Snack manufacturers seek to adapt to changes in consumption

Manufacturers of snacks show adaptation to the new habits of the consumer, facing an unstable economic scenario and greater concern for health. The sector has recovered in recent years, after being impacted by the crisis. "Last year, this market grew 7.9% in volume. There is no category in shrinkage and cheaper segments, such as extruded maize, grow above the market, "says Kantar Senior Account Executive Priscilla Bindi. She points out that the consumption of the product grows in all classes, but with emphasis on the Public C. "The snack is very stable, with presence in more than 90% of the households buyers. It is a category that grows by the search for indulgence. " According to a survey by Kantar, in 2018 there was an increase in average spending and volume consumed. "What we realize is that the snack is not attracting new homes, but that the usual public is buying larger packages. The most outstanding selling channel is the attack. The consumer is seeking to pay less for more, "he notes. Although concern about healthability is a market trend, this seems to have no impact on the category. "It is an even small factor among the snacks. We identified that consumption fell in households with young children, but we cannot say for sure that this is due to health concern, "says Priscilla. Food Snack manufacturers seek to adapt to changes in consumption Impacts of the economic crisis and the greater concern with healthy habits stimulate companies to develop strategies and find different channels of growth in the Brazilian market Golden Corn Crosshairs expansion to the north and northeast regions Golden Corn Crosshairs expansion to the north and northeast regions PHOTO: DISCLOSURE RICARDO CASARIN • SÃO Pauloposted on 20/05/19 at 05:00 Manufacturers of snacks show adaptation to the new habits of the consumer, facing an unstable economic scenario and greater concern for health. The sector has recovered in recent years, after being impacted by the crisis. "Last year, this market grew 7.9% in volume. There is no category in shrinkage and cheaper segments, such as extruded maize, grow above the market, "says Kantar Senior Account Executive Priscilla Bindi. She points out that the consumption of the product grows in all classes, but with emphasis on the Public C. "The snack is very stable, with presence in more than 90% of the households buyers. It is a category that grows by the search for indulgence. " According to a survey by Kantar, in 2018 there was an increase in average spending and volume consumed. "What we realize is that the snack is not attracting new homes, but that the usual public is buying larger packages. The most outstanding selling channel is the attack. The consumer is seeking to pay less for more, "he notes. Although concern about healthability is a market trend, this seems to have no impact on the category. "It is an even small factor among the snacks. We identified that consumption fell in households with young children, but we cannot say for sure that this is due to health concern, "says Priscilla. Strategies the Golden Corn bets on the expansion of presence in the Atacarejo channel. "We're looking for the big supermarkets. We are already at Assaí and we get a record in Atacadão ", says the director of the company, Pedro Rodrigues. Manufacturer of the brands Lobits and Tira Teima, the company aims at a lower income audience. "In São Paulo, the consumption of corn and wheat based products has been reduced, due to the search for healthability. But this does not affect our audience, of class CDE. " The company has plans to arrive in the north, Northeast and Midwest regions. "We studied having a greater presence in these regions. A big challenge is the freight, which makes it difficult to make a price composition to be competitive with local players in a low value-added product market, "evaluates the executive. Rodrigues explains that the golden corn produced for 12 years, in a third-party way, snacks from Elma Chips. "Our appeal is quality. We acquire know-how with the market leader and we have raw material suppliers as good as they are. " The company predicts growth in 2019 and studies ways to reduce costs without affecting production. "We seek to improve the negotiation of inputs without decreasing the quality. We are also investing in our machinery, "says the executive. He claims that the company's factory in Embu das Artes (SP) is running 24 hours a day. "We used to occupy 100% of the capacity in alternating months, which brought the risk of bottlenecks. So we inaugurated a branch in the same city, for the production of wheat products. We now occupy between 60% and 70% of the lines. " The manager of nutrition and product development of the Green World, Flávia Morais, understands that the concern with health brings many opportunities for the company. "Due to the fierce competitiveness, it is essential to develop options that are differentiated by their composition, flavor, practicality or cost-benefit." The network of natural products stores has sweet and savory snack lines. "We are growing in the category snacks in own brand through outsourcing model. This year we have already released tapioca biscuits, Cocada jam, guava jam, sweet milk and paçoca and coconut chips and we will make more launches in the 2nd semester. Our goal is to launch 100 products totaling 300 products own brand by the end of the year, "says Flávia.De agreement with the executive, the market of healthability and consumption of healthy and natural foods continue to grow. "We plan to inaugurate 50 new stores and grow 25% compared to 2018 to achieve R $731 million revenues in 2019."