The June issue of NACS Magazine included an article, excerpted here, written with support from Mondelez International, a NACS Hunter Club member. The complete article is available here.

“The eating habits of Americans are undergoing a wholesale change as snacking becomes more a part of the daily routine,” NACS reported in its 2013 State of the Industry Report. “In fact, 24/7 snacking is becoming the new normal for today’s consumers.” Gone is the structure of three square meals a day as people seek instant gratification — eating what they want, where they want and when they want, whether for a quick energy boost, to fuel themselves in lieu of a full meal or indulge in a treat.

Americans’ collective palate has changed, too, with snacking no longer relegated to candy bars and chips. A rising prioritization on health and nutrition has spawned a new subcategory of snacking products; to optimize snack sales, the convenience retailer must accommodate both the masses with traditional snacks and up-and-coming niche snackers with healthier alternatives.

Indeed, American consumers are devouring snacks, a reflection of changing social dynamics whose decline in the number of structured meals has been accompanied by a commensurate rise in snack occasions. Between 2010 and 2013, daily snack frequency has increased among consumers who snack multiple times each day and the increases are taking place at all hours — early morning, morning, afternoon, evening and late evening — evidence that positions snacking as more than just a pocket change impulse purchase and one meriting consideration equal to a meal.

The news is compelling for convenience retailers, whose stores capture $13 billion annually in snack sales, according to the latest Nielsen data. And while chips and chocolate bars comprise just a fraction of the burgeoning snacks category today — basically the “what” of snacks — less clear are its “where, when and why.”

The numbers are strong, and they point to opportunities — not just within individual categories or subcategories, but throughout the convenience store. Consumers are snacking, that much is clear, and by understanding and leveraging their snacking needs, retailers can better lay out stores to drive increased shopper conversion, as well as increase basket size through the right complementary purchases.

While understanding shopper needs helps identify missed opportunities, it also helps explain existing snack purchasing behaviors, highly relevant information that helps develop strategy. According to Mondelez International, there are three universal needs that drive snack choices:

• Boost: recharge the mind and help focus
• Fuel: snacks that satisfy or provide nutrition
• Treat: a small reward that provides emotional satisfaction

After speaking with more than 25,000 consumers, Mondelez International learned that these universal snacking needs exist everywhere. No matter their age or where they live, people snack to feed the mind, body or mood. Once those classifications became clear, Mondelez International dug further, isolating the snacks associated with each need state while tallying their overall contribution to total purchasing dollars:

• Boost (17%)
• Fuel (34%)
• Treat (49%)

It’s a highly analytical approach to understanding snacking behavior and one that offers deep insights into snacking motivations. These insights into need states were further combined with extensive cohort analysis and deep dives into snacking occasions that generate the greatest snacking growth opportunities, or “moments.”

Once Mondelez International understood why people were snacking, it wanted to leverage that information — to maximize store snacking purchases with products and activations that best aligned to consumers and shoppers growing moments.

While a multitude of moments exist, according to Mondelez International, nine key moments represent the greatest opportunities for retailers, as well as manufacturers, to drive growth in snacking.  The company calls these snacking growth drivers More Moments. By offering a product mix as well as activations that align with these moments, retailers can better align to changing consumer snacking needs, overcome snacking barriers and drive incremental sales and profits.