more likely than older consumers
to eat three meals daily with many snacks
in between.
“The rhythm of our store is it’s either
school’s in or school’s out,” Harrill says, add-
ing that being near both high schools and

Photographs c ou rte sy of Ru t te r’s

grammar schools really makes a difference.
“At 2:30, we’re ready with pizzas and pizza
sticks,” says Harrill, who varies what’s in the
warmer and goes “a little heavy on egg rolls
and pizza sticks during that time frame.”
Time frames and dayparts in general, for
Harrill, are fluid. “There are certain things
that are considered lunch items that we’re
going to have out there at breakfast time,”
he says. If there was ever a “The customer
is always right” mentality, it comes into play
here at Drop-In by starting cross-promotions Rutter’s guests tend to gravitate toward made-to-order mac and cheese bites later in the day.

C S P C AT E G O RY D I G E S T 34 CANDY & SNACKS

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