Products Covered
Report Methodology

Seven Product Categories
Excluded From Report
Anything Sweet Is Excluded
No Meats Or Meat By-Products
Anything Requiring Too Much Preparation Time
Focus On Retail
Federal Regulations

Market Size And Growth
• Table 1-1: U.S. Retail Dollar Sales Of Salted Snacks, By Category, 1995-2004 (Dollars): Potato Chips, Tortilla/Corn Chips, Snack Nuts, Popcorn, Pretzels, Extruded Snacks, Other Salted Snacks
  Factors Affecting Market Growth
  Snacks Meet The Increasing Demand For Quick, Easy Food
  Consumer Backlash Against Low-Fat Snacks
  Improvements In Packaging Increasing Snack Quality
  New Health Studies Boost Nut Sales
  Consumers' Concerns About Dietary Fat And Salt
  The Threat Of Private Label
  The Success Of Innovation
  Market Composition By Product
• Figure 1-1: Share Of U.S. Salted Snack Sales By Product Category, 1999 (Percent): Potato Chips, Tortilla/Corn Chips, Snack Nuts, Popcorn, Pretzels, Extruded Snacks, Other
  Market Composition By Region

Hundreds Of Marketers
Frito-Lay Dominates The Market
No Other Marketer Has A Comparable Place
Procter & Gamble Is A Distant Second-Place Marketer
General Mills—Pop-Secret, Chex Party Mix, And Bugles
Nabisco's Planters Subsidiary Dominates Nuts
Conagra Leads In Popcorn
Small Marketers That Loom Large In Pretzels, Extruded, And Popcorn Categories
Competitive Overview
Industry Structure Determined By Shelf Life Of Product
Frito-Lay Only National Marketer Of Traditional Chips
Regional Brands Bank On Regional Loyalties
All Marketers Strive To Keep The Category Hot
New Product Trends
New Flavor Trends
Gourmet Snack Trends
Natural And Organic Product Introductions
Low-Fat—With And Without Olestra
Kits Turn Salty Snack Into Mini Meal
Product Introductions Based On Packaging

Salted Snacks Distributed By A Variety Of Methods
Supermarkets Leading Outlet
• Figure 1-2: Share Of U.S. Salted Snacks Sales By Retail Outlet, 1999 (Percent): Supermarkets, Convenience Stores, Mass Merchandisers, Groceries, Warehouse Clubs, Vending, Drugstores, Other

Notes On Simmons Market Research Bureau Data
Consistent Factors In Salty Snack Use
Nearly Everyone Uses Potato Chips
Tortilla And Corn Chips And Snacks Widely Used, But Less So Than Potato Chips
Use Of Nuts Related To Age
Popcorn Second Most Widely Used Salty Snack
Pretzels Less Widely Used

What's A Meal And What's A Snack?
We Know It When We Eat It
Snack Foods And Snack Occasions
Definitions Must Be Arbitrary
Many Types Of Snack Foods

Scope Of Report
Excluded From Report
Anything Sweet Is Excluded
No Meats Or Meat By-Products
Anything Requiring Too Much Preparation Time
Focus On Retail

Old American Favorite
New Varieties Have Kept Category Fresh
Healthier Potato Chips

Different Products, But Both Made Of Corn
Tortilla Chips Introduced Into American Diet As Part Of Tex-Mex Trend
Dramatic Growth In 1990s
Marketed In Many Varieties

Microwaveable And Prepopped
Seen As Healthy Alternative To Chips
Growth Fueled By Microwave
Cheddar Cheese Most Important Flavor

A Kind Of Bread
Healthiest Of The Salted Snacks
No Longer Limited To Northeast

Single Varieties And Mixes
Peanuts And Almonds Flavored
Nuts Can Be Healthy

An Amorphous Category
Healthier Varieties Are Possible

Chips From Dehydrated Potatoes
Miscellaneous Snacks

Most Salted Snacks Bagged
Unusually Wide Range Of Package Sizes
Other Packagings
Freshness Dating

Federal Regulations
Nutrition Labeling And Education Act
Approval Of Olestra
FDA To Require Listing Of Trans Fatty Acids On Snack Food Labels

Salted Snacks Retail Sales Surpassed $15.6 Billion
• Table 3-1: U.S. Retail Sales Of Salted Snacks, 1995-1999 (Dollars And Pounds)
  Potato Chip Sales Top $5 Billion
• Table 3-2: U.S. Retail Sales Of Potato Chips, 1995-1999 (Dollars And Pounds)
  Tortilla And Corn Chips Sales Approach $4.1 Billion
• Table 3-3: U.S. Retail Sales Of Tortilla And Corn Chips, 1995-1999 (Dollars And Pounds)
  Snack Nuts Sales Accelerate To $1.6 Billion
• Table 3-4: U.S. Retail Sales Of Snack Nuts, 1995-1999 (Dollars And Pounds)
  Popcorn Sales Fall, Then Recover, To $1.3 Billion
• Table 3-5: U.S. Retail Sales Of Popcorn, 1995-1999 (Dollars And Pounds)
  Pretzel Sales Shrink To $1.1 Billion
• Table 3-6: U.S. Retail Sales Of Pretzels, 1995-1999 (Dollars And Pounds)
  Extruded Snacks Sales Climb To $939 Million
• Table 3-7: U.S. Retail Sales Of Extruded Snacks, 1995-1999 (Dollars And Pounds)
  Other Snacks Approach $1.4 Billion
• Table 3-8: U.S. Retail Sales Of Other Salted Snacks, 1995-1999 (Dollars And Pounds)

Chips Account For Three-Fifths Of Dollar Sales
• Table 3-9: Share Of U.S. Salted Snacks Sales By Product Category, 1999 (Dollars And Percent): Potato Chips, Tortilla/Corn Chips, Snack Nuts, Popcorn, Pretzels, Extruded Snacks, Other
• Figure 3-2: Share Of U.S. Salted Snack Sales By Product Category, 1999 (Percent): Potato Chips, Tortilla/Corn Chips, Snack Nuts, Popcorn, Pretzels, Extruded Snacks, Other
  Potato Chips Accounted For 35% Of Growth In Market
• Table 3-10: Share Of Overall Growth Of U.S. Market For Salted Snacks By Product Category, 1995, 1998, And 1999 (Dollars): Potato Chips, Tortilla/Corn Chips, Snack Nuts, Popcorn, Pretzels, Extruded Snacks, Other
  Supermarkets Represent 45% Of Sales
• Figure 3-3: Share Of U.S. Salted Snacks Sales By Retail Outlet, 1999 (Percent): Supermarkets, Convenience Stores, Mass Merchandisers, Groceries, Warehouse Clubs, Vending, Drugstores, Other
  Regional Differences
• Table 3-11: Regional Variations In Use Of Salted Snacks By Category, 1999 (Percent): Potato Chips, Tortilla/Corn Chips, Snack Nuts, Popcorn, Pretzels
  Sales By Season

Snacks Meet The Increasing Demand For Quick, Easy Food
Salty Snacks And The Home Entertainment Center
Consumer Backlash Against Low-Fat Snacks
Improvements In Packaging Increasing Snack Quality
New Health Studies Boost Nut Sales
The Aging Of America
Consumers' Concerns About Dietary Fat And Salt
Fat
Salt
Olestra Versus Indigestion
Meal Replacements And Other New Convenience Foods Compete With Salted Snacks
The Threat Of Private Label
The Success Of Innovation

Retail Sales Will Approach $20 Billion In 2004
• Table 3-12: Projected U.S. Retail Sales Of Overall Salted Snacks Market, 1999-2004 (Dollars)
  Potato Chip Sales To Climb 23%
• Table 3-13: Projected U.S. Retail Sales Of Potato Chips, 1999-2004 (Dollars)
  Tortilla And Corn Chips To Add $1.4 Billion In Sales
• Table 3-14: Projected U.S. Retail Sales Of Tortilla And Corn Chips, 1999-2004 (Dollars)
  Snack Nuts Will Be Fastest Growing Category
• Table 3-15: Projected U.S. Retail Sales Of Snack Nuts, 1999-2004 (Dollars)
  Popcorn Sales Will Grow Slowly
• Table 3-16: Projected U.S. Retail Sales Of Popcorn, 1999-2004 (Dollars)
  Pretzel Sales To Stabilize
• Table 3-17: Projected U.S. Retail Sales Of Pretzels, 1999-2004 (Dollars)
  Extruded Snacks Sales To Continue Moderate Growth
• Table 3-18: Projected U.S. Retail Sales Of Extruded Snacks, 1999-2004 (Dollars)
  Other Salted Snacks Will Grow At Around The Pace Of The Market
• Table 3-19: Projected U.S. Retail Sales Of Other Salted Snacks, 1999-2004 (Dollars)

Hundreds Of Marketers
Majority Of Companies Very Small
Frito-Lay Dominates The Market
No Other Marketer Has A Comparable Place
The Distortion Of Frito-Lay's Presence
Most Players Compete In More Than One Category
Procter & Gamble Is A Distant Second-Place Marketer
General Mills—Pop-Secret, Chex Party Mix, And Bugles
Nabisco's Planters Subsidiary Dominates Nuts
Conagra And General Mills Lead In Popcorn
Small Marketers That Loom Large In Pretzels, Extruded, And Popcorn Categories
Minor Marketers In Potato Chips, Tortilla/Corn Chips, And Other
• Table 4-1: Selected Salted Snack Marketers And Their Brands, 2000 (Listing): Marketers; Brands

Note On Share Data
Frito-Lay Stands Alone With Almost Half Of Salted Snack Sales
Six Companies On Second Tier
Nine Companies With Over 1% Of Potato Chip Sales
• Figure 4-1: Marketer Shares Of Overall Salted Snacks Market, 1999 (Percent): Frito-Lay, Private Label, Procter & Gamble, Conagra, General Mills, Synder's Of Hanover, Wise Foods, Nabisco
• Table 4-2: Marketer And Brand Shares Of Potato Chip Sales, 1999 (Percent); 14 Marketers, 19 Brands
  Frito-Lay Accounts For 82% Of Tortilla Chip Sales
• Table 4-3: Marketer And Brand Shares Of Tortilla Chip Sales, 1999 (Percent); 7 Marketers, 12 Brands
  Planters Accounts For Almost Half Of Snack Nut Sales
• Table 4-4: Marketer And Brand Shares Of Snack Nut Sales, 1999 (Percent); 11 Marketers, 11 Brands
  Conagra Leads But Does Not Monopolize Popcorn
• Table 4-5: Marketer And Brand Shares Of Microwave And Ready-To-Eat Popcorn Sales, 1999 (Percent); 10 Marketers, 15 Brands
  Frito-Lay And Snyder's Share Top Tier Of Pretzels
• Table 4-6: Marketer And Brand Shares Of Pretzel Sales, 1999 (Percent); 22 Marketers, 25 Brands
  The Top Five Marketers, Plus Private Label, Represent 88% Of Extruded Snack Sales
• Table 4-7: Marketer And Brand Shares Of Extruded Snacks, 1999 (Percent); 14 Marketers, 15 Brands
  Procter & Gamble Leads Frito-Lay In Other Snacks
• Table 4-8: Marketer And Brand Shares Of Other Salted Snacks, 1999 (Percent); 12 Marketers, 18 Brands

Industry Structure Determined By Shelf Life Of Product
Frito-Lay Only National Marketer Of Traditional Chips
Frito-Lay's Success
Borden's Failure
Regional Brands Bank On Regional Loyalties
All Marketers Strive To Keep The Category Hot
Consumers' Health Concerns
Pricing
Production Costs
Shelf Space
Limited Shelf Space Leads To Winnowing Of Brands
But Consumers Demand Variety
Focus On In-Store Promotions
Advantage Goes To National Brands
Shelf Space Fees
The Solution Is Effective Marketing

Sales Slip To $20 Billion
Markets Soft Drinks, Salty Snacks, And Fruit Juice
Pepsi-Cola Co.
Frito-Lay Co.
Tropicana Products
Strategic Redirection
Spins Off Restaurant Business
Acquires Tropicana
Spins Off Bottling Operations
Frito-Lay Accounts For Over Two-Thirds Of Pepsico Sales
Investigated For Anti-Competitive Practices
"The Power Of One"
Pepsico Puts Pressure On Retailers
Cracker Jack Acquisition
Expanding Overseas
Increasing Efficiency In Production And Distribution
National Advertising And Promotion
Sports-Related Promotional Activities
"Star Wars" Campaign
Power Of One Promotion
Introduction Of Wow! Products
Baked Lay's Also Plummets
Instead, Growth Comes From Core Product Line

Sales Approach $25 Billion
Operates Across The Food Chain
Operation Overdrive
Building A Portfolio Of Salty Snacks
Orville Redenbacher's Line Flat In 1999
Act II Continues Expansion Into Supermarkets
Act II Positioned As Value Line
Act II Exploits Tie Between Microwave Popcorn And TV

Sales Approach $7 Billion, Mainly In United States
Markets Cereals, Mixes, Snacks, And Yogurt
International Joint Ventures
Salty Snacks Are Popcorn, Snack Mixes, And Corn Snacks
Pop-Secret Number Two In Category
Chex Mix Relaunched

Markets Broad Line, Mainly In Middle Atlantic Region
Founder Is Company Spokesman
Active In Copromotions
Recent New Product Initiatives

Nabisco Sold To Philip Morris, Parent Of Kraft Foods
Nabisco Sales Total $8.3 Billion
Core Business Is Cookies And Crackers
. . . But Markets Wide Range Of Other Products
Had Been Part Of Rjr Nabisco
Streamlining Nabisco: Restructuring And Divesting
1996 Restructuring
1998 Restructuring
Acquisitions And Divestitures
The Total Brand Value Initiative
Rebuilding The Direct Sales Force
Increasing Advertising And Promotion
Recovering Market Share
Planters Brand Leads Snack Nut Market
Strong Sales Growth In Planters Line
Cheez Mania

Worldwide Operating Revenues Of $78.6 Billion
The Company That Marlboro Built
Four Business Segments
Purchase Of Nabisco, Inc.

Sales Reach $40 Billion, Mainly In North America And Europe
Markets A Wide Range Of Consumer Packaged Goods
Identity Based On Brand Power Rather Than Product Category
Still Trying To Rekindle The Magic
Cuts Jobs And Closes Plants
The 2005 Initiative
Improving Results Hampered By Weakness In Europe
Leading Marketer Of Potato Crisps
Plans To Relaunch Eagle Line

Primarily A Pretzel Marketer
Expanding Capability

Potato Chip Company
Business Centered Around Hanover
Strong Sales Growth In 1999 And First Quarter 2000

A Regional Player Owned By A Acquisition Giant
Sixth Place Salty Snack Marketer

New Flavor Trends
• Table 4-9: Selected New Product Introductions, New Flavors, 1998-2000 (Listing): 40 Marketers, 56 Brands
  Gourmet Snack Trends
• Table 4-10: Selected New Product Introductions, Gourmet, 1998-2000 (Listing): 16 Marketers, 23 Brands
  Natural And Organic Product Introductions
• Table 4-11: Selected New Product Introductions, Natural And Organic, 1998-2000 (Listing): 20 Marketers, 22 Brands
  Low Fat—With And Without Olestra
• Table 4-12: Selected New Product Introductions, Low Fat And Fat Free, 1998-2000 (Listing): 11 Marketers, 14 Brands
  Kits Turn Salty Snack Into Mini Meal
• Table 4-13: Selected New Product Introductions, Snack Kits, 1998-2000 (Listing): 5 Marketers, 6 Brands
  Product Introductions Based On Packaging
• Table 4-14: Selected New Product Introductions, Packaging, 1998-2000 (Listing): 5 Marketers, 6 Brands

Salty Snack Advertising At $220 Million In 1999
Top Ten Advertisers Accounted For 98% Of Spending
Frito-Lay Spends $92 Million
Procter & Gamble Was Second-Place Spender
Nabisco Supported Planters And Air Crisps With Nearly $28 Million
General Mills Divided $13 Million Between Chex Mix And Bugles
Campbell Soup Spent $11 Million On Pepperidge Farm Goldfish
Five Other Companies Spent More Than $1 Million

Frito-Lay Ads Fit Party Mood
For Kids, The Silliness Without The Sex
For Mothers, A Message Of Convenience
Whimsical, But Less Wild Approach Taken By Other Marketers
"Only Orville" Tagline Replaces Orville Redenbacher
Nabisco Takes Aim At Frito-Lay And Wise
Planters Conveys The Cheese Message With Mice
Sports Affects Media Choice But Seldom Appears In Commercials

National Marketers Use Sophisticated Consumer Promotions
Print Ads Link To Coupons, Contests, In-Store Displays
Video And Product Tie-Ins
Promotions Are Often Tied To Sports

Distribution Determined By Perishability Of Product
Salted Snacks Distributed By A Variety Of Methods
Warehouse Delivery
Direct Store Delivery
Company-Owned Routes
Single Truck Distributors
Master Distributors
Direct Store Delivery Prevails

A Wide Range Of Retail Outlets
Supermarkets Leading Outlet
Salted Snacks Important To Supermarkets
• Figure 5-1: Share Of U.S. Salted Snack Sales By Retail Outlet, 1999 (Percent): Supermarkets, Convenience Stores, Mass Merchandisers, Grocery Stores, Warehouse Clubs, Vending, Drugstores
  Supermarkets Market Salted Snacks More Aggressively
  Chips Merchandised With Beverages
  Recent Consolidation Among Food Retailers Is Changing The Food Industry
  Margins In Supermarkets Average About 30%
• Table 5-1: Supermarket Dollar Margins For Selected Salted Snack Categories, 1998 (Percent): Snack Nuts, Popped Popcorn, Pretzels, Potato Chips, Corn/Tortilla Chips
  Convenience Stores And Mass Merchandisers Vie For Second Place
  Convenience Stores Carry Many Grocery Items
  Mass Merchandisers Increasingly Like Supermarkets
  Wal-Mart Leads Trend
  Sales By Snack Category And Retail Outlet
• Table 5-2: Share Of U.S. Salted Snack Sales, By Outlet Type, By Category, 1998 (Percent): Supermarkets, Convenience Stores, Mass Merchandisers, Grocery Stores, Vending, Warehouse Clubs, Drugstores; Potato Chips, Tortilla/Corn Chips, Nuts, Popcorn, Pretzels, Extruded Snacks

Fat A Leading Dietary Issue
Dietary Fat Associated With Cardiovascular Disease
But The Culprit Is Saturated Fat
Fat Associated With Some Kinds Of Cancer
Some Fats Are Beneficial
Dietary Fat And The Obesity Epidemic
But The Real Problem May Be Sugar
Fatty Foods Synonymous With Indulgence
Consumers Budget Fat Intake
Concern Over Salt Fading
FMI Survey Tracks Consumers' Changing Dietary Concerns
• Table 6-1: Nature Of Consumers' Concern About Nutritional Content, January: 1996-2000

Notes On Simmons Market Research Bureau Data
Simmons Data Presented In This Report
Consistent Factors In Salty Snack Use
Nearly Everyone Uses Potato Chips
• Table 6-2: Household Use Of Potato Chips, By Degree Of Use In Last 30 Days, 1999 (Number And Percent): Light, Medium, Heavy
  But Those Buying For Families Dominate
• Table 6-3: Demographic Segmentation Of The Decision Makers In Households Using Potato Chips, 1999 (Percent And Index): Age, Marital Status, Children, Household Income, Education
  Married Shoppers A Majority Of All Heavy Users Of Potato Chips
• Table 6-4: Demographic Segmentation Of The Decision Makers In Households Exhibiting Heavy Use Of Potato Chips, 1999 (Percent And Index): Age, Marital Status, Children, Household Income, Education
  Favorite Potato Chip Flavor Is Plain
• Table 6-5: Household Use Of Potato Chips, By Flavor Used Most Often, 1999 (Number And Percent): Plain, Barbecue, Sour Cream And Onion, Cheese, No Salt, Cajun
  Frito-Lay Dominates Potato Chip Brand Preferences
• Table 6-6: Household Use Of Potato Chips, By Brand Used Most Often, 1999 (Number And Percent): Lay's, Ruffles, Pringles, Wise, Jay's, Keebler, Herr's
  Tortilla And Corn Chips And Snacks Widely Used, But Less So Than Potato Chips
• Table 6-7: Household Use Of Tortilla And Corn Chips And Snacks, By Degree Of Use In Last 30 Days, 1999 (Number And Percent): Light, Medium, Heavy
  Tortilla And Corn Snack Use Skews To Younger Shoppers
• Table 6-8: Demographic Segmentation Of The Decision Makers In Households Using Tortilla And Corn Chips And Snacks, 1999 (Percent And Index): Age, Marital Status, Children, Household Income, Education
  But Heavy Users Of Tortilla And Corn Chips And Snacks More Like Heavy Users Of Potato Chips
• Table 6-9: Demographic Segmentation Of Decision Makers In Households Exhibiting Heavy Use Of Tortilla And Corn Chips And Snacks (Percent And Index): Age, Marital Status, Children, Household Income, Education
  Favorite Brands Are Again Those Of Frito-Lay
• Table 6-10: Household Use Of Tortilla And Corn Chips And Snacks, By Brand Used Most Often, 1999 (Number And Percent): Doritos, Tostitos, Fritos, Planters, Wise, Charles, Laura Scudder
  Light Use Prevails In Nut Category
• Table 6-11: Household Use Of Nuts, By Degree Of Use In Last 30 Days, 1999 (Number And Percent): Light, Medium, Heavy
  Use Of Nuts Related To Age
• Table 6-12: Demographic Segmentation Of The Decision Makers In Households Using Nuts For Snacking And Cooking (Percent And Index): Age, Marital Status, Children, Household Income, Education
  Strong Skews Among Those Using Nuts Often
• Table 6-13: Demographic Segmentation Of Decision Makers In Households Exhibiting Heavy Use Of Nuts For Snacking And Cooking (Percent And Index): Age, Marital Status, Children, Household Income, Education
  Peanuts Are Favorite Type Of Nut
• Table 6-14: Types Of Nuts Used Most Often, 1999 (Percent And Index): 16 Types
  Planters Is Leading Brand
• Table 6-15: Household Use Of Nuts, By Brand Most Often Used, 1999 (Number And Percent): Planters, Blue Diamond, Diamond, Fisher, Mauna Loa, Azar, Other
  Popcorn Second Most Widely Used Salty Snack
• Table 6-16: Household Use Of Popcorn, By Degree Of Use, 1999 (Number And Percent): Light, Medium, Heavy
  Demographics Play Relatively Small Role In Popcorn Use
• Table 6-17: Demographic Segmentation Of The Decision Makers In Households Using Popcorn, 1999 (Percent And Index): Age, Marital Status, Children, Household Income, Education
  Heavy Users More Upscale
• Table 6-18: Demographic Segmentation Of Decision Makers In Households Exhibiting Heavy Use Of Popcorn, 1999 (Percent And Index): Age, Marital Status, Children, Household Income, Education
  Orville Redenbacher's Leading Popcorn Brand
• Table 6-19: Household Use Of Popcorn, By Brand Most Often Used, 1999 (Number And Percent): Orville Redenbacher's, Betty Crocker Pop Secret, Jolly Time, Jiffy Pop, Crunch'n Munch, Cracker Jack, Pops-Rite, Newman's Own, Pillsbury, Wise, Pop Deluxe, Smart Food, Cape Code, Planters Tv Time, Other Brands
  Pretzels Less Widely Used
• Table 6-20: Household Use Of Pretzels, By Degree Of Use, 1999 (Number And Percent): Light, Medium, Heavy
  Both Life Cycle And Income Correlate With Pretzel Use
• Table 6-21: Demographic Segmentation Of The Decision Makers In Households Using Pretzels, 1999 (Percent And Index): Age, Marital Status, Children, Household Income, Education
• Table 6-22: Demographic Segmentation Of Decision Makers In Households Exhibiting Heavy Use Of Pretzels, 1999 (Percent And Index): Age, Marital Status, Children, Household Income, Education
  Salted Pretzels Widely Preferred
• Table 6-23: Household Use Of Pretzels, By Flavor, 1999 (Number And Percent): Salted, Unsalted
  Frito-Lay's Rold Gold Dominates Category
• Table 6-24: Household Use Of Pretzels, By Brand Most Often Used, 1999 (Number And Percent): Salted, Unsalted

Appendix I: Advertisements. This appendix appears in bound editions only

Appendix II: Addresses Of Selected Marketers