Niche Markets Boost Nutrition Bar Sales

Mar 27, 2002

Estimated annual sales for nutrition bars exceeded one billion dollars for the second year in a row, according to Nutrition Business Journal. The challenge most retailers face today is managing a category in which there are dozens of different products.

There is a nutrition bar for every consumer’s whim. Until recently, it was fairly easy to separate the category into five general subcategories: energy/ endurance, meal replacement/ snack, diet/ weight loss, functional/ nutritional and high-protein/ body building.

To increase sales, John Roulac, founder and president of Nutiva Inc., maker of organic nutrition bars, encourages retailers to spread nutrition bars around the store. “When our bars are next to the juice bar, they just fly off the shelf. If they were next to 48 other bars in the grocery section, people might not even see them,” he says.

Moderator Comment: With limited space and an explosion
of SKUs, how can retailers manage nutrition bars for sales effectiveness and
space/operational efficiency?

Are nutrition bars a largely planned or impulse purchase?
When does variety actually get in the way of growing the category? [George
Anderson – Moderator

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