Potato Chips as a Profit Driver

According to the NACS State of the Industry (SOI) Report of 2021 Data, the salty snacks category increased 11.3% over 2020, with in-store sales averaging USD7,913 per store, per month. This expansion is expected to continue till 2022.
According to CSX monthly data, the first three quarters of 2022 showed significantly faster growth for salty snacks than the first three quarters of 2021. During that time, the category grew by double digits, outpacing the numbers for 2019, 2020, and 2021.
Salty snacks accounted for 4.36% of interior sales in convenience stores in 2021, and while this may seem like a minor contribution, the category’s gross margins were enormous. C-store salty snacks had average gross margins of 40.83% in 2021, up 0.93% year on year (y-o-y). In 2021, gross profit increased 13.9% over 2020, averaging USD3,231 per store, per month, while gross margin contribution increased 0.26% y-o-y to 5.19%.
According to NACS SOI data for 2021, the potato chips subcategory accounted for 38.5% of category sales. Year on year, the subcategory boosted sales by 8.1% and gross earnings by 11.1%.
“Potato chips are a staple for convenience stores and a profit driver. We’re seeing a ton of innovation in this subcategory, including spicy, limited-edition flavors and international flavors,” Jayme Gough, NACS research manager, mentioned, cited by Convenience.org website.
She also mentioned strategic alliances that are forming in the salty snacks category as a whole, particularly in the potato chips subcategory. Following a successful partnership on a Wendy’s Baconator-flavored Pringles chip in 2020, Kellogg’s collaborated with Wendy’s on a co-branded Pringles chip flavor named Wendy’s Spicy Chicken in 2021.















