Automatic Merchandiser - 17

tay-at-home orders during the COVID-19
pandemic have supercharged Americans'
love for indulgent treats, according to new
research and sales spikes reported by snack
and confection giants. As consumers return to
work, vending and micro market operators can
ride this wave by ensuring the right mix of triedand-true favorites and novelties.
What's driving snacking to be a pandemic
pastime as social distancing, health concerns and
economic uncertainty stretch on? The consensus
is that consumers - as is historically the pattern
in times of crisis - turn to salty and sweet indulgences for comfort and an escape from stress. It's
also a way for families to share a simple pleasure
with entertainment, social gatherings and diningout options limited.
Economic uncertainty also has consumers
splurging on small indulgences, and snacks and
confections certainly fit the bill. With people
spending more time at home comes more grazing
and round-the-clock eating than usual.
BY THE NUMBERS

Snack food consumption has increased by 8%
during the pandemic as consumers seek comfort
through savory and sweet snacks, according
to The NPD Group's Snack Food Behaviors in
Challenging Times study. During the Great
Recession, between 2008 and 2010, snack foods
increased by only 1%.
"The roles of comfort and enjoyment are
likely more important to snacking now compared
to during the last recession given the dual stressors of financial and public health concerns," Port
Washington, N.Y.-based NPD said in its report.
In April, during the height of the shelter-athome orders, 37% of consumers told NPD they
wanted to make sure they had sufficient snack
foods on hand. They said they were well-stocked
on salty snacks and frozen sweets more than
other items.
"We've seen consumers turn to indulgent
snack foods in other challenging times, and
although history isn't repeating itself during
COVID, it is rhyming," said NPD food and beverage industry analyst Darren Seifer. "Although we
can't predict what's going to happen in the future,
I think it's safe to say snack food manufacturers and retailers can expect elevated snack food
usage while COVID-19 restricts our restaurant

Illustrations: 189106948 | Setory | Dreamstime

usage and overall movement, in particular school
closings and work-from-home orders."
Chicago-based snack giant Mondelēz International - maker of OREO, RITZ, Cadbury chocolate and TRIDENT gum - had a strong first
quarter in 2020 as snacking increased amid
the coronavirus pandemic. Net revenues of
Mondelēz's North American business were up
15% in first-quarter 2020 from the previous year.
During the 17-week period that ended on
June 27, consumers bought $3.7 billion worth of
chocolate, a 6.3% increase from the comparable
period last year, according to Nielsen data.
PepsiCo also reported that its snack sales
rose in the second quarter. Sales for the Frito-Lay
division climbed 7% in the period, while Quaker
Foods' revenue increased by 23%.
From minimal travel and socially distanced
gatherings, to when, where and how consumers shop for snacks, consumer behavior is likely
to have a lasting impact on the months ahead,
according to Purchase, N.Y.-based PepsiCo's latest edition of its U.S. Snack Index.
"Since the onset of the pandemic, what we
eat, where we buy, and how we engage with one
another has shifted dramatically, and we've had
to reorient our business to address this," said
PepsiCo Foods North America chief executive
officer Steven Williams. "Our ability to remain
agile at the most critical time has enabled us to
successfully meet consumer demand."
PepsiCo found that as people continue looking for some level of normalcy, many are turning
to snacking. The Frito-Lay Snack Index found
85% of respondents said eating their favorite
snack makes them feel "normal." The overwhelming majority (83%) said their favorite summer
snacks remind them of good times and nearly
half (48%) said eating their favorite snack makes
them feel happy.
IRI retail sales data also shows salty snacks
have been the No. 1 food item that's contributed
to sales growth at retailers since early March,
when consumers were shifting purchasing priorities amid stay-at-home orders for various states.
The Frito-Lay U.S. Snack Index survey data
also revealed many consumers are still trying
new snacks, with 92% saying they plan to continue to eat them once the pandemic is over, and
about one-fifth of respondents reporting they are
developing new rituals around food.

37%

of consumers
told NPD they
wanted to
make sure they
had sufficient
snack foods
on hand. They
said they were
well-stocked on
salty snacks and
frozen sweets
more than other
items.

$3.7
billion

worth of
chocolate was
sold during a
17-week period
that ended on
June 27.

83%

said their
favorite summer
snacks remind
them of good
times and
nearly half
(48%) said
eating their
favorite snack
makes them feel
happy.

September 2020 * VendingMarketWatch.com

http://www.VendingMarketWatch.com

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