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Healthful Focus May Turn Around Declining Cracker Sales

Despite the fact that suppliers continue to roll out new flavors, shapes and line extensions to excite the mature $3.5-billion cracker category, Mintel International reports that sales have declined ten percent in constant dollars between 1999 and 2004.

The waning low-carb trend played a major role in the drop. Children as well—formerly a major market for cracker sales—have shown decreasing consumption, in part because of a backlash against processed kids’ foods and their role in weight gain. However, novelty products such as Pepperidge Farm’s Goldfish Blasted Flavor Crackers are still popular, rising 40 percent in sales since 2002.

In contrast, a healthful, natural focus may generate sales opportunities for specialty crackers. Crackers with whole grains or those perceived as all natural are gaining attention. The 2004 NASFT State of the Industry Report shows that specialty crackers, crispbreads and rice cakes sales have increased 9.2 percent from 2002 to 2004, to $512 million.

New Products
According to Mintel’s Global New Products Database (GNPD), there have been 898 new products in the cracker category since 1999. Despite declining sales, the number of new product introductions jumped 129 percent between 2002 and 2004, spurred mostly by healthier versions and flavor innovations. Seventy-three new products were introduced in the first four months of 2005 alone.

Denise Purcell is managing editor of Specialty Food Magazine.

Editor’s Note: Specialty Food Magazine is pleased to be working with Mintel on Research Spotlight. Mintel is a leading supplier of competitive media, product and consumer data. A 30-year reputation for delivering dependable and original market information has allowed Mintel to maintain Business Superbrand status in the U.K. Mintel’s multifaceted product line includes: Mintel Reports, a renowned market intelligence report series, publishing more than 600 reports annually covering the U.S. and Europe; and Mintel’s GNPD, the Global New Products Database, which monitors worldwide product innovation in consumer packaged goods markets. For more information, call 312.943.5250, or visit www.mintel.com. NASFT members may purchase Mintel’s Crackers report at a 10 percent discount.