Dive Brief:

• The Grocery Manufacturers Association (GMA) is honoring Skippy P.B. Bites and Nando’s Peri-Peri sauce with their 2017 CPG Awards for Innovation and Creativity, according to Food Business News. The winners are selected by the GMA advisory council, which considers the creativity, willingness for a brand to take risks and the impact their decision making has on the industry.
• Skippy, a Hormel Foods brand, created P.B. Bites in 2015 while trying to develop a peanut butter product that wouldn’t require a jar. Sales of the two initial varieties, pretzel and double peanut butter, exceeded Hormel’s sales expectations.
• Peri-Peri sauce is the signature marinade and dressing for Nando’s Chickenland Ltd, which operates about 1,000 restaurants internationally. While popular in more than two dozen countries, Nando’s Peri-Peri is expanding its reach in the United States.

Dive Insight:

Hormel Foods, which has owned Skippy since 2013, is looking for ways to drive sales for the company in the future. Convenient snack foods are one of its three growth strategies, with a focus on on-the-go options. When it comes to Skippy, the company was trying to look for something different that would better position the product to woo these increasingly valuable consumers. Their solution for portable peanut butter snacking was P.B. Bites.

The global peanut butter market is projected to reach $4 billion by 2021, so there is plenty of reason to celebrate Skippy’s snacking success. Consumers want more peanut butter options, and now they can enjoy them anytime, anywhere.

This latest innovation by Skippy helps move the legacy brand forward by modifying the product to fit a consumer’s changing needs. Portability is one of the major rising trends in the world of snacking. Skippy has taken a product that could have fallen out of favor with some shoppers, and found a way to keep it relevant to busy people who still crave peanut butter. 

The other GMA winner, Nando’s Peri-Peri sauce, is innovative in its own right. While the brand is widely known internationally, it is not yet a household name in many U.S. markets. Despite this challenge, Nando’s has found a way to carve out its own space in the competitive market.

Globally, sales of sauces and condiments saw a 2% uptick in growth in 2016, reaching $24 billion in sales. Top trends moving forward include exotic flavor profiles and gluten free options, which have likely helped Nando’s Peri-Peri sauces succeed. The Portuguese flavor profile in the sauces brings a unique taste, while also boasting no artificial colors, flavors or preservatives. It’s also gluten free, Kosher, Halal and vegetarian friendly.

While large food manufacturers struggle as consumers shun packaged foods in favor of fresher, more nutritious items, Nando's is positioned to capitalize on the public's desire to eat better without losing the flavor and taste they covet. The sauces are an ingenious way to make a name for itself, but it won't be easy in a market for big players are fighting to expand their presence in the space. Earlier this year, McCormick spent $4.2 billion for Reckitt Benckiser's Food Division, adding the iconic French's mustard and Frank's RedHot brands to a portfolio comprised of its line of spices, seasoning mixes and condiments.