SNAXPO 2010: Snack food is on a roll but under attack

March 05, 2010
After years of lackluster sales, potato chip sales jumped 22 percent and tortilla chips 18 percent since 2007, according to the market research firm Mintel International, which said the salty noshes defied the economic downturn.
"People bought more chips during the recession because they're a good value,"Mintel analyst Chris Haack said in a study of the 2009 industry. "As the economy gets stronger, we expect annual sales increases to slow, but we don't expect markets to contract."
That's welcome news for the machinery and packaging manufacturers, corn millers, potato growers, and crafters of flavorings and colorings who this week pressed into SNAXPO, the industry's annual gathering, which concluded Friday at the Fort Worth Convention Center.
But the $17.7 billion snacking industry is under attack.
Critics, citing rising child obesity and health risks from too much salt, have proposed a "fat tax"on snacks and soft drinks, while urging the banning of sweet and salty treats in the schools.
"You should be concerned,"Carlos Gutierrez, the chief executive of Kellogg's, who served as commerce secretary under President George W. Bush, warned the 1,460 people attending SNAXPO on Wednesday.
"One of Washington's favorite sports is to find a scapegoat,"he said. "Don't stay away from Washington. It's coming very, very fast."
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