Dive Brief:
- About 27% of Snyder's-Lance, Inc.'s portfolio is comprised of healthy, better-for-you foods, up from 24% this time last year, and nearing the company's overall goal of 33% of its portfolio.
- As Snyder's-Lance continues to align its strategy with consumer health trends, the company's product development efforts have been constant, including a slew of new products being introduced in the second half of the year. This development has helped drive growth for the company, including a 49% increase in net income and 20% increase in EPS excluding special items last quarter.
- Another driver for growth is expanded distribution as Snyder's-Lance looks to channels like e-commerce and C-stores for opportunities to reach more consumers.
Dive Insight:
Snyder's-Lance saw positive earnings last quarter in part because it is well-positioned in two categories: health foods and snacks. Aligning with consumer health trends is crucial for processed foods companies whose products are being shunned by consumers.
To maintain center store's appeal, processed foods companies are striving to make foods healthier, such as releasing products that are gluten-free or made with real fruit, as are included in Snyder's-Lance's upcoming product launch. Another option is to make new products or retool products to be devoid of artificial ingredients, such as Kellogg's removal of artificial colors and flavors from its cereals, announced last week.
The snacks industry is another appealing position for Snyder's-Lance.The global savory snacks market, which comprises a great deal of Snyder's-Lance's portfolio, was valued at $111.1 billion in 2014, but increasing at a predicted 7.1% annual growth rate from 2015 to 2020, the category is expected to hit $166.6 billion by 2020.
Another report concluded that the U.S. snack market is predicted to grow to $47.5 billion by 2015, up from $34.2 billion a decade ago, and also said that about 81% of Americans snack daily.