This column shows that the pulse of the industry is felt “up and down the street,” where sales and marketing efforts influence consumers in a variety of retail venues — from “mom and pop” stores to warehouse clubs — snack products return profits for manufacturers and retailers alike.

As always, we welcome your comments and ideas for future “Up and Down the Street” columns. Please send them to SFA’s Vice President of Communications Ann Wilkes at awilkes@sfa.org or call her at 703.836.4500 ext. 204.

U.S. retail sales of nuts and dried fruit increased 7.9% between 2002 and 2003 to reach $3.3 billion, according to a new report from Mintel International. The popularity of these products is due to a number of reasons, including health claims touting the benefits of nuts, and new product and packaging introductions for both nuts and dried fruit.

Snack nuts and seeds represent the largest segment within the nuts and dried fruit category, totalling nearly $1.3 billion in sales in 2003, or 13% more than in 2001, notes the report entitled, Nuts and Dried Fruit. Within that category, snack seeds represented $101 million in sales in 2003, a 3.9% increase from the previous year; while sales of snack nuts in 2003 were $1.15 billion or an 11.8% increase from the previous year. Nuts used for baking accounted for an additional $497 million in sales during 2003.

Nuts continue to receive a boost from positive health news. Just last year, the U.S. Food and Drug Administration (FDA) approved the use of a qualified health claim allowing suppliers and marketers of almonds, pistachios, peanuts, hazelnuts, walnuts and pecans to include the following statement on their label: “Scientific evidence suggests but does not prove that eating 1.5 ounces per day of most nuts, as part of a diet low in saturated fat and cholesterol may reduce the risk of heart disease.”

Nut sales are also benefiting from an aging population looking for healthy snacks. While snacking is universal, Americans over 45 will have the strongest potential to impact the salty snack market. The sharp 27% rise in population of those over 45 from 2005 to 2010 could potentially help market sales as this group will represent over 30% of the population by 2010.

To appeal to consumers looking for convenience, manufacturers are producing on-the-go packaging for both snack nuts and dried fruit. These include easy-to-snack from containers — such as pouches and bags — that provide consumers with a convenient way to transport and consume the products.

Mintel’s report includes the results of consumer research among 1,004 adults, conducted during November 2003 by Technomictria; and data from The Simmons National Consumer Survey, carried out from June 2002-May 2003, among a sample base of 20,802 adults. When asked if anyone in their household uses nuts for cooking and snacks, 73% of the respondents answered “yes,” 25% answered “no,” while 2% either said they didn’t know or gave no answer. For those 65 and over, 80% said “yes.” The use of nuts in households decreased with younger consumers. Among those aged 18-24, only 46% answered “yes.”

Geographically, the highest usage of salted nut is in the Midwest at 80%, compared to 74% for the U.S.; while the highest usage of unsalted nuts is in the West at 58% versus 51% for the U.S. When asked where they typically purchase nuts or dried fruit, 77% of respondents said the grocery store, 12% said C-stores, 11% purchase them in health food stores, 10% in natural grocery store, 4% from vending machine, 3% at specialty nut stores, 11% responded “other,” and 8% said they don’t buy nuts or dried fruit. (See accompanying chart for a breakdown of what types of nuts consumers are eating based on the part of the country they live in.)

Concerning nut allergies, the report noted that based on research by the American Academy of Allergy, Asthma and Immunology, only 0.8% of families said they had an allergic child in 2002 versus 0.4% in 1997. “While accepting that many children grow out of allergies, such a rapid increase in allergy suffering among children is notable and should be monitored by players in this market,” Mintel advised.

The report concluded by noting that, nuts and dried fruit are strongly positioned as healthy and convenient snack options, and nuts are considered by respondents to be a good source of protein. Additionally, fat content does not appear to be a major concern of those who consume nuts. Opportunities exist in both the nuts and dried fruit categories to educate consumers both on the nutritional value and content of the products. Mintel predicts that total U.S. FDM sales of nuts and dried fruits will increase 32% at current prices and to increase 17% at constant prices over the five-year period of 2003 to 2008.

Mintel produces more than 600 reports each year, covering an extensive number of sectors and focusing on topical marketing issues. Snack Foods Association is proud to be associated with Mintel and is offering all SFA members a 10% discount on the new U.S Nuts and Dried Fruit 2004 report. To receive free contents page listings, please contact Caroline Sack at 1 312 943 5250 or email info@mintel quoting SFA04 to receive your discount.

Types of Nuts Used, by Geographical Region
Type	All %	Northeast %	Midwest %	South %	West %
Salted	74	74	80	76	76
Unsalted	51	53	47	48	58
Dry roasted	67	66	67	66	70
Honey roasted	40	38	39	40	26
Oil roasted	16	16	16	15	17
Unroasted	25	24	24	24	26
Peanuts	65	66	65	63	62
Cashews	54	56	56	51	53
Mixed nuts	48	42	50	48	50
Walnuts	47	49	54	40	52
Pecans	42	26	46	50	30
Almonds	38	35	37	34	50
Sunflower seeds	30	26	29	28	39
Pistachios	27	35	23	22	32
Macadamia nuts	15	14	12	14	20
Filberts & others	6	6	5	5	9
Without shells	90	90	92	89	90
With shells	40	43	37	38	45
Where nuts are grown, weather and general trends in health and fitness all affect nut consumption in regions across the U.S. Source: Mintel/Simmons NCS based on 15,594 adults aged 18 and over, whose households use nuts.