Have you tried a freeze-dried mango? What about mushroom jerky or taro bites? These and other alternative snacks are pushing category sales and interest, although jerky remains the alternative snacks workhorse.
“Alternative snacks are an important category for convenience stores, as it’s one where suppliers can experiment with new flavors,” said Emma Tainter, NACS research analyst/writer.
According to Mark Falconi, vice president of sales and strategy for Greenridge Naturals, “Shoppers are moving away from traditional c-store snacks to healthier snacking options within the c-store channel.”
Alternative Sales
Alternative snacks dropped slightly in terms of its percentage of in-store sales to 1.63% in 2022 from 1.91% in 2021, according to NACS State of the Industry 2022 data. “The alternative snack category is a bit of a mixed bag on performance,” said Dan Meyer, consumer insight manager for convenience stores at General Mills. “Shoppers are making clear choices in snack spending, and we’re seeing c-store shoppers buying more bulk items in mass and club channels more recently (and taking it with them).”
But that doesn’t mean c-store sales are stale. The averages sales per store increased 5.1% year over year, from $3,650 in 2021 to $3,836 in 2022.
At Mighty Moose Mart in Keene, New Hampshire, the “alternative snacks category products generate more excitement than our traditional offerings,” according to owner Chris Rietmann. “The category has higher price points and better margins, too.” Last year, Mighty Moose Mart opened a second location bordering a college campus.
“[Students] want these alternative and healthier options—and our sales numbers support this,” he said.
At the more than 100 locations for Duchess Convenience Stores, the alternative snack category is doing well overall.
“However, the price point for these items is often a little higher than traditional snack category items, so we are seeing the category soften a little bit,” said Nathan Arnold, director of marketing for Englefield Oil, the parent company for Duchess, which has locations in and around Ohio. “Alternative snacks play into two different demographics in our stores—those customers looking for a quick, on-the-go item or a bundle to a sub or sandwich. Plus, there’s another group of individuals who are sourcing these items for a specific dietary need as their whole meal.”
Alternative Trends
Overall snack trends affecting alternative snacks include permissible indulgence and unusual flavors.
“We’ve seen consumers become more unashamed in their snacking as they look to reinforce joy and reprioritize well-being coming out of the pandemic and inflationary environments as a coping mechanism,” Meyer said. “Alternative snacks are the primary go-to for consumers looking to snack.”
Last year, hot new flavors with Korean, Indian and Mexican influences appeared in meat snacks, nuts and other snacks throughout the category.
“Alternative snack suppliers used unexpected flavor combinations and limited time offers to induce impulse shopping in the category,” Tainter said. “Looking forward this year, some new flavors include floral, Spam, spicy ranch and shawarma. New ingredients popping up in alternative snacks include sweet potato, mushroom jerky, taro bites, freeze-dried mango and legumes as a base for chips.”
In addition to new flavors, Mighty Moose Mart’s Rietmann sees low carb/high protein as the desired characteristics in snack products for the category. Meat snacks continued to dominate category sales, with 50.6% of sales in 2022, nearly double the next subcategory, other alternative snacks, which accounts for 25.5% of category sales, according to NACS SOI 2022 data.
Greenridge Naturals’ Falconi sees the meat stick subcategory pushing many of the category trends, such as meat sticks in jalapeño cheddar and spicy chili flavors.
“Beef sticks increase basket rings as well as provide healthier snacking options for c-store shoppers,” Falconi said.
At Platte Street Mercantile, protein-forward products leads the alternative snack category.
Another trend we’re seeing in alternative snacks is a focus on adding energy to common breakfast items.”
Said Janine Williams, CEO and founder of Impulsify, which runs mini convenience stores inside hotels, and co-founder of Platte Street Mercantile in Denver, “Much like the low-carb craze of the early 2000s, the ever-growing 25-, 35-, and 45-gram protein packaging attracts consumers wanting to lose weight, gain muscle, stay fit or just mimic their Instagram celeb favorites.”
Duchess customers are still snapping up low-carb and keto snack offerings. “Another trend we’re seeing in alternative snacks is a focus on adding energy to common breakfast items, such as cereal or granola bars,” Arnold said.
Williams pointed to the growing popularity of sleep-friendly snacks for evening treats, especially in Platte Street Mercantile’s hospitality and multifamily stores. For example, customers have been flocking to snacks rich in healthier ingredients that support sleep, such as B6, calcium, magnesium and zinc.
Alternative Interest
“Co-promotions can help extend alternative snacks as an add-to meal, such as bars plus coffee or snack mix and hot food,” Meyer said. “We’ve seen some back-and-forth growth in lunch and dinner more recently, especially as QSR prices are rising, making convenience stores more competitive.”
In Duchess’ new prototype stores, the alternative snack category has been moved to more prominent areas.
“New merchandising fixtures give these items better space and visual presence,” Arnold said. “Plus, we focus on promotional opportunities in this category, as it tends to perform well for us.”
Mighty Moose Mart merchandises the category at checkout or with prominent end cap displays.
“We also utilize twofer promotions to increase volume, and the higher margins in this category justifies those promos,” Rietmann said. “Traditional offerings remain at the forefront of consumers’ minds, but they sometimes see the alternatives as an offsetting positive decision to their basket.”
We see the alternative snacks category as continuing to grow and integrate more with established categories.”
In hotel locations, Williams said Platte Street Mercantile carves out “dedicated shelf space in all of our grab-and-go store designs and [creates] product assortment strategies for these categories to ensure hotel guests have access to snacks that meet special dietary needs as well as health and fitness goals.”
“We see the alternative snacks category as continuing to grow and integrate more with established categories,” Rietmann said.
Meyer added, “We believe this category will continue to be critical to the future of in-store success for c-stores. … This, along with chips, will likely be where continued innovation will come in, with more and more lines blurred, like mashing up candy in snack mixes or new bold flavor profiles.”