Kids’ Snack Attack - May 2007
by Kristin Rose
May 6, 2007
Kids are notorious snackers. Marketing to kids, rising childhood obesity rates and on-the-go lifestyles challenge manufacturers to develop and promote products that satisfy both kids and parents.
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| When
asked to define a snack, 56% of children between the ages of six and 11 define
a snack as “anything I eat between breakfast, lunch and dinner.” |
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In
2005, there were 23.6 million children aged six to 11 years old in the U.S.,
accounting for a third of the population under the age of 18. These young
consumers are not only strong in number, they also wield significant power over
household spending and shopping habits—an estimated $650 billion of parental
spending annually, according to Mintel International.
The substantial influence children have in household spending is not a new
concept, especially when it comes to food. A national survey commissioned by
the Center for a New American Dream in 2002 found that 55% of kids say they are
successful in getting their parents to give in to their demands. (The “nag
factor”—kids use it, parents give in to it and manufacturers take advantage of
it.)
Marketing to Kids
Children are the target of abundant marketing tactics. Character merchandising
is perhaps one of the oldest forms of marketing to kids with animated
characters such as Kellogg’s Tony the Tiger promoting products and brands. Character
merchandising is an effective tool. In fact, research conducted for Mintel’s
report “Character Merchandising—U.S., March 2006” found that 61% of parents
indicate their child/children like to collect character merchandise, and nearly
half of parents believe character-licensed products increase the willingness of
the child to use a particular product.
Television advertising, especially on kid-oriented channels like Nickelodeon
and Cartoon Network, remains a prime tool for selling food to kids. Statistics
reveal that the average child watches more than 100 television commercials per
day. Some $15 billion is spent annually on messages aimed at the youth market.
Newer tactics include online strategies, allowing suppliers to hone in on
certain age groups and genders. One kids’ snacking market example is found on
Nestlé’s site, www.kids.icecream.com, which offers games to engage children for
long periods of time, exposing them to key brands and establishing brand
identity.
There is much debate regarding whether kids should be the recipients of such
marketing tactics. In fact, a task force of the American Psychological
Association has recommended restrictions on advertising that targets children
under the age of eight, based on research showing that children under this age
are unable to critically comprehend televised advertising messages and are
prone to accept advertisers’ messages as truthful, accurate and unbiased.
Snack food manufacturers are taking some responsibility in marketing to children
by channeling resources and promotions into education and programs to
counteract the rising obesity rates in the U.S. For example, the General
Mills Foundation invested more than $4 million in youth and health and
nutritional programs. In 2005, Kraft launched its “Sensible Solutions” labeling
program where “better-for-you” foods are highlighted, as did PepsiCo with its
“Smart Spot” program.
Trends and Innovation
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| An
Indianapolis-based dietitian has opted to define the PACK lunch. The PACK guide
which Kim Galeaz promotes includes Protein, All fruits and vegetables,
Carbohydrates and calcium, and Kid-friendly beverages. |
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Manufacturers
need to do more than implement and promote health-awareness programs. Products
need to provide a solid nutritional profile that parents will value and
children will enjoy eating. Studies like the “National Institute of Health’s
Report on America’s Children 2003” brought to attention foods thought to
contribute to childhood obesity (especially those high in fat and sugar), and
manufacturers were forced to re-evaluate not only their marketing, but more
importantly, their products’ nutritional attributes. The result has been a
plethora of reformulations reducing sugar, eliminating trans fats and utilizing
whole grains.
Besides nutrition, product innovation is also driven by Americans’ need for
convenience, which has catapulted single-serving snacks into the limelight.
According to Simmons’ data, 99% of kids eat single-serving snacks. For parents,
it offers a grab-and-go snack option to take in the car or throw in a school
lunch. Additionally, parents can utilize these convenient packs as a way to
foster a child’s growing independence by allowing them to get their own snack
with the knowledge that the portion will be controlled. The influx of
pre-sliced and pre-packaged fruits/veggies is modernizing produce so that it is
as convenient as a bag of chips, allowing produce manufacturers to be more
competitive in the kids’ snacking arena.
A growing trend is making snacks more meal-like rather than a simple snack. In
fact, Mintel’s consumer research performed for “Kids’ Snacking—U.S., August 2006” reveals that
46% of kids surveyed indicate they eat snacks that include a single item and a
drink other than water. This suggests the kids are partaking in a “mini-meal”
as opposed to a simple snack. Most adult weight-loss programs promote consuming
multiple smaller meals in lieu of three traditional square meals a day. The
promotion of “mini-meals” as a habit to begin during childhood could be
positive for the kids’ snacking market if manufacturers participate by
promoting “better-for-you” foods in an effort to promote a healthy lifestyle.
The numerous scientific studies illustrating the relationship between nutrition
and cognitive performance show that memory function directly correlates with
levels of blood glucose. Clearly, this is an opportunity for snack food
manufacturers targeting kids.
Kids Classify Foods and Define “Snack”
Not
only are snacks becoming more meal-like in terms of substance, but the
definition of a snack is wide open to interpretation. To gauge kids’
perceptions of what they eat as a snack, Mintel asked them to categorize a
selected list of foods as a snack, treat or both. The results indicate that
children seem to have a general consensus on what foods are categorized as
snacks or treats. For example, crackers topped the list of kids’ snack food and
was among the least likely to be reported as a treat; conversely, foods like
ice cream are thought of as treats, with few kids reporting them as a snack
food. There is a rather large gray area in which 25% to 35% of children
classified foods like pizza rolls, chips, fruit roll-ups or cookies as both
snacks and treats.
Progressing a bit further, Mintel asked kids to define a snack. Results show
that 56% of children aged six
to 11
define a snack as “anything I eat between breakfast, lunch and dinner,” while
40% say it is specifically something they eat after lunch, school or dinner.
The difference between the two statements is subtle, but the result implies
that snacking among kids is ubiquitous. Suppliers are keenly aware of marketing
snack products to be consumed anytime. For example, the Smucker Company
launched Jif To Go packaged in easy-to-open, disposable, single-serving cups
and is promoted for consumption anytime, allowing its user to spread, dip or
eat “as is.”
It’s Snack Time!
Mintel’s
consumer research found that decision making about snacks is split evenly
between kids and parents. Half of the kids said they are allowed to snack
whenever they are hungry, while the other half reported needing
parental/caregiver permission. However, parents are more apt to cede control
when it comes time to choose what type of snack is served, with 69% of kids
choosing the snacks themselves most of the time. A precipitous difference was
noted with regard to age, with parents choosing more for younger kids than
older ones. Fully 68% of kids say they make healthy snack choices, and 33% say
they try not to eat too many sweets. While these terms are subjective, it does
reveal that kids are becoming increasingly health-aware. Regardless, 96% of
kids know that their parents like to be aware of their snacking choices.
Salty, Sweet, Savory and Nutritional—A Plethora of Snack Options
Based
on “Simmons Kids’ Survey,” fall 2005, Mintel classified various types of foods
kids eat as snacks into salty, sweet and nutritional. Potato chips have the
strongest incidence for consumption by children aged six to 11 years old, with
96% eating the crisps, followed by popcorn products, crackers,
corn/tortilla/snack chips, pretzels and snack mixes. The majority of salty
snack innovations focused on portion control and portability; others sought to
increase kid appeal by adding “playability.” In February 2006, Frito-Lay
launched Baked! Cheetos Crunchy Cheese Flavored Snacks in a 20oz tub with
carrying handles that included two stay-fresh packs, a poster and Color Wonder
finger paints.
Nearly all children surveyed report eating sweet snacks, especially cookies and
ice cream. The increased attention and implementation of the FDA’s nutrition
labeling for trans fats had a significant impact on this segment, as nearly all
cakes, cookies, crackers, pies and other bakery items contain trans fat. Many
suppliers began reformulating baked goods to lower trans fat content. Yet, a
shift towards health-conscientious eating that focuses on moving away from
white flour and sugar content also impacts this market. Manufacturers are
successfully introducing sweet snacks made from multigrain cereal and utilizing
100-calorie packs as a way to offer portion control. In June 2006, Hershey
launched Snacksters Chocolate Cookies following these formats.
Portion and calorie controlled packaging indeed assists salty and sweet snacks
to obtain a healthier image, subsequently making the idea of a nutritional
snack even more subjective. Unequivocally, fruits and veggies are healthy
snacks. Kids’ favorite packaged foods like cereal, chewy granola, nuts and
granola are also considered healthy. With 93% of kids surveyed eating some
nutritional snacks, it seems children’s snacking habits could be pointed in the
right direction towards combating the rising childhood obesity rates. However,
perceptions of what is healthy still lack definition.
The “Simmons Kids’ Survey,” fall 2005, found fruit to be the leading healthy
snack among kids surveyed (78%), followed by cereal (45%). In 2004, leading
cereal manufacturers launched kid-friendly cereal varieties with sugar
reductions. For example, Kellogg’s introduced a third less sugar varieties of
Frosted Flakes and Froot Loops. General Mills utilized the whole-grain movement
to its advantage by classifying all its cereals as either “good” or “excellent”
sources of whole grain.
Mintel found that 50% of the kids surveyed report their favorite nutritional
snack is in their home “most of the time,” and 35% say “some of the time.”
Because snacks provide a substantial amount of a child’s food intake, parents
make an effort to keep favorite snacks on hand. Breaking down kids’ frequency
of consumption for nutritional snacks even further, Simmons’ data reveal that
kids consume an average of eight nutritional snacks per month—an equivalent of
two per week. This evidence would suggest that for other snacking occasions,
kids are turning to salty, sweet or savory snacks that offer less nutritional
value.
Savory snacks are more prominent as snacks evolve into the “mini-meal.” Product
innovation in savory snack foods focuses on smaller versions of traditional
kids’ favorites like single-serve pizzas or pizza/snack rolls. Although these
savory mini-meals are growing in popularity among parents and kids alike, these
snacks are not necessarily healthy choices. According to GNPD, in 2005 there
were 134 frozen snacks introduced, yet only 12 had any one of a long list of
healthy positioning claims. Further, of all 12 products, none clearly targeted
young children.
The Kids’ Snack Market—A Healthy Future
Kids
will always be incessant snackers. As such, children hold an important role
with snack food manufacturers both now and as future adult consumers. As the
incidence of childhood obesity continues to escalate, parents need to command
more control over kids’ snacking habits. While children do exert opinions and
utilize the “nag” factor regarding snacks, parents ultimately decide what types
of snack foods are available in their homes. It seems parents provide snack
food options, but in general, children actually choose what they will eat.
Meanwhile, snack food manufacturers are in the center of the childhood obesity
controversy and are being held accountable for marketing tactics that target
children. Mintel believes that snack food manufacturers that take an active
approach in helping parents win the snack food battle by offering products that
offer a solid nutritional profile and are delivered in an appropriate
kid-portioned size with kid-friendly tastes will reap the most future gains.
This article contains information from the Mintel reports “Kids’ Snacking-U.S.,
August 2006” and “Character Merchandising-U.S., March 2006.” Please visit
http://reports.mintel.com for more information or call Mintel at 312-932-0400.
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