Nature’s Bakery bucking slowdown in snack bars with healthier offering

While the COVID-19 tailwind that sent sales soaring for many food brands has long since worn off, Mars’ Nature’s Bakery bar has managed to rebuff this broader downturn. 

“Nature’s Bakery’s momentum sustained even as the category slowed,” Vilma Livas, the brand’s chief marketing officer, said in an interview. “We’ve been on this momentous growth trajectory, and I think a large part is that we’re helping to solve a real problem” for parents with children looking for a healthier snack.

Livas said while the bar category as a whole is posting flat to low single-digit increases in volume, Nature’s Bakery’s was closer to about 30% during the last year. It’s also attracting new consumers into the space. Each of Nature’s Bakery’s three categories — oatmeal crumble, fig bars and brownies — are growing double digits.

Nature’s Bakery continues to outpace the category attracting bar buyers at a faster rate than the competition.

“We’re absolutely expanding market share,” Livas said, noting the brand has nearly tripled it since she started in 2017. “There are benefits being sought that [the consumer] is not finding from other brands.”

 

Nature’s Bakery was introduced in 2011 with a lengthy list of attributes that are now especially trendy with consumers. The bars are dairy- and nut-free, certified Vegan, made without high fructose corn syrup and Non-GMO Project Verified.

Mars purchased Nature’s Bakery in 2020 as the Snickers and M&Ms manufacturer bulked up its portfolio of better-for-you food brands. Today, Nature’s Bakery is the fourth-largest snack bar brand and is available at an estimated 100,000 stores, including Target, Walmart and Costco.

Its signature fig bar, made in seven flavors including raspberry, blueberry, strawberry and peach apricot, is responsible for the lion’s share of the brand’s sales. In 2019, Nature’s Bakery debuted Oatmeal Crumble bars aimed at millennials who found it hard to squeeze in an at-home breakfast and wanted something convenient to grab running out the door.

It debuted its first Double Chocolate Brownie bar four years later, giving it a deeper foothold in the dessert and snack categories. The Brownie has exceeded initial projections, Livas said, prompting the company to debut a Salted Caramel item this year.

Nature’s Bakery now has a more encompassing portfolio with products that consumers can grab throughout the day, from Oatmeal Crumble in the morning, Fig during the day and Brownie at night. 

Double Chocolate and Salted Caramel Brownies have proven popular with younger consumers. Nature’s Bakery already has a dominant presence with families who have kids, so the ability to attract consumers who will soon have children of their own with Brownies is “a nice way to recruit long-term for the brand,” Livas said.

The popular bar is looking for spaces in the category that need to be met or are underpenetrated by other offerings. Livas said Nature’s Bakery wants to bring a new product to market that energizes busy consumers on the go.

“This is one space that we’ve been challenging ourselves to think about. What would be the Nature’s Bakery answer to that need?” she said.

In order to prepare for further growth, Nature’s Bakery announced in January it would spend $237 million on a Salt Lake City, Utah, baking facility capable of making close to 1 billion packs annually.

The snack brand hasn’t ruled out expanding into other categories eventually, Livas said, but for how it’s focusing its innovation.

“Our agenda is pretty full, and we don’t feel tapped out in bars,” she said. “I could see a future where we would exist in other parts of the store, but it does take quite a bit of resources, so we want to be very thoughtful about it and make sure that when we do it, make sure that when we do it, it’s informed by a clear consumer need.”