US nutritional snacking The Simply Good Foods Co. is predicting further sector growth after returning positive first-quarter results.

The numbers, announced yesterday (9 January) showed a 6.8% year-on year rise in net sales for the 13 weeks to 25 November.

In a post-results call with analysts, Simply Goods Foods CEO Joseph Scalzo said there is still plenty of room to grow for its brands.

He said: “This growth underscores the strength and resilience of our core business and the powerful nutritious snacking macro tailwinds of convenience meal replacement and low-carb, low sugar, protein-rich nutrition.

“You may recall the nutritious snacking category is still relatively under penetrated in about 50% of US households.”

Scalzo also pointed to success in moving its marketing away from products linked to weight loss – utilising its Atkins brand – to products seen as generally healthier.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“We generated US point-of-sale growth of 5.5% as a result of continued growth in our core US nutritional snacking business and strategic marketing efforts to target a broader consumer audience,” he said.

“In 2016, we identified a large group of low-carb lifestyle consumers already buying our brand as a nutritious snack. We began targeting this group during 2016 and ’17 resulting in strong total buyer growth during the past two years.

“Our strategic initiative reflects this opportunity and we remain intently focused on the execution against these initiatives including improved efficacy, education and activation of our core programme users, targeting a new group of self-directed, low-carbers who represent a four-times opportunity in terms of size when compared to our core programme users, driving product innovation and portfolio expansion and pursuing white space opportunities.”

Simply Good Foods said it had upped its marketing spend during the quarter by 7% and revealed Hollywood star Rob Lowe is its new brand spokesperson “having authentically lived in Atkins’ low carb lifestyle for decades”. 

Scalzo said: “Rob is the epitome of the Atkins lifestyle consumer.”