Snac World - Official State of the Industry 2021 - 12

STATE OF THE INDUSTRY
occur not only in new product development but, as
importantly, has to be defined by how we manage
the processes by which we get these products to
market, " noted Matt Colford, executive director of
marketing and strategic selling, Old Dutch Foods,
Roseville, Minn.
" For me, " he added, " our focus on innovation
isn't just on new flavors, but rather it's about asking
how we innovate our entire process to be more efficient
and cost effective in the way we get to market.
Innovation has to occur throughout the entire
system. "
Greg Pearson, chief executive officer, Pretzels
Inc., Bluffton, Ind., emphasized that the overall
industry is now operating off a sturdy base.
" There has been tremendous growth across
many snack segments, so snack producers need to
keep innovating as they have over the last few years
and meet new demands to bring new and exciting
things to consumers, " he said.
Bill Blubaugh, senior vice president, marketing,
Utz Brands, observed that
the snack producer is focusing
on maintaining those
customers it picked up over
the past year and getting
new ones to try its products.
Convenience store and foodservice
traffic, he added, is
returning this year.
" The fact that our products
and brands are great companions
to at-home eating occasions, "
he said. " As long as
those behavior changes stick,
we should be able to see pretty
solid demand in the salty snack
category. "
12
SNAC WORLD 2021
For Utz Brands, 2020 was a transformational
year when the Hanover, Pa.-based snack producer
went public with the " UTZ " ticker on the New York
Stock Exchange.
During the past year, Utz has made three acquisitions,
including H.K. Anderson pretzels, On
The Border tortilla chips, and C.J. Vitners potato
chips and snacks. The company expanded its national
footprint of the Utz and other power brands
while strengthening its position in specific markets
through its highly popular, regional foundation
brands. These acquisitions will collectively enhance
its geographic footprint and market penetration of
its brands, according to Dylan Lissette, CEO of Utz
Brands, in a recent analysts' call.
This year, Utz is celebrating its 100th Anniversary in
the snack industry, as is Wise Foods, Berwick, Pa.
REEVALUATING MARKET EXPECTATIONS
Innovation took a hit last year as retailers struggled
to keep shelves full and companies of all sizes curtailed
new products. In fact, Ms. Lyons Wyatt said,
the industry saw the number of new products decline
by double-digits in 2020 versus the average of
the previous three years.
However, that lull isn't anything compared with
the Great Recession in 2008 when much of new
product innovation disappeared.
" We didn't see that [collapse] in 2020, " said
Lynn Dornblaser, director of innovation and insight
at Mintel, speaking at a recent SNAC International
webinar. " What we saw was that temporary hold on
the part of retailers. "
With R&D departments working remotely, snack
producers found the new product process had
been disrupted, but it's now returning to normal.
Snac World - Official State of the Industry 2021

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