Product Spotlight: The price of healthful snacking

The experience

Planters Nut-rition is available across all the nut product lines in 10-oz cans at $5.99. The package is blue with a photo of almonds, plus it has bright green (remember the Healthy Choice green?) swoops with the familiar Planters logo and Mr. Peanut in the center. Different cans say “good source of fiber,” “South Beach Diet” and “Heart-Healthy Mix.” A brown circle also notes they’re an excellent source of vitamin E. The type of nut is in the lower right hand corner and is almost lost with all the nutrition news.

Taste, aroma and size are critical to the perception of quality in nuts. When they opened the package of Nut-rition, most of our tasters could not tell the difference between Planters, Blue Diamond or private labels. While the manufacturer knows the quality level that goes into its can (and it can be impacted by the growing conditions and many other factors), the consumer may not be clear about this differentiation; although the Planters and Blue Diamond almonds were slightly larger than the private label nuts.

The almonds themselves taste like almonds … no different than before. So this becomes an educational strategy to grow the category. The new product here is the new message. After they read the package, our tasters said they didn’t realize nuts were so healthy and would consume more. However, the manufacturer had to point it out to them directly and specifically. These consumers explained there was just so much health information to stay up to date with today.

Does the product deliver?

Kraft is focused on growing the category through the naturally occurring health benefits of nuts. Planters stands for quality and product innovation. Using health as the focus of product innovation, this product does deliver the information to the consumer that nuts are healthy.

Nut-rition is sold in the same aisle as snacks and so allows the consumer to consider which is the healthier choice. The price at $5.99 is high in comparison to other snack options, at around half the price, and may not feed the same number of snackers as a big bag of chips, however.

How to make the idea bigger

This product is likely to grow the category. Planters previously looked at different ways to deliver flavor and nuts (even chocolate-coated for greater indulgence). The health message is strong and naturally occurring. However, the package could be a bit more convenient as a snack-serving device. As research continues, more of the function claims about almonds might keep people coming back to this elegant, simple food/snack.

Repeat purchasing with this product will be driven by the trade-off of the price–value proposition versus the health halo of the product. Value is a complex idea to measure: for some it will be about the healthfulness of the product (in this case a whole food), or the quantity of product and for some it is the flavor and texture experience.

Alternative products at lower prices surround Planters Nut-rition on all sides. The key is not the other nut competitors, but getting across to the consumer that this is a great healthful alternative to other snacks that are less healthful. When placed in that context, the $5.99 price tag is high when compared to chips. Planter’s has gotten its point across about healthy snacking. However, consumers will have to pay for it.

Rating: Planters Nut-rition delivers on its promises of health. This is an innovative way to focus consumers on their choice of snacking and its healthfulness. However, the value proposition is tilted toward the greater snack category that this product is competing against.

Market Potential: Probably. With Planters as market leader, this one is not going away too soon. However, the value makes it difficult to compete, especially in a global snack market.