{"id":2921,"date":"2020-07-01T15:16:45","date_gmt":"2020-07-01T19:16:45","guid":{"rendered":"https:\/\/maltproducts.com\/?p=2129"},"modified":"2021-01-08T19:04:48","modified_gmt":"2021-01-08T19:04:48","slug":"a-growing-market-formulation-twists-enhance-pretzel-offerings-as-healthy-snack-alternatives","status":"publish","type":"post","link":"https:\/\/maltproducts.com\/maltproducts\/2020\/07\/01\/a-growing-market-formulation-twists-enhance-pretzel-offerings-as-healthy-snack-alternatives\/","title":{"rendered":"A GROWING MARKET: Formulation twists enhance pretzel offerings as healthy snack alternatives."},"content":{"rendered":"

The pretzel market continues to grow, with core offerings showing strength and strategic formulation twists bringing in some added diversity. Pretzels are often considered a healthier snack alternative compared to some other salty snacks, so select better-for-you strategies resonate with shoppers. And while traditional pretzels continue to sell well, some flavor diversity can cultivate new levels of attention.<\/p>\n

MARKET DATA<\/span><\/p>\n

According to IRI, Chicago, dollar sales of pretzels increased 7.0 percent to $1.3 billion, based on data for the 52 weeks ending May 17, 2020. One of the key businesses in this segment is Snyder\u2019s-Lance, part of Campbell Snacks, which had $480.8 million in sales, up 6.6 percent. Its leading pretzel brand, Snyder\u2019s of Hanover, racked up $450.8 million in sales, a 7.2 percent increase.<\/p>\n

Another top performer in this segment is Utz Quality Foods, which overall grew 10.3 percent to $121.2 million. Its core Utz brand grew 9.5 percent to $95.9 million, while\u00a0its Utz Specials line grew 11.5 percent to $18.4 million. Its Utz Select line also saw an increase, up 2.3 percent to $3.9 million.<\/p>\n

Unique Pretzel Bakery had another good year, with overall growth of 14.8 percent to $17.5 million. Its signature Unique Splits brand grew 18.0 percent to $11.9 million.<\/p>\n

One standout performer for the year is Dot\u2019s Homestyle Pretzels, which had a fourth consecutive year of dollar sales growth over 100 percent. For the current reporting period, the company saw its sales increase 124.6 percent to $84.5 million.<\/p>\n

The chocolate covered salted snack segment\u00a0 of \u201cother snacks\u201d grew 4.3 percent to $310.1 million\u2014a category that strongly features chocolate-covered pretzels. DeMet\u2019s Candy Co. is a leader in this market. Its Flipz line grew 2.8 percent to $66.6 million for the year. The Hershey Co. also saw growth, up 5.3 percent to $57.5 million.<\/p>\n

Its Hershey\u2019s brand chocolate-covered pretzels business grew 11.3 percent for the year, garnering $30.8 million in sales. Sarris Candies also had a good year in the segment, with its chocolate-covered pretzels up 14.4 percent to $3.9 million.<\/p>\n

LOOKING BACK<\/span><\/p>\n

The pretzel market often moves slower than other salty snacks in adopting new flavors, according to Jeff Miller, Ph.D., associate professor, Department of Food Science and Human Nutrition, Colorado State University, Fort Collins, CO. \u201cA lot of the crazier flavors we see in snack foods don\u2019t work as well with the surface texture and coarser salt of a pretzel. Stuffed pretzels haven\u2019t really moved much beyond peanut butter and cheese.\u201d<\/p>\n

The pretzel consumer is a bit more conservative, so simple products really are the key to success in this market segment, Miller adds. \u201cA great balance between crunch and salt is what grabs pretzel consumers. Clean labels are very important\u2014 and will be for the foreseeable future. Pretzels are a great choice for this, because they don\u2019t use a lot of complicated ingredients to get their texture and \ufb02avor.\u201d<\/p>\n

But some snack producers have seen traction in pretzels featuring a higher level of diversity.<\/p>\n

Consumers are embracing a variety of savory and sweet \ufb02avors, as well as new textures and shapes, according to Betsy Morreale, vice president, salty snacks, Campbell Snacks, Norwalk, CT. \u201cOur Snack Factory Pretzel Crisps keep consumers engaged.\u201d<\/p>\n

In 2019, Snack Factory introduced a Pretzel Crisps Drizzlers line featuring indulgent \ufb02avors such as Milk Chocolate & Caramel and Dark Chocolate. The brand also expanded its line of gluten-free o\ufb00erings with its Pretzel Crisps Gluten Free Everything \ufb02avor.<\/p>\n

Another customer favorite from Campbell Snacks is its new Snyder\u2019s of Hanover Rounds pretzels in Sea Salt and Butter, bite-sized pretzels with a light and airy texture.<\/p>\n

Unique Pretzel Bakery, Reading, PA, has experimented with some minor formulation tweaks, notes Justin Spannuth, vice president and chief operations o\ufb03cer.<\/p>\n

\u201cNew pretzel products have tended to be line extensions of current product types, mainly seasonings.\u201d And the segment is seeing increased competition from private label. \u201cMost generic- style pretzel products, such as sticks, minis, and thins, are seeing sales transition from branded to store brand because of price and retailers trying to sell more own-brand items.\u201d<\/p>\n

Some specialized diets could \ufb01nd a friend- ly snacking option via some types of pretzels. Unique Pretzel Bakery o\ufb00ers a 100 percent Whole Grain Sprouted Wheat pretzel that is organic and has no added sugars. \u201cIts digestibility and nutrient availability is better than any other pretzel on the market,\u201d says Spannuth. \u201cIn fact, it has twice the bio-accessible polyphenols of any other snack we had tested.\u201d This was a test Unique Pretzel Bakery contracted looking for the availability of antioxidants. \u201cThe digestibility has been proven through claims of many diabetic customers,\u201d he says.<\/p>\n

Amy Targan, president, Malt Products Corp., Saddle Brook, NJ, has seen a signi\ufb01cant amount of innovation in the pretzel sector, including di\ufb00erent shapes and unique \ufb02avors, including pro\ufb01les featuring sesame oil and sriracha hot sauce, and fusion \ufb02avors such as bagel and pretzel combos. \u201cAs with other bakery and snack products, we\u2019re also seeing a push for pantry friendliness, including \u2018no sugar added\u2019 and \u2018gluten-free\u2019 designations.\u201d<\/p>\n

For clean-label appeal, Targan notes that Malt Products Corp. o\ufb00ers MaltRite\u2122 liquid and dry malt extracts that can eliminate the need for GMO ingredients such as dextrose and others commonly used to enhance pretzel flavor, color, and shelf life.<\/p>\n

LOOKING FORWARD<\/span><\/p>\n

In the coming year, Miller sees an opportunity for more sweet pretzels, such as products featuring ingredients like caramel and sea salt, as well as some interesting dark chocolate combinations. He says pretzel thins will continue to grow, because consumers see them as a healthy snack choice. \u201cDemand for hot foods continues to grow, so more spicy pretzels will be seen on shelves. Gluten-free options will continue to grow, and pretzels for Paleo\/keto diets offer an opportunity.<\/p>\n

Buttery pretzels, both hard and soft, may be an unexpected contender for growth among niche products.\u201d<\/p>\n

Targan suggests that lingering effects of the COVID-19 pandemic will affect the way snacks like pretzels are consumed. As consumers continue to adjust to new health and safety best practices, the on-the-go trend featuring single\u00ad serve packages that was already burgeoning pre\u00ad COVID will see an even greater uptick.<\/p>\n

John Eshelman, director of pretzel and snack machinery sales, Reading Bakery System s, Robesonia, PA predict s that more sourdough pretzel products will be produced in traditional and non-traditional shapes. He also anticipates new marketing angles touting the marriage of craft beer and pretzels, with additional ingredients, such as malted barley and hops, added to formulas.<\/p>\n

The ability of pretzel producers to handle a variety of ingredients in their baking systems, specifically whole grain ingredients, will go a long way toward providing more-nutritious snacks and cleaner labels, suggests Jeremy Bunch, director of research and development. logistics, Shepherd’s Grain, Reardan, WA “For example, salt is sprinkled on pretzels, but can they also sprinkle on healthy ingredients such as whole flax seed or whole millet seed? An additional challenge is sourcing ingredients from sustainable farmers who have implemented regenerative agricultural practices. The supply chains for these sustainable ingredients are difficult to manage on a large scale.”<\/p>\n

As more commoditized pretzel types continue to trend toward retailers’ store brand lines, pretzel producers will need catalyze growth through innovations centered on high product quality, suggests Spannuth. “Whether process or ingredient type, quality will matter for branded products to succeed.”<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

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