Convenient and safe packages have replaced the large bins of days past.

Originally printed in the February 2024 issue of Produce Business.

Nuts have steadily increased in popularity in recent years, as consumers young and old look for nutritious snack foods.

Over the course of this century, annual tree nut consumption has more than doubled, from 2.58 pounds per person to 5.56 pounds per person, according to U.S. Department of Agriculture (USDA) statistics. We eat an average 2.2 pounds of almonds, walnuts and pistachios, as the big three enjoy steadily increasing sales.

There are also seasonal nut varieties that rise in popularity over the holiday season.

“During the holidays, pecans, glazed pecans, walnuts, glazed walnuts and pine nuts are popular,” says Karim Wahhab, produce manager for Draeger’s Market in Los Altos, CA. “Cashews are also one of the more popular nuts.”

According to Mordor Intelligence, cashews should increase at a combined annual growth rate of 5% over the rest of this decade.

PACKAGED NUTS

While traditional nut varieties lead the category, the traditional large bins of bulk walnuts and almonds have largely been abandoned, as consumers prefer the safety of packaged nuts.

“Everything changed after COVID,” says Wahhab. “People want the packaged nuts. We don’t have bins anymore.”

Draeger’s is a small independent chain with three stores serving the San Francisco Bay area’s upscale neighborhoods.

Suppliers and retailers responded to packaged nuts that offer greater food safety. Many of the more popular nut packages are mixes that include a variety of nuts and even dried fruits.

“Packaged nuts are best near produce. This section tends to be serviced better and rotated better if it is near the produce department with the fresh fruits and vegetables.”

— Tom Bergin, Bergin Fruit and Nut Co., St. Paul, MN

“We’re seeing a dedicated section of nuts, dried fruits like cranberries and mangos, grains, seeds and chocolate,” says Tom Bergin, chief operating officer of Bergin Fruit and Nut Co., St. Paul, MN. “It is best near produce. This section tends to be serviced better and rotated better if it is near the produce department with the fresh fruits and vegetables.”

Bergin Fruit and Nut offers a variety of nuts, dried fruit, seeds, confectionary and mixed products.
A related subcategory, packaged nut bar snacks, has also seen an increase, and South 40 Snacks, Seattle, WA, now offers nine flavors.

“We have nine nut bar flavors,” says Jonas Hanna, co-founder of South 40 Snacks. “Cashews, pistachios, almonds and pecans are most popular.”

NEW FLAVORS

New flavors of traditional nuts are also gaining in popularity.

“In 2023, we expanded our product line with two new flavors: In-Shell Seasoned Salt and No Shells Sea Salt & Pepper. Seasoned Salt is our newest in-shell flavor in over 10 years, and in consumer taste tests, it performed incredibly high on both appeal and purchase intent among nut buyers,” says Diana Salsa, vice president of marketing at Wonderful Pistachios, Los Angeles, CA, the largest pistachio grower-shipper in the country.

“At IFPA this past year, we also provided attendees with a sneak peek of our upcoming No Shells flavor, Jalapeño Lime, which will hit shelves in February 2024. We look forward to sharing more information about No Shells Jalapeño Lime very soon,” she says.

“We find that our variety of flavors provides something for everyone, regardless of where they may live.”
Even in packages, nuts attract more repeat customers if they are fresh. “Quality and freshness are most important,” says Draeger’s Wahhab.

MERCHANDISING

The bins have been replaced by displays, in or near produce, of various packaged nuts and related snack products. Displays draw attention and are easiest to monitor for freshness.

“Merchandising is extremely important to Wonderful Pistachios, and we invest heavily in our in-store point-of-sale displays, which are distributed nationwide,” says Salsa. “We have an in-house merchandising team whose primary goal is to help stores build larger-than-life displays. In fact, retailers that utilize our POS displays see up to two times higher sales velocities on average.”

Salsa says Wonderful’s football point-of-sale (POS) includes eye-catching bins and displays, which help drive impulse sales at the point of purchase.

“Many of our merchandisers capitalize on the bright bags of Wonderful Pistachios No Shells by displaying bags in a color-blocking pattern,” says Salsa.

Many of the more popular new snack products are mixes, with numerous nut varieties, and sometimes also with dried fruits.

“We’re seeing all ages — young people and people who bake,” says Bergin. “They are sold in 8-ounce or 1-pound packages, or in bulk so you can measure the amount you need for baking.”

Salsa emphasizes nuts have many cross-merchandising opportunities, too. “As the primary usage is snacking, a great pairing can be fresh and dried fruits, which is one of the reasons you can often find Wonderful Pistachios in or near the produce section. In addition, Wonderful Pistachios are the perfect final touch when making a picture-worthy charcuterie board.”

PACKAGING

The next innovation in packaged nuts could be in the material used for the packaging. Currently, clear plastic is used, which allows a view of the nuts, but many younger consumers might prefer recyclable or compostable materials for environmental reasons.

“There’s a lot of work being done on recyclable and compostable packaging,” says South 40’s Hanna. “I’m looking forward to the day when recyclable and compostable packaging become more affordable.”