Salty Snacks

Though category sales growth has slowed a bit since last year, salty snacks' sales volume increase remains positive across all channels. Indeed, the movement toward healthier eating has not adversely affected chip sales. Part of that could be due to new better-for-you offerings and other types of innovation. Take PepsiCo/Frito-Lay's new lightly salty chips. Available under the Fritos, Ruffles and

Though category sales growth has slowed a bit since last year, salty snacks' sales volume increase remains positive across all channels. Indeed, the movement toward healthier eating has not adversely affected chip sales. Part of that could be due to new better-for-you offerings and other types of innovation. Take PepsiCo/Frito-Lay's new lightly salty chips. Available under the Fritos, Ruffles and Lay's brands, the chips have 50% less sodium per 1-ounce serving than their traditional counterparts. For instance, Lay's Classic potato chips contain 180 milligrams per 1-ounce serving (about 15 chips), comparable to a slice of bread.

The category may also be benefiting from green initiatives. Frito-Lay's SunChips has introduced a fully compostable snack chip bag made from plant-based materials. The change is designed to significantly improve the environmental impact of its packaging.

Drug stores posted a 6% dollar volume increase, most likely a result of the channel's continued expansion of food offerings.

As for segment changes, dollar sales slipped 4% in food stores for pork rinds — once one of the fastest-growing areas. In comparison, the biggest movers were cheese snacks and potato chips.

52 WEEKS ENDING JUNE 13, 2010 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $8.4B 3.7
Drug $474.4M 6.4
F/D/Mx $9.3B 3.9
CALENDAR YEAR 2007 2008 DOLLAR SALES 2009
Supermarkets $7.2B $7.7B $8.3B
Drug $377.7M $428.3M $460.6M
F/D/Mx $7.9B $8.5B $9.2B

SUBCATEGORIES

52 WEEKS ENDING JUNE 13, 2010 DOLLAR SALES % CHANGE FROM LAST YEAR
Cheese Snacks $645.5M 6.6
Corn Snacks (no tortilla chips) $389.9M -0.9
Other Salted Snacks $1.1B 6.7
Pork Rinds $97.7M -4.0
Potato Chips $3.2B 6.7
Pretzels $613.1M 1.4
RTE Popcorn/Caramel Corn $210.2M 2.6
Tortillas/Tostadas $2.2B -0.5